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The 2011 State of the Nation Address Technical Report INTRODUCTION Tuwid na Daan or the Straight Path is a phrase

repeatedly mentioned by President B enigno S. Aquino III to pertain to his governance direction for the country. Essential to this concept of Tuwid na Daan is the battle cry Kung Walang Corrupt, W alang Mahirap. The administration believes that corruption is the root cause of the cou ntry s woes, and eliminating corruption will necessarily lead to renewed investor confidence, eventual growth and development, poverty reduction, and attainment of peace. The straight path, however, does not only pertain to the President s anti-corrupti on campaign. It also encompasses a way of doing things right, where the process is participatory ; the programs are holistic; growth is sustained; the peace policy is comprehensive; and develo pment is sustainable. Through the living examples of our leaders, led by the President, t his re-awakened sense of right and wrong continues to be translated to economic value. It is in this light that the accomplishments of the Aquino Administration, since the first State of the Nation Address (SONA) in July 2010, are being highlighted: A. GOOD GOVERNANCE AND ANTI-CORRUPTION Taking the initial step in the achievement of .Kung Walang Corrupt, Walang Mahir ap., where eradicating corruption is seen as the key approach to development, President Aqu ino laid the foundations for a clean, transparent, and responsive government. Key reforms con tinue to be instituted to reduce red tape, enforce anti-corruption and anti-red tape laws, a nd penalize those who violate these laws. The government is also fixing the incentive structures t o recognize merit and reward good performance with the aim of ensuring the sustainability of the A quino reform agenda. These and other initiatives are presented below: 1. Institutionalizing Public Accountability 1.1. Reforming the budgeting and project identification processes 1.1.1. Government s prudent expenditure management was a result of the use of the Zero-Based Budgeting (ZBB) approach in 2010. The ZBB enables the government to identify and terminate programs that are no longer delivering intended outcomes. The savings generated from these terminated programs were channelled to programs that are performing well and to other priority programs to address critical gaps in education and health. As part of the ZBB ap proach, the Department of Budget and Management (DBM) is also gradually transferring Special Purpose Funds back to the departments for greater accountability and making the Priority Development Assistance Fund (PDAF) more transparent.

Due to the prudent management of public funds, the government has been able to p rovide P12 billion in funding for other key social and economic services that were not incl uded in the 2011 General Appropriations Act, including: . P850 million o poor rural communities in . P4.2 billion . P423 million elp strengthen the for the salaries of 10,000 registered nurses hired and deployed t the country; to build 20,000 houses for the military and the police; and for the acquisition of the US Hamilton-class cutter, which will h perimeter security within the Malampaya area

1.1.2. In an effort to address issues about the quality of road projects, the Ro ad Board strengthened the identification and selection of projects funded by the Motor Ve hicle User s Charge through the proper use of the Highway Development Management version 4 (H DM-4), a planning tool that prioritizes or selects projects based on actual needs and eco nomic considerations. The Road Board also implemented standard unit costs nationwide that is 30% lower than previous cost estimates; and clearly defined the design and specification of its projects to make these conform to international standards, where previously, Programs of Work wer e not required. 1.1.3. The President directed the DBM to establish a comprehensive database of g overnment manpower through an enhanced Government Manpower Information System (GMIS). The GMIS shall provide a complete and accurate database of all positions, incumbents , and authorized compensation in the Executive, Legislative, and Judicial Branches of the government, including Government-Owned or Controlled Corporations (GOCCs), Government Financ ial Institutions (GFIs), and Constitutional Offices. The GMIS shall also be linked w ith the personnel information systems of concerned agencies such as the Civil Service Commission ( CSC) and the Government Service Insurance System (GSIS). 1.1.4. To eliminate wasteful spending and fund conversion in the military, the D BM changed its previous policy of releasing Personnel Services (PS) allotments in full to agenc ies. Now, releases of PS are done for filled positions only. This means that no amount is released to the agencies on top of their actual PS requirement. 1.1.5. Moreover, the DBM launched on 20 July 2011 the Electronic Transparency an d Accountability in Lump-sum Fund System (eTAILS). The eTAILS is a management info rmation system that digitizes the processing of lump-sum funds and supports the timely d isclosure of lump sum fund release information on the DBM website. This helps the government keep track

of information on the release, while enabling the public to scrutinize how their money is being allocated. 1.2. Upholding transparent and competitive bidding Allegations of collusion in the bidding of public works projects are being addre ssed through transparency reforms and strict adherence to public bidding rules. The DPWH now posts all projects on its website. The DPWH has also simplified bidding procedures by redu cing the

required 20 documents to just five (5) documents. It has also adopted a new cost structure for determining the approved budget cost (ABC), which minimizes leakage by reducing the allocation for indirect costs by as much as 8%. To cite an example, the DPWH was able to bid out the 7.53-km Plaridel By-pass Road Contract Package No. 2 in Bulacan for only P543 million in 2010, at one-third of the cost of the slightly longer 7.93-km Contract Packag e No. 1 that was bid out in July 2008. While the two projects are of the same road specifications , the cost of Contract Package No. 1 was 8.5% above the approved agency estimate while Contrac t Package No. 2 cost 23% lower than the agency estimate, saving a total of P163.2 million. As a result of these reforms, the DPWH generated savings of P2.51 billion in tax payers money from the 3,692 projects (civil works, goods, and consultancy services) from July 2010 to June 2011. The DPWH expects total savings of roughly P6 to P7 billion by the end of t his year as a result of transparent and competitive bidding. The savings can then be utilized for other priority development projects. The P2.51 billion savings generated by the DPWH includes the P1.07 billion saved from the review and bidding of contracts under the Post-Ondoy and Pepeng Short-Term Infra structure Rehabilitation Project (POPSTIRP). On 26 May 2010, the DPWH was granted a loan by the JICA worth P5.05 billion for 79 contract packages under the POPSTIRP. Of these contracts, 19 were cancelled due to lapses in the process. The 19 contracts were approved and signed even prior to the release of the Special Allotment Release Order (SARO) for the project, which is against government proc urement laws. Likewise, the government has conducted open and competitive bidding for the rein surance needs of the National Power Corporation (NPC), the Power Sector Assets and Liabilities Management Corporation (PSALM), the National Grid Corporation of the Philippines (NGCP), an d the Metro Rail Transit Corporation (MRTC). This generated savings amounting to over US$8 m illion or about P370 million from the lower bids of the winning re-insurers compared to th e approved budget for the contract and last year s premium. Moreover, the insured agencies ge t improved coverage by having lower deductibles that allow them to claim for losses or dama ges at lower participation limits. 1.3. Ensuring transparency and accountability in local governance 1.3.1. The DILG s full disclosure policy, issued in August 2010, required all Loca l Government Units (LGUs) to be transparent to the public by posting in local bulletin boards , newspapers, and

websites information on the utilization of government funds and the implementati on of projects. As of 31 May 2011, a total of 1,473 LGUs (68 provinces, 119 cities and 1,286 mun icipalities) or 86% of the 1,714 LGUs nationwide have fully complied with this policy. For purpo ses of transparency, the DBM also posted the annual internal revenue allotment (IRA) fr om 2006 to 2010 per region from the provincial down to the barangay level on its website.

1.3.2. The DILG also awarded the LGU Performance Challenge Fund (PCF) to LGUs th at have earned the Seal of Good Housekeeping. These LGUs have exhibited strong performan ce along the four (4) core governance areas, as follows: . Sound fiscal management, i.e., growth in local revenues over three (3) years, and no adverse report from the Commission on Audit (COA); . Transparency and accountability, i.e., strict adherence to the full disclosure policy, transparent procurement process, compliance with Anti-Red Tape Law, and function ing local special bodies; and . Valuing of performance monitoring, i.e., use of performance monitoring tools a nd regular reports to the public. . Good planning, i.e., having a comprehensive development plan and an ExecutiveLegislative Agenda; In 2010, 30 or 4.85% of the 619 4th to 6th class municipalities successfully obt ained the Seal of Good Housekeeping. Beginning 2011, the coverage of the PCF was expanded to all provinces, cities an d municipalities. Assessment is now ongoing and is focused on the COA audit opinio n for CY 2010 and the posting of local budget and finances, bids, and public offerings. A s of 17 June 2011, 13 or 46.43% of the 28 4th to 5th class cities and 218 or 35.22% of the 61 9 4th to 6th class municipalities subjected to assessment may now be conferred with the Seal and ha ve the chance to get the PCF. 1.4. Providing quality service lanes to fast-track the provision of frontline se rvices 1.4.1. In 2010, the Citizen s Charter of the PNP was recognized by the CSC as one of the fully compliant government agencies implementing RA 9485 or the Anti-Red Tape Act (ART A) of 2007.[1] Also, the DILG Project Comprehensive Response to Eliminate (CURE) Red Tape in th e LGUs is successfully being implemented at the local level wherein 94% or 1,613 LGUs (con sisting of 75 provinces, 121 cities, and 1,417 municipalities) of the 1,714 LGUs nationwide ha ve their respective citizen s charters, public assistance or complaint desks, one-stop shop s and/or courtesy lanes, thus improving the efficiency and effectiveness of LGUs in the d elivery of basic goods and services. 1.4.2. The Department of Trade and Industry (DTI) also improved its mechanisms f or redress. From 2010 until the first quarter of 2011, 91,828 consumer complaints were recei ved by its

Consumer Welfare Desk, 90,577 or 98.7% of which were resolved.[2] 2. Addressing Graft and Corruption 2.1. Addressing allegations of corruption in the military and implementing refor ms in the AFP.

2.1.1. In order to ensure transparency in the use of funds, apart from regular a udits, the AFP has conducted five (5) unprogrammed or special audits on cash examinations and retir ing special disbursing officers. Three (3) of these are on-going, one (1) report is being dr afted, and one (1) completed. The AFP-Office of Ethical Standard and Public Accountability (OESPA) noted 100% compliance with accountability measures, such as the filing of SALNs.[3] In comp liance with the rules and regulations to minimize discretion on government deposits, particu larly in line with the provisions of Executive Order (EO) No. 338, the AFP transferred a total of P 159 million of the residual UN Reimbursement Fund (UNRF) to the Bureau of Treasury (BTr) on 28 February 2011. To date, the total UNRF amount deposited with the BTr is P426 million. Mor eover, all reimbursements from the UN are now directly being deposited to the BTr by the DF A. 2.1.2. From July 2010 to June 2011, the AFP filed cases before the Sandiganbayan against 31 AFP officers for corruption-related charges while the cases of 21 AFP officers a re with the Office of the Ombudsman. 2.1.3. The government also pursued the cleansing[4] of the AFP Retired and Veter ans Pension Lists, which resulted in fund recoveries amounting to P4.685 billion. This amoun t was used to pay government s current pension obligations and arrears to the veterans and pensi oners. Moreover, through the anti-fixer campaign, three (3) Philippine Veterans Affairs Office (PVAO) employees have been dismissed, 27 cases have been filed, and three (3) cases res olved. 2.1.4. On 14 June 2011, the Office of the Deputy Executive Secretary for Legal A ffairs (ODESLA) formally charged Ombudsman Special Prosecutor Wendell Sulit with acts a nd/or omissions constituting graft and corruption and betrayal of public trust. The ca se involves her entering into a Plea Bargaining Agreement with Maj. Gen. Carlos Garcia, wherein Gen. Garcia was allowed to plea to the lesser offense of indirect bribery and facilitating m oney laundering. The Ombudsman also ordered Gen. Garcia to restore to the government the amount o f P135 million despite being accused of plundering P350 million. Special Prosecutor Sulit was placed under preventive suspension for 90 days. The Office of the President will form a panel that will conduct the formal investigation on the ca se. 2.2. Addressing abuses and irregularities in government agencies 2.2.1. Arrested the abuses and funds misuse in the Autonomous Region in Muslim M indanao (ARMM). An Audit of the ARMM Office of the Regional Governor covering the period January

2008 to September 2009 revealed that the funds received by the ORG for its opera tions were not properly utilized and managed and that transactions amounting to P1.003 billion could not be considered as valid and legitimate. Also, a total of P866.51 million in cash adv ances, or 80% of total disbursements made by the ORG, were released to the disbursing officers, i n violation of the general rule that payments must be made by check. As a result of these findings, the current ORG stopped the payment order against all checks drawable against the bank accounts of the ARMM Regional Government, terminated a ll

contractual and co-terminus employees hired by the previous Regional Governor, c onducted inventory reports on personnel and assets, and posted bids and awards and the AR MM budget on the ARMM website. Likewise, the DILG recommended the filing of administrative charges against some ARMM officials and personnel for dishonesty, abuse of authority, gross misconduct, an d conduct prejudicial to the best interest of the service. The DILG also recommended the f iling of criminal cases because of the abuse of regional government resources. An audit of the Province of Maguindanao had similar findings: that financial tra nsactions amounting to P865.88 million were considered to be fictitious, as these were eit her denied by suppliers or supported with spurious documents. Meanwhile, the DPWH-ARMM failed to properly utilize, manage, and record public f unds amounting to P1.12 billion. Moreover, the COA found that the utilization of fund s and implementation of programs and projects by the ARMM Social Fund Project Project Monitoring Office (ASFP-PMO) fell short of the desired improvements as the purpo se intended was not maximized and the implementation was found deficient. A DILG-proposed roadmap aims to bring ARMM to the sustainable path of good gover nance. This entails the strengthening of bureaucratic reforms, sustained transparency a nd performance, improved ORG oversight and assistance to LGUs, stricter COA and Civil Service Co mmission (CSC) oversight on ARMM and LGU implementation of development projects, stepped up peace and order initiatives, and reforms in the electoral process. The postponement of the August 2011 ARMM elections (as mandated by RA 10153) wil l provide an opportunity for ARMM to pursue this roadmap. 2.2.2. Suspended Local Water Utilities Administration (LWUA) officials. The Offi ce of the Ombudsman found the LWUA Chairman and two other officers of the LWUA guilty of G rave Misconduct and of violating Republic Act (RA) No. 6713 (Code of Conduct and Ethi cal Standards for Public Officials and Employees) for the alleged unlawful investmen t of LWUA funds in the amount of P780 million in Express Savings Bank, Inc. (EXSBI),[5] wi thout securing prior approval of the Monetary Board. On 4 July 2011, the Ombudsman ordered the dismissal of the LWUA Chairman and the two LWUA officers. Administrative complaints were also lodged with the Office of the President agai nst five members of the LWUA Board of Trustees, including the Chairman, for grave miscond uct arising from the acquisition of shares of stock of EXSBI. The Office of the President pl aced the members of the Board of Trustees on preventive suspension for 90 days.

2.2.3. Rationalized GOCC bonuses. Early in the term of President Aquino, the adm inistration discovered that officers and board members of several GOCCs enjoyed questionable bonuses and allowances. For example, a COA report disclosed that Metropolitan Waterworks and Sewerage System (MWSS) employees received more than P150 million in improperly authorized allowances and bonuses in 2009. Also, the current Board of the PNCC has reviewed actions by

the previous members of the Board who allegedly benefited from undue privileges and bonuses during their tenure. The current PNCC Board has also reduced manpower, terminate d unnecessary positions, and rationalized administrative and support services. The se cost-saving measures and reforms have resulted in the reduction of monthly expenses from abo ut P22 million to P11 million. The President thus ordered a comprehensive review culminating in the signing of the GOCC Governance Act of 2011. The Act strengthens government s oversight of GOCCs throug h the creation of a Governance Commission for GOCCs. As a result of the Department of Finance s (DOF) better oversight, GOCCs remitted a total of P34.47 billion to the national government, inclusive of P27.29 billion in divide nds, as of May 2011. This is one of the highest remittances made by GOCCs to date. In contrast, GOCC remittances in 2010 amounted to 26.99 billion. 2.2.4. Reforming the National Food Authority (NFA). The Food Staples Self-Suffic iency (FSS) Program and NFA Roadmap were formulated to attain self-sufficiency in the countr y s staple and to implement fundamental reforms in NFA Operations. NFA s role is focused at m aintaining buffer stocks of rice (30 days) and providing price support to small farmers. St ocks for buffer stocking are accumulated by increasing domestic procurement while reducing the v olume of importation by encouraging the private sector to participate more on importation . NFA s policy of .buy high-store long-sell low. has shifted to a policy where NFA selling pric es of rice are gradually increased to approach market levels with social welfare agencies handl ing subsidized rice if needed but buying stocks from NFA at market prices. A system audit was conducted with the help of the private sector in order to eva luate the previous administration s unusually large NFA rice importations and evaluate the a gency s legacy problems, with the end in view of not only ferreting out the truth but to recommend prescriptive measures to rehabilitate and strengthen the NFA. 2.3. Investigation of Disadvantageous Projects and Contracts 2.3.1. Addressed PCSO s exorbitant spending for advertisements. The Philippine Cha rity Sweepstakes Office (PCSO) overspent its advertising budget by more than P2.14 bi llion from 2004 to 2010.[6] To conceal the expenses, parts of the amounts were debited to d ifferent accounts. Despite COA s repeated recommendations to cut PCSO s advertising expenses, the former PCSO Board still authorized more advertising expenses during the campaign period. The PCSO also sponsored concerts and produced a full length movie. These were done d espite

having unrecorded payables to TV, radio, and other media companies in the amount of P740 million. As a result of these anomalies, the current PCSO Board stopped the production of the television dramas, which saved P110 million; and, reduced its 2011 advertisi ng budget by 40.8% from P928.3 million to P549.02 million. The current PCSO board was also ab le to obtain a 25% discount on all outstanding and valid advertising contracts. The savings f rom these reductions can now be rechanneled to more meaningful charitable projects.

The PCSO also spent an estimated P325 million for its intelligence funds from 20 08 to 2010. The intelligence funds were allegedly used to pay for anti-jueteng operations, b lood money, and for other discretionary uses. This practice has been discontinued by the present Board. 2.3.2. Cancellation of the Laguna Lake Rehabilitation Project. On 17 June 2011, the President cancelled the P18.5 billion Laguna Lake Rehabilitation Project (LLRP) due to inc onsistencies between the project components and its intended objectives; and the lack of tran sparency in the review and approval of the project. A DENR study found out that due to heavy def orestation and erosion, the areas to be dredged would end up being silted again in three (3) ye ars without massive rehabilitation of the watersheds. The DENR further noted that the approv al of the supply contract was done without any thorough review. In addition, the Project s Economic Internal Rate of Return (EIRR) of 7.04%, which considers only the project s quantified econ omic benefits, does not meet the 15% minimum hurdle rate or the minimum acceptable ra te of return. In the end, despite the laudable objectives, the questionable project components of the LLRP justified its cancellation. 2.3.3. Reviewed the anomalous procurement of second-hand helicopters for the PNP Special Action Force. In 2009, the PNP procured three (3) Light Police Operational Helic opters (LPOH) for P104.99 million on the assumption that these were brand new. However, in 201 1, the PNP Directorate for Logistics discovered that two (2) helicopters supplied by the Ma nila Aerospace Products Trading Corporation (MAPTRA) were previously owned by Asian Spirit, whi ch leased the same to Lion Air, Inc. The PNP further discovered that two (2) helicopters, which were supposedly brand new, were used for five (5) years prior with flying times of 53 6.3 hours and 489.9 hours, respectively.[7] The PNP Procurement Office also failed to recognize that MAPTRA was not an eligi ble supplier because it was just a newly-registered corporation at the time it transacted wit h the PNP. Thus, it had no record yet of completing a single contract similar to the contract to bid and of good standing as a supplier, which are requirements set by the law.[8] There was also an absence of authorized observers during the entire procurement process.[9] Lastly, the membe rs of the inspection and acceptance committee (IAC) failed to exercise their duties with d iligence as they did not possess the technical qualifications to perform the duty of the IAC that resulted in the acceptance of inferior goods.

2.4. Increasing Civil Society Participation in Governance 2.4.1. Implemented participatory budgeting. Six (6) national government agencies and three (3) GOCCs have piloted participatory budgeting with civil society organizations (CSO s), namely: the Department of Agriculture (DA); the Department of Agrarian Reform (DAR); the Department of Education (DepEd); the Department of Social Welfare and Developmen t (DSWD); the Department of Health (DOH); the DPWH; the National Housing Authority (NHA); the NFA; and the National Home Mortgage Finance Corporation (NHMFC). Participato ry budgeting helps increase governance transparency by engaging CSOs in the determi nation of the expenditure priorities of government.

The DPWH conducted its first CSO budget consultation for FY 2012 on 28 April 201 1. CSO participation included the review, assessment, and evaluation of DPWH projects p rogrammed for 2012. A Budget Partnership Agreement (BPA) was signed between the DPWH and .Bant ay Lansangan. (Roadwatch) on 15 March 2011 to ensure a continuous budget consultati on process with the private sector. As of May 2011, at least 46 CSOs had been accredited as partners of the DPWH, while 52 others had pending accreditations prior to their submission and c ompletion of the required documents. 2.4.2. Forging an integrity pact between government and the private sector. A pr ivate sector initiative to forge a pact of integrity between the government and the private s ector is rapidly gaining momentum. As of June 2011, ten (10) agencies have signed on to the Integ rity Initiative, namely: DTI, DBM, DepEd, DOF, DOLE, DND, DPWH, DOT, DOE, and DOTC as well as 550 private companies. The Integrity Initiative aims to reduce corruption in the pub lic and private sectors through the voluntary enforcement of good governance norms based on a mu tually agreed code of conduct. Agencies will soon ask suppliers and bidders to sign on to their agency integrity pacts. On 22 February 2011, the DepEd forged an integrity pact with more than 80 of its suppliers and civil society partners to promote ethical, clean, and transparent business trans actions, particularly with regard to the procurement of basic education goods and services. 2.4.3. Entered into a Memorandum of Agreement (MOA) with civil society groups an d nongovernment organizations (NGOs) on the Conditional Cash Transfer (CCT) Program. As of 22 July 2011, 222 national and local non-government organizations (NGOs) and civil society organizations (CSOs) signed a MOA with the DSWD to empower their active particip ation in the implementation of the CCT Program to ensure good governance and transparency. 2.4.4. Invited CSO participation in monitoring infrastructure projects. The DPWH has also entered into a Memorandum of Understanding (MOU) with a broad coalition of CSOs, NGOs, church organizations, and the academe for the purpose of monitoring the implemen tation of DPWH projects. 3. Professional, Motivated, and Energized Bureaucracy and Armed Forces The government is committed to support the combat readiness and effectiveness of the Armed Forces; recruitment and retention of quality personnel; and upliftment of soldie r morale and family wellness. From July 2010 to June 2011, a total of P21.37 million was used to repair and ma intain various AFP housing units; P39.60 million was also released for the housing assistance o f AFP battle

casualties; another P15.19 million has been released to support AFP battle casua lties; and a total of 4,535 dependents of killed in action/wounded in action were awarded education al assistance. 3.1. The President committed to provide at least 20,000 housing units for the AF P and PNP in 2011. In this light, Administrative Order (AO) No. 9 Directing the National Housi ng Authority to Formulate, Implement and Manage a Housing Program for the Military and Police

Personnel was issued on 11 April 2011, which authorized the NHA to adopt the Comm unity Initiative Approach Program (CIAP) to implement the housing program. Under the NHA s Socialized Housing Program, a soldier with a rank of Private, rece iving a P400 monthly quarters allowance, will now be able to acquire a housing unit in a ny of the twelve (12) housing project sites in Brgys. (1) Buena Vista and (2) Biclatan in Gen. Tr ias, Cavite; (3) Brgy. Conchu, Trece Martires, Cavite; (4) Brgy. Timbao, Bian City, Laguna; and Br gys. (5) Looc and (6) Kay-Anlog in Calamba City, Laguna; (7) Brgy. Gaya-Gaya, San Jose De l Monte City, Bulacan; (8) Brgy. San Mateo, Norzagaray, Bulacan; and Brgys. (9) Batia an d (10) Tambubong in Bocaue, Bulacan; and (11) Brgy. Pinugay, Baras, Rizal and (12) Brgy . San Isidro, Rodriguez, Rizal. A housing beneficiary is required to pay the housing unit for 30 years, with a monthly amortization of at least P200.00 for the first five (5) years. The Aquin o Administration will subsidize P35,000.00 for each housing beneficiary. The ground breaking of the AFP-PNP Housing Project in Barangay Batia, Bocaue, Bu lacan was held on 23 May 2011. The first 4,000 Certificates of Land Entitlement and Lot Al lotment (CELA) were awarded and 90 housing units were turned over to AFP and PNP personn el in Brgy. Looc, Calamba City, Laguna; Brgy. Batia, Bocaue, Bulacan; Brgy. Gaya-Gaya, San Jose Del Monte, Bulacan; and Brgy. Pinugay, Baras, Rizal on 15 July 2011. 3.2. The President signed EO No. 15 on 20 December 2010, which increased the cur rent combat duty pay of soldiers from P240 to P500 effective January 2011. 3.3. To further unify and strengthen the AFP, the President issued Presidential Proclamation No. 75 granting amnesty to individuals who participated in the 25 July 2003 Oakw ood Mutiny, the February 2006 Marines Stand Off, and the 29 November 2007 Manila Peninsula H otel Incident. 4. Revenue Generation Enforcement In his first SONA, the President pledged that the Bureau of Internal Revenue (BI R) and Bureau of Customs (BOC) would file weekly cases against tax evaders and smugglers. Thro ugh the implementation of the Run After Tax Evaders (RATE) of the BIR and the Run After the Smugglers (RATS) of the BOC, the leaks in the government s coffers continue to be plugged. Moreover, the DOF s Revenue Integrity Protection Service (RIPS) investigated alleg ations of corruption in the DOF and its attached agencies. 4.1. The current administration intensified the implementation of its RATE progr am that in just one year, the tax evasion cases filed with the DOJ reached almost half of the 12 9 cases filed during the previous administration. From July 2010 to 07 July 2011, the BIR was able to file 55

tax evasion cases, involving a total taxable amount of over P22 billion. 4.2. As of 19 July 2011, filed with the DOJ 39 criminal cases involving 179 susp ected smugglers with a total dutiable value of P54 billion. Of the 39 cases, one (1) has been fi led in court, 21 have been submitted for resolution by the DOJ, seven (7) are under preliminary invest igation, while 10 are up for preliminary investigation.

4.3. As of 19 July 2011, the DOF has filed 86 cases against allegedly corrupt go vernment employees before the Office of the Ombudsman since 2003. A total of 53 officials have been suspended since the beginning of the RIPS program in 2003, 17 were suspended und er President Aquino s watch. A total of 19 officials have been dismissed from the service since 2003, three (3) of whom were dismissed under the term of President Aquino. 5. Making the Country an Attractive Investment Location. 5.1. Streamlined business name registration. The DTI successfully implemented me asures to reduce the time span of business name registration from an average of 4 to 8 hou rs to within 15 minutes. The Enhanced Business Name Registration System (EBNRS) simplified the a pplication process by reducing the required information fields from 36 to 18, resulting in the reduction of the application form from nine (9) pages to a single page. 5.2. Streamlined issuance of local government business permits. The DILG also si gned a Joint Memorandum Circular with the DTI to streamline the Business Permits and Licensin g System (BPLS) of 480 priority cities, capital towns, and municipalities from 2010 to 20 12. Out of these 480 priority LGUs, 18% or 86 LGUs have already streamlined their BPLS. Meanwhile , for all 1,634 cities and municipalities in the country, at least 21% are ready for the s treamlining of their BPLS. As a result, LGUs utilizing the new and improved BPLS offer better service to ap plicants for business permits in their respective areas of jurisdiction. LGUs are encouraged to use a single or unified form in every transaction, with a maximum of five (5) steps and five (5) signatories. The outcome is a .Business Friendly LGU. that offers reduced processing time for bus iness permits and licenses, i.e., 10 days or less processing time for new applications and fiv e days for license renewals. 5.3. Developed an electronic payment system. The PEZA has completed the developm ent of an Electronic Payment System for four (4) out of five (5) selected transactions of PEZA enterprises. PEZA s E-payment System is a cashless payment solution that allows clients to pay for transactions with PEZA online, 24 hours a day, and from anywhere. This system pr omotes greater transparency and efficiency. 5.4. Promoted competition. The President issued EO 45 on 9 June 2011, designatin g the DOJ as the Competition Authority. This will encourage competition and open markets. EO 45 mandates the DOJ to conduct investigations, enforce competition laws, and prosecute viola tors. It also authorizes the DOJ to supervise competition in the markets; monitor and implemen t measures to promote transparency and accountability in the markets; and to call on governmen

t agencies to submit reports and provide assistance to the agency. With this EO, the governmen t will be able to strengthen its enforcement of existing antitrust laws and policies to promote a level playing field, while Congress deliberates on the pending antitrust bills. B. ECONOMIC DEVELOPMENT 1. Sustaining Economic Growth and Employment

In the first quarter of 2011, real GDP grew by 4.9%, slower than the 8.4% growth in the same period in 2010 but very close to the 5.0%-6.0% forecast of the Development Budge t Coordination Committee (DBCC) for the year. Furthermore, this growth is within t he NEDA s forecast for the first quarter of 4.8%-5.8% and higher than the growth rate of M alaysia, Korea, and Thailand[10] for the same period. The strong performance of the industry and agriculture sectors, increased investments in capital formation, and increased household fin al consumption expenditure boosted growth. In April 2011, the unemployment rate went down to 7.2%, significantly lower than the 8.0% rate in April 2010 due to stronger growth of agricultural employment. The number of u nemployed persons decreased by 228,000 from 3.099 million in April 2010 to 2.871 million i n April 2011. Employment level grew by 4.0% in April 2011, translating to a net addition of 1. 408 million employed persons in the private sector. 1.1. Expanded Trade and Investments. Crucial to the goal of generating jobs is t he promotion of key investment areas and expansion of trade and investment activities where the country could be globally competitive (e.g., tourism, business process outsourcing and informa tion technology, among others). 1.1.1. Increase in Philippine Exports. Exports increased by 33.7% from $38.4 bil lion in 2009 to $51.4 billion in 2010, even surpassing the $50.27 billion record set in 2007. Th e 2010 export growth is the highest in 11 years since 1999. Exports grew by 7.5% from US$19.2 billion from January to May 2010 to US$20.6 billion in the same period in 2011. 1.1.2. Increase in Investments. For the period July 2010 to May 2011, the BOI an d PEZA approved a total of P535.19 billion worth of investments, a 73% increase compare d to the P309.87 billion approved investments in the same comparative period in 2009 and 2010. The P535.19 billion investments are expected to generate 137,118 employment opportun ities once fully operational. The larger part or 68% of the total investment approvals during the period July 2010 to May 2011 came from local investors with committed investments worth P366.62 billion, 95% larger than the P187.53 billion in July 2009 to May 2010. Foreign investors contributed a total of P168.57 billion or about 32% of the total. Just looking at the first five months of 2011, the strong business confidence, p articularly from local investors, was evident as overall domestic investments soared by 258% to a total of P224.57 billion from the P62.78 billion level posted during the same period in 2 010. The bulk of these domestic investments went into manufacturing (e.g., refined petroleum prod

ucts, metals, and electronic products), power, and real estate activities, among others. 1.1.3. Investments in Major Sectors. The following major investments in key sect ors form part of the approved investments for the period July 2010 to May 2011:

. Manufacturing. The manufacturing sector tops the list of sectors with the high est committed investments worth P283.07 billion during the period July 2010-May 2011 , a 131% increase compared to the P122.30 billion posted in the same period in 20092010. . Electronics. The Semiconductor and Electronics Industries in the Philippines ( SEIPI) reported that electronics investments in the country broke an all-time record hi gh as fresh capital expanded by 369% from $484 million in 2009 to $2.27 billion in 2010. Thi s is also the 7th year the industry hit over $1 billion in investments. As a result, 24,552 direct jobs will be generated. Of the 100 companies, which registered in 2010, 10 are expansions while the rest are new projects. The industry hopes to double its exp orts in six (6) years from $22 billion in 2009 to $50 billion in 2016. The industry is bulli sh for 2011 as its exports are expected to hit over $31 billion noting that the electronics sector will continue to be the driver of growth of Philippine exports. Business Process Outsourcing (IT-BPO). A total of 30,19 . Information Technology 8 ITBPO jobs were created for the first quarter of 2011. At least 84,000 more jobs a re expected to be generated in the BPO industry within 2011. The BPO industry inclu des call centers, legal and medical transcription, accounting services, software dev elopment and animation, and other services for overseas principals. To help fill up the p rojected vacancies, the Technical Education and Skills Development Authority (TESDA) will offer free six-month training courses for prospective BPO workers. Graduates wil l be absorbed by the BPO companies. TESDA has allotted a total of P20 million for the free training of workers. . Shipbuilding. Investments in shipping increased because of foreign investors ac cess to 100% ownership of companies engaged in shipbuilding and repair. . Mining. The mining and quarrying sectors recorded the highest increase in appr oved FDI, from P0.6 billion in 2009 to P 6.0 billion in 2010. The 2010 investments in mini ng are about nine times larger than the 2009 mining investments. . Mass Housing. Investments are huge at P59.02 billion. These investments, which represent about 50,000 units, are also expected to generate around P900 billion[ 11] worth of investments in related industries. . Energy. On 30 June 2011, the DOE launched the fourth Philippine Energy Contrac ting Round (PECR4), the biggest of all contracting rounds, in which 15 blocks with a total area of more than 10 million hectares were offered. The PECR4 is envisioned to a ddress the country s energy supply through the exploration of local indigenous resources.

This will help the country meet its daily demand and reduce the importation of petrol eum and petroleum products. The PECR4 road shows have attracted at least 140 independent and large-scale int ernational exploration companies expressing their interest to tender bids in the offered bl ocks. The DOE expects around US$300-500 million for each service contract[12]. Interested inve stors will have

until December 2011 to signify their intent to bid while the contracts are expec ted to be awarded next year. 1.2. Improved fiscal consolidation 1.2.1. The government deficit in 2010 was at P314.40 billion, 3.23% lower than t he P325 billion programmed deficit for the year.[13] The lower deficit was due to the implementa tion of measures to improve collections and spend wisely. 1.2.2. For the first five months of 2011, the government posted a deficit of P9. 54 billion, 94.11% lower than the P162.107 billion deficit in the same period in 2010. However, exc luding interest payments on debt, the National Government (NG) incurred a primary surplus[14] of P108.26 billion as of May 2011 due to increased revenues and sound spending, alo ng with the strict observance of the principles of zero-based budgeting. 1.2.3. Revenue collection increased to P1.21 trillion in 2010, 7.5% higher than the P1.12 trillion in 2009. The BIR s collections increased from P750.30 billion in 2009 to P822.60 b illion in 2010. The BOC s collections increased by 17.7% from P220.30 billion in 2009 to P25 9.2 billion in 2010. 1.2.4. Revenues grew by 16.30% from P500.01 billion in the first five months of 2010 to P581.50 billion in the same period of 2011. 1.2.5. The government lowered its disbursements by 10.73% from P662.12 billion i n the first five months of 2010 to P591.04 billion in the same period of 2011 due to more pr udent planning and sound spending of agencies. Government disbursed P1.52 trillion in 2010, or about 94% of the P1.62 trillion programmed for that year. 1.3. Other important initiatives to improve the fiscal position include the foll owing: 1.3.1. Congress prompt enactment of the 2011 General Appropriations Act (GAA) on 27 December 2010, the first budget passed on time since the 1999 National Budget. T he P1.65 trillion 2011 national budget is in favor of the poor and the vulnerable, as soc ial services were allotted the lion s share (34%). The budget is based on the principle of zero-base d budgeting, the objective of which is to cut wastage. 1.3.2. The 2012 Budget preparation is ahead of schedule, again, the first budget prepared ahead of schedule since 1998. As early as 30 December 2010, the DBM had already issued National Budget Memorandum (NBM) No. 107, s. 2010 providing all heads of departments, age ncies, bureaus, offices, commissions, state universities and colleges, and other instru mentalities of the national government the overall policy framework and thrusts for the FY 2012 Bud get. The NBM also set specific guidelines for the budget preparations.

1.3.3. Liability Management. Various upgrades in the country s ratings were obtain ed. Debt watcher Standard & Poor s revised its long-term foreign currency credit rating for the Philippines upwards to BB stable from BB- last November, reflecting the country s strong fiscal

fundamentals. The Moody s Investors Service and the Japan Credit Rating Agency, Lt d. also raised their outlooks for the Philippines from .stable. to .positive. in January and April 2011, respectively. The upgraded outlook from Japan reflects greater possibility that t he Philippine economy will resume momentum for the improving trend of its fiscal position afte r successfully weathering the challenges of the world financial crisis. For the second time in 2 011, Moody s Investors Service has upgraded the Philippines Ba3 foreign and local currency lon g-term bond ratings to Ba2, with a stable outlook, on the back of sustainable fiscal consoli dation process of the Aquino administration. On 23 June 2011, Fitch Ratings upgraded the Philippin es LongTerm Foreign Currency Issuer Default Rating (IDR) to =BB+ from =BB, with a stable outlook, just one notch below investment grade. This rating was last achieved in 1997 jus t before the Asian financial crisis. With the upgrade, the country is now one step closer to attaining an investment grade rating, which is crucial in further lowering borrowing costs an d attracting more foreign direct investments. The Aquino administration moved early in executing its first Global Exchange las t September 2010 wherein a total of US$2.29 billion worth of short-term, high coupon U.S. do llar bonds were exchanged into less costly but longer dated Republic of the Philippines (ROP) gl obal bonds. This represented one of the largest liability management exercises from an emerging m arket issuer at the time and was immediately followed by the P199 billion domestic bond swap in December 2010, which offered 10 and 25-year securities to holders of maturing bonds. Debt exchanges and the issuance of longer-termed securities increased the averag e maturity of government debt to 8.8 years in December 2010 from 7.9 years in June 2010. The debt-to-GDP ratio dropped from 57% in 2009 to 55.4% in 2010, well within the 2010 target of 56.5%. This means that the Philippine government is in a better position to s ettle its liabilities. The government decreased debt servicing by 2.14% year-on-year from P339.34 billi on in the 1st quarter of 2010 to P332.07 billion in the first quarter of 2011 as the Aquino go vernment cut down on interest payments. 1.4. Ensuring Monetary and Banking Stability The government maintained an effective balance on policies to preserve price sta bility and support economic growth. As a result, inflation for 2010 averaged at 3.8%, which was within the Government s 2010 inflation target of 3.5%-5.5%. The inflation rate for the first five months of 2011 averages at 4.2%, which was likewise, within the Government s target of 3%-5% . 1.4.1. Government also ensured a stable, market-driven peso. The peso appreciate d by 6.8%,

from P47.46/US$1 average in July-December 2009 to P44.45/US$1 in July-December 2 010. The peso appreciated by 4.8%, from P45.66/US$1 average in January to May 2010 to 43. 55/US$1 average in January to May 2011. The sustained foreign exchange inflows of portfo lio and direct investments, overseas Filipinos (OF) remittances, receipts from exports, BPO, an d travel continued to support the peso s strength.

The country s international reserves were built up, taking advantage of the strong inflows of foreign exchange to cushion the economy from external shocks. As a result, the c ountry s gross international reserves (GIR) grew by 44% from US$47.7 billion in end-May 2010 to $68.8 billion as of end-May 2011.[15] The country is expected to achieve the 2011 GIR target level of $70 billion as it anticipates sustained foreign exchange inflows from portfolio and direct investments, OF remittances and receipts from exports, BPO and travel. 1.4.2. The government continued to pursue reforms and implement new regulations to maintain the soundness and stability of the banking system. The total resources of the ba nking system rose by 9.4% to P7.1 trillion as of end-March 2011, spurred by the robust growth in b ank deposits which grew by 9.3% to P5.0 trillion. Asset quality continued to improve with the non-performing loan ratio[16] of uni versal and commercial banks falling to 2.95% as of end-April 2011. This is well below the p re-1997 crisis level of 4%. The banking system s overall capitalization also remained strong, wit h a 17% capital adequacy ratio (CAR) [17] as of end-September 2010. This is way above th e BSP regulatory requirement of 10% and the Bank for International Settlement (BIS) st andard of 8%. With stability and ample liquidity in the banking system, banks continued to per form their critical function of channeling credit to the productive sectors of the economy. Bank lending grew at a healthy pace of 14.2% as loans for production activities increased by 15.7% in April. 1.4.3. Stock Market. Since the start of the Aquino Administration, the Philippin es Stock Exchange Index (PSEi) hit all-time high levels on seven (7) different occasions: on 20 July 2011 at an all-time high of 4,507.04 points; 19 July 2011 at 4,485.65 points; 18 July 2011 at 4,476.01 points; 15 July 2011 at 4,458.74 points; 5 July 2011 at 4,439.61 points; 4 July 2011 at 4,421.56 points; and 4 November 2010 at 4,397.30 points. Mining and Oil, holding firms, a nd industrial sectors are among those industries that outperformed their own previous performa nces in the stock exchange. 2. Ensuring Vital Infrastructure and Energy Sufficiency 2.1 Improved infrastructure support to sustain economic growth. The following ar e some of the major infrastructure projects completed during the first year of the Aquino Admi nistration: Name of Project Amount

Completion Date Valderrama Bridge and Approaches, Antique (UK-ODA) P53.07 million 28 March 2011 Bugo Bridge and Approaches, Antique (Austria-ODA) P148.17 million 31 March 2011 Estrella Pantaleon Bridge and Approaches, Makati and Mandaluyong City P189.32 million 15 January 2011

(GOP and Austria-ODA) Butuan City Bypass Road (Bonbon-Banacasi Airport Section and Lemon-Antongalon Section), Agusan Del Norte P177.96 million 30 April 2011 Butuan City-Cagayan de Oro-Iligan Road (Agusan-Misamis Road), Agusan del Norte P105.12 million 26 October 2010 Tiniwisan-Maguinda Road (Lemon-Pigdaulan Section), Agusan del Norte P335.03 million 23 April 2011 Metro Iloilo Radial (R4) Bypass Road and Iloilo City-Sta.Barbara Road P1.21 billion 23 April 2011

ODA and partnerships with the private sector augment government s infrastructure s pending to ensure the timely and full completion of our infrastructure priorities. The DPWH s management philosophy of .Doing the right projects at the right cost and right quality. als o resulted in increased savings. The DPWH aims to use these savings for prioritization of other development proje cts. For 2011, P16.20 billion or 24.3% of the total DPWH Capital Outlay has been allocated for infrastructure development in Mindanao. This will help facilitate economic growth in the region . 2.2 Upgrading the quality and safety of national roads. 2.2.1 Strictly enforced the anti-overloading program pursuant to RA No. 8794 (MV UC Law). The DPWH deployed additional mobile weighing stations to augment the 22 weighbri dge

stations nationwide. Out of 92,279 weighed trucks in the 22 weighbridge stations nationwide, 37% or 34,026 trucks were overloaded and apprehended from January to May 2011, w hile 4,188 trucks or 3% of 143,928 weighed trucks in the 13 mobile weighing stations in Met ro Manila were apprehended from February to May 2011. 2.2.2 Enhanced road safety and minimized traffic congestion on major roads. A to tal of 757,809 violators of transport laws and regulations were apprehended for the period July 2010-April 2011. This is 45.79% higher than the DOTC s target to apprehend 519,780 errant dri vers for the same period. 2.3 Working Towards Energy Sufficiency 2.3.1 Energy Efficiency and Conservation. The DOE took the following initiatives to promote the conservation and efficient utilization of energy resources: Established the Wholesale Electricity Spot Market (WESM) in Visayas, whi ch immediately stabilized electricity supply and eliminated the manual load droppin g of customers. WESM Visayas has also provided good market signals for investors. Currently, the re are already 180 market participants for the integrated Luzon and Visayas market. On the othe r hand, the Effective Settlement Price (ESP) in the WESM for both Luzon and Visayas from Jan uary to April 2011 ranged from a high of P3.33/kWh in February to a low of P2.30/kWh in March 2011. These prices are lower than the NPC regulated price of P4.6727/kWh. This is a bi g reduction from the 2010 ESPs which ranged from a high of P10.63/kWh in March 2010 to a low of P3.63/kWh in August 2010. This means that the more players in the market transla te to a more stable and reliable supply of electricity, as well as better power pricing for t he benefit of consumers. With the commercial operations of the WESM in the region, power outages were eli minated as it allowed even the power plant s generating capacity not covered by bilateral contra cts to be dispatched by trading its capacity in the power spot market. This kind of set-up provides better market condition and structure to entice more investors to address future power needs. Increased the Visayas generation capacity by 610 MW with the commissioni ng of new power plants in the Visayas region. These power plants are the 246 MW coal-fired power plant of the Cebu Energy Development Corporation (CEDC), the 164 MW clean coal-fired p ower plant of the Panay Energy Development Corporation (PEDC), and the 200 MW coal-fi red power plant of the KEPCO Salcon Power Corporation. This gave the Visayas surplus power of about 600MW. Increased and constant investor interest, in turn, will provide a long-te rm solution in terms of power sustainability for the region. A Shareholders Agreement was recently signed to develop a 600-MW circulat ing fluidized bed coal-fired power plant project within Subic Bay Freeport Zone. The project consists of two (2) 300-MW generating units. The total cost of the project is es timated at US$1 billion and its commercial operations is scheduled in October 2014 (for the firs t 300-MW unit) and April 2015 (for the second unit). Said power plant will use an environment-f riendly clean coal technology known worldwide to cut down environmental impacts of operating a coal fired plant. The power facility is expected to augment generation capacity of the Luzo n Grid. Promoted the .Don Emilio Abello Energy Efficiency Awards.[18], whose rec ipients,

including some 61 industrialized, commercial, and transport companies, were able to post total savings of 156 million liters of oil amounting to P5 billion, and reduced carbon emissions equivalent to 269,000 tons. Conducted 12 energy audits[19] for industrial, commercial, academe, and government buildings to ensure the efficient use of energy. Total energy savings reached P2 4.6 million after the conduct of such audits. 3. Achieving Food Security for More Equitable Economic Growth

The country has been highly dependent on the importation of food staples. To les sen the nation s dependence on imports, Government has placed top priority on agricultural development. 3.1 The Agriculture sector (Agriculture, Hunting, Forestry and Fishing) grew by 4.2% in the first quarter of 2011 from a negative growth of 1.08% in the first quarter o f 2010. The Bureau of Agricultural Statistics (BAS) reported a 4.04 million metric ton (MT) palay production in January to March 2011, 15.6% higher than the 3.49 million MT produ ced in the same period in 2010. The yield per hectare is estimated to reach 3.8 MT from January to June 2011, a 4.3% improvement from the 3.64 MT per hectare in the same period in 2010. As such, th e farmer s profit per hectare would reach P14,782.00 from January to June 2011, a 4% improv ement from the P14,159.00 profit per hectare in the same period last year. Expansion in palay harvested area, availability of irrigation water and services , and aggressive advocacy of the DA in the implementation of its Rapid Seed Supply Fin ancing Project, which distributes high quality seeds to qualified palay farmers, contri buted to the increase in palay output. 3.2 Completed projects to strengthen the agricultural sector 3.2.1. Under the continuing regular fund from the DA, a total of 1,814 kilometer s of Farm to Market Roads (FMRs) were completed from July 2010 to May 2011, out of the target ed 2,567 kilometers. In addition, 687 kms more FMRs were completed under the locally-fund ed and foreign assisted projects. Overall, a total of 2,501 kms of completed FMRs provi de better access to markets and social services and boost economic activities by allowing goods a nd products to flow in and out of the barangays. FMRs also help reduce transport costs, spoilag e and deterioration of quality of agricultural products, and facilitate delivery of fa rm inputs. 3.2.2. From July 2010 to June 2011, a total of 65 tramlines were completed conne cting remote areas to FMRs. A total of 67 agricultural tramlines were completed since project start-up in 2009, which is 63% of the targeted 107 units to be completed by December 2011. T he use of these tramlines cuts the cost of hauling by half from P2 to P1 per kilogram of p roduce and reduces hauling time significantly from hours to just a few minutes. Inaugurated on 13 April 2011 at Twin Peaks, Tuba, Benguet, a 400-meter tramline has reduced hauling time from 2 hours to five minutes. Farmers pay P1 per kilo of produce to cover the cost of diesel fuel, engine maintenance and other repairs and allowance for the traml ine operator.

On 25 February 2011, a tramline built by DA-Philmech at a cost of P1.6 million w as inaugurated in La Paz, Zamboanga City, a barangay located 970 meters above sea level. A 370 meter distance between the barangay and the closest national road used to take 12 hour s to traverse. With the tramline, travel time over this distance has been reduced to three minu tes. A local group, the La Paz Farmers Association operates the tramline collecting a fee of o ne peso for a load of 350 kilos of corn and vegetables.

3.2.3. All in all, in the first 11 months of the Aquino Administration (July 201 0 to May 2011), 11,611 hectares of new areas were irrigated, 40,053 hectares were restored, and 171,910 hectares were rehabilitated both for current and carry over projects. Restoration entails repairing the irrigation facility that is currently not functional while rehabilitation means upgrading or improving the facility, which is currently working but has not attained the maxi mum or designed irrigation efficiency. 3.2.4. Put up the following post-harvest facilities: . One hundred eighty seven (187) food terminals from July 2010 to April 2011 ben efiting 1,155 small farmers and fishers. These food terminals provide affordable basic f ood commodities to around 457,859 households who are able to save not only from lowpriced commodities but also from cuts in transportation expenses and reduction o f middlemen costs. The savings on transportation cost ranges from P8 P200 for every trip to the market. . Thirteen (13) or 68% of the targeted 19 Corn Post Harvest Trading Centers (CPH TC) in major corn producing areas nationwide. These centers ensure continuous supply of corn even during the wet season, guarantee premium quality, and open opportunity for other investments in the corn industry. . A total of 1,342 small scale composting facilities in the different regions na tionwide, reaching 100% of the target, and generating 5,368 jobs. This forms part of the government s promotion of organic farming through the Organic Fertilizer Productio n Project, which will enable farmers to produce their own organic fertilizer to re duce dependence on expensive synthetic fertilizers. . A total of 56 units of flatbed dryers from July 2010 to April 2011, attaining 100% of the target and generating 402 jobs. These will reduce post-harvest losses during the drying stage of palay and ensure quality drying during the rainy season. . Four (4) cold chain facilities[20] from July 2010 to May 2011 would enable far mers of high value crops to store their fruits and vegetables in the appropriate tempera ture and prolong the quality and shelf life of perishable crops, obtaining for the farmer s a better selling price for their produce. These facilities were turned over to three (3) cooperatives in Benguet, Palayan City, and San Jose City, benefiting 139 farmers. . Ten (10) units of Village-Type post-harvest facilities as of June 2011, in key corn production areas and strategic demand sites nationwide. Thirty-one (31) more uni ts are expected to be completed and operational by the end of 2011.

3.3. Fostered a culture of self-reliance 3.3.1 Some of the strategies under the Food Staple Self-Sufficiency program incl ude the termination of direct input subsidies to farmers and front-loading of irrigation investments in 2012 and 2013 to increase output as early as possible, thus decreasing the need to import rice.

These actions are already bearing fruit as seen in the bumper crop harvest from January to March 2011. 3.3.2 The country s rice importation dropped significantly by 80% from an import v olume of 2.02 million MT from July 2009 to June 2010 to 386,243 MT from July 2010 to June 2011. The decrease in volume of actual rice import arrivals can be attributed to the good harvest and the comfortable stock position of the country. Likewise, rice shipments were schedul ed better. From here on, NFA buffer stocks will consist mainly of palay purchased from local far mers a long standing demand of the rice farmers. From January to June 2011, the government t hrough the NFA has procured some P7.64 billion worth of palay from all over the country. Th is is 16% of the NFA stock. The NFA targets to increase this volume from the harvest from the main cropping season later this year. The total rice imported in 2010 was 2.38 million MT. For 2011, the government sh all import 64% less or 860,000 MT, with 200,000 MT imported by the government, and 660,000 MT by the private sector. For 2012, rice imports shall further decline to 500,000 MT, with 100,000 MT imported by the government and 400,000 MT imported by the private sector. 3.3.2. The government was able to increase the average farm gate price of palay by 2.89% within a short period, thereby immediately increasing the farmer s income. Strategic rese rves and placements made it possible for the price of rice to remain stable, thereby assu ring the affordability and availability of rice to the public. 3.3.3. Production in the crops subsector was also up by 8.19% and the main contr ibutors were palay, corn, sugarcane, and banana. The country has regained its status as net s ugar exporter for the current crop year, having recovered from the sugar shortage in 2009-2010 whe n the country imported raw and refined sugar. 3.3. Other Agribusiness Interventions Livestock. Today, the Philippines is both avian flu-free and foot-and-mouth dise ase (FMD) free. The OIE[21], or the World Animal Health Organization, last May 2011 certified th e Philippines as .FMD-free without vaccination.. This accreditation opens the gates for the co untry s hog raisers to export meat products. 4. Improving National Productivity and Competitiveness 4.1. National Competitiveness Council (NCC). NCC was reconstituted through the i ssuance of EO No. 44, s. 2011. NCC is working on improving the Philippine standing on compe titiveness indicators where the Philippines had the lowest rankings including infrastructur e, governance, and ease of doing business.

4.2. Tourism Industry. In 2010, visitor arrivals surpassed the 3.3 million targe t for the year reaching an all-time high of 3.52 million, 16.67% higher than the 2009 visitor a rrivals of 3.01 million. In just the first year of the Aquino administration, a 15.60% incr ease in visitor

arrivals was recorded from 3.2 million arrivals in the period July 2009-June 201 0 to 3.7 million arrivals in the period July 2010-June 2011. More particularly, in the first six months of the Aquino Administration, visitor volume grew by 21%, faster than the first semester of 2010 s 12% growth. Total receipts from visi tors increased by 11.3% from $2.24 billion in 2009 to $2.49 billion in 2010. This may be attrib uted to the confidence in the new administration, as well as the improved economic condition s in tourist source markets. The continued growth in visitor volume is the result of sustained marketing and promotions efforts undertaken jointly by the public and private sectors in key source marke ts, such as attendance to travel fairs, invitational programs and very selective advertising . The Civil Aeronautics Board (CAB) granted new permits to operate regular air ser vices to the following: Korean Airlines, Gulf Air, Continental Airlines, Pakistan Internation al Airlines, which are expected to provide weekly seat capacity of 12,090 from Korea, Bahrain , Guam, and Palau. The CAB also granted permits to Jin Air, Jetstar Airways, Air Busan, Mand arin Airlines, Air Nippon Airways, and Jeju Air. These airlines are expected to bring in 1,498 and 2,265 tourists weekly from Japan and Korea, respectively. The DOT further estimates that there will be an additional 37,623 potential Japa nese tourists and 56,888 potential Korean tourists in the country with these additional seat capac ities. It may be noted that in 2010, Korean tourists accounted for the biggest chunk of visitor arrivals or 21.04% (740,622) while Japanese visitors accounted for 10.19% (358,744) of to tal tourist arrivals. 4.3. Pocket Open Skies Policy. EO Nos. 28 and 29 were issued on 14 March 2011, w hich aims to reorganize the Philippine Air Negotiating Panel and Philippine Air Consultation Panel; and authorize the CAB and the Philippine Air Panels to pursue more aggressively the international civil aviation liberalization policy. The Implementing Rules and Regulations (IR R) was approved by the CAB Board and published in Manila Bulletin on 09 May 2011. It is also available in the CAB website. 4.4. Encouraging Local Innovation. The DOST is concentrating its efforts on inno vating and promoting technology as economical solutions to exigent socio-economic matters t hat affect our country. This includes the development of the ovicidal/larvicidal (O/L) trap. Th is is a simple tool to lessen the incidence of dengue. The O/L trap consists of a tin can containing an organic solution that attracts and terminates the eggs and larvae of mosquitoes. As of M ay 2011, the

DOST distributed four traps per household or a total of 200,000 O/L traps to 50, 000 households nationwide. Another innovation that the DOST is developing is a prototype of the Automated G uideway Transit (AGT) System, a monorail-type rapid mass transit system that employs a r ubber tire on concrete form of conveyance. Unlike the common light-rail type train systems ava ilable in the country, the AGT System requires less space for its structural support, making i t suitable for the

narrow spaces that are available in the cities. It is also cost-efficient, Phili ppine-made, and environmentally-friendly. Yet another important DOST innovation is the landslide sensor. A landslide senso r is an automated borehole sensor column that is buried in the ground. It gathers data o n ground movement and soil moisture content, and sends it automatically to a computer tha t runs predictive models for landslides called Dynaslope. A landslide sensor is current ly deployed in Benguet and there are plans to install more sensors in provinces such as Souther n Leyte, Albay, and Bohol within the year. C. HUMAN DEVELOPMENT AND POVERTY REDUCTION The anti-corruption call Kung Walang Corrupt, Walang Mahirap further serves as a m eans to achieve a higher end, which is to reduce poverty and improve the quality of life of the Filipino people. It increases investments and advances economic development to further fr ee-up resources for much needed social interventions. Towards this end, a convergence approach has been adopted, with opportunities for education, housing, health care, employment , and livelihood made available. With savings arising from eliminating wasteful and corrupt pract ices, programs and projects for social intervention can be funded. These include the following: 1. Building Capacities of the Poor and Marginalized 1.1 Expanded coverage of the CCT or the Pantawid Pamilyang Pilipino Program (Pan tawid Pamilya). The government has reached the targeted 1 million households in 2010, and intends to cover an additional 1.3 million households for a total of 2.3 million households by the end of 2011. As of 10 July 2011, a total of 2,201,792 household beneficiaries, or 94.12% of t he 2,339,241 million households target for 2011, have been registered in the program. The reg istration for the remaining 137,449 households is on-going. As of 30 May 2011, the cash grants funded cover 1,619,974 household beneficiarie s. Overall average compliance rate vis--vis the program conditionalities in 2010 for household beneficiaries belonging to Set 1[22]and 2[23] is high, as may be observed in the following: PROGRAM CONDITIONALITY RATE Health Visits

(for pregnant women and children 0-5 years old) 96.16% Education (Day Care) 95.40%

Education (Elementary) 96.86% Family Development Sessions 95.92% From January to April 2011, high compliance rate to the program conditionalities was also recorded: CONDITIONALITY January February March April Health Visits (for pregnant women and children 0-5 y.o.) 90.82% 91.94% 92.86% 93.72% Education (Day Care) 90.20% 90.95% 92.82% not available Education (Elementary) 90.27% 90.82% 92.69% not available Family Development Sessions 96.34% 96.47%

96.64% 96.45%

The high compliance rates with the program s conditions indicate that the people a re responsive to the importance of investing in health and education in order to improve their quality of life. Currently, the DSWD is converging its core social protection programs (i.e., Pan tawid Pamilya, the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Soci al Services, and the Self-Employment Assistance-Kaunlaran Program) to ensure that poverty red uction objectives of the Aquino Administration are accomplished. 1.2 Empowered communities through the Kapit-Bisig Laban sa Kahirapan Comprehensi ve and Integrated Delivery of Social Services (KALAHI-CIDSS). The KALAHI-CIDSS is a strategy for community empowerment and poverty reduction t hat employs a community-driven development (CDD) approach. KALAHI-CIDSS allows communities to identify, analyze and prioritize the projects that would best sol ve their immediate needs (e.g., water systems, school buildings, day care centers, barangay health stations, electrification, housing, access roads/trails/bridges, livelihood assistance, en vironmental protection/ conservation programs, and skills training, among others). From July 2010 to 30 May 2011, the KALAHI-CIDSS projects have been implemented in 10 regions, 25 prov inces, 78 municipalities, and 1,759 barangays. The program s capacity building initiatives h ave been completed benefitting the 40,112 targeted community volunteers. These initiative s cover the conduct of project development and management, financial management, procurement , development planning, and infrastructure implementation.

As of 30 June 2011, out of the 570 targeted community projects, 490 community su b-projects costing P507.94 million, have been completed, benefiting 133,439 households. The sub-projects include the construction of health and day care centers, pre- and post-harvest f acilities, roads, and bridges, among others. 1.3 Enhancing the capacity of the poor for entrepreneurship through the Self-Emp loyment Assistance-Kaunlaran (SEA-K) Program. The SEA-K is a capability building and liv elihood program that aims to enable poor families to establish and manage sustainable co mmunity-based credit organizations for entrepreneurship development. From July 2010 to June 2011, a total of P120,058,333 was released to 21,296 fami lies as capital seed fund at a maximum of P10,000 per family. Out of which, P40,349,333 has been released to 5,572 Pantawid Pamilya beneficiaries under the Sustainable Livelihood Program of the DSWD s Convergence Strategy. 2. Advancing and Protecting Public Health Universal Health Care or Kalusugang Pangkalahatan is the government s response to the inequities and lack of access to health care. It envisions providing all Filipin os with quality and appropriate health care whenever and wherever needed. 2.1. Pursued Universal Health Care. The National Household Targeting System for PovertyReduction (NHTS-PR) has identified 5.2 million households[24] for enrolment in t he Sponsored Program of the Philippine Health Insurance Corporation (PhilHealth). As of 19 July, all of the 5.2 million families identified by the NHTS-PR are now enrolled in PhilHealth under the Sponsored Program. This represents 100% of the families cla ssified by NHTS-PR as the poorest Filipino families. Starting August 2011, PhilHealth will offer the poorest of the poor a no-balance billing package covering 22 medical and surgical cases[25]. This means that for the poor patient s who belong in the 5.2 million families identified by the NHTS-PR and enrolled in PhilHealth, n o payments shall be required by the public health facility or public hospital for the treat ment of illnesses such as dengue, diarrhea, pneumonia, typhoid fever or asthma, or for normal or caesar ean deliveries during childbirth, among others. 2.2. Upgrading the rural health units and government hospitals. A total of P7.1 billion has been allocated in 2011 for the Health Facility Enhancement Program (HFEP),[26] P5.70 billion of which shall be used for the improvement of rural health units (RHUs) and baranga y health stations, while P1.40 billion shall be used for the enhancement of DOH retained hospitals.

A total of P3.70 billion was also released to various LGUs nationwide for the up grading of health infrastructure. The amount funded a total of 553 projects for the civil w orks and upgrading of equipment for Basic and Comprehensive Emergency Obstetrics and Neonatal Care (BEmONC) in new or renovated health centers and government hospitals.

2.3. Provided more health workers to the unserved and underserved communities 2.3.1. Registered Nurses for Health Enhancement and Local Service (RNheals) Prog ram. As of 28 June 2011, the DOH has deployed 9,884 out of the targeted 10,000 nurses to 1, 331 municipalities. This program aims to help uplift the health conditions of the po or in the rural and underserved municipalities. 2.3.2. Doctors to the Barrios (DTTB) Program. As of 28 June 2011, 83 doctors wer e deployed to 83 5th and 6th class municipalities that had few or no medical practitioners, th ereby improving access to quality healthcare. 2.3.3. Rural Health Midwives Placement Program (RHMPP). As of 28 June 2011, 173 midwives were deployed to 15 regions to provide maternal and child health care services i n the CCT areas, BEmONC facilities and in the unserved, underserved, and hard-to-reach 5th and 6t h class municipalities. 2.3.4. Rural Health Team Placement Program (RHTPP). As of 28 June 2011, 44 denti sts, 43 medical technologists and 40 nutritionist-dieticians were also deployed to 105 m unicipalities to provide the community with a complete healthcare package. 2.4 Other health-related accomplishments The Iligtas sa Tigdas ang Pinas Program. For the period 4 April 2011 to 04 June 2011, the DOH allocated P635 million to procure vaccines and other mobilization requirements f or the nationwide door-to-door vaccination of an estimated 18 million children aged 9 t o 95 months old. Out of the 18 million target, 15,321,749 children or 82% have been vaccinat ed. Government effort on Dengue. Due to intensive public information, preventive mea sures and collaboration among government and the private sector, as of July 2011, the numb er of dengue cases is lower by 13.8% with 34,090 compared to 39, 556 last year. 3. Providing Access to Quality Education 3.1. Allocated a bigger budget for basic education. The government allocated P20 7.30 billion for basic education in 2011, which is 18.46% higher than the 2010 budget of P175 bil lion. The budget includes P2.30 billion[27] for the 1,193,550 kindergarten students for SY 2011-2012, the start of universal kindergarten under the government s K to 12 program. The budget also includes P5.8 billion for the Government Assistance to Students and Teachers in Private Education (GASTPE) program, which shall benefit 757,806 students for school year 2011-2012, a 9.54% increase over the 2010-2011 period. Furthermore, to ensure that more stu dents from marginalized families benefit from the GASTPE Program, the tuition subsidy for s tudents residing outside Metro Manila was increased from P5,000 to P5,500.

3.2. Constructed more classrooms and toilets. From July 2010 to May 2011, 2,493 new classrooms had been constructed out of the remaining 3,962 classrooms to be cons tructed using funds from fiscal years 2008 to 2010. The remaining classrooms are expected to b e completed

from August to October of 2011. The construction of new classrooms, this time pr ovided for in DepEd s 2011 budget, commenced, with 9,104 out of 11,683 classrooms already in the process of bidding and procurement. For the period July 2010 to May 2011, about 6,691 classrooms, or 75% of the targ eted 8,871 classrooms due for repairs, have also been rehabilitated. In addition, 2,493 toi lets or 71% of the targeted 3,501 toilets have been newly installed in schools. LGUs and private sector partners have also actively participated in the provisio n of new classrooms to schools. LGUs have built a total of 1,662 new classrooms in school year 20102011 alone. Several LGUs have also responded positively to the Counter-Parting f or Classroom Construction Program, which was established early this year. As of June 2011, LG Us have a running commitment of P760.65 million to build 895 new classrooms this school ye ar on top of the DepEd s regular school building program through the counter-parting scheme. Meanwhile, private sector groups committed to build 251 new classrooms. The DepE d continues to cultivate its strong partnership with business and civil society organization s through schoolbuilding initiatives such as the Bayanihang Pampaaralan, which aims to significa ntly address the public schools system s classroom shortage within the next two years. 4. Providing Decent and Affordable Housing The Aquino Administration is espousing transparency, decisive action to resolve government inefficiencies, preferential action for the underprivileged, and increased partn ership with stakeholders for the purpose of affording decent shelter to those in need. 4.1 Closing the housing gap by providing secure tenure and increasing the social ized housing stock. From July 2010 to June 2011, the Housing and Urban Development Coordinati ng Council (HUDCC) and its Key Shelter Agencies[28] (KSAs) focused on the review of housing policies and programs to improve the delivery of housing services. These activities have so far resulted in the provision of decent housing to 104,903 families. 4.2 Pursued a more responsive housing loan policy. From July 2010 to June 2011, amidst the policy reforms being undertaken by the Home Development Mutual Fund (HDMF or Pag -IBIG) to avoid fraudulent activities and make the lending program more responsive to i ts members, the agency approved the release of P47 billion worth of loans to a total of 67,660 m embers for the purchase of new houses. 4.3 Pursued a More Comprehensive Resettlement Policy. The National Housing Autho rity (NHA) released P3.08 billion for resettlement and other programs from July 2010 to June 2011. This benefitted nearly 25,400 beneficiary-families. The review of the NHA s resett lement

policies is on-going to include the provision of basic social services (e.g., sc hools, public markets, health care centers) and livelihood opportunities at the resettlement s ites. 4.4 Intensified the implementation of the Community Mortgage Program (CMP). Unde r the CMP, P692 million was released from July 2010 to June 2011 to organized informal settler

communities for land acquisition, benefiting 11,413 beneficiary-families. Of thi s number, 8,880 families benefited in the first half of 2011, which already surpassed the full-y ear accomplishment in 2010 of 7,109 beneficiary-families. 4.5 Partnering with LGUs in providing housing to the homeless. The HUDCC conduct ed Pabahay Caravans in Region VII (Cebu), Cordillera Administrative Region (Baguio) , Region III (Pampanga), Region IV-A (Tagaytay), Region VIII (Tacloban City), Region IX (Zamb oanga City) and Region XI (Davao City). The caravan brought the various housing progra ms and services of the shelter agencies, to help the LGUs address their housing needs d irectly to the LGUs. HLURB and HUDCC offer assistance in the preparation of the LGUs respective compre hensive land use plans and local shelter plans, respectively. The Pag-IBIG Fund has devo ted a lending window for LGUs with available land for housing but lack funds to build units. F or LGUs without land for housing, the Social Housing Finance Corporation (SHFC) may fund 75% of their housing project cost under the Localized Community Mortgage Program. Under its resettlement assistance program, the National Housing Authority (NHA) is open fo r joint ventures with LGUs that need to relocate informal settlers. The LGU provides the land while NHA funds the site development. Stronger linkages with the LGUs have started to bear fruit. The Pag-IBIG Fund ha s just signed a Memorandum of Understanding with the Quezon City LGU for the housing project in Barangay Payatas for low-income personnel and informal settlers occupying danger areas. M anila and San Pedro, Laguna are also set to enter into a partnership with Pag-IBIG Fund for th eir own housing projects. These projects are in the assessment stage on technical design of unit s, specifications and income profiling of beneficiaries. The SHFC adopted the strategy of expanding partnership with LGUs to have a pro-a ctive identification of areas for CMP. More specifically, it has targeted 70% of its p ortfolio for cities outside the National Capital Region, prioritizing Highly Urbanized Cities, citie s with high population growth rates, and the Metro cities. 4.6 Improved coordination among KSAs and other partners. For the first time in s everal years, the HUDCC was convened and now holds regular quarterly meetings to discuss polic ies and enhance coordination not only among government agencies but also with Congress a nd the private sector. Members of Congress, notably the Chairmen of the respective Hous es Committees on Housing and Urban Development, have participated in the Council me etings,

resulting in a unified position on housing policies and directions for the next six (6) years, which were adopted during the first Council meeting held on 13 January 2011. On the other hand, Non-Government Organizations (NGOs), such as the Gawad Kaling a and the Habitat for Humanity (HfH), have proven that affordable housing and better commu nities can be developed with the help of concerned private citizens and LGUs. As such, HUDCC i nvolved the participation of NGOs in policy making. It is worth noting that HfH was elected as one of the members of the SHFC Board of Directors.

4.7 Addressing the concerns of informal settler families. Despite the passage of Republic Act 7972 (or the .Urban Development and Housing Act [UDHA]) in 1992, the rampant pro liferation of informal settler families (ISFs) remains to be a perennial problem. It has be come an unsightly manifestation of urban decay and intergenerational neglect. Despite the governme nt s clear statutory policy of preventing the propagation of ISFs, while protecting and uph olding the rights of ISFs, the conduct of illegal, forced, or unilateral demolitions and eviction activities was still witnessed, especially during the previous administration. Consequently, as of 2010, the Metro Manila Development Authority (MMDA) reported that there were already 556,526 ISFs in Metro Manila, 102,406 of whom live in danger areas. Aware of the plight of the ISFs, the Aquino Administration sought the full enfor cement of the UDHA by requiring all LGUs to conduct adequate consultation and relocation of in formal settlers before any demolition or eviction is carried out. The term .adequate. m eans that the relocation sites should include basic services and facilities and access to empl oyment and livelihood opportunities, as mandated by law. Moreover, LGU officials were direc ted to adopt measures to effectively curtail the proliferation and further increase in the nu mber of informal settlers and mendicants in their respective localities,[29] and to create their respective Local Housing Board or a Local Inter-Agency Committee that shall be responsible in evi ction and demolition-related activities in their areas. About 56 cities and 102 municipali ties have fully complied with the directive. 5. Promoting Opportunities for Decent Employment 5.1 Promoting the welfare of Filipino workers abroad 5.1.1 Institutionalized the One-DOLE Overseas Operations System. For the first t ime, the DOLE institutionalized an integrated One-DOLE Overseas Operations System in deploymen t, financial systems, monitoring and reporting, and accountability of the Labor Attachs, Welfa re Officers, and Administrative Staff to the DOLE Secretary. Adopted in 2011, this means that support services of DOLE, Overseas Workers Welfare Association (OWWA), and Philippine Ov erseas Employment Association (POEA) for its operating units onsite now follow uniform selection and pre-deployment procedures, joint work and financial reporting system, and unifor m operational guidelines on OFW case management and repatriation. This is expected to eventual ly redound to better selected, trained and matched officers at the Philippine Overseas Labor O ffice (POLO), more reliable performance and statistical data on overseas operations, and maxim ized allocation

and utilization of resources especially in POLOs where it is more needed. 5.1.2 Provided assistance through the Legal Assistance Fund (LAF). The DFA provi ded assistance amounting to P10.21 million to 146 Filipinos in need of legal aid for the period July 2010 to 28 June 2011. Assistance through the LAF may take the form of fees for c ompetent private counsel, bail bonds, court fees, charges and other reasonable litigation expenses, travelling expenses, and communication expenses in connection with the legal ass istance. 5.1.3 Provided assistance to OFWs in crisis areas through the Assistance to Nati onals (ATN) Fund. From July 2010 to 28 June 2011, assistance amounting to P281,489,716.65 wa s provided

to overseas Filipinos in distress through the ATN Fund. Government repatriated a total of 10,369 overseas Filipinos in four (4) crisis-affected areas (Egypt; Libya; Yemen; and F ukushima, Japan) from 29 January to 28 June 2011. In response to the Egypt Crisis, 93 Filipinos out of the estimated 6,569 Filipin os in Egypt were repatriated through the timely operations of the Department of Foreign Affairs ( DFA) from 29 January to 16 February, 2011. On the Libyan Crisis, a total of 9,951 overseas Fi lipino workers (OFWs) were repatriated as of 28 June 2011 out of the estimated 29,823 Filipinos in Libya. The government provided necessary travel documents and immigration assistance, and h elped secure temporary visas, food, accommodation, transportation, and connecting flights of Filipinos in transit countries. The government also repatriated a total of 232 OFWs out of 1, 422 in Yemen. In response to the earthquake, tsunami, and reported nuclear leaks in Japan in M arch 2011, the government initiated mandatory repatriation of Filipinos living within the 50-ki lometer radius of the Fukushima Dai-ichi Nuclear Power Plant. The Philippine Embassy in Japan, thr ough close coordination with the host government, mobilized response teams within 48 hours after the 11 March 2011 earthquake to the affected regions, and conducted multiple deliveries of basic relief goods (water, canned goods, food items, gasoline, blankets, mattresses, etc.) to the affected cities. Of the 17,600 Filipino nationals living in Fukushima Prefecture, a total of 93 Filipinos were repatriated in April 2011. Five consular missions relocated 147 Filipinos t o Tokyo and housed them in four relocation centers. The consular missions also provided reli ef goods to those who did not wish to be relocated. The government also provided assistance to the 2,000-strong Filipino community i n Christchurch, New Zealand who were affected by the earthquake in February 2011 a nd provided assistance to the families of ten (10) Filipinos who died during the earthquake. The Philippine Embassy in New Zealand was able to deliver emergency supplies and relief goods s uch as watersterilizing tablets, canned goods, snack bars, biscuits and other foodstuffs. Th e team was able to coordinate with the families of the Filipino victims who were traveling to New Z ealand from the Philippines for their travel documents and arrangements. The team assisted the n ext-of-kin of missing persons during the identification of the victims and assisted them in th e repatriation of the remains. 5.1.4 HDMF assistance to displaced OFWs. To assist the large number of OFWs who have been displaced due to the natural calamities that occurred in Japan, New Zealand and the wave of

unrest happening across the Middle East and North Africa, the HDMF allowed them to avail of a six-month moratorium on payment of contributions and loans; and to withdraw thei r contributions even prior to maturity of their savings. 5.1.5 Launched the P2 Billion Reintegration Fund. On 06 December 2010, the Presi dent directed OWWA to allocate P1 billion to be utilized as a reintegration fund for a loan program with minimal interest. On 7 June 2011, the loan program was launched, with the D evelopment Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP) contrib uting P500 million each, thereby increasing the reintegration fund to P2 billion.

Specifically, the OFWs and their families may apply for a loan in any amount fro m P300,000 to P2 million without collateral, at an interest rate of 7.5% per annum to start an d support the development and operation of small enterprises when they return from their overs eas jobs. The loans for working capital or purchase of fixed assets are payable within seven ( 7) years inclusive of two (2) years grace period. OWWA Regional Offices and National Regional Center for OFWs (NRCO), in coordinat ion with the DTI and DA, have launched the conduct of entrepreneurial development tr aining for OFWs and their families who signified interest in setting up their own businesse s. 5.2 The government s 22-Point Labor and Employment Agenda aims to promote opportun ities to obtain decent and productive work while promoting industrial peace. In the same vein, the Labor and Employment Plan 2011-2016 promotes putting the human resource base at the core of all policy reform initiatives to achieve inclusive growth that massively creates jobs and continuously reduces poverty. 5.2.1 Designed the mechanics of the Community-Based Employment Program (CBEP). T he CBEP is a system that monitors temporary or immediate employment in government p rograms and projects of skilled, semi-skilled and low skilled workers. A total of 1,122, 852 jobs are projected to be generated from projects enrolled under CBEP for 2011 from 19 Gov ernment agencies, of which 706,231 (62.9%) are from the infrastructure and the rest from noninfrastructure components of the CBEP. As of May 2011, a total of 168,083 or 15% of the projected jobs for the year have been generated.[30] This figure is expected to increase significantly in the second half of 2011 because of the implementation of more C BEP-enrolled projects. 5.2.2 Implemented the Special Program for Employment of Students. From July 2010 to May 2011, some 97,619 poor but deserving students had the opportunity to earn under the Special Program for Employment of Students (SPES).[31] The law provides that DOLE pay 40 % of the prevailing minimum wage in the form of educational vouchers (checks) while the e mployers pay 60% of the minimum wage. On 1 May 2011, the President approved the increase of the SPES budget. From P172 .5 million under the 2011 General Appropriations Act (GAA), DOLE will get an additional P16 8.10 million that will benefit 52,000 more students or a total of 132,000 student ben eficiaries for 2011.

5.2.3 Enhanced Phil-JobNet with its integration with the Skills Registry System (SRS). The PhilJobNet, the on-line government portal for jobs and skills matching used by emplo yers and jobseekers nationwide, was enhanced to assist jobseekers in advertising their sk ills and qualifications via the SRS, which can be accessed by the employers anytime. A mo nthly average of 50,000 to 60,000 job vacancies is posted in the PhilJobNet. The Phil-JobNet i s used as a system or tool to address labor to market mismatch brought about by the asymmetr y of information in both the demand and supply sides of the labor market.

From July 2010 to May 2011, the Phil-JobNet registered a total of 2,392 employer s that posted 758,714 job vacancies while 213,782 jobseekers registered covering 1,417 skills available for the employers manpower requirements. The continuous accreditation and registration of employers and jobseekers ensure adequate and available supply of labor when needed. 5.2.4 Launched DOLE Online Career Guide. On 18 April 2011, the DOLE launched the Online Career Guide, its newest online labor market information service for high school students and jobseekers, to enable them to make informed decisions about their chosen careers . It features the in-demand jobs/careers viable in the next five to ten years and describes the ba sic education requirements of a job, skills and competencies, attributes and characteristics, salary/compensation, prospect for career advancement, employment opportunities a nd cost of education or training. A trainer s manual, Career Guide for High School Students, is already available in CD-ROM and printed copies. The online career guide is DOLE s initiative through its Bureau of Local Employmen t. It was developed as one of the interventions to respond to the issue on lack of career advocacy. The DOLE has likewise endorsed to the Department of Education (DepEd) the draft career guidance advocacy course, together with the corresponding draft issuances/guidel ines, which proposes the inclusion of mandatory career guidance and counseling to high schoo l students as part of the K to 12 curriculum improvement. Meanwhile, 1,175 seminar-orientations were conducted for parents and students un der the DOLE s Career Guidance and Employment Coaching program. This is in partnership wit h the 1,739-strong Career Guidance Counsellors Network. A total of 220,895 students in the tertiary level, tech-voc schools, and secondary institutions, along with parents, attende d the DOLE s career guidance and employment counseling sessions for the period July 2010 to M ay 2011. 5.2.5 Granted cost of living allowance (COLA) in four regions. The Regional Trip artite Wages and Productivity Boards (RTWPBs) in the following regions have issued Wage Order s: . NCR Wage Order No. 16, which granted a P22.00 COLA, effective 26 May 2011, bringing the daily compensation of non-agricultural workers in Metro Manila to P 426.00 per day. . Region VIII Wage Order No. 16, which integrated the P8.00 COLA under Wage Orde r No. 14 into the basic pay, effective 01 June 2011, and raising the minimum wage to P228. It also provided for an additional P15.00 COLA to be given in two tranches : P10 upon effectivity and P5 effective 01 September 2011. . Region VI Wage Order No. 19 on 25 May 2011, which granted a P12.00 emergency

COLA (ECOLA) for a period of three months. . Region III Wage Order No. 16, which granted a P14.00 COLA effective 24 June 20 11. It also provided for the integration of the P4.00 COLA (under WO-15) by 1 Januar y 2012.

5.2.6 Accelerated the resolution of labor cases with Project Speedy and Efficien t Disposition (SpeED) of Labor Justice. Item No. 6 of the President s 22-Point Platform and Poli cy Pronouncements on Labor and Employment directs reform in the labor arbitration a nd adjudication systems by streamlining procedures, removing red tape, and at the s ame time, restoring integrity and fairness in the system, and ensuring that 98% of all pen ding labor cases are disposed of with quality decisions by April of 2011. As of 10 May 2011, the DOLE disposed of 72,221 of 75,407 or 96% of cases pending as of September 2010. 5.2.7 Institutionalized the 30-Day Mandatory Conciliation-Mediation of all labor cases. The DOLE institutionalized the 30-day Mandatory Conciliation-Mediation of all labor cases at the regional and provincial offices effective October 2010. As of 30 May 2011, the D OLE settled 4,504 cases or 29.25% of 15,397 cases. 5.3 Pursuing Agrarian Reform and Rural Development 5.3.1. Out of the 10 million hectares of the country s arable lands, the Comprehen sive Agrarian Reform Program (CARP) covers 9.21 million hectares or 92%. DAR is responsible fo r the distribution of about 5.37 million hectares, while the balance of 3.84 million h ectares is under the DENR. The two agencies have distributed around 7.7 million hectares as of Decemb er 2010, for a combined accomplishment rate of 83.8%. From January to June 2010, only 18,635 hectares were distributed. In the first 1 0 months of the current Administration, 108,989 hectares of agricultural lands were distributed. 5.3.2. The DA, DAR and the DENR, through their joint National Convergence Initia tive for Sustainable Rural Development, are currently implementing the establishment of t he Local Agro-Enterprise Cluster in 10 provinces, namely: Antique, Iloilo, Isabela, Camar ines Sur, Sorsogon, Leyte, Quezon, Northern Samar, Misamis Oriental, and Lanao del Norte, by adopting the .ridge-to-reef. approach a sustainable ecosystem-based enterprise planning a nd management. The Local Agro-Enterprise Cluster is targeting the development of 253,084 hectar es of land involving agricultural productivity zones and environmental protection from 2011 to 2016. Among the crops to be developed are food staples (i.e., rice, corn banana, cassa va, livestock) and industrial crops with market demand (i.e., sugarcane, abaca, coconut, forest tre ss and non-timber species), to be supported with production inputs, appropriate infrastructure, ca pability building and credit foundation, post-harvest processing and marketing and distribution fa cilities, and rehabilitation of forest lands through the National Greening Program.

D. SECURITY, JUSTICE, AND PEACE The government is committed to the pursuit of an honest dialogue to achieve a br oadly supported just peace that is guided by the vision .Tuwid na Daan.. This is a turnaround fr om the disjointed, short-sighted policy of merely reacting to events and incidents. Thu s, from merely

defeating the enemy, government has shifted its focus to actually winning the pe ace in the whole archipelago. Government efforts have been focused on ensuring the attainment of a just, comprehensive, and lasting peace one that brings conflict resolution back to the negotiating table and invests in responsive social programs that will address the root cause s of conflict. The government recognizes the necessity of a whole nation approach, where securi ty and peace and order shall be preserved through the efforts of all government agencies, civ il society, and the public. National sovereignty and the general public safety shall be preserved an d the rule of law consciously upheld. 1. Protecting our National Territory and Boundaries 1.1. Pursued AFP reforms and modernization. The government continues to pursue r eforms and modernization in the AFP, as well as promote the morale and welfare of the Armed Forces. 1.1.1. Since the assumption to office of President Aquino, nine (9) projects und er the AFP Modernization Program (AFPMP) have been delivered and completed. These include f ive (5) requisition projects for the Philippine Army, namely: two (2) Night Fighting Sys tem (NFS) projects, Watercraft (Light Support), 1 ton Troop Carrier/Cargo Trucks and 2 ton T roop Carrier/Cargo Trucks. On the other hand, Philippine Navy has four (4) projects, namely: 76mm Ammunition, Completion of Coast Watch Stations, NFS and Hydrographic Equipment. 1.1.2. A Joint Maritime Force (Sea-Air) is being restructured to carry out missi ons in the West Philippines Sea to protect vital resources and sea exploration activities. At th e same time, initiatives are being made to revive the Air Defense Organization focused on the airspace of priority areas in western Philippines. 1.1.3. On 05 April 2011, the Government acquired the US Coast Guard Cutter (USCG C) Hamilton. The acquisition is part of the efforts of the DND and AFP to develop t he Philippines naval, air, and ground interdiction assets in order to assure the territorial in tegrity and protection of Philippine waters and resources, particularly in light of energy exploration efforts in Sulu and Palawan. Also, the Philippine Navy has completed Coast Watch Stations in Taganak and Bongao, Tawi-Tawi. 1.2. Pursued counter-insurgency efforts. Through the Internal Peace and Security Plan or Oplan Bayanihan, the AFP has been able to achieve milestones in reducing the strength of insurgency groups, bringing down the number of communist-affected barangays, decreasing vio lent activities initiated by threat groups, and promoting human rights. There was a significant decrease in the number of NPA-initiated incidents in vie w of the ongoing peace process with the CPP/NPA/NDF. For the first semester of 2011, 182 in

cidents were recorded, a decrease of 17% from last year s first semester record of 218 CPP/NPA/ NDF incidents. The number of MILF-initiated incidents also decreased from 97 attacks in the fir st semester last year to 42 in the first semester of 2011.

On the Abu Sayyaf Group (ASG), while there was a sharp increase in the number of ASGinitiated violent attacks from 17 atrocities in the first semester of 2010 to 43 in the first semester of 2011, the number of ASG elements neutralized increased from 32 in the first s emester of 2010 to 58 in the same period in 2011.[32] 2. Attaining a Just and Lasting Peace 2.1. Initiated peace negotiations and completion of peace talks with rebel group s. The Aquino Administration recognizes that a purely military solution will not adequately ad dress the issues on insurgency; thus, the government is pursuing lasting peace by bringing the re solution of conflict back to the negotiating table. 2.1.1. The Peace Negotiating Panels of the Government of the Philippines (GPH) a nd the MILF formally resumed peace talks in 2011. During the 21st round of Exploratory Talks held on 27 to 28 April 2011 in Kuala Lumpur, Malaysia, the GPH Panel affirmed its commitment t o the agreement on security and immunity guarantees, which covers the members of the M ILF Central Committee. 2.1.2. Formal negotiations between the GPH and the CPP/NPA/NDF have also resumed in a round of talks in Oslo from 15 to 21 February 2011 after an impasse of seven (7) years. The Panels agreed to an accelerated timeframe to complete the remaining substantive agenda on socio-economic reforms (SER); political and constitutional reforms (PCR); and en d of hostilities and disposition of forces (EOH/DOF), in the next 18 months or a maximum of three (3) years. 2.1.3. The GPH, Moro National Liberation Front (MNLF), and the Organization of I slamic Conference (OIC) conducted the 4th Session of their Tripartite Meeting on 22 to 23 February 2011 in Jeddah, Saudi Arabia. The GPH and the MNLF jointly expressed that they l ook forward to the early adoption of the drafted Amendatory Bill for RA 9054 (the law which created the ARMM), within the context of reviewing the progress and continuing the discussio n towards the full implementation of the GPH-MNLF 1996 Final Peace Agreement (FPA). 2.1.4. On 04 July 2011, the President witnessed the signing of a MOA between the Philippine Government and the Cordillera Bodong Administration-Cordillera Peoples Liberatio n Army (CBA-CPLA), which signals the beginning of a closure process to the 25-year Mt. Data Peace Agreement, signed in 1986. The MOA embodies and builds upon the ideals and aspir ations of the Cordillera people for peace and development in the spirit of the Peace Agree ment. It also lays down the components that will lead to the final disposition of arms and forces o f the CBA-CPLA and their transformation from an armed group into an unarmed potent socio-econom ic force in

the region. 2.2. Initiated efforts to address the root causes of conflict. The government is implementing the Payapa at Masaganang Pamayanan (PAMANA) Program as the peace and development framework to respond to the root causes of conflict. It aims to reduce poverty i n conflict affected areas through community infrastructure and focused delivery of social services, improved governance through transparency and accountability, and building the capacities of communities.

PAMANA will cover closure agreement areas, CPP/NPA/NDF areas, and Muslim insurge ncy fronts, and it will be implemented along the five (5) conflict lines (i.e., CBA/ CPLA, Rebolusyonaryong Partidong Manggagawa ng Pilipinas-Revolutionary Proletarian Arm y-Alex Boncayao Brigade or RPMP/RPA/ABB, CPP/NPA/NDF, MNLF, and MILF). 2.3. Ensuring Peaceful and Safe Communities 2.3.1 For 2010, the PNP was allocated with 10,000 new/additional vacancies for P olice Officers 1 (PO1), wherein a total of 9,503 police recruits were appointed and sworn into office. Also, 2,983 out of the 3,000 vacant positions due to attrition were filled in. These i ncreased the personnel strength of the PNP from 132,393 in 2009 to 141,547 in June 2011. The PNP is allocated another 3,000 new positions under the GAA for 2011. 2.3.2 From July to December 2010, there was a reduction in the total crime incid ents by 64.86% or 99,676 crime incidents, from 253,333 in the 2nd semester of 2009 to 153,657 i n the same period of 2010. Also, crime incidents decreased by 22.68%, from 141,063 incident s in the period 1 January to 31 May 2010 to 109,065 incidents in the same period of 2011. 2.3.3 Crime solution efficiency (CSE) rate[33] has increased by 8.56 percentage points, from 13.01% in the 2nd semester of 2009 to 21.57% in the same period of 2010. Likewis e, crime clearance efficiency (CCE) rate[34] increased by 7.02 percentage points, from 25 .33% in the 2nd semester of 2009 to 32.35% in the same period of 2010. There was also a 10.15 pe rcentage point increase in the CSE rate from 16.43% in 1 January to 31 May 2010 to 26.58% in th e same period of 2011. Similarly, the CCE rate increased by 10.29 percentage points from 27.97 % in 1 January to 31 May 2010 to 38.26% in the same period of 2011. 2.3.4 The PNP has heightened its anti-carnapping campaign with the neutralizatio n and arrest of carnapping groups. Carnapping incidents decreased by 54.46%, from 1,010 incident s in the period 1 January to 30 June 2010 to 460 incidents in the same period of 2011. Th ere was also an improvement in the recovery rate, from 17.62% in the period 1 January to 30 June 2010 (178 recovered of the 1,010 incidents) to 75.43% in the same period of 2011 (347 reco vered vehicles of the 460 incidents). Under the current administration, the PNP was able to neu tralize the Dominguez Carnapping Group, arrest the leaders of the Madrigal Carnapping Group, Bonifacio Carnapping Group, Herrera Carjacking Group, and the Bundol Robbery Gang. 2.3.5 Intensified efforts against illegal recruitment and trafficking-in-persons . The PNP has heightened its monitoring and build-up of cases of reported illegal recruitment and trafficking-inpersons activities perpetrated by organized syndicates to ensure the latter s conv iction. The PNP, together with the NBI and the DSWD, rescued 268 women, includin g 20 minors who were victims of trafficking-in-persons, in simultaneous raids conduct ed in Angeles City on 17 September 2010. The drive also resulted in the arrest and filing of c harges against 39 persons for violation of RA 9208 or the Anti-Trafficking in Persons Act of 2003. Per the DOJ, from the enactment of RA 9208 on 26 May 2003 to the first s emester of 2010, or a period of seven (7) years, there have only been 26 convictions involv ing 29 persons in

cases related to trafficking-in-persons. On the other hand, the Aquino Administr ation achieved a total of 26 convictions, with 31 persons convicted in just 12 months or as of 19 July 2011. On 13 May 2011, the DOJ found 20 employees of the Bureau of Immigration assigned at the Diosdado Macapagal International Airport guilty of Grave Misconduct, Conduct Prejudicial to the Best Interest of the Service, Dishonesty and Gross Neglect of Duty, and d ismissed them from service. In the United States Department of State s 2011 Trafficking in Persons (TI P) Report, the Philippines has been upgraded to Tier 2 from Tier 2 Watch List in 2010. Among ASEAN countries, the Philippines shares the Tier 2 ranking with Cambodia, Indonesia, Laos, and Singapore. On the Tier 2 Watch List are Brunei, Malaysia, Thailand, an d Vietnam; while Myanmar is in Tier 3. The U.S. Department of State classifies each country in the TIP Report into one of the three (3) tiers as mandated by the US Trafficking Victims Protection Act (TVPA) of 2000 an d based on the extent of government action to combat trafficking. Tier 1 includes countries meeting the minimum standards for the elimination of s evere forms of trafficking; Tier 2 include countries not fully complying with the minimum stand ards but making significant efforts to meet said standards; Tier 2 Watch List is same as Tier 2 with the following qualifiers: the absolute number of victims of trafficking is significant or is s ignificantly increasing; there is a failure to provide evidence of increasing anti-traffickin g efforts; or the determination that a country is making efforts to comply with the minimum standa rds was based on commitments by the country to take additional steps in the next year; and Tie r 3 indicates countries assessed as neither complying with the minimum standards nor making si gnificant efforts to do so. Under the TVPA, any country ranked under Tier 2 Watch List for two (2) consecuti ve years shall be downgraded to Tier 3 on the third year, unless their ranking improves or the US President waives application of this provision. Classification as a Tier 3 country will have a negative impact on the Philippine s as it has been agreed with the Millennium Challenge Corporation that they may terminate their U .S.$434 million Compact with the country if it is downgraded to Tier 3.[35] Moreover, th e US has committed that they will not provide Foreign Military Assistance, non-humanitari an, and nontrade-related foreign assistance to Tier 3 countries until the latter complies w ith minimum standards or make significant efforts to do so. Since 2001, the Philippines has been categorized as a Tier 2 country in the annu

al TIP Report. The country was ranked under Tier 2 Watch List for two (2) consecutive years in 2004 and 2005, and again in 2009 and 2010. In addition, the US Department of State also cited Assistant City Prosec utor in Zamboanga City, Ms. Darlene Pajarito, as one of the State Department s Ten (10) Tr afficking in

Persons Heroes for handling the biggest number of successful prosecutions of TIP cases in the country. After joining the DOJ in 2004, Ms. Pajarito secured the Philippines firs t sex trafficking conviction in 2005 and the first labor trafficking conviction in 2011. 2.3.6 Intensified the campaign against illegal drugs. There was an increase of 4 3.29% in the illegal drug-related cases filed by the Philippine Drug Enforcement Agency (PDEA ), from 3,391 in the second semester of 2009 to 4,859 in the same period in 2010. Also, the nu mber of personalities arrested due to drug-related cases increased by 21.33% from 4,125 in the second semester of 2009 to 5,005 in the same period in 2010. Other major accomplishment s of the PDEA from 01 July 2010 to 31 May 2011 are the following: Dismantled six (6) clandestine laboratories (clan lab), which led to the disruption of the local manufacture of shabu and operations of drug syndicates, as well as three ( 3) shabu tiangges composed of 10 clustered drug dens and 19 independent drug dens; Cleared a total of 130 marijuana plantation sites resulting in the destr uction of fullygrown marijuana plants, seedlings and seeds; Neutralized a total of 155 drug groups and personalities while 9,522 per sons were arrested, 795 of whom are drug personalities in the watch list and target list; Arrested a total of 21 members of the African Drug Syndicate, rescuing t hree (3) Filipino drug couriers. 2.3.7 Reduced loose firearms The PNP is implementing Letter of Instructions 64/2010 .Kontra Boga-Bravo,. the PNP s intensified campaign to reduce loose firearms especially those in the hands of P rivate Armed Groups (PAGs). From 1 January to 15 June 2011, 1,108 firearms were confiscated. 2.3.8 Provided humanitarian assistance to internally-displaced persons. The DSWD is providing humanitarian assistance to Internally Displaced Persons (IDPs) through the imple mentation of the following programs and services: Relief .Pabaon. Package, Cash-for-Work (CFW ), Emergency Shelter Assistance, Modified Shelter Assistance, Livelihood Assistance , construction of water projects and/or wells, construction of Day Care Centers (DCCs), constru ction of temporary shelters, and construction of communal toilets, among others. The DSWD has provided P427 million worth of assistance to the IDPs in Mindanao from August 20 08 to December 2010. The 2011 DSWD budget provided P881 million for the Food for Work Program for IDP s. 3. Strengthening the Rule of Law Strengthened the Witness Protection Program (WPP). To break the culture of fear and silence, which affects the immediate delivery of justice in our society, the budget of th e Witness

Protection Program was increased to P151 million (8.6% increase from the 2010 le vel of P139

million) in the 2011 budget. This budget is projected to protect a total of 640 witnesses and whistle-blowers. Since the institution of the WPP in 1991 up to 30 June 2010, the program has cov ered 447 witnesses. An additional 155 new witnesses were admitted to the program from 01 July 2010 to 15 June 2011. This brings the total to 602, reflecting the people s trust and conf idence in the primary witness protection unit of the country. Notably, 25.75% of the total num ber of covered witnesses was admitted in the last 11 months. The conviction rate for cases with covered witnesses is presently at the near-pe rfect level of 92.85%. This rate was sustained since it was first reported during the President s first SONA. The rate is 3.7 times higher than the national conviction rate, which has been m aintained at 25% since 2009. This shows the significant contribution of the program to the succes sful prosecution of offenders. 4. Advancing and Protecting Human Rights 4.1. Addressed Extrajudicial Killings 4.1.1. On 10 December 2010, the DOJ created a Special Task Force on Extrajudicia l Killings and Enforced Disappearances. The Special Task Force is mandated to review all report ed and unresolved cases of extrajudicial killings (EJKs)[36] and enforced disappearance s (EDs) and recommend measures for and cause the effective and expeditious investigation and prosecution of the said cases. It is also mandated to speed up the prosecution and resolutio n of cases with sufficient evidence and cause the re-opening of investigations of .cold file. ca ses. Since its creation, the DOJ Special Task Force on EJKs and EDs has reviewed 187 cases of alleged EJKs. It currently supervises the handling of 69 cases of extrajudicial killings, 63 of which have already been filed or are currently pending in court. Six (6) are und ergoing preliminary investigation. A total of 27 incidents of possible political killings were reported in the last 12 months, though only ten (10) are confirmed political or media killings. Of these ten (10), five (5) are already undergoing trial. 4.1.2. The PNP s Task Force Usig (TFU), which is tasked to handle and review cases of alleged EJKs perpetrated since 2001 currently handles 162 extrajudicial cases, 102 of wh ich had already been filed in court, 59 others are undergoing investigation and one (1) case alr eady considered closed. 4.1.3. From 01 July 2010 to 31 May 2011, there were a total of 15 cases of EJKs. Of this number, cases have been filed against the perpetrators of eight (8) incidents of EJKs while seven

(7) EJK incidents are still under investigation by the Task Force. Also, the PNP distributed a Handbook on Personal Security Measures for media practitioners to help guide the m in protecting themselves against personal threats and danger.

4.1.4. Among the PNP s significant accomplishments involve the filing of cases in court for the murder of the following: Fernando Baldomero (a coordinator for Bayan Muna); Mark Francisco (a teacher at San Isidro Elementary School in Palanas, Masbate and member of the Alliance of Concerned Teachers [ACT]); Jose Daguio (a radio commentator for Radyo Natin-Tabu k); Edilberto Cruz (the publisher-editor of Salida, a Nueva Ecija community paper); Josephine Estacio (a teacher at Tenejero Elementary School in Balangan, Bataan and member of ACT); Miguel Belen (a radio commentator for dwEB-FM) and Pascual Guevarra (head of the Agrarian Reform Beneficiaries Association and the Alyansa ng mga Magbubukid na Nagkakaisa or Almana 3100). The TFU has solved 85% of all work-related cases involving media p ractitioners and continues to undertake greater efforts to resolve the remaining cases. 4.2. Prosecuted the Perpetrators of the Maguindanao Massacre 4.2.1 The Government is pursuing the delivery of justice for the victims of the Maguindanao Massacre. The PNP created and institutionalized the Special Investigation Task G roup (SITG)Maguindanao, which is tasked to handle and review cases on the incident; however , its investigation is being handled by the NBI. As of 10 June 2011, out of the total 196[37] accused in the Maguindanao Multiple Murder Case, 91 or 46.67% have been arrested, of whi ch 59 have been arraigned. The Prosecution has already presented 31 witnesses. 4.2.2 The Prosecution has already moved for the arraignment of all other detaine d accused who have yet to be arraigned. On 4 November 2010, the prosecution filed the Motion t o Arraign all accused. On 1 June 2011, accused Andal Ampatuan, Sr. was arraigned. 4.3. Decongesting the New Bilibid Prison The inmates of the NBP, particularly those in the Maximum and Minimum Security C ompounds are suffering from a very depressing situation, as each of them has only 24 squa re feet to live in.[38] To address this problem, the DOJ pursued the immediate re-distribution o f the NBP inmates to existing facilities in the other penal farms. Thus, the Secretary of Justice ordered the transfer of 650 male inmates from the NBP and 50 female inmates from the Correct ional Institute for Women (CIW) to four (4) penal farms in Mindanao and the Visayas. 4.4. Promoted a Code of Conduct in Security Operations As part of the Government s effort to institutionalize Human Rights Concepts in it s over-all security operations, the AFP launched its Human Rights/International Humanitaria n Law (IHL) Handbook early this year. The Handbook serves as the soldiers bible in the conduc t of operations. This contributed to the decrease in the number of AFP HR violations, from 21 cases

reported in 2010 to only one (1) allegation reported this year. The said HR viol ation is now being investigated at the provincial Prosecutor s Office in Bicol and at the Provost Mar shall Office while on-going investigations are also being conducted in light of the previous HR violations. 5. Harnessing International Goodwill Through Diplomacy and Promoting Philippine Interests Abroad

5.1 Since July 2010, the President participated in four major meetings of world leaders, the 65th Session of the United Nations General Assembly, 17th and 18th Association of Sou theast Asian Nations (ASEAN) Summits, and the 18th Asia Pacific Economic Cooperation (APEC) E conomic Leaders Meeting to reaffirm the Philippines commitment to global efforts towards e conomic growth, peace and security and development. The APEC is currently working on rea lizing its New Growth Strategy, which is in line with the President s inclusive growth approa ch to governance. The World Bank has commended the President s commitment to improve the investment climate through the rationalization of the Philippines regulatory syst em and mobilization of the private sector for infrastructure development. The President also met with the Heads of State and Government of ASEAN neighbour s Malaysia, Singapore, Thailand, Brunei, and partners in the Asia-Pacific such as the United States, Japan, South Korea, Canada, Australia, and New Zealand to further streng then bilateral relations. The President also went on State Visits to Vietnam, Singapore, Indone sia, Thailand, and Brunei. 5.2 The Philippines re-election for a second three-year term to the United Nation s Human Rights Council in May 2011 is a clear indication of the international community s recognition of the country s strong commitment to the promotion and protection of human rights. T he Philippines continues its strong advocacy on human rights in various internation al and regional fora. 5.3 The election of the Philippine COA as External Auditor of the World Health O rganization in May 2011 is also a manifestation of the international community s acknowledgement that the Philippines is a staunch champion of good governance. The Philippines is likewis e the External Auditor of the Food and Agriculture Organization. The Philippines, as country co ordinator for ASEAN-US relations, led the successful negotiations on the 2nd ASEAN-US Leaders Meeting Joint Statement that brings the ASEAN and the US to a new era of revitalized rel ations and welcomes the establishment of the ASEAN-US Eminent Persons Group (EPG). 5.4 The Philippines engaged the ASEAN Member States, China and other relevant pa rties in the West Philippine Sea issue. In this connection, the government underscored that t he maintenance of peace and stability in the West Philippine Sea is of paramount concern to the Philippines and that the full implementation of the ASEAN-China Declaration on the Code of Condu ct on the West Philippine Sea is imperative. The Philippines is committed to the peaceful, multilateral, and rules-based reso

lution of dispute in the West Philippine Sea in accordance with international law, specifically th e UN Convention on the Law of the Seas (UNCLOS). In this context, the Philippines offered a spec ific framework to effectively carry out cooperation and, in the process, effectively implement the Declaration on the Code of Conduct. This framework is called ZoPFF/C or the Zone of Peace, Free dom, Friendship and Cooperation, which seeks to achieve its vision by segregating fir st the disputed relevant features of the Spratlys from the undisputed waters of the West Philipp ine Sea in accordance with the UNCLOS. After which, claimant countries would then be enable d to engage in joint cooperation including joint development or establishment of a Marine Pe ace Park in the disputed relevant features of the Spratlys.

However, if other claimant states are unable to accept this win-win approach, th e DFA is also exploring the possibility of bringing the matter of the West Philippine Sea with in the dispute settlement mechanisms of the UNCLOS. These actions are being undertaken to protect the Philippines strategic economic and political interests in the area and demonstrate adherence to international law. E. CLIMATE CHANGE ADAPTATION AND MITIGATION Environmental protection is a key plank in our nation s development. Being a minor emitter of greenhouse gases in the world, the Philippines main concern is adapting to climat e change by identifying risk areas; practicing responsive disaster risk management planning; improving weather forecasting and information relay; creating awareness on fire prevention ; and rehabilitating flood control facilities. 1. Ensuring the Utilization of Natural Resources for the Equal Benefit of Presen t and Future Generations 1.1. Promoting the National Greening Program. EO 26, s. 2011 was issued, establi shing the National Greening Program (NGP) as a national priority program. On 13 May 2011, the DENR launched the program considered to be the biggest reforestation program in the h istory of the Philippines. 1.1.1. Under the program, 1.5 billion trees will be planted in 1.5 million hecta res nationwide from 2011 to 2016 for environmental protection and agro-forestry purposes. Secon dary and collegiate students will plant at least 10 seedlings each annually. 1.1.2. For 2011, the target is to produce 50 million seedlings of premium, indig enous, fastgrowing, and other forest species and fruit trees, including bamboo in 100,000 h ectares. The DBM has already released to the DENR a budget of P1.3 billion to fund the im plementation of the NGP for 2011. 1.2. Protecting and Conserving the Forest through a Total Log Ban. EO No. 23, s. 2011 was issued to impose a moratorium on the cutting and harvesting of timber in the nat ural and residual forests. It suspended the operations of existing logging operators and the accep tance and processing of new and renewal applications on logging operations and wood proces sing. This translates to the protection of the remaining forest cover and allows the natura l regeneration of residual forests and development of plantation forests. 1.2.1. A National Anti-Illegal Logging Task Force (NAILTF) composed of the DENR as Chair, the DILG, DND, PNP, and AFP as members, was created to lead the anti-illegal log ging campaign pursuant to EO 23. The NAILTF conducted intensive Anti-Illegal Logging Campaign in identified illegal logging hotspot areas, e.g., Apayao, Isabela, Aurora, Quez

on, Surigao Del Sur, and Compostela Valley. Among the results of the anti-illegal logging campai gn are the

closure of 215 wood processing plants/sash factories in Regions 4-A, 10, 11 and CARAGA and suspension of operations of 14 others in CARAGA. 1.2.2. The government confiscated 7.6 million board feet (bd. ft.) of logs and l umber (equivalent to 1,194 ten-wheeler truckloads) valued at P227.9 million. Upon completion of th e adjudication proceedings, the confiscated logs were donated to DepEd for chairs and other sch ool requirements. Initially, about 1.28 million bd. ft. of wood products were donate d to the DepEd, which were used in the production/construction of 5,265 armchairs, 124 school de sks, 37 tables, and 46 cabinets and repair/renovation of 89 school buildings. 1.3. Ensuring Safe and Sustainable Mining. The government has started cleansing the pending and inactive mining applications under the .use it or lose it. policy. To date, a total of 1,463 mining applications (67% of the total target of 2,180 applications for final act ion nationwide) have been acted upon. Of these, 1,149 mining applications have been denied and o nly 314 were endorsed for approval. Because of the 1,149 mining applications denied, which co ver 3.1 million hectares, additional mining areas were opened for new and serious investors. The acceptance and processing of new mining applications were suspended through DENR Memorandum Ord er 2011-01 to rationalize mining development only for serious and responsible inves tors. 1.4. Promoting Renewable Energy. To intensify the use of renewable energy resour ces, the DOE initiated the following: 1.4.1 Launched the National Renewable Energy Program (NREP) on 14 June 2011. The NREP is a 20-year roadmap to fully develop the country s indigenous renewable sources and further reduce dependence on imported fuels. The NREP is expected to spur investments fr om the private sector. 1.4.2 Awarded eight (8) Biomass Renewable Energy Operating Contracts, which will provide an additional 75.85 MW of power plant capacity from biomass resources. 1.4.3 Awarded four (4) Certificates of Registration for Own-Use, which will inst all an additional 24.2 MW of power plant capacity for own-use from biomass resources. 1.4.4 Issued provisional Permit to Energy World Corporation Limited to put up a Liquefied Natural Gas (LNG) hub, which will increase the country s natural gas supply by 260 ,000 cubic meters. 1.4.5 Intensified the campaign for the use of clean, alternative energy fuels. W ith the implementation of the Biofuels Act of 2006, the government has converted 18,731 taxis to autoLPG and has put 217 auto-LPG refuelling stations and 31 auto-LPG conversion shop s. 1.4.6 Teamed up with the ADB to establish the National Electric Vehicle Strategy (NEVS) to

promote the use of alternative fuel vehicles. Recently, Mandaluyong received 20 electric tricycles (e-tricycles) for testing and demonstration. The ADB has committed $50 0 million to support the DOE s e-tricycle project.

1.5. Improving Air Quality 1.5.1. Implemented higher standards for vehicle emissions. The DENR issued Depar tment Administrative Order (DAO) No. 2010-23, entitled .Revised Emission Standards for Motor Vehicles Equipped with Compression-Ignition and Spark-Ignition Engines. and DAO 2010-24 or the .Revised Emission Limits/Standards for Motorcycles/Tricycles and Mopeds.. With these two administrative orders, a total of 5,198 vehicles were apprehended from July 2010 to March 2011 in NCR alone. 1.5.2. Strengthened enforcement of air quality standards. In partnership with th e Earth Day Network Philippines, the Aquino administration implemented a campaign to make ED SA a .Linis Hangin. zone. This is done through a coordinated enforcement effort to re move smoke belchers and provide compliance assistance for vehicle owners and drivers. Also included in the program is a pollution reporting system or the .Text Usok Program. in which pict ures can be taken of a smoke belcher and sent to the DENR and LTO as evidence. The vehicle c an then be traced for testing and apprehension. The DENR, LTO, MMDA and other agencies work ed together to formulate measures to reduce traffic and ensure compliance with emis sion testing to reduce vehicular emissions. 1.5.3. All the above efforts contributed to the reduction of the Total Suspended Particulate (TSP) or the amount of dust particles in the air. Particularly in Metro Manila, the TS P was reduced by 20% in the first six months of the Aquino Administration, from 166 micrograms pe r normal cubic meter (ug/Ncm) in the 1st semester of 2010 to 133 ug/Ncm in the 2nd semest er of 2010. It was further reduced by 9% to 121 ug/Ncm as of April 2011. The country is working to achieve the global standard TSP level of 90 micrograms per ug/Ncm. 1.6. Safeguarding Water Resources to provide Clean Water 1.6.1. Initiated the cleaning up of the esteros through the .Adopt-An-Estero Pro gram,. a publicprivate partnership on the clean-up of esteros and polluted rivers nationwide. T he government has forged MOAs with 182 companies and other stakeholders nationwide to clean es teros. The government targets to clean ten (10) esteros per region within the year. 1.6.2. Rehabilitated major priority rivers commencing with the cleaning up of th e MarilaoMeycauayan-Obando (MMO) River System, considered one of the dirtiest in the worl d. 1.6.3. Water quality improvements were seen in eight (8) out of 19 major rivers in the country by 30.8% from 25.7 milligrams/liter in the 1st half of 2010 to 18 milligrams/liter in the 2nd half of 2010. These rivers are the Meycauayan River, Marilao River, Bocaue River, Calapa n River,

Anayan River, Iloilo River, Balilili River, and Luyang River. The amount of 18 m g/l is the average reduction of Biological Oxygen Demand (BOD) level of the priority rivers from 2009 to 2010.[39] 1.7. Reducing Solid Waste through sound Solid Waste Management

1.7.1. The government diverted 33.94% of the 8,841,478.80 cubic meters of solid waste from waste disposal facilities in Metro Manila through re-use, recycling and composti ng activities and other resource recovery activities. This surpasses the target diversion rate of 25% mandated by RA 9003 or the .Ecological Solid Waste Management Act of 2000.. 1.7.2. The government signed MOAs with eleven (11) Metro Manila LGUs for the est ablishment of appropriate ecological solid waste management systems for homeowners associat ions of subdivisions and condominiums. Initially, a total of 4,717 Homeowners Associatio ns (HOAs) in Metro Manila have been identified for assistance. 1.7.3. In Metro Manila, two (2) sanitary landfills and 935 Materials Recovery Fa cilities (MRFs) were utilized. To date, only 7,680 out of 42,000 barangays nationwide have MRFs or a compliance rate of 18.28%. In Metro Manila, 685 out of 897 barangays are covered by MRFs or 76% compliance. 1.7.4. Required the Philippine Plastic Industry Association, which is composed o f 176 manufacturers and 36 suppliers, to develop a program for the retrieval, collecti on and recycling of plastics, to save resources and avoid harming the environment. 2. Undertaking all other Measures Necessary to Prepare For and Manage Risk 2.1 Pursued geohazard assessment and mapping. The Hazard Mapping and Assessment for Effective Community-Based Disaster Risk Management (READY) Project addresses the concerns on disaster risk management (DRM) at the local level. It empowers the m ost vulnerable provinces and communities in the country by enabling them to prepare disaster ri sk management plans. Under the project, the following were accomplished: 2.1.1. The government has completed the geohazard assessment and mapping of the entire country with a scale of 1:50,000[40]. It covers 1,643 cities and municipalities. 2.1.2. Geohazard maps[41] were posted in the website of the Mines and Geoscience s Bureau to make geohazard information more accessible to public users. A total of 65,000 ge ohazard maps were provided to LGUs, national and local disaster management agencies, and othe r stakeholders. Advisories to barangays in areas that are likely to be seriously a ffected by landslides and flooding were re-issued. 2.1.3. Multi-hazard maps[42] of 18 out of the 66 hazard-prone provinces in the c ountry were also produced. As of April 2011, a total of 102 multi-hazard maps in a 1:50,000 scale and 17 in a 1:10,000 scale have been completed. Six (6) of these were completed in July 2010 . Through these maps, areas prone to floods, landslides, and other geo-hazards have been i

dentified, enabling local government units to better prepare themselves in responding to an d mitigating the effects of national calamities and other hazards. 2.1.4. The government also initiated the detailed mapping of 30 cities and munic ipalities in areas critical to landslides and flooding at a scale of 1:10,000.

2.2 Improved weather forecasting. The President mandated the DOST and PAGASA to improve its typhoon tracking and weather forecasting systems. The following were accompl ished: 2.2.1 Implemented hourly weather forecasts and timely reports on significant wea ther activities through locally-developed and upgraded forecasting tools: Automated Weather Stat ions (AWS)[43], rain gauges, flood monitoring and warning systems, Doppler radars, an d weather buoys for maritime lanes. 2.2.2 In July 2010, Metro Manila was hit by Typhoon Basyang, without any warning from PAGASA. During that time, the country would get weather updates every 6 hours. T hereafter, the government instituted the provision of hourly updates on the latitude and lo ngitude positions of Tropical Cyclones and distance to the nearest community during severe weather conditions, on top of the usual regular reports issued every 6 hours during normal weather s ituations. The hourly reports enhanced public preparedness and provided the citizens with timel y and accurate weather forecasts during times of extreme weather conditions, thereby increasing protection of life, property and livelihood. 2.2.3 Acquired Forecasters Workstations to help forecasters and users display, sc reen, combine multiple windows, animate, overlay, and manipulate available weather data for be tter weather tracking. 2.2.4 In light of the recent earthquake that triggered the nuclear mishap in Jap an, the DOSTPhilippines Nuclear Research Institute (PNRI) was also able to provide correct i nformation and awareness about the implications of the nuclear leak to the Philippines. 2.2.5 The DOST plans to locally-develop more forecasting tools such as the meteo rological buoy, shaker table, landslide sensors, and 3D mapping device as well as enhance the technical capability of the forecasters. 2.3 Provided Assistance to Disaster Victims. The government, through the combine d efforts and resources of the DSWD, DOH, LGUs, other government agencies and internationa l NGOs, provided assistance amounting to P178.93 million to disaster victims from July 2 010 to April 2011. Also, a total of 60,449 families or 272,158 individuals were evacuated to 1,097 evacuation centers all over the country. F. LEGISLATIVE-EXECUTIVE PARTNERSHIP The Executive Branch has forged a close partnership with Congress in working on the passage of legislative measures that are crucial to the realization of the President s nation al development goals. 1. Making GOCCs more accountable. On 6 June 2011, President Aquino signed the GO

CC Governance Act of 2011, which aims to promote financial viability and fiscal dis cipline in the GOCCs. The Act also establishes the Government Commission for GOCCs, an agency t hat will ensure the efficient use of GOCC assets for the full benefit of the national gov ernment and the Filipino people. The GOCC law also empowers the executive to reorganize the stat e corporate

sector towards a system that would maximize the potential of all assets. Prior t o this, the President issued EO No. 7, series of 2010 and EO 24, series of 2011 to rationali ze the classification and position system of GOCCs. 2. Strengthening democratic institutions in the ARMM. On 30 June 2011, the Presi dent signed RA 10153 synchronizing the ARMM elections with the national and local elections in 2013. The synchronization of elections is expected to result in a clearer mandate and help do away with command votes that do not reflect the true will of the electorate. It will also provide an opportunity to enhance and strengthen the capacities of interim officials to car ry out reforms in the ARMM bureaucracy. 3. Extending lifeline electricity rates for poor consumers. Congress and the Exe cutive Branch worked together to ensure that low-income and marginalized electricity consumers would continue to enjoy subsidized electricity rates for the next 10 years. On 07 June 2011, the Senate and the House of Representatives (HOR) approved the extension of the lifeline ra te subsidy by an additional 10 years through Senate Bill (SB) No. 2846, or .An Act Extending t he Implementation of the Lifeline Rate, Amending for the Purpose Section 73 of RA N o. 9136, Otherwise Known as the Electric Power Industry Reform Act (EPIRA) of 2001..[44] The President signed RA No. 10150 on 21 June 2011. The amended law benefits an estim ated 4.53 million lifeline customers. 4. Extending the Joint Congressional Power Commission. Together with the passage of the Electric Power Industry Reform Act of 2011 (EPIRA), Congress created the Joint C ongressional Power Commission (JCPC) to set the overall framework to monitor and ensure the p roper implementation of the EPlRA. The JCPC is also tasked to determine inherent weakn esses in the EPlRA and recommend the necessary remedial legislation or executive measures. Th e President has given his concurrence to Congress to extend the life of the JCPC, which was set to expire on 26 June 2011, by another 10 years. The JCPC s continued existence is necessary as key structural changes introduced in the EPIRA have yet to be implemented. The JCPC serves as a catalyst in helping push, sustain and bring into fruition the necessary reforms to be instituted in the power sector. 5. Passage of the Mandatory Infants and Children Health Immunization Act of 2011 . Thousands of infants will no longer be at risk of contracting preventable diseases as a re sult of the Mandatory Infants and Children Health Immunization Act of 2011, which was passed by the

Senate and the House of Representatives on 08 June 2011 and signed into law (RA No. 10152) by the President on 21 June 2011. The Act, a consolidation of HB No. 4393 (Manda tory InfantHealth Immunization Act of 2011) and SB No. 138 (An Act Requiring Mandatory Basi c Immunization Services Against Hepatitis-B for Infants), provides for a comprehen sive mandatory and sustainable immunization program for vaccine preventable diseases for all infants and children. The government is thus obliged to conduct free mandatory basic imm unization for infants and children up to five (5) years of age against vaccine-preventable dis eases, such as Hepatitis-B, at any government hospital or health center. The Act highlights the Philippines commitment to the United Nations 2015 Millenni um Development Goal to reduce child mortality. It is a manifestation of the Philipp ines

institutionalization of mandatory basic immunization services in accordance with international guidelines set by the World Health Organization Expanded Programme on Immunizati on. 6 Increasing gender equality in the workforce. Women are allowed to work at nigh t thanks to Senate Bill No. 2701 or .An Act Allowing the Employment of Night Workers, thereb y Repealing Articles 130 and 131 of Presidential Decree No. 442, as amended, other wise known as the Labor Code of the Philippines.. This measure ensures adequate protection for women workers without diminution in pay and benefits for night workers under existing laws. The bill aims to eliminate gender bias and give equal access to employment opportunities for both men and women. The bill further expands health, maternity and wellness provisions fo r workers. RA No. 10151 was signed by the President on 21 June 2011. Prepared by the Presidential Management Staff. Uploaded on July 25, 2011. --All government agencies including departments, bure [1] Sec. 6. Citizen s Charter. aus, offices, instrumentalities, or government-owned and/or controlled corporations, or local government or district units shall set up their respective service standards to be known as th e Citizen s Charter in the form of information billboards, which should be posted at the main entran ce of offices or at the most conspicuous place [2] Majority of the complaints were on consumer products and service warranties, liability for product and services, and product quality and safety. Resolved means the DTI Consumer Welfare Desks have taken appropriate actions such as settling the complaint or r eferred/endorsed the concern to the proper agency. [3] The AFP-OESPA is tasked to strictly monitor and oversee the compliance of AF P personnel with accountability measures [4] Cleansing of the Pension List is a Philippine Veterans Affairs Office (PVAO) major thrust aimed at ensuring that pensions, benefits, and other privileges are recei ved only by eligible veterans and beneficiaries. It has three (3) major components, namely: (1) Reval idation Program, a continuing activity to monitor the status and whereabouts of pensioners throug h a Pensioner s Update Form (PUF); (2) Direct Remittance Pension Servicing System (DRPSS), which eliminates the mailing of pension checks, instead, all pensions are directly rem itted through PVAO servicing banks or financial institutions; and (3) Issuance of PVAO Pension ers ID,

which is another mode of determining and confirming the identity of pensioners [5] EXSBI is a Laguna-based thrift bank with an authorized capital stock of P100 -million. [6] From 2004 to 2010, budgeted advertising expenses totalled P4.48 billion whil e actual expenses amounted to P6.63 billion. [7] 10-20 hours flight testing is the acceptable range of flying hours for the a ircraft to be considered brand new.

[8] Sec., Rule VIII (Receipt and Opening Bids) of RA 9184 provides that the prospective bidder must have completed, within the period specified in the Invit ation To Bid, a single contract that is similar to the contract to bid, and whose, value, adjust ed to current prices using the NSO consumer price indices, must at least be 50% of the ABC. [9] Sec. 13 of RA 9184 states that the BAC shall, in all stages of the procureme nt process, invite at least two (2) observers, one (1) from a duly recognized private group in a sector or discipline relevant to the procurement at hand and one (1) from a non-government organization. [10] GDP Growth of the following countries: (1) Malaysia: 4.6%; (2) Korea: 4.2%; and Thailand: 3.0%. [11] According to the study prepared by the Center for Research and Communicatio n, the multiplier effect of mass housing project is 16.6, which simply means that every peso invested in a housing project generates P16.60 of investments in related industries/sectors. [12] A normal service contract has 3 to 5 well drillings. [13] The 2010 deficit grew by 5.3% from P298.5 billion in 2009. [14] Primary surplus is budget surplus without net interest payments from govern ment debt. [15] This is also equivalent to 10.9 times the country s short-term external debt based on original maturity and 6.0 times based on residual maturity. [16] Non-performing loan (NPL) ratio is the ratio of NPLs to total loans. NPLs a re past due loan accounts whose principal and/or interest is unpaid for thirty (30) days or more after due date. [17] Capital adequacy ratio refers to the ratio of capital to risk weighted asse ts computed in accordance with the risk-based capital adequacy framework (patterned after the 1 988 Basel Capital Accord) that took into account credit risks. [18] The awards are given to outstanding companies and energy managers who have undertaken or are responsible for implementing energy efficiency and conservatio n programs to achieve substantial savings in their energy consumption. [19] Energy Audit Service is an analysis of the patterns of energy consumption t hat is employed in buildings offices and establishments. It aims to absorb and measure patterns of energy used in business; to analyse the results to collect energy efficiency dat

a; and identify major cost-savings and corrective measures in lighting, cooling, and other areas of electricity consumption. [20] Consisting of 2 units of refrigerated trucks and 2 units of cold storage [21] OIE Office International de Epizooties with headquarters in Paris, France.

[22] Set 1- Started in 2008 [23] Set 2- Started in 2009 [24] Household refers to an aggregate of persons, generally but not necessarily bound by ties of kinship, who live together under the same roof and eat together or share in c ommon the household food. A person who lives alone is also considered a separate household . [25] These constitute 11 medical conditions (dengue I and II, moderate risk and high risk pneumonias, hypertension, cerebrovascular accident I and II, diarrhea, typhoid f ever and asthma, asthma and neonatal care package) and 11 surgical procedures (caesarean section, dilation and curettage, hysterectomy, mastectomy, appendectomy, cholecystectomy, herniorrhaph y, thyroidectomy, radiotherapy, hemodialysis, and maternal care package [normal spo ntaneous delivery]). [26] To date, all 2011 HFEP projects are in the preparatory phase (pre-bidding, preparation of detailed architectural and engineering designs, etc.), which shall be completed by 30 September 2011. Catch-up strategies are being formulated for immediate implementation. [27] The P2.3 billion budget for the start of universal kindergarten includes th e following: P1,732,237,000 for the expansion of kindergarten coverage through different deli very modes (e.g. kindergarten regular programs, and programs for the gifted and CWDs), P500 million for the provision of classrooms with fixtures, among others; P97,500,000 for the sup port to various kindergarten delivery modes (e.g. conduct of regular monitoring and evaluation; downloading of support funds to regions; institution based training for kindergarten teachers); P9,514,500 for the curriculum model building; and P1,931,550 for kindergarten students for SY 2 011-2012, which includes 500,00 kindergarten students who participated in the summer progr am. [28] These include the Home Development Mutual Fund (HDMF or Pag-IBIG Fund), National Housing Authority (NHA), National Home Mortgage Finance Corporation (NH MFC), Social Housing Finance Corporation (SHFC), Home Guaranty Corporation (HGC), and the Housing and Land Use Regulatory Board (HLURB). [29] Section 30 of the UDHA Law provides that the head of any local government u nits (LGUs) who allows or tolerates the construction of any illegal structure shall b e subject to criminal and administrative sanctions provided by law.

[30] Preliminary figures. [31] SPES is a regular program of the DOLE by virtue of RA No. 7323, or the .Spe cial Program for Employment of Students (SPES)., as amended by R.A. 9547. [32] Moreover, per AFP assessment, the increase in the number of ASG attacks is due to the increase in the number of its members being neutralized.

[33] CSE rate is the percentage of solved cases out of the total number of crime incidents handled by law enforcement agencies for a given period of time. [34] CCE rate is the percentage of cleared cases out of the total number of crim e incidents handled by law enforcement agencies for a given period of time. [35] Article 5. Section 5.1(b) states that the .MCC may, immediately, upon writt en notice to the Government, suspend this Compact or MCC Funding if MCC determines that any circumstance identified by MCC as a basis for suspension or termination has occur red, which circumstances include (vi) the Philippines is classified as a Tier 3 country in t he United States Department of State s annual Trafficking in Persons Report;. [36] Also known as .political killings. i.e., killings due to political affiliat ion of the victims; the method of attack; and involvement or acquiescence of state agents in the com mission of the killing. The DOJ uses the term .extralegal killings. since we do not have judici al killings. [37] The 196 is based on Court Records. However, the CIDG and DOJ shall file a m otion before the Court to correct this information as suspect Cader Datunot and Datu N or Kadir are one and the same person. The Court Records will have to be amended first before this can be changed. [38] It is already considered overcrowded when an inmate has less than 60 square feet of floor space [39] The standard Biological Oxygen Demand (BOD) level depends on the classifica tion of the waterbody. Most of the 19 priority rivers are classified as Class C (w/ a BO D std. of <7mg/l), except for Anayan River which is Class D (w/ a BOD std. of 10 mg/l) and Cagayan de Oro River which is Class A (w/ a BOD std. of <5 mg/l). [40] If the map is on a scale of 1:50,000, then all the woods, lakes, towns and other entities will be one fifty thousandth of their sizes in the real world or 50,000 times bi gger than the map. [41] Geohazard maps are used to assess the areas for risks of geophysical proces ses of extreme dimensions (e.g. earthquakes, volcanic eruptions, floods, and climate change) [42] Multi-hazard maps are used to analyse the vulnerability and risks of areas exposed to more than one hazard. [43] Automated weather stations are stand-alone devices that measure weather-rel ated factors

and transmit data remotely on real-time basis. These modern weather tracking dev ices are outputs of the Development of Hybrid Weather Monitoring System and Production of Weather and Rain Automated Stations Project, which is jointly managed by the DOST-Advanc ed Science and Technology Institute (ASTI) and the DOST- PAGASA. Other forecasting tools su ch as meteorological buoys, shaker table, landslide sensors, and 3D mapping device are also being locally-developed by the DOST.

[44] Authored by Senators Sergio R. Osmea III, Francis Escudero, and Juan Ponce E nrile. SB 2846 was adopted by the HOR as an amendment by substitution to HOR-approved Hous e Bill 4169, as authored by Reps. Henedina Abad, Rufus Rodriguez, and Ben Evardone.