ASEAN Integration:
Challenges and Opportunities
ONE ASEAN COMMUNITY FORUM
AVR 1, 2nd Floor, BA Bldg, University of Mindanao Bolton
March 6, 2015
A presentation by Dir. Romeo M. Montenegro, Head of International Relations,
Investment Promotion and Public Affairs, Mindanao Development Authority (MinDA)
Economic Integration Structure
Overarching
institution
Regional
level
Subregional
level
So what is economic integration
all about?
In the context of ASEAN…
• Narrowing development gap
• Achieving inclusive growth
• Sustainable development
ASEAN: ONE VISION, ONE IDENTITY, ONE COMMUNITY
Hua Hin
Declaration
LAOS
INDONESIA
MALAYSIA
PHILIPPINES
SINGAPORE
THAILAND
MYANMAR
1st ASEAN
Summit
Cebu
Declaration
1976
(MPAC)
BRUNEI
1999
1995
1967
Master Plan of
ASEAN Connectivity
1984
1997
2008
2007 2009 2010 2011
Treaty of Amity
and Cooperation
(TAC)
Bali Concord
III
CAMBODIA
VIET NAM
ASEAN
COMMUNITY 2015
ASEAN: Fast Facts
• A very big and fast growing market
• 10 member states at varying economic development
• 610 million people, which is 8.8% of the world's population
• Combined GDP of US$ 2.34 Trillion with an average GDP
per capita of US$ 3,787
• As a single entity, it ranks as 8th largest economy in the
world
ASEAN: Fast Facts
The ASEAN six major countries (values in US$):
Country
Indonesia
Thailand
Malaysia
Singapore
Philippines
Vietnam
GDP (nominal)
GDP (Per Capita)
867,468,000,000
5,214
400,916,000,000
9,875
312,413,000,000
17,748
297,941,000,000
64,584
278,260,000,000
4,682
170,020,000,000
4,012
ASEAN: Fast Facts
Human Development Index (HDI) Performance:
Country
Singapore
Brunei
Malaysia
Thailand
Indonesia
ASEAN
Philippines
Vietnam
Cambodia
Laos
Myanmar
HDI (2013)
0.901
very high
0.852
very high
0.773
high
0.722
high
0.684
medium
0.669
medium
0.660
medium
0.638
medium
0.584
medium
0.569
medium
0.524
low
ASEAN Dialogue and Development Partners
•
•
•
•
•
•
•
•
•
•
ASEAN – Australia
ASEAN – Canada
ASEAN – China
ASEAN – European Union
ASEAN – India
ASEAN – Japan
ASEAN – New Zealand
ASEAN – Republic of Korea
ASEAN – Russia
ASEAN – United States
Means
greater
leveraging
and market
access
FDI Inflows to ASEAN, 1995-2011
(US$ Million)
FDI inflows to ASEAN have
been expanding
ASEAN Integration
Aligned with the three (3) main pillars:
1. ASEAN Political Security Blueprint
2. ASEAN Economic Blueprint
3. ASEAN Socio-Cultural Blueprint
ASEAN Economic
Community
Single Market and
Production Base
1.
2.
3.
4.
5.
6.
7.
Free flow of goods
Free flow of
services
Free flow of
investment
Free flow of capital
Free flow of skilled
labor
Priority integration
sectors
Food, Agri and
Forestry
Competitive
Economic Region
1.
2.
3.
4.
5.
6.
Equitable Economic
Development
Competition Policy
Consumer
Protection
Intellectual
1.
Property Rights
2.
Infrastructure
Development
Taxation
E-commerce
Integration into the
Global Economy
1.
SME Development
Initiative for ASEAN
Integration
2.
Coherent approach
towards external
economic relations
Enhanced
participation in
global supply
networks
Dr. Cielito Habito; Philippine Business and the ASEAN Economic Community: Opportunities and Challenges; AEC Forum, April 2014
Dr. Cielito Habito; Philippine Business and the ASEAN Economic Community: Opportunities and Challenges; AEC Forum, April 2014
Tariff Reduction/Elimination with AFTA
Member
Sensitive List
Highly Sensitive
List
Indonesia
None
Rice and Sugar
Malaysia
Swine, poultry, orchids, cabbages, bananas,
pineapples, guavas, mangoes, and mangosteens,
melons (including watermelons), papayas, durians,
rambutan, langsat, starfruits, jackfruits, coffee,
bamboos, rattans, tobacco and cigarettes
Rice
Myanmar
Rice and Sugar
None
Philippines
Swine, poultry, manioc (cassava), sweet potatoes,
maize (corn), grain sorghum, and sugar
Rice
Singapore
none
None
• Tariffs on products classified under the Sensitive List have not been eliminated and will
instead have end rates of 5%
• Longer timeframe for tariff reduction/elimination on rice and sugar
Priority Integration Sectors
PIS Services Sectors
PIS Goods Sectors
1. Agro-based goods
2. Automotive products
3. Electronic and electrical
goods
4. Fisheries
5. Rubber-based goods
6. Textiles and clothing
7. Wood-based products
1.
2.
3.
4.
5.
Air Transport
E-ASEAN
Health Care Services
Logistics Services
Tourism
Free Flow of Services
Provides for greater mobility of ASEAN professionals
to provide their services in the region
Seven Mutual Recognition
Arrangements (MRAs) concluded
1.
2.
3.
4.
5.
6.
7.
Engineering Services
Nursing Services
Architectural Services
Surveyors
Medical Practitioners
Dental Practitioners
Accountancy Services
In 2009, MRA on Tourism
Professionals was adopted
Business Implications
•
Expect increased competitive pressure
•
Need to increase efficiency
•
Master the rules
•
Safety nets?
•
Forum arbitrage
•
Pressure for better governance: margins for
policy mistakes narrower
KEY INITIATIVES IN PREPARATION FOR
ASEAN INTEGRATION
•
•
•
•
•
•
•
Supportive Government Policies
Funding Assistance/ Access to Financing
Capacity Building provided by govt and private sector
Seminars on doing business in Free Trade Areas
Set up of National Competitiveness Council
Industry Clustering approach
Promotion of sustainable food production and strengthening
of networks for R&D, techno transfers and farmers coops
Now, the question is…Are we ready?
We should be.
We must be.
Here’s why…
Philippines Shifting to High Gears…
 received investment grade ratings from:
 1st - Fitch (March 2013)
 2nd - S&P (May 2013)
 3rd - Moody’s (Oct 2013)
 World Economic Forum: Ranked 59th from 152
countries in the Global Competitiveness Index (GDI)
 HSBC: PH will be the 16th largest economy in the
world by 2050
 World Bank: PH dubbed as the “rising tiger of
Asia.”…
 Institute of Chartered Accountants in England and
Wales: PH adjudged as one of the “brightest sparks
in the ASEAN region.”…
 Bloomberg: PH is the 2nd fastest growing
economy next to China”
Source: Mid-Year Philippine Economic Briefing 2013
But wait, let’s take another closer look…
Official AEC Scorecard
(As of July 2013)
Implementation of AEC Scorecard Deliverables under
Phase I – III (2008 – 13)
ASEAN
Member
State
Brunei
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
Implemented
Not
Implemented
Implemented
Ahead
Ongoing
Total
Measures*
Implementation
Rate**
297
290
289
287
307
294
302
304
307
307
48
56
58
57
44
51
47
38
43
41
18
17
18
16
20
17
19
19
20
16
71
72
72
74
69
72
71
69
69
73
434
435
437
434
440
434
439
430
439
437
86.8%
84.6%
84.1%
84.2%
88.1%
85.9%
87.2%
89.5%
88.4%
88.7%
5th
Source: ASEAN Secretariat
Assessing Competitiveness: Philippines vs ASEAN
How are we faring?
•
•
•
•
•
•
6th in per capita GDP
6th in Global Competitiveness
6th in Ease of Doing Business
6th in Enforcing Contracts
6th in Logistics Performance
7th in Starting a Business
• According to the National Competitiveness Council of the Philippines
Assessing Competitiveness: Philippines vs ASEAN
How are we faring?
•
•
•
•
•
•
7th in Information Technology
7th in Global Innovation Index
8th in Cost of Business
8th in Dealing with Construction
8th in Registering a Property
8th in Ease of Paying Taxes
• According to the National Competitiveness Council of the Philippines
Creating Productivity Index
How are we faring?
Out of
24 Asian
Countries
1.
2.
3.
4.
5.
6.
7.
8.
9.
Laos (9th)
Singapore (10th)
Indonesia (12th)
Malaysia (13th)
Thailand (15th)
Vietnam (16th)
Philippines (18th)
Myanmar (22nd)
Cambodia (24th)
Creative Productivity Index: Analyzing Creativity and Innovation in Asia by ADB
Assessing Competitiveness: Philippines vs ASEAN
Areas we fared better:
• 2nd in Population
• 2nd in Adult Literacy
• 4th in Corruption Perception Index
• According to the National Competitiveness Council of the Philippines
Why does it matter?
FDIs net inflows, intra- and extra-ASEAN
2013 Total Net Inflow per Country (in US million dollars)
Singapore
60,644.90
Thailand
12,999.80
Malaysia
12,297.40
Indonesia
18,443.80
Viet Nam
8,900.00
Brunei Darussalam
908.4
Philippines
Lao PDR
Myanmar
3,859.80
426.7
0
Cambodia
1,274.90
0.00
ASEAN Statistics
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
Critical Business Expansion Enablers in South East Asia
(% of businesses)
36%
Improve business environment
31%
Promote regional trade
29%
Facilitate regional investment
18%
Generate business opportunities
Government incentives
17%
Increase talent availability and flow
17%
0%
5%
Source: Accenture SEA Business Expansion Survey, 2011
10%
15%
20%
25%
30%
35%
40%
Where is Mindanao economy in the
context of ASEAN and global trade?
Mindanao in the
context of AEC
2015: The New
Narrative
Mindanao...
 worth taking another
serious look
 next viable investment
destination
 where investments
yield high returns
for peace
Mindanao in Figures…
Second largest Island in the Philippines
(10.2 Million hectares)
Population of around 22 Million
Consists of 6 Regions, 26 Provinces, 33
Cities, 422 Municipalities, 10, 084 Barangays
41% of
Mindanao’s
total land area
is certified
Alienable and
Disposable land
8 of the 18
major River
Basins in the
Philippines are
in Mindanao
80% of the
country’s total
deposits of
copper, nickel
and gold are in
Mindanao
Progress on the Peace Process
• Peace agreement signed
in March 2014
• Bill on Bangasamoro Basic
Law now in Congress
• Bangsamoro political entity
to be established by 2016
Structure of the Mindanao Economy
The Mindanao economy is pegged at P 968.77B in 2013, or equal to 14.32% of
the Philippine Economy.
Growth Rate
(%)
24%
AHFF
0.99
45%
Industry
31%
9.6
Services
6.3% GRDP INCREASE
in 2013
7.08
Mindanao: The Philippines Food basket and Source of
Major Industrial Crops
Mindanao
Priority
Commodities
Contribution
to Philippines
(in %)
Aquaculture
74
Cacao
89
Coconut
58
Coffee
75
Pineapple
89
Banana
82
Corn
50
Poultry
19
Rubber
99.97
Palm Oil
90
Source of Raw Data: PSA-BAS
Processed by: MinDA
Poultry
Aquaculture
Cacao
Rubber
Banana
Palm Oil
Coffee
Pineapple
Corn
Mindanao: The Philippines Food basket and Source of
Exports
vs
Imports
Major Industrial Crops
Mindanao Oil Palm:
60,000 hectares
•
•
•
•
•
•
•
Agumil
Kenram
Filipinas Palmoil
Carmen Univanich
ABERDI
Zanorte
Bali Palm Oil
East Malaysia and
Eastern Indonesia:
• 6.5 million hectares;
• 35 million tons palm oil to 150 countries
STRENGTHEN MINDANAO’S ROLE AS FOOD BASKET
a major source of globally competitive agri-based products
• One-third of
Mindanao’s land area
is devoted to
agriculture
pineapple
oil palm
canned sardines
• One-third of the labor
force is employed in
the agriculture, fishery
and forestry sectors.
• Contributes more than
30% of the national
food requirements
Source of Raw Data: NSCB
Processed by: MinDA
banana
seaweed
tuna
Exports vs Imports
Mindanao’s total foreign trade increased by 14.96% in 2013
Trade Surplus increased by 59.65%
EXPORT
Increased
Export
earnings by
24.37%
Imports
Decreased by
1.3%
IMPORT
Our export destinations
European Union:
Coconut, Banana,
Animal or vegetables oil
, Fruits , Fish, seaweeds,
Acyclic alcohols,
Prepared or preserved
fish
Canada: Fruits,
prepared or
preserved fish
USA: Banana,
Coconut, fruits, Palm
oil, live fish, animal or
vegetables oil, Acyclic
alcohols
Switzerland: Gold,
Fish , Coconut
Africa: Coconut,
Fruits, Bananas, nuts,
Fish
Russia: Fruits, Wood
charcoal, Acyclic
alcohol
Japan: Banana, Wood
charcoal, Fish, Fruits
China: Nickel ores,
Live Fish, Crustaceans,
Animal or vegetable
fats , Banana, Fruits,
seaweeds
Korea: Coconut,
Banana, Fruits
Middle East: Coco
water, Banana, Fruits,
animal vegetables
Mindanao
ASEAN: Coconut,
Fruits, Fish, Acyclic
Alcohol, Coco Water
Source: NSO, 2012
Australia: Coconut,
fruits, water, Nickel
ore, prepared or
preserved fish
BOI-APPROVED INVESTMENTS IN MINDANAO
(In million Pesos)
Location
2010
Region IX
326.660
546.366
2,586.902
Nda
Region X
2,837.030
2,688.006
3,648.996
48,123.32
Region XI
4,656.970
38,481.517
5,795.086
31,664.25
Region XII
504.177
65.00
1,222.875
6,530.70
Caraga
2,824.050
49,648.383
11,786.489
8,638.26
Total Mindanao
Project Cost
(Php in Million)
11,148.89
91,429.27
25,040.35
*94,956.53
Source: Bureau of Investments (BOI)
Processed by: MinDA
2011
2012
2013
BOI-Registered Investment Projects in Mindanao
CARAGA
Region X
Argusland Inc., Maharlika
Agro-Marine Ventures Corp.
FirstGen Mindanao Hydro
Power Corp., Mindanao
Mineral Processing and
Refining Corp.
Total Mindanao Project Cost:
Php 94.96B*
Region XI
Region XII
Communities General Santos,
Inc., First Gen Mindanao Hydro
Power Corp., Gensan FeedMill
Inc., Kenram Palmoil Industries
Inc., Phil. Best Canning Corp.,
Safi Agro-Industries Inc.,
Saranggani Agriventures.
Please note, in 2013, RBOI-ARMM reported Php 1.46 Billion registered investments in ARMM
(four projects, 157% higher than than the Php 569 Million registered investments in 2012.
Azdevelopers Corp.,
Communities Davao, Inc.,
DMC Urban Property
Developers, Francisco M.
Soriano & Co., Franklin Baker,
Hedcor Sibulan Inc., Hedcor
Tudaya, Inc., Nakayama,
PNX-Chelsea Shipping, San
Miguel Consolidated Ppower
Corp., Seaoil Philippines,
Simmons Leather Goods.
Vifel Ice Plant andC old
Sotrage
94.88% of Mindanao’s Labor Force are employed
Of the 20 people
aged 15 to 64 in
MINDANAO
19 of them are
EMPLOYED
But, of the 19, 5 of them are
UNDEREMPLOYED
Source: NSO
Labor Productivity of Mindanao vs Luzon,
per GVA share, FY2013
Latest Minimum Wage Rate Levels in Mindanao (Php)
Non-Agri Agriculture
Retail
Services
Handicrafts
National Capital
Region (NCR)
466.00
429.00
429.00
-
Mindanao
208.00 312.00
245.00 302.00
260.00 296.00
235.00
Tourist Arrivals in Mindanao is growing…
Mindanao Total Tourist Arrivals
4,581,704
4,363,116
2011
2012
Source of Raw Data: DOT-CO
Processed by: MinDA
More competitive electricity rates*
Luzon:
Php 10.10/kWh
Visayas:
Php 10.27/kWh
Mindanao:
Php 8.24/kWh
*Electricity prices are the average of electricity price of all
distribution units belonging to the same island group
CITIES AND MUNICIPALITIES COMPETITIVE
INDEX, 2014
OVER- ALL COMPETITIVENESS
RANK
1
2
3
4
5
6
7
8
9
10
CITIES
Makati
Cagayan De Oro
Naga City
Davao City
RANK
MUNICIPALITIES
1
Daet, Camarines Norte
2
3
Kalibo, Aklan
4
5
Carmona, Cavite
Nabunturan,
Compostella Valley
6
Lubao, Pampanga
7
Isulan, Sultan Kudarat
Polomolok, South
Cotabato
Manolo Fortich,
Bukidnon
Marikina City
Iloilo City
Cebu City
8
Manila City
Valenzuela City
Paranaque City
Source : National Competitiveness Council
General Trias, Cavite
9
10
Taytay, Rizal
What steps are being taken to strengthen
Mindanao’s enabling environment?
BIMP-EAGA : Mindanao’s Platform to the ASEAN
BIMP-EAGA
• A test-bed for ASEAN protocols and
agreements
• A building-block towards achieving
ASEAN Integration 2015
Strategic Pillars
• Enhanced Connectivity
• Food Basket Strategy (Agri)
• Tourism Development
• Environment
• Socio-Cultural and Education
(newest pillar adopted at 19th BIMP-EAGA MM
on November 19, 2014 in Brunei Darussalam)
BIMP EAGA Economic Growth Corridors & Transport Connectivity
Sabah Development
Corridor (SDC):
•
Agro-based
Industry
Sarawak Corridor of
Renewable Energy
(SCORE):
•
Palm Oil
•
Fish and
Aquaculture
•
Livestock
Mindanao Growth
Corridors:
•
Tropical Fruits
(Banana, Pineapple
& Mango)
•
Rice
•
Poultry
•
Coconut
•
Mariculture
Indonesia Growth
Corridor
• Corn
• Fertilizer
• Cement
MINDANAO TRANSPORT & LOGISTICS NETWORK SUPPORTING MINDANAO
DEVELOPMENT CORRIDORS
Existing National Road
Proposed ADB-PPTA
Proposed MTPIP III
Proposed JICA Logistics
NORTHER MINDANAO
GROWTH CORRIDOR
Identified Projects under Mindanao Growth Corridors
International Airport
WESTERN MINDANAO
GROWTH CORRIDOR
Principal Airport
Sea Port
BIMP-EAGA Proposed
Sea Linkage
BIMP-EAGA Proposed
Air Linkage
SOUTHERN MINDANAO
GROWTH CORRIDOR
RORO Shipping Network
International Gateway
Strategic Tourism
Destinations
Davao- Manado
Zamboanga – Muara
Davao – GenSan – Bitung
Zamboanga- Sandakan
Davao- Kota Kinabalu
Western Mindanao Economic Growth Corridor
Region IX Area:
Projects
• Pulauan Port Alternate Road,
Dapitan City
• Dipolog Airport Improvement
• Pagadian Airport Improvement
• Liloy-Labason-Gutalac Road
Upgrading
• Pagadian Port Access road
• Road Upgrading of Liloy-Lamao
Port
• Tumaga River Structural
Improvement Measures Flood
• Zamboanga Port Improvement
• New Zamboanga International
Airport Development
• Balinsungay Irrigation project,
Zamboanga City
• Lower Sibugay River Irrigation
System, Zambo Sibugay
• Titay Valley Irrigation Project,
Zambo Sibugay
BIMP EAGA OSAC
Mariculture Processing
Complex
BIMP EAGA Initiative on
Non-Convention
Sized Shipping
BASILAN-SULU-TAWI TAWI-ZBO
CORRIDOR
-
Concreting of Calugusan-BalasSengal Road to Lamitan City Port
Sanga-Sanga Bangilan Road
Section
Improvement of the Bongao
Port
Concreting of Bato-Bato->LapidLapid Road, Panglma Sugala
Bongao Port
Improvement of Siasi Port
Mindanao Industry & Trade Corridor
Region X Area:
Projects
• Education: ICT and BPO/KPO Related Courses in
CDO
• Education: Agriculture, animal science, and food
processing related courses in Bukidnon
• Education: Technical Vocational Courses
• Cold storage facilities in Bukidnon
• Minerals processing in Manticao, Misamis
Oriental
• Mini-Hydro
Primary Growth
Center
Secondary Growth
Center
Existing Power
Plant
Proposed/Indicativ
e
Power Plant
Ongoing/Committed
Power Plant
Airport
Seaport
ARMM Area:
Projects
• Cassava processing in Parang and
Marawi City
• Aquaculture and aquaculture
processing in Parang and Marawi City
• Hydro Power
Caraga Area:
Projects
• Education: Minerals development
related courses
• Education: Technical Vocational
Courses
• Coconut processing in Tandag City
and Butuan City
• Minerals processing in Surigao del
Norte and Tubay, Agusan del Norte
• Improvement of strategic roads to
processing and business centers
Southern Mindanao Economic Growth Corridor
Cotabato Area:
Halal Meat Processing
Center in Cotabato City
Projects:
• Rubber Testing Center
• Improvement of
strategic roads to
processing and
business centers
SOCCSKSARGEN Area:
 General Santos as the
Food Business Center
Projects:
• Improvement of
strategic roads to
processing and
business centers
South Caraga Area:
• Bislig City as Aquamarine
Processing Center
• Agroforestry Hub
Projects:
• Paper mill (Private)
• Develop PICOP as Agro
Industrial Zone
• Improvement of strategic
roads to processing and
business centers
Panabo Port Devt
100MW
Geo
100MW
PB118
32MW
PB104
Tagum-Dvo-GSC High
Standard Highways
58.69MW
Dav light
3.70 MW
Talomo
Food Terminal Complex
56MW
SPPC
ASEAN RoRo Study
ADB TA on CIQS
Davao Area:
 Davao City as the Mindanao
Business Center and ICT Hub
Projects
• International Airport (service
improvement)
• National Research
Development for Banana in
Davao City (USEP)
• Improvement of strategic
roads to processing and
business centers
Mindanao and EAGA Corridors Link
 Heights of Mt. Kinabalu to the depths of
PPUR
 Western Mindanao and Sabah Festivals
 Mindanao Tourism Loop/Mindanao and
North Sulawesi Festivals
Existing Sea Link
•
Proposed Air Linkages
Legend:
Existing
Proposed
•
Zamboanga – Sandakan (Pal Express)
•
Balikpapan – Kuching (MASwings)
•
Balikpapan- KK (MASwings)
•
Pontianak- Miri (Kalstar Air)
•
Tarakan – KK (Kalstar Air)
Zamboanga – Sandakan
(Passenger-Cargo Ferry)
Existing Air Linkages
Proposed Sea Linkages
•
Davao-Manado (Sriwijaya)
•
Davao – GenSan – Bitung
•
Puerto Princesa – KK (MASwings)
•
•
KK – BSB (Maswings)
Brooke’s Point – Labuan –
Muara
•
Kuching - BSB (MASwings)
•
Zamboanga – Muara
•
Kuching – Pontianak (MASwings)
•
Tawau – Tarakan (MASwings)
Mindanao Budget Allocation
258,610
In Billion Pesos
219,103
163,978
FY2011
FY2012
FY2013
Infrastructure
Distribution of FY 2011- 2014 Budget by Region:
(Based on GAA-Capital Outlays, Projects)
NCR
P54.27 B ($1.23B)
(13.8%)
NORTHERN LUZON
P90.87 B ($2.07B)
(23.1%)
CAR, I, II, III
VISAYAS
P72.23 B ($1.64B)
(18.4%)
VI, VII, VIII
SOUTHERN LUZON
P76.84 B ($1.75B) (19.5%)
IV-A, IV-B, V
MINDANAO
P99.12 B ($2.25B)
(25.2%)
IX, X, XI, XII, XIII
TOTAL : P393.33 B
$ 8.94 B
* Excluding Inter-Regional/Nationwide-P132.10 B
Inclusive Business Program
Project Sites
Uni Frutti – 6,000 ha
Del Monte – 10,000 ha
Dole Phils. – Pineapple
Sumifru – 600 ha
Kenram – CPO Mill
Agumil Phils. – 10,000 ha
PBGEA – Banana Export
ICTSI Port Development
ANFLOCOR
Henry Chua Industrial
Mr. Carlos Vargas / Dr. Mazaki
Flatwood Solutions
Malaysian Investor – 40,000 ha
Khodian Holdings – 30,000 ha
Jerry Taray
Hejem Furigay
Nestle Phils.
Kennemer Foods
Frankiln Baker
Bill Ho E-vehicles
Mindanao Power Development
Reliability of Power Supply
At the rate committed projects are being built, it
looks like Mindanao will have more than enough
power after 2015…
4000
3500
3000
2500
2000
Supply
1500
Demand
1000
500
MW 0
2014 2015 2016 2017 2018 2019 2020
Project Location
Lake Mainit
(25MW) = 2016
Puyo HEP
(30MW) = 2015
Committed Private-Sector
Initiated Power Projects
FDC CFB Coal Fired PP
(3x135 MW)=2016
- Wind, Biomass, Solar
- Hydro Power
- Coal Fired
- Diesel Fired
Limbatong HEP
(9MW) = 2017
Mapalad Diesel Power Plant
(15 MW)=Oct2013
GN Power PsagCorp Coal
fired PP (3x135MW)=
2017
Peak Power Bunker
Diesel Plant (5.2
MW)=Sep 2014
Green Power
Bukidnon
Biomass (40
MW)=2013
EDC Mindanao Geothermal
3 (50 MW)=June2016
Therm(a South (Aboitiz)
Coal Davao (300
MW)=Mar/June 2015
Phil Bio Biomass
(1.6 MW)=2017
SMC Davao Power Plant(Phase 1-300MW)=2015 & 2016
Peak Power Bunker Diesel
Plant (20.9 MW)=Sep 2014
DOE List of Power Projects as of May 2014
- Committed Projects = 1,981.7MW
Southern Mindanao (Sarangani) CFTPP
(2x100 MW)= Sep2015 & Nov2016
Moving Forward
Overcoming Challenges
• Connectivity and accessibility difficulties
• Infrastructure development challenges
• Security and safety issues
• Promotion Strategies – Product quality and
branding
• Human resource capacity
Source: Dr. Tans Sri YenYen
Our Strength: DEMOGRAPHIC DIVIDEND
Turning odds to favor: Philippines has young and
growing population
Comparing Median Age: Philippines - 23.1 y.o.
•
•
•
•
•
Vietnam - 28.1
Indonesia - 28.5
Singapore – 31.5
China - 35.9
Japan – 45.4
With right skills and education, Philippines can
sustain edge high labor productivity in ASEAN
Source: Dr. Bernardo Villegas, University of Asia and the Pacific
Our Strength: DEMOGRAPHIC DIVIDEND
We have distint competitive advantage within ASEAN






High level of tertiary education
Adaptable and multicultural workers
Fluent in English
Familiar with the culture of the biggest market in the
world, the U.S.
Low labor cost
Labor peace
Source: Dr. Bernardo Villegas, University of Asia and the Pacific
Alignment to Priority Sectors
Integrating Mindanao.
Daghang
Salamat!
www.minda.gov.ph
info@minda.gov.ph