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Mindanao has a total land area of 133,656 sq. km. which is approximately 39% of the total land area of the Philippines. The island consist of 6 regions with a total of 26 provinces in all the regions. Furthermore, the island has 26 cities and 422 municipalities further subdivided into 10,082 barangays. 1946-1992: Mindanao Situation: 1. Fragmentized; Island was not interconnected 2. LGUs were on their own respective devices 3. Image/perception negative 4. Role was merely supplier of raw materials i.e. a) logs/timbers, plywood, etc b) Minerals, Abaca 5. Virtual dumping ground of misfit undesirable scoundrels and scalawags 1992-1998: FVR presidency (E.O. 512) E.O. 244 1. Activated MEDCo

In 2007, Mindanao Population is estimated to be at the 21 Million mark (actual 2007 census: 21,582,540) with an estimated annual average growth rate of 2.62 percent. Mindanaos annual average growth rate (2.62) is slightly higher than that of the national average (2.04 percent). From 2000 to 2007 Mindanaos population grew at approximately 19% or about 3.45 million people (2000 Census, Mindanao = 18,133,864 people). The following are each Mindanao regions average annual growth rate: Region Average Annual Growth Rate REGION IX - ZAMBOANGA PENINSULA REGION X - NORTHERN MINDANAO REGION XI - DAVAO 1.71 REGION XII - SOCCSKSARGEN 2.41 REGION XIII - CARAGA 1.25 AUTONOMOUS REGION IN MUSLIM MINDANAO 5.46 1.83 1.67

ARMM has the highest average annual growth rate in Mindanao and even in the entire country. The common reasons for this may have to do with various sociological, cultural, political and religious factors unique in the ARMM. The level of population growth has significant repercussions on the capacities of a certain economy. Population growth in Mindanao will not only strain its ability to provide for the citizens of the current generation but also of future generations as well. Also the diversity in religious and ethnic backgrounds pose a challenge to policy makers in terms of maintaining conditions suitable for these people to co-exist peacefully. Policies which could disadvantage one group could create conditions leading to conflict and may pose a threat to the development initiatives in the area.

Philippine economy manages a 1.1 percent growth The Philippine economy remained resilient as it managed to grow by 1.1 percent in 2009 despite the adverse impact of the global economic crisis and the onslaught of super typhoons Ondoy and Pepeng which brought about massive destruction to agricultural production and infrastructures during the year. The growth, however, was a deceleration from the 3.7 percent performance achieved in 2008. The accelerated growths in Mining and Quarrying, construction, finance, private services and government services cushioned the decline in manufacturing and agriculture and fishery. All the major industries slowed down in 2009 compared to 2008. Agriculture, fishery and forestry (AFF) posted zero growth in 2009 from 3.1 percent in 2008. The industry sector contracted by 0.9 percent in 2009 from 4.9 percent in 2008 while the Service sector decelerated from 3.1 percent to 2.8 percent. Figure 1 shows the national performance as compared to Mindanao. Mindanao economy slightly decelerates The economic growth of the Mindanao island group slightly decelerated from 3.9 percent in 2008 to 3.7 percent in 2009 as two of its regional economies significantly slowed down. The share of the Mindanao island group to the national economy increased to 18.2 percent in 2009 from 17.7 percent in 2008.

Mindanao contributed 0.7 percentage points to the country's GDP growth rate in 2009 which is the same contribution it had the previous year.

In the past decade, there was an observed increase in the share of Mindanaos industry and services sectors. Sectoral Performance as of Aug 2009: The Agriculture, Fishery & Forestry (AFF) sector of Mindanao, the biggest of the three sectors which comprised 35.49 percent of the total Mindanao economy decelerated from 4.5 percent in 2008 to 2.0 percent in 2009. The industry sector which comprised 29.19 percent of the Mindanao total increased by 6.8 percent in 2009 from 4.6 percent in 2008. Similarly, the service sector comprising 35.32 percent increased from a 2.7 percent growth rate in 2008 to a 3.1 percent growth rate in 2009.

HIGHLIGHTS ON MINDANAOS REGIONAL PERFORMANCE Zamboanga Peninsula economy improves as AFF accelerates Anchored on the strong performance of the AFF sector, the economy of Zamboanga Peninsula posted an acceleration of 6.8 percent in 2009 from 2.0 percent in 2008. AFF accounted for almost half of the regions domestic output at 49.3 percent in 2009, higher than its 48.8 percentage share in 2008. While the Service sectors share decreased to 33.0 percent from 34.3 percent, the share of the Industry sector increased to 17.7 percent from 16.9 percent. Northern Mindanao decelerates as its sectors slow down Northern Mindanaos economy decelerated to 2.9 percent in 2009 from a 5.2 percent growth in 2008. This was brought about by the deceleration in all the regions economic sectors. Services remained as the regions largest sector comprising 38.0 percent of the regions total domestic out despite a decrease from its 38.4 percentage share in 2008. Meanwhile, AFF increased its share to 31.6 percent from 31.2 percent and Industry also increased its share to 30.4 percent from 30.3 percent.

Industry and Service sectors push growth of Davao Region Davao Regions economy accelerated to 5.4 percent in 2009 from 3.7 percent in 2008. The growth was mainly brought about by the accelerated growths of the Industry and Services sectors.

Accounting for the largest share of the regions economy in 2009 was the Services sector with a 41.2 percentage share, although this was lower than its 41.5 percentage share in 2008. The Industry sector meanwhile increased its share to 34.4 percent from 32.9 percent while AFFs share decreased to 24.4 percent from 25.6 percent. SOCCSKSARGENs economic performance decelerates as AFF reverses growth SOCCSKSARGENs economy in 2009 posted a deceleration of 1.3 percent from 4.5 percent in 2008 due to the reversal in growth in AFF. The accelerated growths in the Industry and Services sectors were not able to offset the lackluster performance of AFF. Accounting for the largest share of the regions economy in 2009 was AFF with a share of 41.5 percent lower than its 42.9 percentage share in 2008. Both the Industry and Services sector posted increases in their shares of 31.8 percent from 31.0 percent and 26.7 percent from 26.1 percent, respectively. Mining and Quarrying subsector fuels Caraga economy Caraga maintained the same growth it posted last year at 2.7 percent despite the reversal in the growth of AFF. The Services sector remained as the largest sector of as it comprised 34.6 percent of the regions total domestic output in 2009, although this was lower than its share of 34.7 percent in 2008. While the Industry sector managed to increase its share to 33.9 percent from 31.2 percent, AFF posted a decrease in its share at 31.5 percent from 34.1 percent. ARMMs economy accelerated as AFF and Industry sector grow faster The regional economy of the ARMM posted an accelerated growth of 2.6 percent in 2009 from 1.6 percent in 2008. This was largely due to the accelerated growth of the AFF and Services sectors which offset the slowdown in the Industry sector. Comprising the bulk of the regions economic output in 2009 was AFF with a share of 57.7 percent, which remained unchanged from 2008. The Services sector increased its share to 31.1 percent from 30.9 percent while the Industry sectors share decreased to 11.3 percent from 11.4 percent.

Mindanao contributes a fairly big share of the countrys pie for agricultural output; 1/3 of our land area is devoted to agriculture; Agri sector is our biggest employer;51% of Mindanaos labor force is engaged in agricultural activities; We contribute more than 1/3 of the countrys requirements for agricultural & fishery products.

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A number of our banana plantations are mostly found in region XI i.e. Lapanday, Stanfilco, etc. Large pineapple plantations are found in Bukidnon and Polomolok (Del Monte; Dole Phils.; Marsman Drysdale) Heavy manufacturing industries are mostly found in Region X (NSC, Iligan Cement,Petronas) and Region XI (PJACC, DUCC) Tuna Capital General Santos City in Region XII; we have more than 7 canneries in GSC Other large industries present in Mindanao Nestle Phils; RFM Corp., Universal Robina Corp.,Asia Brewery, Cargill Phils; Coca-Cola; San Miguel, Hoechst, Vitarich

As of December 2009, Mindanaos total trade posted a decrease of 24.50% which registered at US$3.49 billion (FOB value) as compared to US$4.62 billion in the same period last year. Mindanaos total export earnings as of December 2009 slumped by 27.73% with a value of US$2.19 billion from US$3.03 billion during the same period in 2008. Likewise, Mindanaos total imports registered a decrease of 18.38% from US$1.59 billion to US$1.30 billion as of December 2009. The decreases in export performance can be attributed to the effects of the global financial crisis. As reported by UNCTAD, world trade began to slow down in 2007 and has been shrinking at a fast rate since November 2008 in both volume and value as a result of the economic recession that began in the United States. Trade volume growth decelerated first in the United States and other developed countries1. Moreover, the export cargo was adversely affected by the global downturn, losing as much as 6.90 MMT or 20.66% during the year while import cargo slipped by about 2.05 MMT or 4.14%. The lower demand for prime export commodities such as mineral ores, nickel ores, lime, cold rolled coils and coco oil, etc. was evident in the sharp decline of foreign cargo throughput at the following gateway ports of Mindanao: Cagayan de Oro 4.03 MMT; Surigao - 4.14 MMT; and Nasipit - 0.61 MMT1. In terms of Philippine-EAGA performance, Palawan registered positive performance on both export and import. It registered an increase of 14.66% in total trade or US$600.85

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million as compared to US$524.02 million in 2008. It posted an increase of 14.26% in export while 15.83% in import.

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EXPORT: Coconut (copra), palm kernel or babasu oil is Mindanaos top export commodity for 2009 with18.29% share of its total export revenue Coconut (copra), palm kernel or babasu Oil (both crude and refined) ranked as the top export earner which has a 20.05% share of Mindanaos aggregate export revenue. It registered a value of US$438.51 million as of December 2009, a 49.36% decrease from US$865.89 million during the same period in 2008. Fresh Banana ranked second top earner with a share of 15.60% and an aggregate receipt of US$341.19 million which registered a decreased of 25.18% as compared to US$455.98 million during the same period in 2008. Tunas, prepared or preserved, ranked third with total export revenue of US$242.19 million reflecting a 23.62% decrease from US$317.10 million in 2008. Other top earners as of December 2009 were preserved pineapple: US$135.85 million; Nickel Ores and concentrates: US$122.24 million; Iron or agglomerates (sinters): US$91.69 million, Fruit & vegetable juices: US$83.10 million, Organic Chemicals: US$67.39 million, frozen tuna: US$65.11 million and Pineapple (fresh): US$51.16 million. Among the top 20 export commodities, food products as well as non-food products

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were not spared from the economic crunch except for fruit and vegetable juices and activated carbon which registered positive increases at 9.33% and 16.09%, respectively. Moreover, export on copper ores and concentrates registered a 30-fold increase as compared to the same period in 2008. IMPORT: Mindanao import also declined by 18.38% Rice remains to be our top import commodity in Mindanao which registered at US$205.02 million or a decrease of 54.37% as compared in 2008 which registered at US$449.34 million. Non-food items such as Semi-finished products of iron or non-alloy steel declined by 76.27% followed by Copra at 57.68% and Structures and parts of structures at 46.07%, among others. Moreover, food items such as Rice, Milk and Cream and Wheat also registered decreases at 54.37%, 43.07% and 30.04%, respectively.

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US market accounts for almost 26.18% of Mindanaos export United States of America (USA) is Mindanaos top export market with earnings of US$572.55 million or 26.18% share of the total exports of Mindanao. This value shows a decrease of 34.30% as compared to the export earnings of US$871.42 million in 2008 (see Table 2). Top three commodities exported to USA include Coconut (copra), palm kernel or babassu oil, both crude and refined (40.47%), Fruit, nuts and other edible parts of plants, airtight containers (18.39%) and Tunas (prepared or preserved, in airtight container) registered at 10.94% share to the whole export earnings for the country. Japan is our second export market with export earnings of US$473.33 million, accounting for 21.65% of Mindanaos aggregate export Income in 2009. This also showed a decrease of 34.52% as compared in 2008 which registered at US$722.88 million. Top three commodities exported to this country include fresh banana (42.69%), iron or agglomerates (19.00%) and fresh pineapples (7.62%). China ranked third with export earnings of US$187.08 million, accounting for 8.56% of Mindanaos aggregate export income in 2009 with a slight increase of 0.85% as compared in 2008. Top three commodities bound to this country include nickel ores (47.16%), Copper ores and concentrates (13.96%) and coconut oil, both crude and refined (8.69%). Among the top 20 Mindanao export market destinations, only China and Kuwait registered positive growth while others suffered a slumped. Export demands from Kuwait increased by 5.71% as compared in 2008. Fresh banana comprised half of their

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total export commodities from Mindanao.

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The top 3 performing investment sectors for 2008 are i.) power generation sector, ii.) hog/swine raising, and iii.) mineral extraction. The power generation sector got the largest investment equity share at PHP 5.112 billion or 37% (See Figure 4). This is through the combined capital infusion of South Bukidnon Bioenergy, Inc. and the Philippine Sinter Corporations power generation projects. South Bukidnon Bioenergy Inc. will build an integrated plant in Barangay Labuagon, Municipality Of Kibawe, Bukidnon. The plant will produce bio-ethanol and electricity from sugar cane. The project will also include the construction of a sugar cane mill and distillery for producing ethanol, a 10 mega-watt co-generation power plant, a carbon dioxide recovery plant and an effluent treatment plant. The plant is expected to be in operation in 2010. The Philippine Sinter Corporation, likewise, has invested in a 117 mega-watt co-generation power plant in Phividec Industrial Estate in Villanueva, Misamis Oriental. Hog/Swine Raising came in second with an investment equity share of 13% or PHP 1.819 billion. Monterey Foods in Sumilao, Bukidnon is investing in the construction of an 8,800 head-capacity, sow level farrow to finish hog farm. The facility is part of San Miguel Groups integrated Agro-Industrial Zone program in Northern Mindanao. The mining sector obtained an 11.7% share or PHP 1.598 billion. Apex Mining Co., Inc, and Philippine Mining Development Corporation are the industry players who have made investments on mineral exploration in the island. Apex Mining is putting in fresh capital amounting to PHP 1.264 billion for development of mining areas in Compostela Valley. They will focus their operations in the extraction of precious minerals like gold, silver, copper concentrates, zinc and lead. The Philippine Mining Development Corporation, on the other hand, is expanding its operations in the extraction and processing of gold. Both companies will commence commercial

operation by January 2010.

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Philippine economic zones (ecozones) are collections of industries, brought together geographically for the purpose of promoting economic development. Although designed to operate separately from the political and economic milieu of surrounding communities, Philippine economic zones do in fact interact with their neighbors. There are nine (9) ecozones in Mindanao. A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category 'SEZ' covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others.

Philippine economic zones (ecozones) are collections of industries, brought together geographically for the purpose of promoting economic development. Although designed to operate separately from the political and economic milieu of surrounding communities, Philippine economic zones do in fact interact with their neighbors. There are nine (9) ecozones in Mindanao. A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category 'SEZ' covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others.

BOI-registered direct foreign investments for 2008 had total value of PHP 1.704 billion. Sixty-percent (60%) of the foreign direct investment are from the Japanese investors. They have positioned their investment in the power generation sector, marine and petroleum products. They are followed by the Canadians who are in mining business with a 21% stake. The British and South Korean trailed taking a 4% share each of the FDI equity and are into the export of Cavendish banana, petroleum products and coco peat/coco fiber business.

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The Mindanao Transport sector composed of roads and bridges, airports and base ports. There are 3 alternate international airports in Mindanao which includes Davao, Zamboanga and General Santos airports. 12 Major ports in Mindanao includes: Zamboanga, Ozamis, Iligan, Cotabato, Cagayan de Oro, Davao, General Santos, Surigao, Nasipit, Polloc, Bongao and Jolo. The Strong Republic Nautical Highway (SRNH) of the National Government, offers an efficient and shorter way to travel to the Visayas and Mindanao regions. Transport cost from Mindanao through the Visayas to Luzon shall be reduced. It has reduced travel time by 10 hours, and reduced cost by 40% for passengers and 30% for cargo. The National Highway System shall be completed through these highly priority routes. About 62% of the roads in Mindanao were paved and only 38% remained unpaved.

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As of December 31, 2008, 63.84% of National road network in Mindanao is paved.

Since major links along the north-south backbone have already been completed, we are now pushing for the completion of the east-west lateral roads & other roads of strategic importance to provide lateral interconnection to the north-south corridor as well as provide access to important strategic areas & other coastal municipalities in both the mainland and offshore islands. These are some of the identified priority roads that would enhance the islands physical integration: Bayugan-Tandag Road, Sta. Filomena-Ticalaan Road, Malita-Don Marcelino-Jose Abad Santos Road, KalamansigPalimbang-Maitum Road, Lake Lanao Circumferential Road,Basilan Circumferential Road, Sulu Transcentral Road and Sangasanga-Lapid-lapid-Saldang Road A number of these projects are already ongoing while the rest are proposed for funding. It is crucial for the ongoing projects to be completed. Under the proposed projects of the DPWH Medium-Term Public Investment Program (MTPIP), the funding requirement for Construction/Improvement of roads is Php29.730 billion while for Maintenance/Rehabilitation is Php5.96 billion. In addition to the national road network, it is also equally important to improve the islands farm-to-market roads. It has been

93% of Mindanaos barangay roads are unpaved, which may critically affect the overall quality of agricultural products.
noted that about Roads leading to ports and airports are also important to link production areas to market centers. To name a few, these includes the Tagum-Davao-Gen Santos Road, Alale-PHIVIDEC Bypass Road and widening of sharp curve sections of Sayre Highway.

Considering the growing trend in containerization & increase in container traffic demand, there is an impending need to upgrade/rehabilitate existing roads or construct new roads to suit container & large-sized vehicle traffic. Current road design is not appropriate for container traffic, the volume of which is expected to increase by 5% annually

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Total No. of Bridges in Mindanao is 1,580. Breakdown as follows: Concrete = 1224 Steel = 150 Bailey = 151 Timber = 177

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Earthquake Zone Mindanao lies in the The Pacific Ring of Fire (or sometimes just the Ring of fire) The Ring of Fire is an area where large numbers of earthquakes and volcanic eruptions occur in the basin of the Pacific Ocean. In a 40,000 km horseshoe shape, it is associated with a nearly continuous series of oceanic trenches, volcanic arcs, and volcanic belts and/or plate movements. The Ring of Fire has 452 volcanoes and is home to over 75% of the world's active and dormant volcanoes. It is sometimes called the circum-Pacific belt or the circum-Pacific seismic belt.

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MEDCos function are as follows: Draw up an integrated Mindanao development plan; Prioritize and program inter-regional projects, explore sources of financing; receive and administer grants for these projects; Act as implementing agency for interregional projects; Monitor, evaluate and provide recommendations in the implementation of Mindanaos development plans and programs; Advocate policies that will foster balanced development of Mindanao; and, Promote investments in any field.

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MinDA has promoted inter-regional cooperation in Mindanao resulting in the emergence of Mindanao-wide government and private sector institutional structures that were established and continue to exist with MinDAs support. Among the

institutions and networks which have substantially improved teamwork and solidarity in Mindanao, and attested to MinDA having created a noteworthy identity and a supportive constituency are the following: (pls see team Mindanao slide)
Mindanao Lawmakers Association (MLA) Confederation of Mindanao Governors, City Mayors and Municipal Mayors League Presidents of Mindanao (CONFED Mindanao) Mindanao Business Council (MinBC) Kusog Mindanaw (Kusog) Mindanao Coalition of Development NGOs (MINCODE) Southern Philippines Tourism Council (SPTC) Mindanao Communicators Network MEDCo Task Forces on ICT, Roads, Energy, Water Transport Being the only agency with Mindanao-wide mandate, MEDCo became a lead convenor secretariat to key bodies which were created to specifically pursue policy, advocacy and development objectives such as the following:
CONFED Mindanao. The

Confederation of Provincial Governors, City Mayors and Municipal Mayors League Presidents of Mindanao (CONFED Mindanao) is an advocacy group of Mindanao Local Chief Executives which promotes peace and development, nation-building, and other pro-Mindanao advocacies. It was established in 1990 with the objectives as follows:

1. To institute common but peaceful approaches to peace and order in Mindanao; 2. To secure and insure a broader, wider, stronger representation and voice of the people and leaders from Mindanao in all branches and offices of the National Government of the Republic of the Philippines in order that Mindanao and its people shall be heard, considered and be given the consideration and importance that Mindanao and its people are entitled to in the affairs of the Republic of the Philippines; 3. To work for and insure that any and all representatives or Heads of Regional Offices assigned to the various regions of Mindanao shall come from and are from Mindanao are further identified with the feelings of oneness, unity brotherhood with Mindanao, its people and the Republic of the Philippines; 4. To work for and insure that development of unity, cohesion, cooperation and feelings of oneness of all people pf Mindanao as citizens of the Republic of the Philippines in the field of economics, development, and the art of government;

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5. To pursue genuine autonomy for local government units which shall be for all government units in Mindanao and not only on selective basis; 6. To advocate for policies in support of Mindanaos development, and to pursue other activities in consonance with law for a better Mindanao.
MSCFI. The Mindanao Studies Consortium Foundation, Inc. (MSCFI), a community of institutions that coordinate, facilitate, and disseminate researches, one of its advocacies is the institutionalization of MinDA in order to sustain a Mindanao-wide mechanism for the development programs and projects in Mindanao. The MSCFI sees the crucial role of MinDA in facilitating the participation of all sectors in Mindanao in order to alleviate poverty and attain peace in the island.

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The two-year project that run from March 2010 to March 2012 is designed to update, and transform the topographic maps to the Philippine Reference System of 1992. It aims to prepare digital topographic maps covering the entire Mindanao at the scale of 1:50,000 and to implement the necessary support to the wide and effective use of the digital topographic maps and Geographic Information System (GIS). It covers a review of existing conditions (i.e., organization setup, mapping system, facilities management, and control points); acquisition of satellite imagery; production of maps through digital mapping technology; and dissemination of topographic data. The target beneficiaries are private and public sectors from all institutions involved in infrastructure, environmental management, national and local government planning, tourism, investment and security. Among the expected project outputs include reports, satellite images, ortho-image maps, ground control point coordinates, 1:50,000-scale digital topographic maps for printing, and 1:50,000-scale digital topographic data for GIS applications. The geographic information that can be derived from updated topographic maps will be an indispensable tool for planning and development activities. Thus, it will facilitate effective and efficient delivery of government services and improve investment decisions of developers and investors. Outputs of the project will advance decisionmaking in terms of intensifying socio-economic and peace process development in

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Mindanao. It can also be utilized in conservation and preservation of natural resources alongside with disaster risk mitigation. The maps at 1:50,000 maps are valuable tools for an effective environmental management. Currently, subcontractors are doing field validation/survey in the areas. NOTE: THE PROJECT NEEDS LGUs SUPPORT/ ASSISTANCE ESPECIALLY IN CONDUCTING FIELD VALIDATION/SURVEYS.

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