MEDCo-supported, Ongoing Programs and Projects

The GEM-3 Program, a five-year (2008-2012) development program funded by the United States Agency for International Development (USAID) in support of the national government’s initiative in effecting peace and development in Mindanao. The program will operate throughout Mindanao, but has a special focus on ARMM and other conflict-affected areas of Mindanao (CAAM). It is a grant for economic development, consolidation of peace, infrastructure development and strengthened education and governance in Mindanao.

GEM works with producer associations and cooperatives; the Mindanao Business Council, the ARMM Business Council, chambers of commerce and private firms; PTCAs of schools in conflict-affected areas of Mindanao, the Government of the Autonomous Region in Muslim Mindanao, national government line agencies, provincial and local governments, bilateral and multilateral donor agencies. Among the accomplishments of the program are the following:

Progress to date:

On Infrastructure

During the year, GEM was able to begin the construction of 3 out of the 4 concurred regional impact projects (RIP) namely the Jolo Water System with a contract price valued at PhP 23.8 million or US $ 595,000 (PhP 40 = US $ 1) the Sanga-Sanga Airport Runway Project with a contract price of PhP 100.19 million or US $ 2.5 million, and the Jolo Airport Runway with a contract price of PhP 141.72 million or US $ 3.54 million. In addition, 194 Barangay Infrastructure Projects have been concurred by MEDCo and USAID wherein 45 were completed in identified conflict areas with a compound value of PhP 30.43 million or US $ 760,740.

On Business Development

GEM was able to establish 3 new chambers of commerce in Pagadian city, Surigao City, and in Parang in Maguindanao. Part of the deliverables corresponding to the establishment of these private sector/industry organizations include the conduct of trainings and capacity building initiatives in the areas of investment planning, entrepreneurship, financial management, and preparation of business proposals, among others. Continuing support to previously assisted chambers of commerce in Tawi-Tawi, Sulu and Autonomous Basilan were extended by GEM such as the installation of electronic business permit processing and licensing systems, electronic real property tax system, and assistance in the completion of information strategic plans, among others.

To pump-prime Mindanao exports, GEM identified fresh fruits, dried/dehydrated fruits, fruit juices/puree, frozen fruits, high value horticulture products, aquaculture, and sardines (bottled/canned) as priority export commodities. As of 2nd semester these sectors have achieved 13.64% growth in volume and 10.425 in value. As of FY 2008, volumes of exports were at 18,221 metric tons, valued at PhP 1.03 billion or US $ 25.84 million. Highlights of other key achievements of GEM for business development during the year were as follows:

• Export Market Development
• Undertaken preliminary market promotion and advocacy with DA and DTI
• Worked with Mindanao companies/processors, consolidators, and exporters as “market conduits” of small holder/growers.
• Facilitated direct referrals
• Domestic out-shipment
• Provided marketing and quality enhancement assistance for local growers/suppliers
• Conducted complementary activities such value chain enhancement and competitiveness training
• Facilitated market-matching encounters
• Fruits, Vegetables and other Horticulture
• Facilitated linkage with major buyers such as the ANI-Nurture, Inc. (ANI) the biggest concessionaire of SM supermarket network.
• Tapped Asian Vegetables for access to Cebu market
• Assisted the regular sourcing of raw materials for processors
• Conducted Technology and Quality Improvement trainings on Good Agricultural Practices (GAP)
• Assisted key fruit-grower associations such as: Mindanao Fruit Industry Development Council, Greater Northern Mindanao Industry Development Foundation, Mango Growers Association of Iligan City, Banana Industry Development Association of Region X, Kidapawan Banana Growers Association, General Santos-Sarangani Fruit Cooperative, Misamis Occidental Fruit Growers, Lala Calamansi Growers, Esperanza Calamansi Growers, Mindanao Fresh Fruit Shippers Association, and Sarangani Federation of Fruit Industry Associations
• Developed the commodity clustering of Northern MindanaoVeggies
• Established access of NorMin Veggies to Cebu market through Metro Gaisano
• Aquatic Resources
• Provided technical assistance to Mega Aquaculture Corp in expediting the production of abalone spat and grouper fry in leasing the Tawi-Tawi High-Value Multi-species Hatchery
• Engaged 20 MNLF clusters in Tawi-Tawi and 16 clusters from Sulu, Basilan and Zamboanga provinces for the production of high-value marine grouper
• Provided assistance to the sardine industry in marketing, seaweed industry in value chain enhancement, and tuna industry locating alternative fishing areas.
• Warehousing, Cold Storage and VHT
• Helped new private sector investors/locators introduce and market newly built facilities to prosective users such as Jentec Corporation for the cold storage facilty and Southern Philippine Fresh Fruits Corporation for the VHT facility.
• Assisted proponents to prepare plans to establish post-harvest facilities, and in developing project proposals.
• Business Process Outsourcing
• Identified the cities of Zamboanga, Iligan and Marawi as new BPO hubs in Mindanao
• Generated information for the development of detailed BPO investment profiles for the identified cities
• Obtained locator requirements, local partners for subcontracting arrangements with Manila/Davao BPO.
• Tourism
• Worked with ARMM Tourism Officers Association for the development of the ARMM Regional Tourism Industry Development Program leading to the development of a private-sector led tourism association
• Mining
• Generated a list of mining firms operating in Mindanao
• Held preliminary discussions with Sagittarius Mines, Inc and PHILEX Mining regarding collaboration to strengthen mining firm’s community outreach/development efforts.
• Former Combatant Reintegration
• Conducted 18 training activities benefiting 840 former combatants/community members.
• Completed post-harvest facilities for live fish transport in Tawi-Tawi, solar dryer in Sultan Kudarat, multi-commodity packaging facility in Lanao del Sur, and pre-shipment facility for milkfish fingerlings in Sarangani Province

On Work Force Preparation

GEM has completed installation of computers and Internet connections to 24 schools in conflict affected areas providing Internet connections to some 21,784 peoples as a result of USG assistance valued at US $ 253,957 or PhP 10 million.

In the areas of Governance, GEM facilitated the approval of the Revenue Enhancement Program designs by USAID for the first 4 LGUs beneficiaries namely: Pagadian, Lamitan, Molave, Gumigag and Buug. The Program also facilitated and assisted 19 intern who have completed the Congressional Internship Program for Young Muslim Leaders (CIPYML).

On Special Projects and Support Services

Special projects in the current year include the development and preparation of local ordinances, developing bidding guidelines, and conduct of marketing campaigns for Cotabato City; assistance to Globe Telecom in designing and roll-outing WiMax network in Zamboanga, and establishing a workgroup with Intel and Cisco Systems; and assistance to MEDCo in designing and implementing. GEM also facilitated 10 high level visits and missions by US key officials in Mindanao as part of its Support Services.

On Communications

In promoting Mindanao vis-a-vis GEM initiatives, GEM was able to produce 59 articles and photo releases, 116 local/provincial print placements, 93 national print placements and 151 on-line placements.