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2002 State of the Province Address
RISING ABOVE THE CHALLENGES
By Gov. Erico B. Aumentado
(State of the Province Address [SOPA] delivered on January 7, 2002
at the Sangguniang Panlalawigan Session Hall)
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Vice Gov. Herrera, Distinguished Members of the Sangguniang Panlalawigan, Chiefs
of National and Provincial Offices, Fellow Public Servants, Ladies and Gentlemen:
I come to you on this historic occasion – my first State of the Province Address mandated by
the Local Government Code – brimming with hopes and prayers that united we can build a greater
Bohol. For it is in that unity, forged in the anvil of a common desire, that we can serve the
higher interest of our beloved Boholano people in particular and the Filipino nation in general.
MODEST ACCOMPLISHMENTS
In the last six months, we have worked in solidarity and cooperation to rise above the challenges
of the times: the economic difficulties and the residual effects of the last election, through
confidence-building and consultations. That harmonious relationship, specially between the Executive
and Legislative Branches of the Provincial Government, has given me the impetus to clearly set
our vision and goals for our beloved Bohol. Consequently, our administration succeeded to achieve
the following modest accomplishments, among others, to wit:
Mega Projects
First, we have laid the strong fundamentals for the implementation this year of Bohol’s mega
projects funded by the Japan Bank for International Cooperation (JBIC) Yen Loan Packages.
(a) The P2.1 billion upgraded Leyte-Bohol Interconnection Project Phase II (LBIP II) will be
bidded through international competitive bidding (ICB) by the National Power Corporation today
after we solved the social and road right-of-way problems of the 138 KV transmission lines from
the Tungonan Geothermal Power Plant which passes thru Baybay, Leyte to the Guadalupe Cable Terminal
Station (CTS) in Maasin City, Southern Leyte. The project can generate an additional 80 megawatts
to complete the 100 megawatts power generation for Bohol by submarine cable from the Guadalupe
CTS to the Tugas CTS in President Garcia and then to the Ubay Substation. It will be completed
in about one year from the start of the civil work.
(b) The P2.380 billion Bohol Irrigation Project Stage II (BHIP II) that can irrigate 5,300 hectares
of riceland in San Miguel, Trinidad and Ubay will undergo international competitive bidding
also by the National Irrigation Administration on March 2002. The project is expected to be
completed in five years.
(c) The P1.5 billion Bohol Circumferential Road Improvement Project Phase II (BCRIP II) will
likewise be bidded by the Department of Public Works and Highways on June this year. The project
covers the concreting of Candijay to Loay road denominated as Package I and Calape to Loay via
the Tagbilaran City bypass road as Package II. It is programmed for completion in about two
and a half years to three years.
Earlier on, we helped facilitate through focused follow up to the level of the JBIC headquarters
and the Philippine Assistance Pledging Session in Tokyo for the approval and funding of these
mega projects whose economic impact would be tremendous to our people.
Port and Airport
Second, in tandem with City Mayor Jose V. Torralba, PPA and DOTC-ATO, we have worked for additional
improvement of the Tagbilaran City Tourist Port, the Tagbilaran Airport runway extension and
terminal building. The Tagbilaran City Tourist Port expansion of 91 meters by 120 meters can
accommodate more big vessels and cargoes. On the other hand, the extended Tagbilaran Airport
runway can accommodate Boeing 737 aircrafts for Philippine Airlines, Air Philippines or Cebu
Pacific and the new airport terminal building with more passengers, offices and stores.
Agriculture: Regional Leader
Third, we have also laid the groundworks for Bohol’s Go Modern Agriculture (GMA). In fact, Bohol
is chosen as the pilot province on GMA rice production in Central Visayas given its irrigation
facilities and the support research and laboratory of the Agricultural Promotion Center (APC)
in Dao, Tagbilaran City and the Bohol Experimental Station (BES) in Gabi, Ubay.
The province is also in the forefront of the GMA corn, high value commercial crops (HVCC), fisheries
and livestocks programs.
We also succeeded to negotiate with the Japan International Cooperation Agency (JICA) for the
extension of the Bohol Integrated Agricultural Promotion Project (BIAPP) which aims at improving
the capability of farmers in irrigated areas and the quality of their lives.
Tourism: Bohol No. 2 Destination
Fourth, for the first time, the provincial government galvanized the key players in the tourism
industry into a solid and formidable force to reckon with. We provided the leadership and counterpart
fund in their endeavors to promote Bohol’s tourism. In return, the hotel and resort operators
reduced their rates by 40% to 50% as incentives for foreign and domestic tourists to come to
Bohol.
The unity and cooperation of Bohol’s hotel and resort owners, tour operators and restaurant
facilities resulted to Bohol’s having been chosen as the No. 2 tourists destination during the
last Travel Mart sponsored by the Department of Tourism and the Philippine Tour Association
on November 22 to 25, 2001 at the SM Megamall Trade Center in Mandaluyong City where Bohol lost
only to Palawan. Moreover, this is one of the major driving forces for the rebound of the industry,
albeit slowly, in the province.
The support of Mr. Hans Schoof, founding father of the Bohol Foreign Friendship Foundation,
Inc., contributed also to the triumph of Bohol’s tourism industry in that Travel Mart.
Bohol’s TUV ISO 14001
Fifth, pursuant to our commitment to build on the accomplishments of our predecessors, we complied
with the more stringent requirements for Bohol’s TUV ISO 14001 application in four months time.
Thus, Bohol achieved the distinction of being the first Local Government Unit in the Philippines
to receive the TUV ISO Certification under the Environmental Management System late last year
which we intend to sustain through our environmental program.
Similarly, we endeavored to complete the Garcia Provincial Memorial Hospital in Talibon and
continue the construction of the old capitol building and the capitol annex building. These
projects need additional funding which we must provide.
Packaging Funding
Sixth, we touched base with the various funding institutions on projects that would redound
to the poverty reduction in the province which the Divine Word College Research Center found
to be 87% during the previous administration.. The Department of Social Welfare and Development,
however, pegged the poverty level at 75%, while the Australian Agency for International Development
(AUSAID) scoping activity estimated Bohol’s poverty incidence at 82% last year.
Environment and Peace Initiatives
Seventh, we supported strongly environmental concerns including those of the Coastal Resource
Management Project (CRMP) and the Bohol Marine Triangle Project (BMT). In fact, we created Task
Force Kalikasan to enforce our laws designed to preserve and protect Bohol’s environment and
natural resources, and Task Force Kadagatan to coordinate in implementing, with the Coastal
Law Enforcement Council, our fishery laws and protect our marine resources for the sake of the
future generation of Boholanos. These task forces scored well in their drives.
Eight, the Provincial Peace and Order Council (PPOC) held the unprecedented rally for peace
and unity, the first multi-sectoral and multi-religious rally in the country last year. Despite
the rains, the huge rally was a smashing success. It was followed by a series of PPOC efforts
to lay the ground for the economic component of the campaign to win back the hearts and minds
of our brethrens supporting the insurgency movement.
Health, Education and Culture
Ninth, we commissioned a performance audit team on the provincial government’s operated hospitals
as a basis for the reforms we intend to pursue. Likewise, we directed a study on how to improve
the lot of public high school teachers who are paid by the provincial government of Bohol in
order that they can also deliver quality education to their students.
Tenth, we rehabilitated and improved the dilapidated Bohol Cultural Center and the Bohol Museum
in time for the Pres. Garcia Day celebration on November ultimo.
Political Will on Biddings and Fiscal Reforms
Eleventh, from Day One of our governance, we instituted bidding reforms. We directed the transparency
in our public biddings and cut down bureaucratic red tape at Capitol to minimize, if not eradicate
corruption.
Twelfth, we also implemented fiscal reforms that led to savings of P60,440,123.74.
To begin with, the Provincial Treasurer’s Office reported the cash position of the provincial
government as of June 29, 2001 as follows: General Fund, P64,761,266.14; Trust Fund, including
the P108,500,000.00 unexpended amount of the SALCON payment for the PPUD, P134,447,322.89; and
Special Education Fund which is a trust fund for education purposes only, P5,613,030.55 or a
total of P204,821,619.58.
Using conventional wisdom, the Provincial Legal Officer, advised the governor and our financial
managers to consider the SALCON payment of P155 million as a trust fund because of the pendency
of the class suit involving the Joint Venture before the Court of Appeals. Prudence dictated
us to follow that cautelary counsel. Consequently, we considered the General Fund of P64,761,266.14
as the only amount that could be disbursed and not the full amount of P204,821,619.58 deposited
in the bank.
In any event, we were more concerned on how to balance the revenues and expenditures for the
Calendar Year 2001 Provincial Budget which suffered from an IRA shortfall of P68,652,510.00
as the sum of P416,591,160.00 was released out of P485,243,670.00 initial IRA estimate for Bohol,
and foregone revenues of about P27.5 million with the sale of PPUD to SALCON according to the
Budget Officer. Besides, the heavy election spending took a heavy toll on the budget. Drastic
spending reforms were needed.
Thus, with the limited and depleted resources at our disposal, we directed austerity measures
including the non-filling up of vacancies which generated P20,901,991.74 as savings. We also
put in place cost-saving measures on the expenditures of the maintenance and other operating
expenses which saved the amount of P18,953,838.00. The total savings of our austerity and cost-saving
measures, therefore, amounted to P39,855,829.74.
Our administration – through the associations of governors, vice governors and regional development
councils - also requested Pres. Gloria Macapagal-Arroyo for the release of the unappropriated
Internal Revenue Allotment (IRA) representing the unreleased IRA for 1998 and 2000. Bohol got
P20,584,294.00 so that the sum when added to our austerity and cost-saving measures savings
amounted to P60,440,123.74. Thus, we were able to provide the provincial government’s qualified
personnel the extra bonus in addition to all the benefits due our personnel we granted them
as mandated by law.
We have to exercise political will in instituting the austerity measures including the non-filling
up of vacancies and hiring of unnecessary casuals to the dismay of our political leaders who
were then expecting the spoils of victory. But we have to stand firm in our resolve in order
to minimize, if not avoid either a budgetary or cash deficit at the end of the year which can
only be determined after the close of the Books of Accounts.
INITIATIVES FOR 2002
Ladies and Gentlemen, for the last six months we prepared the grounds for the initiatives we
shall launch this year.
Infrastructure Development
Infrastructure development rates high priority in the agenda since we believe that it is the
government’s role to provide the basic services as well as pave the way for the much-needed
investments to come into the province. Hence, infrastructure projects on power, irrigation,
road, bridges, seaports, airports, markets, waterworks, school buildings and public and private
tourism facilities shall be vigorously pursued.
Towards that end, we shall focus on the implementation this year of Bohol’s mega projects, namely,
the Leyte-Bohol Interconnection Project Phase II, Bohol Irrigation Project Stage II and the
Bohol Circumferential Road Improvement Project Phase II. These projects are strategic to Bohol’s
economic development.
We shall complement these vital infrastructures with the implementation of some bridges under
the President’s Bridge Program and the PPA ports development in Tagbilaran City, Tubigon, Getafe,
Talibon, Tapal Wharf in Ubay and Jagna, this province.
In collaboration with Rep. Eladio Jala (3rd District) and Rep. Roberto Cajes (2nd District),
we are working for the declaration as a tourism highway of the Loay Interior Road (LIR) to Trinidad
which passes by the world famous Chocolate Hills to qualify for total improvement pursuant to
the President’s recent State of the Nation Address (SONA). Similarly, we linked arms with Rep.
Edgardo Chatto (1st District) to complete the improvement of the Panglao Island Circumferential
Road.
We are working also with our congressmen on other vital projects such as the conversion of provincial
roads to national roads so that the provincial roads and bridges with a length of about 930
kilometers can be shortened and the limited resources of the provincial government can meet
the expenditure requirements for their maintenance and improvement. Likewise, we are one with
them on projects for farm-to-market roads, poverty reduction, tourism, education and health
promotion, among others, for the province. Our collaboration can also facilitate the BCRIP II
implementation. This is the beauty of unity and cooperation.
Flagship Projects: Tourism and Agriculture
We must remember that we have pursued the vision for Bohol to become a prime eco-cultural tourists
destination and a strong agro-industrial province having a high regard to the growth and protection
of the environment. Thus, our goal is to establish as our flagship projects sustainable eco-cultural
tourism and agro-industrial development sites in the province to encourage investments and employment
opportunities.
Our eco-cultural and agri-tourism destinations are so vast and varied that we have to cluster
them for more impact to tourists. This is our competitive advantage to our friendly competitors
in the industry.
Current Thrusts
This leadership has therefore set on carrying out the following additional main initiatives:
• Eco-cultural and agri-tourism development and promotion.
• Investment promotion in tourism and agriculture.
• Push the Panglao Airport development for inclusion in the JBIC funding, and the Panglao Island
Tourism Development.
• Improvement of the Chocolate Hills facility and services.
• Adopting a framework where the activities in the tourism industry are better coordinated and
managed.
• Providing environmental integrity through a more wholistic approach to waste disposal problem
solutions in tourists destinations and facilities.
• Agricultural modernization focusing on attaining rice sufficiency in Bohol, adopting new technologies
to make our products more competitive such as the establishment of modern greenhouses for high
value crops.
• Upgrading the quality of our livestocks and dairy production to enhance the nutritional diet
of Boholanos.
• Development of agricultural estates in delineated areas for GMA rice, corn, high value crops
including cassava, coconut and oil palm trees programs, and expanded seaweeds farming. For GMA
corn, we shall establish a tractor pool, corn shellers and mechanical dryers to service the
target areas.
• Protection and conservation of the environment, inland water and marine resources; and
• Implementation of poverty alleviation program as the convergent point of all economic activities.
Economic Drivers
We have identified Bohol’s two economic drivers that will propel Bohol’s development: tourism
and agriculture. Why are we focusing in these two sectors? The reason is not difficult to understand.
These two sectors have indubitably the highest potential for success on the basis of Porter’s
criteria of sustainable resource base, high market demand, developing support industries and
fierce local competition.
Social Services
We shall focus also on the delivery of our basic social services.
• Aggressive curative health care services and primary health care approach in the hands of
our people, Medicare Para sa Masa for the poorest among the poor, insurance for barangay health
workers, tanods and day care workers. Strengthen linkages with medical missions and philanthropic
NGOs with Save a Life and Sight Program, and Gift of Life Program. In the same vein, there is
a need to introduce reforms in our hospital operations and at the Integrated Provincial Health
Office (IPHO) for an effective delivery of health services.
• Maximizing the utilization of the Special Education Fund (SEF) to improve education in the
province, including the upliftment of locally paid teachers. Work harder for more school buildings
and teachers as part of the package of quality education.
• Scholarship grant for the poor but deserving students, youth and sports development.
• Support women empowerment, protection of abused women and children, harnessing the talents
of the disabled, senior citizens and veterans with corresponding mechanism.
Poverty Reduction Program
The fight against poverty is a formidable challenge in the light of Bohol’s high 82% poverty
level as found in the AUSAID area focused approach scoping activity on poverty. Perhaps, the
fight can be won in a decade of continuing capability building for livelihood and job generation
for our people. But our poor people in the countrysides and in the islands
need short-term solutions to their problems as most of them live by their daily earnings. Dole
outs however shall be out of the question.
To address the problem of poverty, we are linking with global and national funding institutions
whose varied projects would redound to poverty alleviation. Thus, beginning Year 2002, the following
Official Development Assistance (ODA) funders will have their presence felt in Bohol, to wit:
1. The Japan Bank for International Cooperation (JBIC) for the LBIP II, BHIP II and BCRIP II
mega projects.
2. The Japan International Cooperation Agency (JICA) for its Bohol Integrated Agriculture Promotion
Project (BIAPP) and the Japan Overseas Volunteer Workers.
3. The Australian Agency for International Development (AUSAID) for its area focused approach
project which may cover about 120 barangays in 10 years.
4. Heifer Project International (HPI)-Philippines for its Livelihood Enhancement Towards Sustainable
Human and Environmental Paradigm for Bohol expansion program of cattle, hog and poultry dispersal,
as well as water quality monitoring and surveillance in 10 more municipalities. HPI-Philippines
has worked earlier in seven towns.
5. The Belgian Integrated Agrarian Reform Support Program (BIARSP) with health component extended
program to 2006.
6. The European Community for its Acute Respiratory Infection Vaccine (ARIVAC) health program
in Panglao and Dauis.
7. The United Nations Development Programme (UNDP) for its Bohol Marine Triangle Project (BMT)
in tandem with the Environmental Philippines Foundation, Inc. (EPFI).
8. The United Nations International Children’s Education Fund (UNICEF) for its early childhood
development project.
9. The Asian Development Bank (ADB) for the Loay Interior Road (LIR) maintenance package improvement.
10. The United States Agency for International Development (USAID) for its Coastal Resource
Management Project (CRMP); and
11. The Sulu Fund for the Bohol Marine Triangle monitoring and Danajon Bank rehabilitation,
conservation and protection study in Northeastern Bohol.
The national and provincial governments have also launched the Kapit-Bisig Laban sa Kahirapan
(KALAHI) program in Danao and Dagohoy towns.
With the harsh realities continuing to hound the province and this leadership, we have created
the Provincial Poverty Alleviation Management Office (PPAMO) and the Bohol Employment Placement
Office (BEPO) to handle priority concerns of livelihood and employment generations under the
Office of the Governor. The PPAMO will handle capability building of beneficiaries, sourcing
funding and packaging projects. It may organize Samahang Nayon Multi-Purpose Cooperatives with
the Cooperative Development Authority (CDA) and the Provincial Agriculture Office (PAO), as
among the vehicles to undertake poverty reduction programs which must have to be well-supervised,
coordinated and monitored to ensure its effectiveness in the drive against poverty.
On the other hand, the Bohol Employment Placement Office is tasked to generate employment of
Boholanos in both the public and private sectors. BEPO undertakes skills and enhancement training
for job placement in coordination with TESDA, DOLE, POEA, DA, DTI, DOT, Bohol Chamber of Commerce
and Industry (BCCI) and other government agencies and non-government organizations which have
programs to develop the human resources.
It shall also conduct job fairs and livelihood bazaars in coordination with employers and financial
institutions.
Wherever possible, PPAMO and BEPO will work with the church poverty alleviation organizations
in areas of common concerns.
The two institutions for livelihood and job generations shall be backstopped by the special
bodies in the provincial government which are managing priority programs to ensure sustainability
thereon. These are the revitalized and more focused Bohol Investment Promotion Center (BIPC),
Bohol Environmental Management Office (BEMO) and the Center for Culture and Arts Development
(CCAD), as well as the line offices in the provincial government.
Hope springs eternal. With our united prayers and efforts, a miracle success could happen in
this endeavor.
Reforming the Bureaucracy
In our efforts to “clean” the transactions at Capitol, we are pushing for continuing reforms
to enhance productivity and delivery of services by cutting down on bureaucratic red tape. Specifically,
we shall undertake the following reforms:
• Transparency in all transactions.
• Electronic bidding for bulk purchases, as a cost-saving measure, and for bigger transactions
of the provincial government to ensure transparency and prevent corruption.
• Implementation of the new government accounting system and installation of a Financial Management
Information System (FMIS).
• Effective tax mapping and tax enforcement programs.
• Personnel profiling.
• Establishment of a Geographic Information System (GIS) for the provincial land use plan, minimum
basic needs, poverty and social issues and mapping data basis.
• Barangay socio-economic and physical profile.
• Integrated rural accessibility planning under the Provincial Planning and Development Office
(PPDO). The PPDO shall also program strategic planning for capability building and project packaging
in the various towns of Bohol as a means of inciting developmental goals; and
• Focusing on moral values enhancement through the Brotherhood of Christian Businessmen and
Professionals (BCBP), Couples for Christ (CFC) and other religious programs.
Some of the reform measures may take time to implement, but we shall endeavor to pursue them
with aggressiveness to attain good governance.
Peace and Order
The peace and order shall be given more emphasis as a basic requirement for investment, tourism,
agriculture and other economic development. Along this line, the PNP and the military brigade
in Bohol are tasked to attain this objective. They shall be supported by the Provincial Peace
and Order Council (PPOC) in that undertaking.
On insurgency, we are prepared to negotiate for peace with the insurgents if given the tacit
approval by Pres. Gloria Macapagal-Arroyo. For that purpose, Msgr. Leo Tumulak, chairman of
the Provincial Peace Forum, and I are ready to do the job. In the same breadth, we shall launch
the civic and economic components of our drive to win back the hearts and minds of those in
the areas classified as influenced, infiltrated and threatened by the inroads of communism.
We shall continue the fight against drug abuse with the Provincial Anti-Drug Abuse Council (PADAC)
now being operationalized. We shall direct the organizations of the municipal anti-drug abuse
councils down to the barangay level, and call on the school authorities to set up their respective
school anti-drug abuse council. This way, we can bring down the battle against drug abuse in
the grassroot level and usher in the “Kill Droga Movement” as our battlecry.
We shall also institute structural and procedural reforms at the Bohol Detention and Rehabilitation
Center (BDRC). Likewise, we shall work on a moral recovery program for the prisoners and their
jail guards, train the prisoners for livelihood and improve their health conditions, among others.
Organizational Strategies
Following the strategies of tourism and agriculture as Bohol’s economic drivers, we shall embark
on a responsive organizational strategy consistent with these pursuits.
In close partnership with the private sector, national government agencies and local government
units, primary and secondary support offices in the provincial government shall harness all
their resources to effectively and efficiently move towards this direction. Ultimately, all
our efforts shall redound to decreasing the magnitude of poor families and providing quality
employment to the unemployed workforce.
For the other programs, we shall harness a network of chiefs of offices and line agencies with
our assistants to coordinate and monitor the implementation of the aforecited projects.
Legislations Needed
The ambitious provincial initiated projects need funding. To generate such funding, we are proposing
the following legislative measures for the Honorable Sangguniang Panlalawigan to enact, to wit:
1. The general revision of real property taxes which by law should be revised every three years.
The last revision was in 1997 or five years ago. The revenue therefrom is already factored in
CY 2002 Provincial Budget.
2. A Resolution authorizing the governor to sign the Subscription Agreement to the National
Government’s IRA Securitization and Monetization Program on behalf of the provincial government
of Bohol with respect to its share in the P7.6 billion unreleased IRA for CY 2000 in the amount
of P26,036,949.00. The amount generated therein shall be utilized for the purchase of heavy
equipments which are badly needed for the maintenance of provincial roads.
3. A Tax Ordinance on sand and gravel brought to the province of Bohol from outside sources.
4. A Resolution authorizing the provincial governor to acquire and establish quarry sites as
an economic enterprise of the provincial government. The quarry materials from the sites can
be used for the construction of BHIP II, BCRIP II and other infrastructure projects of Bohol
thereby ensuring the payment of the taxes due the provincial government by the end-users thereon;
and
5. A Resolution authorizing the provincial governor to sign an Agreement with the Department
of Agriculture for the latter to provide a tractor pool, corn shellers and mechanical dryers
without cost for Bohol’s GMA corn program.
Final Appeal
Ladies and Gentlemen, we have laid our visions and goals for 2002 and the years beyond. The
tasks ahead of us are daunting and challenging. But together and God helping, we can rise above
the challenges ahead of us. Thus, I appeal to everyone, come, let us work together for a Greater
Bohol!
Thank you.
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