APPENDIX B

(Legal Basis)

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 ILOCOS REGIONAL DEVELOPMENT PLAN (RDP) CY 2011 2016

CHALLENGES:
Building Resiliency in the Economy
The region is heavily dependent on the agriculture and services sectors, with a
combined average share of about 85 percent of the GRDP. The need to increase
the contribution of the industry sector is being underscored in order to pull
the overall growth of the economy.
The economy must rely on the less vulnerable sectors (industry and services)
those which are potentially capable of bringing up the regional economy, without
being affected much by external shocks.
Creation of more quality employment opportunities and raising labor productivity
The sectoral thrusts, i.e., agribusiness, construction, trade and tourism, pose
great prospects of generating more jobs in the region.

OPPORTUNITIES:
Entry of business process outsourcing
The economic opportunities presented by the outsourcing industries should be
harnessed as these could be a long-term investment of the region in scaling up the
economy. The continued rise in revenue levels of these fast-rising industries helped
buoy up the national economy. The BPO sector as well provides employment
opportunities to the increasing labor force population.
Public-Private Partnerships
One of the major strategies of the PNoy administration in advancing the country is
the encouragement and implementation of more public-private partnerships (PPP)
to attract more capital investments. The PPP strategy is considered an effective
means to implement programs and projects particularly in the infrastructure sector.

VISION:
Ilocos Region is seen to be aggressive in driving its economic growth utilizing the
untapped opportunities in the past as well as maximizing the available resources in
the region on the way to achieving its vision of becoming an agribusiness and
tourism powerhouse in Northern Philippines.

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GOALS:
To achieve a sustainable economic growth focusing on the regions growth drivers
(agribusiness, infrastructure, trade, tourism) and opportunities (business process
outsourcing);
To generate employment opportunities and to ensure job security and productivity
for the employed;
To improve competitiveness in education and manpower skills in the region;
To improve the state of environment and build capacities for communities to be
resilient.

TARGETS:
GRDP Targets
The region aims to increase the share of the industry sector to about an average of
18.5 percent of the overall GRDP by 2016 to achieve its long-term desire of 20
percent share by 2020. To realize this, the sector should be growing by an average
of 8 to 10 percent annually.
With the projected increase in share of the industry and sectors, the share of the
AFF sector will contract. Its growth, however, will still be increasing although at a
slower pace than the two other sectors. Annual growth rate should be around 4 to 5
percent.
Employment Targets
Employment should be growing by around 2.5 percent annually in order to reach
around 2.2 million employed persons by the end of the plan period.
The agriculture and services sectors will still be the foremost employers in the
region. The number of employed persons in the two sectors is expected to reach
797 to 809 thousand and 1,005 to 1,020 thousand, respectively, in 2016. The
industry sector is projected to employ about 360 to 366 thousand workers in 2016.

MORE COMPETITIVE TRADE, INDUSTRY AND TOURISM

The Industry Sector still holds to its forecast that the Trade, Industry and Tourism
be transformed into a more vibrant and dynamic sector of the regional economy in
order to significantly contribute to the creation of economic wealth, employment
generation, poverty reduction, environmental conservation and creation of an
environment conducive for business towards sustainable growth and development.
It is expected that the regions small and medium enterprises shall have been fully
developed to compete with local and international products, developed tourism-
related facilities that caters to the requirement of the local and international market,

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 developed skilled human resources that matches the needs of the industry, and an
enabling environment conducive for doing business that will attract more investors.
The focus of development shall be the growth nodes, which will be reinforced with
climate-proofing structures and measures in order to make them adoptive and
benign against climate changes. Eventually, these investments will create more job
opportunities in the region.
The following business-friendly strategies shall be implemented to attain the output
that we would like to achieve: (1) value-adding creation; (2) production investment
promotion; (3) institutional development and linkages with partners and
stakeholders; (4) adoption of good manufacturing practices; (5) adoption of
productivity and quality tools; and (6) actively pursue public and private
partnership.
The abovementioned strategies would step up credit assistance to MSMEs,
provision of appropriate technology, market assistance, conduct of
training/capability building activities, updated wage orders, productivity and
quality systems and tools, and infrastructure maintenance and development.

VISION
To transform the Trade, Industry and Tourism Sector into a globally competitive
sector significantly contributing to economic wealth creation, employment
generation, poverty reduction, environmental conservation and creation of an
environment conducive for business for sustainable growth and development.
GOALS
To economically integrate the regions comparative advantage and strategic
location in creating more market opportunities with dynamic North-East Asian
countries.
Prioritize economic infrastructure projects to attract more investments to the region
particularly inter-growth node projects.
To develop competitive and skilled workers that will complement manpower
requirement for the Tourism and Offshore and Outsourcing Industry, among others.
Ensure climate change proofing of economic infrastructures.
Support more inclusive growth through the development of the rural, upland and
lagging areas.

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AGRIBUSINESS
VISION
By 2016, the traditional farmers are developed into agri-based entrepreneurs
equipped with modern technologies, skills and resources to successfully compete
in the market.
GOALS AND OBJECTIVES
To create more jobs and generate higher income
To improve productivity and sustain food sufficiency and safety/security
To develop a modern and sustainable agriculture and fishery technologies and
facilities
To enhance agricultural resiliency/adaptability to natural disasters
To strengthen farmers/fisherfolks organizations and sustain active participation in
planning and policy-making
OUTCOMES
More jobs and higher income
Improved productivity, Sufficient and Safe Food
Modern Agriculture and Fisheries
Poverty Reduction

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 PROVINCIAL DEVELOPMENT AND PHYSICAL FRAMEWORK PLAN
(PDPFP) CY 2013 2018

CHAPTER V. LAND USE AND PHYSICAL FRAMEWORK

Sectoral Scenario
Agri-based Industrialization Maximum but sustainable development of agricultural
area for crop production, grazing/pasture area for livestock, aquamarine area for fishery
production, in the development of agri-based industrial areas for processing will be pursued
and intensified. Apart from the already existing small industries in the province, heavy,
medium and light industries will be likewise establish respectively in strategic places where
industrial estates, processing zones, and commercial complex will be located. Relatively,
a rationalize distiribution of infrastructure facilities supportive to various levels of
industries will also take place. With this, there will increase of employment and income
derived from tertiary and secondary services.

Means of Achieving the Strategy

Among the identified means to achieve the sectoral scenarios of the preferred
strategy are the following:
Encourage more public and private sector investments to engage in preferred large
industries to promote agro-industrial and countryside development.

CHAPTER IV. ISSUES, PROBLEMS, GOALS, OBJECTIVES, TARGETS AND

STRATEGIES

AGRICULTURE
Issues
Low level of productivity of some crops, fishery and livestock due to:
o Occurrence of pests and diseases to crops (bacterial leaf blight, corn plant
hopper, vegetable and fruit flies, capcid bug, cicid flies) resulting to the
various threats of climate change
o High cost of agricultural input resulting to low or inadequate/application of
fertilizers and pesticides

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Goals
Attain higher level of productivity through enhanced, climate responsive and
sustained agricultural, fishery and livestock production to ensure food security
Maintain a healthy, disease free and climate resilient condition of agricultural
crops and livestock products
To develop and promote environment friendly and sustainable production of
organic fertilizers

Objectives
To enhance agricultural production and income through implementation of
efficient hazard/ climate resilient agri-fishery and livestock technology
To eradicate / minimize pest and diseases through prevention and control
management system
To minimize production cost of agricultural inputs via organic means

Targets
Increase level of average productivity yield of the following crops/ commodities
for the plan priod
Minimized occurrence of pests and diseases through prevention and control
measures
Optimize production at minimize cost of inputs

Strategies
Improve agricultural productivity and competitiveness through farm
modernization and applications of efficient technology
Provision of trainings, technology transfer and technical support to farmers/fishers
to enhance their competencies and resiliency to hazards and climate change
threats
Massive IEC on pests diseases prevention and control
Sustainable production and utilization of organic fertilizers

INDUSTRY
Issues
Inability of MSMEs, local producers and manufacturers to compete with the
international and domestic market due to:
o Reluctance to adapt to modern technology and product packaging

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 o Difficulty in assessing financing/credit facility
o Limited market opportunities and linkages
o Lack of basic operational knowledge and expertise
Underdeveloped Economic Zones/ Industrial estates (continue hampered by lack
of vital infrastructure support and facilities)
Economic activities in the major trading, urban and growth centers are likely
affected by calamities/effects of climate change (flooding, storm surge, etc)

Goals
Development of more MSMEs that are country-side oriented, market driven, agri-
based and globally competitive
Development of economic zones and industrial estates that will propel economic
growth
Ensure the attainment of a well-coordinated system/ processes that encourages
economic and social interface between growth centers and urbanizing areas
considering the identified risks

Objectives
To develop and maximize the utilization of agri-based and potential industries and
convergence of commodities on key production areas as drivers of economic
growth
To achieve and sustain a higher level of industrial development and productivity
Open up opportunities for the establishment of light to medium industries in the
identified economic zones/ industrial estates
To reduce the impacts and mitigate the effect of various hazards in these areas

Targets
Export revenue from MSMEs manufactures products to grow by 5% annually
during the plan period
Industrial output of priority industries to grow by 10% at the end of the plan
period
Development of at least one PEZA approved Economic Zone/ Industrial estate at
the end of the plan period
Identify less vulnerable areas that could be developed as secondary growth
centers

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Strategies
Provision of technical, technological and financial support to MSMEs for them to
become competitive, locally and globally
Conduct of intensive product research, design and development to potential and
promising industries
Effect a better linkage between the agriculture and industry sector
Identify priority industries that can be the focus of development, promotion and
intervention
Undertake investment promotion and marketing activities, joint venture and
business matching and support facilities and providing fiscal incentives to locators
Provision of vital infrastructure support to the identified industrial centers and
economic zones
Enhance and strengthen the capacity of concerned stakeholders in carrying out
risk reduction and mitigation measures
Build economic alliances and partnership with manufacturers and retailers

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 INVESTMENT PRIORITY AREAS
City of Pangasinan

ECOZONE/INDUSTRIAL ESTATE DEVELOPMENT

Estimated
Proposed Status /
Project Title Brief Description Project
Location Remarks
Cost (Php)
The industrial zone
constitutes a residential area,
commercial area, With Pre-
administration area, factory investment
area and an import/export study; for
zone which will locate labor updating
intensive industries utilizing The local
Brgys. local indigenous materials government of
Capantolan, with high export potential. SUal is set to
1.Sual Macaycayaoa Among the preferred identify the
2 Billion
Industrial n, Baquioen, industries to be established specific area
Estate Baybay Sur & are: wherein to set
Pangascasan, Fish canning up the SIE
Sual Tinsmitting from the
Fiber industry among four
barangays as
Warehousing
per evaluation
Food processing
by PEZA
Garments officials
Electronics
Fabrication shop
At least 300 hectares of Groundbreakin
foreshore land in Lingayen g Ceremony
will be developed into a held on April
sprawling economic and 5, 2010
tourism zone. For Joint
Lingayen
A part of the area (about Venture
(Adjacent
2.Pangasinan 184 hectares) has been Initial Undertaking
Barangays:
Economic
Estanza,
designated for eco-tourism Estimated For Private
and and other sustainable Project Sector
Sabangan,
Tourism development projects by Cost is P10 Investment/PP
Malimpuec
Zone virtue of Proclamation No. Billion P
and
Capandanan
1258 issued by former Korean
President Fidel V. Ramos. Investors have
Proposed Projects are as submitted their
follows: intent to put up
o High-end Beach projects in the
Resort residences area.

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 o 18 Holes Golf Course Negotiation is
o Mid-Range on-going.
Subdivision On-going site
o Amusement Park development,
o Sky Tower earth-works
o Yatch Club and filling of
o Resort Hotel road network
o Water Sports Area
o Commercial Area
Approved by
PEZA Board
This 59 hectares special
on June 30
3.Sual ecozone is intended for light
1999 under BR
Special Baybay Sur, to medium non-pollutive
P915.615M No. 99-166
Economic Sual industries such as electrical,
For Private
Zone agro-industrial and cold
Sector
storage.
Investment/PP
P
Approved by
PEZA Board on
This 97 hectares industrial
Brgy. Dec. 4, 1996
4.Pangasinan park is intended for light to
Tagudin, under BR No.
Industrial medium scale, export P1.175B
Mabini, 96-383
Park I oriented, non-pollutive
Pangasinan
manufacturing industries. For Private
Sector
Investment/PPP
Proclaimed on
May 22, 1998
under the
Presidential
Brgy. Alos,
Proclamation
Alominos This 26.5 hectares declared
No. 1226.
5.Pangasinan City and industrial park is intended for
Approved by
Industrial Brgy. light to medium scale, P616.438M
the PEZA
Park II Tagudin, automotive, non-pollutive
Board on April
Mabini, industries.
27, 1998 under
Pangasinan
BR No. 98-085.
For Private
Sector
Investment/PPP
The project is conceived to
6.Eastern Approved by
Brgy. Sta. play a major Agro-Processing
Pangasinan PEZA Board on
Maria, Zone in the region To Be
Agro- February 26,
Umingan, considering the availability of Determined
Industrial 1997 under BR
Pangasinan agricultural resources in
Complex No. 99-166.
commercial quantities. This

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 57 hectares declared special For Private
ecozone is intended for agro- Sector
based, light industries and Investment/PPP
services.
For Pre-
Feasibility/ FS
The project involves the Preparation
development of a 36.76
For Private
7.Agro- hectares of land into an Agro-
Brgy. Unzad, Sector
Export Export Processing Estate To Be
Villasis, Investment/PPP
Processing which will create industrial Determined
Pangasinan
equilibrium in the three (3) Evaluated by
Zone
PEZA officials
spatial development areas of
the province. LGU preparing
for PEZA
Registration

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