Power lack in Mindanao among top PHL problems

Business Mirror

Published on Tuesday, 18 June 2013 21:39

Written by Bianca Cuaresma

Lack of adequate electricity supply in Mindanao and issues on infrastructure deficit, poverty and extreme weather conditions were among the top challenges of most regions in the Philippines last year, a Bangko Sentral ng Pilipinas (BSP) report showed.

The central bank’s 2012 report on regional economic developments released on Monday identified several economic opportunities and challenges in the regions across the country.

“A major challenge that could hamper regional development, especially for regions in Mindanao, is the lack of adequate supply of electricity that threatens various economic activities.… Furthermore, the prospect of extreme weather conditions as a result of climate change is a significant issue in the regions, especially those that are heavily reliant on agriculture. The timely implementation of infrastructure projects is, likewise, crucial in advancing regional development,” the central bank said in a statement.

Of the 17 regions in the country, 12 posted inadequate infrastructure as economic challenges, largely attributed to deficiency in transportation systems and the widespread power shortages in Mindanao.

The National Capital Region (NCR), along with Calabarzon, Mimaropa, Central Visayas and the Autonomous Region in Muslim Mindanao (ARMM), cited problems in traffic congestion, lack of land-based transportation facilities especially for goods, inadequate interconnectivity of island provinces as major factors that hampered economic growth last year.

Meanwhile, Bicol, Western Visayas, Northern Mindanao, the Davao region, Central Mindanao and
Soccsksargen, Caraga and the ARMM had major problems with power distribution citing high power rates, lack of other power sources, delays in the construction of power plants and insufficient and unstable power supply as factors that dampen economic growth in Mindanao. The Zamboanga peninsula reported the shortage of water supply as a key issue in the region. 

Infrastructure-related projects of the government were largely beneficial to Central Luzon, having seven infrastructure development projects last year. These projects were targeted at improving the facilities of Clark International Airport, road and bridge constructions in Aurora, Pampanga and Central Bulacan, the proposed development of Angat Dam and the completion of the Central Luzon Expressway through parts of Tarlac to Nueva Ecija.  

Several infrastructure development projects were cited as “opportunities” in the Cordillera Administrative Region), Cagayan Valley, Bicol, Calabarzon, Mimaropa I and Eastern Visayas.  

Poverty-related issues, such as malnutrition and child labor also remain to be one of the top problems of regions across the country. According to the BSP’s report, poverty remains to be a top challenge in areas in NCR, Western Visayas and Bicol as higher incidences of malnutrition and child labor loom in the said areas.  

In terms of agriculture, extreme weather conditions that bring about flooding or drought in certain areas largely affect productivity and economic growth in agriculture-dependent regions, such as Cagayan Valley, Central Luzon, Calabarzon, Western Visayas, Zamboanga and Davao.  

Other regions also cited pest-infestation, unregulated urbanization, forest degeneration and inadequate loans support as challenges to agriculture productivity.

The tourism sector, pending infrastructure improvements and entrepreneurial training are seen to boost economic growth, bringing opportunities to several regions nationwide.

“Identifying opportunities and challenges faced by the different regions enhances further the BSP’s forward-looking and proactive approach to monetary policy,” the BSP said.   source