Mindanao has made a pitch for investments and financing at a recent forum organized to showcase the island region as a land of peace and plenty and to shed its image of being war-torn and poverty-stricken. It is positioning itself as a catalyst for growth in the Philippines and in the BIMP-EAGA subregion.
“Mindanao of before and Mindanao now is different. Mindanao today provides a golden opportunity for all of us, for business, for tourism, and for other productive ways,” Mindanao Development Authority (MinDA) Chair Maria Belen Acosta said in her address at the second Mindanao Development Forum held in Davao City on 18 May.
She enjoined investors, development organization representatives, national and local government officials, and members of the diplomatic community “to make Mindanao a showcase of peace and progress.” She added that their presence at the forum is “a huge vote of confidence for all of us,” showing the world that Mindanao is safe. “Mindanao is ready for investments. Mindanao is ready for the future,” she said.
MinDA organized the forum, only the second in 10 years, because there is a need to correct misconceptions, especially on the peace and order situation. "All our efforts for development will be for naught if we cannot have a paradigm shift, if we cannot change the perception of Mindanao,” Acosta said. “We should portray Mindanao now not as a land of strife, not as a land of doubts, but a land of plenty, a land that is peaceful, beautiful, bountiful.”
In 2022, the Mindanao economy grew 7.2% and contributed 17.2% to the Philippines’ gross domestic product. In her presentation, MinDA Undersecretary Janet Lopoz said the growth shows Mindanao has bounced back from the ill-effects of the pandemic, with growth rate among the administrative regions in Mindanao ranging between 5.9% and to 8%.
A show of force
Acosta’s call was echoed by the country’s macroeconomic managers, who committed to support efforts to spur investments and development in Mindanao during the forum.
In his address, National Economic and Development Authority Secretary Arsenio Balisacan said several regions in Mindanao demonstrated robust poverty reduction between 2015 and 2018. While poverty incidence increased in some regions in Mindanao between 2018 and 2021, others saw poverty rates fall. The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) recorded the largest decrease in poverty incidence at 37.2% in 2021 from 61.8% in 2018. “This accomplishment showcases the economic resilience of Mindanao,” he said.
Improving connectivity through the expansion and upgrading of infrastructure in Mindanao remains a top priority for the current administration in the next 6 years, he said. He also assured of the government's commitment to ensure peace and security in the country, particularly in Mindanao.
Finance Secretary Benjamin Diokno likewise touted Mindanao’s progress, noting that during the Duterte administration the island region became the focal point of flagship infrastructure projects that aim to expand its production, boost agriculture, and facilitate the movement of goods and people. “We have made progress on multiple fronts, but the work is far from complete. The administration of President Ferdinand Marcos Jr. is determined to see through this transformational work and turn the land of promise into an economic powerhouse,” he said.
Diokno said of the 3,770 infrastructure priority projects across the country, 1,310 are in Mindanao, worth about 1.2 trillion pesos ($21.4 billion). As of end-March, the NEDA Board, which is chaired by Marcos, approved 194 high-impact infrastructure flagship projects worth up to 9 trillion pesos, with at least 30 of the projects directly supportive of investments in Mindanao. The projects will be financed through a mix of funding from development partners, official development assistance, general appropriation from the national government budget, and public–private partnerships. The list includes the Mindanao Railway project, the Samal Island–Davao City Connector project, the Cagayan De Oro Coastal Road, Davao City Expressway, the new Zamboanga Airport, and the Sayak Airport in Surigao del Norte.
“The Department of Finance stands ready to support the Mindanao Development Authority by strengthening its relationship with bilateral and multilateral development partners. We are continuously working with international development partners on priority programs and projects in key sectors in Mindanao,” said Diokno.
Improving connectivity through the expansion and upgrading of infrastructure in Mindanao remains a top priority for the current administration in the next 6 years. Photo credit: Mindanao Development Authority
Gateway to BIMP-EAGA
Diokno said the Department of Finance is also committed to assist MinDa in the implementation of the Brunei Darussalam–Indonesia–Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Vision 2025, which details the subregion's economic and development agenda, and in making Mindanao a key economic driver in the subregion. He said BIMP-EAGA’s rolling pipeline of priority infrastructure projects serves as an opportunity for the Philippines to leverage on the recent developments in the subregion.
In the recently held 15th BIMP-EAGA Summit in Indonesia, leaders said the number of priority projects in the subregions doubled to 126 after 6 years, amounting to $34.45 billion. The projects consist of roads, bridges, and railways; seaports and airports; cross-border facilities and inland transport services; ICT infrastructure; power interconnections; and urban development infrastructure and services.
Pursuing cooperation in BIMP-EAGA is also part of the 10-point agenda that MinDa is pursuing to achieve inclusive and sustainable development for Mindanao by 2030. The agenda comprises the following:
- Agenda 1: People's well-being,
- Agenda 2: Food, water, and energy,
- Agenda 3: Jobs and industry,
- Agenda 4: International partnerships and BIMP-EAGA,
- Agenda 5: Connectivity,
- Agenda 6: Digital innovation,
- Agenda 7: Ecological integrity,
- Agenda 8: Preparedness and resiliency,
- Agenda 9: Peace, governance, and institutions, and
- Agenda 10: Enabling conditions.
Lopoz said the 10-point agenda aims to accelerate Mindanao’s growth momentum. “We are now in the stage of transitioning economically, politically, and socially from being conflict-affected into a new era of peace building,” she said. “Our approach has to change, the kind of interventions, the kind of programs that we design has to change.”