PGMA's Speech during the the 56th Anniversary of the Development Bank of the Philippines

PGMA's Speech during the 56th Anniversary of the Development Bank of the Philippines

Bulwagan ng Diwang Pilipino, Penthouse DBP Head Office Bldg, Makati City (23 Jan 2003)

THANK YOU VERY MUCH SECRETARY CAMACHO.

AND TO DBP, HAPPY ANNIVERSARY TO ALL OF YOU!

I'D LIKE TO GREET DBP CHAIRMAN LANI NAÑAGAS; DBP PRESIDENT MON PATERNO; AND
WITH ME TO GREET YOU ARE OUR CABINET MEMBERS: SECRETARY VINCE PEREZ,
SECRETARY ROMY NERI, SECRETARY MIKE DEFENSOR, SECRETARY MAI JIMENEZ; AND
THE OTHER OFFICIALS OF THE HOUSING SECTOR LIKE PRESIDENT QUIMBO OF THE
PAG-IBIG; AND WE HAVE A NUMBER OF GOVERNORS WHO ARE PRESENT HERE, AND I
HOPE THEY GET LOANS FROM DBP. SO... WELL, THEY HAVE LOANS,
THEY APPLIED BUT I HOPE DBP APPROVES THE LOANS. AND OF COURSE,
I'D LIKE TO GREET THE WHOLE DBP FAMILY.

YOU KNOW, I WAS TELLING THE OFFICERS OF DBP TODAY WHEN I WAS ENTERING THE
ELEVATOR THAT I REMEMBER VISITING DBP WHEN I WAS PRESIDENT'S DAUGHTER.
AND I SAID, "I WONDER IF SOME OF THE EMPLOYEES WHO WELCOMED ME THEN AND
LISTENED TO ME ARE STILL AROUND?" AND LANI SAID MAYBE SOME OF
THEM, BECAUSE THE TURNOVER IN DBP IS VERY MINIMAL. DBP IS A VERY GOOD HOME
FOR GOVERNMENT WORKERS. AND WHETHER OR NOT SOME OF THEM ARE IN
THIS HALL, I AM VERY PROUD THAT WE HAVE AN OUTSTANDINGLY HONEST WORKING IN
DBP AS RECOUNTED BY MON PATERNO WHOSE NAME AND IDENTITY WILL HAVE TO BE
ANONYMOUS FOR A LONG TIME TO COME FOR HIS OWN SAFETY. BUT HE IS THE SON OF
A FORMER DBP EMPLOYEE. MAYBE HIS FATHER WAS THERE IN THAT AUDIENCE. AND
I'M VERY PROUD OF THE TRADITION OF INTEGRITY IN THE DBP. AND
IF ONLY FOR THAT REASON, I'M HAPPY I CAME TO THIS ANNIVERSARY.

BECAUSE I SELDOM ATTEND ANNIVERSARY CELEBRATIONS. BUT I DECIDED TO MAKE
AN EXCEPTION OF DBP TODAY, EVEN WITHOUT KNOWING ABOUT THE OUTSTANDING
HONEST PUBLIC SERVANT. THE REASON IS THAT I THANKED DBP -- YOU HAVE SEEN
MON PATERNO'S PRESENTATION OF THE FOUR MAIN PROGRAMS -- DBP IS A MODEL OF
HOW A BUREAUCRACY SHOULD BEHAVE REGARDING POLICY. IT SHOULD TAKE ITS CUE
FROM THE PRESIDENT OF THE PHILIPPINES. AND I CONGRATULATE DBP THAT ITS
FOUR MAIN PROGRAMS COME DIRECTLY FROM MY POLICY DIRECTIVES.

>AND OF THESE FOUR MAIN PROGRAMS OF DBP, IN TWO OF THEM, DBP IS PLAYING A
LEADING ROLE. AND THAT IS WHY I CAME TODAY TO HIGHLIGHT THE LEADING ROLE
OF THE DBP IN TWO OF THESE PRIORITIES THE DBP PLAYING THE MAIN SUPPORT TO
TWO PRIORITIES OF MY MICROECONOMIC -- OH, ROMY NERI, I DID NOT ACKNOWLEDGE
YOU EARLIER. YOU'RE NOT LISTED HERE -- OKAY. ANYWAY, WHEN I REMEMBER THE
MICROECONOMIC PROGRAM THEN I REMEMBER ROMY NERI BECAUSE THAT'S WHY I
RECRUITED HIM TO BECOME SECRETARY OF PLANNING.

AND IN THE MICROECONOMIC PROGRAM THAT ROMY NERI HAS BEEN PUSHING ALL THESE
YEARS, AND WHICH HAS BECOME NOW THE FOCUS OF MY ADMINISTRATION, DBP PLAYS
THE LEAD IN ONE, AND I WANT IT TO PLAY THE LEAD IN A SECOND ONE. WHAT ARE
THESE TWO PRIORITIES?

>THESE TWO PRIORITIES, AS I MENTIONED LATER, ARE PART OF THE LEGACY THAT I
SHALL LEAVE BEHIND AFTER MY PRESIDENCY. THESE TWO PRIORITIES WILL WORK ON
A LEGACY THAT WILL HAVE A LASTING IMPACT ON FUTURE GENERATIONS.

ONE MISSION IS TO FUND -- WHAT HAS ALREADY BEEN PRESENTED AND ROLLED OUT
NOW UPON MY INSTRUCTIONS -- A GRAINS AND COLD CHAIN AND NAUTICAL HIGHWAY .
A CHAIN OF ROLL-ON/ROLL-OFF OR RO-RO FERRY TERMINALS AND FERRY BOATS, A
CHAIN OF GRAIN SILOS, A CHAIN OF COLD STORAGE FACILITIES THAT WILL ALL
TOGETHER REDUCE CARGO COSTS FROM MINDANAO TO LUZON.

TO MARK THIS ANNIVERSARY, YESTERDAY I SIGNED AN EXECUTIVE ORDER PROVIDING
FOR GREATER PRIVATE SECTOR PARTICIPATION IN THE RO-RO TERMINAL SYSTEM.UNDER THIS EXECUTIVE ORDER, THE RO-RO TERMINAL SYSTEM BECOMES PART OF THE
NATIONAL HIGHWAY SYSTEM. YOU SEE THAT IN THE MAP. AND ITS... THE FIRST
ONE WILL BE CALLED THE "STRONG REPUBLIC NAUTICAL HIGHWAY." ALL THE WAY
FROM DAPITAN IN MINDANAO UP TO BATANGAS IN MANILA, IN LUZON. WHAT DOES
THIS MEAN, ROAD VEHICLES MOVING THROUGH THIS SYSTEM AND OTHER SYSTEMS TO BE
PROVIDED, WILL NOT BE BURDENED BY TRANSPORT PROCEDURES AND HIGH COSTS.

THE RO-RO TERMINAL SYSTEM WILL BE LIBERATED FROM RED TAPE BY THE REDUCTION
AND SIMPLIFICATION OF DOCUMENTARY REQUIREMENTS. THE IDEA IS TO LET TRAFFIC
THROUGH WITHOUT DELAY ALONG THE LAND AND NAUTICAL HIGHWAY. I HAVE DIRECTED
THE MARINA, THE PHILIPPINE PORTS AUTHORITY, THE CEBU PORTS AUTHORITY, AND
OTHER AGENCIES TO MAKE SURE THAT THIS "STRONG REPUBLIC NAUTICAL HIGHWAY"
WILL HAPPEN.

AND UNLESS THERE ARE OBVIOUS ENVIRONMENTAL HAZARDS, I'VE ALSO DIRECTED THE
DENR TO ISSUE AN ENVIRONMENTAL CLEARANCE CERTIFICATE TO ENABLE THE
CONSTRUCTION AND OPERATION OF THE TERMINAL FACILITIES.

THIS RO-RO FERRY SYSTEM IS PART OF WHAT THE OFFICERS HAVE CALLED IN THEIR
PRESENTATION TODAY, "DBP's SUSTAINABLE LOGISTICS DEVELOPMENT PROGRAM."
THIS IS A PROGRAM WHICH WILL POUR 20 BILLION PESOS TO FINANCE STORAGE,
FERRY BOAT AND PORT FACILITIES IN MINDANAO THROUGH THE VISAYAS UP TO LUZON.

OUT OF THAT AMOUNT, THE DBP HAS EARMARKED 7.5 BILLION PESOS FOR THE CHAIN
OF ROLL-ON/ROLL-OFF FACILITIES.

THE OTHER PART OF THE SUSTAINABLE LOGISTICS DEVELOPMENT PROGRAM IS A FOODAND GRAINS HIGHWAY MADE UP OF GRAIN SILOS AND COLD STORAGE FACILITIES.
THROUGH THEM, WE SHALL INTRODUCE MODERN CARGO STORAGE, HANDLING AND
TRANSPORT SYSTEMS UNDER PROPER QUALITY CONTROL MANAGEMENT.

THIS WILL DRASTICALLY REDUCE THE PRICE OF BASIC COMMODITIES BY LENGTHENING
THEIR SHELF LIFE AND IMPROVE FOOD SUFFICIENCY AT THE LOCAL, REGIONAL AND
NATIONAL LEVELS.

THE PROGRAM IS ALSO EXPECTED TO SPUR GREATER ECONOMIC ACTIVITY IN THE
COUNTRYSIDE, ESPECIALLY MINDANAO AND THE VISAYAS, AND ENHANCE OUR OVERALL
GLOBAL COMPETITIVENESS. IT IS ALSO EXPECTED TO IMPROVE THE WELFARE OF
CONSUMERS IN THE URBAN CENTERS BY MAKING FOOD MORE AVAILABLE TO THEM AT
BETTER PRICES, ESPECIALLY IN LUZON AND THE VISAYAS.

I HAVE INSTRUCTED THE DBP TO GO FULL BLAST AND CONCENTRATE ON THIS PROGRAM.
SINCE THIS PROJECT WAS LAUNCHED IN AUGUST LAST YEAR IN ILIGAN CITY,
FOLLOWED BY A PRESS CONFERENCE IN MALACAÑANG, THE DBP I UNDERSTAND HAS
ALREADY RECEIVED 29 LOAN APPLICATIONS.

AND I'M HAPPY TO HEAR THAT THE DBP HAS APPROVED AND RELEASED THE LOANS FOR
THREE OF THESE APPLICATIONS: THE SOUTHSEA FISHING VENTURE COLD STORAGE IN
GENERAL SANTOS CITY, THE OZAMIS-KOLAMBUGAN RO-RO FERRY, AND THE RO-RO
FERRY PORT IN BATO, LEYTE. THESE THREE PROJECTS RECEIVED A 180 MILLION
PESOS IN LOANS FROM THE DBP.

THREE MORE LOAN APPLICATIONS, I UNDERSTAND ARE UNDERGOING THE FINAL DUE
DILIGENCE. THESE ARE FOR THE ACQUISITION OF RO-RO VESSELS FOR THE
FOLLOWING ROUTES: LUCENA-MARINDUQUE, QUEZON-POLILLO AND NEGROS-CEBU. THEPROCESSING OF THESE LOANS IS EXPECTED TO BE COMPLETED BY MARCH OR APRIL. IF
ALL GOES WELL, THESE THREE PROJECTS WILL RECEIVE 250 MILLION PESOS IN
LOANS FROM THE DBP.

BUT REMEMBER, THE FUND AVAILABLE IS 20 BILLION PESOS, AND THERE ARE 48 LEGS
IN THE MASTERPLAN FOR THE NAUTICAL GRAINS AND COLD STORAGE HIGHWAY. I URGE
DBP TO FAST-TRACK THE APPROVAL OF THE OTHER LOANS IN THE PIPELINE. AND I
HOPE THAT WITH THE EXECUTIVE ORDER I SIGNED YESTERDAY, MORE INVESTORS IN
THE GRAINS COLD STORAGE AND NAUTICAL HIGHWAY WILL APPLY FOR LOANS WITH THE
DBP. I MENTIONED THE GOVERNORS WHO ARE PRESENT HERE. I SEE VERY QUICKLY
GOVERNOR JUN DY AND GOVERNOR ROSETTE LERIAS. IF GOVERNOR JUN DY HAS A
PENDING APPLICATION IN BEHALF OF THE PROVINCE OF ISABELA. AND
THIS IS FOR A COASTAL SERVICE BECAUSE WE HAVE NO ROADS GOING TO PALANAN,
DINAPIGE, DEVILICAN AND ALL OF THOSE TOWNS IN THE PACIFIC COAST ON THE
OTHER SIDE OF THE SIERRA MADRE. AND THEY SHOULD BE ABLE TO GO FROM ONE
TOWN TO ANOTHER IN THE PACIFIC COAST BY COASTAL SERVICE, BOAT SERVICE. AND
THE FISHERMEN OF THOSE AREAS, IF THIS IS AVAILABLE TO THEM, WILL NO LONGER
BE MARGINAL FISHERMEN, THEY WILL BE ABLE TO COMPETE WITH THE FISHERMEN FROM
THE NEIGHBORING ECONOMIES WHO ARE FISHING IN THOSE WATERS INSTEAD OF OUR
OWN. SO I HOPE THAT'S ONE OF THE PROJECTS THAT WILL BE APPROVED IN THE
NEXT FEW MONTHS.

HOPEFULLY ALSO, WITH THE E.O., MORE LOANS CAN BE GRANTED BY THE BANK.
BECAUSE BY EXECUTIVE ORDER NOW MAKES IT VERY CLEAR THAT PRIVATE PORT
OPERATORS CAN GET INTO THE BUSINESS. BECAUSE THAT IS PART OF HIGHWAY,
NOT PART STRICTLY OF A PORT SYSTEM. SO I URGE THE DBP TO FAST-TRACK THE
APPROVAL OF THE LOANS THAT ARE IN THE PIPELINE.

THE OTHER LEGACY THAT I HOPE DBP WILL HELP ME LEAVE THE COUNTRY BEYOND MY
PRESIDENCY IS THE REVIVAL OF THE FORMAL HOUSING SECTOR. YESTERDAY ,THEY
GAVE A 6 BILLION PACKAGE TO HELP THE HOUSING. BUT WHAT I'M REALLY AFTER TO
REVIVE THE FORMAL HOUSING SECTOR IS A 25 BILLION-PESO SYNDICATED CONSORTIUM
FOR A SECONDARY MORTGAGE MARKET FOR HOUSING TO BE LED BY DBP.
I DON'T EXPECT ALL THE 25 BILLION TO BE AVAILABLE IMMEDIATELY. THIS IS A
LEGACY, WE'VE GOT TO JUMPSTART THE SECONDARY MORTGAGE HOUSING MARKET.

SIX MONTHS AGO, WHEN I WAS HALF WAY INTO MY TERM, I REALIZED THAT THE
SOCIALIZED HOUSING SECTOR HAD BEEN DORMANT FOR THREE YEARS. OUR SYSTEM
DIDN'T SEEM TO BE WORKING. A TOP BUILDER EVEN COMMENTED TO ME THAT HOUSING
DIDN'T SEEM TO HAVE ITS ACT TOGETHER.

SO TOGETHER WITH MIKE DEFENSOR AND OTHER EXPERTS OF HOUSING, WE BEGAN A SET
OF POLICY REFORMS TO JUMPSTART HOUSING AS IN FACT ONE OF MY MICROECONOMIC
MEASURES TO STRENGTHEN THE DOMESTIC MARKET. WE WORKED ON THREE AREAS:
>LAND CONVERSIONS WITH THE DAR; TAKE OUTS WITH THE WHOLE SET OF FINANCIAL
>INSTITUTIONS INVOLVED IN HOUSING FINANCE; AND CENTRAL BANK POLICY SIGNALS
THROUGH MY REPRESENTATIVE IN THE MONETARY BOARD, MAR ROXAS. I AM HAPPY THAT
DAR, PAG-IBIG AND THE CENTRAL BANK ALL RESPONDED VERY POSITIVELY AND DID
THE HOUSING REFORMS, THE POLICY REFORMS THAT WERE MOST URGENTLY NEEDED.
AND I AM HAPPY THAT THE HOUSING SECTOR ALSO RESPONDED POSITIVELY AND
AGGRESSIVELY TO THESE POLICY SIGNALS FROM THE TIME WHEN A TOP BUILDER SAID
THAT HOUSING DOESN'T HAVE ITS ACT TOGETHER. THIS TIME A BUILDER COMMENTED
THAT GOVERNMENT POLICY HAS NEVER BEEN AS FRIENDLY TO HOUSING AS NOW.

ALTHOUGH LAST NIGHT, I WAS HAVING DINNER WITH MANNY VILLAR, WHO BELONGS TO
THE HOUSING SECTOR. THERE IS STILL MORE ROOM FOR ADDITIONAL POLICY REFORMS
MAINLY TO BRING DOWN INTEREST RATES FOR HOUSING. SO LETS LOOK FOR THOSE
ADDITIONAL POLICY REFORMS. BUT ONE OF THEM I AM VERY SURE FOR THE MORE
MEDIUM-TERM, NOT NECESSARILY THE IMMEDIATE TERM, IS THIS DBP-LED SECONDARY
MORTGAGE MARKET. IT WILL MAKE THE SYSTEM EVEN MORE HOUSING-FRIENDLY BEYOND
MY TERM AS PRESIDENT. AND IF WE CAN START THIS MORTGAGE MARKET NOW,
SECONDARY MARKET NOW, IT IS ONE OF THE REFORMS THAT WILL BE IRREVERSIBLE
AND WILL THEREFORE MAKE MY TRANSITION PRESIDENCY MORE MEANINGFUL FOR THE
GENERATIONS TO COME.

SO BY FINANCING THE NAUTICAL GRAINS AND COLD STORAGE HIGHWAY, AND HOPEFULLY
LEADING A SECONDARY MORTGAGE MARKET CONSORTIUM, DBP IS SUPPORTING A BOLD
MOVE I'M PLANNING TO MAKE TO FREE UP THE PRIVATE SECTOR FROM THE
TRADITIONAL THINKING OF GOVERNMENT BUREAUCRACY FOR THE NEXT 17 MONTHS. THIS
IS ESSENTIAL FOR A BANK WHOSE MAIN MISSION IS TO FINANCE THE DEVELOPMENT
PRIORITIES OF THE GOVERNMENT.

AND SO FOR THIS GOOD WORK I CONGRATULATE YOU. CONGRATULATIONS DBP FOR YOUR
BOLDNESS! CONGRATULATIONS, TOO FOR BEING, AS YOU SAID IN YOUR PRESENTATION,
THE FIRST AND ONLY PHILIPPINE BANK TO BE ISO-14001 CERTIFIED FOR YOUR
BANKING, LENDING AND INVESTMENT OPERATIONS. MAKING YOU ONE OF THE FEW
BANKS THAT HAVE QUALIFIED UNDER THE INTERNATIONAL STANDARD FOR
ENVIRONMENTAL MANAGEMENT SYSTEM, PUTTING DBP IN THE LEAGUE OF SUCH BANKING
GIANTS AS CREDIT SUISSE AND CITIBANK SINGAPORE.

THANK YOU, TOO FOR THE DIVIDEND CHECK TO THE NATIONAL GOVERNMENT
OF ONE BILLION PESOS.

AND THANK YOU FOR CONTINUING TO PRODUCE GOVERNMENT WORKERS OF THE HIGHEST
STANDARDS OF INTEGRITY.

SO ONCE MORE, HAPPY ANNIVERSARY! KEEP UP THE GOOD WORK.

THANK YOU.

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