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Table of Contents

11Improving Market Access & Connectivity

11.1Rapidly Expand Capacity of Secondary International Airports

21.1.1Subprogram for Upgrading Secondary International Airports

41.1.2.Increasing International Tourists at NAIA

51.2Expand Connectivity between Philippines and its Key Growth Markets

61.1.2Renegotiating Air Service Agreements with Key Growth Market Markets

71.1.3Reducing International Air Operations Costs in the Philippines

71.1.4Simplifying Border Formalities /Procedures for Key Growth Markets

81.3Implement a Strategic Access Infrastructure Program between Secondary International Airports and Strategic Destinations

91.3.1Design and Implementation of Strategic Access Infrastructure Subprogram

131.3.2Improving Sea and Road Transportation Services

1 Improving Market Access & ConnectivityAs noted in Section 3.5, the stakeholders identified three programs to improve market access and connectivity especially for international tourists. These are:

Rapid upgrading of existing international airports to handle at least 3.1 million additional international arrivals (i.e. 6.2 million international passenger movements) and well as accelerating existing programs to strengthen compliance with international air regulations;

Adoption of policies to facilitate international airline transportation services and operations; and

Improving strategic air, sea and road infrastructure linkages and transportation services between the 8 international airport cluster destinations and the 13 strategic cluster destinations without international gateways

The details of cost estimates and cost assumptions of each program, its subprograms, and projects are provided as an attachment to this Appendix. The action plan for each of these programs is set out below. 1.1 Rapidly Expand Capacity of Secondary International Airports Description of the program

Given the limited capacity of NAIA to handle increased international tourism flows due to runway congestion problems that will be difficult to resolve, the need to reduce the cost of traveling to Philippine destinations, and the need to spread the benefits of tourism more widely, it is necessary to rely increasingly on the secondary international airports i.e. Clark (MDIA), Mactan-Cebu (MIA), Davao, Puerto-Princesa, Iloilo, Laoag, and Zamboanga. EO 29 designating open skies for secondary international airports, the planned increased investment in international marketing; and of other measures designed to facilitate the number of international tourists to the Philippines will do much to drive more traffic to these airports. However, as noted in a review of the current situation at these airports, their capacity to handle increased international air operations and tourist arrivals is severely constrained by city and air side infrastructure constraints that will also have to be addressed if these are to function as intended. In this context, the main objective of this program is to rapidly increase their capacity; and to undertake improvements at NAIA to decongest its main runway and Terminal 1 which is the subject of increasing criticism and complaints by international tourists. The program has two subprograms:

Rapid upgrading and/or expansion of secondary international at Clark, Mactan-Cebu, Davao, Pueto-Princesa, Iloilo, Laoag, and Zamboanga International Airports.

Facilitate increased international tourists through NAIA

Objectives

The objective of these subprograms is to position the Philippines to maintain and increase its current international market growth momentum and improving the arrival and departure experience to a more favorable level.

Proposed Subprograms and Projects

1.1.1 Subprogram for Upgrading Secondary International Airports

Description and ProjectsTime Frame

The secondary international airports located at Clark, Mactan-Cebu, Davao, Pueto-Prinsesa, Iloilo, Laoag, and Zamboanga are currently unable to handle rapid international tourism growth because of limitations on: (a) city side aspects such as poor access, lack of parking, and inadequate support services; (b) air side constraints related to runway/taxiway/parking apron limitations, air navigation system imitations, and fire and rescue service limitations; and (c) airport management and operations limitations. The subprogram has 8 projects:

Project 1: Upgrading of Clark International AirportThis project comprises the following tasks:

Improve access road, day and long-term parking and and support services as part of Terminal 1 expansion and new terminal development including development of airport hotels (1x300 room 4 star, 2x300 rooms 3 star, and 2x150 rooms economy hotel Complete Terminal 1 expansion to 5 m pax p.a. and implement planned construction of Budget Carrier Terminal project for 10 m pax p.a. Proceed wirh construction in Quezon City of a City Check-in facility and airport bus transfer terminal. Complete upgrading of CIQS facilities under Phase 2 of the Terminal 1 airport expansion program. Complete upgrading under Phase 2 of the Terminal 1 airport expansion program. Complete upgrading of fire and rescue services under Phase 2 of the Terminal 1 airport expansion program. Further strengthen capacity of DMIA to market the airport to schedule, charter and budget carriers.Project 1.

Starting date:

Immediate with completion by December 2012

Project 2: Upgrading of Mactan - Cebu International AirportThis project comprises the following tasks:

Urgently improve capacity to handle multiple wide body aircraft arrivals and departures at existing international terminal by rationalization of existing office and commercial space and arrangements for check-in counters to: (i) provide 2 additional gates, (ii) increase the number of check-in counters, and (iii) increase baggage handling and queuing space. Proceed with plans to construct a 10 million-passenger capacity Low Cost Carrier Terminal.

Construct 2 new 3,000 x 50 m taxi-ways to facilitate aircraft movements

Further strengthen capacity of MIA to market the airport to schedule, charter and budget carriers.Project 2.

Starting date:


Project 3: Upgrading of Davao International AirportThis project comprises the following tasks:

Improve city-side access road, parking and air operations and ground transportation support services by immediately reverting to the proper vehicle drop-off and pick up arrangements, and ensuring effective integration of the three security services (Airport, PNP, and Military)

Immediately decongest passenger-handling capacity in the existing departure area by rationalizing office and commercial space to increase the number of check-in counters and queuing space. Implement master plan to expand the international terminal by 2 gates and dedicate 4 gates for domestic air operations with flexibility to use international gates as required. Expand CIQS facilities as required

Expand parking aprons for terminal expansion and work on acquiring land to construct a 3,000 m x 50 parallel taxiway

Conversion to Airport Authority that includes marketing of airport to carriers as part of its charterProject 3.

Starting date:


Project 4: Upgrading of Iloilo International AirportThis project comprises the following tasks:

Improve city-side airline operations and ground transportation support services

Renovate the existing terminal space to allow flexible use of 2 gates for international air operations including provision of dedicated CIQS and baggage belts.

Include CIQS facilities in rationalized terminal

Increase ramp space to facilitate parking of international aircraft and aircraft not using gates


Starting date:

Q1 2012 with completion by December 2013

Project 5: Upgrading of Puerto-Princesa International AirportThis project comprises the following tasks:

Improve access road, parking and air operations and ground transportation support services including development of airport hotel (1x250 room 3-4 star convention hotel)

Implement current terminal renovation plans and implement construction of new international terminal by 2015

Provision of permanent CIQS facilities in renovated terminal

Realign tax-way entrance by expanding the ramp area

Upgrading of Fire and Rescue Equipment to handle international airline operations


Starting date:


Project 6: Upgrading of Laoag International AirportThis project comprises the following tasks:

Improve access road and parking areas. Provide public transportation services from a designated point outside the terminal to Laoag City

Implement current terminal improvement program focusing on increasing international passenger arrival and departure handling capacity

Provision of permanent CIQS facilities

Upgrade of Fire and Rescue Equipment as required by regulation


Starting date:


Project 7: Upgrading of Zamboanga International AirportThis project comprises the following tasks:

Improve city-side access road, parking and air operations and ground transportation support services

Implement current programs to improve terminal facilities


Starting date: Q1 2013 with completion by December 2014

Lead ResponsibleStrategic Partners

DOTC/CAAP/Airport AuthoritiesPrivate sector stakeholders

Destinations for Implementation

NP-3-Central Luzon Clark), CP-6-Central Visayas (Mactan-Cebu), SP-6-Davao Coast & Hinterland (Davao), CP-5-Western Visayas (Iloilo), CP-4-Palawan (Puerto-Princesa), NP-2-Laoag-Vigan (Laoag), and SP-5-Zamboanga peninsula (Zamboanga).

Estimated Cost (PhP 000)Potential Financing Sources

Project 1: 154,000

Project 2: 1,500,120

Project 3: 84,270

Project 4: 82,270

Project 5: 146,150

Project 6: 217,120

Project 7: 105,500DOTC/CAAP/Airport Authority

DOTC/CAAP/Airport Authority

DOTC/CAAP/Airport Authority (consider private sector funding and operations)





1.1.2. Increasing International Tourists at NAIA


NAIA is a critical link between the Philippines and its key international markets and it is important to ensure that it has the capacity to increase the volume of international arrivals to Metro Manila and other strategic cluster destinations in the Philippines. Given the current situation at NAIA, including existing initiatives already announced by CAAP/NAIA, this project sets out additional initiatives that could be taken to improve the airports international tourist passenger volumes over the next five years. The subproject involves two projects:

Project 1: Improving Physical Facilities at NAIAThis project comprises the following tasks: Complete renovation of arrival and departure arrangements at Terminal 1.

Complete renovation of Terminal 1 and minor renovation of Terminal 2 giving priority to:

Increasing the number of check-in counters and queuing space, public toilet,

Rationalizing office and commercial space in the departure area; and

Increasing the number of immigration and customs counters in the arrival hall.

Consider constructing a parallel taxiway between Runway 1331 and the old Nayong Pilipino property to provide a new taxiway link between Terminal 3 and 2, link the four terminals, and free up runway space.

Convert the General Aviation area into aircraft parking area with busing of passengers to terminals.Project 1.

Starting date: Immediate through to 2013 with continuing operations and maintenance

Project 2: Improving Airport Management & Operations

Involving:

Implementing current plans to relocate General Aviation operations out of NAIA by the end of 2011.

Restriction of all turbo-prop aircraft operations to Runway 1331.

Encouraging domestic carriers to rebase their smaller aircraft (non-jet) operations to Clark, Cebu and Davao.

Exploring opportunities for negotiating a settlement on Terminal 3 with PITACO and Tagenaka to allow permanent use of the Terminal.

Strictly enforcing a limit of 32 runway rotations per hour to comply with ICAO standards and ensure safe air operations.Project 2.

Starting date: Immediate through to 2013


DOTC/CAAP/NAIAPrivate tourism companies where appropriate, e.g. airport operations and maintenance


NP-7-Metro Manila-CALABARZON (Manila)


Project 1: 1,500,000Project 2:

DOTC (consider private sector funding and operations)

DOTC (consider private sector funding and operations)

1.2 Expand Connectivity between Philippines and its Key Growth MarketsDescription of the program

This program seeks to complement the physical investments in improving the capacity of the existing primary and secondary international airports with a series of policy initiatives designed to facilitate the participation of existing Philippine and other international carriers, as well as attract the entry of new international carriers servicing routes between points in the key growth markets and the Philippines. As noted in the Situation Analysis:

The current air service agreements do not designate many of the secondary international airports as points that can be served within the Philippines while existing entitlements for Philippine and foreign carriers on the primary routes remain limited;

The cost of international air operations to the Philippines is constrained by high airport ground costs and impost of a common carriers taxes and other fees and charges; and

Frontier requirements for key growth markets such as China and India make it difficult for the Philippines to tap the full potential of these markets.

Objectives

The main objective of this program is to provide the necessary regulatory and financial platform that will enable the Philippines to expand tourism from its key international growth markets.

The program will be implemented through three subprograms:

Renegotiating air service agreements with key growth market countries

Reducing international air operations costs in the Philippines

Simplifying and reducing frontier requirements for key growth markets

Proposed Subprograms and Projects1.2.1 Renegotiating Air Service Agreements with Key Growth Market Markets


The current air service agreements do not designate most of the EO 29 secondary international airports as points that can be served within the Philippines in the existing air service agreements with main growth market countries of China, India, South Korea, Japan, USA, and Australia. In addition, existing route entitlements for Philippine and foreign carriers need to be increased significantly, and new points in the main gateway countries designated. The subprogram has one project:

Project 1: Adjusting Air Service Agreements with Key Growth MarketsThis project comprises the following tasks:

Working with CAB and DFA, review the schedule of ASA negotiations and seek to bring forward the schedule of those that are main tourism growth markets.

Consulting with the carriers, airport operators and tourism industry to prepare the Philippine position in regard to:

designation of the secondary international airports as open sky airports in the ASAs, increasing light entitlements to existing points in the main growth markets, and increasing the number of points that can be served in the key growth markets; Obtaining key growth market country support through an extended diplomatic effort.

Implementing the revised schedule of negotiations with the key growth market countries.

Monitoring and evaluating progress on a regular basis.Project 1.

Starting date:



DFADOT/CAB, Airports, Airlines and Other Major Private Sector Stakeholders


NP-3-Central Luzon Clark), CP-6-Central Visayas (Mactan-Cebu), SP-6-Davao Coast & Hinterland (Davao), CP-5-Western Visayas (Iloilo), CP-4-Palawan (Puerto-Princesa), NP-2-Laoag-Vigan (Laoag), SP-5-Zamboanga peninsula (Zamboanga), and NP-7-Metro Manila-CALABARZON (NAIA).

Estimated Cost (PhP)Potential Financing Sources

Project 1: 30,000,000 DFA/DOT/CAB/Airlines

1.2.2 Reducing International Air Operations Costs in the Philippines


This subprogram seeks to complement improvements in the secondary and primary international airports, and increased connectivity opportunities through airport designation and increase flight entitlements, by reducing international carrier operating costs for servicing the Philippines to a level equal to or below the same costs in its main competitors in Asia (Thailand, Viet Nam and Indonesia). This subprogram will be implemented in one project:

Project 1: Reducing Airport Ground Handling Costs and FeesThis project comprises the following tasks: Comprehensive evaluation of all existing ground handling charges arrangements at the main and secondary international airports.

Study of international carrier costs in the competing countries of Thailand, Malaysia, Singapore, Indonesia and Viet Nam.

Preparing, presenting and discussing a position paper with recommendations on the results of the studies to the Economic Cluster of the Cabinet.

Preparing amendments to the National Internal Revenue Code of 1997 (RA 8424) to eliminate the Common Carriers Tax (CCT) and the Gross Philippine Billings (GPB)166 which are not imposed by other countries and that contravene the principles of the International Civil Aviation Organization to which the Philippines is a signatory; and

Removing the practice of charging overtime and other service fees direct to carriers.

Implement the revised tax and ground handling cost regime. Monitoring and evaluation of results.Project 1.

Starting date: Immediate through to 2012


DOT, DTI, DOF, BIR, and CongressInternational and National Carriers


All main and secondary international airports


Project 1: 5,000

Grant financing from multilateral and bilateral development partners

1.2.3 Simplifying Border Formalities /Procedures for Key Growth Markets

Description and ProjectTime Frame

Although the decongestion and upgrading of the capacity of existing international airports together with increased flight entitlements and lower international carrier in-Philippine operating costs are important steps to take, these need to be complemented by actions designed to make it easier for two of the worlds largest outbound markets, China and India, to travel to the Philippines. Although the Philippines provides 21-day visa free privilege to 150 countries, the key growth markets of China and India are currently excluded and must go to a handful of Philippine visa issuing offices in their country to obtain a visa. India has recently granted visa on arrival for Filipinos and this should be reciprocated immediately. While China continues to require visas from Filipinos and other nationalities, competing countries such as Viet Nam, Thailand and Indonesia provide either visa exemptions or visa on arrival facilities to Chinese and Indian tourists. The subprogram will be implemented by a project with the following tasks:

Careful study of the visa issuing practices of the competing countries of Viet Nam, Thailand, and Indonesia including study of the On-Line visa facilities provided by Vie Nam

Preparation of a paper setting out the results of the study and evaluating the costs and benefits of the following options:

Providing visa on arrival to China and Indian nationals;

Providing on-line visa services to China and Indian nationals; and

Providing visa exempt arrival to China and Indian nationals

Key recommendations should be discussed and agreed within the framework of the above options and a course of action to implement the recommendations set forth.

Implementing the recommendations.

Monitoring and evaluationProject 1.

By end 2011


DOJ/BIDFA


All international airports,


PhP 1,000DOT/DOJ/Donor

1.2 Implement a Strategic Access Infrastructure Program between Secondary International Airports and Strategic DestinationsDescription of the program

The design and implementation of an infrastructure development program to enhance strategic air, sea, and road connectivity between the international airports and the surrounding strategic tourism destination cluster gateway points is critical to the expansion of infrastructure and private sector investment in the existing and emerging tourist destination areas in these areas. To complement the investments in strategic connectivity infrastructure, it will be necessary to:

Undertake regulatory reforms and other initiatives designed to encourage increased and higher quality domestic tourist transportation services between the international airports and main gateway points in the SCDs;

Enable increased competition on strategic air, sea and road routes connecting the designated international airports and the surrounding SCDs and their tourist development areas to encourage:

Increased service frequencies, capacities and traveler convenience,

Adoption of latest on-line booking and reservation technologies,

Use of state-of-the-art transportation equipment,

Adoption of enhanced operational safety procedures

Upgrading of operational staff such as drivers, etc. through training, and replacement with more competent personnel; and

Increased price competitivenessThese interventions will help to underpin investments by the private sector in the strategic destination clusters.

Objectives

The primary objective of this program is to provide the necessary platform that allows greater distribution of international and domestic tourists to travel between the international gateways and other SCDs without these.

Proposed Subprograms and Projects

1.2.1 Design and Implementation of Strategic Access Infrastructure Subprogram


The subprogram seeks to develop three sets of projects and related subprojects: (a) strategic airport improvements project comprising 25 subprojects; (b) strategic seaport/RORO project comprising 22 subprojects; and (c) strategic road improvements project comprising 28 subprojects.

Project 1: Improvement, rehabilitation and expansion of airports that connect to tourism clusters.Scope of work includes provision of parking, welcomers area, expansion of apron, provision of CIQS, night landing lights, terminal expansion and rehabilitation, construction of perimeter fence and improvement of access roads

Cluster

Airport

Northern Philippines Tourism AreaBatanes Island Cluster

Batanes Airport

Laoag-Vigan Cluster

Mindoro (Vigan) Airport

Central Philippines Tourism AreaBicol Cluster

Daet Secondary Airport (Camarines Norte)

Pili Airport (Camarines Sur)Caramoan Airstrip (Camarines Sur)Legaspi Airport (Albay)Marinduque-RomblonTugdan Airport (Romblon)

Marinduque Airport

Mindoro-Calamian Cluster

San Jose Airport (OCC Min)

Boracay-Northern Antique Cluster

Kalibo Airport

Central Visayas Cluster

Bantayan Island Airport

Leyte-Samar Cluster

DZR Airport

Southern Philippines Tourism AreaSiargao-Dinagat Island Cluster

Siargao Airport

Agusan River Basin and Coastal Cluster

Butuan Airport

Cagayan de Oro Camiguin Island-Tangub Coastal and Hinterland Cluster

Camiguin Airport

Dipolog-Dapitan Resort Coast Cluster

Dipolog Airport

Zamboanga Peninsula Cluster

Zamboanga Airport

Davao Gulf and Coastal Cluster

MATI Airport

Cotabato-Saranggani Cluster

Mlang Airport

Project 1.

Starting date: 2012 until 2016

Project 2: Improvement, rehabilitation and expansion of seaport facilities that connect tourism clusters. Scope of work include improvement and rehabilitation of passenger terminals, construction of RORO ramps and causeways, dredging of birthing areas and provision of parking space

ClusterPort

Northern Philippines Tourism Area

Batanes Island Cluster

Basco-Ivana Port

Laoag-Vigan Cluster

Currimao Port

Lingayen Gulf Cluster

Metro Manila and the CALABARZON Cluster

Polilio Island Port

Central Philippines Tourism Area

Bicol Cluster

Mercedes Port

J. Panganiban Port

Sabang Port (San Jose, Camarines Sur)

Guijalo Port

San Vicente Port (Caramoan, Camarines Sur)

Codon Port (San Andres, Catanduanes)

Port of Claveria

Port of Pilar, Sorsogon

Port of Bulan, Sorsogon

Tobaco Port

Masbate Port

Mindoro-Calamian Cluster

San Jose Seaport (Occ Min)

Palawan Cluster

Puerto Princesa Seaport Port


Cagban Jetty Port

Western Visayas Cluster


Sta Fe Port

Eastern Visayas

Southern Philippines Tourism Area

Siargao-Dinagat Island

Dinagat Port


Port of Gen Santos

Project 2.

Starting date: 2012 Implementation: 5 years until 2016

Project 3: Improvement, rehabilitation and upgrading of approximate 850 kilometers of roads leading to tourism clusters into all weather conditionScopes of works include upgrading from earth to gravel and gravel to asphalt concrete pavement, improvement of road and off road elements, and rehabilitation of damaged sections. Also included in the scope of work is consultancy for detailed design and construction supervision.

Cluster

Road

Northern Philippines Tourism AreaBatanes Island Cluster

Cagayan Coast and Babuyan Island Cluster

Tuguegarao City -Baggao RoadLaoag-Vigan Cluster

Solsona-Calanasan

Sierra Madre Cluster

Cordillera

Calanasan-Claveria Road

Banaue-Mayoyao-Aguinaldo-Ramon

Banaue-Hungduan-Tinoc-Bugias Road

Central Luzon Cluster

Olongapo-Fernando Road

Widening/Concreting of McArthur Highway

Metro Manila and CALABARZON Cluster

Completion and concreting of Looc-Ternate Road Project.

Extension of coastal road R1 extension from Bacoor to Cavite City

Aguinaldo Highway leading to Tagaytay City

Central Philippines Tourism AreaPalawan Cluster

Coron-Salvacion, Calawit Road

San Jose-Port Borton Road

San Vicente-El Nido-Taytay Road

Sta Cruz seaport -Taytay Road


Caticlan-Kalibo Road

Western Visayas Cluster

Bacolod - Murcia- Don Salvador - San Carlos national road

Silay- Bacolod Road

Guimara Circumferential Road


Panglao Circumferential Road

San Carlos-Dumaguete Road

Samar Cluster

Philippine-Japan Friendship Highway (Samar Section)

Southern Philippines Tourism AreaSiargao-Dinagat Island Cluster

Siargao Island Circumferential road

CDO-Talakag Highway ICT Sitio Ugbayanon, Dansolinon

ICBR road (Laguindingan-Iligan Section)

Zamboanga Peninsula Cluster

Tubod-Lakewood National Secondary

Davao Gulf and Coast Cluster

Mawab - Paloc, Maragusan

Compostela- Cateel Road


Maitum- Palimbang- Kalamansig Road

Project 3.

Starting date: 2012 Implementation: 5 years until 2016


Project 1: CAAP, CAB, DOTC, DOT, NEDA, DBM

Project 2: PPA, MARINA, DOTC, DOT, NEDA, DBM

Project 3: DPWH, DOT, NEDA, DBMProject 1: LGUs, Tourism Councils, Regional Development Councils, CSOs

Project 2: LGUs, Tourism Councils, Regional Development Councils, CSOs

Project 3: LGUs, Tourism Councils, Regional Development Councils, CSOs


Nationwide with priority given to NP-3 Laoag-Vigan Cluster , NP-5 Cordillera , CP-1 Bicol, CP-6 Western Visayas, SP-7 Davao Gulf and Coast

Estimated Cost (PHP)Potential Financing Sources

Project 1: 513,240

Project 2: 637,500

Project 3: 14,502,124Project 1: Local funds from CAAP, DOTC, DOT, ODA from major international financing institutions

Project 2: PPA, DOTC, DOT, ODA from major international financing institutions

Project 3: DPWH, DOT, ODA from major international financing institutions (possible PPP financing for selected projects)

1.2.2 Improving Sea and Road Transportation Services


The subprogram seeks to raise the quality and safety of road and sea tourist transportation equipment used by domestic ad international tourists, while increasing the number of service providers to ensure that demand and supply is adequately balanced at acceptable prices. The main components of the subprogram are: (a) working with existing road and sea transportation providers to improve the quality and safety of road and sea tourist transportation equipment and booking and reservation systems as well as the frequency of services; (b) designating strategic developmental sea and road routes as open service sea and road routes allowing unrestricted operation of road and sea transportation services by qualified transportation service providers; and (c) promoting increased competition on strategic air, sea and road routes connecting the designated international airports and the surrounding SCDs and their tourist development areas. The subprogram comprises three projects:

Project 1: Enlisting Existing Transportation Operators SupportThis project comprises the following tasks:

Preparing two position papers on sea and road transportation requirements of domestic and international tourists and recommendations for action by existing transportation service providers on the strategic routes. The position papers will deal with the following issues: Increased service frequencies, capacities and traveler convenience,

Adoption of latest on-line booking and reservation technologies,

Use of state-of-the-art transportation equipment,

Adoption of enhanced operational safety procedures,

Upgrading of operational staff such as drivers, etc. through training, and Replacement with more competent personnel; and

Increased price competitiveness.

Circulation of the position paper to existing sea and road transportation providers for comment, and finalization of the papers as input into two planning workshops to be attended by the existing sea and road transportation providers and other stakeholders. Organizing and holding of 2-day planning workshops with existing sea and road transportation providers and other stakeholders to agree a sea and road transportation services improvement project in terms of what will be done, by whom and by when; the incentives to be provided to support these initiatives; the method of monitoring and evaluation; and signing of a MOA between the existing sea and road transportation providers and the concerned agencies to undertake these commitments. Implementation of the sea and road transportation services improvement project. Monitoring and evaluating implementation of the project.Project 1.

Starting date:

Second half of 2011 with completion by December 2014

Project 2: Designating Developmental Sea and Road Open Service RoutesThis project comprises the following tasks: Identifying strategic secondary routes for designation as Open Service Routes giving special attention to underserved routes such as those between Manila and Marinduque, Romblon, between Roxas City and Masbate, and Masbate to Sorsorgon City, etc..

Preparing related documentation and draft EO for discussion and finalization between DOT and related DOTC agencies

Submission of Draft EO to Office of The President for endorsement and signing

Implementation of EO

Monitoring and evaluating progress on a regular basis.Project 2.

Starting date:

Second half of 2011 with completion by December 2012

Project 3: Undertaking transportation regulatory reforms

This project comprises the following tasks: Preparing position papers on the way in which the current regulatory requirements for sea and road tourism transportation services could be improved to deliver safer, more convenient, better quality equipment, and increased services. Circulating the position papers to the existing sea and road transportation service provider and other stakeholders, for review and comment, and finalization. Holding a series of industry-stakeholder-Congressional consultations to determine and agree the regulatory changes that should be made to achieve the overall objectives of the regulatory reforms. Based on the stakeholder discussions, prepare draft amendments to the related Laws or EOs and submit these for finalization and processing by the Office of the President and/or the Congress Implementation of the IRRs once the amended EOs and Laws have been approved by the Congress and President.

Monitoring and evaluating of implementation progress.Project 3.

Starting date: Second half of 2011 with completion by December 2013


Project 1: DOT, DOTC (MARINA and LTFRB)

Project 2: DOT, DOTC (MARINA and LTFRB)

Project 3: DOT, DOTC (MARINA and LTFRB), Office of the President and the CongressProject 1: Sea and Road Transportation Operators and Private Sector Stakeholders

Project 2: Sea and Road Transportation Operators and Private Sector Stakeholders

Project 3: Sea and Road Transportation Operators and Private Sector Stakeholders


Nationwide with priority give to linkages between 7 secondary international airports as well as NAIA and their connected SCDs.

Estimated Cost (PHP 000)Potential Financing Sources

Project 1: 5000.0

Project 2: 5000.0

Project 3: 5000.0DOT/DOTC (MARINA and LTRFB)

Attachment 1 Cost Sheets and Cost EstimatesAppendix 7

Detailed Action Plan

Formulation of the

Philippine National Tourism Development Plan 2011-2016

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