Cordillera loses P16B to Covid

BAGUIO CITY: The National Economic and Development Authority-Cordillera Administrative Region (NEDA-CAR) has reported that various sectors in the region incurred more than P15.6 billion in losses with the implementation of the Luzon-wide enhanced community quarantine to contain the spread of the dreaded coronavirus disease 2019 (Covid-19).

In a social impact assessment for the Cordillera that was conducted from April 21 to May 15, 2020, the Cordillera Regional Disaster Risk Reduction and Management Council- Regional Inter- Agency Task Force found the need to highlight recovery and reconstruction.

The productive sector lost P11.2 billion or about 60.36 percent of the total estimated losses while foregone income opportunities from various sectors amounted to P11.02 billion or 59 percent of the total estimated losses.

The NEDA-CAR report stated that the losses referred to the value of foregone income that had been affected by production decline, reduced income and increased expenditure over a period of time.

The losses of the region’s social sector were valued at P753.5 million or 4.03 percent of the total losses reported.

Under the education sub-sector, where basic education under the Education department, higher education institutions under the Commission on Higher Education and technical- vocational institutions under the Technical Education and Skills Development Authority fall, the estimated losses reached 30.45 percent of the total for the social sector.

According to the report, delivery of health services was challenged by effects of the global pandemic, costing the sector P499.2 million or 66.24 percent share of the total damages to the social sector.

It noted that the pandemic has generally brought expected economic losses and to mitigate effects, especially on the poor, vulnerable and marginalized sector, the government allotted funds for provision of safety nets and social amelioration programs, augmentation of food and non-food items and sustainable livelihood programs.

The government set aside P1.5 million for this sub-sector.

For the productive sector that is composed of seven sub-sectors, the estimated losses reached P11.2 billion or 60.36 percent of the total losses.

Further, the global pandemic dealt a severe blow to the region’s employment and labor sector where losses reached P3.1 billion that included foregone income opportunities of mostly formalsector workers.

Micro, small and medium enterprises and cooperatives lost an estimated P1.5 billion, while agriculture and fisheries lost over P1.6 billion.

The NEDA- CAR report said the total losses in tourism were estimated to be over P333 .2 million but these only reflected the foregone income opportunities of various hotels, lodging and accommodation facilities registered in the region.

The total losses of this sub-sector registered over P1.3 billion for March and April, which included average expenses of tourists in accommodation, transportation, meals and other tourism-related expenses.

In the transport industry, losses were estimated at P379.8 million.

Initial loss assessment for the industry and services sector was estimated at P4.2 billion, which was 37.75 percent of the total losses for the production sector.

In the construction sector, the total amount of losses amounted to P3.6 billion or about 18.4 percent of the total estimated losses of the region.

The report stated that growth in regional domestic product is expected to decline with the recorded losses in all major sectors where the total economic losses amounted to P15.66 billion corresponding to 4.8 percent of the gross regional domestic product target for this year.