NORTHERN MINDANAO NEEDS P197B TO REBOOT ECONOMY
Northern Mindanao will need P197 billion to reboot its economy following the devastating lockdowns brought on by the new coronavirus disease (COVID-19) pandemic, according to development planners.
The investment requirement until 2022 is contained in the COVID-19 Regional Recovery Program for the region comprising the provinces of Bukidnon, Camiguin, Lanao del Norte, Misamis Occidental and Misamis Oriental, and the highly urbanized cities of Cagayan de Oro and Iligan.
Of the P197.6-billion program cost, P150.2 billion, or 76 percent, will go to social services, mainly to spend for social protection initiatives, and in putting up facilities and equipment to help improve the delivery of health services. Some P14 billion is required for economic services to pump-prime production in the region.
Slow restart
Mylah Faye Cariño, regional director of the National Economic and Development Authority (Neda), said the recovery plan, when implemented soon, would help reverse the negative impact of the pandemic on the regional economy.
Although quarantine restrictions in the region have been eased, the economic restart continues to be slow, especially in the services sector. The remaining strictures imposed by local governments, especially on interprovincial travel, is contributing to the snail-paced recovery.
Shopping malls, leisure establishments and restaurants experience sluggish business.
Neda initially projected a regional growth slowdown from 10.6 percent to only 4.4 percent. But now, Cariño said, the estimate was a 0.32-percent contraction.
From March 15 to May 31, Neda said losses in business opportunities had reached a total of P17.83 billion, and the full-year losses at P61.13 billion. The economic losses are largely in the services sector, primarily wholesale and retail, and tourism, which, in all, represents 40 percent of total employment in the region.
The pandemic has affected 4,178 firms, which either downsized or closed operations. Of these, 45 percent are in the regional capital of Cagayan de Oro, accounting for 84,624 workers or half the total workers displaced in the region.
The recovery plan recommended enhanced agricultural production to ensure food security in the region, as well as highly improved information and communications technology infrastructure to support new methods of work among businesses and government agencies.