Rapid Economic and Credit
Overview for Early Recovery
Super Typhoon Yolanda Philippines
Response – Region 6/7 (Iloilo and Cebu)
Table of Contents
Executive Summary................................................................................................................................................................................................4
1.Emergency Context
........................................................................................................................................................................................ 6
2.RECOvER Objectives.........................................................................................................................................................................................8
3.RECOvER Area and Market Selection ..............................................................................................................................................9
4.RECOvER Assessment Methodology ............................................................................................................................................10
5.Northern Cebu and Iloilo Credit Overview ............................................................................................................................ 11
5.1 Regulatory Framework and Emergency Measures..................................................................................... 11
5.2.Financial Services Providers Analysiss..................................................................................................................... 11
5.3. Segmentation Analysis....................................................................................................................................................... 14
5.4. Key Findings and Response Options...................................................................................................................... 17
6.Northern Cebu Sugarcane Sector Overview .........................................................................................................................19
6.1 The Pre-typhoon Market.................................................................................................................................................... 19
6.2 Seasonal Calendar....................................................................................................................................................................20
6.3 Damage Assessment...............................................................................................................................................................20
6.4 Sugarcane Sector Mapping..............................................................................................................................................20
6.5 Key Findings and Response Options........................................................................................................................22
7.Bantayan Island Poultry Sector Overview ..............................................................................................................................23
7.1. The Pre-typhoon Market ..................................................................................................................................................23
7.2. Seasonal Calendar...................................................................................................................................................................23
7.3. Damage Assessment..............................................................................................................................................................23
7.4. Poultry Sector Mapping.....................................................................................................................................................24
7.5. Key Findings and Response Options.......................................................................................................................25
8.Northern Iloilo Fisheries and Aquaculture Sector Overview .................................................................................27
8.1. The Pre-typhoon Market ..................................................................................................................................................27
8.2. Seasonal Calendar...................................................................................................................................................................27
8.3. Damage Assessment.............................................................................................................................................................28
8.4. Fisheries and Aquaculture Sector Mapping....................................................................................................29
8.5. Key Findings and Response Options...................................................................................................................... 31
9.Northern Iloilo Tourism Sector Overview ................................................................................................................................32
9.1. The Pre-typhoon Market...................................................................................................................................................32
9.2. Seasonal Calendar...................................................................................................................................................................32
9.3. Damage Assessment.............................................................................................................................................................33
9.4. Tourism Sector Mapping...................................................................................................................................................34
9.5. Key Findings and Response Options.......................................................................................................................36
Executive Summary
Super Typhoon Yolanda struck the Philippines on 8 November 2013 with devastating
winds, heavy rains and storm surges that reached up to 6 meters in height and
washed away the shorelines. It is believed to be the strongest typhoon in recorded
history affecting a total of more than 14 million people, among them nearly 4
million displaced. The hardest hit regions were Eastern Visayas (region VIII), Western
Visayas (region VI) and Central Visayas (VII). Yolanda totally destroyed half a million
homes and left half a million partially damaged. Basic services, such as electricity,
water and sanitation, fuel supplies, mobile phone networks and market areas were
also critically affected. Of the affected population 5.6 million people had their
livelihoods destroyed, lost or disrupted, including 2.6 million vulnerable people.
This RECOvER report is aimed at:
•
he Government of the Philippines agencies
T
implementing the Reconstruction Assistance on
Yolanda (RAY) plan for the economic sector;
•
B
ilateral donor agencies prioritizing and
designing their support to humanitarian relief
and reconstruction efforts;
•
umanitarian agencies seeking to minimize risks
H
for markets and implement market-supporting
actions;
•
he World Bank Group to design effective
T
investment and technical assistance instruments.
International Finance Corporation (IFC) is the private
sector agency of the World Bank Group. RECOvER
(Rapid Economic and Credit Overview for Early
Recovery) is a rapid assessment methodology that
combines an institutional and portfolio analysis
of credit services and market mapping of key
productive sectors for economies affected by disaster
and complex emergencies. The RECOvER fieldwork
took place three weeks after the typhoon between
4
December 3rd and 12th by a team of agribusiness,
fisheries and banking specialists from IFC. Credit
services are the central theme of the RECOvER
assessment and provide an entry point into all sectors
of the economy and linkages to the livelihoods of the
disaster-affected population. The assessment areas
in Iloilo and in Cebu were chosen according to the
severity of the damage in economic terms and the
early signs of moving out of the immediate relief
phase (eg. reopening of bank branches and return of
bank staff to work). Besides credit, four key economic
sectors were selected for this assessment: sugarcane
in northern Cebu; poultry on Bantayan Island;
tourism and fisheries in northern Iloilo. Sugarcane,
poultry and fisheries are the biggest contributors to
their respective regional economies.
The key findings are:
•
ural banks and MFIs have extensive reach and
R
coverage in the areas assessed of Northern Iloilo,
Northern Cebu and Bantayan Island, thanks
largely to financing from Government banks.
They are seeking to support current individuals
and micro, small and medium enterprise
(MSME) clients, after assessment on a case by
case basis, through loan restructuring and new
lending. Generally, affected MSME have relied
on savings or a wait and see attitude until they
could generate income and fulfill their past
liabilities rather than borrow. In this context,
moneylenders, limiting their loans to small
amounts (about $20) with high interest rate to
small shops, are not a significant risk.
•
•
he main challenge in fostering credit for future
T
recovery will be in supporting Government,
Commercial and Rural banks and MFIs to expand
to new segments whose payment capacity they
were not comfortable with before the typhoon.
This is particularly the case for agrifinance and
fisheries where value chain financing prevailed
before the typhoon but has completely stopped
in the present situation. Reaching new segments
will require designing emergency products (eg.
flexible term loans, leasing), promoting savings
and disaster insurance, and anticipating the
mainstreaming of these new segments into core
operations. The recovery period could represent
an opportunity to increase access to financial
services to MSMEs under-served even before
Yolanda.
orthern Cebu faces the twin challenges of
N
recovering from typhoon Yolanda and sustaining
a predominant sugarcane sector plagued by
low productivity and with dim prospects in the
future. The sugarcane crop resisted the typhoon
and will suffer a reduction in sugar content. The
net income of a key sector and employer in the
local economy is at risk for this year although
the assets have been safeguarded. While they
rebuild and repair their houses, sugarcane
planters and the local economy as a whole must
also face an uncertain competitive environment
in two to three years and accelerate the pace of
reform so that the recovery from the typhoon is
not derailed.
•
he flagship poultry sector on Bantayan Island
T
has suffered a second crippling blow with
typhoon Yolanda after suffering from the
effects of typhoon Frank in 2008. The local egg
production capacity must be entirely rebuilt. The
extensive use of value chain financing whereby
trader-egg producers provide feed to other small
producers on credit leaves important liabilities
to traders and has extinguished this avenue for
financing at present. Besides financing, renewing
the confidence of demoralized producers and
ensuring disaster prevention measures are taken
in rebuilding are pre-condition for a sustainable
recovery. As the sector consolidates towards
larger farms with many smaller producers
discouraged, it should also reach scale, higher
standards and resilience.
•
he fisheries sector, including small boats fishing
T
in municipal waters, commercial fishing vessels
and aquaculture farms was the mainstay of
Northern Iloilo communities, with fish brokers
playing a key role as market enablers and
financers. With direct asset losses upward
of US$19 million and financial obligations
outstanding to brokers, banks and microfinance
institutions, the recovery of a sector upon which
poor coastal communities and sailors rely upon
will require a combination of cash transfers to
small boat owners and guaranteed lending to
the sectors’ SMEs. Interventions must be enacted
simultaneously so that products and financing
can flow through this interdependent value
chain.
•
he incipient tourism sector in Northern Iloilo
T
was an important source of diversification
with growth potential for some of the poorest
coastal communities in the province. The sector
is currently inoperative and would need to be
rebuilt before the peak summer season starting
in April. Ensuring that cash for work programs
and fisheries support strengthen or at least do
no harm to the natural environment will be key
to the value proposition of the tourism sector in
the region.
Rapid Economic and Credit Overview for Early Recovery
5
Emergency Context
Super Typhoon Yolanda struck the Philippines on 8 November
2013 with devastating winds, heavy rains and storm surges that
reached up to 6 meters in height and washed away the shorelines.
It resulted in the death of at least 5,982 people with 1,799 more
still missing on 12 December. It is believed to be the strongest
typhoon in recorded history affecting a total of more than 14
million people, among them nearly 4 million displaced. The
hardest hit regions were Eastern Visayas (region VIII), Western
Visayas (region VI) and Central Visayas (VII). The typhoon
hit Leyte, with high winds and tsunami like storm surges, the
hardest devastating Tacloban City with its population of more
than 200,000 people.
On 18 June 2008, typhoon Frank had already affected the same
areas making first landfall in Eastern Samar and moving west
northwest over Leyte, Cebu, and Panay. Compounded by the
effects of the southwest monsoon, it had triggered landslides,
flooding and storm surges along eastern and western seaboards.
The most affected provinces were Iloilo, Capiz, Aklan and Antique
on Panay Island. Before Yolanda, typhoon Frank had been the
fourth costliest typhoon in the Philippines with 4 million people
affected, including 2.1 million people in Panay Island alone, and
damages estimated at more than USD 301 million.
The National Economic and Development Authority’s
Reconstruction Plan on Yolanda estimate the total damages and
losses from Yolanda at upward of USD 12.6 billion, including
physical assets destroyed, and reduced production, sales and
income immediately after the typhoon and in the near term. It
also estimated that 90% of the cost has been borne by the private
sector.
Yolanda totally destroyed half a million homes and left half a
million partially damaged. Houses made of wood and bamboo
did not resist leaving 85% of houses in the disaster area affected.
In Northern Panay and Northern Cebu, up to 55% of houses
were totally destroyed and 36% partially damaged.
Basic services, such as electricity, water and sanitation, fuel
supplies, mobile phone networks and market areas were also
6
critically affected. The National Grid Corporation of the Philippines estimated 2000 transmission structures
had been damaged, 60% of which in Panay. In Northern Panay and Northern Cebu along the path of the
typhoon, 80% of the population had no electricity, crippling businesses, as well as households. By the end of
November, power had only been restored up to Ajuy in Iloilo, leaving the northern area of the province to
function on generators. Full restoration of power was only expected by Christmas.
Of the affected population 5.6 million people had their livelihoods destroyed, lost or disrupted, including
2.6 million vulnerable people. Among them 2.4 million workers, including 1 million women, were affected.
The Multi-Cluster/Sector Initial Rapid Assessment (MIRA I) was the first comprehensive assessment of
damages in the path of the typhoon. It found the key impacts included loss of homes, food stocks, livelihood
and fishing assets, as well as the destruction of market areas and blocking of the physical means of access to
markets and financial services. In agriculture, over 60% of standing crops (rice, corn) were heavily affected
and more than 50% of plantation crops (banana and coconut trees). In the coastal areas of Panay and
Northern Cebu along the path of the typhoon (domain III), more than a third of fishing equipment and one
quarter of livestock were damaged as well.
Markets were also affected, particularly in Samar and Leyte, although it was not a major concern in Panay
and Cebu. Predictably, Samar and Leyte saw rice price increases of 30% to 50% with smaller increases of
10% in Panay and Cebu. Consequently, in the former, running out of food stocks for individuals was the
primary concern, while in latter regions the primary concern is the financial capability to buy food. As a
consequence, at the time of the MIRA I, 2.4 million people were estimated to be in need of food assistance.
By mid-December at the time of writing this report, the situation had stabilized with school resuming
already on 26 November in most of the affected areas and the needs of people shifting to recovery, notably
in the Central Visayas. On December 6, a first wave of people benefitted from the Department of Labor and
Employment (DOLE) emergency employment program.
The Multi-Cluster Needs Assessment (MIRA II) conducted in early December found 80% of the baranguays
had functioning markets. In Domain III alone, household incomes had decreased by 30% and household
expenditures by 23%. About 27% of households were receiving remittances. Of affected populations, 99%
had received some form of food assistance, 13% shelter materials, 9% cash transfers, and 2% agriculture or
fishing inputs.
Rapid Economic and Credit Overview for Early Recovery
7
RECOvER Objectives
RECOvER (Rapid Economic and Credit Overview for Early Recovery)
is a rapid assessment methodology that combines an institutional and
portfolio analysis of credit services and market mapping of key productive
sectors for economies affected by disaster and complex emergencies.
It is inspired by and complements the EMMA (Emergency Market
Mapping and Analysis) methodology used by humanitarian NGOs to
investigate critical markets to inform relief programming. RECOvER
shares the goals of EMMA to improve the understanding of markets to:
inform direct response options; assess opportunities for indirect forms
of market support; reduce the risk of doing harm to businesses and
households; assist in monitoring the performance and accessibility of
markets; improve the quality of disaster preparedness; and, identify the
knowledge gaps for further diagnostics.
RECOvER addresses a gap in current analysis that focuses on product
and labor markets directly affecting target populations but overlooks
financing modalities that both constitute increased liabilities in the
aftermath of disaster and provide opportunities for swifter recovery and
long term growth. It also covers economic sectors dominated by SMEs
that may not directly contribute to the food security, reconstruction
needs and subsistence of target populations but are crucial to the
economic recovery of a disaster or conflict-affected region, represent
a source of improved employment and diversification, and constitute
potential pillars for future growth.
This RECOvER report is aimed at:
8
•
The
Government of the Philippines agencies implementing the
Reconstruction Assistance on Yolanda (RAY) plan for the economic
sector;
•
Bilateral donor agencies prioritizing and designing their support to
humanitarian relief and reconstruction efforts; •
Humanitarian agencies seeking to minimize risks for markets and
implement market-supporting actions;
•
The Wo Bank Group to design effective investment and technical
assince instruments
RECOvER Area and Market Selection
Credit services are the central theme of the RECOvER assessment and provide an entry point into all sectors
of the economy and linkages to the livelihoods of the disaster-affected population. The assessment areas
in Northern Iloilo and Northern Cebu were chosen according to the severity of the damage in economic
terms as demonstrated by the MIRA 1 and initial government estimates and the early signs of moving out
of the immediate relief phase (eg. reopening of bank branches and return of bank staff to work). The narrow
coastal livelihoods of Northern Cebu, Northern Iloilo and Bantayan Island were particularly affected with
both agriculture and fishing sources of livelihoods damaged.
Besides credit, four key economic sectors were selected for this assessment: sugarcane in northern Cebu;
poultry on Bantayan Island; tourism and fisheries in northern Iloilo. Sugarcane, poultry and fisheries are
the biggest contributors to their respective regional economies. Tourism is a key sector for diversification for
the province of Iloilo as specified in its development plan 2011-2016. In the fisheries sector, the RECOvER
assessment focused on the commercial fisheries and aquaculture sub-sectors, in coordination with assessments
conducted simultaneously by International Rescue Committee and Action Contre La Faim focusing on
municipal fisheries. Municipal fisheries were covered directly by the RECOvER team only as part of the
microfinance assessment.
Rapid Economic and Credit Overview for Early Recovery
9
4. RECOvER Assessment Methodology
The RECOvER assessment team was composed of 4 specialists from the operations team of the East Asia
Pacific Department of IFC – two specialists in agribusiness and fisheries and two specialists in banking and
credit, under a team leader – the Head of Results Measurement for East Asia Pacific. Logistics support was
provided by a program assistant. In each of region VI and region VII, an IFC operations team member from
the area acted as facilitator for the assessment. The report was peer reviewed by IFC regional experts in
microfinance, SME finance, agrifinance and agribusiness.
The RECOvER team conducted a desk-review of pre-Yolanda data including regional development plans,
regional and provincial statistics, and selected value chain analyses available for the disaster area or similar
regions of the Philippines. It also collated post-disaster provincial and local government unit damage
assessments, humanitarian needs assessments and emergency market assessments. The RECOvER team
conducted semi-structured interviews with officials in local government units, value chain actors, branch
managers of financial services providers, and micro,
small and medium enterprises. The findings on
financial institutions are based on interviews
with 2 government banks, 2 commercial banks,
4 rural banks, 2 microfinance institutions, and 2
cooperatives with operations in northern Cebu and
northern Iloilo. The team also conducted focus
group discussions with small sugarcane planters,
microfinance clients and commercial fisheries
operators. Finally, the team performed direct
observation of productive assets affected by the
disaster.
Storage room of a retail shop in Bogo City, Northern
Cebu. The shop suffered minor damage to its stock of
goods and cereals due to flooding. In December, four
weeks after the typhoon, sales were still at a standstill
as traditional customers had lost their livelihood and
relied on relief goods. Credit and market assessments
aim to uncover the effects of a crisis throughout the
value chain and the status of financing mechanisms
that oil the local market economy.
10
The RECOvER fieldwork started three weeks after
the typhoon and was conducted over 9 days. It took
place in the province of Cebu from December 3rd
to December 6th and in the province of Iloilo from
December 7th to December 12th 2013. Fieldwork
in Cebu concentrated in the northern part of the
island, including the municipalities of Cebu and
Medellin, and on Bantayan Island. Fieldwork in
Iloilo took place in Iloilo City and the municipalities
of the northern 5th District, including Ajuy,
Balasan, Concepcion, Estancia and Carles, as well
as the island of Gigantes.
5.Northern Cebu and Iloilo Credit Overview
The credit market in the Yolanda-affected regions of the Philippines is a complex network of complementary
and mutually supportive providers that are state-owned and private, commercial and non-profit, formal and
informal, regulated or not. In this section, we provide a comprehensive overview of credit mechanisms starting
from the regulations underpinning the sector before exploring the situation of lenders, then segmenting the
market among disaster-affected individuals and MSMEs. We conclude with a demand and supply analysis
and response options.
5.1.Regulatory Framework and Emergency Measures
The Philippine banking sector is regulated by the Bangko Sentral ng Pilipinas ( BSP). The BSP provides
policy directions in the areas of money, banking and credit. It supervises operations of banks and exercises
regulatory powers over non-bank financial institutions with quasi-banking functions. To support banks in
areas affected by typhoon Yolanda, the Monetary Board of the BSP approved to grant temporary regulatory
and rediscounting to banks with head offices and/or branches in areas affected by Typhoon Yolanda.
The temporary relief appears in Memorandum No. M-2013-050 issued by the BSP. Upon voluntary
application by financial institutions in the designated affected areas, it provided for assistance to employees
of the financial institution, a grace period of two months from the time of application of all obligations to
BSP for rediscounting banks, and a loosening of reporting requirements for other banks.
Loosening dormancy fees on deposit accounts and the suspension of interest and charges on loans are a
banks prerogative and the BSP measures intend to create an enabling environment to adopt such measures.
Similarly, as stated by BSP, the relief package does not qualify or limit the applicability of write offs of loans
of affected borrowers and to minimize the impact of losses on the financial position of the affected banks
allow banks to recognize such losses on a staggered basis. The financial institutions interviewed during
RECOvER did not envision cancelling loans and preferred restructuring the loans after a careful individual
of the borrowers’ individual repayment capacity. This approach is consistent with international best practice
and would prevent borrowers confusing grants and cancellations, maintain borrowers’ credit discipline in
the future, and avoid tensions between borrowers with large and small outstanding debt. BSP ruled that
donor funds should be recorded as Retained Earnings-Reserve-Others rather than applied to loans written
off.
5.2.
Financial Services Providers Analysis
While the banks and MFIs sustained structural damage to their offices, majority were already open for
business in December. Operations have been affected as some branches were still offline and need to manually
process payment transactions in the nearest operating branch. Others have had to purchase generators as
there is still no power in some areas. This has resulted in slower processing and increased operational costs
for some of the institutions. Four weeks after the typhoon, the financial institutions were in the process of
assessing their individual borrowers.
Rapid Economic and Credit Overview for Early Recovery
11
Table 5.1. Central Bank of the Philippines relief measures
For all banks
For all
rediscounting
banks
For thrift,
rural and
cooperative
banks
Allowing banks to provide financial assistance to their officers and employees who were
affected by the calamity even if not within the scope of the existing BSP-approved Fringe
Benefit Program (FBP) subject to subsequent submission of request for approval of the
amendment to FBP to the appropriate supervision and examination department for
regularization.
•
a. Upon application, granting of a 60 day grace period to settle outstanding rediscounting
obligations as of November 8 2013 with the BSP of all rediscounting banks with head
office, or with branches or with end user borrowers in the affected areas except, those
with serious violations or findings with the Supervision and Examination Sector;
•
b. In addition, allowing the rediscounting banks to restructure with the BSP, on a case
to case basis the outstanding rediscounted loans of their end user borrowers affected by
the calamity, subject to terms and conditions of the implementing guidelines.
a a. During a temporary grace period for payment or upon their restructuring and
subject to reporting to BSP, exclusion of the loans of borrowers in affected areas, which
should have been reclassified as past due loans under Section X306 of the MORB on
8 November 2013 (date Typhoon “Yolanda” hit the country) and those becoming past
due up to 31 December 2014, from computation of past due loan ratio; provided that
BSP documentary requirements for restructuring of loans for this purpose are waived;
provided further that the bank will adopt appropriate and prudent operational controls;
b b. Reduction of the 5 percent general loan loss provision to 1 percent for restructured
loans to borrowers in affected areas from 8 November 2013 to 31 December 2014;
c c. Non-imposition of penalties on legal reserve deficiencies or TBs/RBs/Coop Banks
with head office and/or branches in the affected areas incurred starting from reserve
weeks ended 14 November 2013 to 15 May 2014 provided these reserve deficiencies can
be shown to be calamity related as certified by the bank rather than due to pre-existing
conditions;
d d. Moratorium without penalty on monthly payments due to the BSP until 30 June
2014 for banks with ongoing rehabilitation programs upon filing of application for
extension/rescheduling;
e e. For all types of credits extended to individuals and businesses directly affected by
the calamity, allowing, subject to BSP prior approval, the booking of allowances for
probable losses on a staggered basis over a maximum period of five years on loans
outstanding as of 8 November 2013; and f. Non-imposition of monetary penalties
for delays in the submission of all supervisory reports due to be submitted from 8
November 2013 to 30 June 2014.
12
The Philippine Crop Insurance Corp stated that they have started paying out on claims from the typhoon
damage. The Government portfolio guarantee program or Agricultural Guarantee Fund Pool has also
started to pay on claims of cooperatives, banks and MFIs in the disaster areas.
There has been an increase in withdrawal of deposits as savings are being used to fund reconstruction
of houses and business assets damaged by the typhoon. One MFI mentioned that they have processed
10,000 withdrawal transactions since the typhoon. After the typhoon, pawnshops have been mainly used for
remittances as they have cheaper transactions cost compared with banks. The volume of remittances, have
increased as funds from families and friends are being sent to affected areas.
The main credit providers in the areas assessed are as follows:
•
Government banks are the primary funders for public infrastructure such as the municipal office,
sports facilities and public markets. Most of these infrastructures in the areas have been damaged by
the typhoon. Government Banks also provide SME loans and wholesale funding to cooperatives and
microfinance institutions for on-lending to retail clients. Government banks are finalizing guidelines
for their calamity rehabilitation support program. This will include deferment and restructuring of
loans to affected borrowers and offering new reconstruction loans. New loans could include stricter
requirements for better construction standards which can also qualify in obtaining insurance for assets.
• Commercial banks are in both areas, with a stronger presence in Northern Cebu which has a larger
economic activity compared to Northern Iloilo. Loans are mostly to SMEs which are the larger entities
operating in these areas. This SME market includes medium to large poultry layer farms, feed mills and
commercial fishing boat operators who have suffered heavy damage from the typhoon. The exposure of
commercial banks in the affected areas is relatively small when compared to their entire portfolio in the
country.
•
Rural banks and Microfinance Institutions cover the lower end segment. They provide loans to small
and micro enterprises as well as individual micro loans and salary-backed loans. Examples of clients are
small sari sari stores, market vendors, traders, small fishermen and employees of SMEs. These institutions
are currently assessing the impact to their clients but those interviewed have already indicated that past
due rates can go from existing levels of below 10% to up to 30%. Some MFIs offer calamity/housing
insurance and their borrowers have been able to claim on this. Amounts however, are not enough to
cover reconstruction needs. Early initiatives of the Rural Banks and MFIs include providing relief goods
in the early stages of the post disaster, waiving delayed payment penalties and suspending collections for
1 month.MFIs and Rural Banks are in the process of assessing the impact of the typhoon to each of their
clients. Many are open to restructuring loans, but this will depend on the result of specific assessment for
each client. Most have indicated that if and when reconstruction/housing loans are provided, these will
only be focused on existing clients based on an assessment. Rural Banks and MFIs are in discussions
with external funders for possible restructuring of loans. Some institutions are considering providing
reconstruction loans with “soft” terms for affected borrowers, only if they are able to get new wholesale
funding for this purpose. MFIs are also careful about protecting their identity in their communities as
financial intermediaries which are different from “aid” organizations.
•
ulti-purpose and Agricultural Cooperatives provide lending to micro-entrepreneurs and farmers
M
since Rural Bank and Microfinance lending to agriculture crops is low. Most financial institutions view
this sector as high risk. Some will only lend if the farm owner is an employee with regular salary. Only
Rapid Economic and Credit Overview for Early Recovery
13
2 of the institutions interviewed lend directly to agriculture production and this is a very small part of
their portfolio. The main lenders to the agriculture sector are cooperatives who obtain wholesale funds
from government banks
• Value chain financing is a principal source of financing in the affected areas of northern Cebu and
northern Iloilo, especially for key sectors in like rice, sugar, poultry, and fishing. These are mostly loan
advances from traders and processors and can be in the form of cash or inputs such as fertilizers, feeds,
fuel and nets. Selling on credit is also provided by value chain players. Many traders and buyers have
not been able to collect on loans as fishermen and farmers have sustained heavy damage on production.
Value chain finance has stopped in the aftermath of the typhoon as demand for cash has increased
and transactions must be paid immediately. Most value chain borrowers have not been able to pay
outstanding loans after the typhoon.
•
A large section of the population is still unbanked and is mostly served by other sources of financing.
These are pawnshops and informal money lenders who charge up to 240% per annum. Informal
money lenders (bumbai, or “5/6”) only lend small sums with rapid repayment terms to individuals
who can immediately and visually show a source of regular cash flows, typically small stores. As a
consequence, they would not typically serve smallholder farmers. Feedback from interviews indicate that
informal money lenders have also become more cautious in terms of lending, but continue to provide
short term loans ( 1 day, Php1000 or US$22). Part of the informal source of funding also comes from
friends and families mostly living in bigger cities like Cebu and Manila or working in other countries.
5.3.
Segmentation Analysis
In northern Cebu and northern Iloilo, financing is needed for reconstructing public infrastructure and
houses, rebuilding businesses and recovering livelihoods. The MIRA II conducted in December 2013
found household incomes in domain III covering Panay and Cebu had decreased by 30% and household
expenditures by a quarter. As a consequence, more than a third of households had resorted to pawning or
taking an extra loan.
Those who are current bank clients and still have other sources of income such as employment or have other
assets they can use as collateral will be more likely to obtain restructuring of existing loans or even new bank
loans for reconstruction, subject to an assessment with their bank. However, only a few are employed and
mostly with the government. Majority of those affected have lost most of their income generating assets and
will have a hard time accessing new funding as banks and MFIs will be assessing each borrower’s capacity
to pay.
While there is a strong need for funding, many of those who have heavy damage on their homes and
businesses are very hesitant to borrow from commercial institutions. They are not confident they will be able
to pay back loans and meet collateral requirements, since they have lost their boats and their farms have been
badly damaged. Their damaged assets also have very little value for collateral. This is also compounded by
existing loan obligations, and an increase in expenditure from higher prices of commodities and rebuilding
of houses.
Most of those interviewed indicated that they will only consider borrowing if the terms have lower interest,
longer tenors and require minimal or no collateral. Some mentioned that they still need grant funding from
government or donors to restart livelihoods.
14
Type of Banks /
Institutions
Lenders covering
Northern Cebu
Fish traders, brokers,
processing plants,
Rice Mills, Hardware
stores, Fuel suppliers
Cebuana, RG, Palawan, informal lenders
( relatives, friends,
money lenders)
Progressive Rural
Bank, Barabaza Cooperative, TSKI, ASA,
CARD Bank
Landbank
Bank of Commerce
Lenders covering
Northern Iloilo
• Damage to Bank Structure
Impact of Typhoon
• Currently assessing clients and
discussing possible restructuring
of loans
Initiatives after Typhoon
Interest Range
and Security
9-12%
• Expects increase in Past
Due in portfolio
• Damage to Bank Structure
• Most of the value chain financiers have stopped giving credit
and deal only on cash basis with
clients
• Reasons for relying on informal
sources are fast processing,
minimal requirements, and no
need to enter a bank branch
• Many are still unbanked and
dependent on informal sources
of credits.
• discussions with funders for
better terms
• some have waived penalties
on delayed payment, stop
collection for a month
• Possible restructuring extension
of loans
• Currently visiting clients and
assessing
• looking to impose requirement
on building standards of future
loans to poultry houses
• Finalizing guidelines for
Calamity Rehabilitation Support
Program where a big portion is
for earmarked for reconstruction
• Ongoing discussions and
assessment of affected clients
for deferment and restructuring
of loans
• Assessing clients who are applying for reconstruction loans
• Real property
6-12%
• Increase in bad loans as
typhoon has reduced
productivity of rice and
sugar farms, destroyed
poultry farms, fishing
boats and fish ponds
• Money lenders selling
retail items like pillows
and blankets on credit
• Increased volume
of remittances for
pawnshops
• Expects increase in Past
Due in portfolio
• Damage to Banks
• Slower payment process
as banks are still offline
• Expects increase in Past
Due in portfolio
• Damage to Bank Structure
• Increase in withdrawal of
deposits
• Expects increase in Past
Due in portfolio
Sometimes no
interest just
security of
supply
Share of harvest
Retail assets /
home appliances
36% - 240%
• Real property
• Salary
deduction
18-30%
• Salary
deduction
• Real property,
• Slower payment process
as branches are still offline
• SME Loans backed by
property collateral,
• Advance loans to rice
farmers and fishermen.
• Credit for purchase of
retail goods
• 1 day multi-purpose loans,
• Loans against pawned assets, remittances,
• Deposits
• Real Estate Mortgage
loans
• Micro Finance loans,
• Micro Enterprise,
• Salary Backed loans,
• Deposits
• Wholesale loans to
cooperatives and MFIs
• SME loans
• Government Infrastructure
and Real Estate
• Livelihood loans,
• Salary backed loans
• Deposits
• Average loans are above
P500,000
Products Offered
Table 5.2. Financial Sector Players in North Cebu and North Iloilo
Commercial Banks
Banco de Oro
(BDO); Metrobank;
Philippine National
Bank (PNB)
Government
Banks
Rural Banks,
Microfinance
Institutions and
Cooperatives
ASPAC, Mactan
Rural Bank,
Fairbank, Rural
Bank of Sugbuanon,
BankWest, Rural
Bank of Bogo,
City Savings Bank,
Katipunan Rural
Bank, TSKI, CARD
Bank
Landbank, Development Bank of the
Philippines
Pawnshops and
Money lenders
Cebuana,
Palawan, Dover,
RD Pawnshop,
Gemmary, informal
lenders ( relatives
friends, money
lenders)
Value Chain
Players
Traders and dealers
of Rice, Sugar, Eggs,
Inputs, and Sugar
Mill
• In kind credit for farmers
in the form of inputs.
Credit terms for trader
clients.
15
Rapid Economic and Credit Overview for Early Recovery
•
Municipalities are important borrowers to government and commercial banks. Demand to fund
reconstruction of public infrastructure is high because many of the structures have been damaged. Some
of the municipalities however, have been able to get government insurance, while others have not.
• S
mallholder farmers in rice, corn or sugar mostly receive credit in the form of value chain financing,
with in-kind input supplies and cash to pay for daily labor, from cooperatives or agri-input suppliers except
when participating in pilot formal group lending microcredit schemes with currently limited reach. In
rice, corn and sugar, productivity will be affected but the crop cycles will take place. However, value
chain financing has stopped and all transactions are done exclusively on a cash basis. These populations
are not served by banks unless they are former (pre-land reform) sugar plantation workers who receive
pensions in deposit accounts. They are also not served by moneylenders who eschew borrowers that
cannot show daily cash flows.
•
For store owners, small business operators and petty traders, both houses and business assets and
income have suffered significant damage or reduction. Funding for reconstruction is very important to
rebuild homes and provide shelter. However, feedback from interviews is that demand for funding will
first be used to rebuild businesses and livelihoods so that income can be generated as soon as possible.
Stores and business operators face higher operating costs, including for running generators to keep
machinery running (eg. milling rice or produce ice for fisheries) or remaining open at night (eg. stores,
resorts), and higher transport goods for sourcing supplies or for processing in locations further away.
Store owners, petty traders, tourism operators have seen their business shrink with limited supplies,
competition from free delivery of basic goods, and limited purchasing power in the community. These
businesses have access to formal banking, microfinance or informal moneylenders depending on their
level and needs. Their first strategy has been to tap into savings, including savings held with MFIs.
Access to remittances from friends and families at home and abroad will also play a key role. In some
cases, they have immediately serviced their remaining liabilities with rural banks and MFIs to access
new credit.
•
perators in fisheries and poultry had received credit for their operations from trader-brokers, or
O
from MFIs under group lending schemes. Their primary assets are completely destroyed or severely
damaged. Trader-brokers currently only deal on a cash basis and face important losses on outstanding
credit to their customers. For fishermen, full asset replacement is needed either through asset donations
or asset purchases through temporary employment or calamity loans. Unless fisher folks can restart
Workers load a truck at the Estancia
fish port. The activity of the port was
drastically reduced because both small
boats and commercial vessels suffered
extensive damage and destruction.
Brokers at the port not only play a central
role in trading but also finance fishermen
and boat owners. With the crisis, paying
cash became the only acceptable way
to settle a transaction and value chain
financing all but stopped.
16
supplying brokers they will not receive working capital financing from brokers. For egg producers,
important disaster-resilient capital investments must be made but lending institutions will not support
them unless they can pledge the very security, houses and hen pens, they lost in the typhoon. SMEs such
as large poultry farms on Bantayan Island, commercial vessel operators in Northern Iloilo and medium
and large sugar planters in Cebu receive both advances from trader-brokers and held obligations with
commercial and rural banks as regular clients secured by wage income, land and real estate. These
enterprises have well identified and functioning markets and a track record of production and income.
5.4.
Key Findings and Response Options
•
he most important financing needs in the affected areas of Northern Iloilo and Northern Cebu is
T
for housing reconstruction and livelihood support. Capital is needed to reconstruct or repair houses.
There is no micro-housing or home improvement loan in the market that can deliver immediately
for affected populations. At the moment there is still a gap between funding needs of the typhoonaffected populations and what is available from government banks and financial institutions. There may
be opportunities in the future after the recovery to promote home improvement loans contingent on
meeting disaster-resilience standards.
•
While some of the affected areas are showing signs of economic recovery, there are still places badly
affected where people are unbankable after the typhoon. Based on the assessment, these include
municipalities in Cebu such as Bantayan Island, and Iloilo such as Estancia, San Dionisio, Carles, Sara
and Concepcion where small poultry farms, small fishermen and store owners have been badly affected.
In these areas, cash transfers to support rebuilding of houses and assistance to recover livelihoods is
needed and will free up household capital for productive investments. This support is important as it
will allow individuals to regain their capacity to generate income, which could qualify them for loans
and value chain financing to further upgrade their assets and lead to full economic recovery.
•
ural banks and MFIs have extensive reach and coverage in the areas assessed, thanks largely to financing
R
from Government banks. They are seeking to support existing current clients. Some of them will need to
restructure existing loans as they expect an increase in their non-performing loans. Some will also need
new funding to provide “soft” loans to their borrowers, to help in recovery. However, the main challenge
will be in expanding to new segments whose payment capacity they were not comfortable with before
the typhoon. Reaching new segments will require designing emergency products (eg. flexible term loans)
and anticipating the mainstreaming of these new segments in core operations. This expansion could
represent an opportunity to increase access to financial services to populations under-served even before
the super typhoon.
•
For those with relatively bigger businesses such as medium to large poultry farms and commercial fishing
boat operators, special funding is also needed as damage to assets has been significant. Government
banks, which have calamity rehabilitation funds, have started implementing measures to provide support
to these businesses. During interviews with government banks, they mentioned providing deferments
on existing loans, and offering grace periods with low interest rates for reconstruction loans. While this
is very helpful, it will need to be fast tracked as many of those businesses interviewed have not yet been
reached by these banks. In addition to this, some business owners have also expressed that requirements
on collateral are hard to meet given that their structures have been damaged. Again, like for the micro
segment, this period offers the opportunity to test and adopt new lending products (eg. leasing for
commercial fishing vessels) that promote greater access to finance.
Rapid Economic and Credit Overview for Early Recovery
17
•
Microfinance Institutions are rightfully assessing each of their borrowers to determine which loans
can be re-scheduled. This approach will help them be commercially sustainable. They also can play
a role in post disaster recovery by being channels for government and/or donor grants. They should
however only do so if they can manage this effectively and clearly communicate to their clients
that this is separate from their loan programs. Also, if MFIs plan to offer special disaster financial
products, they should clearly distinguish this from their regular loan products and this should only
be for a specific time before graduating their clients to core products.
•
he aftermath of the typhoon has also highlighted the need for Rural Banks and MFIs to encourage
T
their clients to accumulate savings or obtain micro/crop insurance as a contingency for disasters.
Educating poor households on the benefits of savings and micro insurance will be important to
help them prepare financially for future disasters. Existing projects on crop insurance in the private
sector should be looked at by other MFIs and Rural Banks to improve resilience of institutions and
borrowers against future calamities.
Table 5.3. Response Options Framework for Credit
Response Option
18
Advantages
Disadvantages/challenges
Feasibility and timing
Cash transfer and
in-kind support to
housing recovery
instead of home
improvements loans
Avoid expense of capital
on non-productive assets
If banks and MFIs
participate in delivery of
cash, need to distinguish
clearly with lending
High; immediate
Cash for work programs
and small grants
to micro and small
entrepreneurs
Restart small income
generation to allow
receiving lending and
value chain financing
If banks and MFIs
participate in delivery of
cash, need to distinguish
clearly with lending
operations
High; immediate
Fast track deferments
and restructuring based
on group assessment
Immediate visibility
for borrowers on their
obligations and focus on
economic recovery
Rural banks and MFIs will
need support from their
lenders; unwillingness to
lower credit standards
Medium; immediate
Provide new lending
to financial institutions
with partial guarantee
to cover existing
clients, including in
particular value chain
players financing small
producers
More rapid economic
recovery where markets
are functioning and can
draw on operational supply
chains
Limited current coverage
especially in agriculture
and fisheries
High; immediate
Technical assistance and
risk sharing facilities to
financial institutions for
new borrowers
Formalization of lending
to new segments with
emergency phase products
that can graduate to core
clients
Mistrust of borrowing by
potential new segments;
financial institutions
unfamiliar with clients
Medium; immediate
Promote savings and
disaster insurance
Increase disaster resilience
High frequency of disasters
would entail high insurance
costs
Low; medium and long
term
6.Northern Cebu Sugarcane Sector Overview
Sugarcane is the major crop of the northern Cebu municipalities of Bogo, Medellin and San Remigio. In this
section, we describe the sugarcane market pre-typhoon situation, show its seasonality, assess the damage, and
map the sector and its constraints in the early recovery phase. We conclude with response options.
6.1.
The Pre-typhoon Market
Northern Cebu, particularly the municipalities of Bogo and Medillin, is dominated by small and large
sugarcane plantations. The total area devoted to sugarcane in Cebu is 6,600 hectares for a value of production
of 3.3 billion pesos in 2012 (US$74 million). The area of Bogo/Medellin had 302 planters in total, including
185 planters with less than 5 hectares, 91 planters with between 5 and 50 hectares, and 26 planters more
than 50 hectares. For the town of Medellin itself, sugar covers 70% of the land area and half to up two thirds
of the population of 51,000 could be reliant on the sector.
The sector will be protected and regulated until the full completion of the obligations under the ASEAN
Free Trade Agreement in 2015. The Sugarcane Regulatory Administration (SRA) sets a quota for the share of
production that is delivered to domestic markets, US exports and world exports. Planters in Cebu have only
access to one mill, Bomedco. Under the sugarcane regulatory framework, the shares of the sugar returning
to the planter and owed to the mill after milling are set at 65% and 35% respectively. As a consequence any
improvement in price or productivity at the farm or mill level is directly passed on to both planters and
millers.
The sector in Cebu faces a major issue of low productivity compared to other regions in the Visayas and the
rest of the Philippines, even before considering foreign competition. Productivity in the area is at 37 tons
per hectares compared to 60 tons per hectares on Panay Island and as high as 120 tons per hectares other
countries in Southeast Asia. Quality of the sugar is also inferior to Negros. The liberalization of the sector to
foreign competition within two years threatens the very survival of this industry in Cebu.
The Bomedco mill receives 70% of the sugarcane from the largest farmers with cultivated areas above 50
hectares and 30% from smaller planters. To be profitable however the mill cannot solely rely on the largest
farmers and needs to maximize input. Planters receive a calendar for when they can bring their produce to
the mill once the milling season starts. Bomedco has 350 employees and a network of 3000 harvesters is
dependent on the start of milling. The mill itself is old and will need to replace its boiler within three years
or stop production.
Small sugarcane planters operate in clusters so that labor can be rotated between the farms. Daily wages in
sugarcane fieldwork could be as low as 50 pesos per day compared to the minimum agricultural wage of
more than 200 pesos. As a consequence, planters face serious labor shortages where laborers have access to
better employment opportunities locally or in Cebu City, notably in the construction sector.
A typical sugar farm of 1.7 hectares will deliver 70 bags and receive a total income of 91,000 pesos (US$2,070).
With production costs at 58,000 pesos, the small planter keeps 33,000 pesos (US$780) per year in net
income. To make a sufficient income in sugarcane, a household must access to at least three hectares and
reach a productivity level of 50 to 60 tons per hectare. This makes clustering and renting land a necessity.
Rapid Economic and Credit Overview for Early Recovery
19
6.2.
Seasonal Calendar
The typhoon landed on Cebu Island a couple of days before the schedule start of the milling season. The
milling season was thus delayed until the mill could reopen a month later.
Table 6.1. Sugarcane seasonal calendar
Month/Step
Nov.
Land preparation
x
Replanting
x
Fertilization
Jan.
X
x
Feb.
x
Mar.
April
May
June
July
Aug.
Sept.
Oct.
x
x
X
Cultivation
Harvest
Dec.
x
X
x
x
x
X
x
x
x
x
x
x
x
x
x
x
Hauling
x
X
x
x
x
x
Milling
x
X
x
x
x
x
6.3.Damage Assessment
Sugarcane is generally resilient to winds and floods. The main direct effect is a loss in sugar content. All
stakeholders interviewed in Bogo and Medellin estimated that 95% of the production had been affected with
a loss of about 30% in sugar content at the end of the milling season compared to the previous year. If this
level of sugar content loss is confirmed this would entail a total loss of value of production of about US$20
million for the region with significant consequences for the local economy and local public finances. It had
been expected that the harvest for this season would be a bumper harvest compared to last year with output
forecasted at 20% above the 2012 level. Given fixed production, the season will thus yield for a small 1.7
hectares planter an annual net income of 5,700 pesos ($138) instead of 33,000 pesos.
Sugarcane planters and workers have suffered extensive housing damage. Planters are facing a cash flow
issue to rebuild and ensure harvesting, replanting and cultivation can be financed in the coming months,
including paying for inputs and daily labor. Simultaneously, workers have to rebuild their homes and will
benefit from cash for work programs at 75% of the minimum wage and are unlikely to accept the wage and
working conditions in the sugarcane sector.
6.4.
Sugarcane Sector Mapping
The sugarcane market is centered around the Bomedco mill. Large and small planters supply the mill with
sugarcane and receive a share of the raw sugar that is then handled by broker-traders. In the past, the SRA
and the mill used to offer extension services to farmers. These had been discontinued before the typhoon. At
the same time, the City of Bogo, for example, only offers extension services to high value crops – vegetables
and mango, fisheries and corn.
20
the SRA and the mill used to offer extension services to farmers. These are no longer available. At the
same time, the City of Bogo, for example, only offers extension services to high value crops – vegetables
and mango,
fisheries
and corn.
Planters
receive
fertilizers
from agro-input dealers and from the cooperative. Value chain financing is
practiced whereby input dealers provide fertilizer on credit and a cash advance for labor costs.
Planters receive fertilizers from agro-input dealers and from the cooperative. Value chain financing is
Because
price differential
between
markets
and the
marketfor
is labor
consequential,
there is
practicedthe
whereby
input dealers
provideworld
fertilizer
on credit
anddomestic
a cash advance
costs.
occurrence of smuggling of sugar from countries like Thailand passed for domestic sugar.
Because the price differential between world markets and the domestic market is consequential, there
is occurrence of smuggling of sugar from countries like Thailand passed for domestic sugar.
Figure 6.1. Northern Cebu Sugarcane Market Map
Figure 6.1. Northern Cebu Sugarcane Market Map
The market environment: institutions, rules, norms and trends
Sugar Regulatory Administration
Major disruption
The market chain: market actors and their linkages
Partial disruption
Workers
Small
planter
Small
planter
Agro-input
dealers
Small
planter
Large farms
=4
Traders
BOMEDCO mill
Transport
Banks
Cebu buyers
Cooperative
Thai “magic sugar”
Key infrastructure, inputs and market-support services
Rapid Economic and Credit Overview for Early Recovery
21
6.5.
Key Findings and Response Options
•
S ugarcane is a driver of the local economies of Northern Cebu with an uncertain. It relies on traditional
methods of production and milling that suffers from a huge deficit in competitiveness and labor
shortages. Unlike the coconut and mango farms that lost their entire production, sugarcane planters
suffered a sugar content loss that will considerably reduce their income for the season. Unlike in mango
where the recovery will take five to seven years, crucially they will have an income and have safeguarded
their assets.
•
Apart from the larger planters who can borrow with commercial banks against real estate and other
productive assets, producers are dependent on value chain players for financing. Given that this year will
not see small planters generate a net income and the medium term threats to the commercial viability of
the sector in the region, any financing scheme is extremely risky even for value chain players.
Table 6.3. Response Options Framework for Sugarcane
Response Option
22
Advantages
Disadvantages/challenges
Feasibility and timing
Technical assistance and
financing to Bomedco mill
and farmers to cluster,
modernize and improve
productivity
Recovery and long
term sustainability of
an economic engine of
Northern Cebu
Need to ascertain whether
productivity gap is too
high to compete under
liberalization even after
modernization
Low; two-three years
Technical assistance and
financing to planters
for diversification,
alternative livelihoods and
transformation
Recovery and replacing
an activity with
uncertain future in the
medium term at a time
of change
Mutual dependence of mill
and planters; sugarcane
is a disaster resilient crop
and fast growth unlike
coconut and mango trees
Medium; near term
7. Bantayan Island Poultry Sector Overview
The poultry sector is one of the comparative advantages of Bantayan Island. In this section, we describe the
poultry market pre-typhoon situation, show its seasonality, assess the damage, and map the sector and its
constraints in the early recovery phase. We conclude with response options.
7.1.
The Pre-typhoon Market
Bantayan Island, located in the Visayan Sea and to the west of Cebu Island, was considered the “egg
capital” of the Visayas for sales across the region and nationally. As a whole Cebu Province, with production
concentrated in Bantayan, contributed 70% of egg produced in the Central Visayas, more than 24,000MT
between 2004 and 2012. Production went down sharply in 2008 after the island was struck by typhoon
Frank but the sector recovered to about 100 raisers of layer hens in the island, with each raiser maintaining
between 3,000 and 50,000 heads. Before the typhoon, the whole island had an estimated 1 million layer
hens and 400,000 grower hens and chicks, and produces about 800,000 eggs per day. This would put the
asset value in hens at least 210 million pesos (US$4.7 million) and the number of workers on egg producing
farms at around 250.
7.2.
Seasonal Calendar
Production is constant throughout the year but demand is highest during holiday season -- November and
December – and slows down during the summer season from March to May. Layer hens start producing
eggs at 18-22 weeks of age, and lasts until 60-70 weeks. Roughly 80% of layer hens produce one egg per day.
While surviving hens need one month to recover from the stress of the typhoon and fully produce again, new
hens would be of egg laying age at the earliest in April if production restarted immediately.
Table 7.1. Poultry seasonal calendar
Month
Nov.
Dec.
Demand
High
High
Restart
Jan.
Survivors
Feb.
March
April
May
Low
Low
Low
June
New
7.3.Damage Assessment
The total estimated direct damage in the egg layering industry in Bantayan Island exceeds 175 million
pesos across the municipalities of Bantayan, Santa Fe and Madridejos. Of this loss, 70% is in chicken
housing and 30% in the stock itself. Typhoon Yolanda caused damage to about 40% of hen houses. The hen
houses destroyed by the typhoon were made of nipa or corrugated roofs. In the immediate aftermath of the
typhoon, owners had to sell homeless chicken at a steep discount (i.e. 20 pesos, US$50 cents) in order to stem
the losses, because the hens would stop laying eggs for one month while the owners would continually have
to feed them. This distress sale allowed operators to pay their workers and to start rebuilding while limiting
expenditures on inputs.
Rapid Economic and Credit Overview for Early Recovery
23
Remains of an egg production farm on Bantayan
Island. The poultry farms on the island had been
rebuilt after typhoon Frank in 2008. Because they
provided chicken feed on credit, feed distributors stand
to lose large amounts on outstanding balances and
would today only accept cash for transactions
In the municipality of Batayan alone, all of 36 farms were affected with 30 of them losing their entire stock.
In total, it is estimated that more than 360,000 hens were lost or culled after the typhoon.
7.4.Poultry Sector Mapping
Egg layer producers, feed manufacturers, and dealers are the major employers in Bantayan Island. Egg layer
production businesses are family-owned businesses. In a number of cases, the family head used to earn a
living through employment (e.g. as a seaman) and channeled family savings to start a small scale egg layering
business. Typically, the family took out loans from a commercial bank to expand the business.
Eggs produced daily serve the consumption needs of Cebu City and nearby islands. Every week, trucks from
traders and egg dealers pick up eggs from each farm for distribution to public markets and various retailers.
Two chicken feed supply companies, B-Meg and Wellington, have factories in Bantayan Island to support
egg layer production. Feed prices have remained constant.
Various feed dealers are also present in the island. A few
egg producers serve as dealers of feeds for smaller egg
producers. Dealers also provide financing to producers. As a
consequence, dealers both owe to the feed supply company
and are owed money by their own customers. For example,
one feed trader/egg producer interviewed by the assessment
team served 20 small producers, 18 of which were unlikely to
return to poultry production after Yolanda. As the dealer had
produced feed before the typhoon, his clients were in arrears
of 2 million pesos
The reduction in the supply of eggs from Bantayan Island
has increased the price of eggs. Prior to the typhoon, each
large egg was sold at 3.90 pesos apiece at farm price. After the
typhoon, the price per egg increased to 4.90 pesos.
24
Workers unload feed in a large farm.
Feed is available from the two feed supply
companies on Bantayan Island but egg
production capacity has been durably
damaged
Figure 7.1. Bantayan Island Poultry Market Map
The market environment: institutions, rules, norms and trends
Provincial Veterinarian
World society for the Protection of
Animals, Philippines Veterinary
Association, Veterinary CSOs
Major disruption
The market chain: market actors and their linkages
Partial disruption
Producer-dealers
Feed producing
firms =2
Workers
~500
Small egg layer
producers
~100
Large farms
=4
Boat transport
Traders
Banks
Cebu, Leyte and other
markets
Key infrastructure, inputs and market-support services
Key Findings
andand
Response
OptionsOptions
7.5.7.5. Key
Findings
Response
•
Egg producers who need credit to restore their former production volume are facing challenges in
• Egg producers who need credit to restore their former production volume are facing challenges in
obtaining ititfrom
fromcommercial
commercialbanks
banks
requiring
very
security
destroyed
in typhoon,
the typhoon,
obtaining
requiring
thethe
very
security
thatthat
waswas
destroyed
in the
housing and
and hen
hen pens.
pens. Many
Manysmall
smallegg
eggproducers
producers are
are discouraged
discouraged and
and only
only aa portion
portionof
ofegg
egg producers
housing
affected, among
them
the largest,
arelargest,
seekingare
financing
to rebuildtothe
layer the
farms.
These
farmers
producers
affected,
among
them the
seeking financing
rebuild
layer
farms.
Theseare
credit worthy,
having
a sound
business
andmodel
experience
in layer farming,
having
farmers
are credit
worthy,
having
a soundmodel
business
and experience
in layer and
farming,
andreceived
commercial
bank
financing
in
the
past.
Only
commercial
bank
financing
will
meet
the
financing
having received commercial bank financing in the past. Only commercial bank financing will meetneeds
of layer
farms,needs
because
interest
rates
from rural
banks
cooperatives
high for layer
farms
the
financing
of layer
farms,
because
interest
ratesand
from
rural banksare
andtoo
cooperatives
are too
to make
money
given
the razor-thin
margins
in egg layer
business.
With
damages
both
high
for layer
farms
to make
money given
the razor-thin
margins
in egg
layerrepeat
business.
Withfrom
repeat
typhoon Frank and Yolanda, lenders are now hesitant to provide another round of financing without
demanding strong security and weather risk-mitigating measures from farmers. Insurance companies
will insure the houses only when layer farmers build typhoon-resistant hen houses.
Rapid Economic and Credit Overview for Early Recovery
25
•
he rapid recovery of the egg producers or its absence will have a knock on effects on the supply chains
T
because of the pre-financing they owe to the feed traders, who in turn received feed on credit from
the feed supply company. Value chain financing will only restart once a sufficient number of primary
producers have resumed production and restarted repaying their debts to traders. However, this cannot
happen without infrastructure for the hens and feed requiring the intervention of a third party financer.
•
As the sector consolidates towards larger poultry farms who will fill the supply gap for the discouraged
farmers, it will also become more attractive to bank and each farm will reach the scale where it can build
back better.
Table 7.3. Response Options Framework for Poultry
Response Option
26
Advantages
Disadvantages/challenges
Feasibility and timing
Provide credit guarantee to
financial institutions lending
to egg layer producers
Recovery of
employment and
restart economic
engine of Bantayan
island with well
identified demand
After two typhoons
confidence of egg layer
producer is seriously
diminished
Medium; near term
Technical assistance to
small producers for building
durable and affordable hen
houses
Limit future damage
and secure repayment
of loans
Scarcity of building
materials
Medium; near term
8.Northern Iloilo Fisheries and Aquaculture
Sector Overview
The fisheries and aquaculture sector is one of the major economic activities in Northern Iloilo, combining
municipal fisheries within 15 kilometers of the shore line on motorized or non-motorized boats, commercial
fishing and aquaculture. In this section, we describe the fishery market pre-typhoon situation, show its
seasonality, assess the damage, and map the sector and its constraints in the early recovery phase. We
conclude with response options.
8.1.
The Pre-typhoon Market
The Visayas is one of the major fishing grounds in the Philippines. Northern Iloilo and Capiz on Northern
Panay island are the major contributors to fisheries production at 35% and 26% respectively. Of the total
fisheries production in Western Visayas, 68% comes from capture fisheries and 32% from aquaculture
production.
Capture fisheries in Northern Iloilo is a multispecies and multi-gear fishery that involves deep sea fishing
on commercial boats and near-shore fishing using both motorized and non-motorized boats (municipal
fisheries). In Northern Iloilo, there were 87 commercial fishing vessels in total, half of which were in the
range of 30 to 35 gross tons and the other half in the range of 20 to 30 gross tons, employing crews of 25 to
35 and of 20 to 30 respectively. The commercial operators used the ports of Estancia and Iloilo depending
on their fishing grounds. More than 2500 sailors were thus employed on the commercial vessels. In Estancia
there are also wild blue crab processing activities including meat picking and canning. The market for
canned blue crab is Korea and Taiwan.
Aquaculture production comes mainly from fishponds fish cages that dot the landscape of Panay Island.
In Northern Iloilo, fish ponds are found from Barotac Viejo, to Ajuy, Concepcion, San Dionisio, Batad,
Estancia, Balasan and Carles. In Iloilo, by September 2013, there were 26 registered firm farms ranging
from 1 to 200 hectares with the majority ranging in size from 5 to 36 hectares. In Balasan municipality
which has 500 hectares of fishponds, milkfish is the major species cultured along with a mix of other species
including shrimp, king crab and sea bass. Both landed catch and cultured species are sold at the Estancia
Fishport Complex. The markets for cultured milkfish are local markets, Estancia Fishport and eventually
restaurants and city markets. Cultured king crabs are sold to local traders who exports the crab to China/
Macau via the Roxas City airport. Sea bass is a low volume, high value fish that is sold to restaurants in
Manila via the Estancia Fishport traders.
8.2.
Seasonal Calendar
Capture fisheries produce a mix of different species and the major ones noted are sardines, anchovies, scads,
breams and tuna which have different seasonality. Thus, while value and mix of species may differ within
the year, fishing activities occur throughout the year.
Rapid Economic and Credit Overview for Early Recovery
27
Demand for aquaculture products like milkfish and crab is high during December and March/April
corresponding to Christmas and Holy Week season. Ponds can harvest milkfish three to four times a year
for local and domestic markets.
Blue crab peak season catch is in quarters 2 and 3 and peak processing follows in quarters 3-4.
8.3.Damage Assessment
The storm surges severely affected the coastal communities of Northern Iloilo. According to a report made
on 27 November by the Office of Civil Defense Region 6, damages in fisheries, totaled 871 million pesos
(US$19.6 million), including 312 million pesos (US$7 million) in commercial fishing, 385.4 million pesos
(US$8.6 million) in municipal fishing, and 173.5 million pesos (US3.9 million) in aquaculture. The losses
estimated for commercial fishing are likely to be much higher given that a deep sea fishing vessel costs 10 to
20 million pesos (US$220,000 to $450,000). The individual cost was also high. For example, the typhoon
claimed 15 victims among sailors of commercial fishing vessels in the town of Estancia.
In Northern Iloilo, half of the small boats were destroyed and a further third damaged to be repaired. For
those who had motorized boats, the engine was safeguarded at home.
Larger fishing vessel had been secured together by their owners behind the protection of an island rather
than relocated further away from the path of the typhoon. The severity of the typhoon surprised everyone
and the commercial vessels broke their moorings en masse. Of the 87 commercial fishing vessels based in
Northern Iloilo, 5 were deemed repairable at the time of the assessment.
For fishpond owners, direct damage came in the form of falling dikes and the contamination of the water
in the pond.
Destroyed commercial vessels
in Estancia Municipality in
Northern Iloilo. The boats had
been anchored behind a rocky
island that provides cover in case
of storms. The super typhoon was
so violent it washed off the boats,
scattering the engines across the
bay. Each of these boats employed
up to 35 workers from the
captain to the deck hands.
28
Besides the direct damage of the typhoon, in the aftermath of the report, demand decreased because of
rumors circulated that the fish was feeding on corpses in the sea and the oil spill from the power barge raised
fears of contamination. As a consequence, the price of fish was reported to have dropped in half immediately
after the typhoon in spite of the lack of supply, before it recovered once the rumors were dispelled.
For the Estancia Fishport Operator, sales have dropped by more than 50%, a reduction of 35 million pesos
(US$787,000) per month, and it is likely as much as 30% of brokers will not come back in 2014. In the
process the municipality also loses 585,000 pesos (US$13,000) in broker license fees. Fees from brokers
alone are estimated to earn the local government 2million pesos/year.
At the Estancia Fishport, the equipment at the blue crab processing factory (Heron Point) was also washed
away, leaving 100 to 200 workers without regular employment.
8.4.
Fisheries and Aquaculture Sector Mapping
The three distinct operators of small fishing boats, commercial vessels and aquaculture farms come together
as a sector around the fish brokers. There are about 50 licensed fish brokers operate in Estancia Fishport
Complex. These brokers sell the catch of fishers and the produce of aquaculture operators and earn a 5%
commission on sales. Capture fishery products accounts for about 70% of their sales with the rest accounted
for by aquaculture products. The brokers then sell to buyers from Iloilo City and surrounding provinces (e.g.
Caticlan, Aklan) who come to the Fishport with their trucks to buy fish on agreed schedules. The brokers sell
the products on a cash basis and pass on the proceeds within a day to the fishers. Some brokers also provide
financing to fishing boats operators.
Small boat operators received credit for food, fuel and nets from buyers. Everything was provided in kind
and offset with the harvest. Typically, this credit was provided at cost so that the buyers could secure the
supply. The buyer would then make money on aggregation, charging a fee per sack. This financing can be
complemented but is generally not supplanted by microfinance. With the typhoons, small boat owners’
obligations towards their brokers still stand. Brokers then have to advance plywood, epoxy and the engine,
for boat owners to carry out the repairs so that they can then supply again.
Brokers also secured the catch from commercial vessels by advancing the fuel. Large vessels also benefitted
from credit from equipment suppliers. The system is currently frozen and important informal obligations to
value chain players and formal obligations to commercial and rural banks remain.
In relation to inputs, a Save the Children report on boat building materials notes that, owing to effective
market integration, besides small increases in prices, boat materials are readily available on the market.
However, large operators and brokers are facing a doubling of the cost of ice due to the disruption in the
electricity supply. This rise in the price of ice, combined with the need to reach processors operating further
away, have reduced margins in the supply chain.
In aquaculture, pond owners have easily repaired their infrastructure. The main issue presently in the
aftermath of the typhoon has been the supply of feed and purchasing new fingerlings. Aquaculture operators
in catfish production – which is carnivorous, could rely on “trash fish” discarded by commercial vessels as
Rapid Economic and Credit Overview for Early Recovery
29
unfit for sale and bought for a nominal fee. This “trash fish” has become more expensive and hard to find
with anemic activity at the fish port. For other operators, the input in the form of chicken manure from
Bantayan has been disrupted (see poultry overview). Owners have therefore switched to commercial feed
instead which is readily available. The main source fingerlings and fish fry from hatcheries have not been
affected and are ready to supply fishpond owners. But with huge losses on their stock and other financial
requirements like housing, owners are hard pressed to invest.
Figure 8.1. Northern Iloilo Fisheries and Aquaculture Market Map
The market environment: institutions, rules, norms and trends
Bureau of Fisheries and
Aquatic Resources (permit,
license, seasonal prohibition)
Major disruption
Partial disruption
Local Government
Unit (license, fee, tax)
CARLESANON (boat
association)
The market chain: market actors and their linkages
Workers
~35/ boat
Hatcheries
Commercial
vessels
Boat
inputs
Small boats
Aquaculture
farms
Traders
Processors
Brokers
Wholesalers
Retailers
/restaurants
Fishports
Electricity/ice
Key infrastructure, inputs and market-support services
30
Feed
Large markets
8.5.
Key Findings and Response Options
•
According to the Multi-Sector/Cluster Initial Rapid Assessment (MIRA 1), fishing inputs were the
highest ranked priority for livelihoods recovery in the areas of Panay and Cebu along the path of the
typhoon, with more than a third of fishing equipment heavily damaged or lost. In Northern Iloilo, the
fishing sector has been crippled in all its components including municipal fisheries, commercial fisheries,
aquaculture, and processing. Assets and sources of income have been literally wiped out of entire coastal
communities. With cash not flowing through the systems and large pre-typhoon liabilities, financing is
a standstill and will not recover until fishing assets are replaced and regular trade and income is resumed
along the value chain.
•
esides value chain financing from brokers, small boat owners have been able to access microfinance
B
in certain coastal communities. These group lending scheme lend to women borrowers. While men
fish, women handle and sell the fish onshore twice a week when a trader comes. With only 10 to 20%
of boats remaining in operation, this means that currently whole groups are failing. Repayments are
currently on a moratorium. In the meantime, repayment strategies include tapping cash bonuses from
the municipality, doing carpentry work, seeking remittances and a booming charcoal trade from the
rubble. Informal moneylenders (5/6 or bumbais) only lend small sums of about 1,000 pesos ($20) at a
high and are not a significant factor for small fishermen.
•
For large commercial fishing vessel operators, brokers and pond owners, lending is provided through the
SME operations of financial institutions including commercial and rural banks. They typically have a
good track record with their lenders, but with outstanding loans they cannot repay from their fisheries
assets, reduced collateral from their real estate and other businesses, lending prospects will be severely
limited once financial institutions have finished their appraisals.
Table 8.3. Response Options Framework for Fisheries and Aquaculture
Response Option
Advantages
Disadvantages/challenges
Feasibility and timing
Cash transfers for small
boat owners
Rapid recovery of
livelihoods though asset
and input purchases by
owners themselves; avoid
default of group lending
and ensure value chain
repaid for advances and
enabling restart of value
chain financing
Limit overfishing; avoid
illegal fishing practices (eg.
dynamite fishing)
High; immediate
Guaranteed leasing and
lending to commercial
operators and brokers
Rapid recovery of
employment source; value
chain repaid for advances
and enabling restart of
value chain financing and
flow of cash in the system
to all actors including small
boat owners
Limit overfishing; avoid
illegal fishing practices (eg.
corrals damage)
High; immediate
Technical assistance to
aquaculture and lending
to operators for input
purchases
Ensure higher productivity;
leverage functioning
markets for inputs
Propensity of aquaculture
farms to only make small
incremental changes if any;
lack of professionalism
Medium; near term
Rapid Economic and Credit Overview for Early Recovery
31
9.Northern Iloilo Tourism Sector Overview
The tourism sector in Northern Iloilo is an emerging sector of growing importance in poor coastal and
inland communities. In this sector, we describe the tourism market situation and potential before the
typhoon, show its seasonality, assess the damage, and map the sector and its constraints in the early recovery
phase. We conclude with response options.
9.1.
The Pre-typhoon Market
In 2011, the province of Iloilo and Iloilo City received more than 400,000 tourists, 91% of which were
domestic tourists, supported by a new airport with frequent connections to Cebu and Manila. Northern
Iloilo markets itself as an eco-tourism destination for culture, heritage, sandy beaches, natural beauty, and
seafood, both on the Coast of Panay Island and northeast of the island on the small island groups reachable
by small boats. It successfully attracts domestic tourists and a minority of backpackers interested in isolated
and less travelled destinations.
The tourism sector in Northern Iloilo is dominated by small inland and island establishments catering to
domestic tourists. It is a recently emerging sector with the first resort opened on Gigantes Island less than
two years ago.
In 2012, partial data from 22 establishments in the 5th District reporting to the Provincial Department of
Tourism for January to October, shows that tourists stayed 32,533 nights in total. Two thirds of those nights
were accounted for by the two largest establishments located in Estancia with more than 30 rooms each.
Half of the establishments reporting had less than 10 rooms, and the other half between 10 and 20 rooms.
Most of these small and medium sized establishments reported very low occupancy rates, rarely exceeding
50%.
In 2007, a tourist in Iloilo spent on average 5,000 pesos (113 US dollars) per day, including 2,290 pesos for
hotel, 1,690 for food, 1,572 for transport, 1,532 for shopping and 1,071 on miscellaneous expenses. If we
assume that tourist expenditures in Northern Iloilo amount to half of the Iloilo average then the sector in
District 5 generated 81 million pesos (1.8 million US dollars) in 2012.
9.2.
Seasonal Calendar
As Iloilo caters to domestic tourists including tourists from the region, arrivals are fairly continuous including
from tourists who will stay for a long week end. The peak season for domestic tourists is on and after Easter.
Table 9.1. Reported tourist nights in the 5th District of Iloilo
32
Month
Jan.
Feb.
March
April
May
June
July
August
Sept.
Nights
6,639
6,523
8,336
11,275
10,288
6,578
5,250
5,312
2,747
9.3.Damage Assessment
Table 9.2. Tourist accommodation
damaged or destroyed in Northern
Iloilo
Municipality
# of establishments
Estancia
3
Balasan
2
Barotac Viejo
3
Ajuy
4
Concepcion
5
Carles
12
San Dionisio
3
Total
32
The path of the typhoon struck the northern part of
Iloilo where the most promising tourism sites were
located. All establishments had suffered damage
and at the time of the assessment only one resort in
Carles, one in Estancia (catering to the humanitarian
community) and one on North Gigante Island
could operate. None of the establishments but two
had continuous power supply. Besides being unable
to receive guests, with no electricity, the resorts
are also unable to access the internet and take
reservations. In total, 32 establishments reported
damage compared to a list of 22 regularly registered
and reporting to the Provincial Department of
Tourism.
The provincial Department of Tourism estimates
the total damages at 37 million pesos (US $855,000).
The average loss per operator is 850,000 pesos (US
$18,000).
The typhoon also substantially damaged the natural environment upon which the tourism sector relies.
Besides an oil spill due to the unmooring of the power barge off the cost of Estancia, there was substantial
damage to the fauna and flora. For Iloilo, the Department of the Environment of Region VI reported 52 of
its plantation and protected areas projects and one reforestation site damaged had been damaged.
Destroyed resort on the Island of North
Gigantes. The resort was about to open on
December 27. Island-based resorts cater to
domestic tourists and foreign backpackers
interested in island hopping, cave watching,
fishing and seafood. They provide alternative
livelihoods like tour guiding or motorbike
renting to fishermen
Rapid Economic and Credit Overview for Early Recovery
33
9.4.
Sector Mapping
The small establishments that make up the tourism sector in Northern Iloilo are largely owned by people
for whom tourism is not the main source of income, professionals, returning overseas workers, local brokers
and value chain players, with assets and collateral or a regular source of income. These owners have lost
substantial assets but can rebuild through self-financing or if they have access to credit. From interviews
with owner-operators, their appetite for credit was limited.
Besides repairing and reconstructing the resorts themselves, the tourism sector in Northern Iloilo is heavily
dependent on and a contributor to community recovery because of its extensive input and forward linkages.
The Iloilo small resorts are direct employers of typically between one to two workers each or 1 worker for
two rooms on average. At present, the sector is unable to employ individuals except to repair and reconstruct
the facilities. In total, among establishments regularly reporting to the Department of Tourism this means
about 100 direct jobs. The only exception seems to be two establishments that have been able to operate and
serve the humanitarian sector.
In addition, fishermen act as tour guides for visitors interested in fishing, cave watching, and island hopping.
A tour guide will earn 500 pesos per day, twice the minimum wage in agriculture in Region VI. They will
also rent their boat. In total on the Island of Gigantes, 40 tour guides were trained to operate on island
hopping and cave tours around the group of six small islands.
34
Bus services to the northern Iloilo towns and boat transport to the islands is operating. With no tourists,
motorbike trips are limited to inhabitants. Motorbike drivers would earn 20 pesos per small trip.
These sources of employment are important opportunities for livelihoods diversification and upgrading for
impoverished communities.
Furthermore, seafood and fresh fish is part of the appeal of Northern Iloilo. Municipal fisheries have lost
a small but direct market. While the resorts have no clients presently and so no need for supplies, they
would also have difficulties accommodating clients if they did. Currently though, stakeholders report that
biodiversity has increased owing to the halt in fishing.
The sector is dependent on the state of the natural and built environment for its attractiveness. The super
typhoon left houses destroyed and scattered debris all along the seashore. It also “browned” the hills and
mountains and further destroyed the corals. But key constraints to the growth of the sector pre-date the
typhoon. Over-fishing and illegal fishing practices were issues and are likely to increase in the future such as
dynamite fishing by small fishermen and commercial operations over the coral grounds.
Figure 9.1. Northern Iloilo Tourism Market Map
The market environment: institutions, rules, norms and trends
Provincial Department of
Tourism – Regional Tourism
Plan (pending)
Northern Iloilo Tourism
Association; Association of
Passenger Boats
One-Step Project: inclusive
tourism development by
DSDW, DOT, USAID
Major disruption
The market chain: market actors and their linkages
Partial disruption
Workers
~100
Small fisheries
Tour guides
Boat transport
Bus transport
Resorts
= 32
Motorbike drivers
and land transport
Retailers
Electricity
Inland environment
Marine environment
Key infrastructure, inputs and market-support services
9.5. Key Findings and Response Options
•
Rapid Economic and Credit Overview for Early Recovery
The incipient tourism sector in Northern Iloilo was an important source of diversification with
growth potential for the local economy that is intimately linked to the livelihoods of some of the
35
9.5.
Key Findings and Response Options
•
he incipient tourism sector in Northern Iloilo was an important source of diversification with growth
T
potential for the local economy that is intimately linked to the livelihoods of some of the poorest coastal
communities in the province.
•
he sector is currently inoperative and would need to be rebuilt before the peak summer season. As the
T
establishments currently cater would domestic tourists in small cottage clusters, the establishments can
rebuild step by step through self-financing from their main income source or if they receive appropriate
lending. However, with low occupancy rates in the sector before the typhoon, owners will be reluctant
to take risks unless a strong tourism marketing campaigns sparks tourist interest.
•
ecovery of the fishing sector, while preventing overfishing and illegal fishing practices, and of the
R
natural environment is a pre-condition for the re-emergence of the tourism sector. The way assistance
is provided through cash for work small infrastructure programs and fisheries rehabilitation will have a
clear impact on attractiveness of the tourism sector and entail risk to its eco-tourism anchoring.
Table 9.3. Response Options Framework for Tourism
Response Option
36
Advantages
Disadvantages/challenges
Feasibility and timing
Cash for work on the
rehabilitation of the
natural environment
(tree planting, beach
cleanup, mangroves)
Immediate cash transfer
to vulnerable populations
contributing to growth
Labor transfer away from
subsistence and farming
activities; need to be
paired with long term
strategy to maintain the
natural environment
High; immediate
Lending to existing
small tourist
establishments with
track record of arrivals
Regeneration and
diversification of inland
and island barangays
Operators propensity
towards incremental
scale up rather than
one-off investments;
willingness to borrow
and preference to selffinance
Medium; before peak
season start in April
“We are open”
tourism campaign and
continuous updating of
availability
Ensure full occupancy
of currently available
accommodation with spill
overs in tourism supply
chain
Long term damage to
reputation if clients are
disappointed; diluting
destination tourism image
with emphasis on disaster
High; February to April
before peak season
Create and enforce
marine sanctuaries and
coral gardens
Protect the natural
environment, ensure
sustainability of municipal
fisheries, and create space
to develop fishing tourism
Limit catch for
subsistence fishermen
and for commercial
vessels
Medium; long term
Rapid Economic and Credit Overview for Early Recovery
37
The RECOvER assessment team was composed of:
Charles Lor – Team Leader
Conrad Antonius Vasquez de Jesus – Access to Finance
Ferdinand Sia – Results Measurement/Access to Finance
Natalie Macawaris – Sustainable Business Advisory
Viryak Sem – Sustainable Business Advisory
Acknowledgements
IFC is grateful to all officials in NEDA Region 6 and of the provincial and local governments in Iloilo and Cebu who have shared
their views for this assessment, to all bank and company representatives who have shared their work and challenges with us
and facilitated discussions with their disaster-affected customers. The RECOvER team would also like to thank Laura Laurio for
organizing the logistics and Julie Bayking and Glenn Ismael Ymata for facilitating the discussions in Iloilo and Cebu respectively.
The team also benefitted from the expert advice of IFC East Asia Pacific regional experts in microfinance, agrifinance and
agribusiness. Layout design provided by Kunthea Kea.
Bibliography:
Action Contre la Faim, Initial Assessment for Market Report: Iloilo, Philippines Typhoon Yolanda Response, 2 December 2013.
Department of Agriculture, Cebu Provincial Agricultural Profile, 2012.
Eric Bellman, “Chicken Farmers Try to Recover from the Typhoon”, Wall Street Journal, 25 November 2013.
MIRA, Multi-Sector/Cluster Initial Rapid Assessment, December 2013.
MIRA II, Multi-Sector Needs Assessment, December 2013.
NEDA, Reconstruction Assistance on Yolanda, December 2013.
NEDA 6/RDRRMC 6, Western Visayas Rehabilitation and Reconstruction Plan, 2 December 2013.
Province of Iloilo, 2012 Provincial Profile.
Save the Children, Panay Island Market Assessment for Boat Building Inputs, 29 November 2013.
WFP, Trade Capacity Assessment, December 2013.
2013