Mindanao floods to hit Q4 GDP; gov’t, business sector mobilize aid

MANILA, Philippines–The devastation in Mindanao in the wake of tropical storm Sendong is seen to cut agricultural exports, regional household consumption, and
inter-island trade in the fourth quarter and in early 2012, economists said. The damage from Sendong, the 19th tropical cyclone to hit the country this year, has extended as far as MIMAROPA and the Bicol regions.

Government and private organizations are thus calling for assistance and volunteers to help the region recover as soon as possible.

The physical damages and loss of lives as well as disruptions in business may hurt agricultural exports by about 5 to 10 percent, domestic demand by 10 to 15 percent, and domestic trade by about 10 percent, said Dr. Cid L. Terosa of the University of Asia and the Pacific via text message. Terosa said the effects would likely overflow through to the first quarter of 2012.

Farm damage alone has amounted to P8.121 million, according to government figures.

Cagayan de Oro and Iligan City represent one of the most dynamic urban centers in Mindanao, noted Dr. Benjamin E. Diokno of the U.P. School of Economics, although he said it’s too early to make a full economic impact assessment. “It’s not only the loss in farm output. There were significant damages to public infrastructure as roads and bridges and entire villages were swept away by the flood. More than 600 people died and thousands of houses were lost. Business activities are expected to contract owing to power failure,” Diokno said.

“Rehabilitation and construction cost could be high but it depends on what infrastructure, farmlands and so on were affected. Part of the stimulus plan can be used for infrastructure rehabilitation which can employ people especially those from affected areas,” said Dr. Gilberto M. Llanto of the Philippine Institute for Development Studies.

Mindanao contributes about a fifth of the country’s gross domestic product (GDP), based on data for the pest 8 years, according to the National Statistical Coordination Board (NSCB).

In 2009 alone, Mindanao contributed P261 billion (at constant prices) or more than 18 percent to the country’s GDP, NSCB secretary-general Romulo A. Virola said.

Socioeconomic Planning Secretary Cayetano W. Paderanga Jr. said in a text message that the National Economic and Development Authority (NEDA) is thus initiating assessments to guide rehabilitation work in the region.

“We at NEDA are trying to assess the economic damage and initiating the process for rehabilitation and redevelopment. The immediate help for the victims and immediate recovery efforts will be led by the NDRRMC (National Disaster Risk Reduction and Management Council). We are coordinating with DND (Department of National Defense) and DILG (Department of Interior and Local Government) on these,” Paderanga said.

At the same time, private groups such as the Philippine Business for Social Progress (the largest corporate-led, non-profit social development foundation in the
country) are mobilizing donors and volunteers to help Mindanao recover as quickly as possible.

Farm damage at P8.12M

The estimated damages in Mindanao’s agriculture sector caused by Sendong reached P8.121 million, the Department Agriculture reported on Monday.

In a memorandum to President Benigno Aquino III, Agriculture Secretary Proceso Alcala said his department has started with the assessment and validation on the extent of the damage to Mindanao’s farm sector caused by heavy rains and flash floods.

As of 10 a.m. Monday, partial reports received by the D.A. indicate total area affected have reached some 3,964 hectares – of which, 1,904 hectares were rice areas and 2, 060 hectares were planted to corn.

“In terms of value, initial estimates of losses amounted to P8.121 million. Of which, P3,568,525 are direct losses of rice seeds and seedlings and P4,533,420 are losses to expected corn production and seedlings,” Alcala said.

Partial reports indicate that rice crops affected cover some 1,904 hectares – which include 1,305 hectares in Palawan (MIMAROPA), 455 hectares in Camarines Sur (Bicol Region), 41 hectares in Northern Mindanao, and 108 hectares in Davao del Norte (Davao Region).

“These are newly transplanted or in the seedling stages and are expected to recover as soon as flood waters recede. Hence, no estimate of volume of production loss is reported,” the report said.

For corn, a total of 2,060 hectares have been affected with Bukidnon reporting majority of the damaged areas at 1,500 hectares. Of these, 1,895 hectares are in the seedling and vegetative stages while 165 hectares are in the reproductive and maturity stage.

Assistance mobilized

As the estimated damages caused by typhoon Sendong in the agriculture sector alone reached P8.121 million (according to government figures), private companies and non-government organizations are mobilizing help for those affected.

Maynilad Water Services, Inc. (Maynilad) said in a statement that, together with Smart Communications (Smart), it sent around 2,000 pieces of bottled water and 300 five-gallon containers with potable water to the flood victims in Cagayan De Oro City. Maynilad said they are sending donations with the help of the CDO Water District,
Department of Social Welfare and Development, Department of Public Works and Highways Secretary, and Philippine Air Force.

In the next few days, Maynilad and Smart will ship 2,000 pieces of 1.5-gallon containers of potable water to the affected families. The water company is also deploying its portable water treatment equipment to Cagayan De Oro together with personnel who will train locals on how to produce potable water on site for the evacuees. Maynilad is putting together its own relief drive so it could raise more supplies for distribution.

The Philippine National Red Cross said in a statement that Sendong affected a total of 5,884 families, with 202 injured and 162 still missing. Thousands are sheltered in 23 evacuation centers, it said.

The Red Cross is accepting donations online, through banks (Banco De Oro, Bank of the Philippine Islands, Metrobank, Philippine National Bank, Unionbank of the Philippines), any of the 1,500 Cebuana Lhuillier pawnshops nationwide, G-Cash, and donations via text message from Globe and Smart subscribers.

Donations can also be coursed through LBC outlets.

The Philippine Business for Social Progress (PBSP) is currently mobilizing donations for Mindanao as well as coordinating with network partners for the relief-giving mission. PBSP said in a statement that interested parties may call the organization at 5277741-48 for more details.