[As Prepared]

[Greetings]

The U.S.-Philippines Partnership for Growth with Equity was envisioned to address constraints to inclusive economic growth in the Philippines. COMPETE, which is one of the key USAID projects that contribute to this bilateral initiative, promotes greater trade and investment, thereby improving the overall competitiveness of the Philippines.

I am proud to say that through COMPETE, our partnerships with the national and local government units and the private sector have yielded significant achievements. Together, we have established better infrastructure, advanced the competitiveness of key sectors and improved access to credit.

I would like to take this opportunity to highlight just some of the milestones that we have achieved in a span of five years:

• Our partnership with the Department of Public Works and Highways and the Department of Tourism bolstered access to tourism destinations. Between 2012-2017, the Philippine government invested more than 84 billion Philippine pesos in in approximately 3,800 kilometers of high priority tourism roads across the country, doubling tourism revenues. And in addition to boosting tourism for the country, these roads also connected rural communities, significantly reducing the time and cost of transporting goods to urban markets.
• USAID’s collaboration with local and ASEAN partners helped promote the ASEAN Roll-on/Roll-off, or RORO, link between Indonesia and the Philippines. Inaugurated last April by President Duterte and Indonesian President Joko Widodo, this link is enhancing intra-ASEAN trade. In turn, we foresee significant benefits not only for the economies of Mindanao and Sulawesi, but also for the economies of the entire Philippines, Indonesia and the rest of Southeast Asia. The RORO link, in lowering inter-island shipping costs and promoting greater trade and investment, further enhances the business environment in the Philippines, for which the United States is the second largest trade partner.
• Our work with the Department of Energy resulted in a more competitive selection process in power supply procurement. USAID facilitated $3.3 billion in aggregate power supply agreements for electric cooperatives, which will provide an additional 1,650 megawatts of capacity at 30 percent lower in cost, bringing cheaper electricity to about 10 million households covering four regions.
• As another successful example, USAID’s partnership with the provincial government of Palawan helped strengthen its seaweed industry to meet the global demand for carrageenan, an important raw material in a number of industries, including pharmaceutical, dairy and cosmetics. The industry helps poor coastal communities by generating more income for farmers and increases the supply of a critical material demanded worldwide.
• Working with financial institutions, we have extended the equivalent of Php1.9 billion in loans to more than 120 small- and medium-scale enterprises, which helped generate wealth, business opportunities and employment in rural and urban areas.

These are just a few ways in which our partnerships with all of you have advanced inclusive growth in the Philippines during COMPETE’s five years of operation. Dr. Henry Basilio, COMPETE’s Chief of Party, will speak more in depth later in the program about our many shared accomplishments over the years.

We are honored to say that these important reforms have contributed to the Philippines achieving higher levels of economic growth, with the economy growing about six percent on average for the past six years. Reform measures also resulted in a higher ranking in the World Economic Freedom’s Global Competitiveness Index, which rose 28 places from 2011 to 2017. And poverty in the Philippines has declined significantly from 26.3 percent in 2009 to 21.6 percent in 2015.

In large part, the success of USAID’s COMPETE project has been due to the partnerships represented here today. I would like to sincerely thank all of our partners – government agencies, local government units, non-governmental organizations and the private sector – for your extraordinary vision, leadership, and most of all, your commitment to sustain these initiatives. I believe that the seeds we have planted will lead to fruitful harvests for the Filipinos many years more from now.

One final note of appreciation. Thank you to the Asia Foundation and its partners: and Nathan Associates, REID Foundation, Foundation for Economic Freedom, and Asia Pacific Partners, Inc. I would also like to recognize the Dr. Henry Basilio and the COMPETE project team. We thank you for your dedication to this project and your resounding success.

Truly, it’s been a productive five years. By working together, we have seen concrete achievements that promise greater prosperity and improved welfare for the future. We look forward to continuing this productive partnership as we press on toward our shared goals of a more prosperous and secure Philippines.

Thank you and my heartfelt congratulations to all.