Major BIMP-EAGA Accomplishments

Direct Air Linkages

• Availability of direct flight from Davao City to Manado City in North Sulawesi, Indonesia.
  • Indonesia's Bouraq Airlines offered businessmen and tourists a shorter and faster route at affordable fare.
  • Previously, travel between the two cities via Manila and Jakarta took eight hours and cost US$1,070 (round trip).
  • The new direct route cut down travel time to an hour and ten minutes and fare to US$260.00.
• Establishment of direct air link between Davao City and Kota Kinabalu, Sabah, Malaysia, courtesy of Malaysia Airlines (MAS), during the period November 1995 to December 1997.
  • Previously, it took five hours via Manila or three hours via Cebu at a cost of US$584.00 (round trip).
  • The direct route cut travel time to two hours and 25 minutes at US$449.00 (round trip).

Direct Sea Linkages

• In 1994, Zamboanga-based Aleson Shipping Lines began to offer sea transport services between Zamboanga City and Sandakan, Sabah, Malaysia.
• Followed by Sampaguita Shipping Lines, also based in Zamboanga, in servicing the same route.
• In November 1996, Fajar Shipping Lines started to provide sea travel services between General Santos City and Bitung in North Sulawesi, Indonesia.

Tourism

• When BIMP-EAGA was formalized in 1994, tourist arrivals in Mindanao began to significantly increase.
• Several hotels and restaurants were also constructed to cater to the increased number of visitors.
  • Samal Casino Resort Hotel in the Island Garden City of Samal
  • The Marco Polo in Davao City

Policy Modification
The Philippines' warm response to worldwide initiatives towards a freer trade environment boosted its bid to become a key global player, particularly through the inclusion and participation of Mindanao and Palawan in the BIMP-EAGA. Concrete policy support to this included the following:

1. Exemption from travel tax. Beginning March 1995, the Philippine Government exempted travelers between BIMP-EAGA destinations from paying travel tax amounting to US$30.00. This encouraged transit through Mindanao as international gateway to or from the other BIMP-EAGA member-countries.
2. Decentralization of Philippine Contractors Accreditation Board (PCAB) functions. Resulting from the efforts of the Southern Philippines Core Group on Construction and Construction Materials, the functions of the PCAB at the Mindanao level were decentralized in September 1995 to facilitate licensing, accreditation and granting of exemptions, among others.
3. Full Disclosure Policy. Issued by the Philippine Overseas Employment Administration (POEA) through Memorandum Order No. 06 on April 1997, this makes obligatory the delineation and full disclosure of the terms of reference in the hiring of workers in foreign countries. Among the information required to be disclosed in the Terms of Reference (TOR) pursuant to this policy are compensation rate, accommodation facilities, occupational hazards, and length of employment, among others.
4. Special Border Crossing Agreement. The Philippines and Malaysia have institutionalized border crossing and border patrol cooperation mechanisms under the ambit of the Joint Committee on Border Cooperation (JCBC) established in 1993. Both countries are still in the process of finalizing the border crossing pass which is essential in the implementation of the said agreement. Nonetheless, the border crossing stations in Sandakan, Malaysia and Bongao, Tawi-Tawi, Philippines are being opened for the special border crossing arrangement. Meanwhile, Labuan in Malaysia and Balabak, as well as Taganak in the Philippines are considered for future opening, considering its joint development efforts in the Turtle Island Heritage Protected Area (TIHPA).
5. Mutual Recognition of Skills Standards and Certification. Based on an agreed set of skills standards, each member-country would issue a skills certificate that will facilitate employment and give preferential status to workers for overseas employment in other member-countries.
6. Uniform Port Tariff (UPT) Agreement. The agreement allows vessels docked at ports within BIMP-EAGA to enjoy reduced rates. In support to this agreement, the Board of Directors of the Philippines Ports Authority (PPA) passed a resolution allowing 50 percent reduction of dockage fees in any Mindanao port for vessels originating from other BIMP-EAGA ports. Brunei Darussalam and Indonesia have granted Philippine vessels the same incentive. Malaysia still has to do so.

EAGA Investments
As of 1997, total EAGA investments in Mindanao and Palawan amounted to US$29 million. Most of these investments came from Malaysia.

Sustained Growth of Mindanao and Palawan Economies
Mindanao's active participation in BIMP-EAGA has significantly contributed to the positive growth rate of its Gross Regional Domestic Product (GRDP). Poverty incidence in Mindanao has likewise dropped.

Socio-Cultural Gains
Renewing socio-cultural ties that date back to many centuries has served as a firm foundation for pursuing productive economic endeavors. Among the activities that have contributed to such are the BIMP-EAGA Food Festival, BIMP-EAGA Rodeo Lineman's Skills Olympics, BIMP-EAGA Friendship Games, BIMP-EAGA Friendship Marathon, EAGA Mountain Biking Competition and East ASEAN Mayor's Cup Golf Tournament.

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