annual report 04

AFPMP 2004 Annual Report 1

ARMED FORCES OF THE PHILIPPINES

MODERNIZATION PROGRAM

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TABLE OF CONTENTS

FOREWORD PART 1: PROGRAM OVERVIEW Purpose Scope Rationale and Objectives Legal Basis Priorities and Components AFP Modernization Act Trust Fund PART II: PAST YEARS IN REVIEW 1997-2003 PART III: ACCOMPLISHMENTS FOR 2004 Force Restructuring and Organizational Development Capability, Materiel and Technology Development Bases and Support Systems Development Human Resource Development Doctrines Development PART IV: SIGNIFICANT DEVELOPMENTS PART V: ASSESSMENT PART VI: ISSUES AND CONCERNS PART VII: RECOMMENDATIONS PART VIII: THRUSTS FOR CY 2005 PART IX: SUSTAINING THE MOMENTUM


MESSAGE

In an effort to provide the Filipino soldier with adequate equipment he needs in his quest to uphold the sovereignty and preserve the patrimony of our country, the Congress passed Republic Act Number 7898 in 1995, otherwise known as the AFP Modernization Act. From then on, the Armed Forces of the Philippines continued to strive hard in laying the groundwork for the implementation of the AFP Modernization Program. Despite the adverse external factors that hampered the smooth execution of the Program such as political and economic instability; volatile security climate, and limited budgetary allocation, it did not inhibit us from pursuing its objectives. Instead, we confront these challenges with vigor and renewed spirit.

Now that the foundation has been established, our visions are gradually turning into reality. Once again, the AFP Modernization Program is triumphant in achieving its goals for calendar year 2004, providing the AFP with modern equipment for internal security operations. Through the incessant hard work and dedication of the men and women behind the implementation of the Program, the future of the AFP is beginning to take shape.

The AFPMP has gained momentum, as seven (7) projects were formally handed-over to the AFP. Among the major breakthrough of the Program is the delivery of Armored Recovery Vehicle (ARV), HF SSB 20W Manpack Radio Sets, Dental Equipment, Diving Suit and BN-Islander Aircraft Upgrade. On the other hand, the UH-1H Helicopter Acquisition and Geographical Information System projects were partially delivered and are expected to be consigned on 2005.

To highlight more of the significant accomplishments and events that transpired in the year 2004, it is with great pride and honor that I present the AFPMP Annual Report for CY 2004. This report gives a detailed view on the objectives of the Program for the year vis-à-vis its accomplishments. The AFPMP’s five components: Force Restructuring and Organizational Development (FROD), Capability Materiel and Technology Development (CMTD), Bases and Support Systems Development (BSSD), Human Resource Development, and Doctrines Development (DD) are discussed and assessed thoroughly. Pointed out as well are several key issues and concerns that affect the Program implementation and its thrust for CY 2005.

Indeed, the AFP Modernization Program is moving towards reaching the pinnacle of its existence. But it does not end here. As long as there are men and women willing to risk their lives and fight for this nation’s freedom, the organization will continue to pursue the fulfillment of the objectives and the realization of the vision of the AFP Modernization Program.

EFREN L ABU General AFP


A PROGRAM OVERVIEW Purpose The submission of the AFP Modernization Program Annual Report for 2004 is a requirement based on section 16, of the AFP Modernization Act or Republic Act 7898 of 1995, which stipulates that the AFP is required to submit to the President and the members of Congress an annual report containing the progress of the implementation of the Program. This 2004 Annual Report is a manifestation of the firm resolve of the organization to accelerate the acquisition of the much-needed equipment and upgrade its existing capabilities. This report reviews the rationale, objectives and basic features of the program and presents detailed accomplishments and updates of the Program under each of the five interlocking components. This document also aims to bring to the attention of the Executive and Legislative Branches the issues and concerns that adversely affect program implementation. Scope This report consists of nine (9) parts. The first part provides an overview of the Program, with a discussion on the objectives, priorities and components and the AFP Modernization Act Trust Fund. The second part presents the accomplishments of the Program for the past years while the third part details the accomplishments of the Program for CY 2004. The fourth part discusses other significant developments relative to the Program. The fifth, sixth and seventh parts contain the assessment, issues and concerns and recommendations. Part 8 presents the thrusts for CY 2005 followed by a concluding note on the performance of the Program and where it is headed. Rationale and Objectives For decades, the AFP has virtually engaged all of its resources in internal security operations, since the presence of the United States (US) in the country many years ago served as an effective deterrent against external threats. Consequently, the AFP has become less focused on external defense to the point that its capability to operate with other armed forces and to address contemporary threats remained in a dismal status and continue to lag behind that of the neighboring armed forces. There is a need, therefore, for the AFP to focus its efforts in building up a capability suited to the changing scenarios of the international security community. Recent years have witnessed how countries in the region exert effort in projecting credible military power in order to instill regional balance of power. While our country does not intend to join any perceived arms race in the region, the AFP needs to make its present capabilities credible. This is to ensure that the AFP would be able to effectively and efficiently interplay and operate with other armed forces in whatever


security alliance. Apparently, a modest modernization program is the first step necessary to gain respect from our neighbors and be a worthy member of any security alliance. Once our nation is able to project a credible armed forces, it could then work in synchrony with the armed forces of other countries in deterring would-be military adventurism and in performing peace operation efforts for the international community. In addition, a credible armed force would mean a capable force that could effectively support our government’s diplomatic efforts in addressing contemporary security concerns as territorial conflicts and maritime disputes, as well as threats of transnational nature such as piracy, poaching, smuggling, and environmental pollution. Evidently, the increasingly dynamic and unpredictable nature of the security environment demands credible armed forces that will ensure overall national security. While diplomacy is the best policy in addressing our security concerns, it would prove inadequate without a credible military force behind it. Section 3 of Republic Act 7898 outlines the objectives of the Program as follows:

a. To develop its capability to uphold the sovereignty and territorial integrity of the Republic and to secure the national territory from all forms of intrusion and encroachment;

b. To develop its capability to assist civilian agencies in the preservation of the

national patrimony, including the country’s living and non-living marine, submarine, mineral, forest and other natural resources located within its territory and its Exclusive Economic Zone (EEZ);

c. To enhance its capability to fulfill its mandate to protect the Filipino people not

only from armed threats but from the ill effects of life-threatening and destructive consequences of natural and man-made disasters and calamities, including typhoons, earthquakes, volcanic eruptions, major accidents in far-flung or inaccessible terrain or at sea and from all forms of ecological damage;

d. To improve its capability to assist other agencies in the enforcement of

domestic and foreign policies as well as international covenants against piracy, white slavery, smuggling, drug trafficking, hijacking of aircraft and sea craft and the transport of toxic and other ecologically-harmful substances taking place in or through Philippine territory;

e. To enhance its capability to assist the Philippine National Police in law

enforcement and internal security operations;

f. To enhance its capability to fulfill the country’s international commitments; and


g. To develop its capability to support national development. Legal Basis The Program has its legal basis on Republic Act No. 7898, otherwise known as the AFP Modernization Law. Approved by then President Ramos on February 23,1995, the law declares as a state policy, “to modernize the AFP to a level where it can fully and effectively perform its constitutional mandate of upholding the sovereignty and preserving the patrimony of the Republic.” Both Houses of Congress approved the Program with the promulgation of Joint Resolution No. 28 on December 19, 1996. As provided for under the Resolution, the implementation of the Program shall be over a period of 15 years. The resolution also approved a Php 50 B budget ceiling for the first-five year period. As mandated by RA 7898, the Department of National Defense issued Department Circular Nr 01 on 06 March 2000, the Implementing Guidelines, Rules and Regulations (IGRR) of the Program. The IGRR prescribes the policies and procedures for the implementation of the Program. The Program is also governed by Executive Order No. 120, which directs the National Government to adopt countertrade as a supplemental trade tool with respect to the importation of procurement of foreign capital equipment, machinery, products, goods and services. Executive Order No. 40 issued on 08 October 2001, further govern the procurement activities and contracting. EO 40 consolidates the procurement of goods and services, civil works and consulting services. Additionally, the DOF-DBM-COA Joint Circular 4-98 prescribes the procedures for the operations of the AFP Modernization Act Trust Fund. Priorities and Components The Program intends to develop naval, air, ground and GHQ capabilities to enable the AFP to perform both national defense and peacetime functions. The Program depicts the size and shape of the AFP in terms of personnel, equipment and facilities. It also enumerates all modernization projects to implement under the five components according to priority and provides an estimated average cost of each project. The development of AFP capabilities shall be along five interlocking components, namely: Force Restructuring and Organizational Development (FROD); Capability, Materiel and Technology Development (CMTD); Bases Development (BD); Human Resource Development (HRD) and Doctrines Development (DD).


AFP Modernization Act Trust Fund Section 11 of Republic Act No. 7898 provides for the creation of the AFPMATF for the Program. The Secretary of National Defense shall administer the Trust Fund sourced from the following:

a. Appropriations for the AFP Modernization Program;

b. Proceeds from the sale, lease, or joint development of military reservations, as may be authorized, including such immovable and other facilities as may be found therein, not covered by the Bases Conversion Development Authority, as provided for in Republic Act No. 7227;

c. Shares of the AFP from the proceeds of the sale of military camps provided

for under Republic Act No. 7227;

d. Proceeds from the sale of the products of the Government Arsenal;

e. Proceeds from the disposal of excess and/or uneconomically repairable equipment and other movable assets of the AFP and the Government Arsenal;

f. Funds from budgetary surplus, if any, as may be authorized by Congress

subject to the provisions of section 8 of this Act; and

g. All interest income of the Trust Fund. PAST YEARS IN REVIEW (1997 to 2003) A period of establishing the appropriate mechanisms and essential systems is what best described the first few years of implementing the AFP Modernization Program. The armed forces and the defense establishments came up with corresponding program requisites prescribed under RA 7898 to support and further strengthen its implementation during its early stages. In order to effectively implement the program, functional and organizational structures were established at the DND and GHQ and later were replicated to the level of the major services. Furthermore, the AFP made significant headways in addressing several important economic and legal issues that have bearing on the program. It was able to make reinforcements in its capabilities to carry on with the management of numerous projects and enhance its linkages in a variety of areas from base development to contract negotiation. Towards the end of the century, the Secretary of National Defense mandated the review of the Program to determine the affordability and sustainability of projects, as well as


conformity of implementing guidelines with existing laws, rules and regulations. At the start of the millennium, the volatile situation in Mindanao led to a shift in AFP priorities from external defense to internal security concerns. Thus the AFP front-loaded the ISO-related defense equipment from among the numerous projects originally identified in JR 28. Within the same period, DND published the Department Circular 01 (DC 01), which prescribes the implementing guidelines, rules and regulations of the AFPMP. To hasten the deliberation of project proposals from the Major Services and GHQ AFP Wide Service Support Units, the AFP leadership created the Executive Committee for the AFP Modernization Board in 2001. Relatedly, DND organized the Evaluation Working Group that was tasked to conduct a speedy examination of all Circular of Requirements (COR) and Bid Evaluation Plans (BEP). This move by the defense establishment prompted the AFP to organize and activate Bids and Awards Committees (BAC) and negotiating teams for all the AFPMP projects. The long and arduous procurement process experienced in 2000 and 2001 spurred the AFP to accelerate the procedures in various stages of equipment acquisition and in other component projects in 2002. It worked out for the pursuit and speeding-up of the acquisition of priority projects financed under CY 2000 fund release of PhP 5.484 Billion. But still, not a single weapon or equipment has been acquired or upgraded. There were a lot of significant developments that took place last year. The most notable of which is the first major breakthrough in the history of the AFPMP, which is the delivery of 402 units of Squad Automatic Weapon to the Philippine Army and the Philippine Marines on 18 March 2003. It was also during this period that the AFP Modernization Board was renamed as AFP Capability Development Board (AFPCDB). This was done in view of the need to synchronize the planning and implementation of the various AFP Capability Development Plans and Programs. Likewise, the AFP Modernization Board Executive Committee was also renamed as AFP Capability Development Planning Committee (AFPCDPC), which would avoid the duplication of the membership of the AFPCDB. Consequently, the different sub-committees covering the five program components was reconstituted in order to ensure the deliberation on all capability development matters under the concerned functional staff who are themselves implementers of the various pillars of capability development. On policy concerns, the Government Procurement Reform Act or RA 9184 took effect on 26 January 2003 while its corresponding IRR was signed on 19 September 2003. Several Executive Orders relative to the program implementation were issued during the year. EO 235 was signed on 11 September 2003, which prescribes the streamlining of rules and procedures of defense contracts. Section 2 of said EO prompted the DND and AFP to create their respective single Bids and Awards Committee. EO 240, mandating the Undersecretary for Internal Control of DND to institutionalize reforms in the procurement and fund disbursement systems in the defense and military establishments, was issued on 24 September 2003.


To address the need to optimize the use of limited AFP Modernization Fund, the AFP CDB came up with a Revised Reprioritized Projects List (RRPL) from the approved Reprioritized Projects List (RPL). The revision integrated equipment acquisition and upgrade projects of the Program with other means such as Foreign Military Assistance (FMA), Self-Reliant Defense Posture (SRDP) Program and others. On fund generation efforts, two Memoranda of Agreements were forged by the DND-AFP with the BCDA during the period. The MOA conveying Lot 17 and Lot 16B of Camp John Hay property to DND-AFP was signed on 06 July 2003. The lots shall be utilized to support the Philippine Military Academy and the establishment of AFP Learning Center. While the MOA conveying Lot B in Camp O’ Donnell to DND-AFP was signed in June 2003, which would enable the AFP to use the property to support the several AFP units like the Training and Doctrine Command (TRADOC), Light Armor Brigade (LABde), AFP Research and Development Center (RDC), 703rd Brigade and the relocation site for the Army Support Command (ASCOM). ACCOMPLISHMENTS FOR 2004

Force Restructuring and Organizational Development This component involves the restructuring of the AFP into a compact, efficient and responsive force highly capable of performing conventional and unconventional warfare, disaster relief and rescue operations and nation – building activities The change in the security environment that prompted the return of responsibility for ISO to the AFP from the PNP prompted changes in the FROD component of the AFPMP. This came in the form of rescheduling its implementation. Other changes are the activation of some units that were not originally part of the FROD but were carried out in response to the changes in the security environment.

GHQ/AFPWSSUs

For GHQ/AFPWSSUs, restructuring of units were made. The updated and revised Staff Memorandum of all units and offices of GHQ were published. MILE and MILVED functions were transferred from OJ7 to OJ1 effective 18 April 2004. The Office of the Deputy Chief of Staff for Comptrollership, J6 was deactivated. Merging of the following offices are being processed: OTSG, OTCDS and OTCN; OJ3, OJ7 and OJ8; OJ4 and OJ9. Moreover, OTIA, RMO, MFO and the Accounting Office have been activated.

Philippine Army

For the Philippine Army, Special and Technical Staff were reorganized.


Philippine Air Force For the Philippine Air Force, FROD activities included organization of units

and task forces, reorganization of units and offices, remanning and redesignation of units, transfer of command and control and creation of offices. Organization of Units: Effectivity Unit Command & Control 16 Feb 04 538 Base Security Squadron Group Comdr, 530th ABG, 3TOW 19 Apr 04 568th Base Security Squadron Group Comdr, 560th ABG, 2TOW 01 Jun 04 5213th Honor Escort Squadron Group Comdr, 521st SEG, 520ABW 05 Jul 04 734th Support Squadron Group Comdr, 730th Combat Grp, 710th SPOW 19 Jul 04 4191st Motor Transport Squadron Group Comdr, 419th TSG

-do- 4192nd Maintenance & Supply Squadron -do- 15 Oct 04 750th Combat Group Wing Comdr, 710SPOW

-do- 751st, 752nd & 753rd Combat Squadrons Group Comdr, 750th CG, 710th SPOW -do- 754th Combat Support Squadron -do-

15 Nov 04 523rd Honor Escort Group Wing Comdr, 520th ABW -do- 5232nd Honor Escort Squadron Group Comdr, 523rd HEG

Organization of Task Forces: Effectivity Unit OPCON 01 Aug 04 Task Force “CALABARZON” SOLCOM 01 Oct 04 Air Task Force “SOUTHERN LUZON” SOLCOM

Reorganization/Restructuring of Unit/Office:

Effectivity Unit/Office 04 Jan 04 Reorganization of Air Force Finance Center 01 Jun 04 Office for Special Studies 05 Jul 04 Reconfigure 730th Civil Security Group to 730th Combat Group 02 Sep 04 Reorganization of the Office of ACofAS for Plans, OA-5 01 Oct 04 Reorganization of the Office of ACofAS for CMO, OA-7 15 Nov 04 Reorganization of 520th Air Base Wing

Re-manning & Re-designation of Unit:

Effectivity Unit New Designation Comd & Control 07 Jul 04 25th Attack Squadron 25th Composite Attack Sqdn WC, 15th Strike Wing 19 Jul 04 419th Transport Service Group 419th Transport Support Group CG, PAF

Re-designation of Units:

Effectivity Old Designation New Designation 15 Mar 04 Air Adjutant Office Office of the Air Force Adjutant 14 May 04 538th Base Security Squadron 538th Air Base Security Squadron

-do- 568th Base Security Squadron 568th Air Base Security Squadron -do- 5212th Base Security Squadron 5212th Air Base Security Squadon -do- 6012th Base Security Squadron 6012th Air Base Security Squadron

01 Jun 04 521st Security Forces Group 521st Security & Escort Group 05 July 04 731st Civil Security Squadron 731st Combat Squadron


-do- 732nd Civil Security Squadron 732nd Combat Squadron -do- 733rd Civil Security Squadron 733rd Combat Squadron

01 Oct 04 Air Logistics & Support Command Air Logistics Command 15 Oct 04 750th Special Opns Combat Supt Group 760th Special Opns Combat Supt Group

-do- 751st Special Opns Training Squadron 761st Special Opns Training Squadron -do- 752nd EOD Squadron 762nd EOD Squadron -do- 753rd K-9 Squadron 763rd K-9 Squadron -do- 711th Mission Support Squadron 764th Technical Combat Supt Squadron

15 Nov 04 521st Security & Escort Group 521st Air Police Group -do- 522nd Support Group 522nd Service Support Group -do- 5231st Supply & Support Squadron 5225th Supply & Support Squadron -do- 5213th Honor Escort Squadron 5231st Honor Escort Squadron

Transfer of Command & Control: Effectivity Unit From To 15 Nov 04 5225th Sup & Support Squadron Grp Comdr, 523rd LG Grp Comdr, 522nd SSG

-do- 5231st Honor Escort Squadron Grp Comdr, 521st SEG Grp Comdr, 523rd HEG -do- PAF Band Grp Comdr, 522nd SSG Grp Comdr, 523rd HEG

Unmanning/Abolition of Unit: Effectivity Unit Mother Unit 19 Jul 04 5232nd Motor Vehicle Squadron 523rd Logistics Group, 520th ABW 15 Nov 04 523rd Logistics Group 520th Air Base Wing 15 Oct 04 754th Communications Squadron 750th SOCSG, 710th SPOW

-do- 755th Light Armored Vehicle Squadron -do- Creation of Office: Effectivity Office 04 Oct 04 Directorate for Comptrollership, Hqs Service Support Group

-do- Directorate for Comptrollership, Air force Finance Center 22 Oct 04 Air Force Resource Management Office, HPAF

Transfer of Functions:

Effectivity Function From To 14 May 04 MILE & MILVED (Soldier or AFP focused) 7’s (CMO) 1’s (Personnel) 01 Jun 04 Honor Escort & CDM functions 710th SPOW 520th ABW

Philippine Navy

The Mine Warfare Group was activated. Moreover, the 730th Civil Security Group was reconstituted into 730th Combat Group effective 25 October 2004. The 740th and 750th CG were likewise activated on the same date.


Capability, Materiel and Technology Development The enhancement of identified capabilities and acquisition of appropriate weapon systems, materiel and technology is one sure way to transform the AFP into a sustainable defense force. With this, the AFP is working on the acquisition and upgrade of existing weapons and equipment towards attaining its vision of being a credible armed force.

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STATUS Joint Army-Marines ARMY AIR FORCE NAVY GHQ

I. Delivered (8)

A. Complete (6) • Squad Auto Wpn (SAW) I

• HF/SSB Manpack I

• Armored Rec Veh (ARV)

• Diving Suit • BNI Aircraft

Upgrade I

• Dental Equipment

B. Partial (2) • UH-1H Acquisition (Commercial)

• Geographical Info Sys (GIS) I

II. With Contracts (15)

A. Approved Contracts/ For Contract Implementation (10)

• VHF/FM Handheld I

• HF/SSB Manpack II*

• UH-1H Refurbishment (EDA)

• OV-10 SLEP

• JCPV Weapon System Upgrade

• V-150 Upgrade • JCPV Gen

Upgrade II • Hydrographic

Equipment

• E-Service Portal • Base CN

B. With NOA (Contract Under Process) (5)

• Force Protection Equipment

• VHF/FM Handheld II*

• Squad Auto Wpn (SAW) II*

• PKM (RP) • Medical Equipment

III. Projects in the various stages of the Procurement Process (13)

A. Bidding (6) • Coast Watch System

• MPAC • JCPV Engine

O/H Upg I • Rigid Hull

Inflatable Boat

• IRTS • Fixed Commo

System (FCS) I & II

B. Direct Contracting/ Negotiated Procurement (5)

• F-27–500 Acquisition

• BNI Aircraft Upgrade II

• BO 105 Heli Upg (CY 00)

• 40mm GL

• Mobile CN


IV. For Bid Document / RFPQ Preparation (6)

• Night Fighting System (NFS) (Formerly NVG & NVWS)

• BO 105 Heli Upg (CY 02)

• PKM (ROK)

• Satellite Commo • GIS II • Com Area Net

(CAN) I & II V. Deferred Projects (5) • APC M113

Upgrade • Surface Attack

Aircraft • F-27 Upgrade • S-76 Upgrade

• LST Upgrade

GHQ/ AFPWSSUs

1. Dental Equipment The contract was approved on 25 March 2004 while turn-over ceremony was conducted on 25 June 2004. Technical inspection and acceptance was completed. The following equipment were delivered: � 10 Amalgamator � 10 Chairs Intra – oral Camera Monitor � 5 Chair Endodontic Module � 10 Endodontic and Handpiece � 15 Light Curing Units

2. Geographical Information System I

The SND issued Notice to Proceed on 07 January 2004 while Notice of Cash Allocation was issued on 10 March 2004. The letter of Credit was opened on 11 June 2004. Military Intelligence Group 18 (MIG 18), ISAFP received first phase of hardwares on 06 August 2004. Hardware installation, configuration and networking started on 10 August 2004.

3. E-Service Portal

The bid opening was on 08 June 2004 and PHILCOX was declared as the Lowest Calculated Bid (LCB). The CSAFP signed the Notice of Award (NOA) on 23 August 2004. Initial contract signing was conducted on 19 October 2004. CAF/ALOBS was issued by AFPLC on 12 November 2004 and the contract was signed by CSAFP on 20 December 2004.

4. Base Communications Network

Triton Communications was declared SCB on 30 July 2004. Post qualification was conducted on 09 August 2004 while CSAFP issued Notice of Award on 03 September 2004. The initial contract signing was conducted on 19 October 2004.


5. Medical Equipment

Pre – bid conference was conducted on 23 September 2004 with 16 registered bidders while bid opening was on 08 October 2004. Meditron was declared LCB for Lots 1 and 2, Technomed for Lot 4. There were no eligible bidders for Lots 3 and 5. Postqualification was conducted on Meditron and Technomed on 08 and 09 November 2004. Notice of Award (NOA) was issued to Technomed for Lot 4 on 22 December 2004.

6. Integrated Radio Trunking System

Bid opening was conducted on 25 June 2004. High Point was declared as Lowest Calculated Bid (LCB) on 23 July 2004. However, DND – BAC post – disqualified High Point due to non – compliance of certain requirements. TWG conducted postqualification on the 2nd lowest bidder, Higlander. DND – BAC declared Highlander as Lowest Responsive Calculated Bidder (LCRB) on 27 September 2004. NOA was forwarded to OUSAFO on 01 October 2004 and subsequently forwarded to OSND on 04 October 2004.

7. Fixed Communications System I & II

Pre – bid conference was conducted on 21 September 2004 with 12 registered bidders. Site survey was conducted on 11 – 24 October 2004 by registered bidders and assisted by the Technical Working Group (TWG).

8. Mobile Communications Network

AFP Negotiating Team issued RFPQ to Triton Communications on 03 August 2004. Price Quotation was submitted on 30 August 2004. Travel documents of Postqualification Team were forwarded to SND on 20 September 2004 for approval.

9. Satellite Communications

The CSAFP approved COR/BEP on 16 December 2003. 10. Geographical Information System II

Awaiting completion of Phase I. 11. Communication Area Network I & II

The COR/BEP was approved by CSAFP which was subsequently forwarded to SND on 11 November 2004.


Philippine Army

1. Squad Automatic Weapon (SAW) The project involves the acquisition of a one-man portable 5.56mm weapon for sustained fire role at the squads and the platoons. This weapon would augment the US M60 7.62mm General Purpose Machine Gun in the PA inventory. Phases I and II of the project are currently ongoing for the acquisition of 236 units and 1,750 units respectively. FN Herstal of Belgium won the contract.

2. HF/SSB 20W Manpack Transceiver The project involves the acquisition of a short to medium range transceiver set with security feature and automatic link establishment and management which could be configured into manpack, vehicular and base. This transceiver set is intended to provide the tactical communication requirement for command and control of the combat and combat support units at the level of the platoon, company, battalion and brigade. Phase I and Phase II of the project are currently ongoing for the acquisition of 286 units and 1,854 units respectively. Harris Corporation of the USA won the contract.

3. HF/SSB 2W Hand Held Transceiver The project involves the acquisition of a short-range transceiver set with security features which would be used to provide tactical communication within the platoon and for the internal net of the battalions and brigades. Phases I and II of the project are currently ongoing for the acquisition of 1,868 units and 4,525 units respectively. Harris Corporation, USA won the contract.

4. Armored Recovery Vehicle (ARV) The project involves the acquisition of an armored, all-terrain, amphibious, air transferable and highly maneuverable vehicle for recovery of mired, bogged down or damaged armor vehicles inside and outside the battle areas. This would serve as a maintenance vehicle as well as rescue vehicle during disasters or calamities. The contract was awarded to SS Savunma Sistemleri A. S. of Turkey. 5. Armored Personnel Carrier (APC) M113 Upgrade The project involves refurbishing of M113 APC in the inventory into an A3 version. The scope of work includes automotive component, weapon system, communication system and survivability features. Singapore Technology Kinetics (STK) of Singapore won the initial contract to refurbish three (3) units. It was however abrogated due to deviation from the technical specification in the COR. The project was resurrected following the offer of FNSS of Turkey to refurbish seven (7) units and provide power packs to re-power another 7 units for the same allocated amount. However, instead of bidding, the


project will be pursued through direct negotiation under a government-to-government arrangement as offered by FNSS. 6. Night Fighting System The project involves the acquisition of the night fighting equipment that would improve the capabilities of the foot soldier to move, observe battle field condition and to aim the weapon in near or total darkness environment. Among these equipment are the night vision monocular which could be mounted on the helmet and on the rifle, the infrared laser aiming device for target acquisition and the zeroing device. 7. Force Protection The project involves the acquisition of protective gears that would make the foot soldier less vulnerable to enemy fires. Among these gears are the ballistic helmet for head protection and the body armor for protection of the upper torso. The contract was awarded to Oriental Industries Inc of Korea with Atlanta Industries Ltd as its local partner.

Philippine Air Force

1. UH – 1H Acquisition (Commercial)

SND approved the contract on 30 January 2004. The Department of Budget and Management (DBM) issued Notice of Cash Allocation (NCA) on 01 July 2004 while LC was opened on 21 July 2004. The 1st batch of three (3) aircraft arrived at Clark Air Base on 08 August 2004 while the Integrated Logistics Support (ILS) package was partially delivered to HPAF on 23 September 2004. Thereafter, TIAC conducted inspection. Test flights and acceptance of 2nd batch of three (3) aircraft started on 13 October 2004 and were formally turned-over to the AFP on 25 October 2004. Another batch of 4 aircraft were turned-over to the AFP on 01 December 2004 and another two (2) on 17 December 2004.

2. UH – 1H Refurbishment (EDA) The Notice of Cash Allocation was issued on 06 February 2004. JVI was conducted at Temple, Texas on 28 March – 05 April 2004. The US Government would be awarding 10 UH-1H to Dyna Corporation. The delivery of 1st batch of three (3) aircraft is scheduled on February 2005.


3. OV – 10 SLEP CSAFP signed contract on 20 June 2004 which was subsequently approved by the SND on 20 August 2004. The approved contract was transmitted to AFP Logistics Center on 21 September 2004. DBM issued NCA on 22 December 2004. 4. F – 27 – 500 Acquisition Aeroglobe was selected as LCB. Travel documents of Postqualification Team was forwarded to OSND on 23 August 2004.

Philippine Navy

1. Diving Suit The NCA was issued on 01 March 2004 while LC was opened on 29 July 2004. Goods arrived at AFPLC on 26 August 2004, followed by the initial inspection by TIAC on 08 September 2004. The final inspection was conducted on 15 – 18 September 2004 and formal turn-over to the Philippine Navy was held on 08 October 2004. 2. BNI Aircraft Upgrade I The NCA was issued on 12 February 2004. Material requirements from Australia and Singapore arrived on 28 may and 02 June 2004, respectively. Hawker Pacific passed the initial inspection on 20 September 2004. Flight Test and Acceptance Flight was conducted on 07 October 2004. The aircraft was formally turned – over to the Philippine Navy on 08 October 2004. 3. JCPV Weapon System Upgrade The project is being implemented through a government – to – government transaction with QinetiQ Ltd (UK). QinetiQ Ltd presented updates of the project before the Project Review Board at HPN on 20 October 2004. 4. V – 150 LARSU Upgrade CSAFP signed the contract on 01 June 2004 which was subsequently approved by the SND on 22 August 2004. The approved contract was transmitted to AFPLC on 21 September 2004. The NCA was issued by DBM on 13 October 2004.


5. JCPV Generators Upgrade II Propmech Phils submitted Price Quotation on 16 July 2004. The contract was approved by CSAFP on 25 Oct 2004 while the Notice to Proceed (NTP) was issued to Propmech on 29 October 2004. 6. Hydrographic Equipment The bid opening was conducted on 22 June 2004. “Passed” bidders were: Deleon Corp for Lot 1 and Geotech Corp for Lot 2. Postqualification was conducted on 15-16 July 2004. LCRB resolution was signed by AFP-BAC on 13 August 2004. CSAFP signed NOA on 23 Aug 2004. The initial contract signing for Lot 1 was conducted on 03 November 2004. The contract was forwarded to TJAG for legal opinion on 05 November 2004. CAF/ALOBS was issued by AFPLC on 16 Nov 2004 for Lots 1 & 2. CSAFP signed contract for Lot 1 on 20 December 2004. 7. Patrol Killer Medium RP (PKM) SND issued NOA to Herma Shipyard/CAE Consortium on 17 March 2004. Initial contract signing was conducted on 23 June 2004 while CAF/ALOBS was issued on 27 July 2004. CSAFP signed the contract on 07 October 2004. 8. Coast Watch System Scan Marine was declared “passed” during the 2nd stage bidding. TWG recommended Scan Marine as LCRB on 23 September 2004 while recommendation for NOA was transmitted to OUSAFO on 27 October 2004; at OUSIC on 29 October 2004. Contract review was conducted on 06 December 2004. 9. Multi – Purpose Attack Aircraft (MPAC) Maritime Partners & Marsun Ltd. were declared “passed” bidders during the 2nd stage bidding on 08 July 2004. Scan Marine was declared as LCB on 27 July 2004. NOA was forwarded to OUSAFO on 08 September 2004, which was subsequently forwarded to OSND on 10 September 2004. The contract was reviewed by TWG on 05 November 2004. 10. JCPV Engine Upgrade I The project was re-bidded, with the pre-proc conference conducted on 23 November 2004. It was published in the Philippine Daily Inquirer on 25 November and 02 December 2004.


11. Rigid Hull Inflatable Boat Pre-procurement conference was conducted on 13 August 2004 while pre-bid conference was on 09 September 2004. The bid opening was moved from 24 September 2004 to 01 October 04. Willard Marine Inc was declared lone “passed” bidder. 12. BNI Aircraft Upgrade II Pre-procurement conference was conducted on 24 June 2004 while opening of Price Quotation (PQ) was held on 03 September 2004. Hawker Pacific & PADC submitted quotations over the approved budget for the contract (ABC). Negotiation with PADC was held on 20 September 2004 while negotiation with Hawker Pacific is being conducted. 13. BO 105 Helicopter Upgrade I Pre-procurement conference was held on 04 August 2004 while opening of PQ was conducted on 03 September 2004. Eurocopter was declared “lone” proponent, which submitted quotation within ABC. The proposed NOA was transmitted to USAFO on 08 October 2004, subsequently submitted to OSND on 25 Oct 2004. AFP-NT conducted contract perfection with supplier on 05 Nov 2004. 14. BO 105 Helicopter Upgrade II The project has been rebidded but no bids were received. BAC recommended for negotiated procurement. AFPCDB approved changes in COR on 29 July 2004 while CSAFP approved the COR on 09 August 2004. 15. Patrol Killer Medium ROK (PKM) The SND issued NOA to Herma Shipyard/CAE Consortium on 17 March 2004. The initial contract signing was conducted on 23 June 2004. CAF/ALOBS was issued on 27 July 2004. CSAFP signed contract on 07 October 2004, which was subsequently transmitted to DND for approval. Contract returned to OJ9 without action due to non-submission of Performance Security by Supplier, 29 October 2004. OJ9 issued deadline for submission, 02 November 2004.


Bases and Support Systems Development The objective of this component is to develop permanent bases for the use of land, air and naval forces.

GHQ/ AFPWSSUs The surveying activities conducted by Katimbang Surveying Company for the six (6) camps/military reservations in order to identify the metes and bounds of AFP property were successfully completed. Subsequently, all the pertinent documents were submitted to the Department of Environment and Natural Resources and Registry of Deeds for the issuance of Special Patent/titling/registration of said military reservations. (INSERT CHART)

Philippine Army

As mandated under Joint Resolution 28, 16 camps are slated for modernization. Based on the revised force structure, these camps will be composed of three (3) Rapid Deployment Force (RDF), eight (8) Infantry Brigades, three (3) Engineer Brigades, TRADOC and FSSR. SOCOM will be co-located with 51st Engineer Brigade at Camp Riego de Dios and HPA would be co-located with the 13th Infantry Brigade at Fort Bonifacio, Metro Manila. From the 16 camps slated for development, only 13 camps were programmed and an additional of three (3) camps not originally listed in the priority list were included. This is because only those camps occupied by PA units were given priority to address the ISO problem. Camp Aquino, Camp Capinpin and Camp Evangelista were included for future generation of funds for the AFP Modernization Program. From the 13 programmed camps and three (3) additional camps, six (6) are in Luzon, three (3) in Visayas and four (4) in Mindanao. These camps were all programmed for pre-development activities and special activity.

• Boundary Survey – The project is intended to support the ongoing efforts to acquire land title of the Army real estates. This project is being pursued in 11 military estates which would serve as permanent camps of the army units.

• Selective Fencing – The project is intended to discourage illegal settlers

from encroaching into the military reservation as well as enhance the security of military installations. This project is being implemented in 10 military camps.


• Topographic Survey – The project is intended to support the development planning of the military reservations. This project is being pursued in 9 military estates.

• Conceptual Master Plan (CMP) – The project is intended to establish the

layout of the military estates as bases for its future development. It provides for the zoning, sitings of the structures and amenities that will be developed in the camp. This project is being pursued in eight (8) military estates.

• Base Infrastructure – Being implemented are three (3) base infrastructure

projects as follows:

a. Construction of 4.62 km all-weather road in Camp O’Donnell, Capas, Tarlac

b. Concreting of 1.4 km road including drainage and street lighting in Camp O’Donnell, Capas, Tarlac

c. Construction of Power Distribution System in Fort Magsaysay.

(INSERT CHART) Philippine Air Force

Forty Million Pesos (Php 40 M) Modernization Fund was released by OJ6, GHQ to support the formulation of Master Development Plan (MDP) of 12 PAF priority bases/stations under the BSSD component of the PAF Modernization Program. Initially, the MDP formulation was projected to be implemented by contract, through private planners. On 10 May 2004, the CG, PAF issued a Letter of Instruction (LOI) tasking seven (7) graduates on Diploma in Urban and Regional Planning to plan, review and conduct studies on PAF Bases and Stations in coordination with the designated Project Managers for bases priority projects. The proposed “in-house” or “by administration” scheme to implement the projects would significantly reduce the cost of MDP Formulation and would enable the PAF to implement a number of base priority Infrastructure projects out of the remaining amount.

The fund allocated for BSSD projects/activities in the amount of Php 59.52 M is programmed to accomplish the relocation survey of nine (9) PAF bases, titling concerns, and 20 infrastructure projects. Three (3) of the infrastructure projects have already been completed, namely: upgrading of Basa Air Base Hospital, Air Force Management & Information Center (AFMIC) Bldg, and Maintenance Shed/Helipad at CJVAB. �


BASES/SUPPORT SYSTEMS DEVELOPMENT (BSSD)

PROJECT DATE COMPLETED

1. Mayapay Mil Res Boundary Survey, Libertad, ADS 27 Feb 2004 2. Fort Magsaysay Boundary Survey, Nueva Ecija 17 Sep 2004 3. Camp Peralta Boundary Survey, Jamindan, Capiz 28 Jul 2004 4. Camp Lapu-lapu Boundary Survey, Cebu City 16 Jun 2004 5. Camp Daza Boundary Survey, Hinabangan, Western Samar 26 May 2004 6. Camp Evangelista Boundary Survey, Cag de Oro City 13 Mar 2004 7. Camp Sang-an Boundary Survey, Labangan, ZDS 04 Feb 2004 8. Camp Aquino Boundary Survey, Sn Miguel, Tarlac 31 Aug 2004 9. Fort Magsaysay Topographic Survey, Nueva Ecija 31 Aug 2004 10. Mayapay Mil Res Topographic Survey, Libertad, ADS 31 Mar 2004 11. Camp dela Cruz Topographic Survey, Gamu, Isabela 09 Jun 2004 12. Camp Daza Topographic Survey, Hinabangan, Western Samar 26 May 2004 13. Camp Lapu-lapu Topographic Survey, Cebu City 16 Jun 2004 14. Camp Sang-an Topographic Survey, Labangan, ZDS 16 Feb 2004 15. Camp Tecson Selective Fencing, San Miguel, Bulacan 24 Jan 2004 16. Camp Riego de Dios Selective Fencing, Tanza, Cavite 19 May 2004 17. Camp Sang-an Selective Fencing, Labangan, ZDS 20 Mar 2004 18. Fort Magsaysay Selective Fencing, Nueva Ecija 26 May 2004 19. Camp dela Cruz Selective Fencing, Upi, Gamu, Isabela 09 Jan 2004 20. Camp Lapu-lapu Selective Fencing, Cebu City 13 May 2004 21. Camp Daza Selective Fencing, Hinabangan, W. Samar 08 Nov 2004 22. Camp O'Donnell Land Dev’t (Phase 1) Capas, Tarlac 27 Feb 2004 23. Camp O’Donnell Land Dev’t (Phase II) Capas, Tarlac 04 Sep 2004 24. Fort Magsaysay Power Distribution Sys, Nueva Ecija 06 Aug 2004

Philippine Navy In order to implement the BSSD program, the Philippine Navy came up with a five-year BSSD Plan. The plan identifies the different camps/locations with their specific projects. During the first year of implementation, the PN was released an amount of Php 121.30 M through a Special Allotment Release Order, a 51% of the total fund allocation of Php 234.07 M from CY 2000 and CY 2002 funds and the Php 271 M AFP share from BCDA non – sale transactions. For CY 2000, Php 100.37 M was allocated to the Philippine Navy. However, only Php 46.60 M was received. From the CY 2002 funds, the PN has a budget allocation of Php 99 M and out of this figure, Php 40 M has been released. Another Php 34.70 M from the Php 271 M AFP share from BCDA was released to the Navy. Out of the Php 46.6 M received, Php 26.76 M, Php 9.42 M and Php 10.58 M were allocated to MB Ternate, NOB Ulugan and NOB Batu-batu, respectively. The Php 40 M share was allocated for the construction of four (4) units of 10-door apartments for Officers and four (4) units of 10-door apartments for Enlisted Personnel to be constructed at Naval Base Cavite. Likewise, the Php 34.70 M received by the PN from


the Php 271 M AFP share from BCDA transactions were allocated to Officers and EP housing projects at NBC, Hydrographic and JCPV Support Facility at Fort San Felipe and NOB Mactan boundary survey. The PN has 40 lined – up projects to be supported by CY 2000, CY 2002 and Php 271 M funds. Six (6) or 15% of the total projects were already completed, 12 projects (30%) are on – going and another 22 projects (55%) are pending, awaiting availability of funds. (INSERT CHART)

Human Resource Development Human resource has always been recognized as the ultimate wealth and greatest asset of any organization. A professional, technically competent and service-oriented force is the ultimate aim of the Human Resource Development. It is in this perspective that the AFP is continually seeking and developing ways of bringing out the best in people, so that they can contribute most towards the AFP’s vision and at the same time, enhance opportunities to achieve personal goals. This can be realized with continuous education and training programs that emphasize on career and skills development.

GHQ/ AFPWSSUs

GHQ received Php 2.144 M sourced from the Php 271 AFP shares from BCDA Fund to support the following projects: Career Management A 4-day AFP Strategic Human Resource Management Course (AFPSHRMC) was conducted twice at the Asian Institute of Management on 10 Feb 2004 and 27 Apr 2004 respectively, with 70 selected AFP officers and civilian employees from GHQ, AFPWSSUs, and Unified Commands (UC). The AFP SHRMC is primarily geared to the skills development of the students to broaden understanding of human resource management linked to strategic planning. The course further optimized their scientific concepts and skills in human resource planning and management.

Personnel Management Information System

The activity undertaken under this project is the acquisition of the following equipment:

a. One (1) Toshiba Laptop


b. Three (3) Desktop Computers c. Three (3) USB Flash Drive

AFP Civilian Human Resource Management

The Civilian Personnel Audit in the Unified Commands was conducted on 09 Mar 2004 and was completed on 28 May 2004. The report of the Audit Teams shall be a reference in the proposed restructuring of civilian plantilla positions in the Unified Commands. The enhancement of the AFP Procurement System and the delivery of Discipline, Law and Order is being implemented.

Other Projects/Programs

Although not listed under the non-CMTD projects, the Personnel Family conducted a three (3) day workshop on 16 – 18 August 2004 on EP Promotion System. The participants came up with two circulars; (1) amending the existing Circular with emphasis on professionalizing the system and (2) crafting a Circular prescribing the mandatory career courses for EP of the AFP regardless of unit assignment. Moreover, a two-day workshop was conducted on the Officer Promotion System in the AFP on 19 and 20 October 2004, which was attended by representatives from JDA, Major Service Ones and from the different Technical Services in the AFP.

These activities are geared towards professionalizing the Officer and EP Promotion System on manner of selection, evaluation and recommendation which would be based on merit. Hence, Promotion System shall be in the basic concept that “promotion is only for those who are best qualified”. Additionally, considering that periodic reviews are invaluable tool in seeking further improvements in any system, a two-day workshop was employed to assess the relevance of the AFP 15-Year Strategic Human Resource Management Plan on 06 – 07 October 2004 at the AFP Medical Service School. At the end of the workshop, the participants unanimously agreed that the Plan’s vision and mission statements were still relevant to the present policy and institutional thrusts of the AFP. The output of the activity yielded new strategies which are adaptable to the changing environment of the AFP. Furthermore, the Office of the Deputy Chief of Staff for Personnel, J1 has conducted an initial review in shortening the Retirement Processing System. This is to assist the personnel due for retirement so that the benefits due them will be received on time.


Philippine Army

The Human Resource Development projects are geared towards the transformation of the PA into a self-reliant, compact, reservist-based, professional and service oriented organization. The sub-components under the HRD program are the career development, personnel procurement, reserve force development, and work-life quality improvement.

Career Management Foremost among the major endeavors of the Army is the enhancement of Personnel Information System. The project involves the installation of computer hardware down to battalion level and the development of field based and central based softwares. This is primarily intended to provide a more efficient way of tracking individual personnel records as an important tool in personnel and career development. Army Management Information Center (AMIC) is spearheading the project. The software development is jointly being undertaken with the University of the Philippines Diliman Computer Science Foundation Incorporated. For the capability enhancement projects, the repair and renovation of facilities were already completed in the various training schools and selected extension schools namely; the Non-Commission Officers Academy (NCOA), Armor Service Extension School (ASES), Combat Service Support School (CSS), The Intelligence School (TIS) 1st Army Training Group (ATG), 4th ATG and 5th ATG. The Combat Arms School (CAS) in Fort Magsaysay, Nueva Ecija is nearly finished and scheduled for inspection by the Technical Inspection and Acceptance Committee (TIAC). Construction works are ongoing in the Officers Candidate School (OCS) and 6th ATG. Moreover, the procurement of various equipment like computers, tables and chairs amounting to Php 17 M and its deployment to the training schools was completed.

In its continuing effort to provide the Army personnel with the necessary management and leadership skills, two management trainings were conducted at the Asian Institute of Management (AIM) - Project Planning Development and Management from 01- 26 March 2004 and a special training on Managing Effective Change which was completed on 20 July 2004. This management program is also supporting the masteral studies of Army officers for School Year (SY) 2003-2004. Also undertaken under this component is the Automated Fire Direction Center System (AFDCS). This is the development of a software program that can deliver the capabilities of the standard Battery Back-up Computer System (BUCS) for FA target acquisition using laptop computers that shall serve as the hardware platform. The software development is currently outsourced with the Mapua IT Center and is scheduled for operational testing and evaluation.


Procurement The Army initiated personnel procurement campaign nationwide to address the problem of lack of qualified applicants for PA Officer Corps. To meet this objective, it has initiated the establishment of recruitment centers in Visayas and in Mindanao and the construction of billeting facilities in the NCR for Luzon based-applicants. The construction of these facilities is now completed. Current support activities include the procurement of the various equipment to operationalize these facilities as well as the software development for the PA information system. Additionally, funds from the other PA Personnel Procurement Enhancement activities amounting to Php 1.687 M were realigned to support the upgrade of the Civil Affairs Group/Civil Affairs Units CAG/CAUs) Internal Security Operations Support Capabilities.

Morale and Welfare

The field entertainment and information dissemination system project significantly contributes to the worklife quality improvement of the Army personnel. The procurement and distribution of 775 units of DTH satellite dish to our troops down to the company level is completed. The DTH satellite will allow our soldiers to have access to cable television for entertainment and serve as a tool for the higher headquarters to transmit information and dissemination in the field. Still in the implementation stage is the production plan for the remaining 26 hours broadcast via the Dream TV satellite which is expected to be completed in the 1st quarter CY 2005. The Discipline and Law and Order Information System (DLOIS) project is now implemented. The automated system would make things easier than the usual long and tedious manual process of furnishing clearances to personnel. The centralized data base would provide an efficient way of tracking individual cases and would serve as an effective tool in personnel management. More so, the Wide Area Network (WAN) project is complete. The PA WAN can link the HPA LAN/PANET to the major PA units to enable all running PA information systems to be accessible to all authorized network users of the Army. The deployment of equipment and training of personnel in the Mindanao-based units was completed on October 2004. Overall, the system is fully operational. The total cost of the project is Php 2.5 M. Reserve Force Development The Army has also embarked on a number of projects for the capability enhancement of the different training facilities. All projects and support activities under this component has been completed: construction of Army Reserve Command (ARESCOM) Training Center, major repairs of the training facilities of six (6) RCDGs, the construction of the Reservist Management Information Office (RMISO) and the installation of its Local Area Network (LAN) and the enhancement of the Reservist Data Information System (RDIS).


Start-up activities for this project included the conduct of a National Service Training Program (NISP) summits to all RCDG and CDC Commanders and a three- day Command Post Exercise (CPX) for the mobilization of a Ready Reserve Battalion.


In continuance of the PAF HRD Projects funded under the proceeds from the sale of Government Arsenal Scraps and BCDA Funds, the following are the developments for CY 2004:

Career Management

Air Weapons Controller Course On 18 February 2004, the PAF Capability Development Board (PAFCDB) deliberated and approved the Implementation Plan (IMPLAN) for Air Weapons Controller Training Project which is one of the HRD projects funded out of the Php 46.220 M Government Arsenal Scraps Proceeds with a budget of Php 5.265 M. Subsequently, on 10 Mar 2004, the CG, PAF approved said IMPLAN for implementation.

Coordination with Phil DAFA Washington DC, USA is being made on the conduct of visit to foreign air control and warning facilities to observe the air defense command and control system, as well as the training requirements to effectively operate such system.

Aerosystem Engineers Course

Part of the said IMPLAN is the Aerosystems Engineers Course to develop PAF personnel in the field of Air Base Planning and to address the skill requirements for master planners of PAF Bases who will formulate, validate and review Conceptual Master Plans/Master Development Plans.

On 25 April 2004, the first batch of seven (7) PAF Officers graduated from their one-year schooling on Diploma in Urban and Regional Planning at the University of the Philippines. Succeeding batch of seven (7) Officers enrolled during the second semester in the same course.

Among the seven (7) graduates, four (4) have signified to continue into the M.A. Program in Urban and Regional Planning to provide them with specialized academic background in the field of base development planning.

The Project Management Team composed of those who are taking the Diploma Program, recommended that in order to have a holistic approach in base planning, the PAF should develop its capability to conduct professional studies and skilled analysis on all other components of a comprehensive plan, such as: physical, environmental,


economic, socio-cultural, and institutional components. Hence, the Project Manager suggested inclusion of related programs in the IMPLAN of this project. On 07 May 2004, the Acting CG, PAF approved proposed changes in the said IMPLAN. As a result, one (1) Officer and one (1) Airwoman have enrolled at the University of the Philippines for the Diploma in Development Economics and for Diploma in Remote Sensing, respectively.

Training Needs Analysis (TNA) The IMPLAN for TNA has been approved by the PAFCBD on 15 Jan 2004. Subsequently, the CG, PAF approved said IMPLAN for implementation on 19 January 2004.

Personnel Management Information System (PMIS)

The IMPLAN for PMIS has been approved by the PAFCBD on 15 January 2004 and has been approved by the CG, PAF for implementation. The project involves four components:

a. Acquisition of the needed hardware and software. b. Development of appropriate software that will interface with the

normalized database, c. Database build-up which involves design, encoding,

maintenance, enhancement and expansion; and d. Training people who will be database/network administrators,

programmers, engineers, and software & hardware maintenance personnel.

On 15 March 2004, the normalized database was developed and completed. Subsequently, data gathering and encoding/database build-up was started by data encoders and programmers from AFMIC with the PMT. The web-based Graphical User Interface (GUI) was developed and completed on April 2004 with inputs from the primary stakeholders/concerned Staff .Office (A-1, Air Adjutant, A-3, A-8 and Finance). Report forms were likewise developed to conform to GHQ, AFP periodic reports requirements.

Initial hardware requirements for the systems development and database build-up have been procured, and the consultancy fee for said development has been partially settled. The system roll-out was delayed due to non-availability of hardware and licensed OEM software to fully implement the system development. Nevertheless, the PMIS (phase I) is in progress and will be ready to serve the PAF personnel.


Philippine Navy For the Philippine Navy, several activities were initiated focusing on three (3) major projects:

• Skills Development • Morale And Welfare System Enhancement • Training System Enhancement

Career Management

The following courses were conducted:

a. 76mm Oto Melara - This course was started on 20 Oct 2003 and completed on 15 March 2004 with seven (7) students and was conducted by the Naval Sea Systems Command.

b. Hydraulics - This course was held at the Technological University of

the Philippines, which started on 26 January to 02 February 2004 attended by 15 personnel from the PN.

c. Advance Electronics – Fifteen (15) PN personnel took the course at

the Technological University of the Philippines from 09 February to 03 March 2004.

d. Advance Metallurgical Engineering - This course was also

conducted at the Technological University of the Philippines to 11 personnel of the Philippine Navy from 23 – 5 March 2004.

Relatedly, under the Navy Training System Enhancement Project is the procurement of fifty four (54) units and/or sets of books and reference materials for the NETC library and the acquisition of computer sets and training aids equipment.

Morale and Welfare The Navy Morale and Welfare Systems Enhancement Programs includes the medical facilities and dental facilities enhancement projects:

a. Medical Facilities Enhancement Project - This activity pertains to the supply and delivery of two (2) units each of portable x-ray machine and automatic film processor and seven (7) units of electrocardiogram.


b. Dental Facilities Enhancement Project - Under this project, the following dental equipment were acquired for use of the different PN Dental Dispensaries:

1 Unit Porcelain Furnace 1 Unit Panoramic With Cephalometric X-Ray 10 Units Dry Heat Sterilizer 2 Units Dental Unit And Chair 2 Units Periapical X-Ray

Doctrines Development The thrust of this component is to implement a systematic management of structures, resources and processes using established principles, systems and procedures. Through the Doctrine Officers of the Major Services, Command General and Staff College, J-Staffs, and the various AFP Units/Offices have coordinated for a single direction of doctrines development activities. The AFP Doctrines Development activities are particularly focused to formulate guidance and policies on how to improve the conduct of military operations in the ever-changing terrain of engagement. Keystone doctrines have already been published and distributed within the AFP. A number of priority doctrines are also undergoing review and evaluation by concerned personnel of the J-Staff and the Major Services.

GHQ/ AFPWSSUs As part of fulfilling its task to continuously monitor the activity updates of the AFP Doctrines, the Office of the Deputy Chief of Staff for Education and Training, J8 has been re-organized to make it more responsive to the needs of the education and training of the Armed Forces of the Philippines. Copies of the draft doctrines were reproduced for review and evaluation of the AFP Doctrines Board and the Sub-Committees. The OJ8 library was enhanced, while the draft and promulgated doctrines are being integrated in the OJ8 Website Electronic Library. The AFP Basic Doctrine (AFPM1) and AFP Doctrines Development Manual (AFPM 1-01) as well as the Combat Leader’s Handbook, have been published and distributed to various AFP Offices/Units. In addition, Training Support Packages were formulated to standardize the information drive and education of AFP personnel for both AFPM 1 and AFPM 1-01. The AFP Doctrine for Strategic Planning (AFPM 2-5), which has undergone an early review due to the changes in the DND Planning system and the


AFP Military Strategy for Combating Terrorism Manual (AFPM2-5-X), is awaiting publication. A number of other manuals are undergoing review and evaluation. Other doctrines and manuals that would have to be formulated have already been identified. Relative to this is the conduct of seminar workshops to assist concerned AFP units in the formulation of the doctrines.

PROJECT STATUS

1. AFP Doctrine for Joint Operations (AFPM 2-3) Undergoing review and evaluation; for presentation to the Chairman, AFPDB

2. AFP Logistics Doctrine Manual (AFPM 2-4) Undergoing AFPDB sub-Committee #4 review and evaluation

3. AFP Comptrollership Doctrine Manual (AFPM 2-6) Undergoing AFPDB sub-Committee #4 review and evaluation

4. AFP Doctrine for Information Operations Manual (AFPM 2-7-X)

Undergoing AFPDB sub-Committee #2 review and evaluation

5. AFP Doctrine for Communication, Electronics and Information System Manual (AFPM 2-11)


6. AFP Doctrine for Special Strategic Studies Manual (AFPM 2-5-X)


7. AFP Mgmt Policy on Ordnance and Chemical Service Manual (AFPM 2-4-X)


8. SOP 10 s-95 Officer Promotion System Undergoing further review and evaluation

9. COMPLAN “SangBigkas” Undergoing review and evaluation 10. AFP Technical Reserve Manual Undergoing review and evaluation 11. Affiliated Reserve Manual Undergoing review and evaluation 12. CEISS Doctrine Handbook Undergoing review and evaluation

13. AFP Doctrine for Civil Military Operations (AFPM 2-7) For presentation to the Chairman, AFPDB

prior to AFPDB Sub-Committee review and evaluation

14. Doctrine for AFP Sergeant Major (AFPSM) On going formulation (Initial draft expected: 10 Dec 2004)

15. AFP Doctrine for the Quartermaster General (TQMG) On going formulation (Initial draft expected: 17 Dec 2004)

16. AFP Doctrine for The Surgeon General (TSG) On going formulation with other Health Svcs (Initial draft expected: 10 Dec 2004)

17. AFP Doctrine for The Chief Dental Surgeon (TCDS) On going formulation with other Health Svcs (Initial draft expected: 10 Dec 2004)

18. AFP Nurse Corps Primer (AFPM 2-1-X) On going formulation

19. AFP Doctrine for The Chief Chaplain Service (OCCHS) On going formulation (Initial draft expected: 15 Dec 2004)

20. AFP Doctrine for The Provost Marshal General (OTPMG)

On going formulation (Initial draft expected: 04 Nov 2004)

21. AFP Doctrine for The Adjutant General (OTAG) On going formulation (Initial draft expected: 23 Dec 2004)

22. AFP Doctrine for The Chief Special Service (OSpS) On going formulation (Initial draft expected: 28 Dec 2004)

23. Doctrine for GHQ & HSC Operations (GHQ & HSC) On going formulation (Initial draft expected: 06 Dec 2004)


24. Doctrine for AFP Communication Electronic, Information System Services Operations (CEISSAFP)

On going formulation (Initial draft expected: 17 Dec 2004)

25. Doctrine for AFP Logistics Center Operations (AFPLC) On going formulation (Initial draft expected: 15 Nov 2004)

26. Doctrine for AFP Medical Center Operations (AFPMC) On going formulation with other Health Svcs (Initial draft expected: 10 Dec 2004)

27. Doctrine for AFP Civil Relation Service Operations (AFPCRS)

On going formulation (Initial draft expected: 10 Dec 2004)

28. Doctrine for AFP Reserve Command Operations (AFPRESCOM)

On going formulation (Initial draft expected: 10 Feb 2004)

29. Doctrine for AFP Finance Center Operations (AFPFC) On going formulation (Initial draft expected: 13 Dec 2004)

30. Doctrine for Presidential Security Command (PSG) On going formulation (Initial draft expected: 01 Apr 2005)

31. JSOG Doctrine On going formulation (Initial draft expected: 03 Dec 2004)

32. AFP Doctrine for Planning Joint Operations (AFPM 3-X) On going formulation 33. Search and Rescue Joint Operations w/Civilian Agencies On going formulation

34. Joint Air and Sea Operations for Protection On going formulation 35. Operations for Environment and Natural Resources Protection On going formulation

36. Intelligence Support to Combined Operations On going formulation 37. AFP Doctrine for Education and Training Manual (AFPM 2-8) On going formulation

38. AFP Doctrine for Personnel (AFPM 2-1) For formulation 39. AFP Doctrine for Intelligence (AFPM 2-2) For formulation 40. AFP Doctrine for Capability, Materiel and Technology Development Manual (AFPM 2-9) For formulation

41. AFP Doctrine for Reservist and Retiree Affairs Manual (AFPM 2-10) For formulation

42. Doctrine for Philippine Military Academy Operations (PMA) For formulation

43. AFP Doctrine for Inspector General Service Operations (IGS) For formulation

44. AFP Doctrine for Public Information Office Operations (PIO) For formulation

45. Doctrine for Office of Legislative Affairs Operations (OLA) For formulation

46. AFP Doctrine for Ethical Standard and Public Accountability Operations (OESPA) For formulation

47. AFP Doctrine for The Chief Engineers (TCE) For formulation 48. AFP Doctrine for The Judge Advocate General (TJAG) For formulation 49. AFP Doctrine for Real Estate Office (AFPREO) For formulation 50. AFP Doctrine for Education Benefit System Office (AFPEBSO) For formulation

51. Doctrine for Intelligence Service, AFP Operations (ISAFP) For formulation

52. Doctrine for Commissary and Exchange Service Operations (AFPCES) For formulation

53. Doctrine for AFP Command and General Staff College Operations (AFPCGSC) For formulation

54. AFP Doctrine for Internal Security Operations (AFPM 3-1) For formulation


55. AFP Doctrine for External Security Operations (AFPM 3-2) For formulation

56. AFP Doctrine for Information Operation (IO)/Revolution on Military Affairs (RMA) (AFPM 3-3) For formulation

57. AFP Doctrine for Rapid Deployment (AFPM 3-4) For formulation 58. AFP Doctrine for Humanitarian Assistance/Disaster Relief (AFPM 3-5) For formulation

59. AFP Doctrine for Special Operations (SO) (AFPM 3-6) For formulation 60. AFP Doctrine for Support System (AFPM 3-7) For formulation 61. AFP Doctrine for Bilateral/Multilateral Exercises (AFPM 4-1) For formulation

62. AFP Doctrine for Peacekeeping Operations (AFPM 4-2) For formulation 63. AFP Doctrine for Military Operations Against Transnational Crimes (AFPM 4-3) For formulation

Philippine Army

The Philippine Army TRADOC continues to oversee the progress of the PA Doctrines Development. For CY 2004, 36 doctrines and manuals have been and are being formulated; 15 are awaiting the promulgation of the CSAFP, six (6) are undergoing deliberation and evaluation, and 15 are being formulated. The PA Doctrines Development Roadmap, which is instrumental to further determining the other manuals to be made, is being developed along. With the implementation of these various support projects, the capability of the TRADOC is continually being enhanced to make it responsive to the immediate needs of the PA Doctrines Development. Hereunder is the status of the different projects under the Doctrine Development component. Doctrine / Manual Formulation

PROJECTS STATUS

1. PA Engineer Operations Manual (PAM 3-06) For promulgation by CSAFP 2. PA Intelligence Operations Manual (PAM 2-00) For promulgation by CSAFP 3. PA Field Arty Operations Manual (PAM 3-04) For promulgation by CSAFP 4. PA Air Defense Arty Operations Manual (PAM 3-05) For promulgation by CSAFP 5. PA Strategic Planning (PAM 5-00) For promulgation by CSAFP 6. PA Personnel Management Manual (PAM 1-00) For promulgation by CSAFP 7. PA CEIS Manual (PAM 11-00) For promulgation by CSAFP 8. PA Comptrollership Manual (PAM 6-1) For promulgation by CSAFP 9. PA Combat Service Support Operations Manual (PAM 4-01) For promulgation by CSAFP

10. PA Education and Training Manual (PAM 8-00) For promulgation by CSAFP 11. PA Armor Operations Manual (PAM 3-02) For promulgation by CSAFP


12. PA Infantry Operations Manual (PAM 3-00) For promulgation by CSAFP 13. PA Civil Military Operations Manual (PAM 7-00) For promulgation by CSAFP 14. PA Internal Security Operations Manual (PAM 3-0011) For promulgation by CSAFP 15. PA Reserve Force Development (PAM 10-00) For promulgation by CSAFP 16. PA Operations Manual (PAM 3-00) PACDB to be submitted on 30 Nov 04 17. PA Signal Operations Manual (PAM 11-01) Final draft for approval by CG, PA 18. PA Special Operations Manual (PAM Final draft for approval by CG, PA

19. PA Fire Support to Brigade Operations DDC, PACDB cleared draft to be completed on 30 Oct 04

20. PA Dental Service Manual Deliberated by DCT on 10 Feb 04

21. PA Quartermaster Service Manual Deliberated by PACDB on the last qtr of CY-03 but not yet approved

22. PA Engineer Officer Career Manual For deliberation by PE 23. PA Modernization Handbook Completion of writer’s draft on 29 Oct 04 24. PA Public Affairs Manual For deliberation by DCT 25. PA Engineer Mobility Operations Manual Writer’s draft for submission to DC 26. PA Engineer Counter-Mobility Operations Manual Completion of writer’s draft on 29 Oct 04 27. Local Communist Movement Completion of writer’s draft on 29 Oct 04 28. Southern Philippines Threat Groups Completion of writer’s draft on 28 Oct 04 29. GESCON Completion of writer’s draft 30. Infantry Division Operations Manual Completion of writer’s draft on 13 Dec 04 31. Infantry Battalion Operations Manual Completion of writer’s draft on 08 Dec 04 32. Infantry Company Operations Manual Completion of writer’s draft on 08 Dec 04 33. Crisis Management Manual Completion of writer’s draft on 15 Nov 04 34. Disaster Relief and Rehabilitation Manual Completion of writer’s draft on 29 Oct 04 35. Infantry Platoon and Squad Completion of writer’s draft on 05 Oct 04 36. Manual on Uniform and Insignia Completion of writer’s draft Doctrine Development Support Activities

PROJECTS STATUS

1. Formulation of Doctrine Development Strategy Completed 2. Survey and Inventory of Doctrine Literature Completed 3. Validation & Accreditation of Documents Literature For implementation 4. Publication of Important Supplemental Pubs For implementation 5. Research and Formulation of Army Training Manual For implementation 6. Research and Formulation of Field Circular on Night Fighting For implementation 7. Research and Formulation of Field Circular on Proper Force Mix For implementation 8. Regulate use of doctrinal literatures in PA Schools and Training Units For implementation 9. Establishment of Doctrinal Archive Completed 10. Publication of Qtrly Doctrine Magazine For implementation 11. Conduct Info Drive and Seminars Completed 12. Research, Study and Documentation Completed 13. Research and Formulation of PA Basic Doctrine Completed 14. Research and Formulation of PA Admin and Mgmt System Completed 15. Research and Formulation of Ethics and Professionalism Completed 16. PMT Conferences Completed


17. Doctrine Seminars Workshop Completed 18. Doctrine Center Printing and Publication Completed 19. Development of Doctrine Center Information System On going 20. Library and Research Facility On going 21. Doctrine Development Roadmap On going


The Philippine Air Force created a Project Management Team to effectively focus its efforts in accomplishing the objectives of the PAF Doctrines Development. For CY 2004, 35 doctrines and manuals have been determined as priority documents. Four (4) doctrines were already finished and are awaiting promulgation of the CSAFP prior to publication and distribution. Fourteen (14) doctrines and manuals are being reviewed and evaluated by the PAF Doctrine Board and Sub-Committees, and another 13 are being formulated. Four (4) doctrines and manuals are for amendments following the AFP Doctrines format.

PROJECTS STATUS

1. PAF Intelligence Manual (PAFM2-2) For AFPDB endorsement to CSAFP for

promulgation

2. PAF Reservist and Retiree Affairs Manual (PAFM2-10) For AFPDB endorsement to CSAFP for

promulgation

3. PAF Comptrollership Manual (PAFM2-6) For AFPDB endorsement to CSAFP for

promulgation 4. PAF Basic Doctrine (PAFM1) For AFPDB endorsement to CSAFP for

promulgation 5. PAF Air Logistics Manual (PAFM2-4) For PDSG Deliberation 6. PAF CEIS Manual (PAFM2-11) For PDSG Deliberation 7. National Development Related Doctrines For PDSG Deliberation 8. PAF Special Operations (SO), Opn'l Doctrine Awaiting for Sub-Comm deliberation 9. Air Force Combat SAR, Opn'l Doctrine Awaiting for Sub-Comm deliberation 10. Rotary Wing Night Operations Awaiting for Sub-Comm deliberation 11. F-27 Aircraft Opns Guide and Min Eqpm't List Awaiting for Sub-Comm deliberation 12. C-130 Minimum Eqpm't List Awaiting for Sub-Comm deliberation 13. Air Force Tactical Heli Awaiting for Sub-Comm deliberation 14. Support Operations (MD-520MG) Awaiting for Sub-Comm deliberation 15. Tactical Air Lift Operations Awaiting for Sub-Comm deliberation 16. Tactical Operations Group (TOG) 10 Awaiting for Sub-Comm deliberation 17. Tactical Operations Group (TOG) 11 Awaiting for Sub-Comm deliberation 18. Tactical Operations Group (TOG) 8 Awaiting for Sub-Comm deliberation 19. PAF Personnel Doctrine Manual (PAFM2-1) For Formulation 20. PAF Air Operation Doctrine Manual (PAFM2-3) For Formulation 21. PAF Plans Doctrine Manual (PAFM2-5) For Formulation 22. PAF CMO Doctrine Manual (PAFM2-7) For Formulation 23. PAF Air Education and Training Manual (PAFM2-8) For Formulation 24. Night Vision Goggles (NVG), Opn'l Doctrine For Formulation


25. Internal Security Operations (ISO), Opn'l Doctrine Undergoing Formulation 26. Peace Support Operations, Opn'l Doctrine Undergoing Formulation 27. C-130, Tactical Doctrine for Weapon System For Formulation 28. F-27, Tactical Doctrine for Weapon System For Formulation 29. N-22, Tactical Doctrine for Weapon System For Formulation 30. SF260, Tactical Doctrine for Weapon System For Formulation 31. T41, Tactical Doctrine for Weapon System For Formulation 32. S-211, Tactical Doctrine for Weapon System For Revision 33. OV-10, Tactical Doctrine for Weapon System For Revision 34. MG-520, Tactical Doctrine for Weapon System For Revision 35. UH-1H, Tactical Doctrine for Weapon System For Revision

Philippine Navy

The Philippine Navy identified 43 doctrines and manuals for development for CY 2004. Out of these, six (6) are already complete; three (3) had copies published, and another three (3) are undergoing deliberation by the AFPCDB. Thirty - one (31) drafts are undergoing/awaiting presentation and / or deliberation by the PN Doctrines Board Sub-Committees, and six (6) are being formulated.

PROJECTS STATUS 1. Joint Fleet-Marine Doctrine Completed 2. Command and Control Doctrine Completed 3. PN Doctrine Development Manual Completed 4. Navy Nursing Service Manual Completed: For publication on AFP

Nursing Service as approved by AFPCDB 5. PN Basic Doctrine Completed: Undergoing deliberation by

AFPCDB 6. Marine Special Operation Doctrine Completed: For deliberation of AFPCDB

7. Maritime Search and Rescue Doctrine Final Draft for submission by PMT prior to FOIC, PN approval

8. Naval WCEIS Maintenance Policy Manual For correction 9. Naval Intelligence Doctrine For correction 10. Naval Comptrollership Doctrine For correction 11. PN Education and Training Doctrine For correction 12. Naval Shipyard and Repair Doctrine For correction 13. Naval Reservist Administration Doctrine For correction 14. Maritime Patrol of EEZ Doctrine For correction 15. Naval Air Operation Doctrine Manual For inclusion on Chapter 3 the Naval

Exercise 16. PN Personnel Management Doctrine On going deliberation by PN DD SC 1 17. Naval Operations Doctrine For PN DDS SC 3 deliberation 18. Naval Logistics Doctrine For PN DDS SC 4 deliberation 19. Naval Plans and Programs Doctrine For PN DDS SC 3 deliberation 20. Electronic Warfare Doctrine For PN DDS SC 3 deliberation 21. Light Armor Operations Doctrine For PN DDS SC 3 deliberation; additional


inputs based from tests and evaluation will be incorporated in the 1st draft

22. Marine Field Artillery Operations Doctrine 1st Draft submitted; awaiting deliberation of DD SC 3

23. ILS Doctrine 1st Draft submitted to NLC DB then to PNDDS

24. Defense of Ports and Harbors Doctrine 1st Draft for presentation to CSWG then

PHIL FLT DB prior presentation to PNDDS

25. Seal Operations Doctrine For presentation and defense to PN DD SC 3

26. EOD Doctrine For presentation to CSWG, PHIL FLT before submission to PN DDS SC by PMT

27. Surface Warfare Doctrine For presentation to PN DDS SC by PMT

28. AGL Employment Doctrine For PMC DB deliberation; on the process of completing incorporation of inputs from

live fire exercise at Crow Valley 29. Technical Manual for AGL For submission to PMC DB for

deliberation 30. Force Reconnaissance Doctrine For PMC DB deliberation; on the process

of completing 2nd draft 31. Field Handout for Marine Combat Intelligence Opns (FH02A)

Reproduced and distributed for test/evaluation; 1st draft completed for DD

SC deliberation

32. Marine Combined Forward Observer’s Guide (FH0311-3A)

Reproduced and distributed for test/evaluation; 1st draft completed for DD SC deliberation, Army evaluation will be

incorporated on next draft prior to deliberation

33. PMC Modernization Materiel and Technology Development Program

Reproduced and distributed for test/evaluation

34. Primer on PMC Modernization for Doctrine Development Program


35. Field Handout: Doctrinal Extract for the Abu Sayyaf Group (FH02A1)


36. Field Media Relation (DG07A) Reproduced and distributed for test/evaluation

37. Naval CMO Doctrine Held in abeyance 38. Project Management Doctrine On going formulation (50% complete),

awaiting Higher HQ draft for consolidation 39. Anti-Infiltration Procedures (PNM 3-28) Project Management Plan for submission 40. Naval Gunnery FS Spotting Procedures (PNM 3-6A) Project Management Plan for submission 41. Control and Protection of Shipping (PNM 3-12) Project Management Plan for submission 42. Onshore Operation Manual (PNM 3-8) Project Management Plan for submission 43. Sealift Operation (PNM 3-15) Project Management Plan for submission


SIGNIFICANT DEVELOPMENTS Changes in Policy and Strategy of the DND

The assumption of new leadership at the Department of National Defense greatly contributed to the fresh and new outlook and innovative perspective in policy making and strategic environment in the implementation of the AFP Modernization Program. The introduction of Multi Year Capability Planning Systems (MYCAPS) and the inputs from the Philippine Defense Reform (PDR) into the new DND planning system, significantly altered the strategy and policy in developing the capabilities of the AFP. The goal of the DND is to establish and implement a strategy-driven multi-year defense planning system. DND envisioned that the AFP must develop processes for control of the modernization budget, develop interagency coordinated security programs, implement the Philippine Intelligence Modernization program and invest in strategic-to-tactical level C4 (Command and Control, Communications, Computer) equipment.

IPPL to 20 year Capability Upgrade Program of the DND

The President approved the Integrated Priority Project Lists (IPPL) effective 20 August 2004 pursuant to ______. However, with the assumption of the new SND, the IPPL was revised into a 20 year Capability Upgrade Program that will suit the needs of the AFP in developing its capabilities for the next 20 years. The revision of the IPPL was based on the Philippine Defense Reform and from the inputs of MYCAPS as a new planning system adopted by the Defense establishment in developing the capabilities of the AFP. DND envisioned to upgrade the present capabilities of the AFP to a level where all the assets of the AFP are mission capable to carry out its mandated tasks both in war time and peace time defense conditions. After the resolution of all threat groups or degradation of their capabilities to a level where it can be addressed by other law enforcement agencies, the AFP can now develop and modernize its capabilities to address external threats. Termination of DND Single BAC The DND single BAC which was mandated to undertake bidding process for projects under the Department worth P50M and above was terminated by the SND effective November 2004. The plan for its reactivation will take effect on February 2005. By then, members of the newly reconstituted DND BAC will have their hands full as they resume bidding activities of projects which were sidelined for about four months. Transactions with Bases Conversion Development Authority (BCDA)

• Signing of DND-AFP-BCDA Joint Resolution 2004-01 on 11 August 2004

during the 6th Consultative Meeting, which provides, among others, for the turn-


over of Php 639,388,440.00 representing the DND-AFP share from the proceeds of non-sale transactions received by BCDA from 1999 – June 2004 to the AFP Modernization Act Trust Fund (AFPMATF) in BTr under Fund Code 172.

• Remittance of Php 24,127,831.69 to the AFPMATF in BTr under Fund Code 172,

representing AFP’s share from the interest income accrued for the period covering 01 March 2002 – 11 August 2004 from the upfront cash payment of Ayala Land Inc for the lease of Lot C area in Fort Bonifacio on 09 August 2004.

• Remittance of Php 3,201,363.00 to the AFPMATF in BTr under Fund Code 172,

representing the AFP’s share from BCDA’s non-sale transactions, namely Ayala Lot C, Shell Gas Station and Summit School on 18 August 2004.

• Remittance of Php 2,125,407.00 representing the AFP’s share from the non-sale

transactions from 12 August to 13 October 2004, particularly from the British School on 15 October 2004.

• Remittance of Php 1,059,227.00 representing the AFP’s share from BCDA’s

non-sale transaction, particularly from Victory Christian School, for the period 13 August to 31 October 2004.

• Remittance of Php 9,287,250.00 representing the AFP’s share from BCDA’s

non-sale transaction particularly from Victory Christian School, for the period covered from 01-30 November 2004.

• Designation of VCSAFP VADM ARISTON V DE LOS REYES AFP as the BCDA

Board Adviser for Military Affairs on 11 August 2004.

• Assignment of AFP Reservists in the DND-AFP TWG. To address the need to acquire the services of civilian consultants and advisers, particularly financial analysts and corporate lawyers in negotiating with the BCDA on the identification of direct expenses incurred in the disposal of AFP real estate properties under RA 7227 or the BCDA Law, OJ9 requested for the assignment of AFP reservists during their Annual Active Duty Training (AADT) to serve as consultants/advisers to the DND-AFP Technical Working Group (TWG). Hence, Special Order Number 128 was issued on 07 May 2004 assigning CDR CELITO M ALENSUELA PN (RES), LTC CECILLE S ABELLA PN (M) and LTC CORNELIO P PELAEZ PAF (GSC) (RES) on detached service with OJ9 effective 01 May 2004 for their Annual Active Duty Training (AADT) as consultants to the DND-AFP TWG. CDR ALENSUELA is a financial analyst while LTC ABELLA and LTC PELAEZ are corporate lawyers. MAJ PETER SUCHIANCO JAGS (RES), a lawyer, was also assigned on DS with OJ9 per Special Orders Number 161 dated 09 June 2004.


Fund Generation Schemes for the AFP Modernization Program • Accrual of Interest Income of the AFPMATF. On 12 January 2004, BTr agreed

that the accrual of interest income should be reckoned from the time of actual remittance of cash by BCDA to BTr from June 2000 to December 2003.

On 31 March 2004, BTr informed the DND-AFP that Php 1,311,576,411.50 represents the net interest accruals of the AFPMATF Fund Code 172 from June 2000 to December 2003. However, transfer of subject amount can only be effected as soon as proper amendments are made in Joint Circular 4-98.

OJ9, as well as representatives from OJ6 and DND has been coordinating with DOF, DBM and BTr for the said amendment. An initial draft has already been made for approval of the DOF and DBM Secretaries and COA Chairman.

• Conduct of Fund Generation Studies. On 18 October 2003, CSAFP approved

the creation of a Study Committee composed of representatives from OJ4, OJ9 and AFPREO to undertake continuing fund generation studies on 10 AFP camps prioritized for disposal. The Committee shall come up with a disposition scheme and disposal strategy for each camp. The first study was conducted on 05-07 November 2003 at Fernando Air Base, Lipa City, Batangas.

On 10 June 2004, the study was presented to the Bases Support System Development (BSSD) Committee composed of J4, C, AFPREO, TCE, among others.

• Explore the feasibility of Securitizing AFP’s Future Receivables from BCDA. OJ9 has been undertaking exploratory discussions with the BCDA and fund arrangers since December 2003 regarding securitization of AFP’s future receivables from BCDA. During the 1st Quarter CY 2004, there had already been 3 discussions, including a meeting with ASec Roberto Tan of the Department of Finance. Further study on the matter, particularly its legal implications, was recommended.

Budget-Related Activities and Management of the AFP Modernization Act Trust Fund (AFPMATF)

• Approval of Program of Expenditure (POE) and Annual Procurement Plan

(APP) for the Unutilized Php 61.274 M CY 2000 AFPMP Admin Expense. The POE and APP for the unutilized Php 61.274 M CY 2000 Admin Funds was approved by CSAFP on 11 August 2004. Said amount shall support the bidding and awards and project implementation requirements of the Revised Reprioritized Project List for CY 2000.


• Approval of POE for Php 139.364 M CY 2002 AFPMP Administrative Expenses. The POE was approved by CSAFP on 12 November 2004.

ASSESSMENT

The vision of an adequate and efficient AFP capability is rapidly taking form, with the noteworthy accomplishment of having seven (7) projects completed this year and several other projects already in the pipeline. While the present pace of execution of the Program proves to be very promising, a significant number of projects are still pending due to several factors. These are the reorganization of the AFP, lack of funding and frequent changes in procurement policies and procedures.

Recent developments resulting into drastic changes in the organization of the Armed Forces greatly impact key offices implementing the Program. Difficulties were experienced with regards to the transfer and handling of various functions as well as processing of documents.

In addition, the uncertainty of availability of funds for the Program persistently hamper the full and expeditious implementation of the Program, as the project implementers continue to thrive on the meager annual budget allocation.

Hence, to complement government appropriations, fund generation efforts have been aggressively pursued with Php 679.189 M remitted to the DND-AFP from lease transactions involving military camps covered by the BCDA Law for this year alone. AFP bills were likewise being pushed in Senate, which, if approved, will significantly increase revenues from transactions involving the disposition of military camps. ISSUES AND CONCERNS Uncertainty of the availability of funds for the implementation of the Program The uncertainty of the availability of funds for the Program disrupts its implementation and planning. Since the enactment of RA 7898 and approval of JR 28, the AFPMP fell short of the Php 50 B budget ceiling for the first five-year period, starting 1997. With the assumption of the new SND, it was emphasized in his four (4) policy thrusts, the implementation of the AFP Modernization Program as one of the identified areas where the energies of the DND will be focused.


Approval of proposed amendments to related AFP Modernization priority bills Since Congress could not assure the AFP of the annual baseline appropriation of Php 10B as provided for in RA 7898, the AFP initiated for the passage of AFP priority bills that will hasten the implementation of the Program. Absence of IRR on Multi-Year Obligation Authority (MYOA)

The absence of IRR on MYOA is needed since big-ticket items requires multi-year contract. Without the IRR on MYOA, the AFP cannot push through with projects that requires multi-year contract. This situation adds to the further delay in the implementation of the Program. RECOMMENDATIONS Priority sourcing of funds for the implementation of the Program DND has to give emphasis and priority to the funding requirements that has constantly delayed the implementation of the Program, otherwise it would still be a snail-paced progress in the development of the capabilities of the AFP. Time is also a critical factor in the development of the AFP’s capabilities since it would translate into more number of years in solving the internal security concern of the country. The sooner AFP capabilities are developed, the sooner internal conflict of the country can be addressed.

Approval of proposed amendments to related AFP Modernization priority bills The approval of proposed amendments to AFP priority bills pending at Congress will provide for the generation of additional funds to sustain the implementation of the AFPMP. Most of these bills are still in the first reading pending approval at the Committee on National Defense. Publication of IRR on Multi-Year Obligation Authority (MYOA)

DBM has yet to formulate an IRR regarding MYOA to secure the funding requirements of big-ticket item projects under the AFP Modernization Program. With an IRR, implementation of projects with multi-year contracts can be properly executed.


THRUSTS FOR CY 2005 Push for continues allocation of funds by Congress

The implementation of the AFP Modernization Program was identified by the SND as one of the four (4) policy thrusts where the energies of the DND shall be focused. As provided for in RA 7898, P10B shall be appropriated annually for the first 5 years by Congress for the implementation of the AFP Modernization Program. However, so far Congress only appropriated P5B for the AFP Modernization Program. With the new SND at the helm, the department can influence and push Congress for the realization of the budget for the AFP Modernization Program. Sustain Protection of DND/AFP’s interest in BCDA transaction

As beneficial owners of Metro Manila camps for disposition of BCDA, the DND-AFP should be represented in the BCDA board to sustain the protection of DND/AFP’s interest in BCDA transactions. Former SND Secretary Eduardo Ermita proposed on having at most three (3) DND-AFP representatives to the BCDA Board of Directors. BCDA agreed and conceded to the idea of SND and jointly BCDA and DND recommended to the President for the appointment of the DND representative to the BCDA Board. However, the President has yet to act on the recommendation. Pursue legislative initiatives

The AFP initiated for the passage of AFP priority bills that will hasten the implementation of the Program. It has submitted to Congress for the amendments of RA 7898, RA 7227 as amended by RA 7917 and the bill creating the Military Real Estate Development Authority (MREDA). The passage of these AFP related Modernization bills will provide for the generation of additional funds to sustain the implementation of the AFP Modernization Program. Implementation of the 20 year Capability Upgrade Program of DND DND adopted a 20 year Capability Upgrade Program for the AFP to address the internal security concern of the country. DND’s goal is to upgrade the present capabilities of the AFP to a level where all the assets of the AFP are mission capable to carry out its mandated tasks both in war time and peace time defense conditions. After addressing the internal security threats, the AFP can now shift its focus towards improving and modernizing its capabilities to address external threats.


SUSTAINING THE MOMENTUM For the year 2004, the AFP started to reap the fruits of the foundations laid and the seeds sown the previous years as far as the implementation of the AFP Modernization Program is concerned. It has now gained the much-needed momentum with the delivery of seven critical defense equipment for the year alone, an unprecedented development in the nine-year history of the Program. To a certain extent, such feat has significantly improved the operational capability of the Armed Forces of the Philippines to carry out its mandated tasks. Thus, the vision to have an Armed Force that is fully mission-effective, right-sized, credibly equipped, versatile and responsive is no longer a dream but now an unfolding reality. However, despite these accomplishments, the implementation of the Program has yet to achieve the ideal and desired pacing as envisioned in the law. A lot is still to be done most especially if we take into consideration the desire of the Department of National Defense to upgrade the present capabilities of the AFP to a level where all its assets are mission capable both in war time and peace time defense conditions. There are about 40 AFPMP projects that are in the various stages of the acquisition process, and 13 projects that are for implementation. Moreover, there are still lingering issues that need to be addressed in order to ensure swift and smooth implementation of the Program. Hence, in order to fully attain the mission of the Program, it is imperative to build on and sustain the momentum that has been achieved. Towards this end, the initiative to establish and implement a strategy driven multi-year defense planning system, and the move to consolidate defense capability development planning and acquisition at the Defense Department level must be pursued and implemented aggressively. Further, there is a need to secure the earnest support of the National Government relative to the financial resources required for the swift and smooth implementation of the Program. Lastly, sustaining the momentum gained also means that all stakeholders of the Program, particularly the Department National Defense and the Armed Forces of the Philippines must work hand in hand to firm up and institutionalize the current and envisioned changes relative to the organization, processes, and systems governing the implementation of the AFPMP.