IT is one of the fastest-growing cities in the Philippines because of its vibrant tourism industry. As one of the Philippines’ major tourist drivers, it is in a class by itself. A World Heritage Site and countless other new and undiscovered wonders of nature can be found here.
The city has never been hit by a major earthquake in the last 500 years. This gives someone something that money can’t buy: peace of mind. Seldom visited by typhoons, it is shielded by eastern Philippine islands from the Pacific side.
Puerto Princesa City is the next big thing in real-estate development after Clark, Cebu and Davao. To begin with, it has a spanking-new international airport that can accommodate advanced-technology jetliners.
Prior to the temporary closure of Boracay Island, domestic airlines fly in and out of the city 125 times a week or 18 times a day from major cities like Manila, Cebu, Davao, Iloilo and Clark, including chartered flights from China, Korea and Taiwan. With 28 to 34 flights a day today, it is easily the busiest provincial city airport in the Philippines.
Right now, it is also the cruise-ship capital of the Philippines and its port continues to undergo modernization and upgrade.
Carbon-neutral
DIVERSE mineral and other natural resources abound in Palawan’s only city. Perhaps the only city in the country with a large forest cover still intact, the many treasures you will find in Puerto Princesa come in the form of affordable real estate.
The burgeoning city expands north to south. Primed for growth, these areas are all poised to experience an economic boom from 2020 and beyond.
Inventory of move-in-ready properties that are suitable for retirement and investment purposes is on the upswing, and they are also relatively inexpensive.
Puerto Princesa originally failed to command the attention of big stakeholders, but the reverse is happening now. In recent years, the city’s real-estate market is beginning to throb and it is getting an eyeful from those who are thinking about the future.
Why not? The city is the center of communication, education and public administration for Palawan. It is a carbon-neutral city, has good and stable peace and order, warm and committed people, diverse and skilled manpower.
Investment haven
AFTER Camella Homes, Brighton Homes of Robinsons Land Corp., Regatta Bay of Cabanilla Marketing and Development Corp., Imperial Palace of Phil De Meer Corp., Shojin Herbal and Wellness Eco-Resort of Ai World Corp. and Harbor Springs of Santa Lucia Land are just some of the big brands that landed on the city. To date, the city’s investment portfolio has amounted to P3.380 billion.
According to City Tourism Officer Aileen Cynthia Maggay-Amurao, two of them are brand names known worldwide and the rest have a good reputation in the Philippines.
Amurao cited for example Imperial Palace Hotel, a 9-hectare hotel and resort development in Honda Bay, with a 4-hectare floor area, and a total of 162 guest rooms, majority of which are composed of villas.
Another big investor in the city that she cited is Ai World, a mountain resort nestled in a vast highland in Bacungan. The resort-and-park-in-one is under the development of Neogreen and being operated by World Ai Corp. It opened publicly on March 4, 2017, and has continuously drawn influx of tourists every day since.
Santa Lucia and Century Properties have also ventured into Puerto Princesa. John Eric D. Escanillas, VP for national sales and marketing at Santa Lucia, explained that they are investing in the city to further expand the company’s footprint.
Santa Lucia President Exequiel Robles has been quoted in reports as saying his company’s entry to Palawan is brought about by the demand it got from its offices abroad. According to Robles, there’s a “strong clamor” from overseas Filipino workers for national developers to come to Puerto Princesa.
Sitel, China
SITEL Group Philippines has also established a countryside expansion program in the city. Its latest addition to Sitel’s Philippine operations opened a thousand new jobs not only in Puerto Princesa but for the whole Palawan province.
Meanwhile, a group of Chinese businessmen led by Zhang Yuxiang visited the city last year to explore possible investment ventures related to trade and tourism.
Yuxiang, chief manager of the China State Construction Engineering Corp. (CSCEC), was quoted as saying that “China wants to bring more Chinese tourists to the city through tourism infrastructure investments in the province.”
Another group arrived a week later to check the possibility of investing in aquaculture, particularly in the rearing of high-value export commodity fish. “The businessmen checked on five marine aquaculture parks in the city for the possibility of establishing hatcheries for high-value species of groupers,” Roberto Abrera of the Regional Fisheries and Aquatic Resources said.
The proposed sites are located in barangays Santa Lucia and Binduyan. The reciprocal visit was upon the orders and guidance of President Duterte to look for mutual economic support opportunities in fisheries development.
Last year, retail, banking and real-estate giant SM opened its 64th mall in Puerto Princesa.
Pack leader
BEHIND most of these developments is Lucilo R. Bayron, mayor of Puerto Princesa.
Bayron told the BusinessMirror his political experience formally began when he became the alter ego of then-Mayor Edward S. Hagedorn.
“I functioned like the mayor. ’Pag sinabi kong meeting, meeting talaga [when I say that we need to meet, it was serious]. I was always on time,” he said. “I was in charge of all problems in the city hall.”
From 1992 to 1995, he organized city events, announcements, “down to the nitty-gritties.”
“I conceptualized ‘Oplan Linis’ [cleanup plan] and the city’s housing program.”
Bayron said his team focused on the coastal areas because people were polluting the bay. There they found out that there were more than 8,000 families in the coastal area from Bagong Sikat to Abaniko, San Pedro.
“We made an inventory—previously not ever done—of the coastal areas and a comprehensive census, how many families lived in those areas and where they worked,” Bayron said. “We prepared a map and turned it over to the barangays to avoid non-stop relocation.”
Family, roots
BAYRON was born in Muntinlupa, inside the New Bilibid Prison Hospital.
His father used to work with the Bureau of Prisons under the Department of Justice where he started as a prison guard. His mother is a Palaweña, born in Coron and belonged to a big family—the Rodriguez, Fernandez and Ponce de Leon clan.
“There were five of us, I am the only boy among four girls, and second to the eldest.”
His father was then transferred to Iwahig Penal Colony “and that’s where I grew up.”
Bayron was six years old when he arrived in Iwahig. He started Grade 1 and finished his elementary education there.
His father became the superintendent of Iwahig Prison and Penal Farm before he retired. His mother was a teacher who later became the principal of Iwahig Elementary School.
He took up high school in Letran College but transferred to Silliman University, where he graduated. He attended college at Silliman University but transferred to the University of the East, where he acquired a Bachelor of Science in Business Administration degree, major in Marketing.
Bayron said his mother was a strict disciplinarian, but his father was a little tolerant—“a combination that was really perfect for us, I think.”
“My father was a practical guy whom I learned many things. I learned a lot in Iwahig because it was like a communist camp where nobody owned anything and everybody worked,” he narrated. “I learned how salt was made, how fish ponds were being developed, how to harvest bangus [milkfish], as well as coconuts and process them into copra.”
Political roots
WHILE waiting for a pharmaceutical company in Manila, Bayron’s father asked him to come home.
“He talked to the late Governor Salvador Socrates and I was taken in as a casual employee earning P8 a day. My heart was not exactly into it as I seldom came to the office, indignant that it was not commensurate to what my father had spent for me in college,” Bayron told the BusinessMirror. “But I persevered upon my father’s prodding.”
One time, the governor met with all fresh graduates from different Manila universities. According to Bayron, they were given an assignment from which he was able to come up with a better and faster output than the rest was able to.
“The governor said, ‘This guy is worth developing.’ They then sent me to several trainings conducted by the Usaid [United States Agency for International Development],” he narrated. “And that’s how I learned about local government unit operations.”
Hagedorn’s take
BAYRON also considers Hagedorn as having performed a crucial role in his entry into government service.
According to him, Hagedorn asked him to join the government when he won against Victor S. Oliveros—Bayron’s uncle—in 1992. He said Hagedorn appointed him as city administrator where Hagedorn’s wife was a subordinate when he was working at the provincial capitol.
“I was reluctant at first because my business was doing good,” Bayron said. “But then, his relatives came to me and pleaded to work with him.”
Bayron said he and Hagedorn had an agreement he would work only for a year.
“I wanted to leave after his first term and told him, ‘I’m leaving because there are no more mountains to climb,’” Bayron said. “‘You’re doing good, there is no need for me to stay,’ I added. So I left.”
Bayron was Hagedorn’s city administrator when he ran for re-election in 1995.
“He wanted me to be his campaign manager at the same time,” he said, “so I told him, ‘I can do only one job. You choose, either you retain me as city administrator or you get me as campaign manager.”
When Bayron was declared winner, he left Hagedorn.
“He could not say anything because he knew that I was serious.”
Bayron was out of the city for 18 months and went back to his business that, he said, suffered tremendously “while I was working with the city government.”
After Hagedorn asked for his help, Bayron said he accepted.
“I accepted to join him again in the government and I got stuck.”
Governance style
BAYRON was a vice mayor for nine years before he was elected mayor in 2013.
“I made sure I was visible and more accessible. I am the person people see in city hall. I decide fast. I tell people straight that if it is not possible, it is not possible,” Bayron said. “I plan where the city government is headed. I steer the ship to its direction. I do my own strategizing.”
Currently, Puerto Princesa is considered a first-class city.
“It is highly urbanized but our facilities belie the fact; but I am working on it,” he said. “People have seen many changes through our many projects that are all visible.”
According to Bayron, he began with a health program by combing all barangays.
“We told them, we did not come here because of politics. We are here to serve the people,” he said.
“I brought all councilors with me with our program for the neglected, poor, teachers, students and senior citizens.”
Bayron looks at education as the great equalizer in life.
“I, for one, believe that being poor is not an excuse to achieve knowledge,” he said. “Kahit anak ka ng mahirap, kung nag-aaral kang mabuti, baka malagpasan mo pa ’yong mayaman na bulakbol [Even if you are poor, your chances of getting ahead are much better than a rich kid who doesn’t take his studies seriously]”
Future moves
ACCORDING to Bayron, his government plans to put up a Biodiversity Museum that will house Palawan birds, animals, marine life, insects and plants similar to the Natural Museum in Washington D.C.
There’s also a plan to build a 12,000-capacity to 15,000-capacity convention center with adjacent hotels near the Puerto Princesa Bay area, patterned after Sydney’s.
“We would like to increase our hotel occupancy to 10,000,” he said. “For once, we will be ambitious and build the tallest tower in the Philippines—a modern structure with a dancing fountain and synchronized lighting technology.”
Bayron is also expecting that Balayong Park will be a big attraction. When the Palawan Cherry Blossoms trees fully grow and bloom in the city’s 1,000-hectare park, it will be a spectacular sight, he added.
“When it happens, we will beat Zamboanga, known as ‘ciudad del flores,’” Bayron said. “It’s just a matter of time and it will come.”
“The Usaid is helping us attract investments,” he added.
“At the moment, we have incentives for tourism-related businesses,” Bayron said. “We give priority to tourism, agriculture and renewable energy.”
The local government is also developing its own “Tourism Mile” along Rizal Avenue, from the provincial capitol to Abrea Road, close to the old airport. Bayron added they also give a five-year tax holiday to investors.
“We will push for our ‘night-time economy’ but, at the same time, provide peace and order to make visitors enjoy their stay in Puerto Princesa as they always do.”
Underground River
CAPACITY is also in Bayron’s mind for the Puerto Princesa Underground River (PPUR).
“Because of the PPUR’s limited carrying capacity, our expansion plans are tied down,” he explained.
“But we do not stop finding creative solutions on how to further develop the area,” Bayron said, citing as example increasing the entrance fee to the site so as not to lose opportunities to earn.
“How much is P500 in dollars? $10. How much do you spend when you go to a destination in the US or in other parts of the world? That’s hundreds of dollars,” Bayron said. “But here, you are only charged a pittance.”
He believes by increasing the entrance fee to the PPUR—declared as a World Heritage Site in 1999, Puerto Princesa can generate P210 million a year from the present P70 million per year.
“We can use the money to protect the World Heritage Site by taking care of people who take care of the park,” Bayron said. “By increasing the number of forest rangers, they will be more effective.”
“Ang tao hihintayin na tumalikod ka bago putulin ang kahoy [When you are not around, people cut trees],” he added.
Hence, Bayron said they plan to “change that mindset, the desire to cut down trees because they earn from them.”
“Let’s give it back to them in whatever form,” he explained. “When people see that it is being plowed back to them, they will protect nature for the next generation.”
Bayron said the local government is also coming up with ideas for more man-made destinations.
Paleco problem
IN May last year, the city government proposed filing a class suit against officials of the Palawan Electric Cooperative (Paleco), according to Bayron.
“Our meeting produced a resolution of mounting a signature campaign demanding the resignation of Paleco officials should they fail to end the power problem in 15 days,” he said.
“The problem with Paleco is it is good at passing the buck and giving reasons for its line and distribution failures. They say that its plant capability is 81 MW [megawatts] and the requirement is only 43 MW, but brownouts still happen,” he added.
To address this problem, Bayron and Energy Secretary Alfonso G. Cusi signed a contract for the country’s first waste-to-energy facility. It’s a project that is gaining praise and pillory.
“As population, tourism and development grow at a rapid pace, we decided to pursue a novel and sustainable solid-waste management system that converts waste to energy, thereby, hitting two birds with one stone,” Bayron said.
He defended the project as doing away with the need to construct another expensive sanitary landfill. Bayron also said Puerto Princesa’s coffers could have an additional income of P20 million a year as share from project revenue.
He added the city will also save P40 million annually, which is its budget allocation for solid-waste collection since Austworks Corp. “will do the actual waste collection themselves.”
Austworks is the developer of the waste-to-energy facility.
Past deeds
ADDRESSING the city’s financial problems is what Bayron considers an accomplishment he’s most proud of during his first term.
“I attended to the city’s financial problems when I got elected,” he said. “We had to tighten our belts and did away with unnecessary expenditures.”
Bayron said the city cut down on free convention dinners.
“Why should the city government spend for convention-goers—engineers, lawyers, businessmen? They can easily afford a P500 plate,” he explained. “I would rather spend them for the poor. They would be happy with P200 worth of food.”
According to Bayron, the local government was able to turn around the city’s financial problem after 18 months, earning it a recognition for fiscal management from the Department of the Interior and Local Government (DILG).
Puerto Princesa was awarded a Good Financial Housekeeping plaque three times. Twice the city won a Seal of Good Governance from the DILG.
Bayron said Puerto Princesa’s financial status and tax collection is “doing good, unlike before when the city owed a lot of money.”
“Do you have collectibles from the city? How much? P50 million? You’ll get paid. Not on staggered basis,” he said. “We have funds stashed away in the bank. Our local budget for infrastructure is P400 million; that’s money we earned.”
Bayron said the city also stopped contracting road projects.
“It is more efficient, cost-wise. We’ve eliminated the contractor’s profit margin and VAT [value-added tax]. So we saved at least 25 percent.”
Future perfect
BY 2028, Bayron said many would not recognize Puerto Princesa.
“The way I see it, the city is like an airplane, it has taken off and destined to fly higher and farther. It’s a fast-growing city; rapidly urbanizing,” he said. “The population is equally increasing because of migration from other parts of the country. We have become the country’s melting pot.”
This led Bayron to note that Cuyono, once their local language, “is not anymore.”
“We’ve become a Tagalog-speaking city. People from all over the country have settled here.”
He noted that rapid urbanization equals worsening traffic and garbage problem. “This also equals more services and facilities,” he added.
“We never fear the daunting task. We are here to find an out-of-the-box solution for the challenges in the present and ahead of us,” Bayron said.
Bayron’s confidence is emboldened by what he considers his greatest strength: palabra de honor.
“When I say something, I do it. Word of honor is important to me,” he said. “I am a working mayor who is always on time; I am dependable. I have good work ethics and not an absentee. I lead by example.”
Bayron said because he’s a family man, he also likes people to call him “Dad.”
“I have become the father figure to the city by that name.”