The 2002 LGU E-Governance Readiness Survey Report ACKNOWLEDGMENTS

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1 ACKNOWLEDGMENTS The 2002 LGU E-Governance Readiness Survey Report This report has been prepared by the Field Operations Office of the National Computer Center with the assistance of Dr. Ederlinda M. Fernandez, Professor IV of the College of Public Administration and Development Studies (CPADS) of the Western Mindanao State University.

2 contents foreword table of contents Chapter 1 INTRODUCTION e-governance and government information 4 jumpstarting electronic governance in the lgus: project brief 9 notes on local government units & their classification 1 Chapter 2 SURVEY METHODOLOGY 15 Chapter FINDINGS and ANALYSIS 1 response rate 17 2 hardware/equipment 2.1 computer units computer types printers & other peripherals 24 network 25 4 internet & e-commerce 4.1 internet connection committed information access rate uses of internet in the lgu website hosting firewall dedicated telephone line 27 5 investment and planning 28 6 application system 6.1 application systems installed 6.2 operating system 5 7 ict organization and planning 7.1 office for lgu computerization plans for setting up ict office 7 7. issp ict personnel internet penetration 40 Chapter 4 SUMMARY of FINDINGS, CONCLUSION and IMPLICATIONS 42 References Appendices survey instrument: the questionnaire

3 1 INTRODUCTION The basic concepts of e-governance and Information Communication Technology are explained along with the Philippine initiative to join the rest of the world s governments in going on-line for electronic interaction with their citizens. How far we have gone, how our local governments can gain from this, and a closer look at the project to bring e- Governance to fruition in the Philippines are discussed as essential background to bring the national survey into proper perspective.

4 1 introducing ICT-powered electronic governance for government efficiency and effectiveness INTRODUCTION This report presents the findings and analysis of the survey entitled The 2002 Local Government Unit (LGU) e-governance Readiness Report. The survey is intended to be the first component of the project Jumpstarting Electronic Governance in the Local Government Units. To provide context and better understanding of the survey, this chapter discusses basic concepts of e-governance and Information Communication Technology (ICT), the legal basis and status of e-governance in the Philippines, how LGUs can benefit from e-governance and other background information on these topics. This discussion will likewise provide some benchmarks for the survey. Meanwhile, to situate the survey, a project brief of Jumpstarting Electronic Governance in the LGUs will also be presented. e-governance and Government Information Technology (ICT) and e-governance Initiatives Governments around the world are embracing electronic governance or what is simply abbreviated as e-governance. In every region of the globe from developing countries to industrialized ones national and local government are putting critical information online, automating once cumbersome processes and interacting electronically with their citizens. Defined broadly, e-governance is the use of ICT to promote more efficient and effective government. It involves delivery of government services and information to the public using electronic means and allows direct participation of constituents in government activities. 1 e-governance allows greater public access to information and facilitates more accessible government services. It may involve delivering services via the Internet, telephone, community centers, wireless devices or other communications services. e-governance also makes government more accountable to its citizens. Indeed, it paves the way for a more citizen-oriented administration, allowing everyone to communicate with the government, to participate in the government decision-making process and to reflect their true needs and welfare by utilizing the Internet and Web technology as its communications and business-transacting tool. 2 e-governance is also synonymous with e- Commerce, which is short for electronic commerce. e-commerce refers to any business activity in which the parties transact though computers or other electronic devices linked via telephone or cell phone. e-commerce is a system that includes not only those transactions that center on buying and selling of goods and services to directly generate revenue, but also those transactions that support revenue generation. Fax transmissions, ATM transactions, retail point of sale (POS) systems and bar-coding, business and text messaging, electronic date interchange or EDI and electronic funds transfer or EFT all qualify as e-commerce activities. More and more e- Commerce activities are being done on the Internet because of the Internet s lower cost, ease of use and unlimited reach. For local government units, e-commerce means having the capability of doing its business on the Internet or the World Wide Web. 4

5 1 e-government means putting citizens on-line, not in-line... and that means cutting off the traditional queues at government offices INTRODUCTION Primarily, this means being able to provide information, accept payments, issue licenses and permits, answer inquiries and generally interact and transact the LGU s business with its constituents, its suppliers, business partners, support organization and other LGUs and agencies of the government through the efficient and effective use of ICT. e-government meanwhile, is putting citizens online, not in-line. Through ICT, citizens can avail themselves of government services online without having to queue in government offices. With e-government, government services can be more efficient, transparent and convenient. Simply stated, e-government is the delivery of government services anytime (24 hours a day, seven days a week), anywhere (in the office, at home or on the move. Legal Basis for e-governance 5 The national government and various other agencies of government, including LGUs, are mandated under Republic Act No to be e-commerce ready within a specified period of time. It is also the national thrust and objective for the country to become the e-services center in Asia. The trend in public service is towards the conduct of transactions in digitized form and facilitated through electronic instruments like computers and the Internet. This enables an LGU to address the increasing demand for speed, accuracy, security and authenticity of transactions. Section 27 of the e-commerce Act directs all agencies of government, including LGUs, to use electronic means in government transactions within two years from the effectivity of the Act signed into law last June 14, Section 27 states that: Notwithstanding any law to the contrary, within two years from the date of the effectivity of this Act, all departments, bureaus, offices and agencies of the government, as well as all government-owned and controlled corporations, that pursuant to law require or accept the filing of documents, require that documents be created, or retained and/or submitted, issue permits, licenses or certificates of registration or approval, or provide for the method and manner of payment or settlement of fees and other obligations to the government, shalla) Accept the creation, filing or retention of such documents in the form of electronic data messages or electronic documents; b) Issue permits, licenses, or approval in the form of electronic data messages or electronic documents; c) Require and/or accept payments, and issue receipts acknowledging such payments, through systems using electronic data messages or electronic documents; or transact government business and/or perform governmental functions using electronic data messages or electronic documents, and for the purpose, are authorized to adopt and promulgate. Section 27 clearly directs all agencies of government to use electronic means in government transactions in a specified period of time. ICT and E-Governance initiatives in the government In 1994, The National Information Technology Council was created as the central body on ICT matters and the National Information Technology Plan 2000 (NITP2000) was adopted. For the first time, the government developed a comprehensive plan and mapped out strategies for the development of ICT industry as well as the development of ICT in the public sector. At present, the NITC has merged with the Electronic Commerce Promotion Council (ECPC) to form the Information Technology and Electronic Commerce Council, known as ITECC. On July 12, 2000, Executive Order No. 265 approved and adopted the Government Information Systems Plan or the GISP as the framework and guide for all computerization efforts in government to enhance overall gover-

6 1 the INTRODUCTION vision is an electronic bureaucracy Philippine Government online if you will, for all Filipinos here and abroad nance and improve the efficiency and effectiveness of the bureaucracy. The GISP envisions an electronic bureaucracy dubbed as Philippine Government Online which is widely and readily accessible to all Filipinos. 4 The national vision of the GISP is for Filipino citizens anywhere in the country and in other shores, as well as current and potential foreign investors anywhere in the world, to have access to government information and services. More recent ICT initiatives include, but are not limited to: The Electronic Procurement System. Executive Order No. 40 was signed, providing for the use of a Government Electronic Procurement System or EPS. The EPS was envisioned to be competitive, transparent and accessible through public bidding. It is an Internet-based procurement system accessible 24 hours a day, 7 days a week designed to simplify procurement of supplies and office equipment by various government agencies and to hasten supplier registration and/or accreditation. Through the EPS, products that have been tested and pre-qualified by the Procurement Service in the most convenient and efficient manner. The EPS is also a front-end application for the creation, posting and review of Bid Notices. Agencies may post bid notices, get responses from accredited suppliers, while the latter can update the status of their bids at the shortest possible time. The e-census Online Service. e-census started serving NSO customers in March This service provides clients with Internet access to apply for copies of civil registry documents though the Web. Similar to the NSO Helpline service, the e- Census is another option given to the client so that he or she is spared the need to physically come to the documents (birth, marriage, death) and the requested document is delivered to any Philippine address specified by the client. These are just some of the initiatives of government to bring to fruition our vision of electronic governance. In spurring Philippine e-governance growth, these initiatives are aimed to: provide a favorable environment and infrastructure, promote trust and confidence among e-governance participants, develop a domestic framework compatible with international norms, and jumpstart e-governance and e- Commerce and encourage its massive use. Status of e-governance in the Philippines A plan for e-governance will depend upon which objectives and specific sectors it chooses as priorities as well as the resources available at a given point in time. Although readiness depends on our e-governance priorities, certain factors demand consideration: Telecommunications infrastructure. Telecommunications equipment and computers, while not the focus of e-government, must be addressed in any e-governance plan. The level of telecommunications infrastructure needed will depend on the e-governance projects pursued. 5 The following is a brief look at our telecommunications facilities: There are, as of April 2002, 76 local telephone service providers and.1 million subscribers with a teledensity of 4.1%. Local telephone service is available in 50% of the total number of cities and municipalities covering approximately 75% of the population. The biggest local telephone service company is PLDT. The other big local telcos are Digitel, Bayantel, PT&T, Globe Telecom, Islacom and Philcom. These companies are all private with foreign ownership limited to 40%. 6

7 1 Harvard s INTRODUCTION global IT report covering 76 countries ranks us 6 th in networked learning, 71 st in general infrastructure, and 7 th in e-commerce In Mobile Communications Service (MCS) or cellular phone services, there are more than 10 million subscribers or 14 subscribers per 100 inhabitants. Population covered is around 70%. In terms of Internet Access Service or IAS, there are 18 IAS providers with 1.5 million subscribers or 2 subscribers per 100 inhabitants. Current connectivity. A second factor in assessing our e-governance status is determining current connectivity by the government. Based on the 2001 e-government Index, it has been determined that the Philippines has 1.9 PCs for every 100 individuals; 2.54 Internet hosts out of 10,000; with % of the total population online. Web presence plays a great role in assessing e-governance. These are the latest statistics pertaining to how many NGAs, SUCs and LGUs are currently online In a survey by the National Computer Center s (NCC) Policies, Plans and Monitoring Office (PPMO), out of the 79 total NGAs, 97% or 68 have websites and a mere % or 11 have no websites. Out of 106 SUCs, 80.2% are online. This means that 85 SUCs now have websites, while 21 have yet to establish web presence. A breakdown of LGU web presence (as of December 2002) reveals that: 87.% out of 79 provinces have web presence an increase from the 78.5% as reported the month before on November 81.6% out of 114 cities are online a great increase from the 72.8% reported the month before And 14.2% out of 1,496 municipalities are online also a significant increase from the 10.4% reported the month before. Human capital. Sufficient numbers of skilled, ICT literate personnel (including managers with experience in procuring, evaluating and implementing ICT solutions) are essential to any e- 7 Governance goal. 6 Concerns in the area of human resources are two-fold: not enough qualified entrants and brain drain, that is, qualified personnel pursuing work outside the country. The Philippines is shown to have an edge in availability and quality of human resources, including: A skilled labor force of 29 million 94% literacy rate Being the rd largest English speaking nation in the world A turnout of 80,000 university graduates yearly About 70,000 IT/computer science related graduates International comparisons The Global IT report : Harvard University surveyed 76 countries including the Philippines, and we ranked 6 th in networked learning, 71 st in general infrastructure and 7 th in e-commerce. The Global e-government Survey in 2001 by Brown University and World Markets Research Center determined that only 6% of Philippine websites offered online services, defined as those that are fully executable in the website. The e-asean Readiness Survey pegged our nation at the Evolving Phase, the 2 nd phase of development, together with Thailand, Brunei and Indonesia The 2001 e-government Index places the Philippines at a rating of 1.44 in the category of Minimal e-government Capacity out of a Global Index of 1.62, which means that we barely fall short in comparison with other countries. Countries such as the United States, Australia and Singapore belong to the highest category with High e-government Capacity (ratings from.25 to 2.00). Poland, Saudi Arabia and Malaysia are some countries which belong to the category of Medium e-gov Capacity falls to countries that rated below The 2001 e-government Index ratings are based on ICT Infrastructure Measures and Human Capital Measures.

8 1 e-governance INTRODUCTION will change the relationship between local goverments and constituents with new levels of accessibility and interactivity Benefits of e-governance Given these facts and figures that are deemed essential to achieving e-governance, these questions may now be asked: What benefits can be achieved from adopting such a system? Who benefits in an e-governance framework? Who are its potential clients? Four possible clients stand to benefit: The Government as when the LGU transacts its business with the national government and other government agencies and LGUs. The Employees as when the LGU provides and allows its employees and officials to conduct their LGU business using the website or Internet facilities. The Business Sector as when the LGU transacts its business with investors, entrepreneurs, suppliers and its other business partners and collaborators using the Internet. The Citizenry as when the LGU provides its constituents or its citizens with the means to transact their business or provide their social, medical and political needs through the efficient and convenient use of ICT and the Web. E-Governance will speed up and simplify government transactions while lowering transaction costs. In an ideal e-governance setting, constituents can conveniently perform on-line transactions anytime when dealing with their LGU. People can file their applications for business permits and other licenses or pay their taxes directly from the comfort of their homes and offices or from any cyber terminal at their leisure. This setup will actually cost less for the LGU since it will reduce queuing of clients and minimize the need for increased service staff and the usual office provisions and amenities (aircon, furniture, etc.) needed to serve the public. Secondly, the LGU can provide faster and more responsive systems and services to more people than it can through traditional paperhandling facilities, thereby increasing its output and overall revenue in the same time frame. More transactions; such as the issuance of permits, licenses, procurement, payment of taxes and other LGU business activities could be done with the least number of people without the need for an LGU staff to work overtime or on extended hours during peak periods or tight deadlines. Adopting e-governance provides efficiency in information generation and dissemination as it gives constituents and prospective investors anytime, anywhere access to critical information pertaining to the LGU. This benefit is achieved through tools such as Local Area Network messaging, and the World Wide Web, which provide faster means of communication within and outside of the LGU premises. Electronic newsletters, announcements, promulgation and other information for broadcast can be sent anytime, anywhere and be received on time and in real time. e-governance opens communication lines within the department of the LGU, government agency and their constituents. Through computer networks (Intranets and the Internet), the LGU can be connected with various department, offices and its constituents. This provides ways of opening up communication lines that were never before possible: The existence of alternative and electronic means of communication provides avenues for internal and external communication to take place. Such open communication possible through e-governance also provides enhanced transparency in the government. Transparency promotes effective governance by opening up decision-making processes to public scrutiny and enhancing the degree to which constituents can hold governance institutions to account. With vital information exposed to public scrutiny, e-governance would mean lesser opportunities for graft and corruption. Finally, transparency equals a more proac- 8

9 1 INTRODUCTION the e-commerce Act of 2000 is the cornerstone of tomorrow s computerized local government tive participation of citizens in governance. With ICT providing convenience of access to the common man, more voices will be heard. Interactive LGU and government agency websites could offer more effective feedback mechanisms, enabling them to keep in touch with the pulse and concerns of the public. e-lgu Jumpstarting Electronic Governance in Local Governments: Project Brief Nowadays, LGUs all over the country are struggling to keep up with computerization. They are faced with quite a number of challenges that hinder them from jumping into the ICT bandwagon. Foremost of these are the absence of a good telecommunications infrastructure in some areas, the skyrocketing cost of IT solutions packages available in the market and the lack of funds to finance ICT projects. Section 27 of the Electronic Commerce Act directs all agencies in government to employ the use of electronic means in the various government transactions within two years from the effectivity of the Act. The Act was signed into law on June 14, As the LGUs experience mounting pressure, these obstacles become even more magnified. Thus, the project dubbed as Jumpstarting Electronic Governance in the Local Government Units - otherwise known as e-lgu was conceived. The project strongly supports one of the key components of the Department of Science and Technology s twenty-year S&T Plan- the Technology Support Program for E-Governance or SUPRE-GOV, which, among others, seeks to accelerate the implementation of the electronic government system starting with the LGUs as well as speed up the application of ICT in government processes and services, with emphasis on the development of priority local government applications. The elgu project is a joint venture between the National Computer Center (NCC) and the DOST, with the latter as the funding source and the former as the implementing arm. The project primarily seeks to enable LGUs to make a head start in adopting computerization by empowering them in terms of their capability to embrace technology and apply the benefits of ICT to local governance towards an improved quality of public service. It will run for a period of three years, starting from September last year. On its initial year, the project is aimed at achieving the following specific goals and objectives: Assess the status of ICT resources and e- governance readiness in the local government Promote awareness and appreciation of the potentials and benefits of ICT to at least 1,000 LGU officials Aid LGU planners from 100 LGUs in drafting their local information systems plans Develop ICT standards for local government Train 100 LGUs on the operation and use of the Real Property Tax System, one of the more important revenue-generating local government applications Develop a local government portal and assist all LGUs in establishing at least Stage 1 (static) web presence. 9

10 1 INTRODUCTION e-lgu s six program components are aimed at producing e-enabled local governments able to effectively apply ICT in local governance Key components of the project The project comprises a number of important components, each of which is geared towards eventually making the local government self-sufficient in terms of employing the benefits of ICT in the area of local governance. They are as follows: LGU IT Resources and e-governance Readiness Survey: This involves the conduct of a nationwide IT survey to assess the LGUs state of e-governance readiness as well as identify the project s principal beneficiaries. The survey forms were distributed last August Advocacy and Promotions: This involves the holding of E-Governance Conventions and the creation of a promotional website ( to be devoted solely to the project. A massive advocacy and promotions campaign shall likewise be launched by means of brochures, special journals, press releases and multimedia presentation packages. The E-Governance Conventions are a series of free one-day seminars highlighting ICT as a vital tool for enhanced government service delivery. Information Systems Strategic Planning: This pertains to the provision of assistance to pilot LGUs in the drafting of IS Plans by way of the development of an ISSP template and prototype and the conduct of an ISSP Seminar-Workshop. Formulation of Data Standards for Local Government: This refers to the creation of ICT data standards for LGUs through consultation and coordination with the LGUs and various data-producing agencies. Local Government Application Systems Development and Users Training: This involves the development of open source, web-and GIS-enabled application systems supporting the LGUs revenue collection function and the conduct of users training for such. Open source is the technology of choice since it allows free distribution of software and provides for greater maintainability, flexibility and interoperability. Its potentials and possibilities could be the answer to constraints (e.g. financial) faced by most, if not all, LGUs. Three of the more important LGU revenue-generating systems shall be developed within the three-year project period the Real Property Tax System (RPTS) in year 1, and the Business Permits and Licensing System (BPLS) and the Treasury Operations Management System (TOMS) in the succeeding years of the project. Establishment of LGU Web Presence: This pertains to the provision of assistance to LGUs in establishing at least a static web presence on the initial year of the project by way of providing them with an easy-to-use website template with online content management feature. An LGU web portal shall likewise be created linking all LGUs that are already online. the status of LGUs with web presence (as of may 1, 200) Overall Website Status Statistics With Without Total Unc Total % Provinces Cities Municipalities 1, ,496 Total 1, ,690 10

11 1 INTRODUCTION Luzon Website Status Statistics With Without Total Unc Total % Provinces Cities Municipalities Total Visayas Website Status Statistics With Without Total Unc Total % Provinces Cities Municipalities Total Mindanao Website Status Statistics With Without Total Unc Total % Provinces Cities Municipalities Total # web presence status summary by region (as of may 1, 200) Region Provinces Cities Municipalities Overall With Without Total Status With Without Total Status With Without Total Status With Without Total Status LUZON % % % % % % % % % 1 2 % % % % % % % 4a % % % % 4b % % % % % % % % CAR % % % % NCR % % % VISAYAS % % % % % % % % % % % % % % % % MINDANAO % % % % 9-100% % % % % % % % % % % % % % % % % - 100% % % ARMM % % % % TOTAL % % ,496 5% ,690 58% R2: Isabela Province, Tuguegarao City, Cauayan City <--- with db but not yet uploaded; cd received by FOO-Luzon 6/18 11

12 1 INTRODUCTION the four expected program outcomes all translate to better delivery of basic services to constituents The implementation of the project over a three-year period expects to yield the following results: Increased understanding and commitment on ICT Through the conduct of the e-governance Seminar as well as the extensive media promotion campaign depicting success stories of the project s beneficiary-lgus, the chief executives not only of the pilot LGUs but also of all the rest shall have become well versed on the benefits and significance of adopting ICT and applying it to the various areas of local governance. As such, management commitment and support for future ICT projects could easily be obtained. Development of ICT Standards During the e-lgu Conference held in April 2002, there was a clamor from the participating LGUs for the formulation of ICT standards in the local government to synchronize all computerization efforts, and this includes the formulation of data standards. Through this project, this particular issue will be addressed. Efficient delivery of basic services to the public and increased tax collection capacity of LGUs through the use of ICT The development of application systems that directly support the revenue and collection functions of the LGUs using open source technology lifts the financial burden of software acquisition costs from the LGUs, especially the less privileged ones, since the application package shall be made available not only to the pilot LGUs but to all those that are interested. The systems are also expected to increase the LGUs collection efficiency and enhance revenue to ensure the swift and efficient delivery of basic services and thus enable them to better cater to the needs of the people. Greater access to vital public information As far as the establishment of web presence is concerned, this will help boost tourism and thereby promote economic development in the country. The LGUs on-line presence will also enable the public to gain access to vital information pertaining to the different provinces, cities and municipalities in the Philippines Summarily, this project endeavors to bring about the much-needed change in the local government system and transform it into an e-enabled bureaucracy. 12

13 1 INTRODUCTION the four expected program outcomes all translate to better delivery of basic services to constituents Notes on local government units (LGUs) and their classifications Local Government constitutes the foundation of the entire structure of the government. The performance of the LGUs affect the ordinary citizen more directly than that of the national government. The President of the Philippines exercises supervision over the whole country. But for purposes of administrative control, the Philippines is divided into units of different sizes known as political subdivisions. These are provinces, municipalities, cities and barangays. Per Department Order of the Department of Finance No dated November 20, 2001, provinces, cities, and municipalities are classified as follows: The classification of Provinces shall be based on the following income brackets Class First Second Third Fourth Fifth Sixth Average Annual Income P 255M or more P 170M or more but less than P 255M P 120M or more but less than P 170M P 70M or more but less than P 120M P 5M or more but less than P 70M Below P5M The classification of Cities shall be based on the following income brackets The classification of Municipalities shall be based on the following income brackets Class Average Annual Income First P 205M or more Second P 155M or more but less than P 205M Third P 100M or more but less than P 155M Fourth P 70M or more but less than P 100M Fifth P 5M or more but less than P 70M Sixth Below P5M *Manila and Quezon City are Special Class Cities Class Average Annual Income First P 5M or more Second P 27M or more but less than P 5M Third P 21M or more but less than P 27M Fourth P 1M or more but less than P 21M Fifth P 7M or more but less than P 1M Sixth Below P7M The province is the largest political unit in the Country. As of survey date, there are 79 provinces. Each province is composed of municipalities commonly called towns. The municipality is a public corporation created by an Act of Congress and is governed by the Municipality Law, which defines its duties and powers. There are 1,496 municipalities as of survey date. The chartered city is also a unit of local administration. It is created by a special law, which serves as its charter. The constitution of the city, the charter, creates the city, defines its boundaries, provides its system of government and defines the powers and duties of its officials. There are 67 chartered cities in the Philippines. Over all, there are 115 cities as of survey date. The entire country is grouped administratively into regions. At present, there are 17 regions including Cordillera Administrative Region (CAR), National Capital Region (NCR) and the Autonomous Region of Muslim Mindanao (ARMM). Region IV-A is known as CALABARZON (Cavite,Aurora, Laguna, Batanggas, Rizal, and Quezon) while IV-B is MIMAROPA or Mindoro Occidental and Mindoro Oriental, Marinduque, Romblon and Palawan. 1

14 2 METHODOLOGY A discussion on the objectives of the Survey, how it was carried out, the instruments used, the research approaches and devices utilized.

15 2 METHODOLOGY before anything else, a clear picture of how ready local government units are for e-governance was needed, hence, a national survey This survey is the first component of the project Jumpstarting Electronic Governance in the Local Government Units. Its general objective is to determine the level and extent of computerization among LGUs for ICT planning, policy formulation, and decision making in the government. Specifically, the survey seeks to Serve as input for assessing LGUs to constitute a select group of pilot beneficiaries of the DOST-funded project Jumpstarting Electronic Governance in the Local Government Units Inventory computer initiatives and technical capabilities in implementing and maintaining computerized operations among LGUs. The survey was initially set up to have a census or a total enumeration of all LGUs in the country to provide an accurate picture of e-governance Readiness. However, slow return of accomplished questionnaires prompted the research staff to limit analysis on retrieved questionnaires after six months of survey. The main instrument used for the survey is a four-page questionnaire which was distributed throughout the country (Enclosure A) The main parts of the questionnaire contained the following items intended to yield data on the following topics: 1. Hardware/Equipment 2. Network. Internet and E-commerce 4. Investment and Planning 5. Application System 6. Information and Communications Technology (ICT) Organization and Planning Data were electronically encoded and tabulated. Primarily descriptive statistical analysis was used, mainly central tendencies as mean, average and percentages. 15

16 SURVEY FINDINGS and ANALYSIS A detailed look at the results of the e- Governance Survey in terms of target response rates and the answers to the queries designed to show the level of LGU readiness for e-governance.

17 ANALYSIS The survey, which started last August 2002, targeted a total population of 1,690 LGUs classified as follows: 79 provinces, 115 cities and 1,496 municipalities. However, at the end of the survey period (April 200) only a total of 707 LGUs submitted accomplished questionnaires or a response rate of 41.8%. Analysis of Philippine LGU e-governance Readiness will therefore be limited to this sampling. 1. Response Rate 1.1 By collection rate (population vs. respondents) By LGU classification, the provinces have the highest response rate (71%), that is, out of 79 provinces, 56 responded and 2 did not. Of the total number of cities, 74 out of 115 responded or a response rate of 64%. Only 577 (9%) out of 1,496 municipalities responded (Table 1). NCR with a total population of 17 and 10 respondents has the highest response rate of 59% followed by Region III (Central Luzon) with 58% and Region IX Zamboanga Province with 52%. At the tail-end are Region VII (Central Visayas) with 0-88%, Cordillera Administrative Region 29% and the ARMM which has the lowest response rate with only 12% (Table 2). Table 1: Response Rate, by LGU Classification LGU Type Respondents Responded Did Not Total Province 56 71% 2 29% 79 City 74 64% 41 6% 115 Municipality 577 9% % 1496 Total % % 1690 Table 2: Response Rate, by Region and LGU Type, Ranked as to Collection Rate Rank Region Desc Population City Prov Mun Total Rate 1 IX Zamboanga Peninsula % 2 NCR National Capital Region % III Central Luzon % 4 XIII CARAGA Administrative Region % 5 X Northern Mindanao % 6 XI Southeastern Mindanao % 7 V Bicol % 8 I Ilocos % 9 VI Western Visayas % 10 II Cagayan Valley % 11 IV-B Mimaropa % 12 VIII Eastern Visayas % 1 VII Central Visayas % 14 IV-A Calabarzon % 15 XII Central Mindanao % 16 CAR Cordillera Administrative Region % 17 ARMM Autonomous Region for Muslim Mindanao % Total 1, % 17

18 ANALYSIS 1.2 By Collection Count Municipalities constitute the highest LGU respondent by collection count (82%), followed by Cities (10%) and Provinces (8%) Figure 1. Respondents, by LGU Classification and Collection Count Region III (Central Luzon) has the highest number of respondents (79) followed by Region V (Bicol) with 61 and Region I (Ilocos) and Region VI (Western Visayas), both with 57. NCR has the lowest number of respondents with 10. (Table ) Table : Response Rate, by Region and LGU Type, Ranked as to Collection Count Rank Region Desc Population City Prov Mun Respondent Rate 1 III Central Luzon % 2 V Bicol % I Ilocos % 4 VI Western Visayas % 5 X Northern Mindanao % 6 VIII Eastern Visayas % 7 IV-A Calabarzon % 8 IX Zamboanga Peninsula % 9 VII Central Visayas % 10 XIII CARAGA Administrative Region % 11 II Cagayan Valley % 12 XI Southeastern Mindanao % 1 IV-B Mimaropa % 14 CAR Cordillera Administrative Region % 15 XII Central Mindanao % 16 ARMM Autonomous Region for Muslim Mindanao % 17 NCR National Capital Region % Total 1, % 18

19 ANALYSIS By island grouping, respondents from Luzon constitute almost half of the respondents (48 or 49%) followed by Mindanao (20 or 29%) and the Visayas (156 or 22%). Table 4 shows respondents by LGU classification and Region arranged by island group. Figure 2. Respondents, by Island Grouping and Collection Count Table 4: Respondents, by LGU Classification and Region Region Desc Population Cities Provinces Municipalities Total Rate 1 CAR Cordillera Administrative Region % 2 I Ilocos % II Cagayan Valley % 4 III Central Luzon % 5 IV-A Calabarzon % 6 IV-B Mimaropa % 7 NCR National Capital Region % 8 V Bicol % 9 VI Western Visayas % 10 VII Central Visayas % 11 VIII Eastern Visayas % 12 ARMM Autonomous Region for Muslim Mindanao % 1 IX Zamboanga Peninsula % 14 X Northern Mindanao % 15 XI Southeastern Mindanao % 16 XII Central Mindanao % 17 XIII CARAGA Administrative Region % Total % 2. Hardware/Equipment 2.1 Computer Units Of the total 707 respondents, 1 LGUs (2%), all of them municipalities reported not owning a single computer unit. These LGUs are shown in Table computers

20 Table 5: LGUs with No Computer Systems ANALYSIS Unit Name Class Region 1 San Emilio, Ilocos Sur 4th Class I 2 Arayat, Pampanga 2nd Class III Sto. Tomas, Pampanga 4th Class III 4 Sampaloc, Quezon 5th Class IV-A 5 Malinao, Albay rd Class V 6 Buenavista, Guimaras 4th Class VI 7 Maria, Siquijor 5th Class VII 8 San Policarpio, Eastern Samar 5th Class VIII 9 Tangcal, Lanao del Norte 6th Class X 10 Concepcion, Misamis Occidental 6th Class X 11 Del Carmen, Surigao del Norte 5th Class XIII 12 General Luna, Surigao del Norte 5th Class XIII 1 Pagagawan, Maguindanao 6th Class ARMM Among those LGUs with no computers, one is a 2 nd class municipality, one rd class, three 4 th classes, five 5 th classes, and three 6 th classes; Luzon and Mindanao both have five municipalities with no computers while the Visayas has three. The number of computer units reported ranged from a low one (1) to a high of 45. Among the municipalities, the following in rank order have the highest number of computer units. Table 6: Top 10 Municipalities in Terms of Computer Units Rank Unit Name Class Region No. of Computer Units 1 La Trinidad, Benguet 1st Class CAR 57 2 Taguig Municipality 1st Class NCR 55 Cainta, Rizal 1st Class IV-A 50 4 Sta. Rosa, Laguna 1st Class IV-A 46 5 Tampakan, South Cotabato 4th Class XII 41 6 Kapalong, Davao del Norte 1st Class XI 8 7 Pateros Municipality 1st Class NCR 6 8 Dalaguete, Cebu rd Class VII 6 9 Labo, Camarines Norte 1st Class V 6 10 Bauang, La Union 1st Class I 4 Eight of the top ten municipalities with most number of computers are 1st class municipalities but Tampakan, South Cotabato, a 4th class municipality is fifth in the list with 41. Seven of the top ten municipalities in terms of number of computer units available are in Luzon, two in Mindanao and one in the Visayas. The mean number of computer units in this LGU class is 10. Among the LGUs, the cities reported owning the most number of computer units. Makati City tops in this category with 45 units followed by Davao (87) and Olongapo (264). Five of the top ten cities in terms of number of computer units available are in Luzon, four in Mindanao and one in the Visayas. Table 7 shows the top ten cities in this category. 20

21 Table 7: Top 10 Cities in Terms of Computer Units ANALYSIS Rank Cities Class Region No. of Computer Units 1 Makati Highly Urbanized NCR 45 2 Davao 1st Class XI 87 Olongapo Highly Urbanized III Pasig Highly Urbanized NCR 28 5 Naga Chartered V 20 6 Bacolod Highly Urbanized VI Iligan Highly Urbanized X 16 8 Tagum 2nd Class XI Angeles 1st Class III Zamboanga Chartered IX 18 On the other hand, the following cities have the least number: Table 8: Cities with the Least Number of Computer Units Rank Cities Class Region No. of Computer Units 1 Laoag 2nd Class I 2 Cavite rd Class IV-A 11 2 Ligao Unknown V 11 2 Isabela 4th Class IX 11 Trece Martires rd Class IV-A 14 Iriga rd Class V 14 4 Vigan 5th Class I 19 5 Balanga 5th Class III 21 5 Palayan 4th Class III 21 6 Alaminos 5th Class I 22 The cities have a mean of 75 computer units. Camarines Sur and Bohol, both with 18 have the highest number of computer units among all the province respondents. Meanwhile, Lanao del Sur, also a first class province has the least with only two. On the average, provinces have 60 computer units. Table 9: Top 10 Provinces in Terms of Computer Units Rank Provinces Class Region No. of Computer Units 1 Camarines Sur 1st Class V 18 1 Bohol 1st Class VII 18 2 Laguna 1st Class IV-A 181 Agusan del Sur 1st Class XIII 1 4 South Cotabato 2nd Class XII Davao del Norte 1st Class XI Benguet 2nd Class CAR Pangasinan 1st Class I 96 7 Negros Oriental Unknown VII 96 8 Isabela 1st Class II 95 9 Compostela Valley 1st Class XI Nueva Vizcaya 2nd Class II 88 21

22 ANALYSIS Eight of the top ten provinces are 1st class. Albay, Bulacan and Lanao del Sur, all 1st class provinces are in the list of Provinces with the least number of computers. It is evident from the foregoing findings that class of LGU is not directly related to the number of computers owned/available in the LGU. Table 9: Provinces with the Least Number of Computer Units Rank Provinces Class Region No. of Computer Units 1 Lanao del Sur 1st Class ARMM 2 2 Albay 1st Class V 6 Capiz Unknown VI 9 4 Sulu rd Class ARMM 10 5 Bulacan Unknown III 10 6 Aklan 2nd Class VI 11 7 Eastern Samar 2nd Class VIII 14 8 Surigao del Norte Unknown XIII 15 9 Basilan 4th Class ARMM Zamboanga Sibugay 2nd Class IX Computer Types Microcomputer systems accounted for almost all of the systems reported (desktop, 97.5%) and laptop units (2.5%). A total of 40 (0.%) mini-computers and 7 (0.05%) main frames are also reported. Table 10: Microcomputer units, by Processor type Processor Desktop Laptop Total % to Total Pentium IV,221 71,292 21% Pentium III 5, ,612 7% Pentium II,94 7,467 2% Pentium I % Other 2, ,218 14% Total 14, ,60 100% More than a third (5.94%) of all microcomputer units reported is Pentium III (5.94%) followed by Pentium II (22.79%) Among the island groups, Luzon accounts for more than half (5.%) of all computer units reported. Mindanao has 27.% while the Visayas has 19.4%. Table 12 shows the summary table for computer units by size (desktop/laptop) and type (Micro, Mini and Main) 22

23 ANALYSIS Table 10: Summary, Computer Units by Size and Type 2

24 ANALYSIS 2. Computer Printers and Other Peripherals Computer peripherals refer to devices that can be connected to a computer such as scanner, plotter, modem, router, hub, switch, etc The total number of LGUs, which reported having at least one computer, is 694. Of this number, 680 (98%) have printers and other peripherals while 14 (26%) do not have any. Total number of peripherals reported is 16,462. Peripherals reported are mainly printers (12,691 or 77.09%) primarily inkjet and dot matrix. Line printers constitute the least for printer type with only 15 or less than 1%. Scanners constitute the plurality (8.4%) of the other peripherals accounted for followed by modems (2.54%). The other peripherals reported are hub, switch, plotters, digitizers, and routers, in that order. One hundred forty nine (149) other peripherals are also noted. Region III has the highest number of peripherals (1,621) followed by Region XI (1,542), Region VI (1,4), Region V (1,07) and Region IV A (1,00). The ARMM on the other hand has the least with only 82. (Table 1) peripherals Table 1: Printers and Other Peripherals, Summary Region Printers Other Peripherals Dot Matrix Inkjet Laser Line Printer Total Scanner Plotter Digitizer Modem Router Hub Switch Other Total Total Units 1 CAR I ,080 II III , ,621 5 IV-A , ,00 6 IV-B NCR V ,07 9 VI , ,4 10 VII VIII ARMM IX X , XI , , XII XIII Total 5,608 5,86 1, ,691 1, , ,771 16,462 24

25 ANALYSIS. Network Local Area Network (LAN) refers to any connection of computers within one building, unit, or office. It is a private data communications network linking various computing resources such as PCs, printers and servers within a relatively small geographic area. This questionnaire item got a poor response rate: only 40 out of a total of 707 (48%) or less than half of the total respondents provided data requested. To the question Does your LGU have Local Area Network (LAN), 175 (51.5%) or about half of those who responded to this item answered positively. All the regions have LANs with Region XI (20), Region III (18) and Region X (18) in that order, leading in the number of LANs while ARMM (1), CAR () and IV-B (4) have the least number Most of those without LANs (90) said that they intend to set up LANs in 200 while 79 said they would do so in 2004 and beyond. A total of 22 Network Operating Systems used is accounted for with Microsoft NT Server constituting the plurality (40%) followed by Windows Peer to Peer (8%). Coming in poor third is Novell (9.5%) and fourth is Unix (9%). Eight LGUs are part of a Wide Area Network (WAN). Of this number, seven are in Luzon and one is in Mindanao Table 14: Network Summary 25 LGUs part of WAN Unit Name Region 1 Albay Province V 2 Iriga City, Camarines Sur V Laoag City, Ilocos Norte I 4 Legazpi City, Albay V 5 Makati City NCR 6 San Fernando City, La Union I 7 Sta. Maria, Ilocos Sur I 8 Valencia City, Bukidnon X Network Operating System Setup LAN in Region LGUs WAN LAN MSNT Novell Unix WinP2P Others Total Other 1 CAR I II III IV-A IV-B NCR V VI VII VIII ARMM IX X XI XII XIII Total

26 ANALYSIS 4. Internet and E-Commerce 4.1 Internet Connection The respondents were asked, Is your LGU connected to the Internet? Of the 707 respondents, 217 answered positively (0.7%), 87 (54.74%) said No and 10 (14.57%) had no response. Only 604 accomplished this portion or a response rate of 85.4%. Among the regions, Region III has the most number of LGUs connected to the Internet () followed by Region I and Region IV-A with 26 each. The ARMM did not report any LGU with Internet while all LGUs in the NCR have Internet connection. Majority (87.60%) of LGUs with Internet connect via dial up (used to call an Internet service provider (ISP) and log onto the Internet, it requires ISP s phone number log-in name, and password) while only ten (10) have leased lines (a private line, leased from a common carrier, between two or more points). Of the 87 negative responses to the question Is your LGU connected to the Internet, majority (220 or 56.85%) attributed it to No ISP (Internet Service Provider is a type of company that provides Internet service) followed by No Budget (15 or 9.5%) and No Management Support (6 or 9.%). ) Data on this topic is found in Table 15 and Committed information access rate (Bandwidth size of LGU ISP) Bandwidth is the relative range of frequencies that can be passed by a transmission medium without distortion. The greater the bandwidth, the greater the informationcarrying capability of the transmission medium. It is measured in Hertz, and may also be expressed as the number of bits that can be transmitted per second. Of the 217 who reported having Internet connection, only 128 (59%) responded to this item. Plurality (7 or 28.9%) use 64-bandwidth size, followed by 128 bandwidth, 1 or 24.4% while those with 256-bandwidth size constitute 2 (18%). 4. Uses of Internet in the LGU This item called for multiple response. Of the listed uses, (190) topped followed by research (187), ads (46), e-commerce (41) and chat (1) in that order. The low response rate for e-commerce, supposedly one of the primary purposes for the adoption of ICT in LGUs, is duly noted. 4.4 Website Hosting Website refers to the address of the file (resource) of an agency s main web page accessible on the Internet. Only 47 LGUs (22%) reported hosting their own website. Again, Region III topped this category with 11 LGUs, followed by Region IV A with eight and Region VI with six. The LGU respondents in the following regions have no website: CAR, IV-B, X and XI. 4.5 Firewall Firewall means a security mechanism to protect a private network site and its systems from outside intrusion and (a) either accepts or blocks an application from entering or exiting the network and/or (b) allows or denies packets of information entering or exiting the network cables. Fifty (2%) LGUs reported having firewalls. 26