On 27 July 2008, a Memorandum of Understanding on the Ancestral Muslim Domain (MOA-AD) was concluded in Malaysia. Under the deal, about 700 villages in Mindanao would hold a referendum within a year to determine whether they intend to join the Bangsamoro Juridical Entity, an associated state that would be formed by the government after the necessary constitutional changes. The agreement was to be signed on 5 August and the final peace agreement is expected to be concluded by November. This NOREF report, written by Conciliation Resources` Philippine Program Director, offers an insider perspective on developments and innovations over 17 years of negotiations and provides insight that could be relevant to other peace processes. The ARMM regional government continues to claim that the GRP, by unilaterally controlling Mindanao`s natural resources, violated the peace agreement. A review of the DMARD`s 2002 budget does not show that the ARMM has been able to increase its revenues from the use of natural resources or from the taxation of companies operating in the region. The total budget of the ARMM in 2002 was 14.3 billion pesos (about $342 million). The ARMM`s tax revenue amounted to 2 million pesos (about $48,000). Thus, in 2002, 99,985 of the ARMM budget came from the GRP, while 0.01 came from regional direct taxes.1 Ramos` presidential term ended in June 1998, but low-level negotiations continued under the new government of President Joseph Ejercito-Estrada. Formal peace talks were to begin in October 1999 only to be suspended by Estrada`s abrupt change in policy by the declaration of a ”universal war” against the MILF. [6] [7] The president of Salamat then declared jihad against Estrada`s government.