CHAPTER 5 PROJECT SCOPE OF WORK

5.1 MINIMUM EXPRESSWAY CONFIGURATION

5.1.1 Project Component of the Project

The project is implemented under the Public-Private Partnership (PPP) Scheme in accordance with the Philippine BOT Law (R.A. 7718) and its Implementing Rules and Regulations.

The project is composed of the following components;

Component 1:Maintenance of Phase I facility for the period from the signing of Toll Concession Agreements (TCA) to Issuance of Toll Operation Certificate (TOC)

Component 2: Design, Finance with Government Financial Support (GFS), Build and Transfer of Phase II facility and Necessary Repair/Improvement of Phase I facility.

Component 3:Operation and Maintenance of Phase I and Phase II facilities.

5.1.2 Minimum Expressway Configuration of Phase II

1) Expressway Alignment

Phase II starts at the end point of Phase I (Coordinate: North = 1605866.31486, East 502268.99378), runs over Sales Avenue, Andrews Avenue, Domestic Road, NAIA (MIA) Road and ends at Roxas Boulevard/Manila-Cavite Coastal Expressway (see Figure 5.1.2-1).

2) Ramp Layout

Five (5) new on-ramps and five 5) new off-ramps and one (1) existing off-ramp are provided as shown in Figure 5.1.2-1. One (1) on-ramp constructed under Phase I is removed. One (1) overloaded truck/Emergency Exit is provided. One (1) on-ramp for NAIA Terminal III exit traffic and one existing off-ramp from Skyway for access to NAIA Terminal III. One (1) on-ramp along Andrews Ave. to collect traffic jam from NAIA Terminal III traffic and traffic on Andrews Ave. One (1) off-ramp to access to NAIA Terminal I and Terminal II. One (1) on-ramp to collect traffic from NAIA Terminal I and Terminal II. One (1) on-ramp and one (1) off-ramp from/to Roxas Boulevard. One (1) on-ramp and one (1) off-ramp from/to Manila-Cavite Coastal Expressway. One (1) existing on-ramp of Phase I is recommended to be removed.

3) Number of traffic lanes of the main expressway and ramps

Number of traffic lanes of the expressway is four (4) lanes (2-lane x 2-direction). Number of traffic lanes of all ramps is one (1) lane.

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PRESSWAY CONFIGURATION CONFIGURATION PRESSWAY

FIGURE 5.1.2-1 MINIMU EX

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4) Number of traffic lanes of at-grade roads during and after expressway construction

Number of traffic lanes of at-grade roads are as shown in Table 5.1.2-1 and Figure 5.1.2-2.

TABLE 5.1.2-1 NUMBER OF TRAFFIC LANES OF AT-GRADE ROADS No. of Traffic No. of Traffic Existing No. of At-grade Road Lanes Lanes After Traffic Lanes During Construction Construction Sales Avenue East Bound 3 (Before on-ramp) 2 3 2 (After on-ramp) West Bound 3 (Under off-ramp) 2 3 2 (Under off-ramp) Andrews Avenue East Bound 3-4 3 3-4 (Sales Ave. – Roundabout) West Bound 3 3 3 Andrews Avenue East Bound 3 2 3 (Roundabout – Domestic Road) West Bound 3 2 3 Domestic Road North Bound 3 2 3 South Bound 3 2 3 NAIA (MIA) Road (Domestic East Bound 4 2 4 Road – Quirino Avenue) West Bound 4 2 4 NAIA (MIA) Road (Quirino East Bound 4 2 4 Avenue – Roxas Boulevard) West Bound 3 2 3

FIGURE 5.1.2-2 NUMBER OF TRAFFIC LANES AT-GRADE ROADS 5-3

5) Vertical Clearance for Expressway and At-grade Roads

Vertical clearance for expressway and at-grade roads is as follows;

Desirable Vertical Clearance: 5.00 m Absolute Minimum Vertical Clearance (Note-1): 4.88 m

Note-1: applicable only to the section controlled by NAIA Navigational Height Limit.

6) Pedestrian Overpass Bridge

Existing pedestrian overpass bridges are treated as follows;

Pedestrian Overpass Bridge along Andrews Avenue: To remain as is.

Pedestrian Overpass Bridge along Domestic Road: To be removed and converted to the pedestrian crossing with traffic light.

Pedestrian Overpass Bridge near the Intersection To be removed and replaced with new between Domestic Road and NAIA Road: one near the intersection.

Pedestrian Overpass Bridge at the Intersection To remain as is. between NAIA Road and Roxas Boulevard:

Minimum vertical clearance on the pedestrian overpass bridge is 2.00 m.

7) NAIA Navigational Height Limit

NAIA navigational height limit is shown in Figure 5.1.2-3 which shall be confirmed by Civil Aviation Authority of the Philippines (CAAP).

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FIGURE 5.1.2-3 HEIGHT LIMIT ALONG ANDREWS AVE. AND DOMESTIC ROAD AND AVAILABLE NET HEIGHT AND 5.1.2-3 DOMESTIC ROAD ANDREWS AND AVAILABLE AVE. HEIGHT ALONG LIMIT FIGURE

URE 5-5

5.2 MINIMUM DESIGN STANDARDS

5.2.1 Geometric Design Standards

1) Design Standard

The following standard is mainly used as reference in NAIA Express Highway Phase II design.  A Policy on Geometric Design of Highways and Streets, AASHTO 2004  Highway Safety Design Standards Part 1 Road Safety Design Manual, May 2004, DPWH  Japan Road Association, Road Structure Ordinance,2004  Highway design manual, Metropolitan Expressway Co., Ltd., Japan  Highway design manual, NEXCO, Japan

2) Design Speed

Main Expressway Alignment

Minimum design speed of the main expressway alignment is 60 km/hour, except for the short section from Sales Avenue to Andrews Avenue of which design speed is 50km/hour.

(a) On and Off Ramps

The on and off ramp design speed is 40kph.

3) Design Vehicle

A single-unit truck is considered as design vehicle of the main alignment and ramps.

4) Geometric Design Standards

Geometric design standards are summarized in Table 5.2.1-1 and Table 5.2.1-2.

5) Typical Cross Section

Typical cross sections of main expressway for normal section, main expressway for NAIA navigational height limit section and a ramp are shown in Figure 5.2.1-1.

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TABLE 5.2.1-1 GEOMETRIC DESIGN STANDARDS FOR NAIAX PHASE-II: MAIN EXPRESSWAY ALIGNMENT

Geometric Design Standards: Main Expressway Alignment Item Unit Standard Absolute Minimum Remark

Design Speed kmh 60

Design Vehicle - SU

page 56, Table 16.3, DPWH Rad Safety Stopping Sight Distance m 85 75 Design Manual Page 69, Table 16.4 DPWH Road Safety Passing Sight Distance 〃 410 Design Manual 1. Cross Section Elements Item Unit Standard Absolute Minimum Remark Lane Width m3.50 Median Width 〃 1.00 Inner Shoulder Strip 〃 0.50 0.5m shall be adopted for NAIA Outer Shoulder Strip 〃 1.50 0.5 Navigational height limit section and section over Sales Ave. Number of Lanes nos 2 Normal Crossfall % 2.00 page 53, table 16.1 DPWH Road Safety Maximum super elevation % 6.00 Design Manual page 168, exhibit 3-26, ASSHTO 2004 Super elevation % exhibit 3-26

page 62, super elevation DPWH, Road Maximum relative gradients % 0.60 Safety Design Manual

2.Horizontal Alignment

Item Unit Standard Absolute Remark Minimum Radius m 123 Page 147, exhibit 3-15, ASSHTO 2004 Page 61, Figure 16.3 DPWH Road Safety Min. Transition Curve Length 〃 30 Design Manual page 168, exhibit 3-26, ASSHTO 2004 Min.Radius not requiring 〃 1030 500 (2.0%),JPN Standard Transition Curve Superelevation run off 1/125 JPN Standard 3. Vertical Alignment Item Unit Standard Absolute Maximum Remark Page 53,Table 16.1 DPWH Road Safety Max Vertical Gradient % 57 Deisgn Manual 1500(1000) JPN Standard Crest 〃 18.0 Min.K value Sag 〃 18.0 2000(1400)JPN Standard Page 636, DPWH Design Guidelines, Min. Vertical Curve Length〃 60 Criteria and Standards Vol II

Max.Composition Grade % 11.5

4.Curve Radius and Widening (per 1 carriage way) Radius Curve(m) 400 300 250 200 150 140 130 120 90 Widening(m) 0.1 0.2 0.2 0.3 0.5 0.6 0.6 0.6 0.7 AASHTO 2004 p211 ,p213 adjusted to SU, roadway width 7.0m Values less than 0.6m may be disregarded

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TABLE 5.2.1-2 GEOMETRIC DESIGN STANDARDS FOR NAIAX PHASE-II: RAMPS

Geometric Design Standards: Ramps Item Unit Standard Absolute Minimum Remark

Design Speed 〃 40

Exhibit 2-4, p22 AASHTO 2004 Design Vehicle - SU

page 56, Table 16.3, DPWH Rad Safety Stopping Sight Distance 〃 50 Design Manual Page 69, Table 16.4 DPWH Road Safety Passing Sight Distance 〃 270 Design Manual 1. Cross Section Elements Item Unit Standard Absolute Minimum Remark Pavement Type PCCP Lane Width m 3.50 Median Width 〃 - Inner Shoulder Strip 〃 0.50 Outer Shoulder Strip 〃 2.00 0.5 0.5m for 2 lanes Ramp Number of Lanes nos 1 Normal Crossfall % 2.00 page 53, table 16.1 DPWH Road Safety Maximum super elevation % 6.00 Design Manual page 168, exhibit 3-26, ASSHTO 2004 Super elevation % exhibit 3-26

page 62, super elevation DPWH, Road Maximum relative gradients % 0.66 Safety Design Manual 2.Horizontal Alignment Item Unit Standard Absolute Minimum Remark Minimum Radius m 43 Page 147, exhibit 3-15, ASSHTO 2004 Page 61, Figure 16.3 DPWH Road Safety Min. Transition Curve Length 〃 22 Design Manual Min.Radius not requiring page 168, exhibit 3-26, ASSHTO 2004 〃 525 (2.0%) Transition Curve Superelevation run off 1/125 JPN Standard 3. Vertical Alignment Item Unit Standard Absolute Maximum Remark Page 53,Table 16.1 DPWH Road Safety Max Vertical Gradient % 6 7 Deisgn Manual

Crest 〃 6.0 （ ）is recommended value Min.K value Sag 〃 9.0 （ ）is recommended value Page 636, DPWH Design Guidelines, Min. Vertical Curve Length 〃 60 Criteria and Standards Vol II

Max.Composition Grade % 11.5 4.Curve Radius and Pavement Width Radius (m) 15 25 30 50 75 100 125 150 Pavement Width (m) 6.0 5.6 5.5 5.3 5.2 5.2 5.1 5.1

CaseII, Condition A, p839 AASHTO 2004

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FIGURE 5.2.1-1 TYPICAL CROSS SECTION

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6) Crossfall Development

Superelevation of the carriageway shall be considered to accommodate recommendation of AASHTO 2004 as shown in Table 5.2.1-3. The maximum value of super elevation is 6.0% as guided in Road Safety Manual (2004) in page 53.

In principle, the super elevation is attained within spiral curve. The runoff rate of super elevation is considered 1/125 from Japan Road Association, Road Structure Ordinance, 2004.

TABLE 5.2.1-3 MINIMUM RADII FOR DESIGN SUPER ELEVATION RATES, EMAX = 6.0% Super elevation Minimum Radius (%) Design Speed = 40km/h Design Speed = 50km/h Design Speed = 60km/h 1.5 738 1050 1440 2.0 525 750 1030

2.2 465 668 919 2.4 415 599 825 2.6 372 540 746 2.8 334 488 676 3.0 300 443 615

3.2 269 402 561 3.4 239 364 511 3.6 206 329 465 3.8 177 294 422 4.0 155 261 380

4.2 136 234 343 4.4 121 210 311 4.6 108 190 283 4.8 97 172 258 5.0 88 156 235

5.2 79 142 214 5.4 71 128 195 5.6 63 115 176 5.8 56 102 156 6.0 43 79 123

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7) Minimum Curve length

The length of the spiral curve recommendation is to take for 2 seconds of the design speed by AASHTO 2004.

40km/h: Ld=11.1(m/s) x 2(sec)=22.2m(22m)

50km/h: Ld=13.9(m/s) x 2(sec)=27.8m(28m)

60km/h: Ld=16.7(m/s) x 2(sec)=33.3(33m)

We = 8000

The minimum length of spiral curve for runoff of the super elevation is calculated as shown in Table 5.2.1-4. This value is applied when it is larger than “Ld”. The design shortens spiral curve length where topographical and control condition is critical by allowing runoff till 2.0% at Ts points.

TABLE 5.2.1-4 MINIMUM SPIRAL CURVE LENGTH Radius Super elevation(%) We(m) e Ls e(min)* Ls(min)* Remark 92 6.00 8.0 0.480 60.000 0.320 40.000 50kmh 123 6.00 8.0 0.480 60.000 0.320 40.000 60kmh 190 5.60 8.0 0.448 56.000 0.288 36.000 60kmh 200 5.40 8.0 0.432 54.000 0.272 34.000 60kmh 250 4.60 8.0 0.368 46.000 0.208 26.000 60kmh 300 3.80 8.0 0.304 38.000 0.144 18.000 60kmh 500 2.80 8.0 0.224 28.000 0.064 8.000 60kmh * e(min) and Ls(min) is the value when runoff till 2.0%(same as crossfall) at Ts points * This value is only applied where topo and horizontal control condition is critical.

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8) Speed Change Lanes

The deceleration and acceleration length requirements are calculated based of AASHTO (2004) as shown in Table 5.2.1-5 and Table 5.2.1-6.

(a) Deceleration Lane Length and Acceleration Lane Length

TABLE 5.2.1-5 DECELERATION LENGTH L (meters) for Design Speed of Exit Curve, V’ (km/hr) Highway Speed Stop 20 30 40 50 60 70 80 Design Reached, Condition Speed, V Va For Average Running Speed on Exit Curve, V’a (km/hr) (km/hr) (km/hr) 0 20 28 35 42 51 63 70 50 47 75 70 60 45 - 60 55 95 90 80 65 55 - 70 63 110 105 95 85 70 55 - 80 70 130 125 115 100 90 80 55 - 90 77 145 140 135 120 110 100 75 60 100 85 170 165 155 145 135 120 100 85 110 91 180 180 170 160 150 140 120 105 120 98 200 195 185 175 170 155 140 120

Where: V =Design Speed of Tollway (km/hr) Va =Average Running Speed on Tollway (km/hr) V’ =Design Speed of Exit (km/hr) V’a=Average Running Speed on Exit Curve (km/hr)

TABLE 5.2.1-6 ACCELERATION LENGTH L (meters) for Entrance Curve Design Speed, V’ (km/hr) Highway Speed Stop 20 30 40 50 60 70 80 Design Reached, Condition Speed, V Va And Initial Speed, V’a (km/hr) (km/hr) (km/hr) 0 20 28 35 42 51 63 70 50 37 60 50 30 - - 60 45 95 80 65 45 - - 70 53 150 130 110 90 65 - - 80 60 200 180 165 145 115 65 - - 90 67 260 245 225 205 175 125 35 - 100 74 345 325 305 285 255 205 110 40 110 81 430 410 390 370 340 290 200 125 120 88 545 530 515 490 460 410 25 245

Where: V= Design Speed of Tollway (km/hr) Va= Average Running Speed on Tollway (km/hr) V’= Design Speed of Entrance Curve (km/hr) V’a=Initial Speed on Entrance Curve (km/hr)

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TABLE 5.2.1-7 (1) SPEED CHANGE LANE ADJUSTMENT FACTORS AS A FUNCTION OF GRADE Highway Design Speed, V Ratio of Length on Grade to Length on Level for Design Speed of (km/hr) Turning Curve (km/hr) All Speeds 3 to 4% Upgrade 3 to 4% Downgrade 0.90 1.20 All Speeds 5 to 6% Upgrade 5 to 6% Downgrade 0.80 1.35

TABLE 5.2.1-7 (2) S5PEED CHANGE LANE ADJUSTMENT FACTORS AS A FUNCTION OF GRADE Highway Design Ratio of Length on Grade to Length on Level for Design Speed of Turning Curve Speed, V (km/hr) (km/hr) 40 50 60 70 80 All Speeds 3 to 4% Upgrade 3 to 4% Downgrade 60 1.3 1.4 1.4 0.70 70 1.3 1.4 1.4 1.5 0.65 80 1.4 1.5 1.5 1.5 1.6 0.65 90 1.4 1.5 1.5 1.5 1.6 0.6 100 1.5 1.6 1.7 1.7 1.8 0.6 110 1.5 1.6 1.7 1.7 1.8 0.6 120 1.5 1.6 1.7 1.7 1.8 0.6 5 to 6% Upgrade 5 to 6% Downgrade 60 1.5 1.5 0.6 70 1.5 1.6 1.7 0.6 80 1.5 1.7 1.9 1.8 0.55 90 1.6 1.8 2.0 2.1 2.2 0.55 100 1.7 1.9 2.2 2.4 2.5 0.5 110 2.0 2.2 2.6 2.8 3.0 0.5 120 2.3 2.5 3.0 3.2 3.5 0.5

(b) Diverging Taper

*Vertical Gradient less than 3.0%

Diverging Taper

- 0.6m/s for through lane merge - 1.0m/s for acceleration lane merge

Design Speed 60 km/hr (16.67 m/s) Lane width 3.5m Diverging Taper 58m

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Minimum Deceleration and Acceleration Lanes

Deceleration lane

*Vertical Gradient less than 3.0%

Deceleration 65m Diverging Taper 58m

Minimum Deceleration lane = 123m

Acceleration lane

*Vertical Gradient less than 3.0%

Acceleration 45m Merging Taper 58m

Minimum Acceleration lane = 103m

9) Maximum Gradient

For the main expressway alignment with design speed of 60kmh, the maximum vertical gradient could be 7% by referring to Road Safety Manual (2004 DPWH), however, desirable max gradient is 5%.

For On and Off Ramps, the maximum gradient recommended is 6.0%, while absolute maximum gradient is 7.0%.

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5.2.2 Minimum Design Standards for Structure

1) Structure Design Standard

The Structure Design Standard shall be in accordance with the following codes and guidelines:  AASHTO Standard Specifications for Highway Bridges 17th edition 2002,  DESIGN Guidelines Criteria and Standard for Department of Public Works And Highways,  Basic Specifications – DPWH Standard Specifications 2004, Highways, Bridges and Airports  Alternatively, Japanese Standards also will be adopted as the structure design standards.

2) Loading Specifications

Structure shall be designed to carry the following loads and forces:

1)Dead Load

2)Live Load Live Load shall be MS18 (HS-20-44)

3)Impact Load I = 15.24/(L+38)

4)Sidewalk Live Load 4.07 KPa of sidewalk area

5)Earthquake Load A = 0.5g, Seismic Performance Category = D

6)Earth Pressure Coulomb’s Formula

7)Wind Load For the Superstructure design, 2,394Pa of wind load shall be applied horizontally at right angle to the longitudinal axis of girders and beams.

8)Thermal Forces The range of temperature shall be as follows: 17.8 °C to 48.9 °C 16.7 °C temperature rise 22.2 °C temperature fall

3) Seismic Design

Seismic Design shall be in accordance with AASHTO Standard Specifications Division I-A. Acceleration coefficient of 0.50g shall be adopted to consider importance classification and past/recent experience in the Philippines.

4) Materials

All materials to be used in the project shall conform to DPWH Standard Specifications (2004), and AASHTO Code.

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a) Concrete MAXIMUM SIZE MINIMUM DESCRIPTION fc’ (Min.) OF CONCRETE CONCRETE COVER MPa AGGREGATES (mm) (mm) a. Superstructure - Deck slabs, 28 20 Deck slab with BWS Diaphragms Top: 50 Bottom: 50 Others: 35 - Sidewalk, railings, 21 20 parapets, medians

- PSC I-Girders 38 20 PSC I-Girders: 35

b. Substructure - PC Pier copings, 28 20 Pier Copings, RC & columns, footings PSC: 50 - PSC Pier copings, 38 20 PSC Hammerheads: rotating pier head 40 - RC Abutment walls, 28 20 RC columns: 50 footings Footing and Bored - Bored piles 28 20 Piles: 75 Abutment Walls: 50

c. Earth covered RC 28 20 Earth covered Box Box structures structures: 50 d. Other concrete 21 20 (normal use) e. Lean concrete (for 17 25 leveling) f. Non shrink grout 41 40 b) Reinforcement Steel All pre-stressing steel shall be high strength stress relieved wires or strands with an ultimate stress, fs’=1860 MPa Pre-stressing steel shall be free from kinks, notches and other imperfections that will tend to weaken its strength or its bonding properties with concrete c) Pre-stressing All pre-stressing steel shall be high strength stress relieved wires or strands with an ultimate stress, fs’=1860 MPa. Pre-stressing steel shall be free from kinks, notches and other imperfections that will tend to weaken its strength or its bonding properties with concrete. d) Structural Steel All structural steel shall conform to the requirements of AASHTO or ASTM Designations as follows:

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i.Structural Steel Shapes - AASHTO M 270 (ASTM A 36) Gr 36 and (ASTM A572) Gr 50. ii.Steel Sheet Pile - AASHTO M 202 (ASTM A 328) iii.Bridge Bearing - AASHTO M 270 (ASTM A 36) AASHTO M 106 (ASTM B 100) AASHTO M 103 (ASTM A 27) (Copper Alloy Bearing Expansion Plates Grade 70 – 36 of Steel and Sheets) iv.Deck Drain - AASHTO M 105 (ASTM A 46) Class No. 30 (Gray Iron Casting) v.Bridge Railing - Sch. 40 Galvanized Steel Pipe e) Elastomeric Bearing Pads Elastomeric bearing pads shall be 100% virgin chlorophene (neoprene) pads with durometer hardness 60. Unless otherwise specified in the plans, bearing pads shall be laminated type bearing pads consisting of layer of elastomer, restrained at their interfaces by bonded laminations are required on the plans, laminated plate shall be non-corrosive mild steel sheet. f) Joint Filler Joint filler, hot poured elastic type, used for expansion joint shall conform to AASHTO M 213. g) Bituminous Wearing Course Bituminous wearing course to be used as surface overlay shall conform to the requirements of DPWH Standard Item 307 with minimum dry compressive strength of 1.4 MPa (200 pal). The wearing course may be used to adjust elevations on the vertical grade by varying the thickness from 50mm (min.) to 75mm (max).

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5.3 PRELIMINARY DESIGN OF PLAN AND PROFILE

5.3.1 Topographic Map Used

The horizontal control point was studied based on the same map as used in the feasibility study in 2010 by Filipinas Dravo Corporation in association with Philipp’s Technical Consultants Corp.

At grade road elevation along domestic road was re-surveyed by the JICA Study Team and this was integrated in the previous topographic survey result.

Cross sectional survey along Domestic Road and elevation survey of existing pedestrian bridges were also conducted by the JICA Study Team and reflected in the preliminary design.

5.3.2 Horizontal Alignment Study

(a) Sta. 0+000 to Sta.0+700

 The main alignment is connected with the end of Phase I. The beginning point of alignment is at the edge of the existing bridge. The elevation of the beginning points is set as same as FS in 2010.  Available ROW in Sales Avenue is approximately 19.0m to 19.5m.  The outer shoulder of the main alignment is, therefore, reduced from 1.5m to 0.5m (total width 18.0m) in order not to affect the Air Force Head Quarter property(Sta.0+000 to Sta.0+700).  The main alignment was offset so as not to affect the existing off ramp bridge.  R=92m is employed in order to connect ON ramp from terminal 3 towards Skyway (Andrew’s Avenue ON Ramp(1)) without affecting the air force museum building. The design speed of this section is 50kph due to existing off-ramp constructed under Phase I.

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Air Force Museum

FIGURE 5.3.2-1 Sta.0+000 TO Sta.0+700

FIGURE 5.3.2-2 CROSS SECTION AT EXISTING OFF RAMP SECTION

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(b) Sta.0+700 to Sta.1+500

 The main alignment basically follows at-grade road centre line.  Existing R.O.W limit of Marriot Hotel side (north side of Andrews Ave.) is set as control point.  Andrew’s ON Ramp (2) is designed within existing R.O.W.  The toll gate is designed to be set in tangent section of the main alignment.

Parking of MIAA

Marriot Hotel

FIGURE 5.3.2-3 Sta.0+700 TO Sta.1+500

(c) Sta.1+500 to Sta.2+000 (MMDA Landmark)

 The alignment is selected to avoid traversing over the Landmark at Circulo del Mundo (under construction).  Existing Electrical Transformer Station for MIAA and private houses on the other side of the road are considered as control points of the horizontal alignment design.  These houses were already relocated before, so the Government of Pasay City strongly requested to avoid affecting these houses.  The off ramp to Terminal 3 (Andrew’s Avenue OFF Ramp) has also been designed without affecting abovementioned facilities.

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Landmark at Circulo OFF Ramp del Mundo (under construction)

Sub Station

Private houses

FIGURE 5.3.2-4 Sta.1+500 TO Sta.2+000 (MMDA LANDMARK)

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FIGURE 5.3.2-5 LANDMARK AT CIRCULO DEL MUNDO

FIGURE 5.3.2-6 PERSPECTIVE VIEW OF LANDMARK AND RECOMMENDED EXPRESSWAY ALIGNMENT

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FIGURE 5.3.2-7 ELECTRICAL SUB-STATION FOR MIAA

(d) Sta.2+000 to Sta.2+800

 The main alignment basically follows the existing at-grade road alignment (Andrews Avenue).  The main alignment is adjusted to avoid acquisition of land.

FIGURE 5.3.2-8 Sta.2+000 TO Sta.2+800

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(e) Sta.2+800 to Sta.3+300 (LRT Depot)

 The previous FS alignment was designed along the existing road (R = 125m).  Since the vertical alignment shall be an up-and-down grade in short distance due to navigational clearance, the horizontal alignment is highly recommended to accommodate higher standard of geometry.  The alignment was reviewed to accommodate with larger (R = 190m) radius by using some LRTA property.  At the Domestic Road, the building of PAL DATA CENTER is considered as the control point (fronted at-grade road is critical).  This section needs to consider the navigational height limit of NAIA.  Pump station in MIAA property is one of the control points for profile design and pier layout. (Detail survey is necessary to identify associated facilities such as underground pipes for profile design and pier layout.)  Several private buildings and airport facilities need to be relocated.

LRTA property

FIGURE 5.3.2-9 Sta.2+800 to Sta.3+300 (LRT DEPOT)

(f) Sta.3+300 to Sta.3+950 (Domestic Road)

 Due to NAIA navigational height limit, this section requires ROW acquisition to accommodate 6-lane at-grade road.  In order to minimize the land acquisition, the outer shoulder of the expressway is reduced from 1.5m to 0.5m from Sta.3+300 to Sta.3+600.  At-grade road was planned to maintain access to the abutting facility along the road.

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 PAL DATA CENTER, CEBU PACIFIC OPERATION CENTER and Salem Complex building are considered as control point to avoid demolition of large scale buildings.  The expressway alignment crosses post office land and vacant land owned by MIAA to avoid Park’n Fly building.

FIGURE 5.3.2-10 Sta.3+300 TO Sta.3+950 (DOMESTIC ROAD)

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(g) Sta.3+950 to Sta.4+500 (Park ‘n Fly and Paranaque River)

 The Park’n Fly Building and existing Paranaque River Bridge are set as control points for horizontal alignment design.  Since the expressway over the existing Paranaque river bridge will require 80m-long span bridge, the main alignment is designed to be tangent (or spiral curve) as much as possible.

FIGURE 5.3.2-11 Sta.3+950 TO Sta.4+500 (PARK ‘N FLY AND PARANAQUE RIVER)

(h) Sta.4+500 to Sta.4+913 (NIAA Road to Roxas Blvd)

 The main alignment is selected to follow the existing median of at-grade road in order to maintain same existing number of lanes without land acquisition, even after completion of the expressway. (See Figure 5.3.2-13)

FIGURE 5.3.2-12 Sta.4+500 to Sta.4+913 (NAIA ROAD TO ROXAS BLVD)

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FIGURE 5.3.2-13 CROSS SECTION OF NAIA ROAD

5.3.3 Vertical Alignment Study

1) Vertical Height Requirement by Structure Type for Vertical Alignment Planning

For the planning of vertical alignment of the expressway, vertical height requirements by type of structure were studied as shown in Figure 5.3.3-1.

2) Vertical Control Points

Vertical control points are shown in Table 5.3.3-1.

TABLE 5.3.3-1 VERTICAL CONTROL POINTS Station Control Point Remark 0+000 Beginning Point Maintain FS 2010 1+700 MMDA Monument 2+384.5 Pedestrian Bridge EL=10.53(Floor level) 2+550 Intersection with Aurora Blvd Intersection 2+819.5 Navigational Clearance No.1 (see Table 5.3.3-2) 2+938.4 Navigational Clearance No.2 (see Table 5.3.3-2) 3+090 Intersection with Airport Road Intersection 3+170 Intersection with Domestic Road Intersection 3+092.8 Navigational Clearance No.3 (see Table 5.3.3-2) 3+140 Navigational Clearance No.4 (see Table 5.3.3-2) 3+330.8 Navigational Clearance No.5 (see Table 5.3.3-2) 3+448.8 Navigational Clearance No.6 (see Table 5.3.3-2) 4+450 Existing bridge of Paranaque River 4+622 B-D Ramp of Roxas Interchange Pedestrian Overpass Bridge 4+825 A-C ramp of Roxas Interchange Pedestrian Overpass Bridge

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Type Name PC-1 Type Name PC-2 Bridge Type Superstructure PC Girder Bridge Type Superstructure PC Girder Bridge Type Superstructure Substructure Single Column Pier Substructure Multi Column Pier Substructure Standard Type Standard Type at Curve Navigation Clearance

No Item Value Note No Item Value Note No Item Value Note 1 Ground Level Varies 1 Ground Level Varies 1 Ground Level Varies 2 Clearance(1) 5.00 2 Clearance(1) 5.00 2 Clearance(1) 3 Coping Beam 3.00 3 Coping Beam 3.00 3 Coping Beam 0.00 4 Pavement 0.08 4 Pavement 0.08 4 Pavement 0.00 5 Bridge girder 1.60 5 Bridge girder 1.60 5 Bridge girder 0.00 6 Bridge slab 0.25 6 Bridge slab 0.25 6 Bridge slab 0.00 7 Cross Fall 0.60 10mx6%(max) 7 Cross Fall 0.60 10mx6%(max) 7 Cross Fall 0.00 8 Total 10.53 8 Total 10.53 8 Total

Type Name MT-1 Type Name MT-2 Type Name MT-3 Bridge Type Superstructure Steel Box Girder Bridge Type Superstructure Steel Box Girder Bridge Type Superstructure Metal I Girder Substructure Single Column Pier Substructure Multi Column Pier Substructure Metal Box Pier Standard Type at Curve Standard Type at Curve Standard Type

No Item Value Note No Item Value Note No Item Value Note 1 Ground Level Varies 1 Ground Level Varies 1 Ground Level Varies 2 Clearance(1) 5.00 2 Clearance(1) 5.00 2 Clearance(1) 5.00 3 Coping Beam 2.50 3 Coping Beam 3.00 3 Coping Beam 0.75 4 Pavement 0.08 4 Pavement 0.08 4 Pavement 0.08 5 Bridge girder 2.50 5 Bridge girder 2.50 5 Bridge girder 0.00 6 Bridge slab 0.25 6 Bridge slab 0.25 6 Bridge slab 0.25 7 Cross Fall 0.60 10mx6%(max) 7 Cross Fall 0.60 10mx6%(max) 7 Cross Fall 0.00 8 Total 10.93 8 Total 11.43 8 Total 6.08

FIGURE 5.3.3-1 VERTICAL HEIGHT REQUIREMENT

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3) Vertical Clearance Verification against NAIA Navigational Height Limit

The NAIA navigational height limit is calculated at six (6) points at the center of the road as shown in Figure 5.3.3-2. The vertical clearance is planned to be 5.0m for each of the expressway and the at-grade road. Clearance is verified at the road center elevation as shown in Table 5.3.3-2.

TABLE 5.3.3-2 VERIFICATION OF NAVIGATIONAL HEIGHT LIMIT Height Height Vertical Remaining Distance from GL of Elevation of Slope I Requirement Limit Clearance Net No Sta Runway End Runwa Expressway (2%) from end of Elevation for At-grade Clearance (m) y (m) (m) from Mean Runway Road (m) (m) 1 2+819.5 580.9961456 0.02 11.620 3.000 14.620 8.818 5.00 0.80 2 2+938.4 659.8962553 0.02 13.198 3.000 16.198 9.658 5.00 1.54 3 3+092.8 666.4735739 0.02 13.329 3.000 16.329 10.866 5.00 0.46 4 3+140 644.1480343 0.02 12.883 3.000 15.883 10.772 5.00 0.11 5 3+330.8 489.7937027 0.02 9.796 3.000 12.796 7.684 5.00 0.11 6 3+448.8 387.1335765 0.02 7.743 3.000 10.743 5.466 5.00 0.28

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FIGURE 5.3.3-2 NAVIGATIONAL CLEARANCE VERIFIED POINTS

4) Main Alignment Profile

Figure 5.3.3-3 illustrates the type of bridges along NAIA Expressway 2 used for planning of profile. Profile of the main expressway is shown in the Drawing Volume.

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FIGURE 5.3.3-3 TYPE OF BRIDGE FOR MAIN ALIGNMENT BRIDGE FOR MAIN TYPE OF FIGURE 5.3.3-3

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5.3.4 Preliminary Design of Ramp Terminal

5) Ramp layout

Ramp layout of NAIA Expressway Phase II is shown in Figure 5.3.4-1.

FIGURE 5.3.4-1 SCHEMATIC NAIAX RAMP LAYOUT

6) Design Approach

Ramp terminal is designed to provide smooth, safe flow of the ingress and egress traffic on the expressway. On the other hand the design considered to minimize the land acquisition where the ramp terminal will be constructed. The major design approach is described hereafter.

a) Ramp Terminal Type

In order to minimize land acquisition area and considering that all expressway sections are elevated structure, parallel type is chosen for ramp terminal design. The minimum length required for acceleration and deceleration lane is shown in Chapter 5.2.1.

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TABLE 5.3.4-1 RAMP TERMINAL TYPE Terminal Type Taper Type Parallel Type Schematic Image

Remark Applied in the design b) Geometry of main alignment at ramp terminal

The ramp terminal should be easily recognized by drivers from sufficiently away from the ramp terminal and should provide smooth and safe flow of ramp traffic. In this context, geometric condition of the main alignment at ramp terminal is important. Table 5.3.4-2 shows the recommended geometry at ramp terminal by Japan Road Association, Road Structure Ordinance, 2004.

TABLE 5.3.4-2 RECOMMENDED MAIN ALIGNMENT GEOMETRY AT RAMP TERMINAL (V = 60KMH) Recommended Absolute Value Horizontal Curve Radius 500m 350m Vertical Gradient 4.50% 5.50% Minimum VCL(at crest) 6,000 3,000 (at sag) 4,000 2,000

However, the main alignment of the expressway is greatly restricted by the available ROW. The ramp terminal is located at the curve less than R = 300m. Basically, consideration of safe traffic flow of ramp terminal is very important in this respect.

On the other hand it is not economical and practical to fully set the main alignment by this recommendation. Therefore, to install marginal length between end of sharp curve and beginning of speed change lane is considered to design the ramp terminal in order to provide safe and smooth traffic flow.

FIGURE 5.3.4-2 RAMP TERMINAL SPEED CHANGE LANE DESIGN

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7) Andrews Avenue ON Ramp (1) (to Skyway)

Andrews Avenue ON Ramp (1) is to provide access to the expressway for the traffic from Andrews Avenue and Terminal 3 (Arrival and Departure) to Skyway. The ramp alignment is set to avoid MIAA property (fence is considered as the control point). For connecting main alignment, the ramp acceleration lane requires air force property (approximately 4m in width).

Toll gate equipped with three (3) toll booths is designed at grade road level. Vertical clearance of 5.0m is considered under the ramp bridge for the air force access road.

Air Force Property

Fence (MIAA)

FIGURE 5.3.4-3 ANDREWS AVENUE ON RAMP (1)

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8) Andrews Avenue ON Ramp (2) (to Roxas Blvd)

Andrews Avenue ON Ramp (2) is to provide access to the expressway for the traffic from Andrews avenue and Terminal 3 to Roxas Blvd. and Manila-Cavite Coastal Expressway.

This ramp alignment is parallel to the main alignment. The existing ROW is considered as control point.

Vertical clearance of 5.0m is considered under the ramp bridge for the access to Marriot Hotel. The ramp toll booth is integrated in the main alignment toll barrier.

Marriot Hotel Existing ROW

FIGURE 5.3.4-4 ANDREWS AVENUE ON RAMP (2)

9) Andrews Avenue OFF Ramp

Andrew Avenue OFF Ramp is to provide access to Terminal 3 of Ninoy Aquino International Airport for the traffic from Roxas Blvd. and Manila-Cavite Coastal Expressway.

This ramp alignment has strict constrain with Power Sub-station of MIAA and Main Alignment set to avoid land acquisition to the houses along the road. (These are the control points.) (see Figure 5.3.4-5).

Vertical clearance of 5.0m is considered under the ramp bridge for the access road to the airport.

One toll gate equipped with three (3) ramp toll booths is designed on the elevated bridge level near the nose of the ramp due to restriction of available land at-grade level.

Deceleration length and taper to the toll gate is designed as shown in Figure 5.3.4-6.

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LANE LAYOUT RAMP OFF AVENUE ANDREWS FIGURE 5.3.4-6

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To Terminal 3

Access Road to airport

Sub Station of MIAA

Houses already relocated (Requested highest consideration)

FIGURE 5.3.4-5 ANDREWS AVENUE OFF RAMP

10) Domestic Road OFF Ramp (1)and (2) (to Terminal 1 and 2)

Domestic Road OFF Ramp is to provide access to Terminal 1 and 2 of NAIA for the traffic from Skyway (and Andrews Avenue).

This ramp alignment has strict constrain with Park’n Fly Building and to minimize land acquisition.

The ramp alignment flyovers the main alignment and vertical clearance of 5.0m is considered between them.

The alignment of ramp is set in the median of existing at-grade road.

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Park’n Fly

Domestic Road OFF Ramp (1) and (2)

FIGURE 5.3.4-7 DOMESTIC ROAD OFF RAMP (1) AND (2)

To Terminal 2

To Terminal 1

FIGURE 5.3.4-8 NAIA ROAD OFF RAMP (1) AND (2) (CONTINUE)

11) NAIA Road ON Ramp

NAIA Road ON Ramp is to provide access to the expressway from Terminal 1 and 2 of NAIA.

This ramp alignment has strict constrain with buildings in MIAA land and to minimize land acquisition.

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The alignment of ramp is set at the shoulder or sidewalk space in the at-grade road to maintain number of lanes of the at-grade road.

One existing pedestrian bridge is required to be relocated to another location within the intersection.

Relocation of Pedestrian Bridge

Building in MIAA

Building in MIAA

FIGURE 5.3.4-9 NAIA ROAD ON RAMP

12) Ramps At End of the Expressway a) Ramp Layout

Ramp layout is shown in Figure 5.3.4-10.

Ramp C Ramp B

Ramp D

Ramp A

FIGURE 5.3.4-10 RAMP LAYOUT AT END OF EXPRESSWAY

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b) Technical approach of each ramp

The horizontal control points considered for the design of the ramp alignment is described below;  Ramp A and B a) The A Ramp alignment is set in the median of existing road so as to not affect the access to existing condominium building and bus terminal function along the road. b) The B Ramp alignment design consideration is to avoid acquisition of the land along Roxas Boulevard as well as not to affect to the LTR1 Extension and public water supply line at the shoulder. c) The alignment considered bridge pier location to maintain smooth traffic at-grade road. d) The existing pedestrian bridge is to be maintained without demolition. e) The vertical clearance from C Ramp (under the B ramp) is 5.0 m minimum.

Condominiums Pedestrian Br

Public water supply

LRT1 Extension

FIGURE 5.3.4-11 HORIZONTAL CONTROL POINTS OF A AND B RAMP

 Ramp C and D a) The C Ramp alignment is set in the median of existing at-grade road to avoid affecting the LRT1 extension and under ground water supply line. b) The D Ramp alignment is set in the existing ROW. c) KFC restaurant is considered as control point of horizontal alignment to avoid relocation for D Ramp. d) The existing pedestrian bridge is to be maintained.

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KFC

Pedestrian Br

Water supply under ground pipe

Existing ROW

FIGURE 5.3.4-12 HORIZONTAL CONTROL POINTS OF C AND D RAMP c) Ramp terminal cross sectional configuration

Ramp terminal cross sectional configuration is shown in Figure 5.3.4-13. Accordingly diverge taper is calculated as below;

Taper [email protected]/s lateral shift (V=60km/s) w=3.5m

L=3.5x16.67 (m/s)=58.3 m 58.0m

5-41

CONFIGURATION CROSS SECTIONAL TERMINAL FIGURE 5.3.4-13 RAMP

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5.3.5 Preliminary Design of At-Grade Roads

1) Number of traffic lanes to be maintained after construction

At least the same number of traffic lanes of at-grade road shall be maintained even after the construction of expressway.

The carriageway width may be reduced to a minimum 3.0 m.

TABLE 5.3.5-1 NUMBER OF LANES TO BE MAINTAINED Before construction After construction Sales Avenue 2 + 3 = 5 3 + 3 = 6 Andrews Avenue 3 + 3 = 6 3 + 3 = 6 Domestic Road 3 + 3 = 6 3 + 3 = 6 NAIA Road 4 + 4 = 8 4 + 4 = 8 (at Paranaque Bridge) NAIA Road 3 + 4 = 7 3 + 4 = 7 (Bridge to Roxas Blvd)

2) Preliminary Design of At-Grade Road

Preliminary design of Andrews Avenue, Domestic Road and Roxas Boulevard is shown in Figure 5.3.5-1 to Figure 5.3.5-4

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FIGURE 5.3.5-1 AT-GRADE ROAD PLAN (ANDREWS AVENUE)

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FIGURE 5.3.5-2 AT-GRADE ROAD PLAN (ANDREWS AVENUE NEAR MMDA LANDMARK)

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FIGURE 5.3.5-3 AT-GRADE ROAD PLAN (DOMESTIC ROAD)

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FIGURE 5.3.5-4 AT-GRADE ROAD PLAN (ROXAS BOULEVARD-1) ROAD PLAN (ROXAS BOULEVARD-1) AT-GRADE FIGURE 5.3.5-4

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FIGURE 5.3.5-4 AT-GRADE ROAD PLAN (ROXAS BOULEVARD-2) ROAD PLAN (ROXAS BOULEVARD-2) AT-GRADE FIGURE 5.3.5-4

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5.4 STRUCTURE TYPE STUDY

5.4.1 General

The general features of these structures are as follows:

1) AASHTO Girder As the standard bridge type, AASHTO Girder – pre-stressed concrete I-section girder was adopted, because it is the most economical and widely used in the Philippines (many suppliers and local productions exist in the Philippines). And the erection is not affecting to the underneath traffic and consideration of transportation ease.

To apply the span ranged from 30 to 35 m length (pier center to center length) was determined by the cost comparison.

2) Single Column with Cantilevered Pier Head Single column with cantilevered pier head constructed by adopting the rotating method was considered to minimize the working area and period.

3) Pile Foundation According to the soil investigation result of the previous study (feasibility study in Year 2010), the assumed bearing strata exists 1.0m to 10.0m depth from the existing ground level. Although spread footing type of foundation can be adoptable, pile foundation was selected in consideration of traffic management during construction.

4) Pile Bent-up Type Pier Single column type of with single large diameter pile pier for main expressway was not used in this study. This type was only used for multi column piers and ramp piers. The type should be determined by more detailed analysis and calculation with accurate data.

5) Steel Girder and Pier Steel girder was adopted at long span section – 40m or longer, curved section and the height limited section. For high piers with over 20m in height from ground level and those of complex type, steel piers were adopted.

6) Bridge Approach Mechanically Stabilized Earth Retaining Wall (MSE Wall) was adopted at the bridge approach, since it could be constructed in narrow working space with reasonable cost, and good aesthetic.

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5.4.2 Bridge Type at Individual Section

Based on the above consideration, bridge types were proposed. The types of bridges are shown in Figure 5.4.2-1.

The individual features are described in Table 5.4.2-1 and 5.4.2-2, and the cross sections are shown in Figure 5.4.2-2.

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FIGURE 5.4.2-1 INDEX MAP FOR BRIDGE TYPE

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TABLE 5.4.2-1 BRIDGE FEATURES AT EACH LOCATION TYPE No. Location Features Figure No. (see Figure 5.4.2-2) Main Carriageway 1 Sales Street - AASHTO girder type IV and multi column (2 column) 1, 2 type with rectangular section pier was determined following to the piers of Phase-I, - 3 lane carriageway per each bound underneath the viaduct were considered to arrange the column location. 2 Sales St. Steel box girder in consideration of the curve 3 – Andrew Ave. configuration and concrete hammerhead & single column (circular section) type pier was adopted. 3 Andrew - At general section: AASHTO girder type V and concrete 4, 5, 6, 7, 8, Avenue hammerhead & single column (circular section) type 9, 10, 11, 12, pier was adopted, 13, 14, 15, - At toll barrier section: AASHTO girder type V and 16 concrete multi column (3 column) type pier was adopted, - At MMDA Monument section: it shall be followed the required long span and curve alignment, continuous steel box girder and concrete multi column type pier was mainly determined, - At Aurora Boulevard intersection: to consider the future operation of the road, 50m span by steel box girder was determined, - At limited navigation clearance section: Steel I-girder and steel pier (rigid frame type) was determined in consideration of the maximum superstructure depth of 1.0m. 4 Andrew Ave. - Steel box girder in consideration of the curve 17 – Domestic Rd. configuration and concrete hammerhead & single column (circular section) type pier was adopted. 5 Domestic Road - At limited navigation clearance section: Steel I-girder 18, 19, 20, and steel pier (rigid frame type), and prestressed 21 concrete hollow slab and concrete multi column (2 column) were determined to adopt, - At Ramps to/from NAIA Terminal 1 & 2 transition section: AASHTO girder type V and concrete multi column type pier was adopted. 6 Domestic Rd. - Steel box girder in consideration of the curve 22 – NAIA Rd. configuration and concrete hammerhead & single column (circular section) type pier was adopted. 7 NAIA Road - At Ramp transition section: AASHTO girder type V and 23, 24 concrete multi column type pier was adopted.

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FIGURE 5.4.2-2 (1/12) CROSS SECTION 5-53

FIGURE 5.4.2-2 (2/12) CROSS SECTION 5-54

FIGURE 5.4.2-2 (3/12) CROSS SECTION 5-55

FIGURE 5.4.2-2 (4/12) CROSS SECTION 5-56

FIGURE 5.4.2-2 (5/12) CROSS SECTION 5-57

FIGURE 5.4.2-2 (6/12) CROSS SECTION 5-58

FIGURE 5.4.2-2 (7/12) CROSS SECTION 5-59

FIGURE 5.4.2-2 (8/12) CROSS SECTION 5-60

FIGURE 5.4.2-2 (9/12) CROSS SECTION 5-61

FIGURE 5.4.2-2 (10/12) CROSS SECTION 5-62

FIGURE 5.4.2-2 (11/12) CROSS SECTION 5-63

FIGURE 5.4.2-2 (12/12) CROSS SECTION 5-64

TABLE 5.4.2-2 BRIDGE TYPE: RAMP No. Location Features Figure No. (see Figure 5.4.2-2) Main Carriageway 1 Sales Street - AASHTO girder type IV and multi column (2 column) 1, 2 type with rectangular section pier was determined following to the piers of Phase-I, - 3 lane carriageway per each bound underneath the viaduct were considered to arrange the column location. 2 Sales St. Steel box girder in consideration of the curve 3 – Andrew Ave. configuration and concrete hammerhead & single column (circular section) type pier was adopted. 3 Andrew - At general section: AASHTO girder type V and concrete 4, 5, 6, 7, 8, Avenue hammerhead & single column (circular section) type 9, 10, 11, 12, pier was adopted, 13, 14, 15, - At toll barrier section: AASHTO girder type V and 16 concrete multi column (3 column) type pier was adopted, - At MMDA Monument section: it shall be followed the required long span and curve alignment, continuous steel box girder and concrete multi column type pier was mainly determined, - At Aurora Boulevard intersection: to consider the future operation of the road, 50m span by steel box girder was determined, - At limited navigation clearance section: Steel I-girder and steel pier (rigid frame type) was determined in consideration of the maximum superstructure depth of 1.0m. 4 Andrew Ave. - Steel box girder in consideration of the curve 17 – Domestic Rd. configuration and concrete hammerhead & single column (circular section) type pier was adopted. 5 Domestic Road - At limited navigation clearance section: Steel I-girder 18, 19, 20, and steel pier (rigid frame type), and prestressed 21 concrete hollow slab and concrete multi column (2 column) were determined to adopt, - At Ramps to/from NAIA Terminal 1 & 2 transition section: AASHTO girder type V and concrete multi column type pier was adopted. 6 Domestic Rd. - Steel box girder in consideration of the curve 22 – NAIA Rd. configuration and concrete hammerhead & single column (circular section) type pier was adopted. 7 NAIA Road - At Ramp transition section: AASHTO girder type V and 23, 24 concrete multi column type pier was adopted.

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FIGURE 5.4.2-3 (1/4) RAMP CROSS SECTION 5-66

FIGURE 5.4.2-3 (2/4) RAMP CROSS SECTION 5-67

FIGURE 5.4.2-3 (3/4) RAMP CROSS SECTION 5-68

FIGURE 5.4.2-4 (4/4) CROSS SECTION 5-69

5.5 PRELIMINARY DESIGN OF PAVEMENT STRUCTURE

The pavement design includes restoration of pavement structures affected by construction of expressway foundation and drainage.

The existing at-grade road pavement (PCCP with AC overlay) affected will be replaced by the same pavement structure.

For the elevated structure, 8 cm thickness of the AC pavement is considered on the concrete slab.

5.6 PRELIMINARY DESIGN OF DRAINAGE

Basic concept to drainage design is shown below; 1. The drainage design shall be carried out to collect water efficiently and discharge it without aggravating present flood situation. 2. The water flow in accordance with runoff of bridge surface and collect at the drop in let normally installed every column. 3. From downspout end the collected water shall be discharged to the existing drainage line at the side of the road. 4. In case, the existing drainage is not effecting or insufficient capacity, a new line or improvement of the drainage line shall be considered.

5.7 TOLL BARRIER AND TOLL BOOTH

5.7.1 Toll Booth Layout

The number of toll booth of each ramp terminal is shown in Table 5.7.1-1.

TABLE 5.7.1-1 NUMBER OF TOLL BOOTH No Ramp name Number of Toll Booth 1 Andrews Avenue On Ramp(1) 3 2 Andrews Avenue OFF Ramp 3 3 Toll gate from Skyway 7 4 Toll gate from Roxas 5 5 Andrews Avenue OFF Ramp(existing) 3

 One toll gate booth is composed of one (1) maxi-booth equipped with toilet. The size is set by referring to the Phase I toll gate. (Figure 5.7.1-1)  Concrete pavement is designed at the length of 25m for each approach and departure zone side.  Minimum interval of each booth is 3.0m for passenger car carriage way.  Minimum interval for truck is 3.5m.  The vertical grade at toll gate is recommended less than 2.0% and absolute value is 3.0%(Highway design manual, NEXCO, Japan) for the minimum length of 50m. The vertical curve radius is recommended more than 700m at the toll gate. This standard has been considered, however, due to restriction of R.O.W and at-grade road condition, some elements of this requirement may not be accommodated.

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 With recommendation from TRB (Toll Regulation Board), the minimum distance from the centre of the toll booth to the approach zone taper is 30m which allows 5 cars waiting for fee collection control.

FIGURE 5.7.1-1 LAYOUT OF TOLL BOOTH (PHASE I)

Minimum 30m

FIGURE 5.7.1-2 LAYOUT OF TOLL BOOTH (TOLL BARRIER)

5.7.2 Toll Barrier Layout

Toll barrier with 10 booths is designed at Andrew’s Avenue. This toll barrier is integrated with an on ramp from Andrews Avenue towards Roxas Blvd (2 booths). The total number of tool booths shall be 12.

The size and interval of booths are the same as described Section 5.7.1. 5-71

Taper of the approach and the departure zone is designed with a 1:3 tangent slope.

FIGURE 5.7.2-1 LAYOUT OF TOLL BARRIER

5.8 ROW REQUIREMENT BASED ON PRELIMINARY DESIGN

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FIGURE 5.8-1 (1/10) ROW REQUIREMENT

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FIGURE 5.8-1 (2/10) ROW REQUIREMENT

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FIGURE 5.8-1 (3/10) ROW REQUIREMENT

5-75

FIGURE 5.8-1 (4/10) ROW REQUIREMENT

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FIGURE 5.8-1 (5/10) ROW REQUIREMENT

5-77

FIGURE 5.8-1 (6/10) ROW REQUIREMENT

5-78

FIGURE 5.8-1 (7/10) ROW REQUIREMENT

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FIGURE 5.8-1 (8/10) ROW REQUIREMENT

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FIGURE 5.8-1 (9/10) ROW REQUIREMENT

5-81

FIGURE 5.8-1 (10/10) ROW REQUIREMENT

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5.9 RISKS

Risks allocation matrix and how these risks are incorporated in the Draft Toll Concession Agreement are summarized in Table 5.9-1.

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TABLE 5.9-1 RISK ALLOCATION MATRIX Note: Section numbers refer to those in the Draft Concession Agreement. Nature of Risk Government (DPWH) Private Sector (Concessionaire) Financial risks *Government counterpart financing. DPWH is responsible and *Project financing. The Concessionaire is responsible and bears the risk for bears the risks for financing the following counterpart costs: Financing of the Project, covering the cost of DED, Construction, O&M, and (a) cost of the Basic Right-of-Way (ROW), (b) Government Additional ROW - net of the Government counterpart financing (for the Basic Financial Support (GFS) for Construction, (c) ½ of the fee of ROW, GFS, ½ of fee of IC, and technical supervision expenses). (Sec. 6.(a)). the Project Consultant (PC), and (d) expenses for DPWH technical supervision of the Project. (Sec. 5.0, 9.4 and 9.5). Major risks;  Overrun in costs of DED, Construction, and Additional ROW. Major risks:  Extraordinary inflation and forex fluctuation.  Understated Basic ROW prices.  Failure to provide adequate GFS on time – Ground for *Financing Agreements. The Concessionaire may enter into agreements with Default and Termination Financiers/ Lenders for the Financing of the Project as it may deem desirable  Extraordinary inflation and forex fluctuation. or necessary (Sec. 9.2).

Major risks:  Delay in meeting Financiers’ pre-requisites.

5-84 *Financial closure. The Concessionaire shall achieve financial closure not later than 12 months after the signing of the Agreement, with the following evidence: (a) Concessionaire’s Shareholders Agreement and receipt of payment of shareholders (equity), (b) Project Financing Agreements with Financiers/ Lenders (Sec. 9.3).

Major risk:  Failure to submit complete Shareholders Agreements and financing Agreements as evidence of Financial Closure within the 12-month period –Ground for Default and Termination. ROW risks *Responsibility for Basic ROW. DPWH is responsible and * Responsibility for Additional ROW. The Concessionaire shall be bear the risks for the acquisition and delivery to the responsible and bear the risks, at its sole cost, for the acquisition of Concessionaire of the Basic ROW, clear of any liens and Additional ROW which it needs, aside from the Basic ROW to be provided obstructions, not later than 6 months after the signing of the by DPWH (Sec. 11.2). Agreement. This includes the relocation of informal settlers

Nature of Risk Government (DPWH) Private Sector (Concessionaire) and other occupants, removal/relocation of utilities, removal of Major risks: obstacles, and settlement of third party claims (Sec. 5.0(b),  Substantial area and cost of Additional ROW to be acquired. 11.1 and 18.3).  Delay in the acquisition of Additional ROW.

Major risks:  Non-delivery, incomplete delivery or late delivery of Basic ROW – Ground for Default and Termination  Resistance of informal settlers for removal and relocation.  Uncertain conditions and costs of underground utilities to be removed/relocated.  Increased Basic ROW costs. Design risks *Minimum Expressway Configuration. DPWH shall be *Preparation and submission of DED. The Concessionaire is responsible and responsible and bear the risks, including cost consequences, for bear the risks for the preparation - by itself or its designated Designer – of the any changes that it will introduce, after the bidding, in the DED of the Project in accordance with the MPSS for Design, and for the Minimum Performance Standards and Specifications (MPSS) submission of the DED to DPWH - certified by the PC - within 10 months including the Minimum Expressway Configuration (Sec. after the signing of the Agreement (Sec. 6.0(e) and 18.2(a)). 12.1(c)). 5-85 Major risks: Major risks:  Inadequate geotechnical and other engineering investigations.  Changes, after bidding, in the Minimum Expressway  Requests of LGUs for additional/relocation of ramps/facilities. Configuration, e.g., alignment and location of (i) main  Over-design with resulting high construction cost. expressway, (ii) roundabout/Circulo del Mundo, (iii)  Under-design resulting in early deterioration, higher maintenance, and NAIA height limitation section, (iv) alignment at Domestic lower level of service. Rd/MIA Rd., (v) ramps.  Difficulty/delay in securing a new ECC if DED differs significantly from  Difficulties/delay in getting clearance/consultation from the original configuration covered by existing ECC. entities concerned – MMDA, MIAA, CAAP, LRTA,  Failure to submit compliant, PC-certified DED within the 10-month LGUs, general public. period – Ground for Default and Termination.  Change in toll collection system from open to closed system. *Undiminished responsibility for DED integrity. DPWH’s approval of the DED shall not diminish the responsibility of the Concessionaire for the *Approval/action on DED. DPWH shall approve/act on the integrity of the DED, or transfer any part of such responsibility to DPWH Concessionaire’s Detailed Engineering Design (DED), certified (Sec. 12.2(d)). by the PC, within 15 days after its submission (Sec. 5.0c, 12.2, and 18.3).

Nature of Risk Government (DPWH) Private Sector (Concessionaire) Major risks: Major risks:  Design error, affecting the structural integrity.  Failure to approve/take action on the PC-certified DED on  Delayed submission of compliant DED time – Ground for Default and Termination.  Changes in MPSS after submission of DED.  DPWH-initiated changes in design, e.g., new/relocation of ramps, realignment, after submission of DED. Construction *Technical supervision. DPWH is responsible for technical *Responsibility for Construction. The Concessionaire is responsible and bear and completion supervision and monitoring of the Construction undertaken by the risks for the Construction of the Facility - by itself or its designated risks the Concessionaire (Sec. 13.5). Contractor - in accordance with the Concessionaire’s DED as approved by DPWH, and in conformance with the MPSS for Construction, which shall be Major risks: completed not later than 24 months after the Notice to Proceed to Construct  Poor technical supervision by DPWH/IC. (Sec. 6.0c, 13.0, and 18.2).

*DPWH-initiated variations. DPWH is responsible for extra Major risks: costs and time extensions due to variations initiated by DPWH  Slippage of 20% or more due to the Concessionaire’s fault – Ground for in the following cases: (a) changes in the MPSS for Design and Default and Termination..

5-86 Construction or the Scope of Construction, and (b) change in  Failure to remedy major defects/deviations from the approved DED law such that the variation is necessary to ensure compliance whose cost is 20% or more or the value of work within 6-month period - (Sec. 13.6). Ground for Default and Termination..  Failure to complete the Project satisfactorily and secure a CFC before the Major risks: target completion date due to Concessionaire’s fault - Ground for Default  Significant DPWH-variations, e.g., resulting in and Termination. considerable extra costs, ROW, and implementation delays  Substandard quality of Construction. to be borne by DPWH.  Confiscation of Performance Security for Construction because of Concessionaire’s failure to fulfil its above obligations. *Certificate of Completion. DPWH shall issue the Certificate of  Liquidated damages due to delayed completion beyond d target date. Final Completion (CFC) within 7 days after the PC’s  Cost overruns in Construction. certification of Concessionaire’s compliance with the  Unexpected changes in geotechnical and other engineering conditions, requirements and recommendation Sec. 13.8). with consequent extra costs and delays.  Concessionaire-initiated variations, resulting in extra costs, ROW and Major risks: delays to be assumed by the Concessionaire.  Delay in the issuance of the CFC despite Concessionaire’s  Inadequate traffic management during Construction, resulting in compliance with requirements as certified by the PC.

Nature of Risk Government (DPWH) Private Sector (Concessionaire) congestion, accidents, and business slowdown.  Unexpected heavy/prolonged rains, causing floods, jams and delays. . *Responsibility for Contractors and sub-contractors. The Concessionaire shall assume full responsibility and accountability for the actions and quality of works of its Contractors and sub-contractors, which shall be in compliance with the MPSS and other provisions of the Agreement (Sec. 13.4(b)).

Major risks:  Substandard performance of Contractor and sub-contractors.

*Construction permits and other approvals. The Concessionaire is responsible for securing all necessary Construction permits, licenses, authorization, and approvals from concerned national agencies and LGUs, and for assuming their attendant costs and fees, prior to the start of Construction activities (Sec. 13.4(c)).

Major risks:  Difficulties/delays in obtaining permits and other approvals.

5-87 *Undiminished responsibility for Facility integrity and performance. DPWH’s issuance of the Certificate of Final Completion does not diminish the responsibility of the Concessionaire for the structural integrity and performance of the Facility during the Concession Period, or transfer any part of that responsibility to DPWH (Sec. 13.8(h)).

Major risks:  Structural failure due to faulty Construction.

*Insurance. The Concessionaire shall secure insurance coverage during Construction against all insurable risks, including contractor’s all-risk insurance, force majeure, and third-party liability (Sec. 15.1(1)).

Major risks:

Nature of Risk Government (DPWH) Private Sector (Concessionaire)  Failure to secure the required insurance coverage - Ground for Default and Termination.  Insufficient insurance coverage. Operation and *Grant of franchise and TOC. DPWH automatically grants the *Responsibility for O&M. The Concessionaire is responsible and bear the maintenance franchise through a Concession under the Agreement. DPWH risks for the O&M of the Facility - by itself or its designated Facility Operator risks shall ensure that, within 15 days after the signing of the and/or Maintenance Provider - in accordance with the approved O&M Agreement, TRB grants to the Concessionaire a TOC to Manuals and other provisions of MPSS for O&M, during the Operation operate and maintain the Facility, including the collections of Period (Sec. 6.0(i) and 14.0). Tolls at the Toll Rates and use of Toll Rate adjustment formula provided in the Agreement. The TOC shall become effective Major risks: only upon the issuance by DPWH of the CFC in accordance  Failure to operate the Expressway within 15 days from effective date of with Sec. 13.8 (Sec. 3.0, 5.0(c), 13.1, and 18.3). TOC due to Concessionaire’s fault - Ground for Default and Termination..  Failure to establish or maintain the required Maintenance Fund Trust Major risks: Account - Ground for Default and Termination.  Failure to deliver the TOC on time –Ground for Default  Persistent or flagrant failure to meet material obligations in approved and Termination... O&M Manuals or to comply with KPIs with significant cumulative penalties therefor - Ground for Default and Termination. 5-88 *Technical supervision. DPWH is responsible for the technical  Confiscation of Performance Security for O&M for above violations. supervision and monitoring over the O&M undertaken by the  Higher maintenance costs due to substandard DED and poor Construction. Concessionaire (Sec. 14.8).

Major risks: *Undiminished responsibility for O&M performance. The technical supervision and monitoring by DPWH over the O&M undertaken by the  Inadequate technical supervision by DPWH of O&M. Concessionaire neither diminishes the responsibility of the Concessionaire  Failure to impose penalties on the Concessionaire for non- nor transfers any part of that responsibility to DPWH (Sec. 14.8(h)). compliance with KPIs. Major risks: .  Inferior O&M performance resulting in substandard level of service.

. *Insurance. The Concessionaire shall secure insurance coverage during the Operation Period against force majeure, including damage or destruction, casualty insurance for the toll operations facilities, and third party liability insurance in connection with the use by third persons of the Facility (Sec. 15.1(b)).

Nature of Risk Government (DPWH) Private Sector (Concessionaire)

Major risks:  Failure to secure the required insurance coverage - Ground for Default and Termination.  Insufficient insurance coverage.

*Facility Turnover. The Concessionaire shall turnover of the Facility in good condition to DPWH in accordance with the MPSS at the end of the Concession Period (Sec. 6.0(m) and 21.1).

Major risks:  Failure to put the Facility in good condition per MPSS at the time of turnover. Market and *Revenue loss for Government’s disallowance of Toll Rates. If *Market or traffic risk. The Concessionaire shall assume the market risks in revenue risks the actual Toll Rate allowed by Government is less than the terms of the actual traffic volume using the Facility (Sec. 6.0). Toll Rate authorized in the Agreement, DPWH is responsible

5-89 for effecting (a) compensation to the Concessionaire or (b) Major risks: extension of Concession Period, to offset the Concessionaire’s  Actual traffic significantly less than the projected traffic. revenue loss (Sec. 5.0(f) and 15.3). *Revenue based on authorized Toll Rates, with adjustments. The Major risks: Concessionaire’s revenues will come from Tolls applied to the actual traffic  Political intervention preventing the implementation of using the Facility, at the Toll Rates authorized in the Agreement, subject to authorized toll rates. (a) periodic Toll Rate adjustments due to inflation based on CPI and (b)  Insufficient/delayed funding of compensation for extraordinary adjustments due to change in law/taxes and DPWH-initiated disallowance of authorized toll rates. variations (Sec. 15.1 and 15.2).

*Termination payment in case of DPWH default. Major risks: Concessionaire shall have the option to require DPWH to  Insufficient revenues due to low traffic and/or allowed toll rates below acquire the former’s rights and obligations under the those authorized. Agreement (Sec. 18.4).

Major risks:  Inadequate financial capacity of DPWH to pay acquisition price in case of termination due to DPWH’s default.

Nature of Risk Government (DPWH) Private Sector (Concessionaire) Political risks *Change-in- law/acts of Government. Govt shall bear the risk of any change in existing laws, regulations, policies, or other acts of the Govt which make the Concessionaire’s performance of its obligations impossible, materially more difficult or expensive, or which adversely affect the Project viability. DPWH and the Concessionaire shall meet to remedy the remedy the situation or compensate the Concessionaire, which includes adjustment of the toll rate, extension of Concession Period, revision of Project schedule, and other remedies as mutually agreed by the parties.

Major risks:  Inadequate capacity of DPWH to compensate the Concessionaire.

*Requisition or similar act. Government shall bear the risk of 5-90 any requisition, nationalization, or expropriation of the Concessionaire or its properties. The Agreement shall be terminated, and DPWH shall take over the Project, assume all attendant liabilities, pay the Concessionaire the fair market value/just compensation (Sec. 20.1(a)(iii)).

Major risks:  Lack of technical and financial capacity of DPWH to take over the Project and bear all liabilities and compensation requirements, which will affect service to the users.

*Judicial declaration. Government shall assume the risk of the Agreement being declared void/invalid/ unenforceable by a final judicial declaration, or the Concessionaire’s rights under the Agreement or its right to collect Tolls or Operate and Maintain the Project being adversely affected by any final judicial declaration thru no fault of the Concessionaire. Such event shall be a ground for Termination, and treated in the

Nature of Risk Government (DPWH) Private Sector (Concessionaire) same manner as a requisition (Sec. 20.1(a)(iii)).

Major risks:  Insufficient technical and financial capacity of DPWH to take over the Project and assume all liabilities and compensation requirements, which will affect service to the users. Force majeure *Excuse from performance. For force majeure events, DPWH * Excuse from performance. For force majeure events, the Concessionaire risks shall be excused from performing its obligations under the shall be excused from performing its obligations under the Agreement, but Agreement, but shall not be released from its monetary shall not be released from its monetary obligations (Sec. 20.1(b)). obligations (Sec. 20.1(b)). Major risks: Major risks:  Inadequate Concessionaire’s capacity to meet its monetary obligations in  Inadequate DPWH capacity to meet its monetary case of force majeure.

5-91 obligations in case of force majeure. *Funding of repair or reconstruction. The Concessionaire is responsible for *Responsibility for repair or reconstruction. If the taking actions to mitigate any damage by utilizing any insurance proceeds Concessionaire is unable to raise funds for any required covering force majeure. If the Concessionaire is unable to perform the reconstruction and/or repair work on the damaged Toll required reconstruction or repair due to insufficient insurance proceeds, the Facility, DPWH shall undertake such reconstruction and/or Concessionaire has the option to provide any funding shortfall, and/or repair work in order to reinstate the damaged Facility (Sec. undertake the reconstruction/repair work. Any amount advanced/incurred by 20.3). the Concessionaire in this regard shall be repaid by an appropriate extraordinary Adjustment in the Toll Rates, or extension of the Concession Major risks: Period, or direct payment, or other means as mutually agreed by the parties  Inadequate funding to undertake the repair work. (Sec. 20.3).

Major risks:  Inadequate insurance proceeds and Concessionaire’s funds for the repair work.

CHAPTER 6 PROJECT COST ESTIMATE

6.1 GENERAL

The Project Cost consisting of Construction Cost, Repair or Improvement Cost of Phase I, Public Utility Relocation Cost, Detailed Engineering Cost, Construction Supervision Cost, Independent Consultant Cost, ROW Acquisition Cost, Insurance Cost and Administration Cost, were estimated.

6.2 CONSTRUCTION COST

1) The Construction cost estimate was estimated based on several factors, as follows: a). Unit price was used for similar GOP and BOT projects implemented or tendered from 2010- 2011; b). Procedures and composition for the derivation of base construction cost, used in similar projects;

2) The Civil Work cost was divided into four components: a). General requirement; b). Expressway Ramp and Viaduct; c). Reconstruction of At Grade Road; d). Toll Plaza;

6.2.1 Procedure of Construction Cost Estimate

The procedure for cost estimate uses unit price for the “base cost” approach, which is generally adopted for similar projects. From the previous similar projects, preliminary quantity takeoffs for construction item for the superstructure, substructure, viaducts, approach roads, and other works are estimated. The cost estimate is based on the estimated quantity takeoffs similar projects and current market prices.

(1) Procedures of Base Construction Cost

The following procedures to derive the base construction cost are used: 1) Assumptions necessary for the estimate shall be established based on the results of the preliminary studies, market research, site investigation, and unit prices of recent similar expressway projects; 2) Three (3) direct cost elements are identified: a) Labor Costs b) Material Costs (foreign/imported materials and local materials) c) Equipment costs (Association of Carriers and Equipment Lessors, ACEL) 3) The project is broken down into its component activities and a list of corresponding work items including field activities are prepared in accordance with internationally accepted specifications and concept designs proposed for the expressway including viaduct. 4) Based on the constraints or requirements and results obtained from the site investigation, standard construction sequences and methods for each work item are studied and formulated. The construction technology, sequences, and method to be employed, approximate number of labor and equipment requirements, and other items are considered.

6-1

(2) Condition of Unit Price

The construction cost estimate is composed of the direct cost and indirect cost. The computations are in accordance with the DPWH Standard Specifications implementing guidelines and memorandum order relative to unit price analysis.

1) Direct Cost consists of the following elements: a) Cost of Material Materials are classified into two groups: commercial materials, available in the international and/or local markets (referred to as purchased materials) and material produced by the contractor (referred to as processed materials). The price of purchased materials are based on the quotations of various suppliers or agencies such as the Price Stabilization Council, the local markets, international and/or local prices of selected materials; the National Steel Corporation, and other private sector sources. The cost of transportation to the site is added to these costs. The cost of processed materials are estimated based on the analysis of outputs of necessary equipment, labor, royalties, and other items in accordance with recommended construction procedures. b) Cost of Equipment The cost of equipment is based on “The Association of Construction Equipment Lessors, Inc.” (ACEL) rental rates include operator’s wages, fringe benefits, fuel, oil, lubricants and equipment maintenance. c) Cost of Labor Labor costs used in the analysis are the wages authorized by the Department of Labor and Employment. All fringe benefits such as vacation and sick leaves, Workmen’s Compensation Act, GSIS and SSS contributions, allowances, bonus, etc. are taken into account. 2) Indirect Costs The indirect cost considers: a) Mobilization and demobilization (1 % of direct cost) b) Value Added Tax (VAT): 12% of Direct Material, Equipment and Labor Cost plus 12 % of the total mark-up c) Mark-Up - Overhead Expenses: 6% of Direct Material, Equipment and Labor Cost - Contingencies: 3% of Direct Material, Equipment and Labor Cost - Miscellaneous Expenses: 1% of Direct Material, Equipment and Labor Cost - Contractor’s Profit: 10% of Direct Material, Equipment and Labor Cost

As reference, Table 6.2.1-1 shows the comparison of unit price for NAIAX Project and other project such as similar GOP and BOT projects.

6.2.2 Construction Cost Estimate

Construction Cost has been estimated Based on above condition and result is shown in Table 6.2.2-1.

Cost component by foreign, local and tax portions was determined for each construction item by referencing the previous studies and projects.

6-2

TABLE 6.2.1-1 (1/2) COMPARISON OF UNIT PRICE FOR NAIAX PROJECT PAY ITEM MEGA Manila C5-FTI Project NAIAX Phase-1 NAIAX Phase-1 Skyway Stage-2 C2-C3 Project DESCRIPTION UNIT 2010 F/S NO. NAIAX Project 2010 UPA 2009 Bid Price 2009 BOT 2010

2.0 EXPRESSWAY, RAMPS AND BRIDGE

E SURFACE COURSES

302(2) Bituminous Tack Coat, Emulsified Asphalt, SS-1 (0.45 L/m2) tonne 65,971.81 56,457.07 65,971.81 56,366.00 58,920.21 310 (1) Bituminous Concrete Surface Course, Hot Laid tonne 6,773.22 4,590.19 6,773.22 5,434.78 6,455.17 311 Portland Cement Concrete Pavement t=300 mm sq.m 2,887.66 2,887.66

SUB-TOTAL (PART E)

F BRIDGE CONSTRUCTION

400(17)c Concrete Piles cast in Drilled Holes (1500mm) including Re-Bar l.m. 44,981.22 44,981.22 47,683.60 86,466.80 55,055.85 400(17)e Concrete Piles cast in Drilled Holes (1800mm) including Re-Bar l.m. 64,772.96 64,772.96 64,325.24 107,543.44 74,382.10 400(17)f Concrete Piles cast in Drilled Holes (2000mm) including Re-Bar l.m. 79,966.62 79,966.62 77,518.40 87,952.00 400(17)g Concrete Piles cast in Drilled Holes (2200mm) including Re-Bar l.m. 96,759.61 96,759.61 92,392.70 109,449.34 400(17)h Concrete Piles cast in Drilled Holes (2500mm) including Re-Bar l.m. 106,248.81 106,248.81 114,708.50 6-3 401(1) Railing, ( Concrete Bridge Railing) l.m. 5,006.92 5,006.92 7,375.90 9,128.45

401 (1) DOUBLE METAL BEAM GUARDRAIL (w/Post) l.m. 6,595.67 6,595.67 6,277.00 404 (2) Reinforcing Steel, Grade 60 (Bridge) kg 68.25 65.04 68.25 76.00 61.02 40.90 71.41 405(1) Lean Concrete, 17Mpa cu.m. 4,111.70 4,111.70 4,855.00 3,075.00 4,424.39 405(1)b Structural Concrete Class AA for Superstructure (Excluding Form and scaffold cu.m. 7,298.33 6,352.00 8,750.49 405(1)c Structural Concrete Class AA for Substructure (Excluding Form and scaffoldin cu.m. 6,762.64 6,793.50 8,750.49 405(1)d Structural Concrete Class AA 28Mpa for Pile Cap cu.m. 6,233.40 405(1)d Structural Concrete Class AA 28Mpa for Column cu.m. 11,663.24 11,663.24 405(1)e Structural Concrete Class AA 28Mpa for Coping cu.m. 14,057.94 14,057.94 405(1)f Structural Concrete Class AA 28Mpa for Diaphragm cu.m. 18,354.30 18,354.30 405(1)g Structural Concrete Class AA 28Mpa for Deck Slab cu.m. 7,643.31 7,643.31 405(1)h Structural Concrete Class P 35Mpa for Coping cu.m. 16,687.08 16,687.08 405(1)i Structural Concrete Class P 34Mpa for Hollow slab cu.m. 16,971.01 16,971.01 16,971.01 405(1)j Structural Concrete Class AA 21Mpa for Parapet, Curb, Median cu.m. 9,548.08 9,548.08 405(1)k Non Shrink Grout 41Mpa including wiremesh for Girder Riser cu.m. 80,462.16 80,462.16 62,394.00 406(1)a PSC Member (AASHTO Girder Type IV) L = 11.50m each 374,585.41 1,143,080.89 406(1)b PSC Member (AASHTO Girder Type II) L = 18.00m each 586,307.60 PSC Member (AASHTO Girder Type IV) L = 21.0m each 561,704.87 608,851.50

TABLE 6.2.1-1 (2/2) COMPARISON OF UNIT PRICE FOR NAIAX PROJECT PAY ITEM MEGA Manila C5-FTI Project NAIAX Phase-1 NAIAX Phase-1 Skyway Stage-2 C2-C3 Project DESCRIPTION UNIT 2010 F/S NO. NAIAX Project 2010 UPA 2009 Bid Price 2009 BOT 2010 406(1)b PSC Member (AASHTO Girder Type IV) L = 22.4m each 729,627.24 406(1)c PSC Member (AASHTO Girder Type IV) L = 24.7m each 804,544.32 406(1)d PSC Member (AASHTO Girder Type IV) L = 28.2m each 918,548.57 406(1)e PSC Member (AASHTO Girder Type V) L = 27.5m each 1,097,554.21 406(1)e PSC Member (AASHTO Girder Type IV) L = 28.00 m each 735,752.87 2,226,930.25 406(1)e PSC Member (AASHTO Girder Type V) L = 28.00 m each 1,100,968.92 406(1)f PSC Member (AASHTO Girder Type V) L = 28.5 m each 1,137,465.27 987,731.00 638,481.00 406(1)g PSC Member (AASHTO Girder Type V) L = 29 m each 1,157,420.80 406(1)h PSC Member (AASHTO Girder Type VI) L = 30.06m each 856,000.69 406(1)h PSC Member (AASHTO Girder Type V) L = 31.5m each 1,257,198.45 406(1)i PSC Member (AASHTO Girder Type V) L = 32.25m each 1,287,131.75

6-4 406(1)j PSC Member (AASHTO Girder Type V) L = 32.5m each 1,297,109.52 741,038.00 406(1)k PSC Member (AASHTO Girder Type V) L = 33.5m each 1,337,020.58 406(1)k PSC Member (AASHTO Girder Type VI) L = 33.68m each 1,226,881.45 1,157,075.00 406(1)l PSC Member (AASHTO Girder Type V) L = 35 m each 1,392,572.08 792,907.00 1,392,572.69 406(3) Prestressing Steel kg 152.90 126.78 152.90 189.50 408 Structural Steel kg 183.36 170.34 183.60 173.50 412(1)b Elastomeric Bearing Pad ( 606 x 306 x 60mm) pcs 8,567.50 8,567.50 12,493.10 412(1)b Elastomeric Bearing Pad ( 350 x 500 x 75mm) pcs 6,544.96 SPL 414(c) Steel Girder Shoe Type F each 110,377.79 119,269.48 110,377.79 SPL 414(d) Ruber Filler (400 x 150 x 50mm) each 865.83 865.83 SPL 414(e) Hard Rubber Filler & Restrainer Bolts Dia 30mm sets 1,573.81 1,573.81 SPL 416(1)a Pile Dynamic Analysis each 583,087.25 268,800.00 583,087.25 487,449.13 819,950.00 SPL 416(1)b Pile Integrity Test each 43,784.56 33,600.00 43,784.56 89,241.76 76,885.86 SPL 417(1)b Cast Iron Deck Drain each 19,679.57 19,679.57 19,574.50 SPL 417(2)a Collector Pipe ( 150mm dia PVC ) l.m. 791.70 791.70 713.97 703.00 SPL 417(2)b Collector Pipe ( 200mm dia PVC ) l.m. 1,153.20 1,153.20 1,298.94 1,091.00 SPL 418(a) Expansion Joint, Type A ( M80 Multiplex ) l.m. 29,418.63 22,906.88 28,257.50 SPL 418(b) Expansion Joint, ( SR 2.5A Waboflex ) l.m. 1,528.83 1,528.83 SPL 414 Metal Decking (8 mm thk) sq.m. 2,428.25 2,428.25 1,399.50 3,842.69 1,200.00 SPL 420 Rotating Material (Sosrobahu) each 646,345.85 646,345.85

TABLE 6.2.2-1 (1/2) CONSTRUCTION COST ESTIMATES

PAY ITEM COST COMPONENT DESCRIPTION QUANTITY UNIT Unit Cost Civil Work Cost Local Currency Remarks NO. Foreign Currency (FC) TAXES (LC)

1.0 GENERAL REQUIREMENTS

A FACILITIES FOR THE ENGINEER 1.00 l.s. 31,350,000.00 31,350,000.00 12,595,982.14 14,928,571.43 3,825,446.43

B OTHER GENERAL REQUIREMENTS

SPL B.2.1 Construction Health and Safety 1.00 l.s. 2,400,720.00 2,400,720.00 857,400.00 1,247,127.27 296,192.73 SPL B.2.2 Mobilization / Demobilization (1.0% of Civil Works) 1.00 l.s. 89,884,842.37 89,884,842.37 32,101,729.42 46,693,424.61 11,089,688.34 SPL B.3.1 Mobilization / Demobilization (1.0% of Civil Works) 1.00 l.s. 4,800,000.00 4,800,000.00 1,714,285.71 2,493,506.49 592,207.79 SPL Mobilization / Demobilization (1.0% of Civil Works) 1.00 l.s. 79,127,625.57 79,127,625.57 28,259,866.28 41,105,260.04 9,762,499.26

SUB-TOTAL (PART B) 176,213,187.94 62,933,281.41 91,539,318.41 21,740,588.12

SUB-TOTAL GENERAL REQUIREMENTS 207,563,187.94 75,529,263.55 106,467,889.84 25,566,034.55

2.0 EXPRESSWAY, RAMPS AND VIADUCT

C EARTHWORKS

103(1) Structure Excavation, Common Material 31,892.20 cu.m. 287.91 9,182,083.30 3,279,315.47 4,769,913.40 1,132,854.43 103(3) Fundation Back fill 1,987.00 cu.m. 565.00 1,122,655.00 400,948.21 583,197.40 138,509.38 104(1)e Embankment from Borrow 727.48 cu.m. 984.09 715,905.79 255,680.64 371,899.11 88,326.04

SUB-TOTAL (PART C) 11,020,644.10 3,935,944.32 5,725,009.92 1,359,689.86

D SUBBASE AND BASE COURSE

202 Crushed Aggregate Base Course 958.50 cu.m. 1,571.84 1,506,608.64 538,074.51 782,653.84 185,880.29

SUB-TOTAL (PART D) 1,506,608.64 538,074.51 782,653.84 185,880.29

E SURFACE COURSES

302(2) Bituminous Tack Coat, Emulsified Asphalt, SS-1 (0.45 L/m2) 53.22 tonne 65,971.81 3,511,019.73 1,253,935.62 1,823,906.35 433,177.76 310 (2) Bituminous Concrete Surface Course, Hot Laid 14,797.05 tonne 6,773.22 100,223,675.00 35,794,169.64 52,064,246.75 12,365,258.60 311 Portland Cement Concrete Pavement t=300 mm 6,390.00 sq.m 2,887.66 18,452,147.40 6,590,052.64 9,585,531.12 2,276,563.64

SUB-TOTAL (PART E) 122,186,842.13 43,638,157.90 63,473,684.22 15,075,000.00

F VIADUCT CONSTRUCTION

400(17)c Concrete Piles cast in Drilled Holes (1500mm) including Re-Bar 8,730.00 l.m. 44,981.22 392,686,083.34 140,245,029.76 203,992,770.56 48,448,283.01 400(17)g Concrete Piles cast in Drilled Holes (2200mm) including Re-Bar 1,770.00 l.m. 96,759.61 171,264,510.05 61,165,896.45 88,968,576.65 21,130,036.95 400(17)h Concrete Piles cast in Drilled Holes (2500mm) including Re-Bar 510.00 l.m. 106,248.81 54,186,893.10 19,352,461.82 28,149,035.38 6,685,395.90 401(1) Railing, ( Concrete Bridge Railing) 16,213.00 l.m. 5,006.92 81,177,193.96 28,991,854.99 42,169,970.89 10,015,368.09 401 (1) DOUBLE METAL BEAM GUARDRAIL (w/Post) 4,645.00 l.m. 6,595.67 30,636,887.15 10,941,745.41 15,915,266.05 3,779,875.69 404 (2) Reinforcing Steel, Grade 60 (Bridge) 15,921,413.50 kg 67.25 1,070,715,057.88 382,398,234.96 556,215,614.48 132,101,208.44 405(1) Lean Concrete, 17Mpa 573.62 cu.m. 4,111.70 2,358,553.35 842,340.48 1,225,222.52 290,990.35 405(1)d Structural Concrete Class AA 28Mpa for Pile Cap 13,953.30 cu.m. 6,233.40 86,976,500.22 31,063,035.79 45,182,597.52 10,730,866.91 405(1)d Structural Concrete Class AA 28Mpa for Column 6,880.02 cu.m. 11,663.24 80,243,324.46 28,658,330.17 41,684,843.88 9,900,150.42 405(1)e Structural Concrete Class AA 28Mpa for Coping 10,142.00 cu.m. 14,057.94 142,575,627.48 50,919,866.96 74,065,261.03 17,590,499.49 405(1)f Structural Concrete Class AA 28Mpa for Diaphragm 1,804.24 cu.m. 18,354.30 33,115,562.23 11,826,986.51 17,202,889.47 4,085,686.25 405(1)g Structural Concrete Class AA 28Mpa for Deck Slab 30,363.81 cu.m. 7,643.31 232,080,012.61 82,885,718.79 120,561,045.51 28,633,248.31 405(1)h Structural Concrete Class P 35Mpa for Coping 6,023.00 cu.m. 16,687.08 100,506,282.84 35,895,101.01 52,211,056.02 12,400,125.80 405(1)i Structural Concrete Class P 34Mpa for Hollow slab 3,376.38 cu.m. 16,971.01 57,300,578.74 20,464,492.41 29,766,534.41 7,069,551.92 405(1)j Structural Concrete Class AA 21Mpa for Parapet, Curb, Median 3,620.26 cu.m. 9,548.08 34,566,532.10 12,345,190.04 17,956,640.05 4,264,702.01 405(1)k Non Shrink Grout 41Mpa including wiremesh for Girder Riser 57.23 cu.m. 80,462.16 4,604,849.42 1,644,589.08 2,392,129.57 568,130.77 406(1)a PSC Member (AASHTO Girder Type IV) L = 11.5m 13.00 each 374,585.41 4,869,610.34 1,739,146.55 2,529,667.71 600,796.08 406(1)b PSC Member (AASHTO Girder Type IV) L = 22.4m 120.00 each 729,627.24 87,555,268.27 31,269,738.67 45,483,256.24 10,802,273.36 406(1)c PSC Member (AASHTO Girder Type IV) L = 24.7m 8.00 each 804,544.32 6,436,354.54 2,298,698.05 3,343,560.80 794,095.69 406(1)d PSC Member (AASHTO Girder Type IV) L = 28.2m 20.00 each 918,548.57 18,370,971.47 6,561,061.24 9,543,361.80 2,266,548.43 406(1)e PSC Member (AASHTO Girder Type V) L = 27.5m 162.00 each 1,097,554.21 177,803,781.21 63,501,350.43 92,365,600.63 21,936,830.15 406(1)f PSC Member (AASHTO Girder Type V) L = 28.5 m 59.00 each 1,137,465.27 67,110,450.75 23,968,018.13 34,862,571.82 8,279,860.81 406(1)g PSC Member (AASHTO Girder Type V) L = 29 m 122.00 each 1,157,420.80 141,205,337.36 50,430,477.63 73,353,422.00 17,421,437.73 406(1)h PSC Member (AASHTO Girder Type V) L = 31.5m 80.00 each 1,257,198.45 100,575,876.24 35,919,955.80 52,247,208.44 12,408,712.00 406(1)i PSC Member (AASHTO Girder Type V) L = 32.25m 12.00 each 1,287,131.75 15,445,580.99 5,516,278.93 8,023,678.44 1,905,623.63 406(1)j PSC Member (AASHTO Girder Type V) L = 32.5m 113.00 each 1,297,109.52 146,573,375.20 52,347,634.00 76,142,013.09 18,083,728.11 406(1)k PSC Member (AASHTO Girder Type V) L = 33.5m 153.00 each 1,337,020.58 204,564,148.28 73,058,624.39 106,267,090.02 25,238,433.88 406(1)l PSC Member (AASHTO Girder Type V) L = 35 m - each 1,392,572.08 - - - - 406(3) Prestressing Steel 530,199.00 kg 152.90 81,067,427.10 28,952,652.54 42,112,949.14 10,001,825.42 408 Structural Steel 23,099,360.00 kg 181.86 4,200,849,609.60 1,500,303,432.00 2,182,259,537.45 518,286,640.15 412(1)b Elastomeric Bearing Pad ( 606 x 306 x 60mm) 1,724.00 pcs 8,567.50 14,770,370.00 5,275,132.14 7,672,919.48 1,822,318.38 SPL 414(c) Steel Girder Shoe Type F 236.00 each 110,377.79 26,049,158.44 9,303,270.87 13,532,030.36 3,213,857.21 SPL 414(d) Ruber Filler (400 x 150 x 50mm) 4,148.00 each 865.83 3,591,462.84 1,282,665.30 1,865,694.98 443,102.56 SPL 414(e) Hard Rubber Filler & Restrainer Bolts Dia 30mm 1,073.00 sets 1,573.81 1,688,698.13 603,106.48 877,245.78 208,345.87 SPL 416(1)a Pile Dynamic Analysis 74.00 each 583,087.25 43,148,456.50 15,410,163.04 22,414,782.60 5,323,510.87 SPL 416(1)b Pile Integrity Test 734.00 each 43,784.56 32,137,867.04 11,477,809.66 16,694,995.86 3,965,061.52 SPL 417(1)b Cast Iron Deck Drain 2,312.00 each 19,679.57 45,499,165.84 16,249,702.09 23,635,930.31 5,613,533.45 SPL 417(2)a Collector Pipe ( 150mm dia PVC ) 10,249.00 l.m. 791.70 8,114,133.30 2,897,904.75 4,215,134.18 1,001,094.37 SPL 417(2)b Collector Pipe ( 200mm dia PVC ) 8,458.00 l.m. 1,153.20 9,753,765.60 3,483,487.71 5,066,891.22 1,203,386.66 SPL 418(a) Expansion Joint, Type A ( M80 Multiplex ) 427.00 l.m. 29,418.63 12,561,755.01 4,486,341.08 6,525,587.02 1,549,826.92 SPL 418(b) Expansion Joint, ( SR 2.5A Waboflex ) 512.87 l.m. 1,528.83 784,091.04 280,032.52 407,320.02 96,738.51 SPL 414 Metal Decking (8 mm thk) 75,493.00 sq.m. 2,428.25 183,315,877.25 65,469,956.16 95,229,027.14 22,616,893.95 SPL 420 Rotating Material (Sosrobahu) 52.00 each 646,345.85 33,609,984.20 12,003,565.79 17,459,732.05 4,146,686.36

SUB-TOTAL (PART F) 8,242,447,025.48 2,943,731,080.53 4,281,790,662.59 1,016,925,282.36

G DRAINAGE AND SLOPE PROTECTION STRUCTURES

SPL 515 Mechanically Stabilized Earth (MSE) Wall 6,926.61 sq.m. 11,468.35 79,436,787.79 28,370,281.35 41,265,863.79 9,800,642.65

SUB-TOTAL (PART G) 79,436,787.79 28,370,281.35 41,265,863.79 9,800,642.65

6-5

TABLE 6.2.2-1 (2/2) CONSTRUCTION COST ESTIMATES H MISCELLANEOUS STRUCTURES

605(1)a Warning Signs 15.00 each 34,912.46 523,686.90 187,031.04 272,045.14 64,610.72 605(2) Regulatory Signs 12.00 each 34,912.46 418,949.52 149,624.83 217,636.11 51,688.58 605(3)a Informatory Signs (Medium) 26.00 each 263,440.28 6,849,447.28 2,446,231.17 3,558,154.43 845,061.68 605(3)b Informatory Signs (Large) 4.00 each 388,956.44 1,555,825.76 555,652.06 808,221.17 191,952.53 612(1) Reflectorized Thermoplastic Pavement Markings 13,174.02 sq.m. 1,092.83 14,396,964.28 5,141,772.96 7,478,942.48 1,776,248.84 612(2) Reflectorized Studs 100x100x20 DF 275.00 each 420.00 115,500.00 41,250.00 60,000.00 14,250.00 SPL 620 Concrete Barrier (New Jersey Type ) - lm 4,660.55 - - - - SPL Installation of Fiber Optic 4,619.34 lm 6,881.28 31,787,014.05 11,352,505.02 16,512,734.57 3,921,774.46 SPL Noise Barrier 800.00 lm 48,031.19 38,424,952.00 13,723,197.14 19,961,014.03 4,740,740.83 SPL 1110 Toll Road Linghting 331.00 each 158,671.93 52,520,408.83 18,757,288.87 27,283,329.26 6,479,790.70 600(1) Concrete Curb 29,087.30 lm 1,333.21 38,779,479.23 13,849,814.01 20,145,184.02 4,784,481.20 SPL Reinstallation of Longitudinal Expansion Joint (Type B Joint) 690.00 lm 33,084.24 22,828,125.60 8,152,902.00 11,858,766.55 2,816,457.05

SUB-TOTAL (PART H) 208,200,353.45 74,357,269.09 108,156,027.76 25,687,056.59

SUB-TOTAL EXPRESSWAY AND RAMPS 8,664,798,261.58 3,094,570,807.71 4,501,193,902.12 1,069,033,551.75

3.0 RECONSTRUCTION OF AT-GRADE ROAD

CEARTHWORKS

101(1)a Removal of Structure and Obstruction (Existing Ramp) 1,319.07 cu.m 1,679.33 2,215,158.22 791,127.94 1,150,731.54 273,298.74 101(1)b Removal of Structure and Obstruction (Masonry) 300.00 sq.m 503.80 151,140.00 53,978.57 78,514.29 18,647.14 101(1)c Removal of Structure and Obstruction (Median) 4,934.30 sq.m 335.85 1,657,184.66 591,851.66 860,875.15 204,457.85 101(1)d Removal of Structure and Obstruction (Concrete Pavement) 50,835.60 sq.m 245.78 12,494,373.77 4,462,276.35 6,490,583.78 1,541,513.65 101(1)e Removal of Structure and Obstruction (Pedestrian Bridge) 2.00 Lot 104,454.33 208,908.65 74,610.23 108,523.98 25,774.44 101(2) Removal of Facilities (Tel, Electric, Billboads,Traffic sign etc,) 2.00 ea 5,171.31 10,342.62 3,693.79 5,372.79 1,276.04 105(1) Subgrade Preparation 50,416.00 l.s. 37.18 1,874,466.88 669,452.46 973,749.03 231,265.39

SUB-TOTAL (PART C) 18,611,574.80 6,646,991.00 9,668,350.54 2,296,233.25

D SUBBASE AND BASE COURSE

302(2) Bituminous Tack Coat, Emulsified Asphalt, SS-1 (0.45 L/m2) 33.84 tonne 65,971.81 2,232,782.92 797,422.47 1,159,887.23 275,473.22 310 (2) Bituminous Concrete Surface Course, Hot Laid (t=5cm) 8,649.15 tonne 6,773.22 58,582,595.76 20,922,355.63 30,432,517.28 7,227,722.85 200 Aggregate Subbase Course 4,754.00 cu.m. 1,335.83 6,350,535.82 2,268,048.51 3,298,979.65 783,507.67

SUB-TOTAL (PART D) 67,165,914.51 23,987,826.61 34,891,384.16 8,286,703.74

E SURFACE COURSE

311(1)c Portland Cement Concrete Pavement (250mm thk) 23,518.00 sq.m. 1,828.43 43,001,016.74 15,357,505.98 22,338,190.51 5,305,320.25

SUB-TOTAL (PART E) 43,001,016.74 15,357,505.98 22,338,190.51 5,305,320.25

G DRAINAGE AND SLOPE PROTECTION STRUCTURES

500(1)a RCPC, 610 mm dia. 10,649.00 l.m. 3,484.84 37,110,061.16 13,253,593.27 19,277,953.85 4,578,514.04 502(1) Manholes - each 28,779.72 - - - - 502(3) Catch Basin Manhole Drop Inlet 761.00 each 32,233.28 24,529,526.08 8,760,545.03 12,742,610.95 3,026,370.10

SUB-TOTAL (PART G) 61,639,587.24 22,014,138.30 32,020,564.80 7,604,884.14

H MISCELLANEOUS STRUCTURES

605(1)a Warning Signs 6.00 each 34,912.46 209,474.76 74,812.41 108,818.06 25,844.29 605(2) Regulatory Signs 6.00 each 34,912.46 209,474.76 74,812.41 108,818.06 25,844.29 605(3)a Informatory Signs (Medium) 16.00 each 263,440.28 4,215,044.48 1,505,373.03 2,189,633.50 520,037.96 605(3)b Informatory Signs (Large) 2.00 each 388,956.44 777,912.88 277,826.03 404,110.59 95,976.26 612(1) Reflectorized Thermoplastic Pavement Markings 5,991.00 sq.m. 1,092.83 6,547,144.53 2,338,265.90 3,401,114.04 807,764.58 SPL 620 Concrete Barrier (New Jersey Type ) - l.m. 4,660.55 - - - - 600(1) Concrete Curb 11,360.00 lm 1,333.21 15,145,265.60 5,409,023.43 7,867,670.44 1,868,571.73 600(2) Concrete Curb and Gutter 7,305.00 lm 1,661.30 12,135,796.50 4,334,213.04 6,304,309.87 1,497,273.59 601 Sidewalk 9,876.00 sq.m. 1,560.60 15,412,485.60 5,504,459.14 8,006,486.03 1,901,540.43

SUB-TOTAL (PART H) 54,652,599.11 19,518,785.40 28,390,960.58 6,742,853.14

SUB-TOTAL RECONSTRUCTION OF AT-GRADE ROAD 245,070,692.39 87,525,247.28 127,309,450.59 30,235,994.52

4.0 TOLL PLAZA

SPL 1041(3)a Toll Island, Single 20.00 each 138,225.73 2,764,514.52 987,326.62 1,436,111.44 341,076.47 SPL 1041(4) Crash Attenuators, Single 20.00 set 45,779.29 915,585.71 326,994.89 475,628.94 112,961.87 SPL Toll Booth (Type 1 ) 16.00 each 387,204.43 6,195,270.88 2,212,596.74 3,218,322.54 764,351.60 SPL Toll Booth ( Maxi Type 2 ) 5.00 each 841,889.37 4,209,446.85 1,503,373.88 2,186,725.64 519,347.34 SPL Toll Plaza 1,410.06 sq.m. 21,755.00 30,675,855.30 10,955,662.61 15,935,509.25 3,784,683.45 SPL Toll Collection System 1.00 l.s. 26,466,000.00 26,466,000.00 9,452,142.86 13,748,571.43 3,265,285.71 SPL 1110 Toll Plaza Lighting System 24.00 each 307,858.73 7,388,609.52 2,638,789.11 3,838,238.71 911,581.69

SUB-TOTAL TOLL PLAZA 78,615,282.78 28,076,886.71 40,839,107.94 9,699,288.14

TOTAL 9,196,047,424.69 3,285,702,205.25 4,775,810,350.49 1,134,534,868.96

35.73% 51.93% 12.34%

Foreign 3,285.70 Material 6,437.23 Local 4,775.81 Foreign 2,446.14 Tax 1,134.53 Local 3,991.09 Total 9,196.04 Labor 919.61 Skilled 551.76 Unskilled 367.85 Equipment 1839.21 Foreign 839.56 Local 999.65

6-6

6.3 REPAIR/IMPROVEMENT OF PHASE-1

Repair and improvement cost has been estimated based on site condition survey and cost estimate is as shown in the Table 6.3-1.

TABLE 6.3-1 REPAIR / IMPROVEMENT OF PHASE-1

Replacement of Longitudinal Expansion Joint: 150 m x 35,300 Php/m = 5,295,000 Replacement of Expansion Joint : (20 m x 2 + 6 m x 4) x 31,000 = 1,984,000

Repair of Pavement: 20,000 m2 x 10% x 870 Php/m2 = 1,740,000

Other Miscellaneous Repair: = 3,000,000

TOTAL = 12,019,000

6.4 PUBLIC UTILITY RELOCATION COST

Public Utility Relocation cost has been estimated Based on site condition survey and cost estimate is as shown in the Table 6.4.1.

TABLE 6.4-1 RELOCATION OF EXISTING UTILITIES COST ESTIMATES Unit: Php PAY DESCRIPTION QUANTITY UNIT Unit Cost Civil Work Remarks ITEM Cost No. 101(3)a Relocation of Existing 56.00 Lot 2,085,242.15 116,773,560.40 Utilities (High Tension Electrical Post) 101(3)b Relocation of Existing 56.00 Lot 293,761.45 16,450,641.20 Utilities (Concrete Electrical Post) 101(3)d Relocation of Existing 111.00 Lot 36,918.85 4,097,992.35 Utilities (Light Poles) 101(3)e Relocation of Existing  Lot 481,709.15  Utilities (PLDT Manhole with cable) SPL Provisional Sum 1.00 PS 10,000,000.00 10,000,000.00 (Relocation of Super High Tension Electrical Post) TOTAL OF RELOCATION COST 147,322,193.95

Foreign 52.64 Local 76.50 Tax 18.18 Total 147.32

6-7

6.5 DETAILED ENGINEERING COST

Detailed Engineering Cost has been estimated as following assumptions and Cost is shown in Table 6.5-1

Duration of Detailed Engineering Design Services is 10 months.

TABLE 6.5-1 DETAILED ENGINEERING DESIGN COST ESTIMATE

Unit Price Total Unit Quantity (PHP) (PHP) A Professional Staff A-1 Remuneration 1) Professional (A) M/M 1,000,000 30 30,000,000 2) Professional (B) M/M 150,000 170 25,500,000

A-2 Reimbursable Cost 1) International travel expense RT 100,000 5 500,000 2) Subsistence Allowance M/M 120,000 30 3,600,000 3) International Communication Months 50,000 16 800,000 4) Technical Supplies LS 500,000 1 500,000 5) Procurement of Equipment LS 2,000,000 1 2,000,000 6) Vehicle Rental (5 for D/D, 1forT/A) Veh-Mo. 90,000 56 5,040,000 7) Printing Cost LS 1,000,000 1 1,000,000 Sub-Total 68,940,000 BSupportong Staff B-1 Remuneration 1) Technical support staff M/M 40,000 140 5,600,000 2) Administration staff M/M 40,000 40 1,600,000 B-2 Reinbursable Cost Surveys; Geotechnical LS 2,000,000 1 2,000,000 Topographic LS 1,000,000 1 1,000,000 Environmental Monitoring and Consultations LS 500,000 1 500,000 Office Rental (400*P 400/m2/month) Months 160,000 16 2,560,000 Office Equipment and Furniture LS 2,000,000 1 2,000,000 Office Supplies and Consumuables Months 20,000 16 320,000 Office Operation and Maintenance Months 20,000 16 320,000 Local Communication Months 20,000 16 320,000 Sub-Total 16,220,000 Base Cost Total in Php 106,246,000 Value Added Tax (12%) in PHP 12,749,520 TOTAL 118,995,520

Foreign 34.90 Local 71.35 Tax 12.75 Total 119.00

6-8

6.6 CONSTRUCTION SUPERVISION COST

Construction Supervision Cost has been estimated as following assumptions and Cost is shown in Table 6.6-1.

Duration of Construction Supervision Services is 24 months.

TABLE 6.6-1 CONSTRUCTION SUPERVISION COST ESTIMATE

Unit Price Total Unit Quantity (PHP) (PHP) A Professional Staff A-1 Remuneration 1) Professional (A) M/M 1,000,000 54 54,000,000 2) Professional (B) M/M 150,000 296 44,400,000

A-2 Reimbursable Cost 1) International travel expense RT 100,000 9 900,000 2) Subsistence Allowance M/M 120,000 54 6,480,000 3) International Communication Months 50,000 24 1,200,000 4) Technical Supplies LS 500,000 0 0 5) Procurement of Equipment LS 2,000,000 0 0 6) Vehicle Rental (8 for C/S) Veh-Mo. 90,000 192 17,280,000 7) Printing Cost LS 500,000 1 500,000 Sub-Total 124,760,000 BSupportong Staff B-1 Remuneration 1) Technical support staff M/M 40,000 504 20,160,000 2) Administration staff M/M 40,000 96 3,840,000 B-2 Reinbursable Cost Surveys; Geotechnical LS 2,000,000 0 0 Topographic LS 1,000,000 0 0 Environmental Monitoring and Consultations LS 200,000 1 200,000 Office Rental (400*P 400/m2/month) Months 160,000 24 3,840,000 Office Equipment and Furniture LS 2,000,000 0 0 Office Supplies and Consumuables Months 20,000 24 480,000 Office Operation and Maintenance Months 20,000 24 480,000 Local Communication Months 20,000 24 480,000 Sub-Total 29,480,000 Base Cost Total in Php 192,564,000 Value Added Tax (12%) in PHP 23,107,680 TOTAL 215,671,680

Foreign 62.58 Local 129.98 Tax 23.11 Total 215.67

6-9

6.7 INDEPENDENT CONSULTANT COST

Independent Consultant Cost has been estimated based on period of 34 months and Cost is shown in Table 6.7-1 and Table 6.7-2.

TABLE 6.7-1 INDEPENDENT CONSULTANTS COST ESTIMATE (D/D)

Unit Price Total Unit Quantity (PHP) (PHP) A Professional Staff A-1 Remuneration 1) Professional (A) M/M 1,000,000 17 17,000,000 2) Professional (B) M/M 150,000 75 11,250,000

A-2 Reimbursable Cost 1) International travel expense RT 100,000 3 300,000 2) Subsistence Allowance M/M 120,000 17 2,040,000 3) International Communication Months 50,000 10 500,000 4) Technical Supplies LS 200,000 1 200,000 5) Procurement of Equipment LS 500,000 1 500,000 6) Vehicle Rental (5 for D/D, 1forT/A) Veh-Mo. 90,000 30 2,700,000 7) Printing Cost LS 200,000 1 200,000 Sub-Total 34,690,000 B Supportong Staff B-1 Remuneration 1) Technical support staff M/M 40,000 55 2,200,000 2) Administration staff M/M 40,000 50 2,000,000 B-2 Reinbursable Cost Office Rental (300*P 400/m2/month) Months 120,000 10 1,200,000 Office Equipment and Furniture LS 500,000 1 500,000 Office Supplies and Consumuables Months 20,000 10 200,000 Office Operation and Maintenance Months 20,000 10 200,000 Local Communication Months 20,000 10 200,000 Sub-Total 6,500,000 Base Cost Total in Php 49,640,000 Value Added Tax (12%) in PHP 5,956,800 TOTAL 55,596,800 Foreign 19.84 Local 29.80 Tax 5.96 Total 55.60

6-10

TABLE 6.7-2 INDEPENDENT CONSULTANTS COST ESTIMATE (S/V)

Unit Price Total Unit Quantity (PHP) (PHP) A Professional Staff A-1 Remuneration 1) Professional (A) M/M 1,000,000 36 36,000,000 2) Professional (B) M/M 150,000 183 27,450,000

A-2 Reimbursable Cost 1) International travel expense RT 100,000 6 600,000 2) Subsistence Allowance M/M 120,000 36 4,320,000 3) International Communication Months 50,000 24 1,200,000 4) Technical Supplies LS 200,000 0 0 5) Procurement of Equipment LS 500,000 0 0 6) Vehicle Rental (8 for C/S) Veh-Mo. 90,000 120 10,800,000 7) Printing Cost LS 300,000 1 300,000 Sub-Total 80,670,000 B Supportong Staff B-1 Remuneration 1) Technical support staff M/M 40,000 168 6,720,000 2) Administration staff M/M 40,000 120 4,800,000 B-2 Reinbursable Cost Office Rental (300*P 400/m2/month) Months 120,000 24 2,880,000 Office Equipment and Furniture LS 500,000 0 0 Office Supplies and Consumuables Months 20,000 24 480,000 Office Operation and Maintenance Months 20,000 24 480,000 Local Communication Months 20,000 24 480,000 Sub-Total 15,840,000 Base Cost Total in Php 117,102,000 Value Added Tax (12%) in PHP 14,052,240 TOTAL 131,154,240 Foreign 42.12 Local 74.98 Tax 14.05 Total 131.15

6-11

6.8 ROW ACQUISITION COST

The cost of ROW acquisition comprises the compensation for lands and improvement affected by the project. The cost acquiring these lots is based on the zonal evaluation formula, as follows:

6.8.1 Unit Price for Road Right of Way Acquisition

For this project, estimation in the land acquisition cost is primarily based on the formula by multiplying the zonal valuation (provided by the LGU) with a range of 125% - 150% to arrive at a fair market value.

The formula is as follows: LAC = A*Z*P Where: LAC - Land Acquisition Cost Z - Zonal Valuation per locality P - Ranges from 125 - 150% (The range depending on the actual location of a lot) A - Area of the lot to be acquired

6.8.2 Cost Estimation of ROW Acquisition

The land acquisition for the road right-of-way consists of the area and cost is shown in Table- 6.8.2-1.

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TABLE 6.8.2-1 COST ESTIMATION OF ROW ACQUISITION Acquired area Zonal Value Market Value Cost Remarks A (m2) Z (Peso/) Z 125% LAC

STA. 0+400 Sales St. 636.81 10,000 12,500 7,960,100 Air Force Ptoperty STA. Andrews Ave. 1052.1 15,000 18,750 19,726,875 MIAA Property STA. 1+800 Andrews Ave. 1,224.77 15,000 18,750 22,964,475 MIAA Property STA. 2+700 Andrews Ave. 3,138.64 15,000 18,750 58,849,406 LRT Depot STA. 3+000 Andrews Ave. 218.56 15,000 18,750 4,098,000 MIAA Property STA. 3+200 Domestic Road 4325.56 25,000 31,250 135,173,688 Private Property STA. 3+400 Domestic Road 771.36 25,000 31,250 24,104,844 MIAA Property STA. 3+500 Domestic Road 7771.23 25,000 31,250 242,850,781 MIAA Property STA. 3+600 Domestic Road 448.63 25,000 31,250 14,019,594 MIAA Property STA. 0+500(Ramp) Domestic 1824.08 25,000 31,250 57,002,594 MIAA Property Road STA. 4+200 MIA Road 7281.86 25,000 31,250 227,558,219 Commercial Area STA. 4+900 Roxas Blvd 2669.08 40,000 50,000 133,454,150 Private Property

Total 31,362.67 947,762,725

LAC = A*Z*P Foreign - LAC - Land Acquisition Cost Local 846.21 Z - Zonal Valuation per Locality Tax 101.55 P - Ranges from 125% Total 947.76 (The range depending on the actual location of lot) A - Area of lot to be acquired

RDO NO.51 Issued by BIR 6th Revision Street/Subdivision Vicinity Classification ZV/sq.m AGUINALDO HIGHWAY Coastal Road CR 24,100.00 DRA. A. SANTOS AVE Sucat Road CR 20,000.00 EDISON AVE. RR 5,000.00 INTERIOR INDUSTRIAL LOTS GP 5,000.00 MARIAN PARK RR 5,000.00 NINOY AQUINO AVE Imelda Ave. CR 30,000.00 RR 25,000.00 RECLAIMED AREA (MANILA BAY) Undeveloped RR 25,000.00 CR 28,000.00 Developed RR 30,000.00 CR 40,000.00 ROXAS BLVD CR 40,000.00 SEVERINA IND SUBO RR 5,000.00 I 10,000.00 SOUTH SUPER HIGHWAY RR 8,000.00 UNITED PARANAQUE IV IND. SUBO RR 5,000.00 I 10,000.00 DOMESTIC ROAD RR 18,000.00 CR 25,000.00 ALL STREETS for NAIA RR 25,000.00 CR 30,000.00 ALL STREETS for MIA RR 15,000.00 CR 25,000.00 ANDREWS AVENUE AURORA BLBD-VILLAMOR RR 10,000.00 CR 15,000.00 AURORA BLVD. ANDREWS AVE.-BRIDGE RR 10,000.00 CR 15,000.00 INTERIOR LOTS RR 5,000.00 CR 10,000.00 6-13

6.9 OPERATION AND MAINTENANCE COST

In addition to the costs of construction, the operation and maintenance of the expressway also needs to be considered.

6.9.1 Routine Maintenance Cost

The annual cost of maintaining the expressway and its structures, for the analysis this has been estimated as shown in Table 6.9.1-1.

TABLE 6.9.1-1 ROUTINE MAINTENANCE WORK YEARLY COST FOR NAIA EXPRESSWAY (COST PER PHP) Unit Rate Amount Description of Routine Maintenance Unit Quantity (Php) (Php) Patch Bituminous Pavement (2% of Total Quantity) sqm 870 1,872 1,628,640 Repair & Replace Guardrail (5% of TQ) lm 1,827 260 475,020 Replace Lighting Lamps (5% of TQ) each 23,165 8.7 200,763 Repair or Replace Lighting Poles (5% of TQ) each 36,000 8.7 312,000 General Roadway Maintenance (Total Length) km 20,880 5.2 108,576 Clean Drainage (5% of TL) km 43.5 104 4,524 Inspect Viaduct (TL) lm 87 5,200 452,400 Repair Viaduct (1% of TQ) sqm 1,827 936 1,710,007 Repaint Road Marking Lines (5% of TQ) km 163,908 1.2 191,772 Repair Signs (10% of TQ) each 16,965 4.2 71,253 Pickup Litter (Road Cleaning) (TL) km 36,975 5.2 192,270 Miscellaneous Maintenance (TL) km 65,250 5.2 339,300 Maintenance Management (10% of above cost) year 568,652 1 568,652 Routine Maintenance 6,255,177

6.9.2 Operation Cost

The Purpose of the analysis it has been assumed that this could be represented by an annual figure as shown in Table 6.9.2-1.

TABLE 6.9.2-1 OPERATION COST (EVERY YEAR) Unit Rate Amount/Yr Description Unit Quantity (Php) (Php) Electricity kwh 10 1,350,000 13,500,000 Cost of Staff (Php 40,000/month each/yr 480,000 150 72,000,000 50,000/month) Running Cost for Office and Toll Booths sqm 6,960 1,070.80 7,452,768 Office Rental Fee (A=2,000 m2 x Php 450/m2) month 900,000 12 10,800,000 Maintenance for Toll System month 1,087,500 12 13,050,000 Total of O & M Cost 116,802,768

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6.9.3 PERIODIC MAINTENANCE COST

The Periodic overlay costs for the expressway, it has been assumed that this will be required every five years and this has been estimated as shown in Table 6.9.3-1.

TABLE 6.9.3-1 PERIODIC MAINTENANCE (EVERY FIVE YEARS) Unit Rate every Amount/ Description Unit Quantity 5 years (Php) 5 year (Php) Repavement (TQ) LS 84,587,170.53 1 84,587,170.53 Viaduct (TQ) LS 171,007,200.00 1 171,007,200.00 Lighting (TQ) LS 10,255,266.67 1 10,255,266.67 Total of Periodic Maintenance (Every 5Years) 265,849,637.20

6.9.4 INDEPENDENT CONSULTANT COST

Independent Consultant Cost for O & M Stage has been estimated and cost is shown in Table 6.9.4-1.

TABLE 6.9.4-1 COST BREAKDOWN OF INDEPENDENT CONSULTANTS SERVICES (O & M STAGE) Unit Unit Price Quantity Total (Php) (Php) A. Professional Staff A-1 Remuneration 1) Professional (B) (4 Specialists) M/M 150,000 48 7,200,000 Sub-Total 7,200,000 B. Supporting Staff B-1 Remuneration 1) Technical Support Staff (4 x 12) M/M 60,000 48 2,880,000 2) Administration Staff (2 x 12) M/M 40,000 24 960,000 B-2 Reimbursable Cost 1) Office Rental (150 x Php 400/sqm/mo.) Months 60,000 12 720,000 2) Office Operation and Maintenance Months 20,000 12 240,000 3) Local Communication Months 20,000 12 240,000 4) Office Equipment and Supply Months 80,000 12 960,000 5) Vehicle Rental (3 cars) Veh.-mo. 90,000 36 3,240,000 6) Reports LS 100,000  100,000 Sub-Total 9,340,000 Total in Php 16,540,000 Value Added Tax (12%) in Php 1,984,800 GRAND TOTAL 18,524,800

6.9.5 OPERATION AND MAINTENANCE COST PER YEAR

Based on the above four categories, the yearly O & M costs have been estimated as shown in Table 6.9.5-1 and Table 6.9.5-2. 6-15

TABLE 6.9.5-1 OPERATION AND MAINTENANCE COST PER YEAR Unit: Million Pesos at March 2011 Prices Item Total Government Private (Million Php/Year) (Million Php/Year) (Million Php/Year) Routine Maintenance Cost 6.26  6.26 Operation Cost 116.80  116.80 O & M Cost per year 123.06  123.06 Periodic Maintenance 265.85  265.85 (every 10 years) [Note-1] Government Agent 18.52 18.52  Insurance Cost & Tax 10.22  10.22  All Risk Insurance including 3rd Party Insurance 9.05 (0.35% of 3.88 Billion Pesos)  Business Interruption Insurance (0.2% of Insured 0.71 Cost of 284.4 Million Pesos)  Crime Insurance 0.46 (0.13% of Insured Cost) Note-1: Periodic maintenance can be done in 2 years (5th and 6th, 10th and 11th year, and so on.)

TABLE 6.9.5-2 OPERATION AND MAINTENANCE COST PER YEAR Unit: Million Pesos at March 2011 Prices Item Total Currency Component (Million Php/Year) Foreign Local Tax Routine Maintenance Cost 6.26 2.24 3.25 0.77 Operation Cost 116.80 3.50 100.45 12.85 O & M Cost per year 123.06 5.74 103.70 13.62 Periodic Maintenance 265.85 94.99 138.06 32.80 (every 10 years) [Note-1] Government Agent 18.52 - 16.54 1.98 Insurance Cost & Tax 10.22 - 8.20 2.02  All Risk Insurance including 9.05 - 7.26 1.79 3rd Party Insurance (0.35% of 3.88 Billion Pesos)  Business Interruption 0.71 - 0.57 0.14 Insurance (0.25% of Insured Cost of 284.4 Million Pesos)  Crime Insurance 0.46 - 0.37 0.09 (0.16% of Insured Cost) Note-1: Periodic maintenance can be done in 2 years (10th and 11th, 20th and 21st year, and so on.)

6.10 INSURANCE COST

Insurance Cost has been estimated as following assumptions and Cost is shown in Table 6.10-1 and Table 6.10-2.

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Table 6.10-1 Insurance Cost during Detailed Engineering Design and Construction Stage Insurance Cost Items Scope of Coverage Insured Amount Rate of Amount Insured (Million Amount Pesos) DED Stage Total 19.31 Professional Accidents during the Indemnity construction period due to Civil Work Cost 0.20% 19.31 Insurance the defect of the Detailed (9,656 Million Pesos) Engineering Design. Construction Stage Total 91.79 Contractor’s All (Sec.-1)Material Damage： Risk Insurance Physical loss and / or including Third Civil Work Cost damage to permanent works, 0.90% 86.90 Party Insurance materials etc. (9,656 Million Pesos)

(Sec.-2)Third Party Liability Marine Cargo Loss and / or damage of Amount of imported Insurance imported materials and materials and 0.20% 4.89 equipments for construction equipments works during the shipment (2,446 Million Pesos) Total 111.11

Table 6.10-2 Insurance Cost during Operation and Maintenance stage Insurance Cost Items Scope of Coverage Insured Amount Rate of Amount Insured (Million Amount Pesos / Year) All Risk Insurance physical loss or damage 1/3 of Civil Work Cost including but not limited to (3,218.6 Million 0.25% 8.05 earthquake, flood, typhoon Pesos) Third Party Death, bodily injury, loss Insurance and damage to third party 500 Million Pesos 0.20% 1.00 due to facility operator’s fault Business Loss of revenue due to any One-half of Interruption interruption caused by loss the estimated revenue 0.25% 0.71 Insurance or damage under “All Risk” in 2015 (284.4 Million Pesos) Crime Insurance Loss and / or damage due to One-half of any illegal act by employee the estimated revenue 0.16% 0.46 or third party. in 2015 (284.4 Million Pesos) Total 10.21 Note: Taxation against Insurance Cost is included in the Ratio of Insured Amount. It consists of Documentary Stamped Tax (12.5%), VAT (12%) and Municipal Tax (0.2%).

6.11 ADMINISTRATIVE COST

Administrative cost has been estimated at 0.6% of construction cost. Estimated cost is Php 57.93 Million.

6.12 SUMMARY OF PROJECT COST

The Project Cost of NAIA Expressway Phase 2 is summarized as shown in Table 6.12-1 and Table 6.12-2.

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TABLE 6.12-1 SUMMARY OF PROJECT COST Unit: Million Pesos in March 2011 prices Utility Item Total Government Private Company 1. Civil Work Total 9,655.85  4,300.00  5,355.85  Civil Work Cost 9,196.05 Physical Contingency (5%) 459.80 2. Repair/Improvement Cost of Phase I 13.80  13.80  Total Repair/Improvement Cost 12.00 Physical Contingency (15%) 1.80 3. Utility Relocation Cost Total 169.42   169.42 Utility Relocation Cost 147.32 Physical Contingency (15%) 22.10 4. ROW Acquisition Cost 947.76 947.76   (Note-1) 5. Detailed Engineering Design (DED) Cost 124.95  124.95  Total Detailed Engineering Design Cost 119.00 Physical Contingency (5%) 5.95 6. Construction Supervision Cost Total 226.45  226.45  Construction Supervision Cost 215.67 Physical Contingency (5%) 10.78 7. Independent Consultant Cost: DED 58.38 29.19 29.19  Stage Total IC: DED Cost 55.60 Physical Contingency (5%) 2.78 8. Independent Consultant Cost: 137.71 68.86 68.85  Construction Stage Total IC: Construction Stage Cost 131.15 Physical Contingency (5%) 6.56 9. Project Management Cost Total 57.93 57.93   Detailed Design Stage (0.2%) 19.31 Construction Stage (0.4%) 38.62 10. Insurance Cost Total 111.10  111.10  DED Stage Total 19.31 19.31   Professional Indemnity Insurance 19.31 (0.2%) Construction Stage Total 91.79  91.79   Contractor’s All Risk Insurance 86.90 including Third Party Insurance (0.9%)  Marine Cargo Insurance (0.2%) 4.89 Grand Total 11,503.35 5,403.74 5,930.19 169.42 Note:  Tentative amount Note-1: Government’s lands such as MIAA, Air Force and LRTA are assumed to be acquired at BIR zonal value

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TABLE 6.12-2 SUMMARY OF PROJECT COST Unit: Million Pesos in March 2011 prices Currency Component Item Total Foreign Local Tax 11. Civil Work Total 9,655.85 3,449.99 5,014.58 1,191.28 Civil Work Cost 9,196.05 3,285.70 4,775.81 1,134.54 Physical Contingency (5%) 459.80 164.29 238.77 56.74 12. Repair/Improvement Cost of Phase I 13.80 4.93 7.16 1.71 Total Repair/Improvement Cost 12.00 4.29 6.23 1.48 Physical Contingency (15%) 1.80 0.64 0.93 0.23 13. Utility Relocation Cost Total 169.42 60.54 87.98 20.9 Utility Relocation Cost 147.32 52.64 76.50 18.18 Physical Contingency (15%) 22.10 7.90 11.48 2.72 14. ROW Acquisition Cost 947.76 - 846.21 101.55 (Note-1) 15. Detailed Engineering Design (DED) Cost 124.95 36.64 74.92 13.39 Total Detailed Engineering Design Cost 119.00 34.90 71.35 12.75 Physical Contingency (5%) 5.95 1.74 3.57 0.64 16. Construction Supervision Cost Total 226.45 65.71 136.48 24.26 Construction Supervision Cost 215.67 62.58 129.98 23.11 Physical Contingency (5%) 10.78 3.13 6.50 1.15 17. Independent Consultant Cost: DED 58.38 20.83 31.29 6.26 Stage Total IC: DED Cost 55.60 19.84 29.80 5.96 Physical Contingency (5%) 2.78 0.99 1.49 0.30 18. Independent Consultant Cost: 137.71 44.23 78.73 14.75 Construction Stage Total IC: Construction Stage Cost 131.15 42.12 74.98 14.05 Physical Contingency (5%) 6.56 2.11 3.75 0.70 19. Project Management Cost Total 57.93 - 51.72 6.21 Detailed Design Stage (0.2%) 19.31 - 17.24 2.07 Construction Stage (0.4%) 38.62 - 34.48 4.14 20. Insurance Cost Total 111.10 - 89.10 22.00 DED Stage Total 19.31 - 15.49 3.82  Professional Indemnity Insurance 19.31 - 15.49 3.82 (0.2%) Construction Stage Total 91.79 - 73.61 18.18  Contractor’s All Risk Insurance 86.90 - 69.69 17.21 including Third Party Insurance (0.9%)  Marine Cargo Insurance (0.2%) 4.89 - 3.92 0.97 Grand Total 11,503.35 3,682.87 6,418.17 1,402.31 Note:  Tentative amount Note-1: Government’s lands such as MIAA, Air Force and LRTA are assumed to be acquired at BIR zonal value

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6.13 CONSTRUCTION EXECUTION PLAN

1) Construction Schedule

Skyway Phase II project which has almost the same scope of work as NAIAX Phase II project was completed in 24 months for construction. DPWH decided to adopt the same construction period of Skyway Phase II which is 24 months. Construction Schedule is shown in Table 6.13-1.

2) Major Material To Be Used

Major material to be used for the project is shown in Table 6.13-2.

3) Major Equipment List

Major equipments to be used for the project is shown in Table 6.13-3.

4) Road for Construction

There is no room/space to construct a road for construction, therefore, existing roads will be utilized with Traffic Management Plan, which shall be prepared during the detailed design stage and properly implemented during construction.

5) Contractor’s Camp

Contractor’s camp will be selected by the Contractor employed by the Concessionaire. Candidate location will be backside of “Park’n Fly” or Manila Bay Reclamation Area where there are still wide vacant lots.

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TABLE 6.13-1 NAIA EXPRESSWAY PHASE II CONSTRUCTION SCHEDULE MONTHS No. Activity 123456789101112131415161718192021222324 NAIA Access Expressway 1. Preparation Work (Mobilization) 2. Earth Work (Approach) 3. Removal of Existing Ramp 4. Pavement Work 5. Drainage Work 6. Steel Structure Fabrication 7. Interchange Ramp Construction 1) Ramp 1 Sales On 2) Ramp 2 Sales Off 3) Ramp 3 Andrew On 4) Ramp 4 Andrew Off 5) Ramp 5 NAIA Terminal 2 On 6) Ramp 6 NAIA Terminal 2 Off 7) Ramp 7 NAIA Terminal 1 Off 8) Ramp 8 Roxas On Off 9) Ramp 9 Mapacabal On Off 10) Recramation On Off 8. Viaduct Construction 1) P1-P17 (Sales St) 2) P18-P21(Sales St) 3) P22-P34 (Andrew Ave.) 4) P35-P47 (Andrew Ave.) 5) P48-P60 (Andrew Ave.)

6-21 6) P61-P72 (Andrew Ave.) 7) P73 (Andrew Ave.) 8) P74-P79 (Andrew Ave.) 9) P80-P105 (Domestic Road) 10) P106-P119 (Domestic Road) 11) P120-P131 (Domestic Road) 12) P132-P136 (Domestic Road) 13) P137-P146 (MIA Road) 14) P147-P148 (MIA Road) 15) P149-P155 (MIA Road) 16) P156-P176 (MIA Road) 9. Miscellaneous Work 10. Toll Facility Installation

At Grade Work 1. Earth Work 2. Pavement Work 3. Drainage Work 4. Miscellaneous Work 5. Toll Facility Installation Source: JICA Study Team

TABLE 6.13-2 MAJOR MATERIAL LIST FOR NAIA EXPRESSWAY PHASE II Material Unit Quantity Remarks

1 Bollow Material for Embankment cu.m 727.48 2 Crushed Aggregate for Base and Sub base Course cu.m 5,712.50 3 Asphalt ton 23,446.20 4 Bituminous Tack Coat, Emulsified Asphalt, SS-1 ton 87.06 5 Fine Aggregate for Asphalt Pavement cu.m 5,424.00 6 Aggregate for Asphalt Pavement cu.m 13,561.00 7 Cement ton 52,562.88 8 Fine Aggregate for Concrete cu.m 44,970.00 9 Aggregate for Concrete cu.m 77,092.00 10 Reinforcing Steel, Grade 60 (Bridge) kg 15,921,413.50 11 DOUBLE METAL BEAM GUARDRAIL (w/Post) l.m 4,645.00 12 Prestressing Steel kg 530,199.00 13 Structural Steel kg 23,099,360.00 14 Metal Decking (8 mm thk) sq.m 75,493.00 15 Concrete Curb l.m 40,447.30 16 Concrete Curb and Gutter l.m 7,305.00 17 RCPC, 610 mm dia. l.m 10,649.00 Source: JICA Study Team

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TABLE 6.13-3 MINIMUM REQUIREMENT OF EQUIPMENT FOR NAIA EXPRESSWAY PHASE II Requirement Equipment Capacity Remarks Number

Dump Track 11 ton 5 Wheel Loder 1.53 m3 3 Motor Grader 14G 3m/200HP 2 Vibratory Roller 11 ton, 125 Hp 2 Tired Roller 12.6 ton 2

Hydraulic Excavator 1.0 m3 3 Backhoe 0.6 m3 3 Vibratory Plate Compactor 7 Hp 3

Track Crane 160 ton, 300Hp 3 Crawler Crane 60T/275Hp 3 Drill Rig for Pile CWV Model TRM35/31 φ1.5～2.5 3

Concrete transit Mixer 5 m3 5 Concrete Pump 60 yd3 2 Concrete Plant 40m3/hr 2 Track Mounted Crane 21-25t, 200Hp 3 Concrete Vibrator Gasoline type 10 Semi Trailer 20 ton 3 Asphalt Paver 4.7 m, 112 Hp 2 Asphalt Distributor 5 ton 2 Asphalt Plant 60 t/hr 2 Lane Marker 8 ton Track 2 Steel girder and structure prefabrication equipment 1 Industrial x-ray equipment at site 2 Ultrasonic Examination Equipment at site 2 Source: JICA Study Team

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CHAPTER 7 ENVIRONMENT AND SOCIAL CONSIDERATION

This Chapter presents Draft Environmental Impact Statement (EIS) and Draft Relocation Action Plan (RAP).

7.1 LEGAL/POLICY FRAMEWORK

7.1.1 Philippines Legal/Policy Framework

Environmental related laws in the Philippines are composed under the Presidential Decree (PD) No.1151 as environmental policy and the Presidential Code (PD) No. 1152 as Environmental regulation in relation to the National policy and regulation, these area shown in Table 7.1.1-1.

TABLE 7.1.1-1 THE GOVERNED LAW ON ENVIRONMENTAL RELATED LAWS Item Governed Law and Decree Remarks General Presidential Decree (PD)No.1151 Environmental policy Presidential Code (PD)No. 1152 Environmental regulation

7.1.1.1 Environment

Major environmental law items are the categories of Natural resources, Protection of wild life and bio-diversity, Forest resources, Mining, Coastal and marine, Ambient air, water quality, Waste and disposal, Land use and resettlement, Conservation of historical and cultural assets, Environmental assessment, National integrated protected area system. Major environmental related laws and decrees are shown in Table 7.1.1-2.

TABLE 7.1.1-2 LIST OF ENVIRONMENTAL RELATED LAWS AND DECREE Item Law, Decree Remarks Natural Constitution Article 12. Close2. Investigation of natural resources, resources development use Presidential Decree (PD)No.1198 Protection of natural environment Protection of Republic Decree No. 826 Preservation of Natural parks and wild life , bio- establishment of wildlife protection diversity committee Republic Decree No. 1086 (1954) Prohibition of capture of Mindoro buffalo (Tamaraw) Republic Decree No.6147 Preservation of Monkey Eating Eagle Statement No. 2141 Preservation of wilderness region AdministrativeorderNo.243(1970) Prohibition of slaughter for buffalo Forest resources Presidential Decree (PD)No.209 Encourage of common forest project Presidential Decree (PD)No. 277 Encourage of report on offender against forest law Presidential Decree (PD)No. 278 Procedural regulation on development application for forest resources and forest land development use Presidential Decree (PD)No. 331 Sustainable forest development (1973) Presidential Decree (PD)No. 389 Regulation on forest recovery Presidential Decree (PD)No. 705 Amendment of regulation on forest (1975) recovery

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Item Law, Decree Remarks Presidential Decree (PD)No. 865 Export of lumber (selective deforestation) Presidential Decree (PD)No. 953 Request of forestation Presidential Decree (PD)No. 1153 Decree of forestation DNR DecreeNo.78(1987) Regulation on permission range for felling and collection of oak, other hard wood DNR Decree No.79 (1987) Establishment of foundation of forest regeneration DNRmemorandumNo.8(1986) Full prohibition of log export Notification No. 818 Diminution of forest Forest development bureau Full prohibition of land possession circular No. 13 (1986) within mangrove area, river area, preservation area, wilderness area, National park, wildlife reserve, experimental forest and etc. Mining Presidential Decree (PD) No.1251 Prospect mining Presidential Decree (PD)No.463 Mining resource development Decree (1974) Presidential Decree (PD)No.1189 Landuse of ex-mining site for (1979) compensation of the land owner Coastal, marine Presidential Decree (PD)No.600 Prevention of marine pollution (1974) Presidential Decree (PD)No. 602 Establishment for oil pollution (1974) management center Presidential Decree (PD)No. 979 Prevention of ocean pollution Ambient air Republic law No. 3931 Establishment of National air, water pollution control committee , definition of pollution and penalty Presidential Decree (PD)No.1181 Air pollution regulation on incidence origin of travelling Presidential Decree (PD)No.1160 Barangay captain Community leader on implementation of law on prevention of public nuisance Circulation No. 247 Appointment of highway patrol guard Circulation No 551 Equipment of prevention devices of motor vehicles Water quality Republic Act No.4850 Establishment of Laguna Lake development Bureau Republic Act No.3931 Establishment of National committee for ambient air pollution management Presidential Decree (PD)No.600 Establishment of Philippine coastal guard, measure for marine pollution Presidential Decree (PD)No.1252 Establishment of foundation for treatment of mining discharge water Presidential Decree (PD)No.602 Establishment of National oil pollution management center Republic Act No.274 Pasig river pollution measures Republic Act No. 361 Establishment of Pasig river development council Circulation No.712 Discharge water regulation for Manila

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Item Law, Decree Remarks bay and Laguna lake DENR Decree No. 34 Classification of water and use DENR Decree No. 35 Regulation on discharge water for Industrial and urban drainage Waste, disposal Presidential Decree (PD)No. 825 Penalty regulation on illegal dump of (1975) disposal, dirt and other wastes Presidential Decree (PD)No. 826 Regulation on treatment responsibility (1975) of solid and liquid wastes by local government Presidential Decree (PD)No.1152 Regulation on treatment method and (1977) treatment management for wastes Land use, Constitution Article 13 Establishment of human protective resettlement committee and their responsibility DPWH Decree No.65 Land use procedure for public project and expressway project DPWH Decree No.120 (1988) Compensation of private land for DPWH project DPWH Decree No.234 (1990) Amendment of compensation of private land for DPWH project Revised administrative code Competence of house of justice on No. 64 private land acquisition by the government DPWH Decree No.65 (1983) Guideline for land use and right of way Presidential Decree (PD)No. 1517 Designation of reserve area at reorganization of urban land use Senate article No. 328 Decree of temporally prohibition for removal of displaced persons Urban development and Housing Procedure for removal of habituated act (1991) peoples Conservation Republic Act No. 4365 Responsibility of National historic of historical , committee on authorization , restoration cultural assets and maintenance for historical assets Republic Act No.4346 Responsibility of protection and propulsion of maintenance for cultural assets within National museum Environmental Presidential Decree (PD) No. Environmental assessment system and assessment 1586 administrative organization Presidential Proclamation No. 3 Industrial sectors with large 2146 environmental impacts and 12 environmentally critical regions National National integrated protected Review of National integrated integrated area system act (1992) protected area protected area system Source: Environmental information maintenance study report (Philippine)

Philippine Government has been ratified international treaties, agreements, and protocols in relation to environmental and social consideration, these are shown as follows:

i) Convention on the international trade in endangered species of wild flora and fauna: 1981 ii) International tropical timber agreement: 1983 iii) United Nations convention on the law of the sea: 1984

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iv) World heritage convention concerning the protection of the world cultural and natural heritage: 1985 v) Montreal Protocol on substances that deplete the Ozone layer: 1991 vi) Vienna convention for the protection of the ozone layer: 1991 vii) Convention on biological diversity: 1993 viii) Basel convention on the control of trans-boundary movement of hazardous wastes and their disposal: 1993 ix) Ramsar convention on wetlands of international importance, especially as waterfowl habitat: 1994 x) Framework convention on climate change: 1994 xi) Kyoto protocol 1998 xii) Cartagena protocol on bio-safety to the convention on biological diversity: 2000 xiii) Stockholm convention on persistent organic pollutants: 2001

7.1.1.2 Involuntary Resettlement

Land acquisition intended for Philippine government projects are governed by a set of laws and guideline which all instrumentalities of the public sector and their contractors are mandated to follow. These regulations that shape the country’s land policy have been amended over the years to adopt them to prevailing local conditions. Social safeguard policies of international multi- lateral organizations that provide assistance to the Philippine government and NGOs have underwent similar updating. These policies of ODA fund providers have to a certain extent influenced implementation guidelines of these Philippine laws to make them a-tuned to universally acceptable involuntary resettlement best practices. This section provides an overview of Philippine laws, and guidelines related to land acquisition.

The 1987 Philippine Constitution sets the basic policy for ownership of property and requires just compensation for expropriation of private property by the State. The Bill of Rights guarantees that:

a. Article III, Section 1: “No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.” b. Article III, Section 9: “Private property shall not be taken for public use without just compensation” and c. Article XII, Section 5: “The State…shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their economic, social and cultural well-being. “By an act of Congress, customary laws governing property rights and relations can be applied in determining the ownership and extent of ancestral domains.

Republic Act (RA) 8974 – “An act to Facilitate the Acquisition of Right of Way (ROW) for National Government Infrastructure Projects (November 2000)” and its implementing Rules and Regulations (IRR) provides the basis for land valuation and the different modes of land acquisition which includes donation, quit claim, exchange or barter, negotiated sale and expropriation. In negotiated sale, the zonal land valuation (issued by the BIR) is first offered to the landowner, if this is rejected then a valuation committee/land appraisers will be commissioned to derive the fair market value for consideration of the landowner. Should negotiations fail, then expropriation proceedings will be pursued by the government. The law also states that valuation of improvements and/or structures on the land to be acquired shall be based on replacement cost.

The Land Acquisition, Resettlement, Rehabilitation and Indigenous Peoples’ Policy (LARIPP) and its Infrastructure Right of Way (IROW) manual for World Bank assisted project of the Department of Public Works and Highways (DPWH) had been developed for use in World Bank-

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assisted infrastructure projects. The LARIPP that had been endorsed by DPWH management, contains a harmonized version of Involuntary Resettlement Policies that conforms to most relevant Philippine government laws but at the same time satisfies World Bank’s social safeguard policy. The guidelines cover all of the important IR policies which includes: the legal framework, PAFs eligibility, compensation and other entitlements, indigenous peoples and other vulnerable groups, public participation, grievance redress, institutional arrangements and monitoring & evaluation. While the LARIPP was prepared for World Bank projects, it had been adopted for other Official Development Assistance (ODA) infrastructure initiatives.

Executive Order 1035 (1985), provides for the procedures and guidelines for the expeditious acquisition of properties and rights by the Philippine Government for infrastructure and other government projects. Financial assistance to displaced tenants, cultural minorities and settlers equivalent to the average annual gross harvest for the last 3 years or not less than PhP15,000 per hectare is provided. In addition, disturbance compensation to the agricultural lessees equivalent to 5 times the average gross harvest during the last 5 years. Should there be any improvements on the land, these will be compensated based on Commonwealth Act 141.

Republic Act 6657 (1988) otherwise known as the Comprehensive Agrarian Reform Law provides for in Section 28 that landowner shall retain his share of any standing crop un-harvested at the time the DAR shall take possession of the land under Section 16 of this Act, and shall be given a reasonable time to harvest.

Republic Act 6389 provides for disturbance compensation to agricultural lessees equivalent to 5 times the average gross harvest in the last 5 years.

Commonwealth Act 141 Section 112 (Public Land Act) prescribes a 20 meter strip of land reserved by the government for public use. Payment for damages in the case of land acquisition will only be for land improvements.

Presidential Decree 635 amended Section 112 of CA 141 increasing the width of the reserved strip of 20 meters to 60 meters.

EO 113 (1995) and EO 621 (1980) states that national roads shall have a ROW width of at least 20 meters in rural areas which may be reduced to 15 meters in highly urbanized areas. These directives also provides that the ROW shall be 60 meters in unpatented public land, 120 meters through natural forested areas of aesthetic or scientific value.

MO 65, Series of 1983 provides that payment will be given to landowners for the use of the easement of ROW equivalent to the affected land value. Government retains the right to acquire a 20-60 m width of land for ROW in accordance to CA 141. Only land improvements will be compensated.

Rule 9.5.2.5 of DA DAO 6 (1998) which is the IRR of Republic Act 8435 (1997) popularly known as the “Agriculture and Fisheries Modernization Act” provides that sufficient disturbance compensation shall be given to the farmers whose livelihoods are negatively affected by the land use conversion…”

Indigenous People’s Rights Act (IPRA) of 1997 sets the conditions, requirements, and safeguards for plans, programs and projects affecting Indigenous Peoples (IPs). It spells out and protects the rights of IPs. Among the important provisions includes:

a. The right to their ancestral domains (Chap III, Sec. 11);

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b. The right to an informed and intelligent participation in the formation and implementation of any project, that will impact upon their ancestral domains (Chap III, Sec 7b);

c. The right to participate fully, if they so choose, at all levels of decision-making in matters which may affect their rights, lives and destinies through procedures determined by them (Chap IV, Sec 16);

d. The right to receive just and fair compensation for any damages inflicted y or as a result of any project (Chap III, Sec 7b);

e. The right to stay in their territory and not to be removed from that territory through any means other than eminent domain. If relocation is necessary as an exceptional measure, it can only take place with the free and prior informed consent of the IPs and ICCs concerned (Chap III, Sec 7c);

f. The right to be secured in the lands to which they have been resettled; (Chap III, Sec 7d);

g. The right to determine and decide their own properties for the lands they own, occupy or use (Chap IV, Sec 17); and

h. The right to maintain, protect and have access to their religious and cultural sites (Chap IV, Sec 33).

NCIP Administrative Order No. 1, Series of 2006 (Free and Prior Informed Consent Guidelines of 2006) provides the procedure for obtaining the “Free and Prior Informed Consent” (FPIC) for affected communities. It narrates the process for conducting Field Based Investigation (FBI) and obtaining the “Certification Precondition” (CP) from the NCIP, which are two basic requirements prescribed under the Indigenous People’s Rights Act (IPRA law of 1997) for project to be implemented within declared Ancestral Lands of Ethnic Minorities.

7.1.2 JICA Guidelines and Philippine Social and Environmental Consideration

In order to determine the completeness of the EIA outline vis-a-vis latest Philippine DENR/EMB and current JICA, Table 7.1.2-1 shows the matrix that compares the outline of both DENR/EMB and JICA EIA reports.

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TABLE 7.1.2-1 COMPLETENESS OF EIS BASED ON CURRENT DENR/BEM AND JICA OUTLINES CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS I. Executive Summary I. Executive Summary  Project Fact Sheet  Significant findings An Executive Summary needs to be prepared. I. Executive Summary  Process Documentation  Recommendations Components of the Fact Sheet (EMB Outline)  Summary of Baseline are found in Chapters 1 and 2. Conditions II. Legal/Policy Framework Legal framework needs to be prepared. II. Legal/Policy (Legal/policy framework is not Framework required under the latest EMB EIA outline). III. Project Description II. Project Description III. Project Description 2.1. Project Location and X X Area

7-7  Environment Study Area X X Map 3.1. Project location map  Geographic coordinates of including areas X Project Site affected  Rationale for selection of X primary & secondary X impact areas. 2.2. Project Rationale X 2.3. Project Alternatives X 2.4. Project Components X 3.2. Description of project in terms of its geographical, X ecological and temporal context.  Major Components X  Other Supporting Facilities X3.3. Off-site investments The other supporting facilities (EMB (i.e. access roads, Outline)/ Off-site investment have been X pipelines, discussed in a general manner as the EIA was

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS powerplants, conducted simultaneously with the Feasibility housing, raw Study. Details will have to come during the materials, etc.) detailed design phase.  Pollution control devices Specific anti-pollution devices (i.e. oil and facilities these are separators, anti-noise walls, septic tanks in serving workers camp, etc.) should be proposed.  Footprint of proposed Footprint of proposed project layout should be project layout attached to the report. 3.4. Discussion on the

need for a resettlement plan X For updating (RAP) or social development plan

7-8 2.5. Process/Technology Options  Production Process/ X For updating construction method  Power generation and water A general description on the source of power

supply system as well as water supply need to be provided.  Waste Management System The description of the waste management X system (EMB Outline) is very general and needs to be further elaborated. 2.6. Project Size  Total project size Needs to be updated as there had already been X portions of the overall road project that had been built (i.e. Phase II)  Annual Production rate & working days/hrs if process NA industry 2.7. Development plan, For updating Description of Project X

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS Phases and Corresponding Time frame.  Pre-construction X  Construction X  Operations & Maintenance X  Abandonment X 2.8. Manpower  Manpower requirements X For updating  Expertise/skills required X For updating  Nature & Estimated number of positions for X For updating men/women/ethnic 7-9 minorities 2.9. Indicative Project Investment Cost III. Baseline Data IV. Baseline Data Baseline data for EMB Outline are already incorporated in Chapter III (Analysis of Environmental Impact) Description and Assessment of environmental study area in terms of:  Physical conditions X Biological conditions For updating (trees along alignment have  already been cut due to road widening project X by URPO)  Socio-economic For updating conditions  Cumulative impact Section 5.4 (Population, Development and (takes into account X Environmental Linkages of the Project) which

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS impact with other is actually Cumulative Impact assessment projects in the area not needs to be updated. related to the project.  Citation of information X sources IV. Environmental III. Analysis of IV. Environmental Impacts In the DENR/EMB EIS format, the Impacts and Environmental Impacts environmental baseline, project environmental Mitigation Measures impacts and proposed mitigation measures are integrated into one chapter. Whereas in the JICA outline, the Environmental Baseline is in a separate chapter and the combined Environmental Impacts and Mitigation Measures are found in another chapter.

7-10 3.5. Land Prediction and Assessment of the project’s likely: 3.5.1. Landuse and  Positive Impacts X Classification  Discussion on X  Negative Impacts X Discussion on the land-use conflict was more inconsistencies and possible on the conversion of a number of commercial conflicts of project with and residential lands into road. existing landuse zoning ordinance  Discussion on potential X Identifies Mitigation X change due to project Measures for negative implementation environmental impacts Same as above including those that cannot be mitigated. 3.5.2. Geology/ Geomorphology Discussion on Projected Explores possible X change as a result of project enhancement measures implementation which for positive impacts

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS includes:  Change in surface Not necessary as the existing landuse is road. topography  Change in subsurface/ Not necessary as only board pilings will be underground done that affects the subsoil. geomorphology  Inducement of subsidence/ X collapse  Inducement of landslides or Not applicable other hazards. Identified and quantified the extent and quantity of available data, essential 7-11 data gaps, and uncertainties associated with predictions  Essential gaps;  Uncertainties with predictions Contents of the EIS were based on the scope  Specifies topics that do agreed with DENR/EMB representatives, not require further stakeholders, project proponent and EIS attention preparers. 3.5.3. Pedology Analyze project impact and provide mitigation measures for:  Erodability Potential Not Applicable  Bank Stability Not Applicable  Change in Soil Not Applicable Quantity/fertility

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS 3.5.4. Terrestrial Biology Analyze project impact and provide management measures for the following:  Vegetation removal and X loss of habitat  Threat to existence of Not necessary. The project area is an urban important species environment where only domestic animals (i.e. cats, dogs, etc.) and those wildlife (i.e. rats, pigeons, etc.)That had adapted to the human environment are present.  Threat to abundance, frequency and distribution Not applicable 7-12 of important species.  Hindrance to wildlife Not applicable species 3.6. Water 3.6.1. Hydrology/Hydrogeol X ogy Analyze project’s impact and provide management measures for:  Change in drainage Not applicable morphology  Change in stream, lake Not applicable water depth  Reduction in stream Not applicable volumetric flow  Inducement of flooding X This is related to flooding of adjacent residential/commercial/institutional areas due to clogging of drainage canals by construction

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS debris.  Water resources use and Not applicable completion  Reduction/depletion of Not applicable groundwater flow 3.6.2. Oceanography Analyze project’s impact and provide a management measure for:  Change in circulation Not Applicable pattern  Change in stream, lake water depth 7-13  Change in bathymetry 3.6.3. Water Quality  Identify specific source of X pollution load  Discuss assimilative Not necessary as EMB in their “Philippine capacity of receiving water Environmental Quality Report (1990-1995)” body had declared that the Paranaque River traversed by the project is Class D. Water Quality Base-line Sampling had also not been required under the agreed scoping matrix.  Include as part of Environmental Same as above Management Plan and Monitoring Plan.  Sampling Map Same as above 3.6.4. Freshwater or Marine Ecology  Identify source of threat to Same as above

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS ecology and discuss assimilative capacity of receiving ecosystem  Threat to abundance, frequency and distribution Same as above of species  Loss of important species Same as above  Loss of habitat Same as above 3.7. Air 3.7.1. Meteorology/Climatol X ogy  Discuss project’s possible X effect on local climate 7-14  Discuss project’s Project’s contribution to global Greenhouse contribution to global gas problem needs to be provided using greenhouse gas updated air-quality modeling results. 3.7.2. Air Quality & Noise  Identified specific source of X pollution load  Discussion on Assimilative X Needs updating. Current and projected capacity considering vehicular traffic may have changed since the ambient air quality/noise EIS preparation. levels in the area. 3.8. People 3.8.1. Discussion on Project X Needs updating Displaced Persons 3.8.2. Discussion on A short discussion on possible in-migration migration patterns resulting from the hiring of migrant workers resulting from project can suffice. implementation 3.8.3. Discussion on IPs and Not applicable

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS culture/ lifestyle 3.8.4. Discussion on public X health issues relating

to project implementation 3.8.5. Discussion on benefits X of local people from the project. 3.8.6. Discussion on project X impact on deliver of basic service to local people and resource completion in the area.

7-15 3.8.7. Discussion on project X impact on local traffic Needs updating conditions. 3.8.8. Institutional Needs updating as the project is to be Arrangements implemented under the PPP scheme. (accountable persons/ office) for project. 3.8.9. Discussion on involuntary resettlement impacts such as:  Identify affected properties X Needs updating.  Relocation of Displaced X Needs updating Persons  Devaluation of affected Needs updating. Impact is more on increase in properties X land valuation of adjacent properties not affected by the road project. V. Analysis of (See Item 2.3 above) V. Analysis of Alternatives

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS Alternatives Comparison of alternatives to The comparison of project alternatives have the proposed project including been presented on a conceptual approach and the “No Project” scenario in focus of discussions is in the suitability of the terms of: alternatives including a “No Project” scenario; least number of structures to be affected; and vehicle speed (with and without project).  Potential environmental Section 2.3 needs to be updated to show three X impacts alternatives namely: a) Alternative 1 –  Mitigation measures approved road alignment; b) Alternative 2 –  Cost (capital & recurring) section in Domestic Road to be shifted to the  Suitability banks of the Paranaque River; and c) Alternative 3 – no project scenario.  Institutional, training and

7-16 Difference between Alternative 1 and 2 is the monitoring requirements number of households and  Economic and Financial Structures/buildings to be affected. feasibility Alternative 2 is expected to have a much more  Basis for selection of X involuntary resettlement issues that project alignment Alternative 1. Alternative 3 will further  Justification for aggravate the vehicular traffic problem in the recommended emission MIAA complex, discourage tourist and level and approaches to investors to visit the country; can affect the pollution prevention and financial viability of commercial and tourism abatement establishments in the privatized Villamor Airbase portion fronting NAIA Terminal 3 and may even cause a security problem as the Philippine Air force may have difficulty responding to security threats or disaster relief operations during natural calamities. Discussions on the other basis for the preferred alternative selection (i.e. economic, financial, engineering, social and institutional

CATEGORY LATEST DENR/EMB OUTLINE JICA OUTLINE REMARKS consideration) can be made but on a conceptual basis. VI. Risk Assessment IV. Environment and Ecological Risk Assessment Identify and provide management measures for:  Chronic risks X  Acute risks/ Worst case X scenario VII. Environmental V. Impact Management Plan X VI. Environmental X Needs updating Management Plan Management Plan VIII. Public Participation VI. Social Development Plan X VII. Consultation X Needs updating

7-17 and IEC IX. Social Development May need updating depending on the result of (See Item VIII) (See Item 3.4 above) Plan the consultation meetings. X. Environmental VI. Environmental X Needs updating. There are lesser Project Monitoring Compliance Monitoring Affected Persons (PAPs) that will be relocated. XI. Emergency VII. Emergency Response X Needs updating to conform to the PPP Response Plan Policy and Generic program. Guidelines XII. Abandonment/ VIII. Abandonment/ X Decommissioning Decommissioning/ Rehabilitation Policies and Generic Guidelines XIII. Institutional IX. Institutional Plan for X Needs updating as this project will be Arrangements for EMP Implementation implemented under the PPP. Project Implementation

7.1.2.1 Gap Analysis

A Gap Analysis was likewise performed with regards to the latest social safeguards policy adopted by JICA as compared to the land acquisition and resettlement related laws of the Philippines. The Gap Analysis is found in Table 7.1.2-2.

7.1.2.1.1 Environment

The NAIAX project is the continuation of an existing project, and as such the ECC issued in 2002 includes a phase II (detailed design and construction) not just phase I. While the construction of phase I was completed in 2010, the pursuit of Phase II had not been made until the reporting time. Likewise, the environmental monitoring report that is a basic requirement by EMB for ongoing project, had not been submitted. Formal representation was pursued by DPWH with EMB to determine the status of the ECC issue to the NAIAX project. After over a month of waiting, a favorable response was issued by DENR-EMB recognizing the validity of the ECC that it had earlier issued to the project.

7.1.2.1.2 Resettlement

The presentation of the relevant Philippine government laws and guidelines related to land acquisition as well as those World Bank/ADB social policy safeguards would yield a number of inconsistent policies. These inconsistent policies will have to be harmonized in order that the project would be able to proceed with minimal regulatory encumbrances.

Among the inconsistent policy between the Philippine Government laws with that of the World Bank social safeguard policy includes the following among others:

a. Compensation for affected land if acquisition is through negotiated sale as provided for in RA 8974, is based on the zonal valuation of the area provided by the Bureau of Internal Revenue (BIR); and only when the offered price is rejected by the affected landowner, will an appraisal committee be commissioned to derive the fair market value of the affected land which may be comparable to replacement cost, and transaction cost will be deducted from compensation due to PAFs, while the Banks’ Social Safeguard policies calls for full replacement cost;

b. Philippine government’s definition of severely affected person is one that loss 20% or more of agricultural land or when the residual portion of the plot is no longer economically viable for cultivation, where as the Banks’ policy set the figure at 10% or more of the productive land or even less than this figure when the residual area is no longer economically viable;

c. The Banks also requires proponent of projects to give special attention to affected vulnerable groups (i.e. PAFs with heads that are women, IPs, retired, disabled, etc.) while the Philippine government is silent on this aspect.

There are other operational gaps between the Philippine government laws and the Bank’s social safeguard policies which can are described in the subsequent section, however, these inconsistencies are not critical and can be harmonized in the project resettlement policy. Table 7.1.2-2 lists down the relevant Philippine and World Bank/ADB land acquisition related laws and policies and propose a harmonized guidelines for adoption in the project.

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TABLE 7.1.2-2 GAP ANALYSIS BETWEEN WORLD BANK/JICA SOCIAL SAFEGUARD POLICIES AND PHILIPPINE LAND ACQUISITION LAWS AND GUIDELINES

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines 1. Basic Policy Involuntary resettlement and The Bill of Rights of the 1987 Philippine Constitution sets the No gap Involuntary resettlement should be loss of means of livelihood are basic policy for the acquisition of private property by the State, avoided where feasible.1 which stipulates that… to be avoided when feasible No person shall be deprived of life, liberty, or property without by exploring all viable due process of law, nor shall any person be denied the equal alternatives. (JICA GL) protection of the law (Article III, Section 1), and, Private property shall not be taken for public use without just compensation (Article III, Section 9);

7-19 DPWH LARRIP, Chapter II E 1 a Involuntary resettlement should be avoided where feasible 2. Land acquisition The Public Land Act for government - a strip of 20-60m of land which the title or free patent described of is not absolutely owned by him/her but the government can projects exercise its right to use the are reserved by it for public use … no payment shall be made for land acquired under the quit claim(LARRIPP pp4) …but the owner still retains ownership over the land (MO65, Series of 1983) EO 1036 -Government has the power to expropriate in case agreement is not reached. 3. Compensation Compensation must be based RA 8974 prescribes that:  Zonal land valuation is not Eligible PAF with TCT will be entitled package on the full replacement cost as  Land valuation (first offer to PAF) be based on current zonal necessarily the fair market to: 2 much as possible. (JICA GL) valuation; if this is rejected by PAFs, an appraisal committee value. Fair market value is  Cash compensation for loss of land at will be formed to derived the fair market value. equivalent to replacement cost 100% replacement cost at the

1 Section 1.E, Chapter II, LARRIP, DPWH, February 2007 2 Section 5, Chapter III, LARRIP, DPWH, February 2007.

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines OP4.12 Para 2 (c) Displaced  Valuation for affected land improvements /structures is based however, this will be offered to informed request of the PAFs; people should be assisted in on replacement cost. the PAHs after he/she had  Cash compensation for loss of a part their efforts to improve their  Cash compensation for perennials of commercial value as rejected the first two offers or whole structures as the case may livelihoods and standards of determined by the DENR or concerned appraisal committee. (i.e. land donation and BIR be, at 100% replacement cost; living or at least to restore zonal valuation).  Cash compensation for loss of them, in real term, to pre- perennials of commercial value as displacement levels or to determined by DENR or concerned levels prevailing prior to the appraisal committee beginning of project Eligible PAF without TCT will be implementation, whichever entitled to: higher.  Cash compensation for loss of a part or whole structures as the case may Provide prompt and effective be, at 100% replacement cost with 7-20 compensation at full not deduction for salvage value; replacement cost for losses of  Cash compensation for loss of assets perennials of commercial value as (WB: 6-(a)-3) determined by DENR or concerned appraisal committee 2 Displaced persons need to be  DPWH-LARRIP adapts some WB’s meaningfully consulted, policy; “People unavoidably compensated for lost/damaged displaced should be compensated and assets and assisted in restoring assisted, so that their economic and or improving their living social future would be generally as standards and livelihood.… favorable as it would have been in the displaced persons should absence of the project.” likewise be assisted in restoring their livelihoods and living standards (World bank)

OP4.12 para 11; If “…sufficient land is not available at a reasonable price, non-land-based option built

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines around opportunities for employment or self- employment should be provided in addition to cash compensation…” 4. Disturbance WB OP4.12 Para 6(b): (i) EO 1035  Appropriate assistance to be provided Compensation provided assistance (such as -Disturbance Compensation is the amount given to agricultural No gap. LARIPP guidelines to shifting PAFs in accordance to moving allowances) during lessees severely affected by the project equivalent to 5 times the provides for adequate assistance LARRIP guidelines which includes: relocation; and (ii) provided average annual gross harvest during the last 5 years as stipulated to PAFs. o Disturbance Compensation for with residential housing, or under, lessees of severely affected, housing sites, or required DPWH LARRIP guidelines provided for the following assistance: Provision of replacement agricultural land equivalent to 5 agricultural sites for which a - Disturbance Compensation – for agricultural land severely agricultural sites to shifting times the average of gross harvest combination of productive affected, the lessees are entitled to disturbance compensation PAFs is not appropriate as the for the past 3 consecutive years but 7-21 potential, locational equivalent to 5 times the average of gross harvest for the past 3 displaced persons are non- not less than Php15,000 advantages, and other factors consecutive years but not less than Php15,000 farmers and affected lands are  -Income Rehabilitation assistance is at least equivalent to the -Income Loss. For loss of business/income, the PAFs will be mostly government institutional for PAFs losing sales/income not to advantages of the old sites. entitled to an income rehabilitation not to exceed PhP 15,000 for lands. exceed PhP 15,000 for severely severely affected structures, or to be based on the latest copy of the affected structures, or to be based on PAF’s tax record for the period corresponding to the stoppage of the latest copy of the PAF’s tax business; record for the period corresponding - Inconvenience Allowance in the amount of P10,000 will be paid to the stoppage of business; to PAFs with severely affected structures which will require o Inconvenience Allowance in the relocation; amount of P10,000 to be paid to - Rehabilitation assistance in the form of skills training and other shifting PAFs with severely affected development activities to be provided to PAFs in the amount of structures - Rehabilitation assistance P15,000 per family per municipality should their present means of in the form of skills training and livelihood is no longer viable and there is a need to have an other development activities to be alternative income source. provided to PAFs in the amount of - Rental subsidy will be provided to PAFs under the following P15,000 per family per municipality conditions: should their present means of a. the affected properties are for residential use only and the PAFs livelihood is no longer viable and are severely affected thus requiring relocation; there is a need to have an alternative

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines b. The PAFs are physically residing in the affected structure at the income source; and time of the cut-off date o Rental subsidy will be provided to c. The amount to be given is equivalent to the prevailing average PAFs under the following monthly rental for a similar structure of equal type and dimension conditions: of the affected house; a. the affected properties are for d. The amount will be given for the period between the payment of residential use only and the PAFs house compensation and payment of land compensation. are severely affected thus -Transportation assistance will be provided to relocating PAFs. requiring relocation; Informal settlers in urban centers who opt to go back to their place b. The PAFs are physically residing of origin in the provinces or be shifted to government relocation in the affected structure at the time sites, will be provided free transportation. of the cut-off date c. The amount to be given is equivalent to the prevailing 7-22 average monthly rental for a similar structure of equal type and dimension of the affected house; d. The amount will be given for the period between the payment of house compensation and payment of land compensation.  Transportation assistance will be provided to shifting PAPs during actual transfer to relocation site or to their place of origin in the Province.  Provide suitable relocation site to displaced persons in cooperation with the concerned local government unit and National Housing Authority (NHA). 5. Basic Policy- When population DPWH LARRIP guidelines (Chapter II, Section E, 1): a. Where population displacement is Mitigation of IR displacement is unavoidable, b. Where population displacement is unavoidable, it should be No gap unavoidable, it should be minimize by when effective measures to minimize by exploring all viable project options. exploring all viable project options.

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines unavoidable minimize impact and to c. People unavoidably displaced should be compensated and b. People unavoidably displaced should compensate for losses should assisted so that their economic and social future would be be compensated and assisted so that their be taken. (JICA GL) generally as favorable as it would have been in the absence of the economic and social future would be project. generally as favorable as it would have been in the absence of the project. 6. Income People who must be resettled No gap People unavoidably displaced should be Restoration involuntarily and those whose compensated and assisted, so that their means of livelihood will be economic and social future would be hindered or lost must be Same generally as favorable as it would have sufficiently compensated and been in the absence of the project.1 supported, so that they can improve or at least restore their standard of living, 7-23 income opportunities and production levels to pre- project levels. (JICA GL) 7. Schedule of Compensation and other kind Republic Act 8974(2000) and its IRR: the State shall ensure that  The time frame prescribed as Entitlement compensation and other payment of assistance must be provided owners of real property acquired for national government to when entitlement assistance must be provided to PAFs infrastructure projects are promptly paid just compensation. prior to displacement. (JICA compensation and assistance prior to displacement. GL) will be provided to the PAFs AO 50 (1999) under the country’s regulation Expropriation: proceedings before the proper court under the WB OP4.12 para 10: …taking following guidelines: has been presented in a land and related assets may (a) Upon the filing of the complaint in a court of law, and after due manner to provide project take place only after notice to the defendant, the implementing agency shall proponents flexibility in compensation as been paid immediately pay the owner of the property the amount equivalent preparing their Resettlement and, …resettlement sites and to the sum of (1) one hundred percent (100%) of the value of the Action Plans. moving allowance have been property based on the current relevant zonal valuation of the BIR; and (2) the value of the improvements and/or structures as provided to the displaces determined under Section 7 hereof; persons. (b) In provinces, cities, municipalities and other areas where there is no zonal valuation, the BIR is hereby mandated within the period of sixty (60) days from the date of the expropriation case, to come up with a zonal valuation for said area; and (c) In case the completion of a government infrastructure project is

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines of utmost urgency and importance, and there is no existing valuation of the area concerned, the implementing agency shall immediately pay the owner of the property its proffered value taking into consideration the standards prescribed in Section 5 hereof. Upon compliance with the guidelines above-mentioned, the court shall immediately issue to the implementing agency an order to take possession of the property and start the implementation of the project. Before the court can issue a writ of possession, the implementing agency shall present to the court a certificate of availability of funds from the proper official concerned. In the event that the owner of the property contests the implementing agency’s proffered value, the court shall determine the just compensation to be paid the owner within sixty (60) days

7-24 from the date of filing of the expropriation case. When the decision of the court becomes final and executory, the implementing agency shall pay the owner the difference between the amount already paid and the just compensation as determined by the court. 8. Preparation of For projects that entail large- DPWH DO 187 series 2002： No gap  A land Acquisition Plan and RAP. scale involuntary resettlement,  A Land Acquisition Plan and Resettlement Action Plan Resettlement Action Plan (LARAP) resettlement action plans must (LAPRAP) shall be prepared for all projects using a shall be prepared for all projects with be prepared and made standardized compensation package. involuntary resettlement impacts.  LARRIP Guidelines 3rd edition, Chapter II, Section E1, available to the public. (JICA  People affected should be fully GL) “People affected should be fully informed and consulted on informed and consulted on resettlement and compensation options. Displaced person should be resettlement and compensation meaningfully consulted and options. should have opportunities to participate in planning and implementing resettlement programs. (WB: 2-(c)) 9. Consultation In preparing a resettlement EO 1035: The DPWH LARRIP guidelines  In preparing a LARAP, meaningful Meetings action plan, consultations  Stakeholder participation is done early in the feasibility conforms to the World Bank public consultations must be held with must be held with the affected study stage, where those concerned are informed on the social safeguard policy and at the the affected people and their

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines people and their communities project, its benefits, requirements and environmental same time complies with communities based on sufficient based on sufficient impacts. It is also in these venue that the proponent first Philippine regulations related to information made available to them in information made available to ask the PAFs to donate the affected land, which is public consultation meetings. advance. them in advance. (JICA GL) followed by other modes of land acquisition.  Public Disclosure of LARRAP to DENR DAO 96-37 Public Disclosure of LARRAP major stakeholders will be an essential Displaced person should be  Proponents are required to hold public information has not been specifically part of the public consultation process. meaningfully consulted and campaign and secure proof of social acceptability for prescribed in the guidelines. should have opportunities to their projects from the stakeholders as a requirement for participate in planning and securing environmental clearance. implementing resettlement DPWH LARRIP programs. (WB: 2-(c))  Chapter V provides the mechanism for public consultation and participation. It conforms to RA 8974 and World Bank requirements for public consultation. 7-25 Provides for grievance redress mechanism and participation of IPs and vulnerable groups in resettlement planning. DPWH IROW Procedural Manual  Section 2.6 provides guidelines in the conduct of public consultations for infrastructure projects.  LARRIP Guidelines 3rd edition, Chapter II, Section E1, “People affected should be fully informed and consulted on resettlement and compensation options. 10. PAFs Appropriate participation of - Same - No gap Active and meaningful participation of participation in affected people must be affected people must be promoted in meetings. promoted in planning, planning, implementation, and implementation, and monitoring of LARAP. monitoring of resettlement action plans. (JICA GL)

Displaced person should be meaningfully consulted and should have opportunities to participate in planning and

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines implementing resettlement programs. (WB: 2-(c)) 11. Language to be When consultations are held, None There is no specific guidelines When consultations are held, used in explanations must be given in that require consultation explanations must be given in a form, consultation a form, manner, and language meetings be conducted in a manner, and language that are meetings that are understandable to the specific language. Literacy levels understandable to the affected people. affected people. (JICA GL) even in the rural areas are at a level where people knows how to read and right in English and Pilipino. 12. Grievance Appropriate and accessible IRR for RA7279 (Urban Development and Housing Act) No gap. The grievance redress The grievance redress mechanism as Mechanism grievance mechanisms must  Prior to resettlement, the Urban Poor Affairs Office or Dept. of mechanism of the LARRIP prescribed in the DPWH LARRIP be established for the affected Welfare and Development of LGUs, which are also responsible guidelines is acceptable. guidelines is to be adopted for the project

7-26 for census, serve as the focal persons for grievance redress. people and their communities. resettlement action plan.  After resettlement had been effected, the community relations (JICA GL) officers of the site owner institutions are the contact office for grievances.  Any grievances addressed to those staff/officers are to be conveyed to the Local Inter-Agency Committee, which includes the Human Rights Commission and Presidential Commission for the Urban Poor as members, for consideration. DPWH LARRIP  Chapter VI provides for the grievance redress mechanism to be followed during land acquisition for infrastructure projects. 13. Census of PAPs Affected people are to be EO 1035: DPWH IROW Manual Affected people are to be identified and identified and recorded as  Stakeholder participation is done early in the feasibility study prescribes the conduct of recorded as early as possible in order to early as possible in order to stage, where those concerned are identified and informed on preliminary social surveys and establish their eligibility through an establish their eligibility the project, its benefits, requirements and environmental initial inventory of loss for big initial baseline survey (including through an initial baseline impacts. This activity is followed by inventory of assets to be projects (>PhP300 million) the population census that serves as an survey (including population affected and negotiations for cost of land. information generated of which eligibility cut-off date, asset inventory, census that serves as an DENR DAO 96-37 will be used in the Feasibility and socioeconomic survey), preferably at eligibility cut-off date, asset  Proponents are required to hold public information campaign Study. the project identification stage, to prevent inventory, and socioeconomic involving stakeholders and secure proof of social a subsequent influx of encroachers who survey), preferably at the acceptability for their projects from the same as a requirement wish to take advance of such benefits

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines project identification stage, to for securing environmental clearance prevent a subsequent influx of DPWH IROW Procedural Manual encroachers of others who Section 2.6 (Preparation of LAPRAP) prescribe that a census, wish to take advance of such socio-economic survey and inventory of loss be conducted for benefits. (WB OP4.12 Para.6) all projects early in the planning phase. This will be done only after the project had been approved by DPWH and NEDA, and that topographic surveys of the road alignment and parcellary surveys of landownership had already been completed. Section 2.1 (Project Identification, Feasibility Study, and IROW Action Plan Preparation) Prescribes that if the project cost is more than P300 milllion, preliminary works (IROW Action Plan) done as part of the Feasibility Study can be pursued to 7-27 establish initial baseline information and costs for inclusion in the FS, and these information will be essential for the final surveys mentioned above can refer to. 14. Eligibility Eligibility of benefits RA 7279 provides the definition of “professional squatters” which No gap. DPWH LARRIP LARRIP (pp8, 2-a) Criteria for includes, the PAPs who have are not qualified under the urban development and housing guidelines conforms to RA 8974 The absence of a formal legal title to land PAPs formal legal rights to land program. It also provides for mechanisms to deal with these and World Bank requirements. by some affected groups should not be a (including customary and individuals or groups/syndicates. bar to compensation, especially if the traditional land rights Executive Order 129 had established the mechanism against title can be perfected; particular attention recognized under law), the professional squatters and syndicates. should be paid to households headed by PAPs who don't have formal women and other vulnerable groups,… legal rights to land at the time DPWH LARRIP of census but have a claim to  Chapter III provide the guidelines for PAFs eligibility as well Criteria for Eligibility for compensation:3 such land or assets and the as entitlement compensation on every type of relevant loss. a. Landowners PAPs who have no  Legal owners (agricultural, recognizable legal right to the Executive Order No.153 (1999)： Instituting the National Drive to residential, commercial and land they are occupying. (WB Suppress and eradicate Professional Squatters and Squatting institutional) who have full title, OP4.12 Para.15) Syndicates；the Housing and Urban Development Coordinating tax declaration, or who are

3 Section A, Chapter III, LARRIP, DPWH, February 2007

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines Council (HUDCC) and the Department of Justice (DOJ), and the covered by customary law (e.g. Displaced persons may be National Police Task Force are authorized to prevent squatters. possessory rights, usufruct, etc.) classified in one of the or other acceptable proof of following three groups: ownership. (a) those who have formal b. PAF with Structures legal rights to land (including  Owners of structures who have customary and traditional full title, tax declaration, or who rights recognized under the are covered by customary law laws of the country); (e.g. possessory rights, usufruct, (b) those who do not have etc.) or other acceptable proof of formal legal rights to land at ownership; the time the census begins but  Owners of structures, including have a claim to such land or shanty dwellers, who have no 7-28 assets—provided that land title or tax declaration or such claims are recognized other proof of ownership; under the laws of the country  Renters. or become recognized through a process identified in the resettlement plan (see Annex A, para. 7(f)); and19 (c) those who have no recognizable legal right or claim to the land they are occupying. 15. Priority for Preference should be given to Republic Act 8974 (2000): Contains the various modes of land Not applicable as the affected Not applicable. The PAFs are none Land for Land land-based resettlement acquisition which includes land swapping or “land for land”. properties are non-agricultural farmers nor do they depend on

compensation strategies for displaced lands mostly owned by agriculture based livelihood for their DPWH LARRIP, persons whose livelihoods are Chapter II (Legal Framework) adopts the RA8974 modes of land government agencies. subsistence. land-based. (WB OP4.12 acquisition which includes land swapping or “land for land” Para.11) compensation. Chapter III (Policy on Eligibility, compensation and other entitlements) enumerates the allowable compensation for affected assets which includes land swapping or “land for land”.

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines 16. Base of OP4.12 Para 2 (c); as much as DPWH LARRIP guidelines (Chapter II, Section E, 1): a. Where population displacement is calculation of it takes “…to restore b. Where population displacement is unavoidable, it should be No gap unavoidable, it should be minimize by compensation (livelihoods and standards of minimize by exploring all viable project options. exploring all viable project options. living), in real term, to pre- c. People unavoidably displaced should be compensated and b. People unavoidably displaced should displacement levels or to assisted so that their economic and social future would be be compensated and assisted so that their levels prevailing prior to the generally as favorable as it would have been in the absence of the economic and social future would be beginning of project project. generally as favorable as it would have implementation, whichever is been in the absence of the project. higher.”

OP4.12 Para12; Cash compensation levels should be sufficient to replace the lost 7-29 land and other assets at full replacement cost in local market. 17. Base of price of OP4.12 para 6 (b); as much as RA7279, Article IV, Section 22. Livelihood Component – To the Provision of replacement Same land it can “…provide with extent feasible, socialized housing and resettlement projects shall agricultural land is not applicable be located near areas where employment opportunities are …housing sites, or as the project site are accessible. The government agencies dealing with the …agricultural sites for which development of livelihood programs and grant of livelihood loans institutional and commercial a combination of productive shall give priority to the beneficiaries of the Program. lands within an urban area. potential, locational advantages, and other factors DPWH DO 327 Series of 2003, Annex B (Guidelines for Philippine laws does not is at least equivalent to the LAPRAPs for Infra Projects), Section 3 (Entitlement Matrix) – guarantee relocation sites would advantages of the old site.” a. Rehabilitation assistance is provided to Severely affected have equal to or better amenities PAPs whose livelihood is severely affected too as a result of (also see para 11) project implementation and as such needs an alternative as the original affected site. income source. An amount equivalent to PhP15,000/training However, since most project OP4.12 Para 2 (c); as much as for PAPs learning appropriate new livelihood skills. This displaced PAFs are informal it takes “…to restore assistance can also be provided to Vulnerable groups. settlers residing in cramp (livelihoods and standards of b. Transitional Allowance equivalent to one month rent of a residential structures beside the living), in real term, to pre- similar structure within the same area. polluted Paranaque river, an displacement levels or to alternative decent socialized

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines levels prevailing prior to the RA 8974 prescribes that: housing facilities with secured beginning of project  Land valuation (first offer to PAF) be based on current zonal tenure is a better condition as implementation, whichever is valuation; if this is rejected by PAFs, an appraisal committee compared to their pre-project higher.” will be formed to derived the fair market value. housing situation. Other affected  Valuation for affected land improvements /structures is based parties are government OP4.12 Para12; Cash on replacement cost. institutions and commercial compensation levels should be  Cash compensation for perennials of commercial value as establishment lessees of MIAA sufficient to replace the lost determined by the DENR or concerned appraisal committee. properties that are not relocating. land and other assets at full replacement cost in local market. 18. Allowances/ Provide support for the Republic Act 8974 (2000): No gap. DPWH LARRIP Other types of Assistance:4 Assistance transition period (between Guidelines for Expropriation Proceedings are provided which guidelines conforms to RA 8974  Income loss. For loss of business/

7-30 includes among others the provision of assistance to PAFs. displacement and livelihood and World Bank requirements. income, the PAF will be entitled to an  Disturbance Assistance will be given (not to exceed restoration). (WB OP4.12 income rehabilitation assistance not PhP10,000. per household) to each PAP/DP who holds full Para.6) title, tax declaration or some proof of traditional ownership to exceed PhP 15,000 for severely (such as usufruct when the PAP/DP belongs to an indigenous affected structures, or to be based on community), to the land where his/her severely affected house the latest copy of the PAF’s tax stands and who has to shift elsewhere. The same assistance is record for the period corresponding to provided to each PAP/DP doing business on severely-affected the stoppage of business activities; independent shops (e.g. store, shop, warehouse, and similar  Inconvenience Allowance in the structures) which are constructed on lands that are covered by titles, tax declaration that can be perfected into a title, or some amount of PhP10,000 shall be given proof of traditional ownership. to the PAFs with severely affected structures, which require relocation DPWH LARRIP and new construction;  Chapter III, 4e enumerates the types of Assistance available to  Rehabilitation assistance (skills eligible PAFs which includes benefits that were contained in training and other development several Philippine laws including the “Disturbance activities) equivalent to PhP15,000 Allowance” prescribed in RA8974. per family will be provided in coordination with other government

4 Section A, Chapter III, LARRIP, DPWH, February 2007

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines agencies, if the present means of livelihood is no longer viable and the PAF will have to engage in a new income activity;  Rental subsidy will be given to the PAFs without sufficient additional land to allow the reconstruction of their lost house under the following circumstances: a. The concerned properties are for residential use only and are considered as severely affected; 7-31 b. The concerned PAFs were physically residing in the affected structure and land at the time of the cut-off date; c. The amount to be given will be equivalent to the prevailing average monthly rental for a similar structure of equal type and dimension to the house lost; d. The amount to be given for the period between the delivery of house compensation and the delivery of land compensation.  Transport allowance. If relocating, PAFs to be provided free transportation. Also affected informal settlers in urban centers who opt to go back to their place of origin in the province or be shifted to government

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines relocation site will also be provided free transportation. 19. Socially Particular attention must be DPWH LARRIP  The DPWH LARRIP  Particular attention must be given to disfranchised paid to the needs of the  Chapter II (Legal Framework) Due recognition is given to conforms to the IPRA Law the needs of the affected vulnerable and vulnerable vulnerable groups among rights of indigenous peoples as it is contained in the and World Bank IP policy. It groups among those displaced, people those displaced, especially “Indigenous People’s Right’s Act” (IPRA). The Chapter also also recognizes vulnerable especially those below the poverty those below the poverty line, adopts the World Bank’s IP Policy (O.P. 4.10); groups like women and the line, landless, elderly, women and landless, elderly, women and  Chapter IV provides for the policy and implementation elderly and affords them children, ethnic minorities etc. children, ethnic minorities etc. guidelines on involuntary resettlement involving IPs and their meaningful participation in  Adoption of the DPWH LARRIP (WB OP4.12 Para.8) ancestral lands in accordance to the IPRA. It establishes the resettlement planning. guidelines on IPs and vulnerable procedures for public consultation (including the securing of  NCR is not considered as an groups. required clearances from NCIP such as “Certification ancestral land to Indigenous Precondition, “Free and Prior Informed Consent”), land Peoples, so guidelines on IPs 7-32 acquisition, compensation and other entitlements due to IP are not applicable to the PAFs. project.  Chapter V prescribes that vulnerable groups like women and the elderly be allowed to actively participate in public consultation on the project and discuss with them its (project) implications on their socio-economic conditions. 20. Type of For projects that entail land DPWH DO 187 series 2002： There is no specific guidelines For projects that entail land acquisition relocation plan acquisition or involuntary  A Land Acquisition Plan and Resettlement Action Plan that dictate on the type of RAP or involuntary resettlement of less than resettlement of fewer than 200 (LAPRAP) shall be prepared for all projects using a to be prepared based on the 200 people, an abbreviated resettlement people, abbreviated standardized compensation package. DPWH DO 5, Series of number of PAFs. plan is to be prepared. 2003 further defines the content of the LARRIP resettlement plan is to be  DPWH LARRIP which had underwent 3 revisions, contained prepared. (WB OP4.12 the harmonized IR policy covering most relevant Philippine Para.25) Government laws on land acquisition and resettlement, and the World Bank social safeguard policies. The latest edition of the LARRIP already incorporates IP concerns as provided for in the IPRA law and World Bank policy on IPs. 21. Funding WB OP 4.12, Para 20 RA 8974：Sec. 9. …Funds for the relocation sites shall come In principle, government is The government shall provide adequate The full const of resettlement from appropriations for the purpose under the General obliged to provide adequate appropriations that will allow the activities necessary to achieve Appropriations Act, as well as from appropriate infrastructure funds to cover the cost of ROW concerned implementing agencies to projects funds of the implementing agency concerned. the objective of the project are acquisition, however, these will acquire the required right-of-way, site or

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines included in the total cost of come from the budget of several location for any national government the project. The costs of RA 8974:Sec. 10. Appropriations for Acquisitions of Right-of - concerned agencies which infrastructure project. Way, Site or Location for Any National Government Infrastructure resettlement, like the cost of includes the concerned Local Project in Advance of Project Implementation. - The government other project activities, are shall provide adequate appropriations that will allow the concerned Government Unit (LGU), the treated as a charge against the implementing agencies to acquire the required right-of-way, site or proponent DPWH, other support economical benefit of the location for any national government infrastructure project agencies (NHA, NHMFC, etc.). project…. An inter-agency committee needs to be establish to WB OP 4.12, Para 33 coordinate all efforts related to The Bank may finance …a land acquisition and resettlement free standingresettlement including commitment for project with appropriate cross- provision of adequate funds. The conditionalities, processed and cost for development of 7-33 implemented in parallel with relocation sites is not free, and the investment that can cause normally the amount is pass on the displacement. The Bank to the displaced persons on a may finance resettlement even long-term payment arrangement. though it is not financing the main investment that makes resettlement necessary. 22. Responsible RA7279 (Urban Development and Housing Act of 1992), Article Within DPWH (proponent), it is Adopt the provision of DPWH DO 327 government X (Program Implementation), Section 39. Role of Government the Implementing Office (BOT- Series of 2003, Section 1.5: Units – The local government units shall be charged with the function on PMO) that is responsible for the The provision of resettlement site shall implementation of this Act in their respective localities, in relocation coordination with the Housing and Urban Development overall project coordination be the responsibility of the local Coordination Council, the national housing agencies, the including the preparation of the government units (LGUs) concerned, Presidential Commission for the Urban Poor, the private sector and LAPRAP in the event there is with assistance from the concerned other non-government organizations. involuntary relocation needed. government agencies tasked with Other concerned DPWH units providing housing. The DPWH shall DPWH DO 327 Series of 2003 (Guidelines for Land Acquisition (IROW-PMO, ESSO, RO and coordinate with these LGUs and Plan and Resettlement Action Plans (LAPRAPs) for Infrastructure appropriate government agencies for the Projects.Section 1.0, 1.5: The provision of resettlement site shall District Office) are to provide be the responsibility of the local government units (LGUs) appropriate support. However, resettlement and relocation of qualified concerned, with assistance from the concerned government the office responsible for the PAPs, and the acquisition, planning, and agencies tasked with providing housing. The DPWH shall

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines coordinate with these LGUs and appropriate government agencies relocation of project displaced development of the resettlement site shall for the resettlement and relocation of qualified PAPs, and the persons is the concerned LGUs be part of the LAPRAP, with the acquisition, planning, and development of the resettlement site with the support of other responsibility resting mainily with the shall be part of the LAPRAP, with the responsibility resting mainily with the concerned LGUs, Housing and Urban government agencies. An inter- concerned LGUs, Housing and Urban Development Coordinating Council (HUDCC), National Housing agency coordinating committee Development Coordinating Council Authority (NHA) and other concerned agencies. is necessary to orchestrate all (HUDCC), National Housing Authority relocation related activities. (NHA) and other concerned agencies. 23. Implementation DPWH DO 327 Series of 2003 (Guidelines for Land Acquisition Within DPWH (proponent), it is Adopt the provisions of DPWH DO 327 structure Plan and Resettlement Action Plans (LAPRAPs) for Infrastructure the Implementing Office (BOT- Series of 2003, Section 3: The Projects.Section 3 (Roles and Responsibilities): The formulation of PMO) that is responsible for the formulation of the LARPRAP shall be the LARPRAP shall be the responsibility of the Implementing Office (BOT-PMO), with assistance from the IROW and overall project coordination the responsibility of the Implementing Resettlement Project Management Office (PMO), and the including the preparation of the Office (BOT-PMO), with assistance from Environmental Impact Assessment Office (now called ESSO), or LAPRAP in the event there is the IROW and Resettlement Project 7-34 private consulting firms. The implementation of the LAPRAP, involuntary relocation needed. Management Office (PMO), and the once approved, is the responsibility of the DPWH District Other concerned DPWH units Environmental Impact Assessment Engineering Offices that have jurisdiction over the municipalities (IROW-PMO, ESSO, RO and Office (now called ESSO), or private covered by the LAPRAP, with assistance from the Regional consulting firms. The implementation of Offices (ROs) and EIAPO (now ESSO). District Office) are to provide appropriate support. However, the LAPRAP, once approved, is the the office responsible for the responsibility of the DPWH District relocation of project displaced Engineering Offices that have persons is the concerned LGUs jurisdiction over the municipalities with the support of other covered by the LAPRAP, with assistance government agencies. An inter- from the Regional Offices (ROs) and agency coordinating committee EIAPO (now ESSO). is necessary to orchestrate all relocation related activities. 24. Livelihood WB 4.12, Para 6 (c) RA7279, Article IV, Section 22. Livelihood Component – To the The proposed relocation site is For the informal settlers (Brgy 191) and rehabilitation (i)…support after extent feasible, socialized housing and resettlement projects shall within the MIAA complex which affected potential lot awardees (Brgy be located near areas where employment opportunities are program displacement, for a transition is still within the vicinity of their Tambo), adopt DPWH DO 327 accessible. The government agencies dealing with the period, based on a reasonable development of livelihood programs and grant of livelihood loans previous abode, and therefore guidelines. estimate of the time likely to shall give priority to the beneficiaries of the Program. dislocation from their current be needed to restore their livelihood source for the For affected commercial establishments, DPWH DO 327 Series of 2003, Annex B (Guidelines for

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines livelihood and standard of LAPRAPs for Infra Projects), Section 3 (Entitlement Matrix) – employed persons is minimal. payment for income loss should be made living c. Rehabilitation assistance is provided to Severely affected For those engaged in small that is equivalent to the average monthly PAPs whose livelihood is severely affected too as a result of business, establishment of their net income as declared in their income project implementation and as such needs an alternative income source. An amount equivalent to PhP15,000/training shop (sari-sari stores and tax returns filed at the Bureau of Internal for PAPs learning appropriate new livelihood skills. This karinderias), the policy under Revenue (BIR) for the period of 3 years, assistance can also be provided to Vulnerable groups. DPWH DO 327 is sufficient to multiplied by the number of none d. Transitional Allowance equivalent to one month rent of a cover income loss. operational months as a result of the similar structure within the same area. There is no policy with regards project, but not to exceed 6 months. to payment of income loss for affected Commercial establishments. 25. Relocation site WB 4.12, Para 6 (c) RA-8974-Sec. 9. Squatter Relocation. - The government through The existing Philippine laws and The DPWH to actively participate in the development (ii)provide with development the National Housing Authority, in coordination with the local DPWH guidelines provide the establishment of the Resettlement

7-35 government units and implementing agencies concerned, shall assistance in addition to general legal mandate to Implementation Committee (RIC) to be establish and develop squatter relocation sites, including the compensation measures provision of adequate utilities and services, in anticipation of concerned government agencies headed by the concerned LGUs, that is described in paragraph 6 (a); squatters that have to be removed from the right-of-way or site of responsible for implement tasked to plan and implement the RAP in (iii) such as land preparation, future infrastructure projects. Whenever applicable, the concerned livelihood related support accordance to credit facilities, training, or local government units shall provide and administer the relocation activities to PAFs. job opportunities. sites. RA7279, Article IV, Section 22. Livelihood Component – To the However, since there are extent feasible, socialized housing and resettlement projects shall OP4.12 para13 (b); In new be located near areas where employment opportunities are multiple government agencies resettlement sites or host accessible. The government agencies dealing with the with diverse functions, involved communities, infrastructure development of livelihood programs and grant of livelihood loans in land acquisition and and public services are shall give priority to the beneficiaries of the Program. resettlement, an inter-agency provided as necessary to committee normally has to be improve, restore, or maintain DPWH DO 327 Series of 2003, Annex B (Guidelines for established to pursue the LAPRAPs for Infra Projects), Section 3 (Entitlement Matrix) – accessibility and levels of coordinated work. The a. Rehabilitation assistance is provided to Severely affected service for the displaced PAPs whose livelihood is severely affected too as a concerned LGU exercising persons and host result of project implementation and as such needs an jurisdiction over the project area, communities. Alternative or alternative income source. An amount equivalent to is the lead government agency in similar resources are provided PhP15,000/training for PAPs learning appropriate new providing socialized housing as to compensate for the loss of livelihood skills. This assistance can also be provided to provided for RA7279 (UDHA). Vulnerable groups.

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines access to community b. Transitional Allowance equivalent to one month rent of a resources (such as fishing similar structure within the same area.

areas…). DPWH LARRIP  Chapter III, 4e enumerates the types of Assistance available to eligible PAFs which includes benefits that were contained in several Philippine. 26. Protection of Should project interventions RA 8974:Sec. 8. Ecological and Environmental Concerns. - In The shifting PAFs are given a Adopt DPWH LARRIP. Chapter II 2d host also limit or restrict the access cases involving the acquisition of right-of-way, site or location for choice either they opt to receive and DPWH DAO 327 Series of 2003, any national government infrastructure project, the implementing community of people to declared their compensation for lost assets Section 1.6. agency shall take into account the ecological and environmental protected areas, impact of the project. Before any national government project or a developed relocation site could be undertaken, the agency shall consider environmental (land to be provided by LGU) OP4.12 para13 (b); In new laws, land use ordinances and all pertinent provisions of Republic where the site had been prepared,

7-36 resettlement sites or host Act No. 7160, as amended, otherwise known as the Local access roads and connection to communities, infrastructure Government Code of 1991 basic facilities (i.e. water supply, and public services are electric power, drainage, garbage DPWH LARRIP, provided as necessary to Chapter II, 2d, states that: Existing social and cultural institutions disposal, telephone lines, etc.) improve, restore, or maintain of re-settlers and their hosts should be supported and used to the are provided. Only transportation accessibility and levels of greatest possible and resettlers be integrated economically and allowance for the actual transfer service for the displaced socially into host communities. to the relocation site and income persons and host rehabilitation for displaced small communities. Alternative or DPWH DO 327 Series of 2003, Section 1.6: Where relocation is business will be provided. The considered necessary, the receiving LGU (under whose political similar resources are provided other facilities such as low cost jurisdiction the relocation site will be located) may seek assistance to compensate for the loss of from DPWH for the provision of access roads to the relocation houses will have to be provided access to community site, and other government agencies for the provision of basic by the other relevant government resources (such as fishing facilities and services. agencies (LGU, NHA, etc.). areas…). 27. Removal and WB OP 4.12: para 18: The RA7279 (Urban Development and Housing Act of 1992), Article The concerned LGU is the over- Adopt DPWH LARRIP guidelines on demolition borrower is responsible for X (Program Implementation), Section 39. Role of Government all government entity responsible Institutional Arrangements; as well as the Units – The local government units shall be charged with the preparing, implementing, for the implementation of RA 7279 general guidelines on roles of implementation of this Act in their respective localities, in …resettlement plan… coordination with the Housing and Urban Development socialized housing and relocation government units for socialized housing. Coordination Council, the national housing agencies, the of informal settlers and PAHs Presidential Commission for the Urban Poor, the private sector and affected by government projects.

Gap between JICA Laws of Relocation Implementation Policy No. JICA Guidelines Guidelines and Laws of the The Philippines of this Project Philippines other non-government organizations. Since its resources and personnel are limited, it can call upon other DPWH LARRIP, Chapter VII. Institutional Arrangements. government specialized agencies The whole chapter provides for the duties and responsibilities of concerned DPWH offices with respect to the preparation and such as the DPWH to carry-on implementation of the LARRIP. It mentions also the role of the some of the work that is within interagency committee (Resettlement and Implementation its area of expertise. Committee) that is task to support the preparation and implementation of the LARRIP. 28. Monitoring WB OP 4.12: para 18: The (ESSO－Guideline xviii) The IROW and Resettlement No gap. The DPWH LARRIP Adopt DPWH LARRIP guidelines on borrower is responsible for …, PMO shall monitor the releases and disbursement of IROW funds guidelines conform to Monitoring and Evaluation work. monitoring a resettlement made by the IOs. WB/ADB/JICA monitoring Prior to, and after the resettlement, the Urban Poor Affairs Office plan… requirements. or Dept. of Welfare and Development of LGUs, which were also responsible for census, is the institution responsible for internal 7-37 monitoring. Monitoring results are to be conveyed to the Local Inter-Agency Committee, which includes the Human Rights Commission and Presidential Commission for the Urban Poor as members, for review.

DPWH LARRIP, Chapter VII. Institutional Arrangements. The whole chapter provides for the duties and responsibilities of concerned DPWH offices with respect to the preparation and implementation of the LARRIP. Among the functions mentioned is the internal monitoring roles of each concerned DPWH offices, as well as the Interagency Resettlement Implementation Committee (RIC).

7.1.2.1.3 Means to Bridge the Gap (Harmonized Project Resettlement Policy)

To bridge the gap between the Philippine government laws with that of World Bank/ADB/JICA social safeguard policies, a harmonized resettlement policy for use in the project is proposed. The project resettlement policy is actually an adoption of the LARRIP guidelines that had been issued by the DPWH the 3rd edition of which was released in February 2007, for use in its infrastructure projects having involuntary resettlement impacts that are funded by the World Bank and ADB. This section provides for the policy on eligibility requirements of affected persons, compensation and other entitlements. At the end of this section, a matrix (Table 7.1.2-3) summarizes the type of loss, eligibility requirement, type of compensation and other assistance to be provided.

7.1.2.1.3.1 Criteria for Eligibility for Compensation

A. Landowners:

a. Legal owners of affected land (i.e. agricultural, residential, commercial and institutional) who have full title, tax declaration, or who are covered by customary law (e.g. possessory rights, usufruct, etc.) or other acceptable proof of ownership; b. Users of affected arable land who have no land title or tax declaration; c. Agricultural lessees of affected lands.

B. PAFs with Affected Structures

a. Owners of structures who have full title, tax declaration, or who are covered by customary law (e.g. possessory rights, usufruct, etc.) or other acceptable proof of ownership; b. Owners of structures, including informal settlers, who have no land title or tax declaration or other acceptable proof of ownership; c. Renters.

7.1.2.1.3.2 Indicator for Severity of Impacts

Affected assets such as land and structures will suffer degrees of impact depending on the portion that will be affected and the viability for use of the remaining part. The severity of impact on land and improvements are defined as follows:

a. Severe – The impact on land or improvements shall be considered severe if the portion of the affected property is more than10% or less than 10% if the remaining portion is no longer economically viable or it will no longer function as intended. The owner of the affected property (land or structures) shall be entitled to full compensation based on replacement cost in accordance to RA 8974.

b. Marginal – The impact on land and improvements shall be classified as marginal if the impact to the property is less than 10% and the remaining portion is still viable for continued use. Compensation will be on the affected portion only based on replacement cost.

7.1.2.1.3.3 Compensation for Affected Assets

The type of assets that are eligible for compensation includes land, structures, other improvements, timber trees, standing crops and perennials. Listed below are the types of

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compensation and other entitlements to be paid to the eligible PAFs per type of affected assets.

A. Compensation for Land

i. Compensation for affected land will be based on replacement cost in conformity to RA 8974. The initial offer to the PAFs is the indicated price in the current zonal valuation issued by the BIR for the locality where the property is located. If the offered price is not acceptable to the PAF, the second offer will be the current market value at the time of the taking based on the standards prescribed in Section 5 and 6 of RA 8974.

ii. Land swapping or “land for land” compensation if feasible, will be provided in terms of a new parcel of land of equivalent market value, at a location acceptable under zoning laws; or a plot of equivalent value, whichever is bigger, in a nearby resettlement area with adequate physical and social infrastructure. When the affected plot has a higher value than the replacement plot, cash compensation will be paid to the PAFs to cover the difference in value.

iii. Holders of “Free Patent”, homesteads under CA 141 or the Public Lands Act, will be compensated for improvements only;

iv. Holders of Certificates of Land Ownership Award (CLOA) granted under the Comprehensive Agrarian Reform Act (CARA) shall be compensated in accordance to Public Land Act or CA 141 where landowners shall be compensated for the affected land improvements only.

B. Compensation for Structures

Compensation will be in cash at replacement cost for the affected portion, including the cost of restoring the remaining structure, as determined by the appraisal committee, with no deduction for salvaged building materials.

C. Compensation for Other Improvements

i. Compensation will be in cash at replacement cost for the affected portion of public structures/facilities that owned by government, Non-Governmental Organizations or Community that had donated such assets for the general use;

ii. Compensation will be in cash to cover the cost of restoring/reconnection of affected public utilities such as water supply, electric power and telephone.

D. Compensation for Standing Crops, Trees and Perennials

i. Cash compensation will be in cash for perennials of commercial value as determined by the DENR or the concerned Appraisal Committee;

ii. PAFs will be given sufficient time to harvest crops on the affected land;

iii. Compensation in cash for damaged standing crops (palay and corn) will be based on market value at the time of the taking multiplied by the average production level (over the period of 3 consecutive years) per unit area;

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iv. Compensation in cash for fruit-bearing trees will be based on the assessment of the Provincial or Municipal Assessors where the project is located.

E. Other Assistance

i. Disturbance Compensation – For severely affected agricultural land, the lessees are entitled to disturbance assistance equivalent to five times the average gross harvest for the past 3 years but not less than PhP15,000.

ii. Income Loss – For loss of business/income, the PAF will be entitled to an income rehabilitation assistance not to exceed PhP15,000 for severely affected structures, or to be based on the latest copy of the PAF’s tax record for the period corresponding to the stoppage of business activities.

iii. Inconvenience Allowance – An amount equivalent to PhP10,000 shall be paid to PAFs with severely affected structures which require relocation and reconstruction.

iv. Rehabilitation Assistance – Skills training and other development activities equivalent to PhP15,000 per affected family per municipality will be provided in coordination with other government agencies. If the present means of livelihood is no longer viable and the PAF will have to engage in a new income generating activity.

v. Rental Subsidy – Amounts will be provided to PAFs without sufficient land to allow the reconstruction of their severely affected house based on the following categories:

a) Severely affected properties are for residential use only;

b) Concerned PAFs were physically residing in the affected structures built on the affected land at the time of the “cut-off” date;

c) The amounts to be given will be equivalent to the prevailing average monthly rental rates for a similar structure of equal type, dimension and amenities to the affected structure;

d) The amount will be given for the period between the actual payment of house compensation and that of the land compensation.

vi. Transportation allowance – Shifting PAFs will be provided with free transportation. Likewise, affected informal settlers (in urban areas) who opt to return to their place of origin (in the provinces) or be shifted to government relocation sites will also be given free transportation.

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TABLE 7.1.2-3 ENTITLEMENT MATRIX Entitled Type of Loss Application Compensation/Entitlements Person Land More than 20% of PAF with PAF will be entitled to: (classified as total landholding TCT or tax  Cash compensation for loss of land at 100% Agricultural, lost or where less declaration5 replacement cost at the informed request of residential, than 20% lost but PAFs; commercial or the remaining plot  If feasible, land for land will be provided in institutional. become terms of a new plot of land of equivalent economically productivity, at a location acceptable to PAFs, unviable. or  Holders of free or homestead patents and CLOAs under CA141, Public Lands Act will be compensated on land improvements only6;  Holders of Certificates of Land Ownership Award (CLOA) granted under the Comprehensive Agrarian Reform Act shall be compensated for the land at zonal value;  Cash compensation for damaged standing crops at market value at the time of the taking;  Rehabilitation assistance in the form of skills training equivalent to the amount of PhP15,000 per family, if their current means of livelihood is no longer viable and the PAF will have to engage in a new income generating activity. PAF without  Cash compensation for damaged standing TCT crops at market value at the time of the taking;  Agricultural lessors are entitled to disturbance compensation equivalent to five times the average gross harvest for the past 3 years but not less than PhP15,000. Less than 20% of PAF with PAF will be entitled to: the total TCT or tax  Cash compensation for loss of land at 100% landholding lost declaration5 replacement cost at the informed request of or where less than PAFs; 20% lost and the  Holders of free or homestead patents and remaining plot is CLOAs under CA141, Public Lands Act shall still viable for use. be compensated on land improvements only;  Holders of Certificates of Land Ownership Award (CLOA) granted under the Comprehensive Agrarian Reform Act shall be compensated for the land at zonal value;  Cash compensation for damaged standing crops at market value at the time of the taking. PAF without  Cash compensation for damaged crops at TCT market value at the time of taking;  Agricultural lessors are entitled to disturbance allowance equivalent to five times the average

5 Tax declarations that are legalizable to full title 6 Beneficiaries of homestead and free patents, CLOA under the Land Act and CA141 are obliged to provide a strip of land within the property they have acquired from the state (upon payment of administrative fees) for use as ROW when required for roads.

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Entitled Type of Loss Application Compensation/Entitlements Person of the gross harvest for the past 3 years but not less than PhP15,000. Major More than 20% of PAPs with PAPs will be entitled to: Structures the total TCT or tax  Cash compensation for entire structure at (classified as landholding loss declaration 100% replacement cost; residential, or where less than  Rental subsidy for the time between the commercial & 20% loss but the submission of complete documents and the industrial) remaining release of payment on affected land. structure is no PAPs without PAPs will be entitled to: longer functional TCT  Cash compensation for entire structure at or no longer 100% of replacement cost; viable for  Rental subsidy for the time between the continued use. submission of complete documents and the release of payment on affected land. Less than 20% of PAPs with  Compensation for affected portion of the total land lost TCT or tax structure. or where the declaration remaining PAPs without  Compensation for affected portion of structure is still TCT structure. functional and is viable for continued use. Improvements Severely or PAPs with or Cash compensation for affected improvements marginally without TCT, at replacement cost. affected tax declaration, etc. Standing Severely or PAPs with or Cash compensation for affected standing crops, Crops, trees, marginally without TCT, trees and perennials at current market value as and perennials affected tax prescribed by the concerned LGUs and DENR. declaration, etc.

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7.1.3 Institutional Arrangements

Environmental Administrative Organization

The main government institution responsible for Environmental Protection is the Department of Environment and Natural Resources (DENR) which had been established in 1987. DENR takes on the role of a guardian of the country’s environment thru the formulation of appropriate policies, regulation of all developmental activities of both government and private sectors and enforcement of legislations and other directives/guidelines related to environmental protection.

DENR will Protect and maintain natural resources for development activities and implement environmental management with possible and sustainable resource uses.

Before new constitution was promulgated, the National Pollution Control Commission (NPCC) previously maintained and controlled environmental protection and management function, has been integrated with National Environmental Protection Council (NEPC), and the newly formed organization is now known as the Environmental Management Bureau (EMB). The EMB carries out actual implementation organization on environmental protection and administrative management, and being functioned a management of Ambient air, water quality, chemical substances, prevention study on public nuisances, analysis of various regulation, natural protection and environmental education, Evaluation of environmental impact assessment etc.

DENR has 3 offices as natural resources management office, region office and environmental investigation office.

The natural resources management office has 3 divisions as forest management division, land management division and mining management division. The region office has 3 competence offices in Luzon, Visayas and Mindanao. The environmental investigation office has ecosystem investigation division, conservation district and wildlife-biology division, and environmental management division.

All of planned projects are objectives to evaluate EIS conducted by EMB, and EMB regional office response for evaluation of EIS on the planned project within each superintended region. Beside of EMB administration on assessment related issues wildlife and biology preservation division and public nuisance arbitration committee take responsibility on environmental management and conservation plan.

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FIGURE 7.1.3-1 ORGANIZATION CHART OF DENR

7.1.3.1 Environmental Consideration

Regarding NAIAX project, EIS has been done for phase 1 and phase 2 in 2000, DENR (Department of Environment and National Resources) was issued ECC (Environmental Compliance Certificate) on 16th June 2002. The issued EEC attached following incidental conditions.

1) This Certificate covers only the construction and operation of the Manila International Airport Access Improvement Project to include the following components

1.1) A 5.7 km elevated road from the Reclamation Area beside Roxas Boulevard (Boulevard 2000) through Sunset Drive to the corner of Domestic Road and MIA Road, passing through Domestic Road to Airport Avenue until Sales Street going to South Luzon Skyway;

1.2) Road Width

Villamor Airbase Section - 26.20 m. Other Sections - 20.00 m.

1.3) Height (average) - 7.5 m.

1.4) An interchange system at Boulevard 2000, Roxas Boulevard, Manila, a ramp at the corner of Domestic Road and MIA road, an interchange at the NAIA Terminal III and an interchange to connect Sales Street to Luzon Skyway;

1.5) Toll Plaza - 10 booth per toll

2) The project must strictly adopt the alignment as proposed and as stated in the EIS. Any modification from the original plan and design of the approved alignment should be subject to review, evaluation and approval of this Office;

3) The detailed structural and foundation design of the whole project must conform to the National Structural Code of the Philippines (NSCP) and the American Association of State Highways and transportation Officials (AASHTO) codes;

4) A detailed seismic risk analysis must be conducted using the determination approach and considering the presence of the West Valley Faull which is located east of the project site. Results of such analysis should be used in detailed structural and foundation design;

5) The detailed engineering design of Segment 6 and 7 of the project must consider the results of the following studies;

5.1) Detailed liquefaction analysis considering the results of detailed seismic risk analysis

5.2) Detailed seismic and consolidation settlement analysis

5.3) Bearing capacity determination which include among others the effect of negative side friction on the integrity of the pile

6) A detailed flood frequency analysis must be conducted along critical locations (i.e. Brgy. 183, 184, and 185, intersection of Tramo Road and Andrews Avenue and along Segment 6 and 7

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of the project) and results of such analysis should be used in the detailed design of hydraulic structures and in the development of a comprehensive drainage maintenance program;

7) Cargo trucks carrying hazardous materials which include among others toxic and flammable substances must not be allowed to use the elevated road

8) Noise barriers should be installed along critical residential areas in Barangays 183, 184 and 185, school zones in Villamor Airbase and Paranaque, and commercial areas and offices along the Domestic Road;

Reference to the completeness between JICA guideline and Philippine DENR/BEM guideline applied Philippine legal framework, EIS for the NAIAX project will be considered in relation to the above. The environmental consideration of the project is mostly in relation to WB OP 4-12 regarding the relocation implementation policy and summarized matrix in Table 7.1.2-2.

7.1.3.2 Social Consideration

The implementation of the RAP will be pursued by various government offices in cooperation with the PAFs and expressway concessionaire. In this section, the various players involved in the RAP implementation are named and their respective roles defined. While the expressway project is pursued under the Project-Private-Partnership arrangements, the primary responsibility for the implementation of the project still lies with government specifically the Department of Public Works and Highways.

A. Department of Public Works and Highways

The DPWH is the Executing Agency (EA) who is responsible to the Philippine government and the donor agency for the planning and implementation of the expressway project under the PPP program of the government. The DPWH will initiate through its relevant departments and PMOs the preparation of all documents necessary for the approval and implementation of the expressway project which includes the updating of feasibility studies, securing of clearances/permits, acquisition of ROW, tendering of the PPP contract to interested capable concessionaires, and monitoring of project implementation. The expressway project will be overseen by the Office of the Assistant Secretary for Planning who shall report directly to the DPWH Secretary on matters related to the project.

B. Built-Operate-Transfer (BOT) - Project Management Office (PMO)

The BOT-PMO has the overall operational responsibility for the planning and implementation of the project. In coordination with other relevant government agencies and the JICA Study team, the BOT-PMO shall manage and supervise the project, including resettlement planning and land acquisition. It shall help ensure that the concerned DPWH implementing office of the RAP will exercise fairness and appropriateness in its dealings with the project affected persons. It shall ensure that funds for the timely implementation of the RAP is available and that expenses are properly accounted for. It will serve as the chairperson of the Resettlement Implementing Committee (RIC). The BOT-PMO will be assisted by the ESSO and IROW-PMO in providing technical guidance and support in the preparation and implementation of the RAP.

C. Environmental and Social Services Office (ESSO)

The ESSO shall provide technical guidance and support in the implementation of the RAP and will be responsible for the following resettlement activities:

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i. Oversee the preparation and planning of the RAP;

ii. Submit RAP budgetary requirements for approval and allocation of needed financial resources by the DPWH central office;

iii. In accordance to the Department’s resettlement policies, guide the project consultants, District Engineering and Regional Offices in their tasks, such as parcellary survey of project area, verification of PAFs, final inventory of affected assets, and information dissemination;

iv. Amend or update the RAP in the event problems arise during the internal and/or external monitoring of its implementation;

v. Follow-up with the DPWH Accounting Office for the processing of compensation claims of PAFs;

vi. Monitor the actual payment of compensation to PAFs;

vii. Prepare periodic supervision and monitoring reports on RAP implementation for submission to the BOT-PMO and the donor institution; and

viii. Serve as an active member of the Resettlement Implementation Committee (RIC).

D. Infrastructure Right-of-Way (IROW) PMO

i. The IROW PMO will provide guidance to the BOT-PMO and consultants on the preparation of RAP;

ii. Conduct inventories of properties that will be affected;

iii. Oversee the staking-out, verification and validation of the PAF’s affected assets;

iv. Spearhead the negotiations with the PAFs and secure agreements on the final valuation of the affected assets which will be used in the payment of compensation;

v. Finalize the compensation plan for the PAFs, based on the result of the negotiation process; and submit the same to the DPWH financial service for approval and payment;

vi. Approve disbursement vouchers/payments on PAFs compensation and other benefits;

vii. Submit disbursement reports on payments to PAFs to the Regional/Central Office accounting office and the BOT-PMO;

viii. In cooperation with the RIC and concerned DPWH District Office, implement the approved RAP;

ix. Submit monthly progress reports to ESSO, Regional Office and the BOT-PMO; and;

x. Serve as the co-chairperson of the Resettlement Implementation Committee (RIC).

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E. Local Government Units of Pasay & Parañaque City

i. Monitor the relocation process of informal settlers to ensure that all shifting PAFs are properly compensated for their loss, and appropriate housing facilities and social infrastructures are provided;

ii. Issue a completion certificate to DPWH after ascertaining that the prescribed procedure had been followed.

iii. Participate in public consultation organized for the affected persons and other major stakeholders;

iv. Participate as an active member of the RIC.

F. Regional Office (National Capital Region) of DPWH

The Regional Office shall act as the Liaison between ESSO and the District Office and shall ensure that the RAP is implemented as planned. Its specific activities are:

i. Prepare parcellary maps of the project area;

ii. Monitor the RAP implementation and fund disbursement;

iii. Submit monthly progress reports to ESSO;

iv. Monitor payments to PAFs;

v. Serve as the Grievance Redress Committee (GRC) and act on complaints filed by PAFs related to the project at its office.

G. Manila International Airport Authority (MIAA)

MIAA is a major beneficiary of the NAIAX as access to its 4 airports within the complex will be facilitated. Likewise, it is also the most affected party as much of the land to be acquired, as well as structures that may be demolished are government properties that are entrusted to its (MIAA) stewardship. The role of MIAA in the project is as follows:

i. To assist DPWH Implementing Office (IO) find a suitable relocation site preferably within the MIAA complex for the displaced informal settlers, as well as its seriously affected commercial lease holders;

ii. To assist DPWH IO during discussions/negotiations with its affected commercial leaseholders;

iii. To participate as an active member of the Resettlement Implementation Committee (RIC).

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H. Resettlement Implementation Committee (RIC)

The RIC shall be composed of representatives from the BOT-PMO (chairperson), IROW-PMO (co-chairperson), ESSO, Manila International Airport Authority (MIAA), the City/Municipality LGU, National Housing Authority (NHA) and representative of PAFs/PAPs. No NCIP nor ICC/IP representatives are included in the RIC as Metro Manila where the NAIAX is located is not a recognized ancestral land. The establishment of the RIC shall be made through the signing of a Memorandum of Understanding (MOU) between DPWH, the concerned LGU and MIAA. The function of the RIC includes:

i. Assist the project consultants and DPWH Implementing Office engaged in RAP preparation activities in (a) validating the list of PAFs; b) validating the assets of the PAFs that will be affected by the project; (c) assist DPWH in arranging for a suitable relocation facility for the displaced PAFs, and (d) participate in monitoring the RAP implementation;

ii. Assist the DPWH Implementing Office in the public information campaign, public participation and consultation meetings;

iii. Receive complaints and grievances from PAFs and other stakeholders and refer the matter to the Grievance Redress Committee (GRC);

iv. Maintain a record of all public meetings, complaints and actions taken to address complaints and grievances; and

v. In coordination with concerned government authorities, assist in the enforcement of laws/ordinances regarding encroachment into the project site or ROW.

I. National Housing Authority

i. Provide guidance to DPWH on the proper procedure of implementing resettlement work; and ii. Process the list of affected persons to identify the professional squatters and promptly inform DPWH once these individuals, group or families are found.

7.1.4 Study Methodology (Procedure)

1) EIS System Requirement for the Implementation of the Project

EIS and evaluation system

Philippines Strategy for Sustainable Development (PSSD) of which EMB programmed in corporation with other related administrative authorities was prepared the environmental strategy in the long-range plan. The PSSD is the basis of national environmental policy. Thus EIS system is established as implementation of concrete measure under the Presidential Decree No. 1151 article 4.

The objectives of EIS system are following 4 items in general.

i) Economic profitability: Increase of employment opportunity, expansion of local tax revenue, value added economic project leading with economic growth, creation of new equipment and service for possibility of comfortable community life standard, In the planning stage of the

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project prior the project environmental consideration will be given reduction of external project cost.

ii) Comprehensive achievement of objective of the project: Environmental evaluation is important to be required in integrated coordination with diverse nation’s objectives as environmental, economic and social aspects. The EMB as implementation organization is established.

iii) Public participation: At the public consultation explanation of information and evidence of the project, public participation is recognized for conduct fair evaluation of the project.

iv) Environmental impact statement system is able to rationalize planning and implementation of the project and the system becomes to be element of the judgment during the process of planning decision make. Under the EIS system when government authorities, public agencies, private sectors and enterprises are conducted projects and activities which are anticipated impacts to the environment, they have to submit EIS to EMB and acquire an Environment Compliance Certificate (ECC) through the Environmental committee approval. Objective projects for EIS are these 9 industries of nonferrous metal, ferrous metal, oil and petrochemical, mining, pulp and paper, dam and reservoir, chemical, agriculture and urban development.EIS procedure is depended on detail of the project and phases as preparation of land acquisition, construction, maintenance and operation. And each evaluation categories of social environment, natural environment and pollution are examined. Figure 7.1.4-1 shows EIA procedure of DENR/ BEM.

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Project

EIA Required No EIA

Pre-Study Stage EIA Study Scoping

EIA Study/ Report Preparation by the Project Proponent as a requirement for ECC application

Change of Public Involvement Project Review and Evaluation of EIA EIA Study Stage plan/ facilitated by DENR-EMB Relocation

Issuance of ECC w/ recommendations to Denial of ECC other entitles w/ mandate on the project

Secure necessary permits / clearances from other EMB Divisions, DENR Bureaus, other GAs and LGUs

Expansion/Project modifications Implementation

Post-Study Stage Environmental Impact Monitoring and Evaluation/Audit

FIGURE 7.1.4-1 EIA PROCEDURE OF DENR/BEM

7.1.4.1 Environmental Impact Assessment (EIA)

1) Details of Environmental Impact Statement (EIS)

Environmental Impact Statement(EIS) is defined 1) basic policy, operating principal, objectives and definition of terms, 2) an application and deciding approval procedure on Environmental Compliance Certificate (ECC), 3) enhancement of implementation of EIS system of Philippine and 4) other related regal measures and procedures. Department of Environment and Natural Resources (DENR) has jurisdiction of EIS system under Presidential Decree No.1586, No. 2146.

The EIS System is concerned primarily with assessing the direct and indirect impacts of a project on the biophysical and human environment and ensuring that these impacts are addressed by appropriate environmental protection and enhancement measures, and the EIS System aids proponents in incorporating environmental considerations in planning their projects as well as in determining the environment's impact on their project. The review of the EIS by EMB shall be guided by three general criteria:

(a) That environmental considerations are integrated into the overall project planning,

(b) that the assessment is technically sound and proposed environmental mitigation measures are effective, and (c) that social acceptability is based on informed public participation;

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2) Documentary Requirements for Proponents

Following Table 7.1.4-1 shows summary of the required documents, the processing, endorsing and deciding authorities for ECC/CNC applications and timeframe for each project category:

TABLE 7.1.4-1 SUMMARY OF THE REQUIRED DOCUMENTS, THE PROCESSING, ENDORSING AND DECIDING AUTHORITIES FOR ECC/CNC APPLICATIONS AND TIME FRAME FOR EACH PROJECT CATEGORY Maximum Documents time to Processing in required for grant or Applied to responsibility/ Deciding ECC/CNC deny ECC Endorsing Authority application Application Official (working days) A: A-1: New Co- Programmatic EMB Central DENR 180 days Environmentally located EIS based on Office (CO) Secretary Critical Projects projects an eco-profile Director and focused on the most critical environmental parameters Single Project EIS EMB CO DENR 120 days Project Director Secretary EMB CO/ EMB 120 days EIA Division Central Chief Office Director A-2: Existing Co- Programmatic EMB Central DENR 120 days and to be located Environmental Office Secretary expanded projects Performance Director (including Report and undertakings Management that have Plan stopped (PEPRMP) operations for Single Environmental EMB Central EMB 90 days more than 5 Project Performance Office Central years and plan Report and Director Office to re-start, with Management Director or without Plan expansion) (PEPRMP) A-3: Operating without ECC B: Non- B-1:New Single Project IEE or EMB CO/EIA EMB 60 days Environmentally Project IEE Checklist Division Central Critical But if available Chief Office located in an ECA (IEE may be Director followed up by EMB EMB 60 days full EIA if Region/EIA Regional required by Division Director EMB after its Chief review of the IEE B-2: Existing Single Environmental EMB EMB 30 days and to be Project Performance Region/EIA Regional expanded Report and Division Director (including Management Chief undertakings Plan (based on that have a checklist if stopped available) operations for Co- PEPRMP EMB CO/EIA EMB 60 days more than 5 located Division Central

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years and plan Project Chief Office to re-start, with Director or without expansion) B-3: Operating without ECC C: Environmental Co- Project EMB RO/ EMB 15 days Enhancement or located or Description EIA Division Regional Direct Mitigation Single Chief Office Projects Director

D: Not Covered Project EMB CO or EMB CO 15 days Description or RO/EIA or RO Proof of Division Director Project Chief Implementatio n Start Prior to 1982 (if applying for CNC) Source: DENR; Implementation Rules and Regulations for the Philippine EIS system, DENR

3) Tasks undertaken by the Proponent and Related Organizations

In the way to support the smoothness of development plan of the PPP project development of the NAIAX in Pasay and Paranaque Municipality, which estimated will be impact to social and economy of the community on the time of land acquisition, therefore, it is needed terms of implementation in DPWH Decree No.65, DPWH Decree No.120 and No. 234 concerning to Land use procedure for public project, expressway project and Compensation of private land for DPWH project. The Project proponent is necessary to make a study of Land Acquisition and Resettlement Action Plan. The Development Plan of the PPP project, development of the NAIAX within these Municipality, the document of EIS consist of public information for land condition, land status, building, public facility, social facility, utility and the problems based on survey result to social and economic of the community in project area.

7.1.4.2 Resettlement Action Plan (RAP)

The preparation of the RAP undertook a number of steps following the requirements prescribed in the World Bank social safeguards operational manual as well as the LARRIP and IROW guidelines. This section provides the procedure followed by the preparers in cooperation with other concerned players within the DPWH.

Project Familiarization

The JICA Study Team had commissioned a subcontractor that had been tasked to prepare the RAP. Following mobilization, the subcontractor initially had organized a multi-disciplined that first familiarized themselves with the project, its features, location, alignment details, immediate environment, possible affected areas and implementation schedule. To this end, the subcontractor maintained close coordination with the JICA Study Team to secure as much information that it needs to be able to understand fully the project and on this basis, derive the possible social impact that needs to be mitigated through the preparation of the RAP acceptable to JICA Study Team and the client. Also coordination work had been done with concerned DPWH offices starting with the BOT-PMO for direction linkages with agencies outside of the department, the ESSO and IROW for technical guidance, and the NCR for parcellary surveys that determine the affected persons.

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Involuntary Resettlement Policy Review

The subcontractor then: a) collect and review all pertinent Philippine laws, department orders related to land acquisition and resettlement; b) compare these guidelines with World Bank Social Safeguard policies; c) identify the gaps; and d) proposed a harmonized policy for adoption in the project. Whenever there was a disparity identified between the two sets of policies/guidelines, then harmonization was pursued where the minimum requirement will be the World Bank social safeguard policy provisions. During the course of policy review, it was established that DPWH had developed a Land Acquisition, Resettlement, Rehabilitation and Indigenous People’s Policy (LARRIPP) and an Infrastructure Right-of-Way (IROW) manual that it had been using for land acquisition and resettlement work for its road projects. The LARRIPP contains a harmonized resettlement policy following most relevant Philippine laws at the same time conforms to World Bank social safeguard policies. A summary matrix had been prepared containing the above information (i.e. Philippine laws, World Bank policies, gaps, and proposed project policy), and a harmonized project policy that adopted the LARRIP guidelines had been prepared.

Public Consultation Meetings (PCM)

Public consultation meetings were initiated involving all the stakeholders with the end in view of informing them on the project, possible impacts, mitigation measures, and reaching consensus on issues that may arise as a result of project implementation. The specific activities carried out included: a) coordination work necessary to hold the PCM (which include preparation of draft invitation letters, follow-up with concerned stakeholders on the confirmation of the meeting date and venue, etc.); b) prepared presentation and other Information, Education and communication (IEC) materials to be used in the meetings; c) facilitate the conduct of the meetings in behalf of DPWH; d) documented the meeting proceedings; e) arranged for follow-up meeting/s if so necessary; f) secured a consensus with stakeholders on the “cut-off date”; and g) took note of issues raised.

Resettlement Surveys

A total of three surveys were performed which are as follows:

A. Socio-Economic Survey (SES)

The socio-economic survey (SES) of Project Affected Persons (PAPs) proceeded as follows:

i. The survey involved 100% of all non-government agency PAPs which includes landowners, informal settlers,and renters of affected structures;

ii. A standard survey questionnaire was prepared for use in the activity;

iii. The data gathered in the survey were processed using an acceptable commercial software (i.e. SPSS, MS Excel, etc.), and the resulting information generated was placed in appropriate output tables for use in the preparation of the RAP specifically the socio-economic chapter; and

iv. All surveys were done in coordination with the JICA Study Team, BOT-PMO, ESSO and the concerned local officials;

v. The holding of focus group discussion involving severely affected and vulnerable groups such as women, displaced persons, elderly,poor and disabled were originally planned. Separate FGDs was scheduled for the MIAA commercial lease holders, as well as officials of

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affected government agencies. However, in view of the small number of the informal settler PAPs, the survey teams resorted to interview all of the affected households instead. The specific concerns of the PAPs were documented for use in the RAP. Among the items of interest are relocation preferences of displaced persons (i.e. cash compensation, move to government relocation sites, etc.), preferred income restoration program, cultural sensitivities that need to be observed in the selection of relocation sites/livelihood projects, and timing of shifting, and others.

vi. Efforts were made to interview the affected MIAA commercial lease holders. However, only two establishments agreed to be interviewed. In view of this event, the subcontractor no longer pursued the survey covering the commercial establishments. Affected government agencies were not included in the survey.

B. Inventory of Loss (IOL)and Tagging of Affected Assets

An Inventory of Loss (IOL) covering all assets that may be affected by the project implementation was conducted. The IOL was pursued following the declaration of the “cut-off- date” by the survey team in the presence of DPWH, barangay and PAPs representatives. The specific activities include:

i. Preparation of an IOL inventory sheet/checklist (containing a list of all possible affected assets) that was used in the survey;

ii. Identification on the ground, the relative location of the project alignment and took note of the assets that may be affected by the project implementation;

iii. After the declaration of the “cut-off date”, the surveyors proceeded to do the inventory in coordination with DPWH PMO-BOT, ESSO, JICA Study team, concerned local officials and the PAPs. The surveyors provided sufficient time for information on the scheduled inventory to reach the PAPs (whose assets are to be inventoried), through the local barangay officials;

iv. The survey team insured that all structures covered are properly tagged, where the number on the sticker (PAPs code) posted on the affected structure corresponds to the number on the IOL survey sheet. As an added measure, the photograph the PAPs or representative (holding a board/paper showing the PAPs code ) position in-front of the affected asset were taken for future reference.

v. The data contained in the accomplished IOL survey questionnaire were processed using an acceptable commercial software (i.e. SPSS, MS Excel, etc.).

vi. The results of the IOL were recorded in appropriate out-put tables for use in the preparation of the RAP specifically for the resettlement impact chapter and resettlement budget.

vii. The IOL database as well as the accomplished questionnaire were properly stored for later retrieval whenever requested by the JICA Study team or DPWH.

C. Valuation of Affected Assets

The activity was intended to assess and estimate the cost for the affected assets that will have to be acquired (i.e. land) or damage/destroyed (i.e. trees, crops, structures, public utilities, etc) as a result of project implementation. The activity was performed concurrent to the Inventory of Loss (IOL) and tagging operations.

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i. Valuation for Affected Structures

Affected structures were assessed based on replacement cost, defined as the amount necessary to replace (if totally affected) or restore (if marginally affected) the affected structures without deduction for depreciation nor salvage value. The assessor initially determined the extent of the impact the planned project will have on the affected structure. The work was done with the use of the detailed drawings provided by the consultant engineers, as well as actual site inspection of the affected assets. Real estate property values, as well as construction related information for assets within the area, were likewise secured from the relevant local government offices as well as private construction and supply firms, such as cost for local labor, construction materials, transport and other relevant data for reference. Based on the information gathered, the valuer computed the cost of restoring the affected structures. As earlier mentioned, no depreciation nor salvage value were deducted from the recommended replacement price.

ii. Valuation for Affected Land

For affected land, compensation was based on the zonal valuation as determined by the Bureau of Internal Revenue (BIR). Here the local District tax office normally determines what is the average cost of land within a certain area based on the general land-use and its location relative to the main roads and other access infrastructures. It should be noted that the reference unit values can be rejected by the affected persons should they believe these rates are not enough, which would prompt the project owner to establish an appraisal committee that would study the local properties market and propose the fair market value for consideration of the affected persons.

In the case of the NAIAX, most of the affected land are government properties. Only the Citiland lots along the corner of Roxas Boulevard and NAIA Road are the private lands that need to be compensated. The lots at the former Camp Claudio which have not yet been awarded to beneficiaries are still considered government lands. However, the amount equivalent to the value of the affected property will be deposited by government in an escrow account (when the land acquisition will already commence), ready to be paid to the rightful land owner once the courts have made a decision.

iii. Valuation for affected Trees and Ornamentals

Following the LARRIP, the value of the affected trees and ornamental plants used in the landscaping works within the project alignment were based on the rates provided by the Department of Agriculture and Department of Environment and Natural Resources Offices responsible for valuation.

Preparation of an Income Restoration Program (IRP)

The preferred resettlement mode of the affected informal settler community is the “In-City” relocation which involves the physical transfer of their current residence to: a) adjacent open lot owned by the government specifically the MIAA; b) adjacent abandoned government building now occupied by the PNP K9 unit; or c) nearby Balagbag II property of MIAA which is within the same complex. In view of the preferred mode, the PAPs are not expected to be displaced from the existing: a) livelihood source, b) basic utilities (i.e. light, water, garbage collection); c) social support services (i.e. educational facilities, day care, etc.). In view of this condition, there is no urgent need for livelihood restoration, however, qualified member of these disturbed households may be given preferential hiring by the project’s civil works contractor during the actual construction and start-up stages.

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Preparation of a Relocation Site Plan

i. In coordination with the concerned local government (barangay) public consultation meeting were held with the displaced persons to inquire on their relocation preference (i.e. self- relocation with cash compensation, shift to a government relocation facility, return to their place of origin, etc.);

ii. Coordination meetings were held with the concerned local government units of Pasay and Paranaque City, MIAA and NHA, on possible relocation sites and/or facilities near the project site, that can accommodate the potential project displaced persons. The intention of the meetings is to facilitate efforts that will lead towards the displaced persons securing suitable permanent houses/units/lots in an existing or planned relocation site within Pasay or Paranaque City. During these meetings, no concrete agreements were reached on the provision of appropriate relocation facility for the informal settler PAPs.

iii. From the discussions held with the concerned government agencies and informal settler PAPs, what is doable is the “In-City” relocation scheme where the said displaced persons will either: a) move to the adjacent open lot (former California Bus Line garage) owned by MIAA; b) move into the abandoned government building (now occupied by the PNP K9 unit); and c) move to the nearby Balagbag II property of MIAA which had been issued a proclamation for socialized housing. For these three options, there is no need to acquire the land as these are owned by government, and what is necessary is the re-establishment of the affected houses and reconnection of the utilities, drainage pipes and others.

iv. DPWH and MIAA will have to agree on the relocation of the PAPs within the MIAA property described above, and workout the legalization of the PAP’s claim to the land thru the drafting and subsequent approval of the President of the Proclamation converting the land use of the said lots from institutional to socialized housing. This proclamation will be followed by the formal transfer of lots to the PAPs.

Preparation of Resettlement Action Plan

A Resettlement Action Plan (RAP) was prepared following the suggested outline prescribed for World Bank assisted projects with Involuntary Resettlement impacts (OP4.12). The draft report was subject to review by ESSO and later on JICA. The relevant comments raised by ESSO were incorporated into the RAP.

A public disclosure meeting will be conducted following the approval of the RAP to inform the PAPs of the result of the study and its recommendations. The RAP preparers will as much as practicable take into account the relevant and doable comments raised by the PAPs during the meeting.

7.2 STUDY AREA

7.2.1 Environmental Study Area

The proposed NAIAX project is located mostly in Pasay City with a small section falling within the Municipalities of Pasay and Paranaque, all within Metro-Manila. The structure will follow the existing road alignment that links the Fort Bonifacio Military Reservation to Villamor Airbase, the Domestic Airport and the NAIA, Figure 7.2.1-1 shows project location map.

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FIGURE 7.2.1-1 PROJECT LOCATION MAP

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7.2.1.1 Primary Impact Area

An environmental study area for the project was delineated in Figure 7.2.1-2.The study area is composed of the direct impact area, the secondary impact area and the Regional Impact Area. This was defined based on the areal extent of the project activities and the potential impacts that they could generate in the area given the existing bio-physical and socio-economic conditions. The impact zones were subsequently identified corresponding to the areas that would most likely be directly and indirectly affected by the project. Primary impact area of the project is composed of viaduct width and 2m on both sides. Involuntary resettlement related area is Barangay 191 in Pasay city and Barangay Tambo in Paranaque City. Figure 7.2.1-2 shows Primary Impact Area of the project.

FIGURE 7.2.1-2 PRIMARY IMPACT AREA

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7.2.1.2 Secondary Impact Area

The secondary Impact Area is composed of 100m from the viaduct edge on both sides. This area will be indirectly affected by the expressway. The secondary impact area basically involves Barangay185 and 191 in Paranaque cityand Barangay Tambo in Paranaque city. Figure 7.2.1-3 shows Secondary Impact Area.

FIGURE 7.2.1-3 SECONDARY IMPACT AREA

7.2.1.3 Regional Impact Area

Regional Impact Area would cover Pasay City and Paranaque City and neighboring cities. Also Figure 7.2.1-3 referees administrative boundary of the project vicinity as regional impact area.

7.2.2 The Project Affected Areas

Project Site

The project is located in Pasay and Paranaque Cities all within Metro Manila which is designated as the National Capitol Region. The expressway will be installed within the country’s premier airport complex that caters to international as well as domestic passengers and cargo. The complex is owned and operated by the Manila International Airport Authority (MIAA) created primarily to develop the property and manage its facilities. Adjacent to it is Villamor Airbase which is also the headquarters of the Philippine Air force and Fort Bonifactio which is also the headquarters of the Philippine Army.

The elevated expressway will traverse an area mostly within Pasay City that is owned mostly by MIAA a government owned and controlled institution. While there are areas within the complex that are declared as privately owned, these are actually portions of the MIAA property that had been released to the general public in line with the government’s social housing program among others. Areas near the alignment along Barangay 183, 185, 187 have been subdivided under the supervision of the National Housing Authority (NHA) to people that have settled in the area which includes families of Philippine Air force servicemen. Figure 7.2.2-1 contains the

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parcellary map containing the owners of the properties along the road alignment that was prepared by DPWH NCR.

General Land use Along NAIAX Alignment

The project will traverse mostly institutional areas that are airport and support facilities related. In these sites are the 3 international airports, the domestic airport, runways, aircraft hangers, maintenance yards, aircraft control tower, training centers for pilots and aircraft maintenance crew, communication facilities and others. The next dominant land-use is commercial areas found mostly along the road alignment whose current users are catering to the airport patrons and aviation support operations. It is in these lots where establishments like hotels, leisure center, restaurants, cargo forwarding, postal service, airline ticketing offices, banks and others are found. Most of these commercial establishments are leasing lands owned by the MIAA who maintains its right to terminate any agreement should the government needs the land for the general public use, on which the commercial establishments have established their facilities.

The Villamor Airbase that used to occupy a big chunk of land adjacent to MIAA had given up the property fronting NAIA Terminal 3 to private commercial developers during the late 1990s in line with the government’s privatization program of idle assets. PAF maintained their main headquarters and support facilities in the big lot fronting Sales Street as well as the golf course behind the privatized lot which provides the rest and recreation facility of the Air force officers and personnel. This military camp is also a significant user of the airport facilities specifically its two runways and aircraft control tower. Other park and leisure area within the MIAA property is the former “Layong Pilipino” theme park near NAIA Terminal 2 which is a miniature Philippines showing major features of the country for local and foreign visitors.

FIGURE 7.2.2-1 PARCELLARY MAP INDICATING LAND OWNERSHIP

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The residential areas though significant, are mostly found away from the road alignment with the exception of a few lots along Barangay 185 and 191 in Pasay City and Barangay Tambo in Paranque City. As has been explained earlier, these lands have already been alienated from the public domain for use of settlers that had flock to the area. The titles for lots in Barangay 185 and 187 that had been distributed by NHA to the settlers is still in the name of the government agency as the beneficiaries had not yet been able to pay the minimal administrative fees. Figure 7.2.2-2 shows the land use map of the project area.

Project Affected Areas

The alignment of the NAIAX had been so selected inorder to avoid involuntary resettlement related issues. The elevated expressway basically follows the alignment of existing roads within the MIAA complex to minimize land acquisition for ROW. However, in conformity to ASHTO guidelines for highway engineering design, avoidance of involuntary resettlement issues and application of engineering remedies to existing site constraints (i.e. ATO height restrictions, Circulo del Mundo landmark, Park & Fly parking lot, etc.) there are still a number of areas that will be still be affected by project implementation.

FIGURE 7.2.2-2 LAND USE MAP OF THE PROJECT AREA

The affected properties along Sales Street includes the Philippine Air force lot and fencing that are adjacent to the road near the corner of Andrews Avenue and Air force Museum (Figure 7.2.2-3). Along Andrews Avenue fronting the NAIA Terminal III, lot of the airport will also need to be acquired to allow the installation of the toll plaza (Figure 7.2.2-4). The elevated road along the Andrews Avenue section traversing Barangay 185, only a portion of the lot owned by MIAA leased to PAL for its maintenance facility would require acquisition and only a small lot fronting the abandoned NHA will be affected. Adjustments were made by the design engineers to avoid

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affecting the residential, commercial and institutional establishments along Barangay 185 (Figure 7.2.2-5).

Towards the corner of Andrews Avenue and Domestic Road, there are a number of establishments affected starting with the LRTA raw land (government land) along Andrews Avenue and commercial establishments leasing land from MIAA at the Domestic Road (Figure 7.2.2-6), MIAA authorities claim that all long term lease contracts have already expired and current leases are renewed on a yearly basis. Towards the end of Domestic Road and its intersection with NAIA Road at Barangay 191, additional properties of MIAA will be affected, which includes the land and a single story helicopter company building, and an empty lot portion of which had been occupied by informal settlers. The alignment tried to avoid the more expensive Park & Fly multi-story parking lot and a gasoline station at the corner of Domestic and NAIA roads. (Figure 7.2.2-7).

Airforce Property

Sales Street

Andrews Avenue

FIGURE 7.2.2-3 AFFECTED AREAS ALONG SALES STREET

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NAIA III Property

Andrews Avenue

FIGURE 7.2.2-4 AFFECTED AREAS ALONG ANDREWS AVENUE FRONTING NAIA III

Philippine Airlines Motorpool

Barangay 185

FIGURE 7.2.2-5 AFFECTED AREAS ALONG ANDREWS AVENUE AT BARANGAY 185

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Andrews Avenue

Commercial Establishments along Domestic Road

LRTA Property Domestic Road

FIGURE 7.2.2- 6 AFFECTED AREAS ALONG ANDREWS AVENUE AND DOMESTIC ROAD INTERSECTION

Affected Informal Settlers NAIA Road Domestic Road Barangay 191

MIAA Properties

FIGURE 7.2.2-7 AFFECTED AREAS ALONG DOMESTIC ROAD AND BARANGAY 191

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Cavite coastal Road Roxas Boulevard NAIA Road

FIGURE 7.2.2-8 AFFECTED AREAS ALONG NAIA ROAD AND CAVITE COASTAL ROAD

Finally at the end of NAIA Road, an empty lot fronting the road near the corner of Roxas Boulevard, as well as another plot fronting the Cavite Costal Road and adjacent to NAIA road will be affected. The affected idle plot fronting the Coastal Road is part of a government relocation site, while the affected fence belongs to the Coastal Road facility (Figure 7.2.2.1-8).

7.2.3 Project Rationale

The Ninoy Aquino International Airport Expressway (NAIAX) had been conceived to relieve the chronic vehicular traffic congestion within the country’s premier airport by providing a convenient access facility thereby allowing the smooth flow of people, cargo and services not only to and from the airport, but also through traffic coming from the North to the South of Manila and vice versa that can use the expressway as an alternative route.

At present, the volume of vehicular traffic that use the major roads within the MIAA complex had reach amounts that had significantly resulted in longer travel time for airport bound passengers and through traffic commuters passing through the area. Vehicular traffic count in Sales Road conducted in 2010 had indicated that there were 17,484 average annual daily traffic (AADT), which is projected to swell to 36,391 AADT in 2011. The traffic counts in other streets within the MIAA complex include 60,153 at Andrews Avenue fronting NAIA Terminal III; 60,952 at Andrews Avenue fronting the LRTA property; and 79,688 at NAIA Road fronting the Tambo Elementary School.

The current traffic volume as described above, greatly influence the speed at which the vehicles using the roads within the MIAA complex would have. Using the 2010 traffic volume, It is estimated that vehicle speed at the Sales Road will be between 10-30 kph; while the portion of Andrews Avenue before NAIA Terminal III from Sales Road will have over 30 kph but this

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would slow down to between 20-30 kph after the airport towards Tramo Road. Vehicle speed at the stretch of Andrews Avenue after Tramo Road that connects to Domestic and Airport road will have a slow 10-20 kph; while NAIA Road will have an even slower traffic flow at less than 10 kph. Figure 7.2.3-1 shows the vehicular traffic count along critical areas within the MIAA complex and adjacent areas, as well as the estimated travel speed.

Whereas, road widening works have been pursued by DPWH URPO within the last 5 years, to held relieve the traffic problem within the project area, the impact of the remedial measure had slowly been overcome by the ever increasing number of cars, vans, trucks, and buses daily plying the route. Should the chronic vehicular traffic congestion continue to be unchecked, then travel time to get through the Philippine’s premier gateway to the world will be so long that it may be more convenient that the facility will have to be relocated to another site such as the Diosdado Macapagal International airport in the former American Clark Air force base in Angeles City, Pampanga, Central Luzon, about 4 hours drive from Manila.

FIGURE 7.2.3-1 DAILY TRAFFIC VOLUME AND AVERAGE SPEED AT MIAA COMPLEX

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7.2.4 State of Natural Environment

7.2.4.1 Meteorology

The project is located inside Metro Manila where the climate belongs to Type 1 of the Modified Coronas Classification. This type has two pronounced dry (November to April) and wet season (May to October). The average rainfall is 1849.2 mm. The wettest period occurs during the months of June to October. The driest period extends from January to April with mean monthly rainfall of less than 20mm. February is the driest month with only 2.9mm of mean monthly rainfall. The mean annual number of rainy days is 113. In the months of June to October, the number of rainy days ranges from 15 days in June to 20 days in August and 13 days in October. The driest months from January to April with mean monthly number of rainy days ranges from 1 to 2 days.

The mean annual ambient air temperature is 27.4˚C with mean monthly values from 25.6˚C in May. The warmest month is April with a mean maximum temperature of 34.3˚C while the coldest month is February with a mean monthly temperature of 21.2˚C. The annual mean maximum daily temperature is 31.7˚C while the mean annual minimum is 23.2˚C.

The mean annual relative humidity is 75%. It is highest in August and September with a monthly mean of 83% and lowest in April at 66%. The high values of relative humidity in the wet months of June to October are due to high moisture content in the southwest monsoon air-mass while the slightly high relative humidity in December and January are due to low air temperatures.

The wind directions generally follow the synoptic-scale monsoon circulation. During the months from June to August, the southwest monsoon is most intense while in the months from December to February northeast monsoon prevails. An average of about 19 tropical cyclones of various intensities usually passes the country from 2005 to 2009 and its area of responsibility and an average of eight (8) tropical cyclones were observed made landfall in the country.

7.2.4.2 Hydrology

Two natural waterways would be intersected by the proposed elevated road, namely the Paranaque River that empties into the Manila Bay and the Maricaban Creek, which is a tributary of the Paranaque River. The adjacent area along the Paranaque River and the Estero Tripa de Gallina are flood prone. This occurrence has been blamed on siltation and indiscriminate dumping of garbage and other solid wastes into the waterways. Efforts have been pursued by the government in dredging the river of its sediments and the relocation of the informal settled families.

The development of the viaduct expressway, however, is not expected to affect the two natural waterways showing in Figure 7.2.4-1. Metro Manila is highly prone to flooding. The flooding map of Metro Manila indicates that the Domestic Road section of the proposed elevated expressway is prone to flash flooding during thunderstorms or heavy downpours and also seasonal flooding due to overtopping of the Paranaque River banks during rainy season. Figure7.2.4-2shows location map of flood discharge system.

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FIGURE 7.2.4-1 RIVER SYSTEM OF THE CATCHMENT

FIGURE 7.2.4-2 FLOOD DISCHARGE LOCATION MAP

7.2.4.3 Topography and Geology

The project area lies within the southernmost edge of the Central Luzon Basin Physiographic Province of the Philippines. It lies almost east-west across from the reclaimed coastline of Manila

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Bay to the west, trending along the deltaic plain of Pasig River and finally ramps over the Guadalupe Plateau to the east.Table 7.2.4-3 shows topographic, map of the region.

The nearest point of the proposed elevated expressway is within (Fort Bonifacio in Taguig City) lies about three kilometers west of the West Marikina Valley Fault surface trace. The regional tectonic setting of the greater Metro Manila area makes it prone to seismic events emanating from two major earthquake generators such as the Manila Trench to the west and Philippine Fault Zone to the east. The graben-bounding faults on both sides of the valley, termed West Marikina Valley Fault and the East Marikina Valley Fault have been recognized by PHIVOLCS to be potentially active. Two other earthquake generators, the Casiguran Fault and the Lubang Fault are also potential sources of seismicity.

The project where unconsolidated alluvium and poorly cohesive soils occur has the geological conditions that may induce severe ground shaking and liquefaction. Based on the Shaking and Surface Rupture Hazard Map of Metro Manila areas, the project site lies within the average severity hazard zone. The reclaimed land along the coastal margin falls within the above average severity of ground shaking hazard classification. Also, within the Liquefaction Hazard Zone Map of PHIVOLCS the project site falls within the moderate to high liquefaction potential or hazard zone, particularly the reclaimed areas along Manila Bay coastal margin.Table 7.2.3-4 shows geological map of the region.

FIGURE 7.2.4-3 TOPOGRAPHIC MAP OF THE REGION

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FIGURE 7.2.4-4 GEOLOGICAL MAP OF THE REGION

7.2.4.4 Ecosystem

Since the project is located in an urban setting, most of the flora and fauna associated with the area are human influenced such that the natural ecosystem is replaced by artificial human habitations. The vegetation along the project area is no longer natural, but has been planted as part of the urban landscaping and greenery along the road network.

Since the faunal species along the area are mostly synanthropic associated with urban ecosystems such as domesticated dogs and cats, pests such as rodents and avian species commonly found within such areas, no formal/actual inventory or sampling was done. At the same time, the proposed project is not expected to have any significant impact on this particular biological aspect and in fact, has not been identified as an issue/concern during the scoping process.

7.2.4.5 Protected Areas

The project area is located in an urban setting nearby NAIA and harbor area of Pasay and Paranaque cities in Metro Manila, National Capital Region. No protected area is exist vicinity of the project area, most of the flora and fauna associated with the area are human influenced such that the natural ecosystem is replaced by artificial human habitations. The vegetation along the project area is no longer natural, but has been planted as part of the urban landscaping and greenery along the road networks; therefore no such kinds of protected fauna and flora species are existed.

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7.2.4.6 Flora & Fauna

Terrestrial Fauna: Minimal faunal species, mostly domesticated animals (i.e. dogs, cat, and others), have been reported by respondents in the Secondary Impact Area. These animals have been serving mostly as house pets in the residential areas. Other fauna species that have adapted to the urban environment (i.e. rats, birds, in sects and others) have likewise been observed.

Terrestrial Flora: Minimal amount of vegetation can be seen growing within the vicinity of the entire proposed road alignment. These can be classified as trees,shrubs,and grasses.

The tree species include among others Narra (Prerocarpus indicus),mahogany (Swietenia mahogoni), rain-tree (Samanea saman), ipil-ipil (Leucaena leucocephala), golden shower (Cassia fistula),coconut palm (Cocos nucifera) and others. This vegetation may have been planted along the roadside primarily for ornamental purpose shown in Table 7.2.4-1. Some of the trees may already be more than 40 to 60 years old. Shrubs such as palms, bougainvillea, arrow-trees，and others have a1so been planted along the road side and on the islands of MIA Road-Sunset Drive for ornamental purposes. Minimal amount of ornamentals can be seen along the other segments of the road alignment.

TABLE 7.2.4-1 FLORA SPECIES INVENTORY Local/Common Name Scientific Name Local/Common Name Scientific Name Tree species Fruit trees Acacia Smanea saman Banana Musa spp Falcata Albezia falcataria Santol Sandiricum koetjape Mimosa Acacia auriculiformis Papaya Carica paρava Narra Pterocarpus indicus Atis Annona squamata Mahogany Swietenia mahogani Caimito/ Star Apple Chrysophy//um caimito Ipil-Ipil Leucaena luecocephala Ornamental plants Yemane (Gmelina) Gmelina arborea Bougainvilla Bougainνi//ea sp Agoho Casuarina equisitifolia Gumamela Hibiscus rosa-chinensis Talisay Terminalia cattapa Kalachuchi Plumeria acuminata Isis Ficusu ulmifolia Santan Ixora sp Balete Ficus balete Garden plants Mabolo Dispvrus philippensis Malunggay Moringa oleifera Eucalyptus Eucaliptus camaldolensis cassava Manihot esculenta Bamboo Bambusa sp Grasses Fruit trees Cogon Imperata cylindrica Coconut Cocos nucifera Talahib Saccharum spontaneum Mango Mangifera indica. Carabao grass Axonopus compreessus Sampaloc / Tamarind Tamarindus indica Makahiya Mimosa pudica Source:

7.2.5 Socio-Economic Conditions

7.2.5.1 Regional Impact Area

The regional impact area (RIA) of the NAIAX is Metro Manila, the political, economic, education, business, industrial and cultural center of the Philippines. Commonly called the National Capital Region, this administrative region is where the seat of government is located and serves as the venue for the head offices of most Philippine government agencies, as well as foreign embassies, international organizations and business establishments both local and foreign in the country. Improvement in the vehicular traffic conditions in the Philippine’s premier gateway to the world can have a beneficially affect to the whole Metro Manila area as well as the country as a whole.

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7.2.5.1.1 Land-use

The National Capital Region has a total area of about 63,300 hectares which is 0.2% of the total land area of the Philippines (30 million hectares). Of the 17 cities and municipality that compose the NCR, Quezon City has the biggest land area at 17.171 hectares (27.1%), followed by Caloocan City, and Pasig City at 5,580 (8.8%) and 4,846 (7.7%) hectares respectively. Paranaque and Pasay City which are traversed by Phase II of the NAIAX, has a total land area of 4,657 (7.4%) and 1,397 (2.2%) hectares, respectively. Table 7.2.5-1 contains the breakdown of NCR component cities and municipality’s land area.

TABLE 7.2.5-1 LAND AREA OF METRO MANILA COMPONENT CITY / MUNICIPALITY Area City/Municipality (hectares) % 1 Manila City 2,498 3.9% 2 Caloocan City 5,580 8.8% 3 Pasay City 1,397 2.2% 4 Makati City 1,831 2.9% 5 Mandaluyong City 929 1.5% 6 San Juan 595 0.9% 7 Quezon City 17,171 27.1% 8 Muntinlupa City 3,975 6.3% 9 Paranaque 4,657 7.4% 10 Pasig City 4,846 7.7% 11 Marikina City 2,152 3.4% 12 Taguig 4,521 7.1% 13 Pateros 1,040 1.6% 14 Las Pinas 3,269 5.2% 15 Malabon 3,264 5.2% 16 Navotas 894 1.4% 17 Valenzuela 4,702 7.4% Total 63,321 100.0%

Source: MMDA

A paper prepared by the Philippine Center for Development Studies in 2000 had indicated that NCR has a predominantly urban environment. About one third (65%) of the land is devoted to residential areas, more than 10% is for institutional and slightly less than 10% is used for commercial purposes. The large tracks of land within and at the suburbs had been developed for residential area that caters to the big population of the metropolis estimated at 11 million (2009). Similarly, it is in Metro Manila where the business/commercial districts are located in cities such as in Manila, Makati, Mandaluyong, Pasig, and Taguig. The land-use of project area had been discussed earlier sections. Table 7.2.5-2 contains the land use of Metro Manila.

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TABLE 7.2.5-2 LAND USE OF METRO MANILA* Landuse Area % Residential 41,158.7 65 Commercial 5,065.7 8 Industrial 1,899.6 3 Institutional 6,712.0 11 Utilities 2,532.8 4 Agricultural 2,786.1 4 Open Space 2,532.8 4 Forest Land/Parks 633.2 1 Total 63,321.0 100 Source: Land Use Planning in Metro Manila and the Urban Fringes: Implications of the Land and Real Estate Market, Philippine Institute for development Studies, June 200

7.2.5.1.2 Demography

7.2.5.1.2.1 National Demographic Profile

The National Statistics Office (NSO) that had conducted the national census on 01 August 2007, reported that the total Philippine population is about 88.57 million with an average annual growth rate of 2.04 percent. This figure had exceeded the projected average annual population growth rate for the period 2005 to 2010 placed at 1.95 percent by the 2000 Census of Population and Housing. Table 7.2.5-3 shows the country’s population based on census conducted in year 1995, 2000 and 2007. This data show that from year 2000 to 2007, there was an increase of 12.07 million Filipinos within the span of seven (7) years, while from 1995 to 2000, the increase was at 9.88 million. Table 7.2.5-4 presents the average annual population growth rate in the Philippines.

TABLE 7.2.5-3 COMPARATIVE PRESENTATION OF THE PHILIPPINE POPULATION FROM 1995 TO 2007 Census Year Census Date Philippine Population 2007 August 1, 2007 88.57 million 2000 May 1, 2000 76.50 million 1995 September 1, 1995 66.62 million *Source: National Statistics Office

TABLE 7.2.5-4 COMPARATIVE PRESENTATION OF THE COUNTRY’S AVERAGE ANNUAL POPULATION GROWTH RATE FROM 1960 TO 2007 Average Annual Population Growth Rate in Reference Period the Philippines 2000-2007 2.04 % 1990-2000 2.34 % 1980-1990 2.35 % 1970-1980 2.75 % 1960-1970 3.01 % *Source: National Statistics Office

The top three (3) regions with the highest population based on the 2007 Population Census are the Calabarzon (Region IV-A) with 11.74 million, NCR (Metro Manila) with 11.5 million and

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Central Luzon (Region III) with 9.72 million. The combined population in the said regions comprised more than one-third (37.3 percent) of the total population in the Philippines. Aside from the ARMM, the three regions likewise have the biggest growth rate between the years 2000 – 2007. Table 7.2.5-5 contains the population details.

TABLE 7.2.5-5 TOTAL POPULATION AND ANNUAL POPULATION GROWTH RATES BY REGION BASED ON POPULATION CENSUSES 1995, 2000, AND 2007 Total Annual Population Population Growth Rate (%) Region/Province 2000- 1995- 1995- 1-Aug-07 1-May- 00 1-Sep-1995 2007 2000 2007 PHILIPPINES 88,574,614 76,506,928 68,616,536 2.04 2.36 2.16 National Capital Region 11,553,427 9,932,560 9,454,040 2.11 1.06 1.70 Cordillera Administrative Region 1,520,743 1,365,220 1,254,838 1.50 1.82 1.62 Region I - Ilocos 4,545,906 4,200,478 3,803,890 1.10 2.15 1.51 Region II - Cagayan Valley 3,051,487 2,813,159 2,536,035 1.13 2.25 1.56 Region III - Central Luzon 9,720,982 8,204,742 7,092,191 2.36 3.17 2.68 Region IV-A - Calabarzon 11,743,110 9,320,629 7,750,204 3.24 4.03 3.55 Region IV-B - Mimaropa 2,559,791 2,299,229 2,033,271 1.49 2.67 1.95 Region V - Bicol 5,109,798 4,674,855 4,325,307 1.23 1.68 1.41 Region VI - Western Visayas 6,843,643 6,211,038 5,776,938 1.35 1.56 1.43 Region VII - Central Visayas 6,398,628 5,706,953 5,014,588 1.59 2.81 2.07 Region VIII - Eastern Visayas 3,912,936 3,610,355 3,366,917 1.12 1.51 1.27 Region IX - Zamboanga Peninsula 3,230,094 2,831,412 2,567,651 1.83 2.12 1.94 Region X - Northern Mindanao 3,952,437 3,505,708 3,197,059 1.67 1.99 1.79 Region XI - Davao 4,156,653 3,676,163 3,288,824 1.71 2.41 1.98 Region XII - Socsargen 3,829,081 3,222,169 2,846,966 2.41 2.69 2.52 Caraga Region 2,293,480 2,095,367 1,942,687 1.25 1.63 1.40 Autonomous Region in 4,120,795 2,803,045 2,362,300 5.46 3.73 4.78 Muslim Mindanao *Source: NSO, 2007

7.2.5.1.2.2 Demographic Profile of NCR (Metro Manila)

Metro Manila has a total population of 11,553,427 million as of August 1, 2007. Of the 32 highly urbanized cities in the country having more than 1 million populations, among them are in NCR which includes the following cities: Quezon City (2.68 million), City of Manila (1.66 million), and Caloocan City (1.36 million). Of the two cities traversed by NAIAX phase II, Parañaque City has a bigger population of 552,660 while Pasay City has 403,064. The other cities within NCR with the highest population includes Taguig City (613,343), Makati City (510,383), Las Piñas City (532,330), Pasig City (617,301), and Marikina (424,610). All of these areas are located with proximity to NAIAX. With respect to population growth rate, Taguig City had registered to have the highest at 3.82% over the period between 2000-2007, which is followed by Caloocan (3.06%), Paranaque (2.88%) and Pasig (2.80%). It is worth noting that the start of NAIAX Phase I is in Taguig City with the highest population growth rate, while the end of NAIAX Phase II is in Paranaque City also having the 3rd highest growth rate. Table 7.2.5-6 contains the population data for all the component cities and municipality of NCR.

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TABLE 7.2.5-6 TOTAL POPULATION, TOTAL NO. OF BARANGAYS, POPULATION DENSITY AND ANNUAL POPULATION GROWTH RATES IN METRO MANILA Annual Total No. of Total Population Population Local Government Unit Bgys. Population Density Growth Rate (persons per (2000-2007) km2) PHILIPPINES 41,975 88,574,614 - 2.04 NCR (Metro Manila) 1,695 11,553,427 18,246 2.11 City of Manila 896 1,660,714 43,079 0.68 Mandaluyong City 27 305,576 27,138 1.29 City of Marikina 16 424,610 12,500 1.14 City of Pasig 31 617,301 19,913 2.80 Quezon City 142 2,679,450 16,630 2.92 City of San Juan 21 125,338 20,907 0.87 Caloocan City 188 1,378,856 25,855 3.06 City of Malabon 21 363,681 23,076 0.98 City of Navotas - 245,344 22,780 0.87 City of Valenzuela 32 568,928 12,762 2.21 City of Las Piñas 20 532,330 12,815 1.65 City of Makati 33 510,383 18,654 1.91 City of Muntinlupa 9 452,943 9,699 2.48 City of Parañaque 16 552,660 11,589 2.88 Pasay City 201 403,064 21,214 1.77 Taguig City 18 613,343 12,810 3.82 Pateros 10 61,940 29,495 1.05 Source: NSO, 2007

7.2.5.1.2.3 Demographic Profile of Pasay City

Based on the 2007 Census, Pasay City’s population is at 403,064 with an average population annual growth rate of 1.77 percent. While it has the 2nd lowest population growth rate, the City is one of the most congested localities in NCR with a population density of 21,214 persons per square kilometer. Pasay City has 201 barangays and ranks 2nd among the cities in Metro Manila with the largest number of barangays. Out of these barangays, Bgy. 183, and Bgy.184 have the biggest population. These barangays are included in the project’s influence areas.

7.2.5.1.2.4 Demographic Profile of Parañaque City

The results of the 2007 Population Census show that the City of Parañaque has a total population of 552,660 with an annual growth rate of 2.88 percent which is much higher than the NCR’s annual population growth rate of 2.11 percent. Based on the Socio-Economic Profile of Parañaque, its population in 2008 was projected to reach 568,908 with a total household of 18,960 which constitutes about 4.78 percent of the total population of Metro Manila, and 0.62 percent of the Philippines’ total population. Table 7.2.5-7 shows the population growth trend of the City.

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TABLE 7.2.5-7 PARAÑAQUE CITY POPULATION AND ANNUAL GROWTH RATE Census Year Total Population Annual Growth Rate (%) 2007 552,660 2.94 2000 449,811 3.03 1995 391,296 4.57 1990 308,236 3.98 1980 208,552 5.58 1975 158,974 10.37 1970 97,214 4.52 *Source: NSO

For a period of seven (7) years, Parañaque City’s population had an increase of 102,849 persons. This is much higher compared to the increase in population in Pasay City from year 2000 to year 2007, when the population census was conducted.

7.2.5.1.2.5 Demographic Profile of the Barangays that will be Directly Affected by the Project

The road project will be traversing 6 Barangays (Brgy 183, 184, 185, 190, 191), in Pasay City and 1 Barangay (Brgy Tambo) in Paranaque. These barangays have an average household size ranging from 3.5 to 6 members per family. The populations of the traversed barangays are presented in Table 7.2.5-8.

TABLE 7.2.5-8 TOTAL POPULATION OF THE BARANGAYS TRAVERSED BY THE PROJECT Year Total Total No. of Name of Barangay of Population House holds Census Bgy. 183, Villamor (Pasay) 2007 29,4505 6,846 Bgy. 185, Maricaban (Pasay City) 2007 8,850 2,300 Bgy. 184, Maricaban (Pasay City) 2007 9,878 3,300 Bgy. 190 (Pasay City) 2007 7,321 7,507 Bgy. 191 (Pasay City) 2009 3,650 2,706 Bgy. 192 (Pasay City) 2007 5,387 1,500 2009 Bgy. Tambo (Parañaque City) 28,700 5,000 (1st Qtr.)

Most of the Population of the traversed barangays are migrants from various parts of the country such as the Ilocos region, Bicol region, Cagayan Valley, Southern Tagalog region, the Visayas and Mindanao. They had been residing in Metro Manila for more than 10 years. Economic consideration were the primary reason (i.e. easy to look for a job, life is not difficult compared to their areas in the province, better life opportunity and peace and order) for migrating to Metro Manila.

7.2.5.1.3 Local Economic Activities in the Project’s Traversed Areas

7.2.5.1.3.1 Pasay City

The City of Pasay serves as a catalyst of trade among its neighboring cities/municipality in Metro Manila and Calabarzon region. It is also an international gateway not only to Metro Manila but also for the country by being the host of both domestic and international airports, which cater to most incoming and outgoing passengers (both domestic and international

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flights) and tourists traveling to and from the country. The air and land facilities of the city are vital elements that support the business and tourism industry in the country.

The City is known for its airports, small business, tourism and cultural facilities. Its water front at Manila Bay where one of the world’s best sunset is found, its transportation infrastructures (i.e. airport, seaport, road network and rails), proximity to the business centers (Makati & Binondo in Manila) and the seat of Philippine political power (Manila) have all combined to make Pasay City an ideal location to establish tourism and related commercial establishments. About 51% of Pasay City’s land area is even devoted to institutional facilities (i.e. airports, leisure centers, theme parks, government buildings, etc.).

Pasay City has an extensive land transport infrastructure. A number of major highways traverse the area including those that link Pasay to the rest of Metro Manila (i.e. EDSA, Roxas Boulevard, Taft Avenue, South Luzon Expressway, Manila Skyway, etc.). Two major train lines converge in the City which includes the Light Rail Transit (yellow line) and the Metro Rail Transit (blue line). Several bus terminals are also located in the area whose bus destination goes to as far as the Northern Luzon (i.e. Ilocos, Cagayan Valley, Cordillera, and Central Luzon regions), the Bicol Region and to the Visayas (via the Philippine Nautical Highway).

The City LGU had recorded about 47 big hotels most of which are 5 star categories (i.e. Mariotte Hotel, Hotel Sofitel, Heritage Hotel & Casino, Hyatt Hotel, etc.), that had located in the area. The Cultural Center of the Philippines (CCP) complex where facilities (i.e. Cultural Center of the Philippines, Folk Arts Center, Philippine International Convention Center, World Trade Center, etc.) had been established in which many of the cultural activities and international and local conventions are held. Theme parks like the Bagong Nayong Pilipino, Star City, Boom-na-boom, are also sited in the reclamation center, which are often visited by local and foreign visitors. Leisure and shopping facilities such as the Shoe Mart (SM) Mall of Asia (MOA) that was acclaimed as one of the biggest mall in Southeast Asia; as well as the Villamore golf course are all located within the City. For the religious sector, the historical San Juan Nepomoceno Parish Church which is a popular stop-over for Roman Catholic devoutees had been established in Pasay.

National government buildings are also found in the area which includes among others the Office of the Vice President, the Philippine Senate (Upper House of the Philippine legislative body), the Headquarters of the Philippine Air force (Villamor Airbase), the Headquarters of the Philippine Navy, the headquarters of the Government Social Insurance System (GSIS), the Department of Foreign-Affairs (DFA) Head Office, the Bangko Central ng Pilipinas (BCP) and the Light Rail Transit Administration (LRTA). Other prominent institutions with head office in the City includes: the Japanese Embassy, Philippine Airlines, Cebu Pacific, Philippine National Bank, and Shoe Mart (SM) Mall of Asia.

The sitting of important national government offices, business establishments, tourism facilities had resulted in the generation of significant livelihood opportunities for support services catering to these locators that are provided by micro, small to medium entrepreneurs. These include merchandizing/trading, transport operators, restaurants and cafes, tour and travel agencies, souvenir shops, bookstores, variety stores, laundry shops, tailors, electrical and electronic supply and repair shops, and many others. In 2000 a total of 8,461 establishments had been registered at the Pasay City Hall of which 56.6% are into trading. Other line of business include a) professional services; b) utility services; c) financial services; d) rest and recreational business services; e) personal services; f) allied medical services; g) public terminals and h) public learning institutions (schools). Table 7.2.5-9 contains the details on the general business classification of establishments in the City and their number)

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TABLE 7.2.5-9 CLASSIFICATION OF COMMERCIAL ESTABLISHMENTS IN PASAY CITY Business Classification Number Percent to Total General Merchandising and Retail 4,792 56.6% Professional Services 1,394 16.5% Utility Services 762 9.0% Financial Services 462 5.4% Rest & Recreational Business Services 339 4.0% Personal Services 258 3.0% Allied Medical Services 209 2.5% Manufacturing Fabrication 168 2.1% Public Terminals and Commercial Garage 41 0.5% Private Learning Institutions 36 0.4% TOTAL 8,461 100.0% Source: Pasay City Business Permits and License Division, 2000

Further review of the nature of business pursued by the merchandizing and retailing sector would yield that these entrepreneurs are directly and indirectly benefiting from the sectors (National government and private sector offices, tourism related facilities, transport sector etc.) that had established in the city. General merchandisers/retailers provide the locators the supplies and materials needed to continue their operations, sari-sari stores/restaurants/fast-food stores etc. caters to the needs of the said establishments personnel and at times even the local and foreign visitor; and many others. Table 7.2.5-10 contains the details on the type of entrepreneurs in the trading sector, their number and proportion to the total business establishments in Pasay City.

TABLE 7.2.5-10 PROFILE OF GENERAL MERCHANDIZING AND RETAIL IN PASAY CITY Percent of General Merchandising and No. of Percent of Total Retail Sector Establishments Sector Total Business Establishment Gen. Merchandise & Retail 1,964 41.0% 23.2% Sari-Sari Stores 1,346 28.0% 15.9% Food Chain Outlets 522 10.9% 6.2% Dealer/Trading & Marketing 458 9.6% 5.4% Export/Import 180 3.8% 2.1% Restaurants/Fastfoods 166 3.5% 2.0% Bakeshops 156 3.2.% 1.9% TOTAL 4,792 100.00% 58.7% Source: Socio-Economic Profile of Pasay City, 2000

Labor Force and Employment

The current labor force in Pasay City is more than two thirds of the population estimated at about 350,000. The big percentage of individuals in the working age is due to the increasing number of teenagers and children who are already working or are engaged in economic activities.Based on the 2000 Socio-Economic Profile of Pasay City, its labor force is more than 291,800 representing 84.5 percent of its total population. Figures indicate that there are those

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who were gainfully employed in various enterprises, corporations, government agencies, and some commercial centers. It is also worth noting that there are an increasing number of individuals who are self-employed by venturing in various micro enterprises such managing restaurants or eateries (carinderia), selling cooked foods and various dry goods, fruits, etc. Many of the business firms in Pasay are related to visitors’ trade such as travel agencies, transport sector, real estate, foreign exchange business, and various kinds of buy and sell trade. The presence of side walk vendors is highly noticeable along the roads and in any busy streets in Pasay City, going to Baclaran Church, and other adjacent areas.

It is worth noting that an efficient road transport system within the MIAA complex will greatly benefit all sectors that had established its offices and are operating within the City of Pasay. Chronic vehicular traffic congestion within the project area will discourage investors, tourists, and foreign government officials from visiting the country. Governing the country, looking after its security and operating business within the City will continue to be difficult as the years go by should the vehicular traffic congestion not be resolve, of which is the primary objective of the project.

7.2.5.1.3.2 Parañaque City

The current economic activities of the people of Parañaque’s are concentrated mainly on small and medium business enterprises. It has increasing number of vendors who are selling various food stuffs, general merchandising, fruits and vegetables, fish, and other goods. Others sell cooked viands and manage “carinderia” or eateries. In year 2008, the city has 15,903 business and commercial establishments and out of this number, 125 are commercial banks, two (2) savings banks and the rest are rural banks. It has also 175 manufacturers and more than 1,169 sari-sari stores.

Parañaque City has only one large public market located at Barangay La Huerta while the remaining 184 are privately owned. Farming and fishing are also identified as source of income of its citizens. The annual production of vegetables in the City reached 42.288 MT as of 2008 while fish production reached 04,940 MT. It has also a total of 195 residents who have fishing boats (15 with motorized oats and 55 non-motorized boats). As reported in 2008, the City has also 25 commercial fishing boats in the coastal waters of Parañaque along Manila Bay

Labor Force

It is estimated that the labor force of Parañaque is about 65.80 percent of its population or 371,274 persons. Based on the NSO 2007 Census, there are about 262,119 (70.60%) economically active persons and 109,117 (29.39%) not economically active persons. Likewise, 195,587 (52.68%) are males and 175,686 (47.32%) are females. On the other hand, the unemployed individuals number to 77,036 persons or 6.8% of total population, while the employed ones comprised 93.20%.

Agriculture Resources

Paranaque still has agricultural and open fisheries area that many of its citizens are dependent on for their livelihood. The annual production of vegetables in Parañaque City reached up to 42,288 MT in 2007 that consists of petchay, mustard and kinchay. The City’s fishing industry has 67 registered fishermen that are operating along the coastal areas of Manila Bay. In 2005, the average daily fish catch consisting of banak, salinyasi, buging, kapak, crabs, bangus and other marine resources reached to 49,924 kilos. As of 2007, the City has registered a total of 195 fishing boats of which 15 are motorize boats, 55 non-motorized boats; and 25 commercial

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fishing vessels. In 2007, the total fish production of Parañaque City reached 104,940 MT; 125,730MT in 2006; 155,725MT in 2005 and 115,862MT in 2004.

Business and Commercial Establishments

A total of 15,903 business and commercial establishments were issued license and business permits in 2008. Out of this number, 131 are banks; 175 manufacturers and 1,169 sari-sari stores. The City has also 85 markets catering the consumer needs of the population (84 private and 1 public markets).

Tourism Industry

Parañaque City is frequently visited by tourists, both local and foreigners due to presence of some famous historical landmarks such as the Baclaran Church which attracts countless Roman Catholic devotees from all over the country most especially on Wednesdays. Other famous places of interest are the SMMall of Asia, Baclaran Bargain Market, Dampa Restaurant in the Coastal area, Fiesta Shopping Mall, La Huerta, Casino Filipino, Loyola Memorial Park, Manila Memorial Park, SM City branches in Parañaque/Bicutan/Sucat, St. Andrews’s Cathedral, and many others. Visits by tourist and devoutees are made possible due to the accessibility of these landmarks from Pasay City and other adjacent areas of Metro Manila through the existing land transportation infrastructures such as major roads (i.e. EDSA, Taft Avenue, Roxas Boulevard, Cavite Costal Road, Quirino Highway, etc.), trains (LRT 1 and MRT 1) and airports (NAIA Terminal 1,2 & 3 and Domestic Airport).

7.2.5.1.4 Social Infrastructure

According to the Community Based Monitoring System (CBMS) survey result of Pasay city, existing transport infrastructure facilities are as follows:

Road network: 158.75km in road length, Number of bridges: 8, Airport: (NAIA IPT 2 and 3, Domestic airport, Gen. Aviation), Railway: Mass Rapid Transit (MRT), Light Rail Transit (LRT-1),Terminals: Bus terminal- 28, Jeepney / FX terminal-4, Tricycle terminal-78.

Pasay city has a vision on upgrade infrastructure and utility systems, support business and commercial activities, promote multi-sectoral partnerships, promote welfare of city residents, enhance the city’s image, upgrade the level of LGU service, maximize tourism potentials and increase the LGU’s revenue. To realize the city’s vision, major transport infrastructure projects are identified as i) widening of city streets, ii) construction of bridges, iii) construction of ramp fly over, and iv) development of multi-modal terminal, these are planned at northern area of the city.

Also Pasay city has a master plan scheme of the Park Strip Plan, the plan shows that along the park strip, a bike lane maybe constructed to promote mobility through non-motorized vehicle. Scheme of the Park Strip Plan is shown inFigure 7.2.5-1.

According to the Community Based Monitoring System (CBMS) survey result of Pasay city, livelihood related infrastructure case is as follows:

- Water and sanitation: proportion of households with no access to safe water-1.8 %, and proportion of households with no access to sanitary toilet facilities-2.7%. - Housing: Proportion of households living in makeshift housing-7%, and proportion of households who are squatters-4%

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FIGURE 7.2.5-1 PASAY CITY PARK STRIP PLAN

7.2.5.1.5 Historical/Heritage Sites/Religious Shrines

The historical/religious sites present within Pasay City and Paranaque are the old Roman Catholic Churches that had been built during the Spanish era. Churches like the Baclaran Church (Paranaque) and the San Juan Nepomoceno Parish Church (Pasay) attract countless visitors that pay pilgrimage to these religious artifacts. While none of these two churches are within the project area, access to them can be greatly enhanced if the main roads along the MIAA complex is decongested of its chronic vehicular traffic problem.

7.2.5.2 Primary and Secondary Impact Area (Based on Socio-Economic Survey)

Socioeconomic studies conducted under the NAIAX project over the project area focused on the affected persons such as the severely affected and vulnerable groups (i.e. informal settlers, poor and women-headed households all without support systems.). Structured interviews using an agreed survey questionnaire was pursued involving all of the potentially displaced informal settlers selected in two barangays which includes Barangay 191 (Pasay City) and Barangay Tambo (Paranaque).

Attempts were made to also interview the affected commercial establishments leasing properties of MIAA, however, only two out of 30 companies agreed to cooperate with the survey teams. Since participation in the socioeconomic survey is voluntary in nature, the survey team are unable to get information from the commercial establishment lessees. An overview have also been provided for the other affected institutions having properties along the alignment.

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FIGURE 7.2.5-2 LAND-OWNERSHIP MAP OF THE PROJECT AREA

7.2.5.2.1 Occupants of the Study Area

General

The NAIAX is located within a predominantly institutional area owned by government agencies. Within these institutional areas, there are locations that are leased to private commercial establishments, while there are some that are occupied by informal settlers. There are likewise some privately-owned lands, most of which were alienated from the MIAA complex for socialized housing. This section provides an overview of the occupants of the study area and includes a socio-economic profile of the severely affected vulnerable groups.

There are 6 government institutions owning properties within the MIAA complex which includes the: a) Manila International Airport Authority (MIAA), b) Philippine Air Force; c) Light Railway Transit Authority (LRTA); d) Bases Conversion Development Authority (BCDA); and the Philippine Postal Corporation (PPC). Similarly, there are a number of private properties sited near the alignment specifically lands along Andrews Avenue which actually were part of the MIAA complex which were later on released for alienation specifically for socialized housing. These lands were occupied by former military personnel (from Villamore Air Force Base) and informal settlers that had settled the undeveloped portion of the MIAA complex. Also at the end of the NAIAX along NAIA Road reaching as far as Roxas Boulevard, the road alignment did enter into private properties which includes a vacant lot owned by Citiland (corner of Roxas Boulevard and NAIA Road) and government lands (formerly the Philippine Navy’s Camp Caludio) that had been released for alienation at the corner of NAIA Road and Cavite Coastal Road that is now administered by National Housing Authority (NHA) for the Bases Conversion Development Authority (BCDA).

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An office was established by the National Housing Authority (NHA) within the project site at Barangay 185 responsible for socialized housing development primarily to distribute the released government lands to the lot beneficiaries. It can be noted that while the lots have been subdivided and had been assigned to specific families, most have not paid the minimum administrative fees for such land transfer. It is for this reason that most of the lands in these socialized housing sites are still in the name of the government. This condition is true even for the affected areas in the Camp Claudio socialized housing site in barangay Tambo. Figure 7.2.5-2 contains the land ownership map that shows the property owners of lands along the MIAA complex.

While most of the land along the road alignment, is owned by government, these areas are currently occupied by a number of institutional, commercial and residential establishments. Structures along the Sales Road are mostly part of the Philippine Air Force Headquarters facilities (i.e. Air Force Museum, Hospital, golf course, etc.) with a small portion belonging to the former Villamore Air Force base that had been release to the general public and is now a commercial complex. Structures along the first segment of Andrews Avenue include the NAIA Terminal 3, and private enterprises occupying the former Air force base land, and small commercial establishments in Barangay 185 near the Circular del Mundo landmark. The second segment of Andrews Avenue are occupied by airport related commercial establishments that are leasing MIAA properties as well as the LRTA. The Domestic Road segment has commercial establishments also leasing MIAA properties. Along the NAIA Road segment, private and government structures can be seen including the affected informal settler colony occupying MIAA lands at the corner of NAIA Road and the Paranaque River.

7.2.5.2.2 Affected Government Institutions

A. Manila International Airport Authority (MIAA)

The Manila International Airport Authority is the government agency under the Department of Transportation and Communications (DOTC) that is authorized to manage the Ninoy Aquino International Airports (Terminals1-4) as well as the properties within the MIAA complex. The agency was given its mandate on 4 March 1982 by virtue of Executive Order 778 which was amended by Executive Order 903 (23 July 1983). Most of the land and structures affected are owned by MIAA including the structures that are leased by affected commercial establishments along Andres Avenue, Domestic Road and NAIA Road, as well as the piece land on which the project affected informal settler colony had built their residential structures on the corner of NAIA Road and Paranaque River.

B. Philippine Air Force (PAF)

The Philippine Air Force is the branch in the Philippine military establishment responsible for safeguarding the country’s territorial airspace. The PAF is one of the major services of the Armed Forces of the Philippines (AFP) with headquarters at the Villamore Air Force Base. The AFP is a big bureau under the Ministry of National Defense. The road section along Sales Road will have PAF facilities on both sides of the road. The widening works to be implemented along the Sales Road will affect a strip of land and concrete fencing of Villamore Air Force on which an on-ramp will be built to allow vehicles exiting NAIA Terminal 3 to enter the NAIAX elevated expressway. Figure 2.1-7 shows the location of the PAF land that will be affected.

C. Light Railway Transit Authority (LRTA)

The Light Railways Transit Authority (LRTA) is the premier rail transport institution in the Philippines which is mandated to construct, operate, maintain and/or lease facilities related to light railway transport within the country. It was created by virtue of Executive Order No. 603

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(12 July 1980), which was later amended by Executive Order 830 (September 1982) and EO 210 (17 July 1987). LRTA is under the Department of Transportation and Communication (DOTC) and has its offices at the block between Airport Road and Aurora Boulevard (Tramo Road). This government institution will have part of its idle lands and a few minor structures fronting Airport road affected by the road alignment. Figure 2.1-4 contains the location map that indicates the location of the affected LRTA property.

D. Philippine Postal Corporation (PPC)

The Philippine Postal Corporation has a long 250 years history dating back to the year 1767 when the first post office was established by Spain in Manila. The postal service had through the years increase its coverage and grew in its assets and personnel. The office also changed its form from being a postal district of Spain (1779), then a bureau under the Department of Trade and Industry (September 1902), to the Bureau of Post in 1987 under the Department of Transportation and Communications, and finally to the present day Philippine Postal Corporation (2 April 1992) by virtue of RA 7374. The PPC will have a strip of land of its satellite post office fronting the Domestic Road affected, as a result of the road widening works. Figure 2.1-5 contains the drawing of affected lots near the corner of Domestic Road and NAIA Road where the LRTA property will be affected.

E. Bases Conversion Development Authority (BCDA)

The Bases Conversion Development Authority had been created by virtue of RA 7227 (1992) primarily to accelerate the sound conversion of former US Military Bases as well as Metro Manila military camps into productive civilian use. BCDA was responsible for disposing of lands within the Villamore Air Force base fronting NAIA Terminal 3 to civilian commercial use. It is also responsible for the conversion of lands that was once “Camp Claudio” of the Philippine Navy in Barangay Tambo (Paranaque City) into socialized housing area that is under distribution by NHA. It is here in the former Camp Claudio where the structures of 6 affected lot beneficiaries are located fronting the Cavite Coastal Road. While the lots have already been assigned to the beneficiaries, however issuance of TCT cannot yet be pursued at the time of the report writing, since there is an on-going court case on the land where there are overlapping claims over land-ownership. For the moment, the affected land still belongs to BCDA.

7.2.5.2.3 Affected Commercial Lessees

There is an estimated 30 big commercial establishments that are leasing properties of MIAA that will be affected by the implementation of the NAIAX. These establishments are located along Andrews Avenue, Airport Road, Domestic Road and NAIA Road. According to MIAA authorities, most of the long-term lease of these establishments had already expired and renewals are done on a yearly basis. The listing of the affected facilities of commercial lessees located along Domestic Road found in Table 7.2.5-11.

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TABLE 7.2.5-11 LISTING OF AFFECTED MIAA COMMERCIAL LESSEE FACILITIES``` Name of Affected Facility Location Nature of Business Zest Air Cargo Logistics & Ticketing 1 Domestic Road Air cargo services Office Airline Ticketing 2 Air Philippines Express Cargo Domestic Road Office Cebu Pacific Ground Support Equipment Aircraft ground 3 Domestic Road Department maintenance Cargo and Courier 4 LBC Baclaran-Domestic Branch Office Domestic Road service office 5 Boracay Red Coconut Airline Domestic Road Airline office Cargo and courier 6 2GO (An Aboitiz Company) Domestic Road service Airline service and 7 Pacific Pearl Airways Domestic Road aviation school 8 Lin Lu Restaurant Domestic Road Restaurant 9 Carmelino’s Grill Domestic Road Restaurant Cargo forwarding 10 AP Cargo Logistic Network Corporation Domestic Road service 11 Seair Cargo Domestic Road Air cargo services Zest Air Ticketing Office (within Airline ticketing 12 Domestic Road Domestic airport) office 13 Snacks/Food Kiosk Ala Eh Café Domestic Road Restaurant Airline operations 14 Cebu Pacific Air Operations Center Domestic Road office Asia Aircraft Philippines (AAOP) Office Airline operations and 15 Domestic Road & Hanger aircraft hanger Philippine Airlines (PAL) Data Airline operations, 16 Domestic Road Center/Allied Banking Corpn. Banking Building 17 Salem Complex Administration Domestic Road administration which hosts restaurants. Airline operations 18 Cebu Pacific Training Center Domestic Road training school 19 Varace Air Corp/Aeroshell Domestic Road 20 Cebu Pacific Fuel Farm Office Domestic Road Airline operations Airline ground 21 Philippine Airlines (PAL) Motorpool Domestic Road maintenance 22 DHL Domestic Road Cargo forwarding Airline ground 23 Macroasisa Airport services Domestic Road support services 24 World Citi Colleges Domestic Road School 25 Juan Travel & Tours Domestic Road Travel agency

7.2.5.2.4 Informal Settler PAPs

The socio-economic survey (SES) and Inventory of Loss (IOL) had identified a total of 61 affected Persons, 53 from Barangay 191 (Pasay City) and 8 from Barangay Tambo (Paranaque City). The PAPs from Barangay 191 are from an informal settler colony established within MIAA property that is bounded on the South by the NAIA Road and Paranaque Bridge, on the West by the Paranaque River, on the North by the former Bureau of Land Transportation Office (now occupied by the PNP K9 unit) and on the East by the Park & Fly Parking Building and

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former California Bus Line Garage. Similarly, the affected PAPs from Barangay Tambo are residing in the relocation site at the former Camp Claudio beside a service road fronting the Cavite Coastal Road on its Western side. The following sections describe the demographic and socio-economic conditions of the informal settler PAPs.

7.2.5.2.4.1 Demography and Basic Information

A. Household Size

Slightly more respondents have household sizes between the range of 1-4 members (54.7%) as compared to those families having between 5-10 members (42.2%). It is interesting to note that there still households (3.13%) that despite their poverty (as will be explained later on), they still choose to have more than 10 family members. The Barangay 191 informal settler respondents have the slightly more households (51.9%) having 1-4 household members as compared to Barangay Tambo who that have 66.7% of respondents. Table 7.2.5-11 contains the detailed breakdown of house-hold family sizes.

TABLE 7.2.5-12 PROJECT AFFECTED FAMILIES HOUSE-HOLD SIZES House Hold Size (member) Barangay/City Unit Total 1-4 5-10 > 10 Barangay 191/ Members 27 23 2 52 Pasay City % within 51.9% 44.2% 3.8% Barangay Barangay Tambo/ Members 8 4 0 12 Paranaque City % within 66.7% 33.3% 0.0% Barangay Total 35 27 2 64 % 54.69% 42.19% 3.13%

B. Residency at Affected Area

A review of the residency history of the affected persons in the locality, would show that many (46.2%) of the respondents have reported to have been living in the area in the 1980s are earlier. Another 44% of respondents claim that they have been staying in the project area between 1990 to 2000; and the remaining 3% have settled in the area by the 2010s. This statistics is significant to state that a little less than 50% of the total respondents are eligible to avail of socialized housing as provided for the Urban Development and Housing Act (UDHA), and that they cannot be just displaced by government without due process. The early residents (1970s and earlier) may suggest that these households especially in the Barangay Tambo area, may be among the residents of “Camp Caludio” when it was still a naval facility, just like those residents of the Maricaban area (i.e. Barangay 183, 185, 187) that were former Air Force servicemen probably stationed in Villamor Air Force Base. Some of the relatively new comers in the affected community may actually be relocates from other blight areas, and renters or free boarders (with or without owner’s consent) of structures established by absentee informal settlers. Table 7.2.5-13 contains the details on the residency history of the affected persons.

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TABLE 7.2.5-13 RESIDENCY HISTORY OF RESPONDENTS Barangay/ Start of Residency (Decade) Unit Total City <1970s 1980s 1990s 2000 2010 Barangay 191 Count 1 24 9 20 3 57 Pasay City % within 1.8% 42.1% 15.8% 35.1% 5.3% Barangay Barangay Count 7 0 3 2 0 12 Tambo Paranaque City % within 58.3% 0.0% 25.0% 16.7% 0.0% Barangay Total 8 24 12 22 3 69 % 11.6% 34.8% 17.4% 31.9% 4.3%

C. Ethnicity of Respondents

Majority of the respondents are Tagalogs (36.2%), followed by Bisayas (27.5%), then Ilonggos (20.3%), Bicolanos (10.1%) and finally Ilocanos (5.8%). As can be gleaned from these statistics, the Tagalog speaking people are more than each of the individual groupings probably due to the comparative shorter distance from where they would have originated from. The ethno-linguistic grouping of Bisaya is quite confusing as this may refer to people speaking the Cebuano dialect that includes people from Central Visayas and most parts of Mindanao. The Waray ethno-lignguistic group that hails from Eastern Visayas may also associate with the Bisaya group as they can also speak the Cebuano dialect. It is interesting to note that many if not all of these respondents came to Metro Manila in search of a better life than the one they had back in their respective provinces. It is unfortunate that these households were unable to find the job they were seeking and were forced to reside in the informal settler colony in Barangay 191. Later on in this chapter, it will be seen that education seem to be not the issue as some respondents did finish their college education. As for Barangay Tambo respondents, they would probably have been relocated there from other areas with the exception of those that had earlier set their residency in the former Camp Claudio naval facility. Table 7.2.5-14 contains the Ethnicity of Respondents.

TABLE 7.2.5-14 ETHNICITY OF RESPONDENTS Ethno-Linguistic Grouping Barangay/City Unit Total Ilocano Tagalog Bicolano Bisaya Ilonggo Barangay 191/ Count 1 24 9 20 3 57 Pasay City % within 1.8% 42.1% 15.8% 35.1% 5.3% 100.0% Barangay Barangay Tambo/ Count 7032 0 12 Paranaque City % within 58.3% 0.0% 25.0% 16.7% 0.0% 100.0% Barangay Total 8 24 12 22 3 69 % 11.6% 34.8% 17.4% 31.9% 4.3% 100.0%

D. Educational Attainment

From the 69 respondents, 37.7% had reach college education level where 14.5% of them actually finished their respective courses. Less than half (43.4%) of the respondents at reached

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high school where 24.6% of them graduated. Another 5.8% of those interviewed had finished a vocational course. From the statistics, it can be gleaned that the literacy level in the affected area is fair and that a number of the respondents do have the educational level to qualify for stable professional work or jobs requiring skilled labor. Table 7.2.5-15 contains the details of the educational attainment levels of respondents.

TABLE 7.2.5-15 EDUCATIONAL ATTAINMENT OF RESPONDENTS Education Level Barangay/ High Elementary High Vocational College Total Unit Elementary School College City Under- School Course Under- Graduate Under- Graduate graduate Graduate Graduate graduate graduate Brgy 191 Count 4 2 11 15 4 13 8 57 Pasay City % within Brgy 7.0% 3.5% 19.3% 26.3% 7.0% 22.8% 14.0% Brgy Tambo Count 1 2 2 2 0 3 2 12 Paranaque % within Brgy 8.3% 16.7% 16.7% 16.7% 0.0% 25.0% 16.7% Total 5 4 13 17 4 16 10 69 % 7.2% 5.8% 18.8% 24.6% 5.8% 23.2% 14.5%

E. Gender of Household-heads

Majority of the household heads interviewed are male corresponding to half of (50.7%) respondents. Women-headed household heads make up one third (36.2%) of total respondents with the remaining number divided into 3 other categories such as child-headed household (7.2%), parent headed household (2.9%), and siblings (2.9%). The women-headed households are those ladies that have lost or separated from their husbands, and are currently standing as the head of the family. The child-headed households, are those families where the guardian are no longer in a condition to provide for their members and as such, the eldest or most responsible son/daughter had taken on the responsibility of leading and providing for the family.

TABLE 7.2.5-16 GENDER OF HOUSEHOLD HEADS Barangay/Cit Head of Household Unit Total y Male Female Child Parent Siblings Barangay 191 Count 30 21 2 2 2 57 Pasay City % within 52.6% 36.8% 3.5% 3.5% 3.5% Barangay Barangay Count 5430 0 12 Tambo Paranaque City % within 41.7% 33.3% 25.0% 0.0% 0.0% Barangay Total 35 25 5 2 2 69 % 50.7% 36.2% 7.2% 2.9% 2.9%

Close-family ties is one of the known characteristics of Philippine society. In a number of cases, extended families have been reported. This (extended family) is a condition where mature children that may have their own families, still live in the house of the parents. Extended families do occur in the survey area which can explain why there are parent-headed households and those families that have 10 or more members. Similarly, there are groups of individuals, brothers, sisters or both that are living in the area without their parents or guardians, which constitute those reported as siblings. Table 7.2.5-16 contains the details of the household head.

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7.2.5.2.4.2 Socioeconomic Characteristics

F. Income and Expenditures

Majority (34.8%) of respondents claim that their primary source of income comes from employment and/or professional practice. These individuals are former employees of the Land Transportation Office (LTO) or “fixers” which are persons who facilitate for a fee, the processing of drivers licenses, motor vehicle registration, public transport franchises, and many others. The LTO South Motor Vehicle Inspection Office (MVIS) that used to occupy a building near the informal settler colony, require among others legal documents (i.e. affidavits, notarial of public documents, etc.) to support applications for permits, licenses, etc. filed by the public at the LTO. These legal documents are prepared by professionals such as lawyers and their support staff.

Similarly, there are small-scale business operators (27.5%) such as “sari-sari” (variety) stores and “carinderias” (small eateries) that are operating within the informal settler colony. The structures that these small establishments occupy are actually part of the residential unit that been modified to allow such business operation. One entrepreneur even occupied a portion of the Electrical road which was used as a carinderia and installed an overhanging nylon roofing to protect their patrons from the sun and rain. These small shops mostly have members of the colony as their customers.

There are also respondents that provide their services as skilled (18.8%) and unskilled labor (8.7%). Skilled labor include carpenters, masons, drivers, heavy equipment operators, automotive mechanics, electricians, and electronics technicians, and others. These individuals may be employed on a fulltime or part-time basis. About 10.1% of the respondents say that they subsist on remittances from members of their family. Table 7.2.5-17 contains the breakdown of respondents based on their primary income sources.

TABLE 7.2.5-17 PRIMARY SOURCE OF INCOME OF PAFS Income Source Barangay/ Unit Skilled Unskilled Professional Professional Business Total City Remittance Labor Labor Employment Practice Operator Brgy 191 Count 13 6 20 0 12 6 57 Pasay City % within 22.8% 10.5% 35.1% 0.0% 10.5% Barangay Brgy Count 0 0 2 2 7 1 12 Tambo Paranaque % within 0.0% 0.0% 16.7% 16.7% 58.3% 8.3% City Barangay Total 13 6 22 2 19 7 69 % 18.8% 8.7% 31.9% 2.9% 27.5% 10.1%

Only a third of the respondents (31.9%) have secondary income source. About 11.9% of them are also engaged in professional employment, 11.6% and 2.9% do additional skilled and unskilled labor respectively; while 5.8% have extra business operation. The location of their colony which is within the MIAA complex where there are numerous commercial and institutional establishments, allows these respondents the opportunity to be engaged in secondary income. Table 7.2.5-18 contains the details of the secondary income sources of respondents.

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TABLE 7.2.5-18 SECONDARY SOURCE OF INCOME OF PAFS Income Source Barangay Unit Skilled Unskilled Professional Professional Business Total / City None Labor Labor Employment Practice Operator Brgy 191 Count 5 2 8 1 3 38 57 Pasay City % within 8.8% 3.5% 14.0% 1.8% 66.7% Barangay Brgy Count 2 0 0 0 1 9 12 Tambo Paranaque % within 16.7% 0.0% 0.0% 0.0% 8.3% 75.0% City Barangay Total 7 2 8 1 4 47 69 % 10.1% 2.9% 11.6% 1.4% 5.8% 68.1%

More than two thirds (68%) of the affected households have average annual income above P82,328 which is the National Capital Region’s (NCR) annual poverty threshold (Philippine Statistical Yearbook, 2010). These respondents are those that are engaged in small-scale business, perform professional services and work as employees. The remaining 31.8% of respondents have incomes that fall below the poverty threshold, of which 21.7% of them (15 HH) earn below the annual food threshold of P47,228 for a family of four (4). It is these 15 households that are in dire need for assistance. Table 7.2.5-19 contains the details of the annual average HH income.

TABLE 7.2.5-19 ANNUAL HOUSEHOLD INCOME OF PAFS Annual HH Income (P) Barangay/City Unit Total <47,228 <47,228 - 82,328 >82,328 Barangay 191 Count 10 6 41 57 Pasay City % within 18% 11% 72% Brgy Barangay Count 5 1 6 12 Tambo Paranaque % within 42% 8% 50% Brgy Total 15 7 47 69 Total % 22% 10% 68%

Food is the primary expenditure of the affected households with 69% of all respondents reporting to have spent an average of P5.5 million per year of the item. Respondents from Barangay 191 claim to have spent more on food at P6.39 million per household per annum as compared to that of affected persons from Barangay Tambo at P1.14 million. Utilities is the second biggest cost of the respondents at an annual average expenditure of P1.02 million per household, while education comes third at an average of P0.605 million per household. Interesting to note that respondents in Brgy 191 spend more on utilities (P1.17 million) and education (P0.693 million) as compared to those interviewed from Brgy Tambo (P0.342 million and 0.374 million respectively). Table 7.2.5-20 provides the details on HH expenditures.

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TABLE 7.2.5-20 ANNUAL HH EXPENDITURES OF PAFS Annual HH Expenditures (P) Barangay/City Unit Total Food Utilities Education Average HH 6,390,127 1,168,107 693,190 8,251,424 Barangay 191 Expenditure Count 40 10 6 57 Pasay City % within Brgy 71% 18% 11% Average HH 1,140,975 342,100 374,300 1,857,375 Barangay Tambo Expenditure Count 7 2 2 12 Paranaque % within Brgy 62% 18% 20% Average HH 5,586,114 1,024,454 604,916 Total Expenditure Total 48 12 9 69 % 69% 18% 13%

TABLE 7.2.5-21 STRUCTURE OWNERSHIP Ownership of Structures Barangay/City Unit Free Total Own Rent Occupants* Count 40 14 3 57 Barangay 191 % within 70.2% 24.6% 5.3% 100.0% Brgy Count 8 2 2 12 Barangay Tambo % within 66.7% 16.7% 16.7% 100.0% Brgy Count 48 16 5 69 Total % overall 70% 23% 7% 100% *Occupying structures without permission from the owner.

F. Structure Ownership

The survey result shows that majority (70%) of respondents own the structures in which they currently residing in. However, there are more Barangay 191 respondents (70.2%) owning their structures as compared to those from Barangay Tambo (66.7%). It is interesting to note that 16 HH or 23% of respondents are renters of their current abode. There are relatively more renters interviewed in Barangay 191 (14 or 24.6%) as compared to those from Barangay Tambo (2 or 16.7%). While the tenants benefit from the relatively lower residential rental cost in prime location, this also indicates that there are individuals or groups that are taking advantage of government’s tolerance to informal settlers, to profit from renting out residential structures without paying lease to the landowner.

Likewise, the survey also discovered that 5 respondents are occupying their structures without permission from its owner/s. These individuals correspond to those that earn below the poverty threshold and may not be in the position of afford the payment of rent and other basic amenities. Additional assistance should be provided to these vulnerable groups under the Project such as hiring preference in the contractor’s workforce or office administrative support

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staff where their current skills would qualify. Table 7.2.5-21 contains details of the respondent’s structure ownership.

H. Availability of Social Services

Lighting

Majority (94%) of respondents reported that electricity is their primary lighting source. All of Barangay Tambo respondents claim be using electric powered lamps, as compared to 93% of households interviewed from Barangay 191. It is worth noting that 1 HH from Barangay 191 is using kerosene lamp and there are 3 households that do not use any lighting at all. In most probability, the 3 households that are free loaders or occupants of structures without the owner’s permission are also the 3 that are not using any lighting in view of their poverty. The above statistics further support the recommendations of providing support to the above 3 affected vulnerable groups. Table 7.2.5-22 contains the details on the lighting sources of PAPs.

Potable Water Supply

TABLE 7.2.5-22 LIGHTING SOURCE Lighting Source Barangay/ Unit Kerosene Total City Electricity None Lamp Barangay Count 5313 57 191 % within Brgy 93.0% 1.8% 5.3% 100.0% Barangay Count 1200 12 Tambo % within Brgy 100.0% 0.0% 0.0% 100.0% Count 6513 69 Total % Overall 94% 1% 4% 100%

More than half (52.2%) of respondents depend on the utility concessionaire Manila Water for their potable water supply. Survey results show that there are relatively more Barangay Tambo interviewees (91.7%) that use piped-in water as compared to those from Barangay 191 that cover less than half of HH (43.9%). Connections have been established from the affected houses to the distribution lines of the Manila Water.

The next popular water source are those provided by individual called “igib” who deliver water in large 4-5 gallon plastic containers which constitute 40.6% of total respondents. About 47.4% of respondents from Barangay 191 avail of the “igib” services while only a single household (8.3%) in Barangay Tambo patronize these suppliers. Likewise, only 1 HH (1.8%) in Barangay 191 takes his water supply from a deep well.

It is worth noting that there are 4 respondents from Barangay 191 that does not avail of the popular water supply source. It was not clear from the interview where the said 4 respondents secure their water, as this is an essential need for life, and it is unthinkable that they will be using the polluted water from the adjacent Paranaque River for their drinking and washing needs. At least 3 of these 4 respondents are those earlier mentioned economically disadvantaged households that need support. Table 7.2.5-23 contains details of the respondent’s potable water supply sources.

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TABLE 7.2.5-23 POTABLE WATER SUPPLY SOURCE Potable Water Supply Source Barangay/City Unit Deep Piped Local Total None well Water* Suppliers** Count 1 25 27 4 57 Barangay 191 % within Brgy 1.8% 43.9% 47.4% 7.0% 100.0% Count 0 11 1 0 12 Barangay Tambo % within Brgy 0.0% 91.7% 8.3% 0.0% 100.0% Count 1 36 28 4 69 Total % Overall 1.4% 52.2% 40.6% 5.8% 100% *Sourced from Commercial Water Supply Concessionaire **Sourced from Individuals (“igib”) supply potable water in large plastic containers

Toilets

All of the respondents have access to toilets. Most of respondents (92.7%) have water-closet type of toilets in their respective residential structures. The remaining 7.3% use a communal toilet located within the area. The most popular toilet type used is the semi-flushed type that had been installed in the respective residential structures of 91.3% (63 HH) of respondents. Both Barangay 191 (91.2%) and Barangay Tambo (91.7%) have relatively similar proportion of the semi-flushed toilet type.

Likewise, for the flushed type, only 1 person (8.3%) from Barangay Tambo has such toilet facility installed in their house. No such respondent from Barangay 191 had report to have installed such toilet facility. Also, only 5 HH (8.8%) of respondents do not have toilets in their respective houses, and all of these are from Barangay 191. As earlier mentioned, a communal toilet facility had been construction in Barangay 191 for those informal setters that are unable to built their own toilet. Table 7.2.5-24 contains details of the toilet type that are in use by the respondents.

TABLE 7.2.5-24 TOILET FACILITIES Barangay/ Toilet Facilities* Unit Total City Semi-Flush Flush None Count 5205 57 Barangay 191 % within Brgy 91.2% 0.0% 8.8% 100.0% Barangay Count 1110 12 Tambo % within Brgy 91.7% 8.3% 0.0% 100.0% Count 6315 69 Total % Overall 91.3% 1.4% 7.2% 100% *Both semi-flushed and flushed are water closet types of toilet

7.2.5.2.4.3 Public Health

Pasay City: The number primary cause of morbidity stems from respiratory ailments. This may be attributed to the problem of air pollution in the area owing to the volume of vehicles that travel through its thoroughfares daily as shown in the traffic study. This is followed by skin-related illnesses.

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This may reflect the poor health and sanitary conditions in the area as well as serve as major carriers of disease causing organisms that affect the skin and other external organs. As shown in Table7.2.5-25, the other leading causes of morbidity which may be attributed to the abject state of the physical environment in Pasay City are gastro-intestinal and other infectious diseases.

TABLE 7.2.5-25 LEADING CAUSES OF MORBIDITY IN PASAY CITY (1995) Morbidity Rate* Morbidity Rate* Cause Cause /10,000 persons /10,000 persons 1. Respiratory 509.08 6. Genito Urinary 33.48 2. Dermatology 98.92 7. Cardio Vascular 16.96 3. Gastro Intestinal 95.00 8. Other Infectious 16.91 Disease 4. EENT 65.05 9. Muscoskeletal 15.94 5. Nutritional Deficiency 45.65 10. Minor Wound 5.28 Source: Office of the City Health Officer, Pasay City Hall

7.2.5.2.4.4 Historical/Heritage Sites/Religious Shrines

Within direct and indirectly affected area of the project also vicinity area there is no historical and heritage site existed.

Previously it was a church located along the Andrews Avenue, however the church has been relocated to east wards and any more affected now.

Along MIA road there is Tambo elementary / high school building, the school may be affected indirectly, there are aeronautical flying school and training workshops in the MIA property, these facilities are faced along the local road, and expected partially their building.

7.2.6 Environmental Quality

7.2.6.1 Air Pollution, Noise Level and Water Quality

1) Air: Baseline air quality measurements along the alignment of the proposed viaduct expressway and vicinity were conducted on April 18, 2011. The air quality parameters measured were Sulfur Dioxide (SO2), Nitrogen Dioxide (NO2) and Total Suspended Particulates (TSP). Noise levels were also observed at the air quality stations. One-hr (24 hr for AI) sampling was made at five stations. The stations were located at

- Station A1 - NAIA Corner Electrical Road -Station A2 - Proposed Off-Ramp at Coastal Road -Station A3 - Andrew Avenue – Brgy 185 -Station A4 - Villamor Airbase Gate - Station A5 - Proposed On-Ramp at Coastal Road (Brgy Tambo)

The locations of these air quality sampling stations are shown in Figure 7.2.6-1. The results of the air quality measurements are presented in Table 7.2.6-1 and Table 7.2.6-2.

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FIGURE 7.2.6-1 MONITORING LOCATION OF AIR AND NOISE LEVEL (SURVEYED IN 2011) Source: The study team

TABLE 7.2.6-1 MONITORING RESULTS OF AIR QUALITY IN DRY SEASON Concentration in ug/Ncm Station No. Time/Date TSP SO2 NO2 A1 1030-1130H/ 287 34 26 NAIA Corner Electrical Road 18Apr2011 1520H 18Apr11- 1520H 19Apr11 503 49 37 (24Hours) A2 1010-1110H/ 278 29 21 Proposed Off-Ramp at Coastal Road 19Apr2011 A3 1405-1505H/ 311 45 30 Andrew Avenue – Brgy 185 19Apr2011 A4 1050-1150H/ 214 28 20 Villamor Airbase Gate 19Apr2011 A5 Proposed On-Ramp at Coastal Road 1500-1600H/ 243 30 23 (Brgy Tambo) 20Apr2011 DENR Standard 1-hour sampling period 300 340 260 24-hours sampling 230 180 150 period IFC EHS Guideline 150(PM 125 10) 200 (Ave.1 hr) Source: The study team

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TABLE 7.2.6-2 MONITORING RESULTS OF AIR QUALITY IN WET SEASON Concentration in ug/Ncm Station No. Time/Date TSP SO2 NO2 A1 0952-1052H/ 311 34 26 NAIA Corner Electrical Road 23 July 2011 1110H 23 July 2011 529 1110H 24 July 2011 49 37 (24Hours) A2 1305-1405H 187 29 21 Proposed Off-Ramp at Coastal Road 23 July 2011 A3 0824-0924H 292 45 30 Andrew Avenue – Brgy 185 23 July 2011 A4 1637-1737H 171 28 20 Villamor Airbase Gate 23 July 2011 A5 1450-1550H 294 Proposed On-Ramp at Coastal Road 23 July 2011 30 23 (Brgy Tambo) DENR Standard 1-hour sampling period 300 340 260 24-hours sampling period 230 180 150 IFC EHS Guideline 150(PM10) 125 200 (Ave.1 hr)

2) Noise: A sound level meter was used in measuring baseline noise levels. The noiselevels Table 7.2.6-3 and Table 7.2.6-4 measured at the air sampling stations range from64 to 94dB(A). These values exceed the DENR noise standards for commercial and residential areas. Except for one of the stations which is a commercial area, the rest of the sampling stations are institutional areas. Table 7.2.6-5 shows the comparison noise level standard.

TABLE 7.2.6-3 MONITORING RESULTS OF NOISE LEVEL IN DRY SEASON Date and of Average DENRStand IFC Station Area of Location Time of Noise Level ard EHSGuideli No. Landuse Measurement In dB(A) dB(A) ne dB(A) A1 NAIA Corner 1010-1020H/ 78.0 Electrical Road 18Apr2011 (66-89) Commercial 65 70

A2 Proposed Off-Ramp 1115-1125H/ 81 at Coastal Road 19Apr2011 (66-94) Commercial 65 70 A3 Andrew Avenue – 1355-1400H/ 78 Brgy 185 19Apr2011 (68-92) Commercial, 65 70 A4 Villamor Airbase 1030-1040H/ 72 Commercial, Gate 19Apr2011 (64-89) Public facility 65 70 A5 Proposed On-Ramp at Coastal Road 1445-1455H/ 74 Commercial 65 70 (Brgy Tambo) 20Apr2011 (67-88) Source: JICA Study team

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TABLE 7.2.6-4 MONITORING RESULTS OF NOISE LEVEL IN WET SEASON Date and of Average DENRStan IFC Station Area of Location Time of Noise Level dard EHSGuidelin No. Landuse Measurement In dB(A) dB(A) e dB(A) A1 NAIA Corner 1055- 77.0 Electrical Road 1105H23 July (63-91) Commercial 65 70 2011 A2 Proposed Off-Ramp at 1250-1300H 79.0 Coastal Road 23 July 2011 (61-87) Commercial 65 70 A3 Andrew Avenue – 0810-0820H 77.0 Brgy 185 23 July 2011 (69-89) Commercial, 65 70 A4 Villamor Airbase Gate 1740-1750H 70.0 Commercial, 23 July 2011 (60-86) Public 65 70 facility A5 Proposed On-Ramp at 1555-1605H 76.0 Coastal Road 23 July 2011 (68-90) Commercial 65 70 (Brgy Tambo) Source: JICA Study team

TABLE 7.2.6-5 COMPARISON OF NOISE LEVEL STANDARD DENR Maximum Allowable Noise IFC EHS Noise Level standard dB(A) Level, dB(A) Daytime Morning/ Nighttime Daytime Morning/ Nighttime Early Early Evening Evening Schools, Hospitals 50 45 40 55 55 45 Residential 55 50 45 55 55 45 Commercial 65 60 55 70 70 70 Light Industrial 70 65 60 70 70 70 Heavy Industrial 75 70 65 70 70 70 Source: JICA Study team

3) Water Quality: Baseline water quality sampling was undertaken at the Paranaque River, at the Tambo Bridge to establish the existing physic-chemical properties of the said River. Water samples collected from the upstream and downstream portions of the River were carefully prepared, following the standard procedure of preparation and preservation, and later brought to the laboratory for analysis of Total Suspended Solids (TSS) and oil & grease. Field measurements of the pH and temperature were taken using a portable pH meter and a laboratory thermometer, respectively.

Results of the laboratory analyses for the two (2) basic parameters monitored showed that the TSS levels of the water samples from both stations (Sta. 1 38.0 mg/L and Sta.2 22.0 mg/L) are well within the permissible limit set by the DENR for Class C Water. The oil and grease content of the sample from downstream portion of Paranaque River is likewise below the standard limit. On the contrary, the oil & grease level detected in the sample from the downstream portion (6.4 mg/L) of the River as presented in Table 7.2.6-6 exceeded the 5.0 mg/L limit of the DENR. This was probably due to the spillage of oil from the dredging machine docked near the sampling area. In fact, presence of oil and grease materials was observed on the water surface at the time of sampling.

Water samples from the upstream and downstream portions of the River are relatively basic as indicated by the high pH level recorded. The pH level observed at Sta. is 8.5, while the pH at Sta. 2 is 8.1.

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TABLE 7.2.6-6 WATER QUALITY OF PARAÑAQUE RIVER Parameters Date & Time Sampling Station of Sampling Temp (°C) pH TSS Oil & Grease Sta.1 26 April 2011 27 8.5 38.0 mg/L 6.4 mg/L Downstream Portion 0815H Sta.2 26 April 2011 28 8.1 22.0 mg/L 2.5 mg/L Upstream Portion 0935H DENR Standards for Max. 3°C 6.5 - 8.5 70 mg/L 5.0 mg/L Class C Water increase IFC EHS Guideline 10mg/L Source: JICA Study Team

TABLE 7.2.6-7 WATER QUALITY OF PARAÑAQUE RIVER DENR Parameter 2005 2006 2007 IFC EHS Guideline Standard DO (mg/l) 1.3 1.6 1.7 5.0 - BOD5 (mg/l) 29.5 41.0 39.9 <10.0 30 Source: DENR

7.2.6.2 Other Environmental Concerns (i.e. Security Issue According to the Military)

1) The proposed expressway passes next the Villamor Airbase property; the viaduct of expressway has approximately elevated 12m from the ground level.

The height of the expressway carriage way level is easy to observe inside of the Airbase, therefore as for security reason protection fence along side of the securing distance has to be taken measured with anti-observation fence (height of 3m with opaque fence) should be installed.

2) Also 3 aircraft taxi bays are facilitated on the east corner of the terminal 3, this area also are consider to secure the anti-observation requirement. The anti-observation fence has to be installed.

7.3 ENVIRONMENTAL IMPACTS

7.3.1 Study Methodology (Procedure)

Study of the detail environmental impact assessment is to be conducted by the project proponent through discussions with related agencies on the basis of guideline of DENR/ BEM and other related agencies as such DPWH, NHA, JICA etc. The environmental impact assessment study will be required following items.

1) Review of the EIS Previously Prepared

JICA guideline including WB safeguard policy as new issued format in 2010 and EIS guideline of DENR/BEM are reviewed and they are confirmed no to have a big differentiation between tow guidelines. When some differentiation are found the study of environmental impact assessment of the project will be conducted with complemented items.

The ECC already received will be confirmed that is validity of the ECC up to date, or if in case of the expired validity and re-acquisition of ECC is required, all the process necessitated to the ECC acquisition through EIS preparation based on PEISS will be made. Necessary study items presumed for the project are shown in Table 7.3.1-1.

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TABLE 7.3.1-1 COMPLEMENTAL STUDY ITEMS Environmental Study Items Study Method Item Involuntary 1.Verification of scale on land 1. related regal framework, related example etc. Resettlement acquisition and resettlement 2. Satellite image photo 2.Outline resettlement plan making 3. Identification of kinds and numbers of houses/ buildings in the objective project area 4. Verification of landuse by field survey and interviews 5. Summery RAP making Local economy 1.Verification of household, family 1. Hearing on social survey for objective households such as and livelihood etc. employment and livelihood, etc. The poor 1.Verification of household, family 1. Hearing on social survey for objective households and livelihood etc. Conflict on 1. Verification on issues 1. Hearings in the consultation meeting consultation meetings Hygiene 1.Verification of hygienic issues, 1. Collection of data and information of hygienic, &Sanitation work management and safety measure construction management Hazards (Risk), 1. Verification of infectious disease 1. Hearing to concerned organization and collection Infectious record at surrounding area and LGUs. of data and information diseases such as HIV/AIDS Flora 1.Verification of affected trees 1. Field survey and verification landscape 1. Verification of landscape objectives 1. Field survey and analysis by 3D image Global warming 1.Verification on volume of 1. CO2 emission gas calculation base on traffic construction equipment and vehicle volume forecast. and their volume activities 2. Verification of traffic demand forecast Air pollution 1. Verification of related 1. Survey of existing data/ information environmental standard 2. Field monitoring of noise level. 2. Confirmation of current status on 3. Future demand on target years corresponded to air traffic volume forecast 3. Confirm traffic volume on the 4. Field survey and hearing target years based on traffic demand 5. Verification of construction activities, construction forecast works and quantities, construction method and 4.Identify houses and facilities of period, operation equipment, operating hours of such school and hospital located at vehicle and running distances of vehicles. vicinity of the project area 5. Impact during the construction Water pollution 1. Water quality of Paranaque river, 1.Survey on existing data and information current status of daily water usage on 2. Field survey and hearing at the project site water system 3. Survey and monitor on major parameter of water Soil 1. Construction safety management, 1. Verification of construction activities, construction contamination Anti-oil leaking measure works and quantities, construction method and period, operation equipment, operating hours of vehicle and running distances of vehicles. Waste 1. Construction safety management 1. Hearing survey for related organizations 2. Disposal method of construction 2. Survey similar to the project wastes etc. Noise & vibration 1. Verification of related 1. Survey of existing data/ information environmental standard 2. Field monitoring of noise level. 2. Confirmation of current status on 3. Future demand on target years corresponded to noise and vibration traffic volume forecast 3. Confirm traffic volume on the 4. Field survey and hearing target years based on traffic demand 5. Verification of construction activities, construction forecast works and quantities, construction method and 4.Identify houses and facilities of period, operation equipment, operating hours of such school and hospital located at vehicle and running distances of vehicles.

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vicinity of the project area 5. Impact during the construction Accident 1. vehicle operation management and 1. Verification of operation day, duration and traffic safety management around the operation route for the construction vehicles. project site 2. Traffic safety management during operation period. 2. Traffic safety management during operation period. Traffic congestion 1. vehicle operation management and 1. Verification of operation day, duration and traffic safety management around the operation route for the construction vehicles. project site 2. Verification on traffic demand forecast, traffic 2. Traffic safety management during safety facilities and items of safety management operation period. during operation period. Flooding 1. Excavation and removal of earth 1. Verification of excavation schedule and removal during the construction management during rainy season. Source: JICAStudy Team

2) Collection of Proper Baseline Information and Data

Baseline information and data collection and compilation are the fundamental requirement for prediction and minimizing those impacts to natural and social environment caused by the implementation of the project. Especially in social environment, data collection on land acquisition, involuntary affected peoples and their houses and buildings is the vital issue, and this is a responsibility for the project proponent.

The study has to have complementally collective data of ambient air (SO2, NO2 and TSP), Noise level (dBa) and water quality (DO, BOD and TSS). Those data are required to up dated due to previous data were taken more than 10 years at past time. The collected data will be also utilized for monitoring baseline at the operation and maintenance period after the construction. Data required for updating also considered.

3) Ensuring of Proper Social Considerations

The most important study items of social environmental consideration for the study are to ensure proper social considerations. It is fully care for Barangay community peoples including involuntary affected peoples. Through information discloser, supporting of stakeholder meetings, the project has to be formulated as most understandable to the concerned local peoples.

A careless discloser of the information may be resulted a land price escalation in the planed project area by speculative land purchase, illegal occupation of land of the proposed project area. So that land for the proposed road may face to some difficulties for acquisition. When information on the project will be disclosed, the proper consideration has to be taken on information without difficult and issues of confusion involved.

4) Prediction and Evaluation of Environmental Impacts

Based on collected and surveyed data, adverse impact on the natural and social environment will be predicted and evaluated during period of pre-construction, construction and operation /maintenance after construction works.

5) Consideration on Environmental Mitigation Measures and Monitoring Plan

Items on the predicted and evaluated environmental impacts, environmental mitigation measures will be considered and previously conducted environmental monitoring plan for utilized last acquisition of ECC will be up dated.

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6) Stakeholder Meeting

Stakeholder meetings will be conducted with peoples directly affected by the project, the project information, environmental impact assessment and resettlement concerns will be discussed and these results will be reflected to the preparation of complementary items to EIS and draft RAP. Date, venue and attendance of the meeting, contents of presentation, question, comments and opinion on the project arisen from the participants will be recorded in minutes of meeting. These evidenced documents will be attached with EIS and RAP.

7) Support to Preparation on EIA Report (EIS) and Draft EIS

The EIA and draft EIS reports will be fulfilled both JICA new guideline and current DENR/ BEM system. Regarding EIS complementary items to previous EIS will be submitted to DENR/BEM for approval.

8) Support to Preparation on the Resettlement Action Plan (RAP) and the Land Acquisition Plan (LAP)

Based on confirmation for necessity of RAP, the draft RAP preparation will be supported in regards to fulfill both JICA new guideline (WB SP4-12) and RAP guideline of DENR/BEM. LAP is not required independently by DENR/BEM, but it is involved RAP accordingly. DPWH is required LAP due to current practice in the projects of WB and ADB etc., and DPWH is followed LAP guideline within RAP of DENR/BEM.

LAP is followed to NRIMP (National Road Improvement Management Program), ESSO (Environment, Social Safeguard) is carried out the planning and IROW (Infrastructure Road Right of Way) is respondent an execution of LAP.

7.3.2 Scoping Results

7.3.2.1 Scoping Matrix

Table 7.3.2-1 shows environmental impacts on NAIAX project on each environmental concerns and project activities through the project stage of pre-construction, construction and operation, management after the construction.

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TABLE 7.3.2-1 MATRIX TABLE FOR ENVIRONMENTAL IMPACT EVALUATION ON NAIAX PROJECT Pre- Stage Construction Construction O&M after construction Activities

and

Field

Survey

Environment Concerns works Earth Recruitment Recruitment of Job Opportunity Mobilization of Equipment and Materials Site Clearance Setting up Base Camp Piling Construction Construction of Substructure Construction & of Viaduct Bridge Construction of Road Construction of Comple- mentary Structures Recruitment of Job Opportunity of Increase traffic volume Maintenance Road of Toll Operation Road of Toll and Gate Resettlement/Land 1 XXX Acquisition 2 Economic Activities ＋ X + Social and Public 3 X X X X X + facilities 4 Split of Communities 5 Cultural Property Water rights and Rights of 6 Common 7-103 Social Environment Environment Social 7 Public health Condition X 8 Waste X X X X X 9 Hazards (Risk) X X X X X X + 1 Topography and Geology 2 Soil Erosion X X X 3 Ground water 4 Hydrological situation XX X X X XX 5 Coastal Zone 6 Fauna and Flora X 7 Meteorology X Natural Environment Environment Natural 8 Landscape X X X 1 Air Pollution XX X X X X X ++ 2 Water Pollution X X 3 Soil Contamination 4 Noise and Vibration XX X X X X X X X X

Pollution 5 Land Subsidence 6 Offensive Odor Note: +: Positive Impact X: Negative Impact, but its magnitude will not be significant. XX, XXX: Negative Impact, of which special attention has to be paid.

7.3.2.2 Scoping Results

Table 7.3.2-2 shows scoping results covering social and natural environment, and pollution in both during construction, Operation and maintenance period on NAIAX project with rating evaluation.

TABLE 7.3.2-2 MATRIX OF SCOPING RESULTS Name of Proponent Department of Public Works and Highway (DPWH) Rating Reasons of Evaluation No Impacts Impacts Construction During After Social Environment: *Regarding the impacts on “Gender” and “Children’s Right”, might be related to all criteria Approximately 50 households (There are individual houses sited on the ground and not condominium type housing. Number of Affected persons is counted approximately 280) are allocated on the expressway alignment route. Within above figures 40 households in Barangy 191 are identified as informal settlers, they have been inhabited for long years with solid concrete and mortar structure units. Other 9 households are settled in Barangay Tambo and detail of their family and life style are under the social survey process. Other than above Involuntary 1 Resettlement A D said households there are small retail shops, nursery school, basket court, Land transportation office and security guard station of Barangay affected and counted approximately 17 cases. Total of 9 cases of Business establishments and ex­post office remained after burned within the property of MIA are partially affected and they have to move back to their original location. Basically the most of expressway ROW is located within the property belonged to MIA and Philippine Air Force etc., The area for construction of interchanges and ramp ways are to be required for new land acquisition. During the construction period, small retail shops and vendor shops which managed especially by women are affected due to reduced numbers of daily customer and as a results their sales accounts may temporally be reduced. Meanwhile employment opportunity for construction labor will be increased. Viaduct structure of the expressway provides shade along the route, but the right to sunlight is not a subject to the problem for local peoples in the tropical Local economy region. In operation period of the expressway the traffic such as volume of the project area will divert to the expressway and 2 employment B­/ B+ + smooth traffic along the existing road will encourage vicinity and livelihood, business activities therefore vicinity sales accounts will not be etc. decreased so much but increased. The users of the expressway will have their trip destination with time saving and no traffic jam, and expressway has this service function to them as to be bypass for the project area. Current status of the existing congested traffic environment of the area will be improved and it will be encouraged to stable and active business activities for the vicinity peoples. Transferring and transporting both peoples and goods are to be harmonized as to be contributed local economy. The existing road and facilities will be improved in conjunction with theexpressway project; therefore existing road condition will be physically much improved. The pass through traffic Land use and within the project area will be diverted to the expressway and 3 utilization of D D status of traffic jam along the existing road will be mitigated local resources as to be smooth flow. As a consequence an effective landuse along the road vicinity will be increasing its resource potential and as a result the landuse of the vicinity will be activated and enhanced. Infrastructure will be substantially developed due to the 4 Social D D institutions related road facility improvement by the expressway project.

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Name of Proponent Department of Public Works and Highway (DPWH) such as social The expressway is consisted viaduct structure and there is infrastructure almost no physical segregation given to the existing local and local community system. So that almost no local decision­ decision­ Making institution is expected. making institutions The expected users of toll road have mostly travel destination to airport and port area etc., for easy access with short time trip. The users will save travel time and avoiding traffic congestion instead of using the existing road. Some of total generated traffic volume will be diverted into the expressway while other traffic volume will be flown into the existing road. Existing social While traffic volume will be increased at vicinity of existing 5 infrastructures D D and services roads area in long time span by demand forecast analysis. However congested condition of the current status will be improved so as to be improved at vicinity roadside environment and business activities of the area will become stably enhanced. Since the expressway project has toll and viaduct system so that the pass through traffic will be diverted and impact to the existing road will be almost nominal. Some poor class peoples are inhabited; little direct impact is expected by the project. Many opportunities on participation of project related business activities and employment are generated during the construction period. After construction 6‐1 The poor B­ B+ vicinity business activities will be increased due to enhancement of the existing road condition and improved roadside environment, employment opportunities also increased consequently. Indigenous and 6‐2 ethnic people D D No such indigenous and ethnic people are living in the vicinity. Impact on some traffic congestion on the existing roads is expected due to the construction activities. Minor misdistribution of benefit and damage are expected under the Misdistribution proper management of traffic control made during the 7 of benefit and D D damage construction period. After construction the damage caused by the current congested traffic will be avoided due to diversion of traffic volume into the expressway. This damage will turn to be a benefit shared by all local peoples... No specific cultural and heritage assets exist in the project area and no direct impact is expected. However vicinity of the project area has some public facilities as museum (Philippine Cultural 8 heritage D D Air Force) etc. Accessibility to these facilities may be arising during the construction period if proper management is absence. Also indirect impact to cultural heritage is not existed vicinity of the project area. Land acquisition and resettlement are the vital requirement for the project implementation. Local conflict of 9 interests C D Some conflicts between local peoples may arise on land acquisition and compensation during conducting consultation meetings at Barangay level. Water Usage or Water system of daily use by local peoples is not existed. Water Rights Therefore no impact on right of water usage. 10 and Rights of D D Common Hygienic condition along the construction site will be degraded by activities of foundation works, excavation, unloading construction and borrowed materials, removal of disposals; however this sanitary condition may be degraded temporary. These impacts are expected as a small level when 11 Sanitation C D proper construction and safeguard management will be periodically conducted. Less impact will be expected during the construction period. After construction sanitary condition along the existing roadside area will be much improved due to development of viaduct and related improvement of existing roads. Construction workers from outside of the project area may be 12 Hazards (Risk), C C Infectious less number due to guideline on hiring more than 70 % of the

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Name of Proponent Department of Public Works and Highway (DPWH) diseases such as workers from the project area. HIV/AIDS Dusts and emission guess caused by construction activities will be affected as respiratory diseases to construction workers and local peoples, but it could be temporally and not so serious. Safety management of the construction activities, dust control, periodical watering for settling dust, proper maintenance of construction vehicles and equipment will be necessary. Education on sanitation, safeguard operation to the workers and information on construction schedule and activities to local peoples are necessary.

Natural Environment Topography No large scale alteration with cutting and embankment is and 13 Geographical D D required by the project. No impact on topography and features geographical features is expected. Almost no earthwork by cutting and embankment is applied; it may not be caused soil erosion impact. The construction work is viaduct and bridge type, abutments of the bridge is situated outside of the river and no pier installed in the water, side 14 Soil Erosion B D protection of abutment is constructed with concrete wall and no earth embankment, so that soil erosion will be not occurred. In some case of excavation activities for pier foundations, piles of excavated earth will cause temporally Characteristics of the construction work are a continuous viaduct structure and abutment and pier are only earthwork related excavation for their foundations. Excavation required 15 Groundwater D D for pier foundation is in 35m intervals and only independent spotted location, so that the construction activities may not give impact to ground water layer. Paranaque river is sited in the project site, abutment and pier of the bridge are not installed within the river, therefore the 16 Hydrological D D Situation project would not be expected any impact to hydrological situation of the river. The project area is not belonged to coastal and marine zone. The area is approximately 10km off the coast. The nearest Coastal Zone coastal zone to the project site has been developed as port, no (Mangroves, 17 Coral reefs, D D such mangrove ecosystem is habited. Paranaque river has Tidal flats, etc.) brackish water and tidal affection. The river has urban drainage function and is in full of rakish with quite degraded water quality. The project area has been urbanized and manmade environmental condition. Natural ecosystem in this area is always in artificial creation as street tree planting and landscaping at facility gardens. The project alignment will affect locations where these trees are planted, those trees are to be demolished or transplanted to other locations. Trees 18 Flora, Fauna C D and Biodiversity obliged to demolish are compensated to planting young trees under the guide line of the law. Fauna biodiversity is almost none but only pets as dog and cat are habited with local people family, rats, sparrows and some insects are survived. Protective species both flora and fauna are not existed in this urbanized project area. The viaduct structure of the project is formulated its pier of 35m span interval, the space under the viaduct is large enough to flow air and wind in any direction. The viaduct will provide 19 Meteorology D D shade to the ground and will make cooler condition good for activities of local peoples. An impact is not expected by the project.

Contrast between location of the viaduct and landmark feature will give quality of perceptional impact to the pedestrian. Probably the location of viaduct sited back side of 20 Landscape B B the feature will be sense of stable due to the design figure and motional direction of the feature. Construction activities will cause busy looks during the

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Name of Proponent Department of Public Works and Highway (DPWH) construction period especially at roundabout of landmark sited near the front of terminal 3. The project will contribute to solve increase of traffic volume and traffic congestion in future, increase of CO2 will affect global warming impact due to traffic volume increased. Global 21 Warming B C Currently Metro Manila has a policy to promote tree planting program to contribute global worming phenomena. Through the study of CO2 emission comparing the case of with project and without project is preparing. Pollution Air pollution will be expected due to generate vehicle emission and dust by construction activities during the construction period. After construction traffic congestion will be mitigated and less air pollution will be expected than before. However 22 Air Pollution B C the traffic volume will be increased consequently air pollution become to be worsening unless proper regulations on traffic control vehicle emission gas etc., by the Philippine Government concerned. Excavation activities of foundation work of piers may cause temporally impact when local drainage and sewerage system will be affected by construction activities. The existing drainage and sewerage system shall be checked together with LGUs engineer and safety management of construction work 23 Water Pollution B D shall be prepared for avoiding water pollution problems. After construction the storm drainage system will be improved and no water pollution will be expected. Currently water quality of Paranaque river is polluted and functioned as urban drainage channel. When lubricant oils and chemicals leaked into the ground from construction vehicles and equipment, soil contamination will be expected. Construction vehicles and equipment will be Soil 24 Contamination C D requested to have proper maintenance avoiding oil leakage to the ground especially construction camp yard... Contaminated soil must be removed to the proper disposal place directed by LGU. Wastes and refuse materials from construction site and workers camp yard are usually generated, these wastes must be checked either dangerous, toxic, spoiled or not, if these 25 Waste B D risky wastes are identified disposed to the specific place directed by LGU. Basically these wastes can be managed by the contractor during construction period. Operation activities of construction equipment and vehicles generate certain level of noise and vibration and affect nearby living local peoples. These impacts will be temporally during construction period. After construction numbers of 26 Noise and B B Vibration vehicles on the expressway and existing road will cause noise and vibration impacts to the vicinity peoples. Because of high elevation of the viaduct generated noise from the expressway will diffuse in the air, so that noise is not so much level. Operation activities for viaduct and bridge foundation work will not dredge ground water, also no ground subsidence Ground 27 Subsidence D D phenomena will be expected according to previous data of boreholes. Therefore impact of ground subsidence is not expected. Sanitary facility as toilet and garbage collection area in the worker camp site will cause temporally offensive odor to the 28 Offensive Odor D D nearby settled local peoples. Hygienic and sanitation management by the contractor will be controlled. Basically the project will not cause offensive odor so much. No impact will be expected due to excavated soils are removed to disposal yard not disposed near to the river. 29 Bottom D D sediment No impact on river hydraulics and no bottom sedimentation will be expected. According to increase numbers of construction vehicle during 30 Accidents B C the construction period, ration of traffic accident will increase. Management of transportation operation in the

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Name of Proponent Department of Public Works and Highway (DPWH) construction site is one of the important responses for the contractor. After the construction traffic flow will be improved because of improvement of road facilities, so that accident may be reduced. The expressway will be furnished with all standard safety measures. Very little impact is expected. Traffic control management will be required during construction period; an effective road width will be reduced narrow for construction activities, so that traffic congestion 31 Traffic B + congestion will be accelerated. After the construction, traffic volume will be diverted in to the expressway and traffic congestion will be much reduced on the existing road. Excavation activities will sometimes give blocked and choked discharge function to the existing drainage systems and this may lead to partial flooding when itis in rainy season. After 32 Flooding C D the construction the storm water on the expressway will be well drained into improved ground drainage system, so that flooding on the ground will be minimal. Source: The study team

7.3.3 Prediction and Assessment of Impacts

1) Social Environment

The proposed NAIAX project will create beneficial and adverse effects not only on theresidents of the project site but also on the non-residents, such as establishment owners and commuters.

i) Involuntary Resettlement

During Pre-construction period:Approximately 61households (There are individual houses sited on the ground and not condominium type housing. Number of Affected persons is counted approximately 280) are allocated on the expressway alignment route. Within above figures 53 households in Barangay 191 are identified as informal settlers, they have been inhabited for long years with solid concrete and mortar structure units. Other 8 households are settled in Barangay Tambo and detail of their family and life style are under the social survey process. Other than above said households there are small retail shops, nursery school, basket court, Land transportation office and security guard station of Barangay affected and counted approximately 17 cases. Total of 9 cases of Business establishments and ex-post office remained after burned within the property of MIA are partially affected and they have to move back to their original location. Basically the most of expressway ROW is located within the property belonged to MIA and Philippine Air Force etc., The area for construction of interchanges and ramp ways are to be required for additional land acquisition.

ii) Local Economy Such as Employment and Livelihood, etc.

During Pre-construction period:The property owners, whose land will be purchased by the proponent for right-of-way acquisition, will mainly benefit from such transactions. The income to be derived by the legitimate landowners is quite significant to increase in their income levels. While affected informal settlers and temporary business establishments will also receive some kind of compensation. However, the amount may not be big enough to their present income levels.

During construction period:Small retail shops and vendor shops which managed especially by women are affected due to reduced numbers of daily customer and as a

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results their sales accounts may temporally be reduced. Meanwhile employment opportunity for construction labor will be increased. Construction activities are often associated with the influx of temporary workers. For this period, there will be approximately 1,500 to 2,000 workers to be hired by the project.

As impact on women,in spite of the type of work to be required during the construction of the project, the proponent should adopt a policy of equal opportunity for both men and women in the hiring of workers. There should not be any preference or bias for males over females in the filling of positions, especially during the construction period. The proponent should also not place any restriction against females from applying for specific jobs available, even if they are construction-related.

O/M period after the construction:Viaduct structure of the expressway provides shade along the route, but the right to sunlight is not a subject to the problem for local peoples in the tropical region. In operation period of the expressway the traffic volume of the project area will divert to the expressway and smooth traffic along the existing road will encourage vicinity business activities therefore vicinity sales accounts will not be decreased so much but increased.

The users of the expressway will have their trip destination with time saving and no traffic jam, and expressway has this service function to them as to be bypass for the project area. Current status of the existing congested traffic environment of the area will be improved and it will be encouraged to stable and active business activities for the vicinity peoples. Transferring and transporting both peoples and goods are to be harmonized as to be contributed local economy.

Regarding business or economic opportunities, the local businessmen will have varying experiences depending on their location and type of business.

Increase in land values will benefit landowners and the city governments in terms of increase in real property tax, it will become more prohibitive for the average citizen to acquire or purchase such properties. However, the project area will have a commercial or mixed use land use classification rather than a residential area.

iii) Land Use and Utilization of Local Resources

During construction period:Construction activities will utilize existing trunk roads so that an actual their roads width will be narrower than before, traffic congestion will be often generated. Also this impact will affect connecting other local roads due to the construction activities. These traffic congestion will affect local services resources with some inconvenient conditions.

O/M period after the construction:The existing road and facilities will be improved in conjunction with the expressway project; therefore existing road condition will be physically much improved. The pass through traffic within the project area will be diverted to the expressway and status of traffic jam along the existing road will be mitigated as to be smooth flow. As a consequence an effective landuse along the road vicinity will be increasing its resource potential and as a result the landuse of the vicinity will be activated and enhanced.

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iv) Social Institutions Such as Social Infrastructure & Local Decision-Making Institutions

During construction period:Infrastructure will be substantially developed due to the related road facility improvement by the expressway project. The expressway is consisted viaduct structure and there is almost no physical segregation given to the existing local community system. So that almost no local decision making institution is expected. O/M period after the construction:There is no impact expected.

v) Existing Social Infrastructures and Services

During construction period:Construction activities will utilize existing trunk roads so that an actual their roads width will be narrower than before, traffic congestion will be often generated. Also this impact will affect connecting other local roads due to the construction activities. These traffic congestion will affect local services with some inconvenient conditions.

O/M period after the construction: The expected users of toll road have mostly travel destination to airport and port area etc., for easy access with short time trip. The users will save travel time and avoiding traffic congestion instead of using the existing road. Some of total generated traffic volume will be diverted into the expressway while other traffic volume will be flown into the existing road. While traffic volume will be increased at vicinity of existing roads area in long time span by demand forecast analysis. However congested condition of the current status will be improved so as to be improved at vicinity roadside environment and business activities of the area will become stably enhanced. Since the expressway project has toll and viaduct system so that the pass through traffic will be diverted and impact to the existing road will be almost nominal.

vi) The Poor

During construction period:Some poor class peoples are inhabited; little direct impact is expected by the project. Many opportunities on participation of project related business activities and employment are generated during the construction period.

O/M period after the construction:Vicinity business activities will be increased due to enhancement of the existing road condition and improved roadside environment, employment opportunities also increased consequently.

vii) Indigenous and Ethnic People

No such indigenous and ethnic people are living in the vicinity.

viii) Misdistribution of Benefit and Damage

During construction period:Impact on some traffic congestion on the existing roads is expected due to the construction activities. Minor misdistribution of benefit and damage are expected under the proper management of traffic control made during the construction period.

O/M period after the construction:Damage caused by the current congested traffic will be avoided due to diversion of traffic volume into the expressway. This damage will turn to be a benefit shared by all local peoples.

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ix) Cultural Heritage

During construction period:No specific cultural and heritage assets exist in the project area and no direct impact is expected. However vicinity of the project area has some public facilities as museum (Philippine Air Force) etc. Accessibility to these facilities may be arising during the construction period if proper management is absence. Also indirect impact to cultural heritage is not existed vicinity of the project area.

O/M period after the construction:There is no impact expected.

x) Local Conflict of Interests

During Pre-construction period:Land acquisition and resettlement are the vital requirement for the project implementation. Some conflicts between local peoples may arise on land acquisition and compensation during conducting consultation meetings at Barangay level.There are other proposed government projects and initiatives being planned along the same area of the proposed road alignment. These are the proposed road widening project of the DPWH will be done along the stretch of the Domestic Road.

xi) Water Usage or Water Rights and Rights of Common

During construction period:Water system of daily use by local peoples is not existed. Therefore no impact is expected on right of water usage.

O/M period after the construction:There is no impact expected.

xii) Sanitation

During construction period:Hygienic condition along the construction site will be degraded by activities of foundation works, excavation, unloading construction and borrowed materials, removal of disposals; however this sanitary condition may be degraded temporary. These impacts are expected as a small level when proper construction and safeguard management will be periodically conducted. Less impact will be expected during the construction period.

O/M period after the construction:After construction sanitary condition along the existing roadside area will be much improved due to development of viaduct and related improvement of existing roads.

xiii) Hazards (Risk), Infectious Diseases Such as HIV/AIDS

During construction period:Construction workers from outside of the project area may be less number due to guideline on hiring more than 70 % of the workers from the project area.

Dusts and emission guess caused by construction activities will be affected as respiratory diseases to construction workers and local peoples, but it could be temporally and not so serious. Safety management of the construction activities, dust control, periodical watering for settling dust, proper maintenance of construction vehicles and equipment will be necessary. Education on sanitation, safeguard operation to the workers and information on construction schedule and activities to local peoples are necessary.

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2) Natural Environment

i) Topography and Geographical Features

During construction period:No large scale alteration with cutting and embankment is required by the project. No impact on topography and geographical features is expected.

O/M period after the construction:There is no impact expected.

ii) Soil Erosion

During construction period:Almost no earthwork by cutting and embankment is applied; it may not be caused soil erosion impact. The construction work is viaduct and bridge type, abutments of the bridge is situated outside of the river and no pier installed in the water, side protection of abutment is constructed with concrete wall and no earth embankment, so that soil erosion will be not occurred. In some case of excavation activities for pier foundations, piles of excavated earth will cause temporally.

O/M period after the construction:There is no impact expected.

iii) Groundwater

During construction period:Characteristics of the construction work are a continuous viaduct structure and abutment and pier are only earthwork related excavation for their foundations. Excavation required for pier foundation is in 35m intervals and only independent spotted location, so that the construction activities may not give impact to ground water layer.

O/M period after the construction:There is no impact expected.

iv) Hydrological Situation

During construction period:Paranaque River is sited in the project site, abutment and pier of the bridge are not installed within the river, therefore the project would not be expected any impact to hydrological situation of the river.

O/M period after the construction:There is no impact expected.

v) Coastal Zone (Mangroves, Coral Reefs, Tidal Flats, etc.)

During construction period:The project area is not belonged to coastal and marine zone. The area is approximately 10km off the coast. The nearest coastal zone to the project site has been developed as port, no such mangrove ecosystem is habited. Paranaque River has brackish water and tidal affection. The river has urban drainage function and is in full of rakish with quite degraded water quality.

O/M period after the construction:There is no impact expected.

vi) Flora, Fauna and Biodiversity

During construction period:The project area has been urbanized and manmade environmental condition. Natural ecosystem in this area is always in artificial creation as street tree planting and landscaping at facility gardens. The project

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alignment will affect locations where these trees are planted, those trees are to be demolished or transplanted to other locations.

vii) Meteorology

During construction period:The viaduct structure of the project is formulated its pier of 35m span interval, the space under the viaduct is large enough to flow air and wind in any direction.

O/M period after the construction:The viaduct will provide shade to the ground and will make cooler condition good for activities of local peoples. An impact is not expected by the project.

viii) Landscape

During construction period:Contrast between location of the viaduct and landmark feature will give quality of perceptional impact to the pedestrian. Probably the location of viaduct sited back side of the feature will be sense of stable due to the design figure and motional direction of the feature.Construction activities will cause busy looks during the construction period especially at roundabout of landmark sited near the front of terminal 3.

O/M period after the construction:

ix) Global Warming

The project will contribute to solve increase of traffic volume and traffic congestion in future, while increase of CO2 will affect global warming impact due to traffic volume increased.

During construction period:According to the engineering study the construction of the project is consisted of tree works, expressway and ramps, reconstruction of at-grade road and toll plaza. Table 7.3.3-1 shows construction work items and materials required for the project. Predictive calculation of greenhouse gas (GHG) in relation to global warming effect was conducted on the basis of the construction activities during two year of implementation period.Table 7.3.3-1shows list of construction work and materials.

TABLE 7.3.3-1 LIST OF CONSTRUCTION WORKS AND MATERIALS Construction work items Construction work items Unit Quantity Unit Quantity and materials and materials A. EXPRESSWAY AND 3. VIADUCT RAMPS CONSTRUCTION EARTHWORKS Metal Decking (8 mm thk) sq. m 75,493 Structure Excavation, cu. m. Rotating Material each 52 Common Material 31,892.2 (Sosrobahu) Foundation Back fill cu. m. 4. DRAINAGE AND SLOPE PROTECTION 1,987.0 STRUCTURES Embankment from Borrow cu. m. Mechanically Stabilized Earth sq. m 6,926.61 727.5 (MSE) Wall Crushed Aggregate Base 958.5 5. MISCELLANEOUS Course STRUCTURES SURFACE COURSES Warning Signs each 15 Bituminous Tack Coat, ton 53.2 Regulatory Signs each 12 Emulsified Asphalt, SS-1 (0.45 L/m2)

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Construction work items Construction work items Unit Quantity Unit Quantity and materials and materials Bituminous Concrete ton 14,797.1 Informatory Signs (Medium) each 26 Surface Course, Hot Laid Portland Cement Concrete sq.m 6,390 Informatory Signs (Large) each 4 Pavement t=300 mm VIADUCT Reflectorized Thermoplastic sq. m. 13,174.0 CONSTRUCTION Pavement Markings Concrete Piles cast in l. m 8,730 Reflectorized Studs each 275 Drilled Holes (1500mm) 100x100x20 DF including Re-Bar Concrete Piles cast in l. m 1,770 Installation of Fiber Optic l. m 4,619.343 Drilled Holes (2200mm) including Re-Bar Concrete Piles cast in l. m 510 Noise Barrier l. m 800 Drilled Holes (2500mm) including Re-Bar Railing, ( Concrete Bridge l. m 16,213 Toll Road Lighting each 331 Railing) DOUBLE METAL BEAM l. m 4,645 Concrete Curb l. m 29,087.3 GUARDRAIL (w/Post) Reinforcing Steel, Grade kg 15,921,41 Reinstallation of Longitudinal l. m 690 60 (Bridge) 3.5 Expansion Joint (Type B Joint) Lean Concrete, 17Mpa cu. m 573.6 A. RECONSTRUCTION OF AT-GRADE ROAD Structural Concrete Class cu. m 13,953.3 1. EARTHWORKS AA 28Mpa for Pile Cap Structural Concrete Class cu. m 6,880.0 Removal of Structure and cu. m 1319.1 AA 28Mpa for Column Obstruction (Existing Ramp) Structural Concrete Class cu. m 10,142 Removal of Structure and sq. m 300 AA 28Mpa for Coping Obstruction (Masonry) Structural Concrete Class cu .m 1,804.2 Removal of Structure and sq. m 4,934.3 AA 28Mpa for Obstruction (Median) Diaphragm Structural Concrete Class cu. m 30,363.8 Removal of Structure and sq. m 50,835.6 AA 28Mpa for Deck Obstruction (Concrete Slab Pavement) Structural Concrete Class cu. m 6,023 Removal of Structure and lot 2 P 35Mpa for Coping Obstruction (Pedestrian Bridge) Structural Concrete Class cu.cm 3,376.4 Removal of Facilities (Tel, each 2 P 34Mpa for Hollow Electric, Billboard, Traffic slab sign etc.,) Structural Concrete Class cu. m 3,620.3 Sub-grade Preparation sq. m 50,416 AA 21Mpa for Parapet, Curb, Median Non Shrink Grout 41Mpa cu. m 57.23 2. SUBBASE AND BASE including wire mesh for COURSE Girder Riser PSC Member (AASHTO each 13 Bituminous Tack Coat, ton 33.8445 Girder Type IV) L = Emulsified Asphalt, SS-1 11.5m (0.45 L/m2) PSC Member (AASHTO each 120 Bituminous Concrete ton 8,649.2 Girder Type IV) L = Surface Course, Hot Laid 22.4m (t=5cm) PSC Member (AASHTO each 8 Aggregate Sub-base Course cu. m 4,754 Girder Type IV) L = 24.7m PSC Member (AASHTO each 20 3. SURFACE COURSE Girder Type IV) L = 28.2m

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Construction work items Construction work items Unit Quantity Unit Quantity and materials and materials PSC Member (AASHTO each 162 Portland Cement Concrete sq. m 23,518 Girder Type V) L = Pavement (250mm thk) 27.5m PSC Member (AASHTO each 59 4. DRAINAGE AND Girder Type V) L = 28.5 SLOPE PROTECTION m STRUCTURES PSC Member (AASHTO each 122 RCPC, 610 mm dia. l. m 10,649 Girder Type V) L = 29 m PSC Member (AASHTO each 80 Catch Basin Manhole Drop each 761 Girder Type V) L = Inlet 31.5m PSC Member (AASHTO each 12 5. MISCELLANEOUS Girder Type V) L = STRUCTURES 32.25m PSC Member (AASHTO each 113 Warning Signs each 6 Girder Type V) L = 32.5m PSC Member (AASHTO each 153 Regulatory Signs each 6 Girder Type V) L = 33.5m Pre-stressing Steel kg 530,199 Informatory Signs (Medium) each 16 Structural Steel kg 23,099,36 Informatory Signs (Large) each 2 0 Elastomeric Bearing Pad pcs 1,724 Reflectorized Thermoplastic sq. m 5,991 ( 606 x 306 x 60mm) Pavement Markings Steel Girder Shoe Type F each 236 Concrete Curb l. m 11,360 Rubber Filler (400 x 150 x each 4,148 Concrete Curb and Gutter l. m 7,305 50mm) Hard Rubber Filler & each 1,073 Sidewalk sq. m 9,876 Restrainer Bolts Dia 30mm Pile Dynamic Analysis each 74 B. TOLL PLAZA Pile Integrity Test each 734 Toll Island, Single each 20 Cast Iron Deck Drain each 2,312 Crash Attenuators, Single set 20 Collector Pipe ( 150mm dia l. m 10,249 Toll Booth (Type 1 ) each 16 PVC ) Collector Pipe ( 200mm dia l. m 8,458 Toll Booth ( Maxi Type 2 ) each 5 PVC ) Expansion Joint, Type A l. m 427 Toll Plaza sq. m 1,410.1 ( M80 Multiplex ) Expansion Joint, ( SR l. m 512.87 Toll Collection System set 1 2.5A Waboflex ) Toll Plaza Lighting System each 20 Source: The study team

On the basis of work items and materials required for the implementation of the project, required construction equipment with their capacities, activities of operation hours are shown in Table 7.3.3-2. Also rate of fuel consumption, per hour consumption, and unit of fuel for equipment are applied. The most largest portion of the predicted CO2 emission will originate from concrete plant (approx.. 45,450tons ) and followed asphalt plant (approx. 950tons), while CO2 emission from construction equipment and vehicles will be 1,950 tons during two years construction period. The predicted total CO2 emission will be predicted 48,368 tons during two years.

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TABLE 7.3.3-2 PREDICTED CO2 EMISSION CAUSED BY THE CONSTRUCTION ACTIVITIES Fuel Unit Total Total Fuel consump- Total Total fuel of CO2 Unit CO2 consump- Total Equipment Capacity Unit tion per operation consump- fuel emission of emission tion rate volume hour hour tion (l) (kgC (tonCO2) CO2 (tonCO (l/kWh) (l/hr) O2/l) -1 2)-2 run Dump truck 11t 0.05 12.00 13,289.3 7,973.66 2.62 20.89 - - - km Wheel Loader 4.2m3 hr 0.15 33.00 602.0 3,039.2 2.62 7.96 - - - Motor Grader 3m/200HP hr 0.11 9.20 25.4 25.2 2.62 0.07 - - - 14G Vibratory Roller 11t hr 0.15 16.00 407.8 9917 2.62 2.60 - - - Tired Roller 20t hr 0.10 7.10 407.8 289.5 2.62 0.76 - - - Hydraulic 1.0m3 hr 0.18 29.00 3,859.7 19,588.2 2.62 51.32 - - - Excavator Backhoe 0.6m3 hr 0.18 18.00 2,116.5 6,667.1 2.62 17.47 - - - Vibratory Plate 7 Hp hr 0.13 16.00 2,768.5 5,537.1 2.62 14.51 Compactor 160 ton, Track Crane hr 0.44 47.00 2,586.0 53,478.5 2.62 140.11 300Hp Crawler Crane 290t hr 0.09 23.00 20,643.8 42,257.8 2.62 110.72 - - - CWV Model Drill Rig for Pile hr 0.44 48.00 22,020.0 460,834.6 2.62 1,207.39 TRM35/3 1 Concrete transit run 10t 0.06 13.00 4,866.9 3,732.9 2.62 9.78 - - - Mixer km Concrete Pump 60yd3 hr 0.41 60.00 4,866.9 119,726.6 2.62 313.68 - - - 311.3 146,0 Concrete kgCO 45452.3 (m3) 2/m3 Track Mounted 21-25t, run 0.04 7.10 1,339.9 418.6 2.62 1.10 Crane 200Hp km Concrete Gasoline hr 0.54 0.27 116,806.4 17,030.4 2.36 40.19 Vibrator type run Semi Trailer 20 ton 0.08 18.00 287.0 581.9 2.62 1.00 km 4.7 m, 112 Asphalt Paver hr 0.15 4.10 433.8 270.3 2.62 0.71 - - - Hp Asphalt 5t hr 0.09 7.40 781.5 520.5 2.62 1.36 - - - Distributor 0.041 23,4 Asphalt kg/CO 964.56 (ton) 2/kg 8 ton run Lane Marker 0.19 4.20 4,471.8 3,568.5 2.62 9.35 - - - Track km Sub-total emission of CO2 1,951.0 46416.9 (ton) Total emission of 48367.8 CO2 (ton) Source: The study team Note: Fuel consumption rate (l/kWh), Fuel consumption per hour (l/hr) and Unit of fuel (kgCO2/l) are applied by data of lease rate of construction machines, Japan Construction Mechanization Association 2010

CO2 emission from traffic vehicles at the project vicinity area in target year Traffic demand forecast in the project area

Traffic demand forecast by vehicle types in the target year for the project area shows in Table 7.3.3-3

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TABLE 7.3.3-3 TRAFFIC VOLUME IN THE TARGET YEARS Unit: Vehicle/day Traffic volume by vehicle type Target year Passenger car Bus Truck Total 2015 98,800 17,000 17,600 133,300 2020 88,000 23,200 33,700 144,600 2030 128,500 27,100 43,300 198,600 Source: The study team

PCU convert factor and comparison of PCU*km, PCU*hour and traveling speed: DPWH has PCU convertible factor as Passenger car (1), Jeepney (1.5), Bus (2.2) and truck (2.5) for traffic demand forecast. Following table 7.xx shows comparison of PCU*km, PCU*hour and average travelling speed in the target year of 2015, 2020 and 2030 for the project area.Table 7.3.3-4shows comparison of with and without project case in the target years.

TABLE 7.3.3-4 COMPARISON OF WITH AND WITHOUT PROJECT IN TARGET YEARS Target Average CO2 emission PCU *km PCU*hour year speed (km/hr) ton/year With project 14,865,846 494,788 30.0 1,644.6 2015 Without project 14,727,736 495,330 29.7 1,636.0 With project 16,614,837 599,380 27.7 1,947.3 2020 Without project 16,495,917 604,628 27.3 1,951.0 With project 19,919,355 795,926 25.0 2,386.5 2030 Without project 19,602,836 790,071 24.8 2,359.0 Source: The study team

CO2 emission per vehicle type per traveling speed (g-CO2/km. vehicle): CO2 emission volume is depends on traveling vehicle speed, the predictive calculation was applied by the vehicles and circular table of evaluation for road policy of Ministry of land, transport and tourism, Japan. The CO2 emission per km per vehicle was applied 2 type vehicle in accordance with different level of traveling speed. Table 7.3.3-5 shows CO2 emission g- /km. vehicle. TABLE 7.3.3-5 CO2 EMISSION g-/km. vehicle Unit: g-CO2/km. vehicle km/hr 10 20 25 30 35 40 45 50 55 60 65 70 75 80 Small 342 229 204 186 172 161 152 146 141 138 137 137 139 142 vehicle Large 1,5 1,1 1,0 963 894 836 788 750 723 706 700 705 719 744 vehicle 15 33 42 Source: Circular table of evaluation for road policy. MTLT Japan

3) Pollution

i) Air Pollution

During construction period:Air pollution will be expected due to generate vehicle emission and dust by construction activities during the construction period. After construction traffic congestion will be mitigated and less air pollution will be expected than before.

O/M period after the construction: The traffic volume will be increased consequently air pollution become to be worsening unless proper regulations on traffic control vehicle emission gas etc., by the Philippine Government concerned.

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ii) Water Pollution

During construction period:Excavation activities of foundation work of piers may cause temporally impact when local drainage and sewerage system will be affected by construction activities. Currently water quality of Paranaque River is polluted and functioned as urban drainage channel.

O/M period after the construction: The storm drainage system will be improved and no water pollution will be expected.

iii) Soil Contamination

During construction period:When lubricant oils and chemicals leaked into the ground from construction vehicles and equipment, soil contamination will be expected. Construction vehicles and equipment will be requested to have proper maintenance avoiding oil leakage to the ground especially construction camp yard. Contaminated soil must be removed to the proper disposal place directed by LGU.

O/M period after the construction: Almost no impact is expected.

iv) Waste

During construction period:Wastes and refuse materials from construction site and workers camp yard are usually generated, these wastes must be checked either dangerous, toxic, spoiled or not, if these risky wastes are identified disposed to the specific place directed by LGU. Basically these wastes can be managed by the contractor during construction period.

O/M period after the construction: Almost no impact is expected.

v) Noise and Vibration

During construction period:Operation activities of construction equipment and vehicles generate certain level of noise and vibration and affect nearby living local peoples. These impacts will be temporally during construction period.

O/M period after the construction: Numbers of vehicles on the expressway and existing road will cause noise and vibration impacts to the vicinity peoples. Because of high elevation of the viaduct generated noise from the expressway will diffuse in the air, so that noise is not so much level.

vi) Ground Subsidence

During construction period:Operation activities for viaduct and bridge foundation work will not dredge ground water, also no ground subsidence phenomena will be expected according to previous data of boreholes. Therefore impact of ground subsidence is not expected.

O/M period after the construction: No impact is expected.

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vii) Offensive Odor

During construction period:Sanitary facility as toilet and garbage collection area in the worker camp site will cause temporally offensive odor to the nearby settled local peoples. Hygienic and sanitation management by the contractor will be controlled. Basically the project will not cause offensive odor so much.

O/M period after the construction: No impact is expected.

viii) Bottom Sediment

During construction period: No impact will be expected due to excavated soils are removed to disposal yard not disposed near to the river.

O/M period after the construction: No impact on river hydraulics and no bottom sedimentation will be expected.

ix) Accidents

During construction period: According to increase numbers of construction vehicle during the construction period, ration of traffic accident will increase. Management of transportation operation in the construction site is one of the important responses for the contractor.

O/M period after the construction: Traffic flow will be improved because of improvement of road facilities, so that accident may be reduced. The expressway will be furnished with all standard safety measures. Very little impact is expected.

x) Traffic Congestion

During construction period: The main impact that construction will have on existing traffic is the narrowing down of the main carriageway. In order to accommodate traffic flow, the existing lane widths will be made narrower so as to accommodate the same number of traffic lanes within the narrower available width, a higher volume/capacity ratio will be generated and will likely result in increased travel time so that traffic congestion will be accelerated.

O/M period after the construction: Traffic volume will be diverted in to the expressway and traffic congestion will be much reduced on the existing road.

xi) Flooding

During construction period: Excavation activities will sometimes give blocked and choked discharge function to the existing drainage systems and this may lead to partial flooding when it is in rainy season. The flood prone section of the proposed MIA elevated roadway is within Phase 2 along the Domestic Road fronting the Domestic Airport Terminals 1 and 2. During the construction phase, flash flooding along this road shall impact on the construction activities.

O/M period after the construction: The storm water on the expressway will be well drained into improved ground drainage system, so that flooding on the ground will be minimal.

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7.3.4 Assessment of Alternatives (In-Terms of Impacts)

1) Alternative Alignment

In order to ensure the vertical clearance for safety clearance on navigation course of the air field, two route alignments were studied.

Alternative-1 Expressway alignment along Paranaque River, and Alternative-2 Expressway alignment along Domestic Road.

Table 7.3.4-1 shows the comparison table of Alternative-1 and Alternative-2.

TABLE 7.3.4-1 COMPARISON OF TWO (2) ALTERNATIVES

Plan

Alternative 1 Alternative 2 Concept Expressway alignment along Paranaque River Highway express alignment along Domestic Road Road length (Main) 1702m 1780m Ramp length 2514m 1984m Construction Cost 1.2 Billion Php 1.0 Billion Php (including ROW) Geometric Design Fair Rmin =150m (main) Fair Rmin= 190 (main) Condition Traffic flow Poor Accessibility to Terminal 1 and 2 is low due Good Accessibility to terminal 1 and 2 is to long ramp better Social Impact Poor Relocation and compensation of squatters Fair Needs land acquisition along along Paranaque River(more than 100 Domestic Road but large building household) necessary. remains without demolition Access to facilities along road remains the same Environmental Impact Poor Due to construction of bridge piers (50nos) Good No negative impact to the Parañaque in the Paranaque river, risk of inundation river. increases(impediment ratio 11%). River widening and protection is necessary with road construction. Influence to upper and downstream needs to investigate. Constructability Poor Due to construction in the river, Good The expressway can be constructed by construction is more difficult than familiar construction method. Alternative-2 and it takes longer time Maintenance Poor Difficult due to piers in river Good Easy Evaluation Poor Good This scheme is recommended

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2) West End Alternatives

LRT Line-1 Cavite Extension Plan

LRT Line-1 Cavite Extension and Land Ownership LRT Line-1 Cavite Extension

 LRT Line-1 Cavite Extension will be constructed along Roxas Blvd and Manila-Cavite Coastal Expressway. LRT will not affect existing ROW of both roads.  LRT MIA Station will be constructed over the NAIA (MIA) road west extension.  MIA Station will occupy ;

Width = 20.8 m. Height = 15.712 m.

Land Ownership

 Subject land is owned by Manila Bay Development Corp. (MBDC).  Coastal Mall (or Uniwide) leased land from MBDC and lease contract is going to be expired in 2015.  Annex building of Coastal Mall is not used anymore.  Second and Third Floor of Coastal Mall is closed and only a part of ground floor is open for business.

Manila Bay Blvd

 MBDC and PAGCOR have a plan to construct Manila Bay Blvd.

3) Alternatives

There are two alternatives.

Alternative-1: The expressway is to end at Macapagal Blvd. Alternative-2: The expressway is to end at Roxas Blvd.

Alternative-1 has two sub-alternatives;

Alternative-1(A): Ramp A and B utilizes MBDC land which is currently vacant. Alternative-1(B): Ramp A and B utilizes Annex Building Area of Coastal Mall.

End point of interchange has tree alternatives on NAIAX phase 2, alternative-A1, alternative -A2 and alternative A2. Table 7.3.4-2 shows comparison of tree alternatives. The alternative-A2 become a recommended plan.

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TABLE 7.3.4-2 COMPARISON FOR NAIAX PHASE 2 END POINT OF INTERCHANGE Alternative-1A Alternative-1B Alternative-2 Description Expressway Ends at Macapagal Blvd. Expressway Ends at Macapagal Blvd. Expressway Ends at Roxas Blvd.

Section

7-122  Traffic from Reclamation Area to Makati direction or vis-á-vis  All expressway-related traffic uses Roxas Blvd., and access to Macapagal Blvd. Reclamation Area is made via Roxas Blvd. Traffic  Accessibility to the Reclamation Area is much better than  Same as Alternative-1 A.  Measures to divert to Macapagal Blvd. will be needed, such as Functionality Alternative-2. a flyover from Manila-Cavite Coastal Expressway to  Traffic on Roxas Blvd. will be reduced. Mapacagal Blvd. Traffic Control Center &  Space between A ramp and Macapagal Blvd. can be used as  Such space needs to be found in other area along the  Same as Alternative-1 A. Maintenance Maintenance Equipment Depot, etc. expressway. Equipment Depot

Php 2,112.3 Million (2.11 times, or + Php 1,113.2 M) Php 2,123,8 Million (2.13 times, or + Php 1,124.7 M Php 999.1 Million (1.00) Construction Cost 3rd Level Structure = 1.610 lane-km 3rd Level Structure = 1.620 lane-km 3rd Level Structure = 0.170 lane-km up to Parañaque nd rd nd rd nd rd River 2 -3 Level Structure = 2.169 lane-km 2 -3 Level Structure = 2.230 lane-km 2 -3 Level Structure = 1.710 lane-km Ground to 2nd Level Structure = 1.026 lane-km Ground to 2nd Level Structure = 1.008 lane-km Ground to 2nd Level Structure = 1.090 lane-km 4.805 lane-km 4.858 lane-km 2.970 lane-km

ROW 26,179 sq.m. x Php 35,000/sq.m. = Php 916 Million 25,140 sq.m. and demolition of 19,128 sq.m. 872 sq.m. x Php 35,000/sq.m. = Php 30.5 Million Acquisition 25,140 sq.m. x Php 35,000/sq.m. + 19,128 x Php 5,900/sq.m. Cost = Php 993 Million Note: ROW acquisition negotiation may take long time Note: ROW acquisition negotiation may take long time. ∆ Traffic functionality is better than Alternative-2, however, ∆ Same as Alternative-1 A. o Although traffic functionality will be sacrificed to some construction cost is quite high, thus financial viability will be extent, financial viability will be much improved than the Recommendation affected and higher Government Financial Support will be other alternatives. required. This alternative was recommended.

7.3.5 Mitigation Measures

1) Social Environment

i) Involuntary Resettlement

During the Pre-Construction Period: To avoid adverse effects on social life, economy and culture of PAHs, select the best alignment to minimize adverse effects on residential areas. Implement the appropriate plan for residential area acquisition in accordance with the law and local conditions.

During the Construction Period: The proponent should hold a briefing or orientation with the local barangay residents about the process and schedule of hiring, the qualification and application requirements, as well as other job related concerns. This way the residents would become well-informed about the job openings available beforehand for them to be able to prepare for this and not miss out on the chance.

ii) Local Economy Such as Employment and Livelihood, etc.

During the Pre-Construction Period: To avoid adverse effects on local economy and livelihood, Select the best alignment to minimize encroachment into institutional and commercial lands

During the Construction and Period: To avoid conflict between workers and local residents, a) Employ local people as much as possible as the construction workers; prioritize opportunities for the Project affected households (PAHs). b) Properly manage workers and organize training for workers, particularly workers from other LGUs on relations with local residents, c) Quarterly meetings between constructor and Barangay officers on the matters regarding the relations between workers and local residents.

Regarding increase in migrant workers to compete with local employment, local residents will be given priority in terms of employment in the project. The use of migrant workers will only be limited as much as possible to highly specialized jobs or fields of expertise. An effort should be made by the contractor to orient workers about the proper working relationship and conduct teambuilding exercises to avoid confrontations/quarrels between migrants and local workers.

During O/M period after construction: The benefits from time savings come from the increased economic productivity made available by reduced travel time brought about by the project. Vehicle operating cost savings will come from the increased vehicular operating efficiency created by higher travel speeds.

The only slightly negative impact in relation to traffic flows to the existing network relate to the possibility of queuing at toll plazas, and at on-ramps, which could affect other traffic. The location of the main toll collection plaza is at the midsection of the expressway project, near the location of Terminal 3. This is the elevated portion of the expressway, hence the only traffic the toll collection will affect is traffic on the expressway project itself. However, with the use of modern toll collection systems (electronic toll collection), queue times will be shortened and service level will improve.

The job requirement is to be provided the project stakeholder firsthand information about the employment opportunities of the project before outsiders can know about them. The list should be posted in the different barangay halls/centers and included as part of the

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information, education and communication (IEC) materials to be made available to the local residents. Once the recruitment office of the project has reviewed all submitted applications from the area and determined the qualified applicants, only then should they invite or open their recruitment to outsiders.

iii) The Poor

During the Pre-Construction Period: The informal settled families to be provided compensation for their dislocation should be given assistance in terms of proper fund management or a business/livelihood seminar to prevent them from squandering the money they receive. They should also be guided on the appropriate livelihood systems that would be suitable or interesting for them.

iv) Local Conflict of Interests

During the Pre-Construction Period: To avoid adverse impacts relating to detailed design are flash flood (waterlogging), impediments to movements of people and risks, Conducting careful surveys and consultation with LGUs, about design works.

During the Construction and Period: For the business establishments that may be adversely affected by the project construction, the contractor will be providing noise and pollution barriers to minimize the dust and noise reaching these establishments. Detour alternative routes will be provided to minimize or lighten the traffic congestion in the area during construction. These measures will allow motorists to continue passing through the area with minimal inconvenience and enable the businesses in the area to continue operating with minimum disturbance.

v) Sanitation

During the Construction and Period: To avoid a generation of domestic solid wastes causing land, water, and air pollution and public health problems, Proper waste management such as;

(i) Do not permit disposal of waste into rivers or fields. (ii) Properly collect, and segregate domestic wastes at workers’ camps, and offices. (iii) Contract with LGUs service divisions for transport of the solid waste to treatment sites every two days. (iv) Use of pits with proper lining for disposal of domestic solid wastes, related solid

To avoid wastewater from workers’ camps, especially wastewater from toilets causing water, air, and land pollution and a potential for spreading of diarrhea epidemics, to provide good mobile toilets for each construction site. To prevent wastewater from workers’ camps, especially wastewater from toilets causing water, air, and land pollution are potential for spreading of diarrhea epidemics.

It is recommended installation of sanitary 2 or 3 chamber septic tank toilets for each worker’s camp. At workers’ camps located far (over 500m) from inhabited areas, bench latrines may be installed. Latrines should be located over 100m from living places and 50 m from river. Daily care of disinfection for sanitary facilities is required. Fill and disinfect properly before moving the camp to another site. Provide clean water and hand washing soap for washing hands at each toilet area and provide rubbish bins in toilet area for collection of used bathroom paper atconstruction sites, Workers’ camp sites .

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vi) Hazards (Risk), Infectious Diseases Such as HIV/AIDS

During the Construction and Period: To avoid Transmission of infectious diseases from local people to workers and vice versa, a) Improve awareness of infectious disease prevention, particularly HIV/AIDS and flu for workers, b) Provide a clean water supply at construction camps, c) Provide rubbish bins at construction camps and daily pickups (by LGU unit to LGU's treatment sites), d) Ensure good environmental sanitation conditions and health for workers at construction camps, e) Set up a medical station for construction camps for first aid and health care for workers, f) Supply safe food for workers, g) Properly fill holes created by excavation activities to prevent health risk and eliminate growth of disease vectors, h) Fill water holes and kill rats, bugs, flies and mosquitoes.

Security concerns of the military: As mitigation to this potential problem, the project design will require to install tree meter high aluminum / polymer barriers along the sections of the expressway that will be facing Villamor Airbase and along the ramps that will be crossing through the airspace of the military base. These barriers will serve as enclosures or protective barriers that will prevent motorists from seeing the inside of the base from the elevated road.

2) Natural Environment

i) Soil Erosion

During the Construction and Period: Soil erosion at construction sites, causing damage to roads, fields, river pollution, The contractor will Ensure proper construction method and management applied for excavation during the substructure foundation operation so that soil erosion could be minimized

ii) Flora, Fauna and Biodiversity

During the Pre-Construction Period: Trees to be cut within the project development site should be carefully selected before cutting to minimize unnecessary loss of the existing vegetation along the roadway. The remaining trees should be incorporated in the landscaping of the road network. Unless otherwise saving the trees to be cut would be to ball young trees and transplant them in other sites along the road network. Since it is impossible to avoid tree cutting with the expansion and development of the new road network, it would be prudent to plant new tree species along the thoroughfare as part of the landscaping of the area.

During the Construction Period: Regarding the cutting trees outside the project ROW, to avoid reduction of vegetation cover, affecting local biological resources, creating degrading landscape, a) cutting trees outside the project ROW is to be prohibited, b) Replanting of trees destroyed by constructors (if any) at suitable place close to the construction site. Area of trees to be replanted is equal to area of trees lost by viaduct /road/bridge construction.

Since it is impossible to avoid tree cutting with the development of the project, it would be prudent to plant new tree species along the thoroughfare as part of the landscaping of the area. Tree pruning during the construction phase should be done judiciously such that the pruning procedures will not directly affect the growth and development of the tree. Pruning should always consider the minimum such that unnecessary cutting of branches are prevented and shade areas are maintained for construction workers of the project. Furthermore, pruning should also consider the aesthetic value of the tree before cutting its branches.

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iii) Landscape

During the Construction Period: The construction contractors should ensure that the work area in the middle of the road will always be kept clean and orderly. No other equipment or structures should be found scattered or placed outside the work area. A creative mitigation measure that can be adopted by the proponent is to maximize the use of the median barriers by having them painted with graphics. So that the solid, metal and concrete structures that will be overwhelmed the scenery.

O/M period after the construction: The tree and vegetation species to be planted for landscaping should be those that will be suitable for the area, particularly those that will be able to survive in an urban environment-resistant to extreme heat and cold temperatures, dust and vehicle emissions. At the same time, the recommended species to be used for landscaping should be able to complement the existing urban scenery and greenery.

iv) Global Warming

Currently Metro Manila has a policy to promote tree planting program to contribute global worming phenomena.

During the Construction Period: Implementation of the project will be required about 2 years of schedule. Numbers of construction vehicles and equipment will be sheduled in operation activities. And it will be predicted approximately 48,400 tons of CO2 generated. (refer to Table 7.3.3-1 and Table 7.3.3-2) As mitigation measures the Government concerned may consider to encourage tree plantation with corporation by DENR where available open spaces in Metro Manila region.

O/M period after the construction: Based on traffic demand forecast and prediction of CO2 emission in the project area for target year of 2015, 2020 and 2030 will resulted approximately 1,640 tons in 2015, 1,950 tons in 2020 and 2,350 tons in 2030 in accordance with increase of traffic volume. As mitigation measures the Government concerned may consider to encourage tree plantation with corporation by DENR where available open spaces in Metro Manila region. Also on the part of the government pollution regulatory agencies, policies may be adopted on (a) preferred types of mass transport, (b) inspection and maintenance programs of vehicles, (c) specifications on fuel and (d) provision of pollution control devices in car engines.

3) Pollution

i) Air Pollution

During the Construction Period: To avoid dust pollution caused by earth works, On rainless days, watering roads and yards at construction sites and roads that pass inhabited areas and commercial areas at least twice per day. To avoid NO2, SO2, CO, TSP pollution caused by vehicles and construction machines, all vehicles and construction machines used for the project should have licenses issued by the Land Transportation Office or police certifying compliance with DENR standards on vehicle emissions.

The main concern is the increase in TSP concentrations due to increased silt loading of the road. Silt may be prevented from being deposited on the road surface by shortening the time of temporary storage of waste earth materials in excavation sites, covering loads of trucks hauling waste earth materials, washing the soiled wheels of trucks used in the project and by

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covering stockpiled excavated materials with plastic. The silt materials deposited on the road may be removed by vacuum or broom sweeping and by water flushing.

Gas emissions may be minimized by (a) good traffic management where traffic delay times are minimized, (b) educating drivers on the optimum speed and acceleration rates that minimize vehicular emissions, (c) information drive on cost effectiveness of car maintenance and (d) programs cooperating with government regulatory agencies on the enforcement of vehicular emission standards.

Other mitigating measures which may be related to the design of the project are (a) provision of roadside barriers in expressway to avoid direct horizontal emission towards windows of buildings adjacent to the elevated roadways and (b) road signs reminding drivers of speed limits and proper acceleration rates. Nitrogen oxides are emitted in larger amounts at higher speeds and rapid acceleration rates. Carbon monoxide emission is greater during idling and low speeds.

On the part of the government pollution regulatory agencies, policies may be adopted on (a) preferred types of mass transport, (b) inspection and maintenance programs of vehicles, (c) specifications on fuel and (d) provision of pollution control devices in car engines.

ii) Water Pollution

During the Construction Period: The existing drainage and sewerage system shall be checked together with LGUs engineer and safety management of construction work shall be prepared for avoiding water pollution problems. Currently water quality of Paranaque River is polluted and functioned as urban drainage channel. The contractors have to ensure proper method and management applied for excavation so that soil erosion could be minimized.

Also construction will require the use of volumes of sand and gravel as construction material. Some of these may be transported/hauled to and from the construction site and source area. In the course of transport and hauling, some of these materials may get spilled or thrown off and contribute to the erosion problem, especially if the dump trucks are not properly covered or secured.Unattended construction debris may also add to the potential sediment source and find their way to the nearby water bodies and drainage system.The resultant effect will be an increase in turbidity, suspended solids and oil/grease from equipment in the receiving water bodies.

iii) Soil Contamination

During the Construction Period: Unattended construction waste and oil/ grease may be added to the potential soil contamination source and find their way to the nearby water bodies and drainage system.The resultant effect will be an increase in turbidity, suspended solids and oil/grease from equipment in the receiving water bodies. Proper management of oil and lubricant use is required for construction machines and equipment.

iv) Waste

During the Construction Period: To avoid disposing wastes from outside and inside of construction and camp sites, soil and surface water pollution that affect people’s health and bad odors from temporary waste containers, a) build temporary pits with proper lining at each worker’s camp sites for rubbish disposal. Fill carefully after moving to other places, b) at workers’ camps and construction sites: Wastes are to be segregated into hazardous and non- hazardous wastes before reuse or transport to disposal sites, c) arrange rubbish bins for

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collection of domestic waste and hazardous waste around construction, and workers’ camp sites, d) make drainage system (ditches etc.) at worker camp sites, e) provide information on waste management in training programs for workers, including how to manage hazardous wastes, f) Make a contract with the environmental services division of LGUs to regularly collect and carry domestic waste, hazardous waste and construction waste from construction sites to local solid waste treatment centers.

The contractors will be required to implement appropriate and adequate solid waste management systems. Workers will be oriented to strictly observe proper sanitation practices in the construction site. Also contractors will be required to provide or arrange for basic medical services (i.e., regular medical check-up, monitoring, first aid, etc.) to ensure that the health and sanitation of workers are safeguarded.

The contractors will be required to undertake regular clean-up operations, as much as practicable, on a daily basis, whereby all generated solid wastes at the end of the day will be collected and properly disposed at a temporary disposal site within the construction area. All accumulated wastes at the site will have to be regularly collected and brought to the designated landfill site of Pasay, Paranaque. In addition, all construction workers shall be oriented on proper waste disposal to avoid littering and soil contamination. Used oil and grease should be placed in appropriate sealed containers prior to selling them to used oil buyers. Other scrap materials such as bottles, cans, paper cartons and boxes and plastics may be sold to junk shops.

v) Noise and Vibration

During the Construction Period: To avoid Noise and vibration pollution, a) Locate high noise and vibration generation sources far from inhabited area, b) Inform local residents of time and plan of construction activities, c) Proper organization of the construction plan, so that the high noise generation machines would not operate during 10 p.m. to 6 a.m. in inhabited areas, d) Ensure truck drivers do not make a great deal of noise during movement through populated areas. e) Install noise barriers at high noise sources that affect sensitive receptors (clinics, schools, etc.).

Noisy construction equipment should be provided with silencers or enclosures and noisy construction activities should be done only at daytime. Workers exposed to noise levels of more than 85 dB(A) should also be provided with and required to use ear muffs. Drilled piles should be preferred over driven piles. The provision of sound barriers or noise screen substantially reduces the perceived effects of noise on nearby residents.

Vibration of the superstructure can be minimized using a conservative value of span-depth ratio between 22 to 24. In addition, the concrete shall have a concrete strength at 28 days of 38Mpa. This design criterion on concrete strength would provide the pre-stressed girders better performance against camber, deflection and vibration.

During O/M period after construction: Install noise barriers at high noise sources that affect sensitive receptors (clinics, schools, etc.). Noise levels emitted by motor vehicles are dependent of the proper maintenance of engines and vehicle mufflers. The Leq values are equivalent to continuous noise levels and are not comparable to DENR standards which are based on median of peak noise levels measured at short intervals. However, these values can be compared to international standard, the IFC EHS guideline allows a maximum of Leq just outside the windows of 70 dBA (55dBA in residential ) during daytime and 70 dBA (45dBA in residential) during nighttime.

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If the predicted Leq values are compared to IFC EHS guideline, it is noted that there are already exceeded.. However, even at present, it is exceeded from DENR standards already occur.

vi) Accidents

During the Construction Period: Regarding transport for construction materials, to avoid damage local roads and increase traffic congestion on local roads; a) in cooperation with LGUs, MMDA of Traffic Police to properly organize transport of materials for the project, b) set up clear traffic signal boards at the roads going in and out of the road construction sites, c) repair roads damaged by the project after completing each construction section.

Contractors should also be obligated to barricade all possible working areas where accidents from construction activities may occur. Proper warning signs and instructions to the driving public and pedestrians should be conspicuously posted around the project site.

During the Construction Period: Regarding transport for construction materials, to avoid damage local roads and increase traffic congestion on local roads; a) in cooperation with LGUs, MMDA of Traffic Police to properly organize transport of materials for the project, b) set up clear traffic signal boards at the roads going in and out of the road construction sites, c) repair roads damaged by the project after completing each construction section.

Due to this expected traffic problem during the construction period, a traffic rerouting plan will be put in place to address this. The re-routing plan will require the opening and use of additional traffic lanes to compensate for the increase in V/C ratios which will result in the decrease of road capacity in the project area.

vii) Flooding

During the Construction Period: Regarding transport for construction materials, do not fill water systems at the construction site. In case of the need for filling of a local drainage system it is necessary to consult with LGUs and permission from LGUs is needed. During the construction period, flash flooding impacts along the domestic Road may be mitigated by scheduling major work on ground and foundation diggings during the summer or dry months of the year. To mitigate the impacts of construction waste and debris that may possibly cause flash flooding (by clogging of street canals and storm drains) along the domestic Road section of the elevated roadway during the rainy season, the construction contractors should be required to practice proper waste management and avoid disposing wastes unto the street.

To avoid damaging any existing underground utility, a comprehensive utilities inventory will be conducted by the proponent prior to actual construction to determine their location. Also the project proponent will clean all clogged drainage system, repair or rehabilitate old pipes and replace all damaged, undersized and low capacity pipes. This will significantly minimize any flashflooding hazards during the construction period.

During O/M period after the construction: the project will only have minimal impact on flooding along the underlying street sections. Since during the construction period the project will either be cleaning clogged drainage ways along the road alignment, repairing damaged/defective drain pipes or completely replacing undersized drainage pipes that are no longer adequate to contain the additional runoff water to be generated by the project. This drainage improvement activity will be a positive impact to the public and the communities along the expressway.

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7.3.6 Environmental Management Plan

An environmental management plan (EMP) has been prepared and will be updated during detailed design stage. The Proponent will ensure that the contractors prepare a site-specific EMP based on this EMP and the actual situation on-site. The Proponent will monitor the implementation of the EMP, and will report twice a year on EMP compliance.

The bidding documents for construction contracts will be based on standard DENR documents for international competitive bidding, and will include contract clauses requiring the contractor to implement the relevant clauses of the EMP. The construction specifications will incorporate the EMP requirements.

Potential environmental impacts identified throughout theproject implementation for all phases of pre-construction, construction and operation. Of which, there will besignificant and insignificantimpacts. However, all potential environmental impacts identified will have to be mitigated or eliminated by proper measures.

Pursuant to the environmental protection law, the proponent and its contractors will be responsible for implementing environmental protection measures as mentioned in the EMP while monitoring works will be conducted by other relevant agencies and/or organizations.

Details about potential impacts, mitigation measures, responsibility for implementing mitigation measures, responsibility for supervision, and cost estimates for implementation and environmental mitigation works are described below.

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TABLE 7.3.6-1 MATRIX OF PROPOSED NAIAX’S ENVIRONMENTAL MANAGEMENT PLAN Responsibility Potential Environmental Estimated Project activities Responding mitigation measures Location Negative Impacts Marginal Cost Implementation Supervision Pre-construction Period Detailed design Adverse impacts relating to detailed Conducting careful surveys and consultation with LGUs, about Throughout the project No marginal Consultant hired Project design are flash flood design works. alignment cost by the project proponent (waterlogging), impediments to proponent movements of people and risks. Removal of Loss of ecological, landscape Replanting trees to compensate for the vegetation area lost due to Throughout the project No marginal vegetation by land balance. site clearance. The main trees to be selected for replanting and the alignment cost clearance area of the compensating vegetation will be determined in detail at each site. Acquisition of Adverse effects on social life, Select the best alignment to minimize adverse effects on residential Throughout the project No marginal residential area economy and culture of PAHs. areas. alignment cost Local socio-economic issues. Implement the appropriate plan for residential area acquisition in accordance with the law and local conditions. Acquisition of Adverse effects on local economy Select the best alignment to minimize encroachment into Throughout the project No marginal institutional , and livelihood institutional and commercial lands alignment cost commercial lands 7-131 Construction Period Construction of Generation of domestic solid wastes Proper waste management. Workers’ camp sites No marginal workers’ camps causing land, water, and air (i) Do not permit disposal of waste into rivers or fields. cost pollution and public health (ii) Properly collect, and segregate domestic wastes at workers’ problems. camps, and offices. (iii) Contract with LGUs service divisions for transport of the solid waste to treatment sites every two days. (iv) Use of pits with proper lining for disposal of domestic solid wastes, related solid Wastewater from workers’ camps, Provide good mobile toilets for each construction site. Construction sites No marginal especially wastewater from toilets cost causing water, air, and land pollution and a potential for spreading of diarrhea epidemics. Wastewater from workers’ camps, especially wastewater from Workers’ camp sites No marginal toilets causing water, air, and land pollution and a potential for cost spreading of diarrhea epidemics. Install sanitary 2 or 3 chamber septic tank toilets for each worker’s Workers’ camp sites No marginal camp. cost At workers’ camps located far (over 500m) from inhabited areas, Workers’ camp sites No marginal bench latrines may be installed. Latrines should be located over cost 100m from living places and 50 m from river. Daily use of lime for disinfection. Fill and disinfect properly before moving the camp to another site. Provide clean water and hand washing soap for washing hands at Construction sites, No marginal

Responsibility Potential Environmental Estimated Project activities Responding mitigation measures Location Negative Impacts Marginal Cost Implementation Supervision each toilet area. Workers’ camp sites cost Provide rubbish bins in toilet area for collection of used bathroom Construction sites, No marginal paper. Workers’ camp sites cost Conflict between workers and local Employ local people as much as possible as the construction Project Barangay No marginal residents workers; prioritize opportunities for the Project affected households cost (PAHs). Properly manage workers and organize training for workers, Project Barangay No marginal particularly workers from other LGUs on relations with local cost residents Quarterly meetings between constructor and Barangay officers on Project Barangay No marginal the matters regarding the relations between workers and local cost residents Transmission of infectious diseases Improve awareness of infectious disease prevention, particularly Project Barangay No marginal from local people to workers and HIV/AIDS and flu for workers. cost vice versa Provide a clean water supply at construction camps. Workers’ camp sites No marginal cost Provide rubbish bins at construction camps and daily pickups (by Construction and No marginal 7-132 LGU unit to LGU's treatment sites). workers’ camp sites cost Ensure good environmental sanitation conditions and health for Construction and No marginal workers at construction camps. workers’ camp sites cost Set up a medical station for construction camps for first aid and Construction and No marginal health care for workers. workers’ camp sites cost Supply safe food for workers. Construction and No marginal workers’ camp sites cost Properly fill holes created by excavation activities to prevent health Construction and No marginal risk and eliminate growth of disease vectors. workers’ camp sites cost Fill water holes and kill rats, bugs, flies and mosquitoes. Workers’ camp sites No marginal cost Construction of Soil erosion at construction sites, Ensure proper method and management applied for excavation so Project area No marginal roads, and causing damage to roads, fields, that soil erosion could be minimized cost auxiliary facilities river pollution Earthworks/ Noise and vibration pollution Locate high noise and vibration generation sources far from Construction site No marginal Excavation inhabited area. cost Inform local residents of time and plan of construction activities. Construction site No marginal cost Proper organization of the construction plan, so that the high noise Construction site No marginal generation machines would not operate during 10 p.m. to 6 a.m. in cost inhabited areas. Install noise barriers at high noise sources that affect sensitive Construction site No marginal receptors (clinics, schools, etc.) cost Ensure truck drivers do not make a great deal of noise during Project communities No marginal movement through populated areas. cost

Responsibility Potential Environmental Estimated Project activities Responding mitigation measures Location Negative Impacts Marginal Cost Implementation Supervision Dust pollution caused by earth On rainless days, watering roads and yards at construction sites and Construction site and No marginal works. roads that pass inhabited areas and commercial areas at least twice transport roads cost per day. NO2, SO2, CO, TSP pollution All vehicles and construction machines used for the project should Construction site and No marginal caused by vehicles and construction have licenses issued by the Land Transportation Office or police transport roads cost machines. certifying compliance with DENR standards on vehicle emissions. Disposing wastes Soil and surface water pollution that Build temporary pits with proper lining at each worker’s camp sites Workers’ camp sites No marginal from outside and affect people’s health and bad odors for rubbish disposal. Fill carefully after moving to other places. cost inside of from temporary waste containers. At workers’ camps and construction sites: Wastes are to be Workers’ camps and No marginal construction and segregated into hazardous and non-hazardous wastes before reuse construction sites cost camp sites or transport to disposal sites. Arrange rubbish bins for collection of domestic waste and Workers’ camps and No marginal hazardous waste around construction, and workers’ camp sites. construction sites, cost Make drainage system (ditches etc.) at worker camp sites. Workers’ camp sites No marginal cost Provide information on waste management in training programs for Workers’ camps and No marginal workers, including how to manage hazardous wastes. construction sites cost 7-133 Make a contract with the environmental services division of LGUs Project area No marginal to regularly collect and carry domestic waste, hazardous waste and cost construction waste from construction sites to local solid waste treatment centers. Soil, water, and air pollution caused Organize a team for collection and segregation of construction Project area No marginal by construction wastes. wastes at each construction site. cost Properly collect and segregate construction wastes into non- Project area No marginal hazardous and hazardous wastes. cost Install a temporary hazardous waste storage site for solid wastes Project area No marginal (oily contaminated wastes, used batteries, used fuel dumps etc.) cost with roof, brick wall and concrete or cement floor, located over 50m from living/office and river. Daily transporting of segregated hazardous wastes from each place on the construction site to this hazardous waste storage site. Collect non-hazardous dredged materials to be used for road Project area No marginal construction. cost Disposal of construction wastes, including non-hazardous and Project area No marginal hazardous wastes into surrounding land, fields and rivers is to be cost prohibited. Cutting trees Reduction of vegetation cover, Cutting trees outside the project ROW is to be prohibited. Project area No marginal outside the project affecting local biological resources, cost ROW creating degrading landscape. Replanting of trees destroyed by constructors (if any) at suitable Project area No marginal place close to the construction site. Area of trees to be replanted is cost equal to area of trees lost by viaduct /road/bridge construction. Transport for Damage local roads and increase In cooperation with LGUs, MMDA of Traffic Police to properly Project communities No marginal

Responsibility Potential Environmental Estimated Project activities Responding mitigation measures Location Negative Impacts Marginal Cost Implementation Supervision construction traffic congestion on local roads organize transport of materials for the project. cost materials Set up clear traffic signal boards at the roads going in and out of the Project communities No marginal road construction sites. cost Repair roads damaged by the project after completing each Project communities construction section. Do not fill water systems at the construction site. In case of the Construction No marginal need for filling of a local drainage system it is necessary to consult communities cost with LGUs and permission from LGUs is needed. Construction of Construction worker camps. Mitigation measures similar to those indicated in the above section Bridge construction No marginal viaduct and bridge on road construction. site cost Increased noise and vibration. Mitigation measures similar to those indicated in the above section Bridge construction No marginal on road construction. site cost Domestic and construction waste Mitigation measures similar to those indicated in the above section Bridge construction No marginal generation. on road construction. site cost Air pollution caused by material Mitigation measures similar to those indicated in the above section Bridge construction No marginal transport. on road construction. site cost Soil erosion at viaduct and bridge Do not cut the existing vegetation cover in the surrounding area. Bridge construction No marginal 7-134 construction site. site cost Construct solid stone/concrete protection structures for the Bridge construction No marginal riverbanks at bridge construction site. site cost Increased noise pollution alongside Works sensitive to noise (clinic, school etc.) are required to be Bridge construction No marginal of the route constructed at a minimum distance of 200m from the road edge to site cost avoid impacts of noise. Prohibit drivers to make loud noises in the populated areas along Bridge construction No marginal the route. site cost Increased air pollution alongside of Ensure vehicles moving on the project route have licenses showing Bridge construction No marginal the project route "compliance with the DENR standard for Vehicle Exhaust site cost Emission" issued by the Land Transportation Office or Traffic Police. Operation and Maintenance Period Operation of the Disposal of rubbish by passengers Disposal of rubbish by passengers and drivers on roads is to be Roadside water No marginal expressway and drivers on roads prohibited. sources cost Build Stop Over Station (Toll gate area) is necessary for this Roadside water No marginal expressway) with installation of sanitary toilets and waste sources cost collectors. Carry out daily road cleaning. Roadside water No marginal sources cost Traffic accidents, causing health Ensure drivers are well educated on road safety requirements. Throughout the route No marginal and social impacts cost Ensure local people are well educated on the Road Transport Law. Throughout the route No marginal cost Install traffic signboards at appropriate places. Throughout the route No marginal

Responsibility Potential Environmental Estimated Project activities Responding mitigation measures Location Negative Impacts Marginal Cost Implementation Supervision cost Regularly repair road and bridges to ensure good condition for Throughout the route No marginal vehicle movement. cost Increased environmental problems Proper action plan of the GOV concerned mitigation measures, Throughout the route cause by increasing traffic volume traffic control regulation, and traffic information system, legal development for safety transportation in future scheme. Proper implement of Laws on Environmental Protection, Throughout the route No marginal Forestation and Development, eco-system, and relevant laws, cost decisions, and standards for measure on GHG emission increase. Properly prepare and implement a Socio-Economic Master Plan for Throughout the route the project LGUs, included Strategic Environmental Assessment (SEA). Consequences of Increased run-off and flood Proper design and construction of solid road viaduct and bridges. Throughout the route No marginal Micro-Climate cost Change Proper design and construction of drainage systems at the existing Throughout the route No marginal road. cost Proper implement of Laws on Environmental Protection, Throughout the route 7-135 Forestation and Development, eco-system, and relevant laws, decisions, and standards for measure on GHG emission increase.

7.3.7 Environmental Monitoring Plan

The Environmental Monitoring Plan shows the framework on which the NAIAXProject Proponent and the various stakeholders are willing to implement to continuously supervise the environmental protection measures during the Pre-construction/Construction, Operation/Maintenance , and Abandonment periods of the proposed NAIXProject.

This Environmental Monitoring Plan provides the NAIXProject Proponent a guideline on monitoring, verification, and making of the necessary corrective actions on the Project’s various environmental impacts. In addition, this will also provide the NAIXProject Proponent some baseline information in recording and examining the long-term effects of the Project’s different environmental aspects and corresponding impacts, on which future strategies (i.e. remediation, clean-up activities, etc.) can be formulated and applied. Table 7.3.7-1 shows the Environmental Monitoring Plan of the proposed Project.

TABLE 7.3.7-1 MATRIX OF THE NAIAX ‘S ENVIRONMENTAL MONITORING PLAN Parameter to Sampling Measurement Plan Estimated Concern be Responsibility Method Frequency Location Cost Monitored A. Pre-construction stage Affected houses, No. of houses Survey Once Affected location DPWH Part of establishments, and along the proposed DPWH Feasibility and trees Establishments highway Contractor Study to be directly alignment Costs affected No. of trees Terrestrial Survey/ Once Inventory Air Quality Dust Visual observation Once Immediate vicinity DPWH Minimal of Contractor construction sites NO2, SO2 Air sampler Once Identified DPWH PhP 10,000 TSP High volume Once sampling station Contractor per sampler sampling Noise Digital sound level Quick station meter sampling Water Quality TSS, Oil& Quick sampling Quick The bridge DPWH PhP 5,000 Grease, color sampling location of Contractor per identified/affected sampling water bodies activity B. Construction stage Affected houses, No. of houses Survey Twice (Initial Along the DPWH Part of establishments, and and proposed highway DPWH Feasibility and trees Establishments Confirmatory) alignment Contractor Study to be directly Costs affected No. of trees Terrestrial Survey/ Inventory Air Quality Dust Visual observation Daily Immediate vicinity DPWH Minimal of construction Contractor sites NO2, SO2 Air sampler Quarterly Identified DPWH PhP 10,000 sampling station Contractor per sampling station TSP High volume Quarterly sampler Noise Digital sound level Quick meter sampling Water Quality TSS, Oil& Quick sampling Quick The bridge DPWH PhP 5,000 Grease, sampling location of Contractor per color identified/affected sampling

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Parameter to Sampling Measurement Plan Estimated Concern be Responsibility Method Frequency Location Cost Monitored water bodies activity Solid Wastes Tons/day, no. Visual Daily Construction site, DPWH Marginal of items/day observation, office/base camp Contractor cost Hazardous Liters/No. of Visual inspection/ Monthly Construction site, Wastes drums (liquids) weighing office/base camp Kilograms (solids) Occupational No. of work- Log-book Daily Immediate vicinity Safety related injuries registration of the construction No. of safety sites, command man-hours center Public No. of valid Consultations with Variable Affected To be Perception/ complaints local officials and barangay/s determined Acceptability residents C. Operation and Maintenance stage Storm water Run- BOD, COD, Quick sampling Quarterly Drainage outlets NAIAX PhP 20,000 off pH, Operator per heavy metals, through sub- sampling TPH contractor activity Air Quality NO2, SO2, Air sampler Quarterly To be determined TSP High volume sampler Noise Digital sound level Quarterly To be determined meter Solid Wastes kgs./day Visual inspection/ Daily Field Operations NAIAX Part of weighing Center Operator Operations costs Hazardous Liters/No. of Visual inspection/ Quarterly Field Operations NAIAX Minimal, Wastes drums (liquids) weighing Center Operator Part of Kilograms Operations (solids) costs Occupational No. of work- Log-book/database Daily Field Operations NAIAX Part of Safety related injuries registration Center Operator Operations No. of safety costs man-hours Expressway No. of Log-book/database Daily Field Operations NAIAX Part of Safety vehicular registration Center Operator Operations accidents costs Public No. of valid Consultations with Variable Affected NAIAX To be Perception/ complaints local officials, barangay/s Operator determined Acceptability residents or concerned citizens D. Abandonment stage Air Quality Dust Visual observation To be To be determined To be To be determined determined determined Noise Observation To be To be determined To be To be determined determined determined Water Quality BOD, TSS Quick Sampling To be To be determined To be To be determined determined determined Solid/Hazardous Liters/No. of Visual inspection/ To be To be determined To be To be Wastes drums (liquids) weighing determined determined determined Kilograms (solids) Termination of No. of Check of To be To be determined To be To be employees personnel employment determined determined determined affected records Source: The study team

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7.4 RESETTLEMENT ACTION PLAN

The implementation of the NAIAX is expected to yield a number of involuntary resettlement impacts as a result of land acquisition for ROW. Much of the affected area belongs to the government that have facilities established along the project alignment. Other social impacts involve the displacement from their abode are an estimated 53 informal settler families that are residing beside the Paranaque River at Barangay 191, as well as another 8 from Barangay Tambo. Refinements to the road alignment had avoided displacing other landed families and barangay offices in Barangay 185. Other affected areas are commercial establishments with expired leases (with MIAA) that have partially affected offices and facilities along the road alignment. In this section, an overview will be provided on the project relocation policy, an inventory of losses that may be created by the project implementation, the displaced persons’ accepted mode of relocation, and expound on the road alignment alternatives and the reason for the preferred alignment selection.

7.4.1 NAIAX Project Resettlement Policy

Under the project’s involuntary resettlement policy, in conformity with the DPWH LARRIP guidelines and World Bank social safeguards, involuntary resettlement impacts are to be avoided whenever possible. Should these IR impacts are unavoidable, appropriate mitigation measures are to be implemented to restore project affected persons to at least their pre-project socio-economic conditions. Severely affected PAFs as in the case of the informal settlers in Barangay 191, are entitled to compensation for loss structures (at replacement cost) and other allowances (i.e. income loss, inconvenience allowance, rehabilitation assistance, rental subsidy and transportation assistance). Section 7.1.2.1.3 (Means to Bridge the Gap) enumerates the NAIAX project involuntary resettlement policy, and Table 7.1.2-3 Entitlement Matrix summarizes the type of compensation and other benefits due to affected persons including those severely affected that require shifting.

7.4.2 Inventory of Loss

7.4.2.1 Loss of Land

The implementation of the NAIAX project will require the acquisition of lands for Road Right- of-Way (ROW) belonging mostly to the government. It is estimated that a total of 2.9 hectares of mostly institutional lands belonging to the Manila International Airport Authority at 19,850 m2 (67.9%), followed by the Philippine Postal Corporation at 4,600 m2 (15.7%) and the Light Rail Transit Authority at 2,200 m2 (7.5%). Only a 400 m2 (1.4%) property belonging to a private company called CityLand Corporation located at the corner of Sunset Road and Roxas Boulevard will be affected. A portion of the said vacant private land located within Barangay Tambo will be acquired to give way to the installation of the on-off ramps to Roxas Boulevard.

There are about 1,200 m2 of government lands currently under the name of BCDA that will be affected by the installation of on-off ramps at the Cavite coastal Road. These lands located at the former Camp Claudio of the Philippine Navy were turned over to the BCDA for use for socialized housing project. Already, the area has been allocated to numerous beneficiaries, however, actual titling cannot be done until a number of court cases for overlapping claims can be resolved. The affected beneficiaries of the socialize housing project are entitled for compensation for the land even if they have not been actually issued the corresponding land patent.

The colony of the affected informal settlers from barangay 191 is located within the MIAA property between NAIA Road and Electrical Road along the Paranaque River. The colony

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straddles between the Park & Fly Parking Building and the Philippine Air Force K9 unit that is housed on an abandoned LTO building. Table 7.4.2.1-1 contains details of the affected lands.

TABLE 7.4.2-1 LOST OF LAND

City Name Area (m2) % Remarks 1 Pasay Manila International 19,850 67.9 Government land Airport Authority 2 Pasay Light Rail Transit 2,200 7.5 Government land Authority 3 Pasay Philippine Air Force 1,000 3.4 Government land 4 Pasay Phil Post 4,600 15.7 Government land 5 Paranaque Bases Conversion and 1,200 4.1 Government land not yet Development distributed to beneficiaries due Authority (BCDA)* to on-going court cases for overlapping claims. 6 Paranaque CityLand 400 1.4 Private land Total 29,250 *Land titles not yet given to beneficiaries due to on-going court cases

7.4.2.2. Loss of Structures

There are a number of major structures that are expected to be affected by the implementation of the NAIAX which includes residential structures, government buildings mostly belonging to MIAA that are leased to airport related commercial establishments, as well as minor structures that are part of the main structures.

An inventory of the affected residential structures on the other hand, would yield 33 total housing units that may be demolished. Most of the structures (53 units) are found in Barangay 191 within the informal settler colony, and the remaining 8 structures are situated in the former Camp Claudio in Barangay Tambo. There are slightly more male-headed households at 33 units loosing residential structures to female-headed households (28 units). Further, the total floor area of affected residential units amounts to 1,596 m2 most of which are found in Barangay 191(78.6%), while the remaining 342 m2 corresponding to 21.4% are from Barangay Tambo. Details of the affected residential structures are found in Table 7.4.2-2 below.

TABLE 7.4.2-2 AFFECTED RESIDENTIAL STRUCTURES Male-Headed Female Headed Barangay City Unit Total HH HH Number 29 24 53 191 Pasay Area (m2) 653 602 1,254 Number 4 4 8 Tambo Paranaque Area (m2) 156 186 342 Number 33 28 61 Total Area (m2) 809 787 1,596

*Source: NAIAX socio-economic survey.

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7.4.2.3 Loss of Trees

Along the existing roads, there are a number of trees and ornamentals that had been planted on the roadside and front of buildings as part of the landscaping works. These vegetation are maintained by MIAA as well as the Metro Manila Development Authority (MMDA). The implementation of the NAIAX project may affect an estimated 223 trees and ornamentals that had been planted along the planned alignment which mostly follows the existing roads.

For timber trees, the tree inventory had listed down a total of 10 species affected, numbering to about 88 pieces. The hardwood narra accounts for most of the affected trees numbering to about 40 pieces, followed by Talisay (12 pcs), ipil-ipil (11 pcs) and mahogany (8 pcs) among others. Other trees include molave, eucalyptus, kapok, balite, Benjamin fig, and ear pod wattle. Table 7.4.2-3 contains the detailed inventory of affected timber trees.

TABLE 7.4.2-3 AFFECTED TIMBER TREES Name Unit No. 1 Narra tree 40 2 Molave tree 2 3 Ipil-ipil tree 11 4 Eucalyptus tree 2 5 Kapok tree 1 6 Balite tree 1 7 Benjamin Fig tree 7 8 Ear Pod Wattle tree 4 9 Mahogany tree 8 10 Talisay tree 12 Total 88

It was identified that there were also a total of 15 species of fruit-bearing trees that had been planted along with the timber trees as part of the landscaping works. There are about 55 pieces of these perennial trees that were planted throughout the road alignment. Some of these trees are already in their fruit-bearing stage. The most number of the affected fruit-trees are the Indian Mango (13 pieces), followed by coconut (8 pieces), jackfruit (7 pieces), and malunggay (7 pieces), among others. Other trees include: sampaloc, aratilles, duhat, kalamansi, rambutan and banaba. While the trees were planted purely for landscaping purposes, the fruits when in season, may have been harvested for personal consumption by the maintenance crew. Table 7.4.2-4 contains the detailed inventory of affected fruit-bearing trees.

TABLE 7.4.2-4 INVENTORY OF AFFECTED FRUIT-BEARING TREES Name Unit No. 1 Jackfruit (FB) tree 1 2 Jackfruit (M) tree 6 3 Indian Mango (FB) tree 12 4 Indian Mango (M) tree 1 5 Coconut tree 8

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Name Unit No. 6 Sampaloc (FB) tree 1 7 Santol (FB) tree 2 8 Santol (M) tree 2 9 Aratilles tree 2 10. Duhat (FB) tree 4 11. Duhat (M) tree 2 12. Kalamansi tree 1 13. Malunggay tree 7 14. Rambutan tree 1 15. Banaba tree 5 Total 55

Similarly, there are also several ornamentals planted along the road and the MIAA complex that may be affected by the NAIAX. A total of about 5 species of ornamentals numbering to about 80 pieces have been inventoried along the alignment. Assorted ornamental plants numbering to 53 pieces may be affected, followed by tuba-tuba (19 pieces), and Indian tree (5 pieces) among others. The tuba-tuba is a tropical plant that has medicinal properties, usually used for treating muscle swelling caused by sprains, and related orthopedic problems. Table 7.4.2-5 contains details on the affected trees.

TABLE 7.4.2-5 INVENTORY OF AFFECTED ORNAMENTAL PLANTS NAME UNIT NO. 1 Indian Tree tree 5 2 Palm palm 1 3 Ornamentals plants 53 4 Tuba-tuba plants 19 5 Kalachuchi tree 2 Total 80

7.4.2.4 Institutional Characteristics

7.4.2.4.1 MIAA

As earlier mentioned, the most affected party by the NAIAX project is the MIAA, a corporate organization under the Ministry of Transportation and Communications. This institution will be loosing land, structures and income from lost rentals, as a result of project implementation. However, MIAA is also one of the main beneficiary of the project by being provided by the Philippine central government with a better access facility to and from its airport terminals for passengers and cargo.

In view of the benefits MIAA would stand to gain from the project, discussions with the agency have been very cordial, and its leaders will be instrumental in negotiations with their affected commercial lease holders for the final compensation for loses and relocation site within the MIAA compound for displaced companies.

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7.4.2.4.2 Barangay LGUs

The informal settlers along the NAIA road and Electrical Road are residing within the MIAA compound at Barangay 191. Under the Philippine context, the Barangay LGU plays a significant role in responding to the needs of its constituents most especially those indigent households. Consistent with the practice of allowing the concerned Barangay officials to handle relocation proceedings, it is recommended that the concerned local leaders to play a major role in coordinating with the affected persons most especially during the public consultation meetings for the project, and coordinating the actual transfer of the displaced persons to the proposed relocation site.

7.4.3 Resettlement Measure

In order to achieve the objective of the Resettlement Action Plan, measures are proposed inorder to mitigate the negative social impact the implementation of the project will create on the project affected persons. There are fiver categories of PAPs namely: a) Philippine Government Institutions (MIAA, PAF, LRTA, PPC); b) Commercial Leaseholders of MIAA Properties; c) Informal Settlers residing within the MIAA property at Barangay 191; d) Private landowners in Barangay Tambo; and e) beneficiaries of lots within the government relocation site at Barangay Tambo.

Appropriate resettlement measures have been devised to suite each of these five types of PAPs. Whereas, government is the most affected party in the implementation of the project at loosing 2.88 hectares of land, numerous non-moveable structures, and lost income from office rentals and taxes from sales of affected commercial establishments, much concern was placed on the treatment of vulnerable groups such as the poor that are among the informal setters.

Informal settlers have also been afforded their rights under the UDHA Law (1992). Relocation measures that include “In-City” Relocation Package, and “Balik-Probinsya” (Return to Province) Package, and other support have been crafted to meet their needs in conformity with the Project Resettlement policy and those of the ODA funding source and existing government laws. The relocation packages were presented briefly to the PAPs during the consultation meetings held at the various traversed Barangays as well as the affected commercial Concessionaires of MIAA.

7.4.3.1 Replacement Cost Payment to Government Institutions for Lost Non-Movable Assets

As described earlier, the Philippine government is the most affected party in the implementation of the NAIAX project. Among the affected assets are government lands along the road alignment that are needed for ROW, buildings and other structures that have been established on these lands, and the income from lease and foregone tax revenues resulting from lost sales. However, the feasibility study prepared for the project had indicated that the economic gains for the country and to the local community outweighs the cost to be incurred. It is for this reason that the project had been approved for implementation. The amount needed to defray the resettlement cost for lost public properties will be earmarked from government coffers to pay for these lost non-movable assets. Lost government income will however not be covered.

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7.4.3.2 Relocation of Commercial Lease Holders of MIAA Properties

The second biggest number of affected persons are the commercial lease holders of MIAA properties. These private business have been leasing government properties for quite some time for profit, and most have expired lease which are renewed on a yearly basis. DPWH will through MIAA, inform the affected lease-holders at least 6 months in advance of the scheduled land acquisition activity, in-order that these parities will be able to plan out their relocation strategy. Likewise, MIAA will no longer extend the lease of those parties whose offices (located in government buildings) that will be severely affected by the NAIAX. However, MIAA will provide these affected companies assistance in finding a suitable replacement office space/location within the NAIA complex to continue their operations.

7.4.3.3 “In-City” Relocation Package for Eligible Informal Settlers in Barangay 191

Eligible Informal Settlers will be given an “In-City” Relocation Package composing of the following: a) Replacement cost in cash for affected structures with no deduction for salvage value of building materials nor transaction cost; b) transportation assistance to the relocation site; c) assistance for the restoration of public utilities (i.e. water, electric power, and garbage collection); and d) income restoration assistance. If the PAPs choose to dismantle their own structure, then he/she will be paid by DPWH an additional amount for the effort and allow the household to keep the materials. The PAPs will be informed by the RIC at least 6 months in advance of any planned demolition work on their affected structures.

The NHA will be responsible for processing the PAPs to identify the professional squatters. While these groups may be compensated for their affected structures, other benefits due to PAPs will not be given to them.

For renters of shanties within the affected colony, they will be assisted by the RIC to find a suitable replacement lodging place. This is in addition to the one month rental assistance. Similar to the affected informal settler PAPs, the renters of shanties will be informed at least 6 months prior to any scheduled demolition works of their rented structures.

7.4.3.4. “Balik-Probinsya” (Back to the Province) Package

Eligible Informal Settlers who opt to return to the province will be provide with a package composed of: a) replacement cost for lost structures with no deduction for salvage value of their building materials nor transaction fee; b) one-way transportation allowance to the province; and c) disturbance allowance of P15,000 which the PAPs can use as a seed capital to start a small business. While during the consultation meeting no PAPs have signified their intention to avail of this scheme, the option is still available just in case there will be some displaced persons who would change their mind.

7.4.3.5. “In-City” Relocation Package for Relocation Site Beneficiaries in Barangay Tambo

The PAPs in Barangay Tambo will have a similar package to those Informal Settler PAPs in Barangay 191. In addition, they will be paid replacement cost for the affected land. While these 12 households still do not have the titles to the land they are occupying due to whatever reason, they are considered as landowners and as such are entitled to payment for the lost land.

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7.4.3.6. Availment of Units in Existing National Housing Authority (NHA) Relocation Projects

The National Housing Authority (NHA) has a number of relocation projects that had been established in various areas within and near Metro Manila. These facilities were built primarily for informal settlers that had been moved away for safety reasons from waterways and other hazardous areas, as well as areas required for government projects intended for the general good. Interested eligible project displaced persons can be referred by the DPWH Implementing office to NHA to secure available units in these facilities. Of interest are those sites that had been selected by the affected persons themselves. NHA served only as a facilitator to establish the relocation site, which includes providing the PAPs with site options, financing plan, and prequalifying building contractor. It is the PAPs that will eventually select the contractor based on the proposed project package they (contractor) will present to the PAPs.

Consultation with NHA management had indicated that there are no available units at the time of the report preparation, however, it is possible to issue a change order effecting the construction of additional units based on a minimum number of beneficiaries. Processing and approval of the housing loans to pay for the cost of the units will be done by NHA once the displaced persons are assessed to be eligible for the credit assistance. While there were no PAPs that had signified their intention of availing of the NHA relocation site units, this option will be made available in the event there will be PAPs that will change their minds.

7.4.4 Relocation Plan

7.4.4.1 Site Selection

Initial consultation meetings carried out with the Barangay and City Officials of the affected Informal settler colony specifically Barangay 191 and Tambo had indicated the preference for “in-City” type of relocation. This choice of relocation mode was confirmed during the actual public meeting (Barangay 191 and Tambo) with the affected persons.

Presidential Proclamations under TCT6735-1

Following the said consultations, possible sites within the MIAA complex was explored to identify possible relocation sites suitable for the displaced persons. The huge airport complex had in the past lay host to numerous informal settler families, many of them have become beneficiaries of “on-site resettlement” or were awarded by government the land on which they have settled. This land awarding was made possible by the issuance of a Presidential Proclamation, declaring portions of the MIAA complex for use in Socialized Housing Projects. There have been four (4) recent proclamations within the MIAA complex covering a total area of about 36 hectares, which were mostly administered by the National Housing Authority (NHA) for distribution to qualified beneficiaries which includes: Proclamation 135 (dated 12/7/1999), Proclamation 144 (dated 18/01/2002), Proclamation 595 (dated 2/4/2005) and Proclamation 1225 (dated 30/01/2007). Among the project affected areas that was part of this socialized housing program include portions of Barangay 185. A section of Barangay Tambo that had also been affected was part of Camp Claudio that also was covered by another Presidential Proclamation for use in Socialized Housing. Table 7.4.4.1-1 contains more details on the recent Presidential Proclamations while Figure 7.4.4.1-1 contains the location of the Proclamations.

7.4.4.2 Balagbag II Property

A review of existing Presidential Proclamations within the MIAA complex would show that most of them are already occupied by informal settler families. Only one such area called “Balagbag II” which used to be a garage leased out to a transport company, can be developed into a

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relocation site. The facility which is located at the Southeastern-most portion of the MIAA complex beside the exclusive Merville Subdivision is about 4,000 m2 in area, has concrete flooring and galvanized iron roofing with steel support; is accessible by a good concrete road connected to the MIAA complex, has essential utility connections (i.e. water supply, drainage, power supply, garbage collection) and is still within the administrative boundary of Pasay city so the local government will not loose its constituent registered voters. At present, the enclosure is being used as a garage by a small group of jeepneys. The property is part of the “Balagbag II” area can be seen in Figure 7.4.4-1 as part of the original Balagbag II (30,000 m2).

The MIAA has plans to develop a multi-story apartment type relocation building on the property to house the informal settler families still residing within their property. There however, is no definite schedule when the facility will be built and made operational to accept the displaced persons. Should the option of shifting the NAIAX PAPs to the planned MIAA relocation facility be selected, then the moving informal settlers should first be allowed to built and live in temporary structures within the property. Once the relocation facility will be established, then the PAPs will be first to occupy such building.

TABLE 7.4.4-1 PRESIDENTIAL PROCLAMATIONS FOR SOCIALIZED HOUSING WITHIN THE MIAA COMPLEX Proclamation No. Date Project Title Area

Sitio San Juan 8,168 Sition Santa Rita 6,851 1 135 12-Jul-99 Sitio Maligaya 7,745 Sitio Puyat Compound 14,583 Subtotal 37,347 Balagbag Area 58,817 Don Carlos 69,689 2 144 18-Jan-02 Maricaban 13,300 Bo. Pilipino Putol 1,000 Subtotal 142,806 Rivera Village 36,498 Pidera 1 41,571 Pidera 2 143,279 3 595 2-Apr-05 Remaining portion of 30,000 Balagbag Subtotal 251,348 4 1225 30-Jan-07 Balagbag I 2,000 Grand Total 433,501 Less: Setback & retained area for MIAA-BRIDD Balagbag 1 20,000 Balagbag 2 4,000 Pidera 1 & 2 12,175 Subtotal 36,175 Less Proclamation 135 area already distributed 37,347 TOTAL 359,979

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In view of road alignment modification done by the project engineers, possible affected Barangay 185 structures are no longer required to be demolished, and instead MIAA properties on the other side of Andrews Avenue will suffer. Similar adjustments are also being done in Barangay Tambo where the 8 affected households may likewise be spared. However, at the time of this report writing, the adjusted alignment had not yet completed.

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FIGURE 7.4.4-1 LOCATION MAP OF VARIOUS PROCLAMATIONS COVERED TCT 6735

7.4.4.3 MIAA Properties at Barangay 191

Former California Bus Line Garage

The other suitable relocation site identified within the MIAA property is the open space beside the informal settler colony and the Park & Fly Parking Building which was rented before by the California Bus Line (CBL). This sprawling open-air garage with concrete pavement has an area of about 2 hectares which is more than enough to accommodate all of the PAPs. The property has access to the Domestic Road as well as NAIA Road, the connections to basic utility lines (i.e. electric power, water supply, drainage, garbage collection etc.) that support the former bus garage can be restored.

The residual area of the property once the NAIAX is completed, will have bisected layout which may not be suitable for a mixed-use property development. Besides, there are still a lot of idle and underdeveloped properties within the MIAA complex which have a better real estate potential compared to the residual area of the former CBL garage. In this view, the property may best be used to house the informal settlers to be displaced by the NAIAX.

About 2,000 m2 (100m X 20m or 50m X 40m) may only be needed from the residual portion of the former CBL garage. Rows of 2 story multi-door apartment or townhouse buildings can be constructed for the informal settlers. Each 2 story apartment unit may have about 2.5m X 4.0m per floor for a total of about 20 m2 per unit.

A major advantage of the former California Bus Company leased MIAA property is its near proximity to the current PAPs colony where-by very minimal dislocation impact related to the physical transfer of the existing residential structures from its present location to the adjacent site; restoration of utility lines, and disruption of the PAPs lives during the shifting period.

Should the shifting of PAPs to the adjacent empty lot option be considered, minimal income restoration work will be required. Those that are engaged in the exercise of their respective profession or are employed will only be briefly disrupted from their means of livelihood during the shifting period. Those who are in the small scale trading (sari-sari store) and small eatery (“karinderia”) will also need minimal time for restoring their respective stalls. If the PAPs are informed well in advance of the shifting schedule, then arrangements can be made such that the stores can be installed at the new residential site in advance of the actual shifting schedule thereby not allowing any income disruption at all.

The only issue with the use of the adjacent open lot as a relocation site is that this property has not yet been included in the earlier Presidential Proclamations to change the landuse of the site into Socialized Housing. DPWH will have to recommend to the Office of the President for the issuance of another Presidential Proclamation converting the MIAA property (open space beside Park & Fly Parking Building) for socialized housing. Under the UDHA Law, government is mandated to identify unutilized government lands that can be used for socialized housing, and as such, the said property falls into this category. Figure 7.4.4-3 shows the photograph of the empty lot that used to host the California Bus Line Garage.

Former Bureau of Land Transportation Office Building

Another potential relocation site is the former Bureau of Land Transportation (BLTO) Office Building at Barangay 191 beside the informal settler colony. This single story building is currently being used by the K-9 unit of the Philippine National Police Airport Security Group (PNP-ASG). The facility still has its utility connections, has a good building structure which does

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not appear to require any repairs, and has an existing cyclone-wire fencing. It has access to the NAIA Road, as well as the Electrical road.

Similar to the option on the use of the former California Bus Line open-air garage, shifting the PAPs to the former BLT building will entail very minimal disruption to the lives of the informal settlers, as the building is just adjacent to their present abode. Arrangements will just need the modification of the building to accommodate the individual displaced PAPs households, which may include installation of dividers to have a place for each household, reallocation of utilities, kitchen, toilets and others.

The current occupants of the building (PNP-ASG K-9 unit) will have to be relocated to other military installations at the nearby Villamore Airbase or Fort Bonifacio. There are suitable barracks for these canine units at the military camps and arrangements will also need to be made by DPWH with their commanders to allow the allocation of space for them at the time for their (PNP-ASG K9 unit) shifting.

Just like the use of the former California Bus Line-leased MIAA property, the former BLTO building had been built on government property that had not been covered by the recent Presidential Proclamations that changed the landuse of such lands from institutional to socialized housing. Should this option (use of former BLTO building) be considered as the preferred mode of relocation, then appropriate representation should be made by DPWH with the Office of the President to issue a Proclamation for the land on which the BLTO building had been built, for socialized housing. Also, the building will have to be donated to the shifting informal settlers for use as their dwelling place. Figure 7.4.4-2 contains the photograph of the former BLTO building.

Former ARPA Travel and Tours

A fourth option is the former ARPA Travel and Tours Office at the back of the Petron Gas Station along Airport Road near the corner of Domestic Airport Road. The lot is about 800 m2, and can be developed into a medium rise (4 stories) condominium-type building to accommodate the Barangay 191 displaced persons. Figure 7.4.4-4 contains the photograph of the former ARPA Travel and Tours lot.

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FIGURE 7.4.4-2 ABANDONED FORMER BUREAU OF LAND TRANSPORTATION BUILDING WHICH IS NOW USED AS THE PNP AVIATION SECURITY GROUP K-9 OFFICE. THE COMPOUND CAN SERVE AS A RELOCATION SITE FOR THE INFORMAL SETTLER PAPS WHOSE COLONY IS ADJACENT TO THE

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FIGURE 7.4.4-3 OPEN SPACE AT THE NORTHWEST CORNER OF THE FORMER CALIFORNIA BUS LINE COMPOUND THAT MAY BE USED AS RELOCATION SITE FOR THE NAIAX DISPLACED HOUSEHOLDS SUCH AS THOSE FROM BARANGAY 191 AND TAMBO

FIGURE 7.4.4-4 EMPTY LOT BEHIND THE PETRON GAS STATION ALONG AIRPORT ROAD AND ADJACENT TO BARANGAY 191

7- WHICH CAN SERVE AS A RELOCATION SITE FOR NAIAX PAPS 151

7.4.4.4 National Housing Authority (NHA) Existing Relocation Facilities

There are existing NHA Relocation Facilities that had been established primarily to accommodate informal settlers that had been moved from dangerous grounds to their own safety. These dangerous grounds include areas where the health and safety of residents are at risk such as river banks, dangerous slopes, beside railroad tracks, and many others. Also, these sites are made available for persons/households that are displaced by government projects that require road right- of-way among others. Among the successful relocation sites are those that were established with strong community participation. This community initiative approach, allows the PAPs to identify areas where they want to relocate, select the financing arrangement that suit their capacity to pay, and choose the contractor that will procure the land and built the resettlement facility. NHA will only guide the PAPs through the process, explaining what is required for each process; provide the financing necessary to build the project, prequalify the contractors tasked to build the facility, and do credit collection from the beneficiaries.

PAPs who choose to move to an existing NHA relocation site will first undergo screening the NHA, to weed out, the professional squatters. Then only qualified PAPs will be allowed to avail of the relocation facility. Likewise, NHA will provide the list of the relocation sites, complete with vital information that the PAPs will need to decide where to go. If there is no available slot in these facilities, then expansion of the existing site is allowed at a uniform rate of P150,000 per household. However, at least 200 displaced HH is required before a new building will be built. The minimum number of beneficiaries is based on economics of the structure’s establishment.

7.4.5 Phasing of Relocation

7.4.5.1 Shifting Arrangements

Use of Bureau of Land Transportation Office Building

The various options presented can be implemented different ways. The fastest option is the transfer to the former Bureau of Land Transformation Office. Following a decision to be made jointly by MIAA, DPWH and PNP, through a memorandum of agreement, the current PNP K-9 unit will transferred to another military facility within the adjacent camps, modification of the building to suit the requirements of the displaced persons, and physical transfer of the PAPs proceeding the completion of the modified building, and then dismantling of the current informal settler colony can be pursued right after. Once the PAPs have already transferred to the new site, efforts by DPWH to secure the Presidential Proclamation of the building’s land for socialized housing, as well documentation of the structure’s donation to the PAPs can follow.

Former California Bus Lines Compound

The second desired shifting arrangement, is the physical transfer of the PAPs from their present abode, to the empty space in the adjacent former California Bus Line Compound. The PAPs an either use their existing housing materials to build their new abode, and secure the assistance of DPWH to arrange for the restoration of the utility connections. Should the PAPs opt for an apartment type relocation site, then the house built from their dismantled structures can serve as a temporary shelter, meanwhile efforts are being made by DPWH or NHA to design and build a more decent apartment type housing with in the property. Under such arrangement the NHA can be tapped to provide the financing to complete the relocation site for eligible PAPs.

Similar to the use of the former Bureau of Land Transportation Office, the California Bus Line compound will require efforts by DPWH to secure the appropriate Presidential Proclamation for

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the site to be use for socialized housing. Such effort can be done even when the PAPs are already settled in the said open space that belongs to the MIAA.

Balagbag II

Following the same arrangement for the use of the former California Bus Line compound, the Balagbag II property of MIAA, can also immediately accommodate the shifting PAPs who can build temporary housing units utilizing the dismantled portion of their houses to be supplemented by other construction materials, These temporary shelter will serve as the displaced household abode, meanwhile the planned MIAA multi-story residential facility to accommodate the informal settler community within its territory had not yet been built. The only difference of this approach compare to the others, is that the land has already been declared for socialized housing, and thus there are no legal impediment for eligible beneficiaries to avail of such arrangement when the facility had already been completed. However, MIAA had not yet announced as to when such relocation facility will be built.

Another possible arrangement, is for MIAA and DPWH to allow the displaced informal settlers to established temporary shelters at the former California Bus Lines compound or at the former Bureau of Land Transportation Office meanwhile the relocation facility at Balagbag II had not yet been constructed. This arrangement however, will entail the dislocation of the affected person’s living twice which is not desirable.

7.4.5.2 Processing of PAPs for Eligibility

The National Housing Authority (NHA) can be tapped to process the informal settler PAPs for eligibility. This screening is done by NHA thru their field units, one of which maintains an office at the Maricaban Area (Barangay 185). The PAPs are interviewed by trained government personnel to secure their basic personal information, and then check these with their (NHA) data base of informal settlers that had already availed of benefits from government relocation programs. Those displaced households that have been beneficiaries of other socialized housing projects are automatically tagged as non-eligible to get further relocation assistance. While these displaced persons may get compensation for their affected houses, they may not be given the privilege to buy units in relocation sites.

It could be noted that there are some PAPs that are renters of other people’s residential structures. The eligible renters (non-professional squatters) may be given the privilege to build a house at the relocation site. However, if the owner of the structures if be found to be a professional squatter, may only get compensated for the affected structure, but not allowed to build a house on the relocation site.

7.4.6 Restoration of PAPs to their Pre-Project Socio-Economic Condition

The “In-City” type of relocation is ment to minimize dislocation of the PAPs from their source of livelihood, social structures or kinship, access to basic social services, and other support systems that had enjoyed while staying in their present colony. The physical transfer of the PAPs to a nearby relocation site such as the adjacent former Bureau of Land Transportation Building or the former California Bus Line Compound will provide such minimal displacement. The children can still continue to attend school at the nearby Tambo Elementary School, continue to have their access to the Barangay Hall facilities (i.e. Day-Care Center, multi-purpose hall, etc.), potable water supply, electric power supply and others.

The physical transfer of the PAPs to the Balagbag II property will to a certain extent give a minimal social impact to the PAPs as the site is well within the MIAA Complex and is accessible

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to their current source of livelihood and social amenities. However, the children will have to commute to their school which had just been a few feet away in their current abode.

Restoration of utility services will not be a problem since, the two “In-City” relocation site is adjacent to the affected area. Minor connections will be necessary to extend existing lines a little longer to reach the new relocation site as in the case of the former California Bus Lines compound if used as a relocation site. For the former Bureau of Land Transportation Building, there are already existing utility connections that need to be modified to ensure that each unit of the modified structure will have such services. DPWH can provided assistance to the PAPs in the designing the renovated structure such that it is suitable for use of the displaced persons. The designs include, partitioning of the building into confortable residential units, complete with electrical and water supply, sanitary and sewerage system.

7.4.7 Grievance Redress Mechanism

Grievances related to the project will be handled through discussions aimed at achieving consensus following procedures as set forth in the LARRIP guidelines which are as follows:

i. The grievance shall be filled by the PAP with the Resettlement Implementation Committee (RIC) who will act within 15 days upon receipt of the case, except complaints that specifically pertain to the valuation of affected assets, as this shall be decided upon by the proper courts;

ii. If no resolution or amicable solution can be reach, or the PAPs does not receive a response from the RIC within 15 days of filing of the complaint, the petitioner can appeal the case to the concerned DPWH Regional Office, which should act on the grievance within 15 days from the receipt of the document;

iii. If the PAPs is still not satisfied with the decision of the DPWH Regional office, he/she, as a last resort, can submit the complaint to any court of law.

The PAPs shall be exempted from all administrative and legal fees incurred when seeking grievance redress for project related issues.

All complaints weather in writing or verbal (to be put in writing by RIC staff) from the PAPs will be documented and shall be acted upon immediately according to the procedures mentioned above.

7.4.8 Implementation Arrangements

The DPWH is the Executing Agency that is responsible for the implementation of the NAIAX project. The BOT-PMO is the implement office that is responsible for the day to day operations of the project in behalf of the DPWH and reports directly to the Assistant Secretary for Planning on matters related to the project. The OIC-Director of the BOT-PMO also serves as the Project Director and will assign a focal person to coordinate all activities of the NAIAX.

The ASEC for Planning will issue a special order establishing the technical working group composed of representatives from the relevant DPWH units concerned with land acquisition and resettlement (i.e. ESSO, IROW, DPWH NCR, project consultants) to assist the BOT-PMO in the planning and implementation of the RAP. The NAIAX technical working group will periodically meet to discuss the progress of the resettlement planning and will appropriate support to the BOT- PMO and consultant team in matters like guidance/technical support; attendance in meetings with other concerned government agencies related to the project, public consultation meetings, and RAP disclosure meetings with PAPs.

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The representative from DPWH NCR will also coordinate the parcellary survey of affected lots and will assist the consultant in tagging and inventory of affected structures. The technical working group will likewise review the draft RAP and provide its comments prior to the plan’s approval and endorsement to donor agency for concurrence, and finally implementation of the perfected document. Concurrent to the RAP review process, the PMO-BOT will likewise request the DPWH financial department to allocate an amount equivalent to the project resettlement cost as well as administrative cost of project management.

Upon the approval of the RAP, the Assistant Secretary for Planning through the PMO-BOT will issue an order instructing the IROW to initiate its implementation thru the conduct of negotiations with the PAPs in order to derive the replacement cost of affected land, and finalize the resettlement cost of the project based on the approved RAP. Based on the final RAP budget and disbursement schedule, the PMO-BOT will request for the release of the necessary amount for the payment of compensation and other entitlements; as well as other costs.

The Assistant Secretary for Planning through the PMO-BOT will initiate the establishment of the Resettlement Implementation Committee (RIC) that will take charge of the implementation of the RAP. Representatives from concerned DPWH offices will be assigned to the RIC which includes the ESSO, IROW, DPWH NCR and the District Engineers Office having jurisdiction over the project area. NCR and DEO will be directly involve In the physical execution of the RAP while ESSO and IROW will monitor the implementation and financial disbursements. Progress reports will be prepared by the DEO to be indorsed by NCR, while ESSO and IROW will review and process the reports in line with their monitoring and evaluation functions. ESSO and IROW will immediately call the attention of the implementers if deviations to the original plan are made, and appropriate corrective measures to be made both in the site and in the RAP. Periodic progress reports are to be prepared by ESSO and IROW for submission to PMO-BOT and the donor.

7.4.9 Implementation Schedule

The preparation and implementation of the RAP would take about one year and nine months to complete. Activities include: a) the preparation of the draft RAP, b) RAP review and approval process; c) Creation of a Resettlement Implementation Committee (RIC) to implement the RAP in the field; d) Signing of the Memorandum of Understanding among DPWH, MIAA, NHA and LGU Pasay City purposely to plan and develop the relocation site; e) Delivery or actual payment of Compensation and other benefits to PAFs; f) Preparation and implementation of Income Restoration Programs (IRP); and g) monitoring and evaluation.

The longest activity in the RAP implementation is the planning and establishment of the suitable relocation site for the informal settlers in Barangay 191. While there is a potential relocation site within the MIAA complex, the planning, financing and construction of the multi-story apartment type facility will definitely take a lot of time which may even go beyond the 1.5 years allocated to the activity. Planning and implementation of Income Restoration Program (IRP) for the FAPs my just take a year as the type of livelihood projects envisioned by the severely affected families are those in the micro to small scale enterprises such as sari-sari stores, small eatery (karinderia), transport service (tricycle/passenger jeepney) and others. Monitoring & Evaluation may take about 3.5 years up to the end of construction.

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2011 2012 2013 2014 ACTIVITIES 12 3 4 1 234123412 34 1 Resettlement Action Plan (RAP) Preparation 2 RAP Review & Approval 3 Creation of RIC and RAP Implementation Signiing of MOU, Planning and Relocation Site 4 Establishment 5 Delivery of Compensation and Other Benefits to PAFs 6 Shifting of PAFs to Relocation Site Preparation and Implementation of Income Restoratin 7 Projects 8 Monitoring & Evaluation 9 Detailed Design 10 Construction Phase FIGURE 7.4.9-1 RESETTLEMENT SCHEDULE

7.4.10 Financial Arrangements

PMO-BOT is responsible to ensure the sufficient and timely availability of funds for use in the planning and implementation of the RAP. In coordination with the preparers of the RAP, the BOT- PMO will prepare a work and financial plan indicating the budgetary requirements and disbursement schedule for the implementation of the RAP, and submit the plan to the DPWH financial department for inclusion in the Department’s budget request to the DBM.

Once the RAP is approved by the government and had been duly concurred by the donor agency, the BOT-PMO will inform the DPWH financial management service of the RAP’s final cost and disbursement schedule. Requests for payment related to the RAP implementation will be forwarded by the RIC to the PMO-BOT who will in-turn endorse the same to the DPWH financial management office through the office of the Asec for Planning. Disbursement reports will be prepared by the implementing office which in this case is the BOT-PMO and submitted to the ESSO for their monitoring and evaluation work.

The items eligible for DPWH payment includes all compensation and benefits listed down in the RAP budget with the exception of the land cost for the relocation site. Under RA 8974, it is the role of the concerned LGU to secure land for the establishment of relocation sites for shifting PAPs which includes informal settlers that have occupied government lands such as ROW. However, if the “In-City” relocation preference of the displaced informal settlers will be considered, then there is no need to provide for the cost of the land as these are government properties (i.e. MIAA land in Balagbag II, former California Bus Line Garage, former BLTO office, etc.). Other resettlement cost (i.e. construction of the housing units, utilities connection (i.e. light, water supply, drainage, etc.).

The RAP prepared by the subcontractor estimated that a total of 691.59 million pesos as resettlement cost. The amount is broken down into P 553.7 million for affected land, P136.9 million for affected structures, P0.58 million for affected trees and P0.76 million for other assistance/support. Much of the resettlement cost is for loss of land which actually belongs to government, as well as the cost for loss of structures.

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TABLE 7.4.10-1 RESETTLEMENT COST Amount Cost Item (P '000,000) I. Loss of Land 553.70 II. Loss of Structures 136.55 III. Loss of Trees 0.58 IV. Other Assistance 0.76 V. Total 691.59

7.4.11 Monitoring and Evaluation

A. Objective

The main objective of monitoring the implementation of the RAP is to determine whether or not these are carried out in accordance to the project IR policy as well as the LARRIP. The work involves the monitoring of land acquisition, payment of compensation for lost assets and resettlement of persons severely affected by the project.

B. Scope

The RAPs to be prepared, implemented and monitored, shall cover all the items mentioned in the RAP outline including the identification and compensation for the affected land, structures and other improvements, as well as for income restoration.

C. Monitoring Mechanism

Supervision and Internal Monitoring

The ESSO shall conduct supervision and internal monitoring of RAP implementation and will be called the Internal Monitoring Agent (IMA).

The specific task of the IMA includes the following:

i. Regularly supervise and monitor the implementation of the RAP in coordination with the concerned District Engineering Office (DEO), Region (NCR) and the Resettlement Implementation Committee (RIC). Regular quarterly progress reports are to be prepared and submitted to the BOT-PMO and to the donor;

ii. Coordinate with the NCIP regarding the monitoring and evaluation of RAP implementation with affected IPs;

iii. Verify if the re-inventoried base-line information of all PAFs had been carried out and that the valuation of affected assets, the payment of compensation and delivery of other benefits, and actual relocation of displaced persons; had been carried out in accordance to the submitted RAP progress report and the LARRIP;

iv. Ensure that the RAPs are implemented as planned;

v. Verify if whether funds implementing the RAP and MOAs, are provided by the BOT-PMO in a timely manner and adequate amounts; and

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vi. Record all grievances and their resolution, and ensure that complaints are resolved properly;

External Monitoring

An External Monitoring Agent (EMA) will be commissioned by BOT-PMO to perform a third- party external monitoring and evaluation. The EMA will either be a qualified individual or a consultancy firm with qualified and experience staff. The Terms of Reference of the EMA shall be prepared by the DPWH and shall be acceptable to the donor prior to engagement. The EMA is accountable to the BOT-PMO but reports to the ESSO. The BOT-PMO submits a copy of the EMA and IMA’s reports to the donor.

The task of the EMA are as follows:

i. Verify the findings of the IMA;

ii. Verify and assess the results of the information campaign for PAFs rights and entitlements;

iii. Verify that the payment of compensation and other benefits have been carried out based on the process as explained to the PAFs;

iv. Assess whether the resettlement objectives have been met; specifically whether the livelihood and living standards of PAFs have been restored and/or even enhanced;

v. Assess the efficiency, effectiveness, impact and sustainability of resettlement implementation, drawing lessons as a guide to future resettlement policy making and planning;

vi. Ascertain whether the resettlement entitlements were appropriate to meet the objectives, and whether the objectives are were suited to PAFs conditions;

vii. Suggest modification in the implementation procedures of the RAPs, if necessary, to achieve the principles and objectives of the Project Involuntary Resettlement Policy;

viii. Review how the compensation rates were derived; and

ix. Review the handling of compliance and grievance cases.

Stages and Frequency of Monitoring

The stages and monitoring frequency of the RAP implementation by the IMA and EMA is as follows:

i. Compliance Monitoring - This is the first activity to be pursued by both the IMA and EMA, to determine whether or not the RAP was carried out as planned and according to the Project Policy. The EMA will submit an Inception Report and Compliance Monitoring Report one month after the Notice to Proceed for the work. The commissioning of the EMA shall be so scheduled to meet the Project’s IR policy’s requirement of conducting RAP implementation activities at least one month prior to the start of civil works.

ii. Semi-Annual Monitoring – The EMA will be required to conduct a monthly monitoring of RA implementation activities.

iii. Final Evaluation – The final evaluation of the RAP implementation will be conducted 3 months after the completion of all payments of compensation and other benefits to the PAPs.

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iv. Post Evaluation – This activity will be undertaken a year after completion of the project, to determine whether the socio-economic conditions of the PAPs after project implementation have improved or not.

D. Schedule of RAP Implementation and Monitoring

The BOT-PMO in coordination with the ESSO, will finalize if necessary the RAP implementation schedule after its (RAP) approval, including the monitoring work taking into account the project’s implementation schedule. It is expected that one month prior to the start of civil works, all RAP activities have been determined by the IMA and EMA to be completed.

7.5 ECC STATUS

Environmental Compliance Certificate (ECC) for the “Manila International Airport Access Improvement Project” which is now called as “NAIA Expressway Project” was issued on June 26, 2002. Based on this ECC, Phase I of NAIAx was implemented. DPWH inquired EMB of DENR of validity of the existing ECC. On June 17, 2011, EMB replied that the existing ECC is still valid since NAIAx Phase I Project started within 5 years from the issuance of the original ECC.

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CHAPTER 8 ECONOMIC EVALUATION

8.1 METHODOLOGY

The economic analysis shall be determined whether the construction and operation of the proposed project will be feasible based on the benefits and costs to be derived from the project. The transport projects such as NAIA Expressway (NAIAX) can play a very important role in relieving bottlenecks that hinder economic growth. It is required however, that the project must be economically viable, satisfying the government-prescribed hurdle rates.

Annual economic cost and benefits shall be estimated under “with project” and “without project” case. The difference in economic costs and benefits in both cases shall be attributed to the project and subjected to economic feasibility measurement. The economic feasibility of the project shall be indicated by the economic internal rate of return (EIRR), benefit-cost ratio (B/C), and net present value (NPV) at an assumed discount rate of 15%, which is acceptable social discount rate for economic appraisal of public investment projects in the country. The hurdle rates for economic feasibility are the following: EIRR > 15%, B/C > 1.0, and NPV > 0. Sensitivity of the project arising from adverse changes in costs and benefits shall be examined to establish the capacity of the project to exhibit economic feasibility under these cases.

(1) General Work Flow of Economic Evaluation

Figure 8.1-1 shows the work flow of economic evaluation.

Benefit Stream Cost Stream Unit Vehicle Unit Travel Financial Cost Operating Cost Time Cost of Project (VOC) (TTC)

Traffic Assignment Result (per day) Exclusion of “Without” “With” Transfer Cost Project Project

Application of Summation of Summation of Shadow Wage VOC & TTC VOC and TTC Rate (SWD)

Benefit Economic Cost Daily Savings of VOC & TTC of Project

Yearly Benefit Investment Program

Benefit-Cost Yearly Flow

Evaluation  EIIR  B/C  NPV FIGURE 8.1-1 WORK FLOW OF ECONOMIC EVALUATION 8-1

(2) Indicators of Economic Evaluation

Economic costs and benefits throughout the project life periods are compared by a discount cash flow analysis. The discount rate (hereinafter referred to as “DR”) is at 15%, which is widely used in Philippines as a social discount rate. For economic evaluation, three indicators are calculated: Economic Internal Rate of Return (hereinafter referred to as “EIRR”), Benefit/Cost Ratio (hereinafter referred to as “B/C”) and Net Present Value (hereinafter referred to as “NPV”). In addition, the economic life is assumed to be 50 years, taking into account future rapid urban growth and changes of socioeconomic conditions. Therefore, the Pro-forma cash flow of a project evaluation will be prepared for 2011-2046. They are defined as Table 15.5.1-1.

TABLE 8.1.1-1 INDICATORS OF ECONOMIC EVALUATION

No. Indicators Calculation Formula or Value

1 Discount rate (DR) 15% in Philippines as a social discount rate

B C Economic Internal Rate r satisfying: n  n 2 n  n of Return (EIIR) B: benefit, C: Cost  r  r)1()1( Benefit/Cost Ratio B C n  n 3  n  (B/C)  DR  DR )1()1( n

Net Present Value CB nn 4 (NPV)   DR)1( n Pro-forma cash flow of 5 a project evaluation Period for 2011-2046 Source: JICA Study Team

8.2 ECONOMIC COST OF THE PROJECT

(1) Initial Cost

The project cost must be estimated by shadow price in the cost benefit analysis. This is because market price is distorted by governmental system and policies such as custom duty, import curb and market intervention. The shadow price expresses the real value of the resources.

The Project cost of NAIAX is estimated in market prices in Chapter 6 as summarized in Table 6.11-1. They are converted into economic cost and the residual cost after the project life is calculated for economic evaluation, taking the following process.

(a) Out of material and equipment cost, import duty and value added tax (VAT) at 12% are deducted

(b) For the portion of unskilled labor cost, Shadow Wage Rate (SWR) is applied. According to the unemployment rate of Philippine Central Bank data in 2009 is high rate of 7%. The recent average unemployment rate is applied to Haveman’s formula and 90% of SWR is obtained to adjust the labor cost as following.

SWR = (Wage rate in market) x (1.25 – Unemployment rate/0.2) = (Wage rate in market) x 0.90

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(c) The life year will be considered at 30 years.

(d) The required costs for operation and maintenance were examined in Chapter 6 in market price. These data are converted into economic price.

TABLE 8.2-1 ESTIMATED ECONOMIC COST Million Pesos Rate = Description Financial Cost (A) Economic Cost (B) (B/A) 1. Civil Work Cost 9,655.85 8,425.96 0.87 2. Repair/Improvement Cost of Phase-1 13.80 12.09 0.88 3. Existing Utilities Relocation Cost 169.42 148.52 0.88 4. ROW Acquisition Cost 947.76 846.21 0.88 5. Detailed Engineering Design Cost 124.95 111.56 0.89 6. Construction Supervision Cost 226.45 202.19 0.89 7. Independent Consultant Cost: DED 58.38 52.12 0.89 8. Independent Consultant Cost: CS 137.71 122.96 0.89 9. Project Management Cost 57.93 51.72 0.89 10. Insurance Cost 111.10 89.10 0.80 TOTAL ECONOMIC COST 11,503.35 10,062.43 0.87 Source: JICA Study Team

Table 8.2-2 shows the implementation schedule and yearly initial cost flow.

TABLE 8.2-2 IMPLEMENTATION SCHEDULE AND INITIAL COST (ECONOMIC COST) PER YEAR Economic 2011 2012 2013 2014 Cost 1. Civil Work 8,425.96 2. Repair/Improvement Cost of Phase-1 12.09 3. Existing Utilities Relocation 148.52 4. ROW Acquisition 846.21 5. Detailed Engineering Design 111.56 6. Construction Supervision 202.19 7. Independent Consultant: DED 52.12 8. Independent Consultant: CS 122.96 9. Project Management 51.72 10. Insurance 89.10 Initial Cost (Economic Cost ) 10,062.43 298.4 891.8 4,436.1 4,436.1 Million Pesos Source: JICA Study Team

(2) Operation and Maintenance Cost

The Operation and Maintenance Cost was estimated. The operation cost is for daily road/traffic management of the road facility. The maintenance cost consists of the routine maintenance and the periodic maintenance. The operation and maintenance costs was estimated and shown in Table 8.2-3.

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TABLE 8.2-3 OPERATION AND MAINTENANCE AND OTHER COSTS Million Pesos Item Financial Cost Economic Cost Rate (B/A) (A) (B) 1 Operation and Maintenance Cost 123.06 109.44 0.89 per year 2 Government Agent and 28.74 24.74 0.86 Insurance per year 3 Periodic Maintenance Cost 265.85 233.05 0.88 every 10 years Source: JICA Study Team

8.3 ECONOMIC BENEFIT OF THE PROJECT

Economic benefits are calculated according to multiplied the estimated traffic volumes and unit Vehicle Operating Cost (VOC) /Travel Time Cost (TTC) respectively for each case, and the amount of ‘without’ case minus ‘with’ case is considered as the benefit provided by the project. Economic Evaluation Case Case1: Toll rate 30 Peso for Class 1(Year 2015) Case2: Toll rate 40 Peso for Class 1(Year 2015)

(1) Unit Vehicle Operating Cost (VOC) and Unit Travel Time Cost (TTC)

(a) Unit Vehicle Operating Cost (VOC)

The VOC per unit distance is estimated by type of vehicle being composed of the following components; they are a) fuel cost, b) oil cost, c) tire cost, d) spare parts cost, e) depreciation cost, f) capital opportunity cost and g) crew and overhead cost. The type of vehicles is motor-tricycle, car, van, Jeepney, bus and truck.

The Department of Public Works and Highways (DPWH) has been periodically updating VOC data in order to use as input to the HDM Model for the appraisal of highway development and maintenance projects. There are the detailed data of VOC in 2006 (see Table 8.3-1), therefore, these data are revised and updated in accordance with the recent price indices (in 2011) by type of related goods, exchange rate of local currency. They are summarized in Table 8.3-2.

TABLE 8.3-1 UNIT VOC BY VEHICLE TYPE IN SEPTEMBER 2006 (Pesos per veh-km) 2. Speed 1. Motor- 4. Good 5. Small 6. Large 7. Rigid 8. Rigid 9.Rigid 10. Rigid Passenger 3. Jeepny (km/hour) tricycle Utility Bus Bus Truck 2ax Truck 3ax Truck 4ax Truck 5ax Car 20 2.98 10.56 8.80 10.09 19.66 30.58 20.94 32.30 35.25 37.27 30 2.48 9.09 7.40 8.34 16.65 25.74 17.96 27.71 30.84 32.83 40 2.15 8.02 6.40 7.07 14.47 22.26 15.92 24.66 28.08 30.08 50 2.03 7.47 5.91 6.44 13.36 20.54 15.01 23.48 27.23 29.25 60 2.03 7.21 5.72 6.15 12.83 19.79 14.67 23.31 27.33 29.31 70 2.10 7.13 5.71 6.07 12.62 19.67 14.63 23.71 27.82 29.72 80 2.20 7.16 5.82 6.15 12.59 19.94 14.75 24.37 28.51 30.37 90 2.29 7.25 6.01 6.31 12.64 20.01 14.94 24.44 29.29 31.14 100 2.36 7.36 6.23 6.50 12.72 20.01 15.07 24.44 29.75 31.59 110 2.40 7.46 6.43 6.69 12.79 20.01 15.07 24.44 29.75 31.59 120 2.42 7.54 6.61 6.84 12.81 20.01 15.07 24.44 29.75 31.59 Source: DPWH

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TABLE 8.3-2 UNIT VOC BY VEHICLE TYPE IN 2011 (Pesos per veh-km) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Speed Motorcycle/ Passenger Jeepney Good Small Large Rigid Rigid Rigid Rigid (km/hour) Tricycle Car Utility Bus Bus Truck Truck Truck Truck 2axle 3axle 4axle 5axle 20 4.42 14.46 10.32 13.30 17.42 26.15 32.48 43.45 46.69 49.23 50 2.88 10.23 6.79 8.32 11.47 17.38 21.33 30.05 34.40 36.91 80 3.03 9.67 6.59 7.74 10.89 17.45 19.93 30.10 35.07 37.45 100 3.23 9.86 7.02 8.07 11.11 17.54 20.10 30.16 36.34 38.71 120 3.31 10.04 7.43 8.42 11.23 17.54 20.10 30.16 36.34 38.71 Source: DPWH, JICA Study Team

The VOC saving in whole road network will be calculated according to multiplied the estimated traffic volumes and unit VOC. The unit VOC by type of vehicles will be corresponded to the four (4) vehicle types of estimated traffic volume such as 1) Passenger Car, 2) Jeepney, 3) Large Bus and 4) Truck. The VOC of truck types will be converted by weighted average of vehicle composition. The unit VOC cost by type of vehicles by vehicle speed is shown in Table 8.3-3.

TABLE 8.3-3 UNIT VOC BY FOUR (4) VEHICLE TYPES IN 2011 Peso/km/veh Speed (km/hr) Passenger Car Jeepney Bus Truck 20 14.46 10.32 26.16 37.93 30 13.05 9.14 23.23 34.01 40 11.64 7.97 20.30 30.09 50 10.23 6.79 17.37 26.16 60 10.04 6.73 17.40 25.94 70 9.86 6.66 17.43 25.71 80 9.67 6.59 17.45 25.48 90 9.76 6.81 17.50 25.69 100 9.86 7.02 17.54 25.90 Source: DPWH, JICA Study Team

(b) Unit Travel Time Cost (TTC)

The TTC will be estimated based on the statistics data of average income per employed person per year, economic travel value of passenger during working hours, travel time for business hours and average number of passenger by type of vehicles. The TTC will be estimated based on the following condition (source: the “The Feasibility Study and Implementation Support on the CALA EAST-WEST National Road Project” by Japan International Cooperation Agency in 2006)

i) Travel time of car users and bus passengers is converted to money term using unit value. Travel time values are estimated based on the income level which reflects their productively.

ii) According to the interview survey data, assuming monthly working 175hours, one hour average monthly income for the non-car owner was 29.3 pesos, car owner was 53.2 pesos and truck user was 24.9 pesos.

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iii) Travel time for business purpose can be considered fully worth the time value and travel time by going to work and returning from working place to home is assumed to be worth a half of the time value at work.

iv) The average number of passenger by type of vehicles will be assumed based on the result of survey (source: The Study of Master Plan on High Standard Highway Network Development by JICA in 2010), such as 1) Passenger car: 3.5, 2) Publics: 13.4 and 4) Truck: 2.6. iv) The value of travel time will be converted at the same annual growth rate of the GRDP per capita for 2005-2008 (3.4%).

Table 8.3-4 shows the economic time value of passenger by type of vehicles in 2008. The economic time value was updated by using annual growth rate of the GRDP per capita. The unit TTC by vehicle type in 2011 will be estimated as shown in Table 8.3-5.

TABLE 8.3-4 ECONOMIC TIME VALUE OF PASSENGER IN 2008 BASED ON 2005 DATA Peso/hour/passenger Vehicle Type 2005 2008 Public 29.3 32.4 Private 53.2 58.8 Truck 24.9 27.5 Source: JICA Study Team, National Statistics Office 2002-2008, The Feasibility Study and Implementation Support on the CALA EAST-West National Road Project, 2006, JICA Study

TABLE 8.3-5 UNIT TRAVEL TIME COST BY PCU IN 2011 Peso/hour/veh Vehicle Type 2011 Public 478.0 Private 227.0 All Passenger Car 320.2 Source: JICA Study Team

(2) Estimation of Economic Benefit (VOC and TTC Saving)

Based on the unit VOC by vehicle type by vehicle speed and the total vehicle-km, daily VOC saving by year is estimated. The daily TTC saving by year also is estimated based on the unit TTC by vehicle type and the total vehicle-hour. The economic benefit is shown in Table 8.3-6 and Table 8.3-7.

TABLE 8.3-6 ECONOMIC BENEFIT (CASE 1: TOLL RATE 30 PESO) Economic Benefit (1,000 Peso/day) Year VOC TTC Total 2015 981.0 1,616.5 2,597.5 2020 2,854.7 5,223.1 8,077.8 2030 3,241.3 7,286.2 10,527.5 Source: JICA Study Team

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TABLE 8.3-7 ECONOMIC BENEFIT (CASE 2: TOLL RATE 40 PESO) Economic Benefit (1,000 Peso/day) Year VOC TTC Total 2015 940.6 1,253.3 2,193.9 2020 2,978.0 3,472.8 6,450.7 2030 2,645.3 6,712.1 9,357.4 Source: JICA Study Team

(3) Other Economic Benefits

With the increasing congestion of the existing road, the greater is the likelihood of the occurrence of the accidents due to conflicts between pedestrian and vehicle. It is anticipated that with the project, accidents happening on the ground could be avoided. In this Study, however, benefit from possible reduction of road accident is not considered since there is no acceptable value assigned to traffic accidents in the country.

8.4 RESULTS OF ECONOMIC ANALYSIS

The performance at Table 8.4-1 and Table 8.4-2 of the project based on indicators of economic feasibility is:

CASE1: TOLL RATE 30 PESO EIRR 18.6% B/C 1.35 NPV (Million Peso @ i = 15%) 2,753.3

CASE2: TOLL RATE 40 PESO EIRR 16.6% B/C 1.16 NPV (Million Peso @ i = 15%) 1,248.7

The economic costs and benefits of the project generated a positive NPV and an EIRR that is higher than the government-prescribed hurdle rate (15%). These values indicate that the project is economically viable.

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TABLE 8.4-1 COST-BENEFIT STREAM (CASE 1: TOLL RATE 30 PESO) 8-8

TABLE 8.4-2 COST-BENEFIT STREAM (CASE 2: TOLL RATE 40 PESO)

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8.5 PROJECT SENSITIVITY

The project sensitivity to identified risks is shown in Table 8.5-1 and Table 8.5-2.

TABLE 8.5-1 PROJECT SENSITIVITY (CASE 1: TOLL RATE 30 PESO) NPV B/C EIRR (Million Pesos) Base Case 2,753.3 1.35 18.6 % Cost plus 10% 1,957.1 1.22 17.0 % Cost plus 20% 1,160.9 1.12 16.0 % Benefit less 10% 1,681.8 1.21 16.9 % Benefit less 20% 610.3 1.08 15.5 % Cost plus 10%, Benefit less 10% 885.0 1.10 15.8 % Cost plus 10%, Benefit less 20% -185.9 0.98 14.5 % Cost plus 20%, Benefit less 10% 89.4 1.01 14.8 % Cost plus 20%, Benefit less 20% -982.1 0.90 13.5 % Source: JICA Study Team

The Case-1 results show that the project is able to hurdle the minimum acceptance criteria of EIRR = 15% and NPV = 0 except Cost Plus 10%, Benefit Less 20% Case and Cost Plus 20%, Benefit Less 20% Case.

TABLE 8.5-2 PROJECT SENSITIVITY (CASE 2: TOLL RATE 40 PESO) NPV B/C EIRR (Million Pesos) Base Case 1,248.7 1.16 16.6 % Cost plus 10% 452.5 1.05 15.5 % Cost plus 20% -343.6 0.96 14.6 % Benefit less 10% 327.7 1.04 15.4 % Benefit less 20% -593.4 0.93 14.2 % Cost plus 10%, Benefit less 10% -468.5 0.95 14.4 % Cost plus 10%, Benefit less 20% -1,389.6 0.84 13.2 % Cost plus 20%, Benefit less 10% -1,264,7 0.87 13.5 % Cost plus 20%, Benefit less 20% -2,185.8 0.77 12.4 % Source: JICA Study Team

TheCas-2 results show that the project is able to hurdle the minimum acceptance criteria of EIRR = 15% and NPV = 0 in case of only Cost plus 10% and Benefit less 10%.

If the toll rate changes to 50 pesos (Class 1, Year 2015), traffic impact may reduce as shown in Table 8.5-3. Though 30 and 40 pesos Case is viable, 50 pesos case is not economically viable.

TABLE 8.5-3 PROJECT SENSITIVITY FOR CHANGING TOLL SETTING NPV B/C EIRR (Million Pesos) 30 Pesos (Class 1 in Year 2015) 2,753.3 1.35 18.6 % 40 Pesos (Class 1 in Year 2015) 1,248.7 1.16 16.6 % 50 Pesos (Class 1 in Year 2015) -536.6 0.93 14.4 %

8-10

CHAPTER 9 FINANCIAL ANALYSIS

9.1 PROCEDURE OF FINANCIAL ANALYSIS

The procedure of financial analysis is shown as below. Firstly, the input data for financial analysis is settled. The toll tariff revenue for NAIA Expressway Phase II Project is estimated as shown in chapter 4 as well as the project cost is estimated as shown in chapter 6. For financial analysis, some conditions including the PPP modality are assumed based on the Philippines Government’s policy on the implementation of NAIA Expressway Phase II under discussion, existing toll road PPP projects in the Philippines and so on.

In the next step, the financial viability of NAIA Expressway Phase II is examined based on the estimation and the assumption.

. Data Input  Traffic Volume Forecast  Insurance Cost  Price Escalation  Project Cost  Construction Period  Depreciation  O & M Cost  Operation Period  Taxation

 Variable  Share of financing by Public/Private . Financial Viability (Government Financial Support)  Project IRR  Ratio of Equity and Loan  IRR for SPC  Loan Conditions  Equity IRR  Initial Toll Rate  Toll Rate Adjustment  Taxation

 Variable . Sensitivity Analysis  Toll Tariff Revenue  Financial Viability  Construction, O & M Cost

FIGURE 9.1-1 PROCEDURE OF FINANCIAL ANALYSIS FOR NAIA EXPRESSWAY PHASE II

9-1 9.2 PPP MODALITY STUDIED FOR NAIA EXPRESSWAY

For NAIA Expressway Phase II, the adoption of BTO (Build-Transfer-Operation) scheme with Government Financial Support is planned by the Philippines government. Therefore, the same PPP modality is assumed in this study as well. The diagram on the assumed PPP modality is shown as below.

After the completion of the construction of NAIA Expressway Phase II implemented by the Concessionaire, the ownership of the Phase II facility is transferred to the DPWH. However, the Concessionaire is responsible for the operation and maintenance of NAIA Expressway during the Concession period, and it also can gain revenue with the collection of toll fee from the NAIA Expressway users.

In accordance with the stipulation of the Philippines BOT Law, the government subsidy up to 50% of the project cost is granted to the Concessionaire as financial support by the government.

FIGURE 9.2-1 PPP MODALITY (BTO WITH GOVERNMENT FINANCIAL SUPPORT) FOR NAIA EXPRESSWAY PHASE II

9-2 9.3 PARAMETERS FOR FINANCIAL ANALYSIS

(1) Implementation Schedule The project implementation schedule is assumed based on the tentative plan that is being elaborated by the Philippines government. The Concession Agreement will be signed at the end of 2011 and the construction will be commenced in December 2012 as well as the operation will be commenced in January 2015.

(2) Initial Toll Rate Initial Toll Rate for main section (in 2015 for Class 1) is assumed as follows: Case 1: 30 Pesos / Vehicle Case 2: 40 Pesos / Vehicle

Initial Toll Rate for Terminal 3 section (in 2015 for Class 1) is assumed at 10 Pesos / Vehicle in the both case.

(3) Toll Rate Adjustment and Price Escalation Toll rate adjustment is assumed to be done every 2 years based on the tentative plan by the government. Regarding the toll adjustment rate, two cases is assumed, which consist of Case 1 50% Toll Rate Adjustment (5% increase every 2 years) and Case 2 100% Toll Rate Adjustment (10% increase every 2 years). On the other hand, it is assumed that the Project cost and O&M cost will increase at 5% every year with relation to the increase of CPI.

(4) Funding by Government The government will be responsible for the cost of ROW acquisition and the cost of project management. The government also will shoulder a portion of the construction cost (GFS: Government Financial Support) and one-half of the cost of the Independent Consultant for the Concessionaire. The amount of the GFS in 2011 price is assumed as follows:

Case 1 (Base Case): 4,300.00 Million Pesos In the base case, the share of the government expense against the whole project cost (excluding the ROW acquisition and project management) is assumed to be 41.9%. Case 2: 4,500.00 Million Pesos In the Case 2, the share of the government expense against the whole project cost (excluding the ROW acquisition and project management) is assumed to be 43.8%. Case 3: 5,000.00 Million Pesos In the Case 2, the share of the government expense against the whole project cost (excluding the 9-3 ROW acquisition and project management) is assumed to be 48.6%.

Regarding GFS provision schedule, 2 scenarios are assumed as below.

TABLE 9.3-1 SCENARIOS OF GFS PROVISION SCHEDULE Tranche Amount to Provision schedule be Released Scenario 1: Scenario 2: Base 3 Months Advanced Provision 1st 30% of GFS July 2013 April 2013 (completion of 30% of Construction Works) 2nd 40% of GFS April 2014 January 2014 (completion of 70% of Construction Works) 3rd 30% of GFS December 2014 December 2014 (completion of 100% of Construction Works)

Regarding consideration of GFS provision schedule, the following conditions are assumed.

 The financial closure will be done by the end of 2012.  The Concessionaire will pay sub-contractors fee monthly.  Equity and Loan will be disbursed quarterly up to the amount needed for a consecutive quarter payment. GFS provision will help to reduce the amount of the Concessionaire’s quarterly financing.  Advanced GFS provision will make possible late financing of the Concessionaire. It will enable to reduce interest during construction.  The balance of the final GFS provision after subtracted payment to sub-contractors will be allocated to repayment of loan.

(5) Financing by the Concessionaire Regarding the Concessionaire’s financing, the ratio of the equity and loan is assumed as below.

TABLE 9.3-2 CASE OF RATIO OF EQUITY AND LOAN Equity : Loan Case 1 (Base) 3 : 7 Case 2 2 : 8 Case 3 4 : 6

9-4

Interest rate from domestic commercial bank is assumed at 10%. Repayment period is 10 years will begin after project completion. In case that computed net cash flow is negative in an operating year, the Concessionaire is assumed to cover the shortage to secure its working capital as follows: Scenario 1 (without short-term loan): Utilization of the Concessionaire’s own funds (e.g. additional equity) Scenario 2 (with short-term loan): Utilization of short-term loan (Repayment period is 1 year) The interest rate is assumed at 5% based on the 1-year Treasury Bills in the Philippines.

(6) Non-Operation Costs During the operation period, the Concessionaire will shoulder depreciation cost, interest charges on loan, local business taxes (2% of gross revenue) and corporate income taxes (30% of taxable income) as non-operating cost. The depreciation cost is calculated using the straight line method. The Concessionaire will not own the facilities during the operation period under BTO scheme. Therefore, it is assumed that the value of depreciable assets equivalent to the Concessionaire’s portion of the project cost will be depreciated during the operation period (32 years). Regarding tax exemption, 2 scenarios are assumed as follows. Scenario 1 : With 7 years Corporate Income Tax Holiday It will be granted by Bureau Of Investment in the Philippines from the commencement of operation in accordance with the Philippines law and regulation. Scenario 2 : Without Tax Holiday However, Net Operation Loss Carry-over will still be applicable.

Basic parameters and their threshold value required for financial analysis are shown in the following table.

9-5 TABLE 9.3-3 REQUISITE PARAMETERS FOR FINANCIAL ANALYSIS OF NAIA EXPRESSWAY Item Assumption Base year for financial analysis ･2011 Implementation/Operation Period Beginning year of the ･2011 (the date of signing of the Concession Agreement is the end of 2011) implementation Concession Period ･35 years from the signing of the Concession Agreement Land Acquisition Period ･12 months (from Jul 2011 to Jun 2012) Detailed Engineering Design ･10 months (from Jan 2012 to Oct 2012) (DED) Period Construction Period ･24 months (from Dec 2012 to Nov 2014) Beginning year of the ･January 2015 operation Operation Period ･32 years (up to the end of Dec 2046) Toll Tariff Revenue Initial Toll Rate Case 1: 30 Pesos / Vehicle for the main section in the beginning year of the Case 2: 40 Pesos / Vehicle for the main section operation (Class 1) ･10 Pesos / Vehicle for the Terminal 3 section in the both cases Case 1: + 5% / Every 2 years Toll Rate Adjustment Case 2: + 10% / Every 2 years Cost Estimate Project Cost (in 2011 prices) ･Physical Contingency is included. 947.76 Million Pesos (i) Land Acquisition Cost ･The government is fully responsible (ii) Main Civil Work Cost 9,655.85 Million Pesos Case 1 (Base Case): 4,300.00 Million Pesos (excluding price contingency) ･The government shoulders 45% of the Main Civil Work Cost (Initial Assumption)

(iii) Government Financial Case 2: 4,500.00 Million Pesos (excluding price contingency) Support (GFS) for Main ･The government shoulders 47% of the Main Civil Work Cost (Initial Civil Work Assumption)

Case 3: 5,000.00 Million Pesos (excluding price contingency) ･The government shoulders 52% of the Main Civil Work Cost (Initial Assumption) Scenario 1 (Base): 1st (July 2013), 2nd (April 2014), 3rd (December 2014)

Scenario 2 ( 3 months advanced): 1st (April 2013), 2nd (January 2014), 3rd (iv) GFS provision schedule (December 2014)

･1st provision is 30% of GFS, 2nd provision is 40% of GFS, 3rd provision is 30% of GFS. (iv) Repair/Improvement 13.80 Million Pesos Cost of Phase I 169.42 Million Pesos (v) Utility Relocation Cost ･Utility Company is fully responsible (vi) DED Cost 124.95 Million Pesos (vii) Construction 226.45 Million Pesos Supervision Cost

9-6 Item Assumption (iix) Independent Consultant 58.38 Million Pesos Cost for DED Stage ･one-half of the cost provided by the government (ix)Independent Consultant 137.71 Million Pesos Cost for Construction Stage ･one-half of the cost provided by the government 57.93 Million Pesos (x)Project Management Cost ･The government is fully responsible (x)Insurance Cost Total 111.11 Million Pesos Base Case: 11,503.35 Million Pesos Ground Total ･The government shoulders around 41.9% of the Project Cost, excluding the ROW acquisition and project management O & M Cost (Unit: Million Pesos at March 2011 Prices) (i) Operating Cost 136.00 Million Pesos / Year (ii) Routine Maintenance 6.26 Million Pesos / Year Cost

(iii) Periodic Maintenance 265.85 Million Pesos/ every very 10 years Cost ･Periodic maintenance can be done in 2 years (10th and 11th year, and so on.)

18.52 Million Pesos / Year (vi) Government Agent Cost ･The government is fully responsible Other Cost items ･Annual 5.0% Price Escalation is applied to Project cost as Price Contingency. Price Escalation ･It also is applied to O&M Cost and Annual Insurance Cost. Annual Insurance Fee ･10.21 Million Pesos / Year Loan Management Fee ･0.3% of Loan Financing Structure of the Concessionaire in Capital Investment ･Share of Project Cost excluded the government fund (e.g. ROW acquisition cost) shown as below. Equity Case 1: 30% Case 2: 20% Case 3: 40% ･Share of Project Cost excluded GOP’s fund shown as below. Case 1: 70% Debt Case 2: 80%

Case 3: 60% ･10% Loan Interest Rate ･It is assumed that commercial bank loan is utilized. Loan Tenure Grace Period ･2 years (during Construction Period)

Loan Repayment Period ･12 years from financial closure Repayment Structure ･Even annuity basis (Annual loan amortization is done at constant amount) Financing of the Concessionaire during the Operation Period Scenario 1 (without short-term loan): Utilization of the Concessionaire’s own Securing Working Capital funds (e.g. additional equity) (in net negative cash flow during Scenario 2 (with short-term loan): Utilization of short-term loan (Repayment the operation period) period is 1 year)

Short-term loan Interest Rate ･5%

Loan Repayment Period ･1 year Depreciation

9-7 Item Assumption ･Based on the following formula.

Annual depreciation value = PPC / T

Depreciation Methodology PPC: Private sector share of the Project Cost including Loan Management Fee and Interest during the Construction Period T : Operation Period (32 years) (･The Concessionaire doesn’t own the facility due to BTO scheme. Therefore, such formula above is assumed.) Taxation ･[Revenue - O&M cost - Insurance cost - Annual deprecation cost - Interest Corporate Tax payment – Local Government Tax] x tax rate (30%) VAT ･None Local Government Tax ･2% of Gross Revenue Property Tax ･None due to BTO scheme Scenario 1: With Corporate Income Tax Holiday ･7 years from the commencement of the operation (in accordance with Executive Order No. 226, The Omnibus Investments Code of 1987) Tax Exemption Scenario 2: Without Corporate Income Tax Holiday ･However, Net Operating Loss Carry Over will be applicable. The Net Operating Loss of the Concessionaire shall be carried over as a deduction from gross income for the next 3 taxable years.

9-8 IMPLEMENTATION SCHEDULE 2011 2012 2013 2014 2015 1234567891011121 23456789101112123456789101112123456789101112123456789101112

Approval of the Project by NEDA-ICC

Advertisement, Bid Preparation, Bid Submission

Bid Evaluation, Contract Negotiation, Signing of

Contract

Parcellary Survey

ROW ( Within 6 months from the contract date ) ROW Acquisition

9-9 GFS Trust Account opened Financial Closure: Within 6 months from the contract date Financial Arrangement

10 Months Approval of D/D (0.5 month) Detailed Engineering Design

24 Months Issurance of Certificate of Finanl Completion (x months) Construction 1st Released 30% of GFS 2nd Released 40% of GFS 3rd Released 30% of GFS

Effective of TOC Operation and Maintenance Appointment of IC

Concession Period: 35 years from the concession agreement.

FIGURE 9.3-1 IMPLEMENTATION SCHEDULE

9.4 INDICATOR FOR FINANCIAL VIABILITY The following 3 kinds of Internal Rate of Return (IRR) as shown below are set for the examination of financial viability of NAIA Expressway Phase II.

Project IRR: It is calculated with toll tariff revenue and the whole project cost including ROW acquisition etc actually funded by the government. It is the basic indicator for financial viability. IRR for SPC: It means an internal rate of return for private sector (SPC). Equity IRR: It means an internal rate of return against equity investments for the project. (It means an IRR for Equity investor.)

Each IRR is the rate which satisfies the following formula:

Project IRR

  CIR iii  0  i Project 1(  Project IRR) Whereby: R i : Revenue from Toll Tariff at year i I i ; Whole invested project costs at year i C i : Whole operating costs at year i

IRR for SPC

 CIR '' iii  0  i  IRR1( SPC)for Whereby: I' i : Invested capital costs by SPC (the Concessionaire) at year i C' i : Operating costs paid by SPC at year i

Equity IRR

 ED ii  0  i IRR )Equity 1(  IRR)Equity Whereby: D i : Dividend for investor at year i (= Ri - I'i - C''i) * C''i is including loan amortization E i : Equity investment from investor

9-10

WACC is calculated from the weighted average of interest-bearing debt cost and equity cost, and represents financing cost for privates sector as criteria of Project IRR and IRR for SPC. Calculation formula of WACC is stated as below.

E D ErWACC )(  Dr )(   ED )(  ED )(

Whereby: Er :)( cost of Equity (Return on Equity) Dr :)( cost of debt (interest rate) E : total value of equity D : total value of debt

WACC is 11.5% in case of the below condition on the financing by private sector. Hurdle rate to evaluate Equity IRR is assumed to be 15%.

TABLE 9.4-1 CONDITION FOR THE WACC CALCULATION Equity Loan -share of equity is 30% -share of loan is 70% -cost of Equity (Return on -cost of debt (interest rate) is Equity) is 15% 10%

TABLE 9.4-2 CRITERIA FOR FINANCIAL ANALYSIS OF NAIA EXPRESSWAY PHASE II WACC 11.5% Hurdle Rate of Equity IRR 15.0%

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9.5 RESULTS OF FINANCIAL ANALYSIS FOR NAIA EXPRESSWAY

The Results of financial viability for NAIA Expressway Phase II on main parameters prescribed in section 9.6 are shown as below.

9.5.1 VARIATION OF GFS, INITIAL TOLL RATE AND TOLL RATE ADJUSTMENT

The Results of financial viability for cases of variation of GFS, Initial Toll Rate and Toll Rate Adjustment are shown in Table 9.5.1-1. IRRs for SPC are viable except for the Case 1 with Initial Toll Rate 30 Pesos / vehicle, 50% Toll Rate adjustment (5% increase every 2 year). Equity IRRs are viable only in case of 40 Pesos / vehicle, 100% Toll Rate adjustment (10% increase every 2 year). TABLE 9.5.1 RESULTS OF FINANCIAL ANALYSIS (GFS, INITIAL TOLL RATE AND TOLL RATE ADJUSTMENT) Yellow; IRR for SPC over 11.5%, Equity IRR over 15% Toll Rate Project IRR for GFS Initial Toll Rate Equity IRR Adjustment IRR SPC Case 1: 50% 4,300 Million (5% increase 6.07% 10.31% 10.53% Pesos (42% of 30 Pesos / Project Cost) every 2 years) Vehicle 100% (10% increase 8.42% 12.78% 13.99% every 2 years) 40 Pesos / 50% 7.19% 11.72% 12.36% Vehicle 100% 9.27% 13.87% 15.30% Case 2: 30 Pesos / 50% 6.07% 10.56% 10.81% 4,500 Million Pesos Vehicle 100% 8.42% 13.04% 14.25% (44% of Project 40 Pesos / 50% 7.19% 11.99% 12.64% Cost) Vehicle 100% 9.27% 14.14% 15.57% Case 3: 30 Pesos / 50% 6.07% 11.25% 11.56% 5,000 Million Pesos Vehicle 100% 8.42% 13.74% 14.94% (49% of Project 40 Pesos / 50% 7.19% 12.72% 13.41% Cost) Vehicle 100% 9.27% 14.86% 16.37% All cases with utilization of Short-Term Loan, 30% Equity / 70% Loan Ratio, GFS provision base schedule, without considering of Corporate Income Tax Holiday (but with consideration of Net Operating Loss Carry-Over). GFS is estimated at 2011 price.

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9.5.2 With/Without Short-term loan

The Results for selected cases from the studied ones in Section 9.5.1 are shown in Table 9.5.2-1. The IRR for SPC and the Equity IRR are decreased without short-term loan, under the assumption on short-term loan for this study (Interest Rate is 5%, Repayment Period is 1 year).

TABLE 9.5.2-1 RESULTS OF FINANCIAL ANALYSIS (WITH/WITHOUT SHORT-TERM LOAN) Yellow; IRR for SPC over 11.5%, Equity IRR over 15% Initial Toll Rate GFS Short-term Loan IRR for SPC Equity IRR Toll Rate Adjustment Case 1: 40 Pesos / 100% With 13.87% 15.30% 4,300 Vehicle Million Pesos Without 13.84% 14.73% Case 2: 40 Pesos / 100% With 14.14% 15.57% 4,500 Vehicle Million Pesos Without 14.12% 15.10% Case 3: 30 Pesos / 100% With 13.74% 14.94% 5,000 Vehicle Million Pesos Without 13.71% 14.47% 40 Pesos / 100% With 14.86% 16.37% Vehicle Without 14.84% 16.09%

All cases with 30% Equity / 70% Loan Ratio, GFS provision base schedule, without considering of Corporate Income Tax Holiday (but with consideration of Net Operating Loss Carry-Over).

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9.5.3 Variation of the Ratio of Equity and Loan

The Results for the selected cases are shown in Table 9.5.3-1. In case of Equity ratio decrease, the IRR for SPC and the Equity IRR are improved.

TABLE 9.5.3-1 RESULTS OF FINANCIAL ANALYSIS (RATIO OF EQUITY AND LOAN) Yellow; IRR for SPC over WACC, Equity IRR over 15% WACC is; 11.5% in case of 3:7, 11.0% in case of 2:7, 12.0% in case of 4:7 GFS Initial Toll Toll Rate Ratio IRR for Equity IRR Rate Adjustment (Equity/Loan) SPC Case 1: 40 Pesos / 100% 3:7 13.87% 15.30% GFS 4,300 Vehicle Million Pesos 2:8 13.98% 16.76% 4:6 13.76% 14.51% Case 2: 40 Pesos / 100% 3:7 14.14% 15.57% GFS 4,500 Vehicle Million Pesos 2:8 14.25% 17.05% 4:6 14.02% 14.81% Case 3: 30 Pesos / 100% 3:7 13.74% 14.94% GFS 5,000 Vehicle Million Pesos 2:8 13.84% 16.33% 4:6 13.62% 14.21% 40 Pesos / 100% 3:7 14.86% 16.37% Vehicle 2:8 14.99% 17.82% 4:6 14.73% 15.64% All cases with utilization of Short-Term Loan, GFS provision base schedule, without considering of Corporate Income Tax Holiday (but with consideration of Net Operating Loss Carry-Over).

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9.5.4 Consideration of GFS Provision Schedule

The Results of the selected cases are shown in Table 9.5.4-1. Advanced provision of GFS will make possible late financing of the Concessionaire during construction period. Therefore, the Concessionaire is able to reduce interest during construction. In case of 3 Months Advanced provision, the Equity IRR is improved a little.

TABLE 9.5.4-1 RESULTS OF FINANCIAL ANALYSIS (GFS PROVISION SCHEDULE) Yellow; IRR for SPC over WACC, Equity IRR over 15% Base Schedule 3 Months Advanced Initial Toll Toll Rate Ratio Rate Adjustment (Equity/Loan) IRR for Equity IRR for Equity SPC IRR SPC IRR Case 1: 40 Pesos / 100% 3:7 13.87% 15.30% 13.86% 15.35% 4,300 Vehicle Million 2:8 13.98% 16.76% 13.97% 16.82% Pesos 4:6 13.76% 14.51% 13.74% 14.56% Case 2: 40 Pesos / 100% 3:7 14.14% 15.57% 14.13% 15.63% 4,500 Vehicle Million 2:8 14.25% 17.05% 14.24% 17.11% Pesos 4:6 14.02% 14.81% 14.01% 14.87% Case 3: 30 Pesos / 100% 3:7 13.74% 14.94% 13.72% 15.00% 5,000 Vehicle Million 2:8 13.84% 16.33% 13.82% 16.41% Pesos 4:6 13.62% 14.21% 13.61% 14.28% 40 Pesos / 100% 3:7 14.86% 16.37% 14.84% 16.45% Vehicle 2:8 14.99% 17.82% 14.97% 17.90% 4:6 14.73% 15.64% 14.72% 15.72% All cases with utilization of Short-Term Loan, without considering of Corporate Income Tax Holiday (but with consideration of Net Operating Loss Carry-Over).

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9.5.5 Consideration of corporate income tax holiday

The Results of the selected cases are shown in Table 9.5.5-1. IRR for SPC and Equity IRR are improved with 7 years Corporate Income Tax Holiday, but they raise only a little. Estimated taxable income of the Concessionaire in this study is negative for a few years less than 7 years during the initial operation period in spite of the Income Tax Holiday. Therefore, the Concessionaire need not pay corporate income tax during such period even if Income Tax Holiday is not granted.

TABLE 9.5.5-1 RESULTS OF FINANCIAL ANALYSIS (WITH/WITHOUT CORPORATE INCOME TAX HOLIDAY) Yellow; IRR for SPC over WACC, Equity IRR over 15% GFS Without Tax Holiday With Tax Holiday Initial Toll Rate Equity GFS Provision Toll Rate Adjustment /Loan IRR for Equity IRR for Equity Schedule SPC IRR SPC IRR Case 1: Base 40 Pesos / 100% 3:7 13.87% 15.30% 14.03% 15.47% 4,300 schedule: Vehicle Million 2:8 13.98% 16.76% 14.07% 16.86% Pesos 4:6 13.76% 14.51% 14.02% 14.88% Case 2: Base 40 Pesos / 100% 3:7 14.14% 15.57% 14.33% 15.80% 4,500 schedule Vehicle Million 2:8 14.25% 17.05% 14.36% 17.18% Pesos 4:6 14.02% 14.81% 14.32% 15.23% Case 3: 3 months 30 Pesos / 100% 3:7 13.72% 15.00% 13.87% 15.17% 5,000 advanced Vehicle Million 2:8 13.82% 16.41% 13.91% 16.52% Pesos 4:6 13.61% 14.28% 13.86% 14.62% Base 40 Pesos / 100% 3:7 14.86% 16.37% 15.15% 16.82% schedule Vehicle 2:8 14.99% 17.82% 15.17% 18.03% 4:6 14.73% 15.64% 15.14% 16.23% All cases with utilization of Short-Term Loan

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9.6 SENSITIVITY ANALYSIS FOR THE REVENUE AND PROJECT COST (CIVIL WORKS COST AND O&M COST)

The cases of sensitivity analysis of IRR for SPC and Equity IRR on the revenue and project cost (civil works cost and O&M cost) are as follow.

TABLE 9.6-1 CASE FOR SENSITIVITY ANALYSIS ON REVENUE AND PROJECT COST

- Revenue from toll tariff Without considering TAX Holiday Case I -10% With considering TAX Holiday

- Civil works cost and O&M Without considering TAX Holiday Case II cost +10% With considering TAX Holiday

- Revenue from toll tariff Without considering TAX Holiday Case III -10%, and Civil works cost and O&M cost +10% With considering TAX Holiday All cases with short-term loan, equity(30%) and loan (70%)

Results of the above cases are shown in Table 9.6-2 and Table 9.6-3. IRR for SPC is still over 11.5% except the case III with 30 Pesos/Vehicle. However, Equity IRR is under 15.0% except the case I with GFS 5,000 Million PHP, 40 Pesos/Vehicle, 100% Toll rate adjustment, considering Tax Holiday.

9-17

TABLE 9.6-2 RESULTS OF IRR SENSITVITY ANALYSIS FOR REVENUE AND PROJECT COST (CIVIL WORKS COST AND O&M COST) WITHOUT CONSIDERATION OF TAX HOLIDAY Yellow; IRR for SPC over WACC, Equity IRR over 15% Case Sensitivity Analysis Civil GFS Initial Toll Rate works & IRR for SPC Equity IRR GFS provision Revenue Toll Rate Adjustment O&M Schedule Cost GFS 0% 0% 13.87% 15.30% 4,300 provision 40 Pesos -10% 0% 12.85% -1.02% 14.11% -1.19% Million 100% Base /Vehicle Pesos 0% +10% 12.56% -1.31% 13.82% -1.48% Schedule -10% +10% 11.58% -2.29% 12.67% -2.63% GFS 0% 0% 14.14% 15.57% 4,500 provision 40 Pesos -10% 0% 13.11% -1.03% 14.36% -1.21% Million 100% Base /Vehicle Pesos 0% +10% 12.77% -1.37% 14.05% -1.52% Schedule -10% +10% 11.79% -2.35% 12.88% -2.69% 0% 0% 13.72% 15.00% 3 months advanced 30 Pesos -10% 0% 12.68% -1.04% 13.80% -1.20% 100% GFS /Vehicle 0% +10% 12.26% -1.46% 13.40% -1.60% provision 5,000 -10% +10% 11.29% -2.43% 12.24% -2.76% Million 0% 0% 14.86% 16.37% Pesos GFS provision 40 Pesos -10% 0% 13.79% -1.07% 15.04% -1.33% 100% Base /Vehicle 0% +10% 13.35% -1.51% 14.63% -1.74% Schedule -10% +10% 12.35% -2.51% 13.46% -2.91%

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TABLE 9.6-3 RESULTS OF IRR SENSITVITY ANALYSIS FOR REVENUE AND PROJECT COST (CIVIL WORKS COST AND O&M COST) WITH CONSIDERATION OF TAX HOLIDAY Yellow; IRR for SPC over WACC, Equity IRR over 15% Case Sensitivity Analysis Civil GFS Initial Toll Rate works & IRR for SPC Equity IRR GFS provision Toll Revenue Adjustment O&M Schedule Rate Cost GFS 0% 0% 14.03% 15.47% 4,300 provision 40 Pesos -10% 0% 12.93% -1.10% 14.18% -1.29% Million 100% Base /Vehicle Pesos 0% +10% 12.61% -1.42% 13.88% -1.59% Schedule -10% +10% 11.60% -2.43% 12.68% -2.79% GFS 0% 0% 14.33% 15.80% 4,500 provision 40 Pesos -10% 0% 13.20% -1.13% 14.45% -1.35% Million 100% Base /Vehicle Pesos 0% +10% 12.84% -1.49% 14.12% -1.68% Schedule -10% +10% 11.81% -2.52% 12.90% -2.90% 0% 0% 13.87% 15.17% 3 months advanced 30 Pesos -10% 0% 12.75% -1.12% 13.87% -1.30% 100% GFS /Vehicle 0% +10% 12.30% -1.57% 13.44% -1.73% provision 5,000 -10% +10% 11.29% -2.58% 12.24% -2.93% Million 0% 0% 15.15% 16.82% Pesos GFS provision 40 Pesos -10% 0% 13.94% -1.21% 15.21% -1.61% 100% Base /Vehicle 0% +10% 13.46% -1.69% 14.75% -2.07% Schedule -10% +10% 12.38% -2.77% 13.49% -3.33%

The additional cases of sensitivity analysis of IRR for SPC and Equity IRR on the revenue and project cost (civil works cost and O&M cost) are as follow. The base cases show the highest value of IRR of SPC and Equity IRR in prescribed analysis (Section 9.5).

Additional case of sensitivity analysis on the revenue and project cost  Amount of GFS: 5,000 Million Pesos  GFS provision schedule: Base  Initial Toll Rate: 40 Pesos/vehicle  Toll Rate Adjustment: 100%  Tax Holiday: with case and without case  Ratio of Equity and Loan: 3:7, 2;8, 4:6

Results of the above cases are shown in Table 9.6-4. Equity IRR is still viable in case of Case I (toll revenue -10%) or Case II (project cost +10%) under equity ratio of 20%. However, is is not viable in case of Case III (the toll revenue -10% and project cost +10%).

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TABLE 9.6-4 RESULTS OF IRR SENSITVITY ANALYSIS FOR REVENUE AND PROJECT COST (CIVIL WORKS COST AND O&M COST) IN CASE OF GFS OF 5,000 MILLION PESOS, 40 PESOS/VEHICLE AND 100% TOLL RATE ADJUSTMENT Yellow; IRR for SPC over WACC, Equity IRR over 15% Case Sensitivity Analysis Tax Ratio Civil IRR for SPC Equity IRR Holiday (Equity : Revenue works & Loan) O&M Cost Case 3: Without 0% 0% 14.86% 16.37% GFS 5,000 Million Tax -10% 0% 13.79% -1.07% 15.04% -1.33% 3:7 Pesos40 Pesos / Holiday 0% 10% 13.35% -1.51% 14.63% -1.74% Vehicle100% -10% 10% 12.35% -2.51% 13.46% -2.91% 0% 0% 14.99% 17.82% -10% 0% 13.91% -1.08% 16.46% -1.36% 2:8 0% 10% 13.46% -1.53% 16.03% -1.79% -10% 10% 12.43% -2.55% 14.73% -3.09% 0% 0% 14.73% 15.64% -10% 0% 13.68% -1.05% 14.32% -1.33% 4:6 0% 10% 13.25% -1.48% 13.84% -1.81% -10% 10% 12.24% -2.49% 12.67% -2.98% With 0% 0% 15.15% 16.82% Tax -10% 0% 13.94% -1.21% 15.21% -1.61% 3:7 Holiday 0% 10% 13.46% -1.69% 14.75% -2.07% -10% 10% 12.38% -2.77% 13.49% -3.33% 0% 0% 15.17% 18.03% -10% 0% 13.99% -1.18% 16.55% -1.48% 2:8 0% 10% 13.51% -1.66% 16.09% -1.94% -10% 10% 12.44% -2.73% 14.74% -3.29% 0% 0% 15.14% 16.23% -10% 0% 13.93% -1.21% 14.66% -1.57% 4:6 0% 10% 13.44% -1.70% 14.09% -2.14% -10% 10% 12.34% -2.80% 12.76% -3.47% All cases with GFS provision Base Schedule, short-term loan

9-20 CHAPTER 10 PROJECT EFFECTS

10.1 INTRODUCTION

In order determine the impact of the project, improvement to the transportation’s efficiency is measured. Other expected benefits that might be derived from the project however difficult to quantify were also presented.

To achieve the first goal, traffic assignment of (i) without the project case and (ii) with the project case was carried out and corresponding outputs were compared.

10.2 QUANTIFIABLE EFFECTS

a. Comparison of Average Travel Time and Travel Speed of At-grade Road and Expressway

One of the benefits that can be derived by motorists from NAIA Expressway is the reduction of travel time and improvement of travel speed. The figure below shows the compared route between ordinary road and expressway.

Skyway / SLEX / Skyway Roxas Boulevard Terminal 3

Terminal 2

Terminal 1

L E G E N D Manila-Cavite Coatal Road Coatal Manila-Cavite Route 1 Route 2

FIGURE 10.2-1 LOCATION OF COMPARED SECTIONS

From Figure 10.2-2 (Route 1), the following were observed:  During peak period, it would take 36.7 minutes (5:00 PM) to travel from SLEX to Roxas Boulevard and travel speed is about 9 km/hr. On the opposite direction, it would take around 25.6 minutes (2PM).  If NAIA expressway is built expected travel time is just 7.5 minutes (without stop time at

10-1 toll both) from Roxas Boulevard to Skyway. The travel speed is about 45 km/hr for the entire 5.6 km expressway stretch.

40.0 36.7 35.0 SLEX to Roxas 30.0 Blvd. 25.6 25.0 Roxas Blvd. to SLEX 20.0

15.0 Time (Minutes) 10.0 11.4 7.5 minutes Expressway's Travel Time 5.0

0.0 7:00 8:00 9:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00

10:00 11:00 12:00 Time

FIGURE 10.2-2 TRAVEL TIME FROM ROXAS BLVD. TO SLEX (ROUTE 1)

From Figure 10.2-3 (Route 2), the following were observed  From SLEX exit to NAIA Road (at the location of Off-ramp for Terminal 1) using ordinary road, it would take almost 40 minutes to traverse the entire section.  If expressway is built, travel time is about 8.0 minutes (without the stop time at toll both) which means motorists will save about 32 minutes during this period.  From NAIA Road (at the location of On-ramp for Terminal 1 and 2) to SLEX using ordinary road, it would take 21.7 minutes (5:00PM) to travel the entire section.  If expressway is used, travel time is around 6.9 minutes (without the stop time at toll both). Motorists will save around 14 minutes during this peak hour.

45.0

40.0 39.8 SLEX to NAIA Road (Terminal 1) 35.0

30.0

25.0 21.7 NAIA Road/Ninoy 20.0 Aquino Jct. to SLEX

Time (Minutes) 15.0 SLEX to Off-ramp 10.0 (8.0 min) at Termina 1 Terminal 1 & 2 5.0 (6.9 min) On-ramp to SLEX 0.0 7:00 8:00 9:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 10:00 11:00 12:00 Time Note: SLEX to Off-ramp has higher travel time (8 minutes) than SLEX to Roxas (6.9 minutes) due to long down-ramp (1.18 km) which only have 35 km/hr allowable travel speed FIGURE 10.2-3 TRAVEL TIME FROM SLEX TO TERMINAL 1 AND 2 (ROUTE 2)

Figure 10.2-4 shows the recorded average travel time at Route 1 and Route 2 in comparison to the expected average travel time using the NAIA expressway. The difference between Route 1 and Expressway is 14.9 minutes and between Route 2 and Expressway, the difference is 11.1 minutes. This difference is quite big and when this savings in travel time (vehicle hour) is multiplied to the total number of vehicles using the road, this number become very significant.

10-2 Reduced vehicle hour will contribute to improvement of environment.

For travel speed, the average travel speed using ordinary road in Route 1 is about 17 km/hr while expressway’s travel speed is between 40 to 45 km/hr. Likewise, average travel speed using ordinary road in Route 2 is 21.4 minutes which is still lower that the expected travel speed of vehicles using the expressway. This means that travel speed for Route 1 will improve by about 11 km/hr and travel speed for Route 2 will improve by about 23 km/hr using expressway. See Figure 10.2-4.

25 20 18.6 22.4 18 20 14.9 min 16 11.1 min 14 15 12 10 7.5 Minutes 10 Minutes 8 7.5 6 5 4 2 0 0 Route 1 Expressw ay Route 2 Expressw ay FIGURE 10.2-4 COMPARISON OF AVERAGE TRAVEL TIME BETWEEN ORDINARY ROAD AND EXPRESSWAY

50 50 45 45 45 45 40 40 Up 35 Up 35 30 30 25 25 21.4 Km/hr 20 17.6 Km/hr 20 15 15 10 10 5 5 0 0 Route 1 Expressw ay Route 2 Expressw ay

FIGURE 10.2-5 COMPARISON OF AVERAGE TRAVEL SPEED BETWEEN ORDINARY ROAD AND EXPRESSWAY

b. Vehicle Travel Hour

The savings in vehicle travel hour which is estimated by traffic assignment is presented in Figure 10.2-6. If NAIA expressway is constructed, around 7,245 vehicle-hour will be saved in 2015. This number increases to about 24,319 in 2020 and about 28,708 in 2030. Saving in vehicle-hour will help in improvement of environment.

10-3 35,000 28,708 30,000 24,319 25,000

20,000

15,000 Vehicles-hr 10,000 7,245

5,000

0 2015 2020 2030 Year FIGURE 10.2-6 SAVINGS IN VEHICLE TRAVEL HOUR/DAY (WITH PROJECT – WITHOUT PROJECT) c. Reduction of Traffic Volume on At-grade road

Construction of new road is sure to increase the capacity of the road network in handling traffic. If NAIA expressway is constructed, some of the traffic handled by ordinary road will be diverted to the expressway. This is particularly true to time-sensitive motorists who want to get to their destination as early as possible. Table 10.2-1 shows the volume of traffic in the ordinary road if the expressway is constructed or not.

TABLE 10.2-1 COMPARISON OF TRAFFIC VOLUME (WITH AND WITHOUT PROJECT) AT THE ORDINARY ROAD Unit: Vehicle/day 2015 Road With Project (a) Without Project (b) Difference (b)-(a) NAIA Road (MIA Road) 61,200 73,200 12,000 Domestic Road 30,300 34,600 4,300 Andrew's Avenue (near Aurora Road) 46,300 51,100 4,800 Andrew's Avenue (near Terminal 3) 46,400 49,400 3,000 Sales Road 55,500 53,300 (2,200) d. Average Travel Speed of At-grade road

The average travel time to cross the entire stretch (Roxas Boulevard to SLEX) is estimated based on the travel time survey carried out by the Study Team. In 2015, the travel time during peak hour (5PM) without construction of NAIA expressway will deteriorate to 42.4 minutes (36.7 min in 2011) as shown in Figure 10.2-7. However, if expressway is built, travel time will show improvement at 30.1 minutes.

10-4 45.0 42.4 40.0 35.0 30.1 30.0 25.0 20.0 Minutes 15.0 10.0 5.0 0.0 Without Project With Project

FIGURE 10.2-7 PEAK HOUR TRAVEL TIME IN 2015 (ROXAS TO SLEX)

e. Vehicle Travel Distance

Vehicle travel distance per day is shown in Table 10.2-2. It can be seen in the table that in terms of vehicle travel distance, the impact of the project is very minimal since it is a very short expressway project. TABLE 10.2-2 VEHICLE TRAVEL DISTANCE Unite: 1,000 veh-km/day 2015 2020 2030 With Project (a) 107,378 134,208 174,337 Without Project (b) 107,323 134,297 174,349 (b)-(a) -56 89 11 Ratio = (b)/(a) 1.0 1.0 1.0

10.3 UNQUANTIFIABLE EFFECTS

In addition to improvement of transport efficiency and direct economic impacts, the following positive impacts are expected to be generated from the NAIA Expressway.

a. Contributes to Formation of Expressway Network One of the serious constrains of the existing expressways in the country is the lack of network formation which would provide seamless linkages among the expressways. NAIA Expressway can contribute in the formation of expressway network by linking Skyway to Cavite Coastal Road Expressway.

b. Contributes to Economic Development Interview results to manufacturing industries located inside the economic zones in Cavite mentioned that one of the problems affecting their business operation is the heavy traffic congestion particularly roads connecting to ports and airports. Construction of NAIA Expressway will remove one of the problems mentioned by industry players.

c. Contributes to Promotion of Tourism Industry Upon exiting from airport’s terminal, tourists of the country are exposed to the chaotic transportation situation of the country. Travel time survey indicated that during peak hours, it took more than 21-minutes to reach SLEX from Terminal 1 and 2 and it took almost 40-minutes for motorists moving in opposite direction. Travel speed is between 8 to 15 km/hr.

10-5

This level of congestion leaves many tourists of the country frustrated and creates a negative impression that will discourage them to promote the country to their friends and associates or to return back in the future. Construction of NAIA Expressway although will not totally erase this problem is expected to lessen this negative impression. d. Contributes to Social Development Large scale construction work will need large number of labour forces. Jobs created from this project will help reduce the number of unemployed workers. And during operation and maintenance stage, long term or stable jobs will be generated which would help uplift people’s lives. e. Contributes to Affect Disaster Response During national emergency causes by disasters, transportation hubs like ports and airports are very critical facility to realize swift movement of people and goods. The proposed NAIA Expressway will be constructed taking into account ability to withstand disaster. When disaster struck in distant places, the NAIA Expressway will form part of Skyway/SLEX and Coastal Road Expressway that will feed the airport to affect emergency response. f. Contributes to Growth of Construction Industry Project of this scale will contribute to the growth of construction industry in the country. Constant availability of jobs will improve their financial conditions which would allow them to invest more for technology innovation, employment of regular engineers, and capacity development of employees. g. Improvement of Environment along Existing Roads A large volume of traffic will be diverted to the new expressway from the existing roads, thus traffic load on existing roads will be reduced, resulting in improvement of environment along existing roads.

10-6 CHAPTER 11 PREPARATION OF BID DOCUMENTS

11.1 RELATED LAWS AND REGULATIONS Related laws and regulations for PPP projects are shown in Table 11.1-1. The Project will be implemented under the amended BOT Law and its Implementing Rules and Regulations (R.A. 7718). In the past, the following three PPP projects were bidded under the amended BOT Law;  STAR  TPLEX  Daang Hari – SLEX Link Road

TABLE 11.1-1 PPP RELATED LAWS AND REGULATIONS Decrees/Orders Main Subject Outlines Date RA No. 7718 Amendment of BOT  Amended RA No. 6957 by, among others, Law and its - Allowing more variants of BOT scheme 5th May, 1994 Implementing Rules - Recognizing the need of private investors and Regulations for rates of return reflecting market (IRR) conditions - Authorizing government support for BOT projects - Allowing unsolicited proposals Executive Order BOT Center  Reorganized the Coordinating Council for (EO) 144 Private Sector Participation into the BOT Center under the Department of Trade and 2nd November, Industry, to promote, market, coordinate and 2002 monitor the BOT/ Private Sector Participation (PSP) Program of the Government Executive Order Transforming the  Transforming PEA into the Philippine (EO) 380 PEA Reclamation Authority (PRA),  Transferring its Non-Reclamation Assets and 26th October, Liability to the Department of Finance, and 2004  Separating there form the PEA-Tollway Corporation for Purpose of Management Executive Order Rules and Procedures  Conform with RA No. 9184 “The Government (EO) 423 on the Review and Procurement Reform Act” Approval of all  Guidelines and procedures for entering into 30th April, Government Contract Joint Venture Agreement between 2005 Government and Private Entities Executive Order Transfer of  Transferred back TRB from DPWH to DOTC (EO) 686 TRB to DOTC and its and clarified its mandate. Mandate (Delineation  Vested in DPWH the following powers: 19th December, of mandates between - Enter into contract for the construction, 2007 DPWH and TRB) operation and maintenance of toll facilities for highways, roads, bridges and thoroughfares. - Determine the kind, type and nature of highways, roads, bridges and thoroughfares. - Condemn private property for the same

11-1

Decrees/Orders Main Subject Outlines Date  Orders TRB to concentrate on the following powers; - Issue, modify and proclaim the rates of toll and approve or disapprove petitions for the increases; and - Grant authority to operate a toll facility and issue the necessary “Toll Operation Certificate”. Executive Order BOT Center renamed  BOT Center renamed to PPP Center (EO) 8 to PPP Center and  Transferred from DTI to NEDA transferring from DTI  Conduct project facilitation and assistance to 9th September to NEDA to revitalize National Agencies and Corporation and LGUs 2010 BOT Center  Provide advisory services and technical assistance  Manage and administer Project Development and Monitoring Facility  Monitor and facilitate PPP projects PD No. 1112 Toll Operation  Authorized the establishment of toll facilities Decree on public improvements, 31st March, 1977  Created the Toll Regulatory Board (TRB) with the following powers and duties: - Enter into contracts for the construction, operation and maintenance of toll facilities. - Determine the kind, type and nature public improvements that can be constructed and operated as toll facilities. - Condemn private property for public use - Promulgate the rates of toll - Grant authority to operate a toll facility and issue “Toll Operation Certificate” PD No. 1113 CDCP Franchise  Granted CDCP a franchise to operate, (North and South construct and maintain toll facilities in the 31st March, 1977 Luzon Toll North Luzon Toll Expressway (Balintawak- Expressways) Rosales) and South Luzon Toll Expressway (Nichols-Lucena).  Franchise was for 30 years from May 1, 1977. PD No. 1084 Charter of Public  Created the Public Estate Authority for the Estates Authority following purposes, among others. 4th February, (PEA) - To reclaim land 1977 - To develop all kind of lands and other real estate owned/operated by the government. - To provide services for the efficient utilization of the properties. PD No. 1894 Amendment of  Amended the franchise of PNCC (formerly PNCC Franchise CDCP) 22nd December,  Included the Metro Manila Expressway to link 1983 the North and South Luzon Expressways.  Granted PNCC the right to construct, maintain and operate any and all such extensions, linkages or stretches.  Franchise shall have a term of 30 years from

11-2

Decrees/Orders Main Subject Outlines Date the date of completion of the project. RA No. 6957 Implementation of  Authorized the financing, construction, Infrastructure operation and maintenance of Infrastructure 9th July, 1990 Projects by the projects by the private sector.. Private Sector (BOT Law) R A No. 727 Bases Conversion  Created BCDA to construct, own, lease, and Development operate and maintain public utilities as well as 13th March, 1992 Authority (BCDA) infrastructure facilities to support the productive uses of the Clark and Subic Bay reservations. Source: Preparatory Survey for PPP Infrastructure Development Project, JICA, 2010

11.2 TECHNICAL RISKS OF THE PROJECT The Project is situated in the highly urbanized area with heavy traffic. The Project will be constructed over the existing roads. There are various technical issues and risks as follows;

1) ROW Acquisition Delay Risk  Although most sections utilize existing road ROW, however, along Domestic Road, a part of section of Andrews Avenue and Sales Road, some section of MIA Road requires widening and ROW acquisition is required.  In Toll Concession Agreement (TCA), the date for delivery of ROW will be specified and DPWH will be imposed liquidated damage, if failed.  DPWH should start the parcellary survey as soon as possible and all necessary preparation for ROW should be started.  Soon after the project is approved by the NEDA Board, DPWH should start ROW acquisition.

2) Delay Risk of Relocation of Informal Settlers  Some informal settlers are affected by the project.  If relocation of informal settlers is delayed, delivery of ROW will also be delayed.  DPWH should start discussion with the concerned LGUs to determine the relocation site.  DPWH should also start the coordination with NHA for their possible assistance in relocation of informal settlers. 3) Construction Cost Increase and Construction Schedule Delay Risk  Construction work must be undertaken along heavily traffic and congested existing roads.  Proper traffic management plan must be prepared and approved by concerned LGUs.  Implementation of traffic management plan must be carried out with close coordination with the local traffic police and MMDA.  Otherwise, LGUs may order temporary suspension of construction work.  Construction execution plan must be carefully prepared by contractor(s) employed by a concessionaire in due consideration of traffic conditions of the project area. 4) Risk Related to Relocation of Public Utilities  There are many public utilities of both overhead and underground.  During the detailed design, location of all public utilities must be identified and selection of pier locations must be so selected to minimize relocation of public utilities.

11-3

 Since public utility companies are allowed to install utilities within the road ROW with no payment for land lease, they are required to relocate them at their cost when road project requires relocation of public utilities.  Contractor(s) employed by the concessionaire must start discussion with utility companies how to and when to relocate affected utilities during the detailed design stage and agree on when utility companies can complete relocation of utilities.  Utility relocation work needs to be simultaneously done with construction work of pier foundations and double digging of existing road shall be avoided.  Delay in public utilities relocation work will lead to delay in construction work of the expressway. Contractor(s) employed by the concessionaire must fully coordinate with utility companies with regard to public utility relocation. 5) Risk Related to Height Limitation Due to NAIA Navigational Clearance  Height limitation is imposed along the western section of Andrews Ave. and northern section of Domestic Road due to NAIA navigational clearance.  Construction work must be implemented within the allowed height in this area. Usage of toll cranes over height limit will be prohibited. Viaduct construction methods must fully take this limitation into account.  During preparation of a bid, appropriate cost must be incorporated to cope with this limitation. 6) Delay Risk Due to Coordination with Many Agencies  Multi-agencies and organizations are involved such as Manila International Airport Authority (MIAA), Air Force, Light Rail Transit Authority (LRTA), two (2) LGUs, Public Utility Companies, Land Development Companies, etc.  The concessionaire is required close coordination with all concerned agencies, organizations and private companies.  If coordination do not go well or smooth, the construction schedule will be delayed and additional cost will be required to recover delayed schedule.  The concessionaire and DPWH should plan coordination schedule in advance and any delay should be mitigated.

11.3 BRIEF HISTORY OF BID DOCUMENTS PREPARATION Preparation of bid documents for the selection of the concessionaire started at the last quarter of 2010, which has prior to the start of this Study.

Joint work force composed of the following was organized for the preparation of bid documents;  Department of Public Works and Highways (DPWH)  Department of Finance (DOF)  NEDA PPP Center  Office of the Solicitor General (OSG)  Development Bank of the Philippines (DBP)  International Finance Corporation (IFC)  JICA Study Team

Joint work force met weekly to discuss issues and corresponding amendment of bid documents. In the process of preparation of bid documents, NEDA Board turned down this project, therefore, preparation of bid documents was suspended. In this report, bid documents in the process of finalization are presented.

11-4

11.4 COMPOSITION OF BID DOCUMENTS Draft bid documents are composed of the following parts;

Part 1 : Invitation to Bid Part II : Instruction to Bidders Part III : Minimum Performance Standards and Specifications Part IV : Draft Concession Agreement

11.5 MAJOR DIFFERENCES BETWEEN ORIGINAL AND PRESENT PROVISIONS Although the bid documents were not finalized, differences between the original stage and the present (or at the time of suspending the preparation of bid documents) are shown in Table 11.5-1.

11.6 TIME FRAME FOR BIDDING

Draft Time frame for bidding and project implementation is shown in Table 11.6-1. Draft bidding process stipulated in the bid documents is shown in Table 11.6-2.

11-5

TABLE 11.5-1 NAIAX BIDDING DOCUMENTS: MAJOR DIFFERENCES BETWEEN ORIGINAL AND PRESENT PROVISIONS ORIGINAL/EARLIER PROVISIONS PRESENT PROVISIONS REMARKS Instructions to Bidders 1. Procurement involves single-stage 1. Procurement involves two-stage bidding – The single-stage scheme is faster and less-prone to bidding, with simultaneous prequalification first, followed by submission collusion. The two-stage scheme, however, will submission of prequalification of bids from prequalified bidders. encourage more firms to apply for prequalification application and bids. which is simple and inexpensive; only those that prequalify will have to do due diligence in preparing bids. Applies international standards 2. The bid parameter is the proposed toll 2. The bid parameter is the required GFS, with Either bid parameter/criterion is acceptable. rate, with DPWH fixing the DPWH fixing the initial toll rates. The winning Accepted practice in selection criteria is applied. Government Financial Support (GFS). bidder will be the one that submits the lowest (Chile, for example, has toll road selection criteria The winning bidder will be the one proposed GFS. based in minimized Government financial inputs). that submits the lowest proposed toll World Bank model arrangements provided for rate. these selection criteria as well 3. For prequalification, the applicant 3. For prequalification, the applicant must The present provision is more liberal and flexible 11-6 11-6 must designate a construction propose itself or 1-5 construction contractors, for the applicant. contractor with adequate construction each with adequate construction experience. But it is not standard international practice. Care experience and equipment. The Concession-aire may use any of the will need to be taken to prevent collusion proposed contractors. A construction contractor may be nominated in more than one bid. 4. For prequalification, the applicant 4. For prequalification, the applicant must -do- must designate an O&M contractor propose itself or 1-5 O&M contractors, each with adequate O&M experience. with adequate O&M experience. The Concessionaire shall designate the Facility Operator within 10 days after the Notice to Proceed with the Construction. An O&M contractor may be nominated in more than one bid. Concession Agreement 1. Concession Period is 35years, 1. Concession Period is 35years, including DPWH requested the present provision since it including design and construction construction period, commencing from the anticipates difficulties in delivering the Basic period, commencing from the signing Notice to Proceed, which is the later of the date ROW. date of the Concession Agreement of Basic ROW delivery by DPWH, or the date The best practice requires the ROW to be in place

ORIGINAL/EARLIER PROVISIONS PRESENT PROVISIONS REMARKS (CA). of certified DED delivery by the prior to bidding. This practice is an acceptable Concessionaire. alternative 2. The Concessionaire shall be 2. The Concessionaire shall no longer be DPWH must provide adequate arrangements for responsible for the maintenance of responsible for Phase I maintenance until the Phase I maintenance until the TOC issuance. Phase I until the issuance of the Toll issuance of the TOC. Operations Certificate (TOC). 3. DPWH shall ensure that TRB 3. DPWH shall ensure that TRB issues the TOC The original provision would have given more automatically grants the TOC within within 10 days after TOC application by the comfort to the Concessionaire, and would be in 15 days from signing of CA, with the Concessionaire/Facility Operator and after keeping with the intent of the BOT law for the TOC to become effective upon issuance by DPWH of the CFC. automatic grant of franchise. It would provide the issuance of the Certificate of Final Concession Contract with certainty as opposed to Completion (CFC) of the being subject to a further decision by an Construction. organization (TRB) that is not subject to the CA International practice is to ensure that the CA has force and effect from the date of signing subject to Conditions Precedent 11-7 11-7 4. DPWH shall deliver the Basic ROW, 4. DPWH shall deliver the Basic ROW, without The proposed provision for the relocation of clear of all occupants and utilities, removing utilities, within 12 months after CA utilities is more practical and based on engineering within 3 months after CA signing. signing. DPWH shall cause the removal of considerations. It will require a tripartite agreement public utilities by the utility owners in among DPWH, the Concessionaire, and the Public accordance with the Concessionaire’s Utility Owners. construction schedule. If DPWH fails to deliver International practice requires cooperation between the Basic ROW within 12 months after CA the three parties for handling public utility signing, DPWH is given a curing period of 3 relocation. Australian practice is to adopt a months, beyond which DPWH/the tripartite agreement. Concessionaire may terminate the CA, 5. DPWH shall issue a Certificate of 5. There is no more CSC. DPWH shall issue the The present provision is more expedient. Substantial Completion (CSC) upon CFC upon the Concessionaire’s 100% It applies international standards accomplishing 95% of the works, and completion of construction and other then a CFC upon full completion. requirements. 6. Independent Consultant (IC): 6. Independent Consultant (IC): a) The original provision would have been more a) The IC shall be engaged for both a) The IC shall only be for effective as an IC is needed also for the design/ construction and O&M. design/construction. DPWH may engage independent supervision of O&M, especially since this involves liquidated damages on the b) The IC shall certify and its own agent for O&M supervision.

ORIGINAL/EARLIER PROVISIONS PRESENT PROVISIONS REMARKS recommend the Concessionaire’s b) Within 30 days after the Concessionaire concessionaire for violation of KPIs. detailed engineering design delivers the DED to the IC, DPWH may b) International practice sometimes applies the IC (DED) and CFC issuance. DPWH provide comments if, in its opinion, the role to the O&M period. shall approve the DED and issue DED does not conform to the CA c) The present provision is more efficient, since the the CFC. requirements, including the MPSS and the IC engaged by DPWH is expected to work for Conceptual Engineering Design. The IC the interest of the project. shall consider the DPWH comments. The IC shall then certify the DED, and the Concessionaire shall deliver the certified DED to DPWH within 12 months after the CA signing date. For Construct-ion, IC shall certify that the CFC requirements are met, and DPWH shall then issue the CFC. 7. Toll Rate Adjustments: 7. Toll Rate Adjustments: a) The present provision will enable to toll rate a) Periodic toll rate adjustments shall a) Periodic toll rate adjustments shall be done adjustments to reflect the actual price increases be once every 2 years, according to annually, according to a formula which due to inflation. 11-8 11-8 a formula which makes the toll makes the toll increase vary with 100% of b) Remedies under the present provision will increase vary with 50% of the CPI the CPI increase. This will be adjusted by a effect adequate compensation. The increase. factor reflecting the real increase (between 0 Concessionaire, however, should have been b) Remedies for disallowance of and 3%). given the option to choose the form of the authorized toll rates are (i) b) Remedies for disallowance of authorized remedies. compensation for foregone toll toll rates are either (i) compensation for The proposed adjustment formula and timing income using a formula or (ii) foregone toll income using a preset formula applies international practice. The option to choose extension of concession period or (ii) extension of concession period, as the means of adjustment is also expected based on the Concessionaire’s may be mutually agreed upon by the parties. international practice. It varies from jurisdiction to financial model jurisdiction. 8. Operation and Maintenance: 8. Operation and Maintenance: a) Penalties – in pesos - for non- a) Liquidated damages (LDs) – in Toll a) The present provision for LDs in terms of compliance of Key Performance Equivalent Units (TEUs) - for non- TEUs is better related to foregone revenues in Indicators (KPIs) for O&M. compliance of KPIs for O&M. case of non-compliance with KPIs. b) Maintenance Fund Account for 3 b) No more Maintenance Fund Account. TEUs introduces international standard months expenses. Integrate the requirements under O&M principles of LDs related to performance and toll revenues Performance Security. b) A Maintenance Fund would have set aside in

ORIGINAL/EARLIER PROVISIONS PRESENT PROVISIONS REMARKS escrow a part of the Concessionaire’s O&M budget to promptly do maintenance work. The O&M fund is practice in some jurisdictions to introduce certainty for achieving maintenance standards. 9. Force majeure FM): 9. Force majeure (FM): This applies a more standard international FM would include Government Government expropriation, requisition, definition. expropriation, requisition, confiscation, and nationalization have been confiscation, and nationalization by moved from FM to events of DPWH default. Government. 10. Concessionaire’s default and 10. Concessionaire’s default and termination: There is a need for a regime for liquidated damages termination: a) Before construction – failure to deliver the before default and termination. a) Before construction – failure to certified DED on time. International approaches are based around keeping the CA in place and applying LDs/penalties for achieve financial closure, and to b) During construction – failure to submit non-conformances rather than using the default submit the DED on time. evidence of financial closure on time, failure

11-9 11-9 system. b) During construction – 20% to submit O&M Manuals on time, failure to slippage, persistent failure to complete the construction and secure the remedy defects, failure to CFC on time. complete the construction and c) During O&M –failure to operate 30 days secure the CFC on time. after TOC issuance, failure to submit c) During O&M –failure to operate monthly O&M reports, failure to submit as- 30 days after TOC issuance, built drawings and asset register on time. failure to sustain the Maintenance d) Others – material breach of its obligations, Fund, persistent breach of O&M etc. Manuals. Curing period is 90 days. If default is not d) Others – material breach of its cured, DPWH may terminate the CA, with obligations, etc. no compensation to the Concessionaire. Curing period is 90 days. If default is not cured, DPWH may terminate the CA, with proper compensation to the Concessionaire. 11. DPWH’s default and termination: 11. DPWH’s default and termination: There is a need for a regime for liquidated damages a) Failure to provide the GFS per a) Failure to provide the GFS per CA. before default and termination.

ORIGINAL/EARLIER PROVISIONS PRESENT PROVISIONS REMARKS CA. b) Failure to secure from TRB the TOC within International approaches are based around keeping b) Failure to compensate the 10 days from application date. the CA in place and applying LDs/penalties for Concessionaire in case of c) Failure to compensate, with delay interest, non-conformances rather than using the default disallowance of authorized toll the Concessionaire within 2 years in case of system. rates. disallowance of authorized toll rates. c) Failure to deliver the ROW on d) Material breach of its obligations. time. e) Taking control or ownership of d) Failure to approve the DED or Concessionaire or expropriation of its appoint the IC on time. assets. e) Material breach of its obligations. Curing period is 120 days. If default is not Curing period is 120 days. If default is cured, the Concessionaire may terminate the not cured, the Concessionaire may CA, with DPWH making termination payments terminate the CA, with proper using the preset formulas. compensation to the Concessionaire.

11-10 12. Guarantee on political risks: 12. Guarantee on political risks: Guarantee instruments are still being explored with No specific provision – to guarantee Consider (a) use of insurance guarantee facility ADB/WB and DBM. payment of compensation for of ADB/WB to compensate the Concessionaire disallowing authorized toll rates, in case of DPWH’s/government’s failure in its providing GFS as agreed, performance undertakings (Pus), and (b) expropriation, undue cancellation of special provision in the General Appropriations TOC, etc. Act to use appropriated funds to guarantee the Pus. 13. Insurance: 13. Insurance: The main difference is in the CARI coverage. a) During construction: Contractor’s a) During construction: CARI covering 50% all-risk insurance (CARI) of assets; third party liability; workmen’s covering 100% of assets; force compensation; other insurance against majeure, third party liability. damage such as from force majeure. b) b. During operation: force b) During operation: property damage of 50% majeure including damage from of book value; third party liability; calamities, third party liability workmen’s compensation; other insurance against damage such as from force majeure. 14. Dispute resolution: 14. Dispute resolution: The Dispute Resolution Board will provide a more

ORIGINAL/EARLIER PROVISIONS PRESENT PROVISIONS REMARKS a) Originally, a Dispute Resolution The Dispute Resolution Board is back in the practical instrument to resolve disputes or Board – one representative from present provisions. disagreement than having the top officials of the DPWH, one from the parties to resolve them. Concessionaire, and 1 chosen by the first two – was envisioned. b) The idea of the Board was later dropped, and disputes would be resolved between the DPWH Secretary and the CEO of the Concessionaire. 15. Termination Payments 15.To be proposed by IFC/DBP Termination payments were based on a range of different formulas including valuation of assets, cash flow arrangements etc

11-11 11-11 16. Turnover 16. Turnover Introduction of more substantial “Turnover” No substantial Turnover provisions at Introduction of detailed “Turnover” provisions provisions makes the obligations clear and the at the end of the Concession period, including: process clear at the end of the Concession. the end of concession period a) Joint inspection; b) Asset inventory The provisions are in line with international c) Defects performance security standards. Source: JICA Study Team

TABLE 11.6-1 DRAFT TIME FRAME FOR BIDDING AND PROJECT IMPLEMENTATION

Responsible Body

Conces Facility DPWH Stipulations in TCA IC -sionaire Operator TRB

Signing CA

Section 11.0 (11.2) ithi The DPWH shall prepare the short-list of three candidates for the within 3 months ● Independent Consultant (IC). The DPWH shall complete the the DPWH procures the IC procurement of IC within 3 months after the Signing Date

Section 9.0 (9.2) The Concessionaire shall prepare the DED in conformity with the within 9 months requirements of the Concession Agreement and submit it to the IC not the Concessionaire sends the DED to the IC later than 9 months after the Signing Date. within 30 days If the IC concludes that the DED does not conform with the the DPWH provides comments on the draft DED to the IC requirements of thi

DED and some Preparatory Stage the IC reviews the submitted DED ●● ● DED rejection DED certification

within 15 days The Concessionaire sends revised DED to the IC within 12 months the Concessionaire sends the certified DED to the DPWH

Section 8.0 (8.1) within 12 months The Basic Right of Way (ROW) shall be made available by the DPWH Delivery of Basic ROW ● to the Concessionaire within 12 months after the Signing Date. Section 7.0 (7.2) after 3 months The Concessionaire shall achieve Financial Closure not later than 3 Financial Closure ● months after certification by the IC of delivery of the Basic ROW.

Section 10.0 (10.3) The DPWH shall issue the Notice to Proceed (NTP) within 5 days within 5 days ● after: (i) the date of delivery of the Basic ROW, or (ii) the date of Notice to Proceed (NTP) is issued by the DPWH delivery of the Certified DED

Section 12.0 (12.2) within 10 days Within 10 days after the issuance of the NTP, the Concessionaire the Concessionaire notifies the DPWH of ● shall: the identity of the Facility Operator (i) Notify DPWH of the identity of its proposed Facility Operator; Construction Stage (ii) Provide evidence incorporated and fulfills the requirements; and (iii) Request DPWH’s written approval of such Disapprove by the DPWH

within 30 days the Concessionaire propose another candidate Facility Operator

Section 12.0 (12.3) within 18 months The Concessionaire submits the O&M Manuals to the DPWH for the Concessionaire submits ● approval within 18 months after issuance of the NTP. O&M Manuals to the DPWH

Section 10.0 (10.3) (10.10) 30 The Construction and other requirements for the issuance of the the IC is in charge of final tests and issue days Certificate of Final Completion shall be completed no later than the the notice of completion of construction Construction Completion Deadline (24 months after the issuance of NTP) ● ● ● within 7 days The DPWH shall issue the Certificate of Final Completion to the Certificate of Final Concessionaire within 7 days after its receipt of the IC’s notice Completion issued by Section 12.0 (12.3) wit The Facility Operator applies for the issuance of the Toll Operation Certificate (TOC) with the TRB. Facility Operator applies for the O & M Stage ● ●

Toll Operation Certificate Section 12.0 (12.3) Upon issuance of the TOC issued by the TRB, the Concessionaire Facility ● shall carry out the Operation and Maintenance of the NAIA Expressway Section 19.0 (19.1) (19.4) 2 years prior to the end of the Concession Period, the DPWH and the Concessionaire shall conduct a Joint Inspection and Survey of the Turnover condition of the NAIA Expressway.

t 1 year prior to the end of the Concession Period, deliver to the DPWH h the Defects Per ●●●●

Source: JICA Study Team

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TABLE 11.6-2 DRAFT BIDDING PROCESS STIPULATED IN THE BID DOCUMENT (As of July 3, 2011) Responsible Body

Prospec Pre- Stipulations in BOT Law Winning Stipulations in ITB BAC DPWH -tive qualified (amendment) Bidder Bidders Bidders

Section 2.0 Invitation of the Prospective Bidders to apply to Pre-Qualification (PQ), who are satisfied with the Qualification Requirements consisting of legal eligibility, Publication of Invitation technical capability and financial capability, are publicly announced by the DPWH of PQ and Bid ● Section 4.0 after 30 days Instructions of PQ, Qualification Requirements and answers to the Prospective PQ Conference within 60 days ● Bidders’ queries are provided at the PQ Conference which is held 30 days by the DPWH after the public invitation of the Prospective Bidders Section 6.0 (6.1) Qualification Documents are submitted by the Prospective Bidders to the BAC Section 5.3 prescribes 30 calendar Submission of Qualification Documents within 60 days after the publication of the invitation consisting of business plan, days from the last date of ● Pre Qualification Stage Bidder’s experiences in construction/O&M, key personnel list and proof of financial publication of the invitation, instead capability of “60 days” Section 6.0 (6.2) The BAC opens Qualification Documents on the Qualification Documents Opening Qualification Documents ● submission date

Section 6.0 (6.2) within 10 days The BAC examines and evaluates Qualification Documents over a period of no Section 5.4 stipulates 20 calendar Examination of Qualification longer than 10 days after the Qualification Documents submission date days instead of “10 days”

Notice of Pre-Qualification of whether pre-qualified or not is issued to all Section 5.5 stipulates that the Notification of PQ evaluation ● Prospective Bidders by the BAC Agency determine pre-qualified Bidders within 20 calendar days and notify the result within 5 days, total timeframe is 25 days instead of “10 days” The first draft TCA is released to the pre-qualified bidders by the DPWH Section 6.0 (6.3) Release of first Draft of CA to ● Pre-Qualified Bidders

Section 6.0 (6.3) Bidder’s Comments are provided to the BAC by the Pre-Qualified Bidders after Bidding Stage release of the first draft TCA. The DPWH reserves the right to accept or reject the Acceptance of the Bidders' ● Comments on Draft CA Bidder’s Comments

Section 8.0 Pre-Bid Conference is held by the DPWH to confirm the bidding documents. Section 6.3 clearly stipulates 60 to Within a reasonable period after the Pre-Bid Conference, all amendments and 120 calendar days before the

11-13 Pre-Bid Conference submission of bids within a reasonable period ● minutes of the conference will be issued by the DPWH to Pre-Qualified Bidders Amendment of the

Section 9.0 after 120 days Bid Proposals are submitted by Pre-Qualified Bidders to the BAC within 120 BOT Law amendment only says Section 11.0 (11.1 , 11.2) days before the deadline stipulated in Submission of Bid Proposal (consisting of 3 envelops) after the issuance of the Notice of PQ, which consist of three envelops. The ● ● envelop 1: mainly additional qualification documents, the envelop 2 : technical the ITB, no specific timeframe is proposals and the stipulated 240days and Section 11.0 (11.3) on submission date The BAC opens envelop 1 and 2 on the Bid Proposals submission date Section 8.1 stipulates 20 calendar days from the date the technical above Envelop 1 & 2 are opened The envelop 2 is examined as Technical Evaluation by the BAC over a period of proposal is opened no longer than 8 days no longer than 8 days after the opening of envelop 2 Technical Evaluation ● within 2 days The BAC informs the Bidders of the results of the eval Notification of the Results of the Evaluation

Section 11.0 (11.3) The envelop 3 is opened by the BAC in front of the observers dispatched from all Section 8.2 stipulates 15 calendar Envelop 3 is opened bidders who passed the Technical Evaluation for the envelop 2. The envelop 3 is days from the date of completion ● examined from the viewpoint of the lowest Bid Amount and appropriate Supporting of technical evaluation. It is the Financial Evaluation Financial Mod period for evaluation of financial proposal within 3 days Post-Qualification to all documents submitted by the bidder who proposed the Section 11.1 stipulates 7 calendar Section 13.0 The next lowest complyig Section 11.0 (11.4) bidder undergoes the Post- Post Qualification lowest bid amount will be made by the BAC over a period not to exceed 3 days. days after completion of financial Qualification process ● When verification is passed, its bid is declared the lowest complying post-qualified evaluation for recommendation of Bid and the BA award, instead of “3 days”

Notice of Award is issued by DPWH to the Winning Bidder with the lowest Section 11.2 stipulates 7 calendar Section 12.0 (12.1) Issuance of Notice of Award ● complying post-qualified Bid, immediately after the approval of award by DPWH days after approval secretary.

within 30 days Documents following Post-Award Requirements for the execution and signing of Section 12.0 (12.1) the TCA is submitted by the Wining Bidder to the DPWH within 30 days from Submission of Documents following Post-Award Requirements ● ● the Winning Bidder’s receipt of the Notice of Award Dissatisfaction of Post- Award Requirements

within 7 days The DPWH will determine and notify the Winning Bidder of its compliance of all ● Section 12.0 (12.1) Final Winning Bidder is recommended within 3 days conditions within 7 days upon receipt of the Post-Award Requirements documents The Winning Bidder and the DPWH sign the CA within 3 days from its receipt of Section 12.0 (12.3) Signing CA ● ● the notification of compliance Source: JICA Study Team

11.7 DRAFT BID EVALUATION CRITERIA 11.7.1 Introduction The purpose of these Bid Evaluation Criteria and Procedures (BECP) is to provide a guide to the Special Bids and Awards Committee (SBAC) for Public-Private Partnership (PPP) Projects of the Department of Public Works and Highways (DPWH) and its Technical Working Group in the evaluation of the Pre-qualification Documents and Bids to be received by the DPWH for the NAIA Expressway Project - hereinafter called the Project - under the Build-Operate-Transfer (BOT) Law.

The documents which describe the Project and govern the process for pre-qualification are (a) the Invitation to Pre-Qualify to Bid, (b) the Instructions to Prospective Bidders (ITPB) including its Annexes, and (c) the Information Memorandum (IM).

The procurement for the Project follows the two-stage process consisting of (a) pre- qualification and (b) submission of bids.

In the first stage, the Bidders are required to be pre-qualified first by the SBAC. The pre- qualification consists in determining if the Bidder’s legal, technical and financial capability, as shown in its Qualification Documents submitted to the DPWH, comply with the established qualification criteria and requirements for the Project.

In the second stage, only those Bidders that pass the pre-qualification shall be allowed to submit their respective Bids to the DPWH. Each Bid shall consist of the Bidder’s (a) Bid Letter (including Bid Security), (b) Technical Proposal, and (c) Financial Proposal, in three envelopes. The SBAC shall open and evaluate the contents of these envelopes in sequence. Only the Bidders that meet the requirements of the Bid Letter shall have their Technical Proposals opened and evaluated by the SBAC. The Bidders that comply with all the requirements of the Technical Proposals shall be considered to be on equal footing, and the Winning Bidder shall be determined by the Financial Proposals. The SBAC shall open and evaluate the Financial Proposals, and rank those complying, from the lowest to the highest Bid Amount (in terms of the proposed Government Financial Support for Construction).

The SBAC shall conduct post-qualification on the Bidder with the lowest complying Bid Amount - i.e., validation of all statements in the Qualification Documents and Bids. If that Bidder is post-qualified, the SBAC shall declare its Bid as the lowest complying and post- qualified Bid and, thus, recommend to the DPWH Secretary to award the Concession Agreement to that Bidder.

The overall process for pre-qualification and evaluation of Bids is depicted in Figure 11.7.1-1.

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PRE-QUALIFICATION 120 days BIDS EVALUATION End of Day End of Day 246810 2468101214 Receive Pre- qualifcation Documents (PDs ): Da y 1 Receive Bids: Day 1

Open and do prelim exam (presence/ebsence ) of PDs: Da y 1 Open and evaluate Bid Letters (Envelope 1):: Day 1

For incom plete PDs , predis qualif y applicant: Da y 1 For non-complying Bid Letters, return Envelopes 2-3: Day 1

: Traffic forecasts, For applicants with complete PDs, conduc t Critreria : legal, For complying Bidders, open and evaluate Tech. Criteria detailed evaluation of PDs to determine technical, and Proposals (Envelope 2): Days 1-12 Conceptual engineering design, financial capability Construction plan, O&M plan compliance with Pre-qualification Requirements For non-complying Tech. Props, return For pre-disqualfied applicants, Env 4, Days 13-14 notify them of reasons for disqualification, Days 9-10 For complying Tech.. 11-15 Props, open and evaluate Criteria : Bid Amount Fin. Props (Env 4), (GFS ), For pre-qualified applicants, Days 11-12 notify them to submit Bids within 120 days, Days 9-10

For losing Fin. Props, send notices, Day 12 Select lowest complying Criterion: Lowest Bid Bid (LCB), and notify Amount (GFS) Bidder, Day12

Criterion: Correct Post-qualify LCB information in Days 13-14 documents

FIGURE 11.7.1-1 PRE-QUALIFICATION AND BID EVALUATION PROCESS

11.7.2 Pre-Qualification Criteria

The criteria to determine the pre-qualification of Bidders for the Project in these BECP are drawn from Section 11.0 of the ITPB for the Project.

11.7.2.1 Legal Requirements

The Bidder must be either of the following:

(1) A partnership or corporation registered with the Philippine Securities and Exchange Commission (SEC) or in case of a foreign entity, the appropriate government agency equivalent to the SEC in the foreign country where the foreign entity was registered for recognition or creation of its juridical personality or capacity. The Prospective Bidder must certify that it and its Affiliates whose projects and experience are being submitted as evidence of fulfillment of the requirements in Section 11.2 of the ITPB have no unsatisfactory performance record.

(2) A Consortium. All Consortium Members must certify that they and their Affiliates whose projects and experience are being submitted as evidence of fulfillment of the technical requirements in Section 11.2 of the ITPB have no unsatisfactory performance record. If the Prospective Bidder is a Consortium and becomes the Winning Bidder, it will have to show proof of incorporation prior to signing the Concession Agreement.

11.7.2.2 Technical Capability Requirements

To qualify for the Project, the Bidder must meet the following technical capability requirements:

a. Construction Experience.

The Prospective Bidder or a related entity, as described below, must have satisfactorily completed, within the last ten (10) years, the construction of expressways/viaducts/ flyovers/bridges or similar projects with a cumulative cost of at least Six Billion Philippine Pesos (PhP 6,000,000,000.00), including at least one completed horizontal segment or single structure project with a cost of at least One Billion Philippine Pesos (PhP 1,000,000,000.00).

The related entity which fulfils this requirement may be one of the following:

(1) If the Prospective Bidder is a partnership or corporation: (a) The Prospective Bidder itself (b) A Construction Contractor

(2) If the Prospective Bidder is a Consortium: (a) A Consortium Member with at least ten percent (10%) interest in the Consortium (b) A Construction Contractor

If this requirement is to be fulfilled by a Construction Contractor, the Prospective Bidder must propose at least one, and up to five, Construction Contractors, each of which must have the relevant experience. In addition, any Construction Contractor so proposed must possess the following:

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(1) A valid license issued by the Philippine Contractors Accreditation Board (PCAB) for Large B Classification/License Category AAA, in the case of a Filipino Construction Contractor or, in the case of a foreign Construction Contractor, by an equivalent accreditation institution in the Construction Contractor’s country of origin, provided that such foreign Construction Contractor must secure a license and accreditation from the PCAB after the Bidder is awarded the Project.

(2) A valid International Organization for Standardization (ISO) 9001:2000 certification.

For the purpose of counting and calculating the value of projects completed by the Prospective Bidder, a Consortium Member, or a Construction Contractor, the SBAC will count projects completed by an Affiliate of the Prospective Bidder as if it had been completed by the Prospective Bidder, projects completed by an Affiliate of a Consortium Member with at least ten percent (10%) interest in the Consortium as if it had been completed by that Consortium Member, and projects completed by an Affiliate of a Construction Contractor as if it had been completed by that Construction Contractor. However, projects completed by a Prospective Bidder (along with its Affiliates) and a Construction Contractor (along with its Affiliates) will not be counted together: either the Prospective Bidder and its Affiliates must have sufficient construction experience on their own, or a Construction Contractor and its Affiliates have sufficient construction experience on their own. Similarly, projects completed by different Consortium Members (along with their Affiliates) and Construction Contractors (along with their Affiliates) will not be counted together: each of these entities and their Affiliates must have sufficient construction experience on their own.

The entity whose completed projects are being submitted in fulfillment of this requirement - whether the Prospective Bidder, a Consortium Member, or a Construction Contractor - and any Affiliates of any of these entities whose completed projects are being submitted in fulfillment of this requirement, must certify that they have no unsatisfactory performance record. Any proposed Construction Contractor must also provide a statement of willingness to participate in, and capacity to undertake, the requirements of the Project. After pre- qualifying, Construction Contractors may be asked to reiterate their willingness to participate in, and capacity to undertake, the requirements of the Project at the time that the Bid Proposals are submitted.

Under the terms of the Concession Agreement, the Winning Bidder will be required to use only Construction Contractors which fulfill this Construction Experience Requirement and have the necessary PCAB license and ISO certification. If the Prospective Bidder fulfills this requirement by proposing a Construction Contractor or Construction Contractors, and these Construction Contractors are pre-qualified as described in Section 16, then the Concession Agreement will identify the pre-qualified Construction Contractors and the Concessionaire will be allowed to use any of them without need for further consent from the DPWH. The use of any Construction Contractors not pre-qualified during the Bidding Process will require prior written consent of the DPWH, and will be subject to the Concessionaire’s demonstration that the proposed Construction Contractor meets the requirements in this Section. b. Operation and Maintenance Experience.

The Prospective Bidder or a related entity, as described below, must have experience in the operation and maintenance of a toll expressway of at least three years in the past ten (10) years.

The related entity which fulfills this requirement may be:

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(1) If the Prospective Bidder is a partnership or corporation: (a) The Prospective Bidder itself (b) An O&M Contractor

(2) If the Prospective Bidder is a Consortium: (a) A Consortium Member with at least ten percent (10%) interest in the Consortium (b) An O&M Contractor

If this requirement is to be fulfilled by an O&M Contractor, the Prospective Bidder must propose at least one, and up to five, O&M Contractors, each of which must have the relevant experience.

For purposes of determining whether an entity has the relevant Operation and Maintenance Experience, the SBAC will count the experience of an Affiliate of the Prospective Bidder as the experience of the Prospective Bidder, the experience of an Affiliate of a Consortium Member with at least ten percent (10%) interest in the Consortium as the experience of that Consortium Member, and the experience of an Affiliate of an O&M Contractor as the experience of that O&M Contractor.

The entity whose completed projects are being submitted in fulfillment of this requirement - whether the Prospective Bidder, a Consortium Member, or a Construction Contractor - and any Affiliates of any of these entities whose completed projects are being submitted in fulfillment of this requirement, must certify that they have no unsatisfactory performance record. Any proposed O&M Contractor must also provide a statement of willingness to participate in, and capacity to undertake, the requirements of the Project. After pre-qualifying, O&M Contractors may be asked to reiterate their willingness to participate in, and capacity to undertake, the requirements of the Project at the time that Bid Proposals are submitted.

Under the terms of the Concession Agreement, the Operation and Maintenance of the NAIA Expressway will have to be undertaken by a Facility Operator. The Facility Operator will have to meet the following requirements:

(1) Be at least sixty percent (60%) Filipino-owned and controlled.

(2) Have experience in the operation and maintenance of toll expressways of at least five years in the past ten (10) years, or be at least twenty percent (20%) owned by an entity which has such experience, as provided below.

If the Winning Bidder (or if it is a Consortium, the corporation it shall form after being issued the Notice of Award) fulfils these requirements itself, then it may designate itself as the Facility Operator. If it does not, then the entity, or one of the entities proposed by the Bidder to fulfil the Operation and Maintenance Experience requirement must be designated as Facility Operator or own at least twenty percent (20%) of the Facility Operator. In case of the latter, the entity owning at least twenty percent (20%) of the Facility Operator must maintain such interest for at least five years starting from issuance of the Toll Operation Certificate for the Project, unless its obtains prior written consent from the DPWH. c. Qualified Key Personnel

The Prospective Bidder, its Consortium Members, proposed Construction Contractors, or proposed O&M Contractors, must have, among their and their Affiliates’ collective personnel, individuals with the following required qualifications and experience:

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Position Minimum Qualifications and Experience Min. Years of Required Experience 1. Project Manager Registered Civil Engineer and must have been the 20 Project Manager of expressways/viaducts/ flyovers/bridges/similar projects. 2. Manager, Design Registered Civil Engineer and must have been the 15 Designer of expressways/viaducts/ flyovers/bridges/similar projects. 3. Manager, Must have been the General or Operations 5 Operation and Manager of at least one project involving the Maintenance operation and maintenance of expressways/ tollways during the past 10 years.

11.7.2.3 Financial Capability

To qualify to bid for the Project, the Prospective Bidder or a related entity, as described below, must meet the following financial capability requirements:

a. Have a net worth of at least One Billion Two Hundred Million Philippine Pesos (PhP 1,200,000,000.00) or its equivalent as of its latest audited financial statements, which must be dated not earlier than 31 December 2010.

b. Have a total taxable income for the taxable year 2010 or later of at least Five Hundred Eighty Million Philippine Pesos (PhP 580,000,000.00) or its equivalent.

c. Provide evidence that it has the capability to raise loans of at least Four Billion Eight Hundred Million Philippine Pesos (PhP 4,800,000,000.00) for the Project. This amount can be reduced by the excess of the Prospective Bidder or related entity’s net worth over One Billion Two Hundred Million Philippine Pesos (PhP 1,200,000,000.00).

The entity which fulfills this requirement may be any of the following:

a. If the Prospective Bidder is a partnership or corporation: (1) The Prospective Bidder itself (2) An Affiliate of the Prospective Bidder

b. If the Prospective Bidder is a Consortium: (1) The Lead Member of the Consortium (2) An Affiliate of the Lead Member of the Consortium

A single entity - whether the Prospective Bidder, Lead Member, or an Affiliate of either - must meet each of the financial capability requirements in their entirety. For example: either the Prospective Bidder or its Affiliate, or the Lead Member or its Affiliate must, by itself and not along with any other entity, fulfill the net worth and taxable income requirements and provide evidence of capability to raise loans.

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11.7.3 Qualification Documents

On or before the Qualification Documents Submission Date, the Prospective Bidder must submit to the SBAC the following documents, using the relevant forms in the Annexes:

a. Business Plan - using the form in Annex QD-1A for partnerships or corporations, or Annex QD-1B for Consortia. For Consortia, this document must show the Lead Member and all Consortium Members, and the total percentage interest of all Consortium Members must be one hundred percent (100%). The Business Plan must also indicate the entities which fulfill the Qualification Requirements in Sections 11.2 and 11.3 of the ITPB.

Required attachments: If the Prospective Bidder will use an Affiliate or Affiliate of the Lead Member to comply with the Financial Capability Requirements in Section 11.3, of the ITPB, attach evidence of such affiliation.

b. Basic Information Sheet - using the form in Annex QD-2.

(1) To be submitted by all entities listed in all sections of the Business Plan (Form QD-1A or QD-1B). (2) Required attachment: For all entities submitting this form, a certified true copy of its latest General Information Sheet, stamped “received” by the SEC or for a foreign entity, the equivalent document submitted to and acknowledged by the appropriate government agency equivalent to the SEC in the foreign country where the foreign entity was registered for recognition or creation of its juridical personality or capacity.

c. Certified True Copy of SEC Certificate of Incorporation, Articles of Incorporation, and By- Laws, or for a foreign entity, the equivalent document submitted to and acknowledged by the appropriate government agency equivalent to the SEC in the foreign country where the foreign entity was registered for recognition or creation of its juridical personality or capacity. equivalent documents - Annex QD-3.

To be submitted by all entities identified in the Business Plan (Form QD-1A or QD-1B).

d. Notarized Certification of Absence of Unsatisfactory Performance Record - using the form in Annex QD-4 without modification.

To be submitted by all entities listed in all sections of the Business Plan (Form QD-1A or QD-1B).

e. Construction Experience - using the form in Annex QD-5.

(1) To be submitted by the entity or entities which fulfill the Construction Experience requirement in Section 11.2a of the ITPB, as identified in the Business Plan (Form QD- 1A or QD-1B), item 3. (2) Required attachment for each project: (a) Certificate of Project Completion from the project’s owner. (b) If the project was completed by an Affiliate of the entity which fulfills the Construction Experience requirement, evidence of such affiliation.

f. Construction Contractor’s Notarized Statement of Willingness to Participate In, and Capacity to Undertake the Requirements of, the Project – using the form in Annex QD-6 without modification.

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To be submitted by any Construction Contractors proposed by the Prospective Bidder to fulfill the Construction Experience requirement in Section 11.2a of the ITPB, as identified in the Business Plan (Form QD-1A or Form QD-1B), item 3. g. Certified True Copy of Proposed Contractor’s License from PCAB for Large B Classification/License Category AAA - Annex QD-7.

To be submitted by any of the Construction Contractors proposed by the Prospective Bidder to fulfill the Construction Experience requirement in Section 11.2a of the ITPB, as identified in the Business Plan (Form QD-1A or Form QD-1B), item 3. h. Certified True Copy of Valid ISO 9001:2000 Certification - Annex QD-8.

To be submitted by any Construction Contractors proposed by the Prospective Bidder to fulfill the Construction Experience requirement in Section11.2a of the ITPB, as identified in the Business Plan (Form QD-1A or Form QD-1B), item 3. i. Operation and Maintenance Experience – using the form in Annex QD-9.

(1) To be submitted by the entity which fulfills the Operation and Maintenance Experience requirement in Section 11.2b of the ITPB, as identified in the Business Plan (Form QD-1A or Form QD-1B), item 4. (2) Required attachment for each project (a) Certificate of Project Completion or Ongoing Project from Owner. (b) If the project was or is being undertaken by an Affiliate of the entity which fulfills the Operation and Maintenance Experience requirement, evidence of such affiliation. j. O&M Contractor’s Notarized Statement of Willingness to Participate In, and Capacity to Undertake the Requirements of, the Project - using the form in Annex QD-10 without modification.

To be submitted by any of the O&M Contractors proposed by the Prospective Bidder to fulfill the Operation and Maintenance Experience requirement in Section 11.2b of the ITPB, as identified in the Business Plan (Form QD-1A or Form QD-1B), item 4. k. Key Personnel - using the form in Annex QD-11.

(1) To be submitted by the Prospective Bidder. (2) More than one name can be submitted for each position; however, at least one must be submitted. l. Proof of Financial Capability - using the form in Annex QD-12.

(1) To be submitted by the entity which fulfills the Financial Capability requirement in Section 11.3 of the ITPB, as identified in the Business Plan (Form QD-1A or Form QD- 1B), item 5. (2) Required attachments: (a) Certified True Copy of audited financial statements for 2010, stamped “received” by the Bureau of Internal Revenue (BIR) or for foreign entities, the appropriate government agency equivalent to the BIR in the foreign country where the foreign entity was registered for recognition or creation of its juridical personality or capacity. (b) Certified True Copy of Annual Income Tax Return for 2010 (BIR Form 1702 stamped “received” by the BIR, or for foreign entities, the appropriate government

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agency equivalent to the BIR in the foreign country where the foreign entity was registered for recognition or creation of its juridical personality or capacity. (c) Letters from the Prospective Bidder or Lead Member’s banks or potential lenders expressing their willingness to lend it, or the entity it will form if it becomes the Winning Bidder, at least Four Billion Eight Hundred Million Philippine Pesos (Php 4,800,000,000.00). This amount can be reduced by the excess of the Prospective Bidder or related entity’s net worth over One Billion Two Hundred Million Philippine Pesos (PhP 1,200,000,000.00).

m. Notarized Letter to Apply for Pre-Qualification – using the form of Annex QD-13 without modification.

To be submitted by the Prospective Bidder.

n. Notarized Corporate Authorizations and Designation of Authorized Representative:

(1) For Partnerships or Corporations: Authority to Apply to Pre-Qualify and Designation of Authorized Representative, using the form in Annex QD-14A without modification.

To be submitted by the Prospective Bidder.

(2) For Consortia: Consortium Member’s Authority to Participate in Consortium and Apply to Pre-Qualify, and Designation of Lead Member and Authorized Representative of Consortium, using the form in Annex QD-14B without modification.

To be submitted by each Consortium Member

11.7.4 Opening and Evaluation of Qualification Documents: Days 1-10

The SBAC shall undertake the following for each applicant Bidder:

a. The SBAC shall open the envelope containing the Qualification Documents and undertake a preliminary examination to determine the presence or absence of the required documents and forms, and summarize the results of such examination in Table 11.7.4-1.

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TABLE 11.7.4-1. PRESENCE/ABSENCE OF QUALIFICATION DOCUMENTS PER BIDDER

Name of Bidder: ______

Document Annex Present/ Remarks No. Absent Business Plan QD-1A/ QD-1B Basic Information Sheet QD-2 Certified True Copy of SEC Certificate QD-3 Notarized Certification of Absence of QD-4 Unsatisfactory Performance Record Construction Experience QD-5 Construction Contractor’s Notarized QD-6 Statement of Willingness to Participate Certified True Copy of Contractor’s License QD-7 from PCAB for Large B Classification/License Category AAA Certified True Copy of Valid ISO QD-8 9001:2000 Certification Operation and Maintenance Experience QD-9 O&M Contractor’s Notarized Statement of QD-10 Willingness to Participate Key Personnel QD-11 Proof of Financial Capability QD-12 Letter to Apply for Pre-Qualification QD-13 Corporate Authorizations and Designation QD-14 of Authorized Representative Overall Rating of Applicant Bidder - Complete/Incomplete b. If all the required Qualification Documents of a Bidder are present, the Bidder shall be rated “complete.” If any required Qualification Document is absent, the Bidder shall be rated “incomplete,” and the SBAC shall forthwith pre-disqualify the applicant Bidder with such “incomplete” Qualification Documents.

The SBAC shall complete the process in Sections 4.0-a and 4.0-b of these BECP within Day 1.

The SBAC shall then conduct a detailed evaluation of the Qualification Documents of the remaining Bidders with complete Qualification Documents over a period of not longer than ten (10) days after the Bid submission deadline. It shall notify all Bidders as to whether they passed the pre-qualification stage within two (2) days of completing such evaluation. The detailed evaluation shall be conducted on a “pass-fail” basis as to the compliance of each of the submitted Qualification Documents with the legal, technical, and financial criteria set in Sections 3.0 and 5.4 of the ITB (Sections 2.0 and 3.0 of these BECP). The overall rating of each Bidder shall be “pre-qualified” if the Bidder “passed” all Pre-qualification Requirements. The overall rating shall be “pre-disqualified” if the Bidder “failed” any Pre-qualification Requirement. The SBAC shall summarize the results of the detailed evaluation in Table 11.7.4-2.

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TABLE 11.7.4-2 EVALUATION OF QUALIFICATION DOCUMENTS PER BIDDER

Name of Bidder: ______

Criterion Passed/ Reference Remarks Failed Document 1. Legal Requirements: 1.1 If the Prospective Bidder is a partnership or corporation: ______QD-1A, 2, a. Is it registered with SEC or equivalent entity? ______3, 4 b. Does it have no unsatisfactory performance record? 1.2 If the Prospective Bidder is a consortium, do all QD-1B, 2, members have no unsatisfactory performance ______3, 4 record? 2. Technical Requirements: 2.1 Construction Experience a. Is the Prospective Bidder/related entity’s cumulative cost of its completed similar projects at least equal to Php 6.0 B, including one project/structure costing at least Php 1.0 B? ______QD-5 b.Is the Construction Contractor willing to participate in the Project? ______QD-6 c. Does it have a valid Contractor’s License from ______QD-7 PCAB for Large B/Category AAA? d.Does it have a valid ISO 9001:2000 certification? ______QD-8 2.2 Operation and Maintenance Experience a. Does the Prospective Bidder/related entity have experience in O&M of a toll expressway of at least three years in the past ten years? ______QD-9 b. Is the O&M Contractor willing to participate in the Project? ______QD-10 2.3 Qualified Key Personnel Does the Prospective Bidder/related entity have the following key personnel: QD-11 a. Project Manager - CE, 20 years experience ______b. Design Manager - CE, 15 years experience ______c. O&M Manager – one project in last 10 years ______3. Financial Capability Requirements 3.1 Net Worth Does the Prospective Bidder/related entity have a net worth of at least PhP 1.2 B as of its latest audited financial statements, not earlier than 31 December ______QD-12 2010? 3.2 Taxable Income Does the Prospective Bidder/related entity have a total taxable income for 2010 or later of at least PhP ______QD-12 580 T? 3.3 Borrowing Capability Does the Prospective Bidder/related entity have letters from its banks/lenders stating that they are willing to lend it at least PhP 4.8 B for the Project? (This can be reduced by the excess of its net worth over Php 1.2 B) ______QD-12 Overall Rating of Applicant Bidder – Pre-qualified/Pre-disqualified

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In reviewing the Prospective Bidder’s compliance with the Construction Experience requirement in Section 11.2a of the ITPB, if a Prospective Bidder submits the name of more than one Construction Contractor to fulfill this requirement, then as long as at least one Construction Contractor is “passed,” then the Prospective Bidder will be rated “passed” for that criterion.

Similarly, in reviewing the Prospective Bidder’s compliance with the Operation and Maintenance requirement in Section 11.2b of the ITPB, if a Prospective Bidder submits the name of more than one O&M Contractor to fulfill this requirement, then as long as at least one O&M Contractor is “passed,” then the Prospective Bidder will be rated “passed” for that criterion.

Apart from failure to meet any of the prequalification criteria and requirements mentioned above, a Prospective Bidder may also be disqualified for any of the following reasons: a. Failure to comply with any terms, conditions, and instructions of the Invitation Documents. b. Material misrepresentation in any Qualification Documents or other communication with the DPWH and the SBAC. c. Illegal conduct or attempt to influence the DPWH and the SBAC’s evaluation of the Qualification Documents or the results of the Pre-Qualification process. d. Other grounds for disqualification of Bidders under the BOT Law and all applicable laws.

The SBAC shall summarize the results of the evaluation of the Qualification Documents of all Bidders in Table 11.7.4-3.

TABLE 11.7.4-3. SUMMARY OF EVALUATION OF QUALIFICATION DOCUMENTS OF ALL BIDDERS Name of Bidder Pre-qualified/ If Pre-disqualified, Reasons Pre-disqualified 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

The SBAC shall recommend to the DPWH Secretary, for approval, the results of the pre- qualification process.

Upon the DPWH Secretary’s approval of the results of the pre-qualification, the SBAC shall send a written notice to each Bidder that was rated “pre-qualified” and invite it to submit its Bid to the SBAC within one hundred (120) days.

The SBAC shall also send a written notice to each Bidder that was rated “pre-disqualified,” stating the reasons for his pre-disqualification.

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The SBAC shall complete the entire pre-qualification process, including issuance of notices of results, within ten (10) days after the deadline for the submission of the Documents, i.e., within Days 1-10.

11.7.5 Documents Comprising the Bid

The requirements in this Section 5.0 of these BECP are drawn from Section 4.0 of the Instructions to Qualified Bidders (ITQB) for the Project.

11.7.5.1 Contents of Bid

Each pre-qualified Bidder shall submit to the DPWH its Bid composed of three sets of documents in separate envelopes, as follows:

a. Bid Letter including Bid Security - Envelope No. 1.

b. Technical Proposal - Envelope No. 2.

c. Financial Proposal - Envelope No. 3.

11.7.5.2 Bid Letter including Bid Security, and Additional Requirements for Consortia with New Members - Envelope 1

The Pre-Qualified Bidder shall submit the following documents in Envelope 1:

a. Bid Letter, using the form in Annex BL-1 of the ITQB without modification.

b. Authority to Participate in the Bid and Designation of Authorized Representative.

(1) For a Pre-qualified Bidder which is a partnership or corporation: using the form in Annex BL-2A of the ITQB without modification. (2) For a Pre-qualified Bidder which are Consortium: using the form in Annex BL-2B of the ITQB without modification, to be submitted by each Consortium Member

c. Bid Security, using the form in Annex BL-3 without modification. The Bid Security must be an irrevocable standby letter of credit issued by a universal bank or commercial bank licensed by the Bangko Sentral ng Pilipinas, payable to the DPWH, in the minimum amount of One Hundred Fifty Million Philippine Pesos (PhP 150,000,000.00). A list of such banks is given in Annex BL-5 of the ITQB. The Bid Security shall be valid for one hundred twenty (120) calendar days after the Bid Proposal Submission Date. The Bid Security shall guarantee that the Pre-qualified Bidder complies with all its obligations under the Instructions to Bidders.

d. For a Pre-qualified Bidder which is a Consortium, the following additional requirements:

(1) An updated Business Plan using the form in Annex BL-4 of the ITQB, providing information on the final composition of the Consortium and the percentage interests of each Member. The information in this updated Business Plan shall supersede any information previously provided in Annex QD-1B of the ITQB, and must be submitted even if there are no changes in the composition of the Consortium or the percentage interests of each Member since the Qualification Documents Submission Date

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(2) Required attachments to Annex BL-4 of the ITQB: for any new Consortium Members substituted for a Consortium Member which has withdrawn from the Consortium:

(a) Basic Information Sheet using the form of Annex QD-2 of the ITQB, including its required attachments. (b) Notarized Certification of Absence of Unsatisfactory Performance Record- using the form in Annex QD-4 of the ITQB without modification.

11.7.5.3 Technical Proposal - Envelope No. 2

The Technical Proposal of the Pre-qualified Bidder shall include the following information in Envelope No. 2:

a. Traffic Study - Annex TP-2 of the ITQB. This shall indicate the following:

(1) Pre-qualified Bidder’s estimates of the traffic growth rates and projections on the Project.

(2) Assumptions and methodology used in calculating them.

b. Conceptual Engineering Design - Annex TP-3 of the ITQB. This shall indicate the following elements of the Conceptual Engineering Design for the Project, which shall conform to the prescribed Minimum Performance Standards and Specifications (MPSS) included as Part III of the Bidding Documents, and provide a level of detail that will enable quantities to be estimated up to the plus/minus fifteen percent (+15%) of the final quantities.

(1) Phase II Works:

(a) Conceptual engineering design of the expressway, on and off ramps, Phase I-Phase II interconnection, at-grade roads, and appurtenant structures, including the following:

i. Layout plan of the expressway including location of on and off ramps, and other major structures, at a scale of 1:1000. This should show, among other things, the layout of the foundation of the expressway and ramps. ii. Profile for the main expressway in relation to the existing ground, at a scale of Horizontal-1:1000 and Vertical-1:100. iii. Typical cross-sections of the expressway at a scale of 1:200. iv. Plans, elevations, and typical cross-sections, at scales of 1:1000, 1:100, and 1:100, respectively, of the on and off ramps, at-grade roads, and other structures. v. Preliminary design drawings of viaduct structures including superstructure, substructure, foundation and drainage system at a scale of 1:200. vi. Preliminary design analyses and computations for the main expressway and structures.

(b) Conceptual design of the toll facilities:

Layout plan, at a scale of 1:1000, showing the location of the toll facilities, including toll plazas and traffic safety devices.

(c) Conceptual design of the toll plazas:

i. Layout plan indicating the elements of the toll plazas, including carriageway

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tapers, platform, lighting, inspection tunnel, control building and parking areas; longitudinal section on the corner line of the plaza. ii. Toll platform indicating the layout of the lane area in the initial (opening year) configuration and all subsequent expansions. iii. Toll islands indicating the toll booths and protection structures. iv. Toll lanes, both entry and exit. v. Canopy showing the minimum clearance, shape, form, material and signs. vi. Toll plaza building, indicating the layout with approximate areas of each room and elevations of at least two sides. vii. Parking areas. viii.Technical gallery for power and data cables. ix. Road signs. x. Fences. xi. Power and lighting. xii. Tolling systems/equipment.

(d) Conceptual design of expressway traffic safety devices.

i. Pavement markings. ii. Traffic signs, iii. Crash cushions

(2) Phase I Adjustment Works

Plans, elevations, and typical cross-sections, at scales of 1:1000, 1:100, and 1:100, respectively, of the adjustment works. . c. Construction Plan - Annex TP-4 of the ITQB. This shall include the following elements to be prepared in accordance with the prescribed MPSS for Construction:

(1) Construction organization for the Project, identifying key personnel and positions, and subcontractors.

(2) Construction methodology and procedures.

(3) Quality control system.

(4) Construction schedule, milestones, and S-curve.

(5) Major construction equipment to be used.

(6) Traffic management plan during Construction.

(7) Health, safety, and security program for Construction, in accordance with the rules of the Philippine Department of Labor and Employment and Department of Health. d. Operation and Maintenance (O&M) Plans - Annex TP-5 of the ITQB. This shall indicate the following elements which shall meet the prescribed MPSS for O&M.

(1) Operation Plan.

(a) Organization for operation of the NAIA Expressway, including staffing pattern. (b) Toll operation and collection system

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(c) Traffic safety and control system.

(2) Maintenance Plan.

(a) Method and procedures for routine and periodic maintenance, including preventive maintenance and rehabilitation, of the main expressway and related structures on a life-cycle basis (b) Method and procedures for maintenance of toll plazas, buildings, equipment and utilities.

11.7.5.4 Financial Proposal - Envelope No. 3

a. The Pre-Qualified Bidder’s Bid Amount shall be indicated in Annex FP-2 of the ITQB. The Bid Amount is a fixed amount, expressed in pesos, equivalent to the Government Financial Support (GFS) which, if the Pre-Qualified Bidder becomes the Winning Bidder, the DPWH shall disburse to the Bidder during the construction of the NAIA Expressway, subject to the terms of the Concession Agreement. The Bid Amount shall not exceed the ceiling of PhP ______(amount to be specified by the DPWH in the ITQB).

b. Supporting Financial Model – using the format in Annex FP-3 of the ITQB, to be submitted in both hard copy and electronic form, in Microsoft Excel format, showing all relevant formulas. (compact disc). The model shall contain the following minimum information, on at least an annual basis, until the end of Concession Period the details of which are given in Annex FP-3 of the ITQB:

(1) Summary of Financial Analysis

(2) Project Costs, Totals and by Year

(3) Projected Cash Flow Statements, by Year

(4) Projected Income Statement, by Year

(5) Balance Sheet, by Year

(6) Amortization Schedule, by Year

(7) Operation and Maintenance Expenditures

(8) Application of Toll Rate Adjustment Formula, by Year

(9) Assumptions

11.7.6 Opening and Evaluation of Bids

The requirements for the Opening and Evaluation of Bids provided in this Sections 6.0 of these BECP are based on Sections 4.0 and 5.0 of the ITQB for the Project.

The SBAC shall evaluate the Bids based solely upon the documents in Envelopes No. 1 to 3 submitted by the Bidders. The SBAC shall conduct the evaluation on a “pass-or-fail” basis using

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the criteria and procedures set out in Sections 4.0 and 5.0 of the ITQB (Section 5.0 of these BECP).

11.7.6.1 Opening and Evaluation of Bid Letter including Bid Security (Envelope No. 1): Day 1

The SBAC shall undertake the following for each Bid:

a. The SBAC shall first open Envelope No. 1 - Bid Letter including Bid Security - and evaluate the documents to determine if they pass or fail the criteria enumerated in Sections 4.2 and 4.3 of the ITQB (Section 5.2 of these BECP). The SBAC shall summarize the results of the evaluation for every Bidder in Table 11.7.6.1-1.

TABLE 11.7.6.1-1. EVALUATION OF BID LETTER INCLUDING BID SECURITY (ENVELOPE NO. 1) PER BIDDER

Name of Bidder: ______

Document Annex Passed/ If Failed, Failed Reasons 1. Bid Letter BL-1 Is the Bid Letter complete and signed using BL-1? 2. Authority to Participate in the Bid and Designation of Authorized Representative a. For a Pre-Qualified Bidders which is a partnership BL-2a or Corporation: Is the authority complete and complying with BL-2a? b. For a Pre-Qualified Bidders which is a Consortium, BL-2b to be submitted by each Consortium Member: Is the authority complete and complying with BL-2b? 3. Bid Security: BL-3 a. Form submitted: ______Is the form compliant with the requirement, including the conditions? b. Amount submitted: Php ______Is the amount sufficient as required? 4. For Pre-Qualified Bidders which are Consortiums, the following additional requirements: a. Updated Business Plan BL-4 Does this provide the final composition of the consortium and the % interest of each member? b Required attachments for new/substitute Consortium Members (1) Basic Information Sheet: Is this complete? QD-2 (2) Notarized Certification of Absence of Unsatis- factory Performance: Does this show that the entity has no unsatisfactory performance record? QD-4 Overall Rating of Bid Letter including Bid Security (Envelope No. 1) – Complying/Non-complying:

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b. If the documents in Envelope No. 1 “passed” all the set criteria, the overall rating for Envelope No. 1 shall be “complying” - and the evaluation shall proceed to the Technical Proposal in Envelope No. 2 (Section 6.2 of the ITQB).

c. If any document in Envelope No. 1 “failed” any of the set criteria, the overall rating for Envelope No. 1 shall be “non-complying.” The SBAC shall automatically reject the entire Bid, and immediately return the unopened Envelopes No. 2 (Technical Proposal) and 3 (Financial Proposal) to the Bidder concerned.

The SBAC shall summarize the results of the evaluation of the Bid Letters of all Bidders in Table 11.7.6.1-2.

TABLE 11.7.6.1-2. SUMMARY OF EVALUATION OF BID LETTERS OF ALL BIDDERS Name of Bidder Complying/ If Failed, Reasons Non-complying 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

The entire process of evaluation of the Bid Letter, including Bid Security, shall be completed within Day 1.

11.7.6.2 Opening and Evaluation of Technical Proposals (Envelope No. 2): Days 1-10

The SBAC shall undertake the following for each Bidder that were rated “qualified” in the qualification stage:

a. The SBAC shall open the Technical Proposal (Envelope No. 2) of each Bidder in the presence of all qualified Bidders. The SBAC shall conduct a preliminary examination of the Technical Proposal to determine the presence or absence of the required documents as against the checklist in Annex TP-1 of the ITQB, and summarize the results of such examination in Table 11.7.6.2-1.

TABLE 11.7.6.2-1 PRESENCE/ABSENCE OF TECHNICAL PROPOSAL DOCUMENTS (ENVELOPE 2) PER BIDDER Name of Bidder: ______

Document Annex Present/ Remarks Absent 1. Traffic Study TP-2 2. Conceptual Engineering Design TP-3 3. Construction Plan TP-4 4. Operation and Maintenance (O&M) Plans TP-5 Overall Rating on Presence/Absence of Technical Proposal Documents - Passed/Failed:

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b. If all required documents are present, the Bidder is declared “passed.” If any required document is absent, the Bidder shall be rated “failed.” The SBAC shall automatically reject the entire Bid of such “failed” Bidder, and immediately return the unopened Envelope No. 3 (Financial Proposal) to that Bidder. c. The SBAC shall then conduct a detailed evaluation of the Technical Proposal of each remaining complying Bidder over a period of not longer than eight (8) days after the opening of Envelope No. 2. The evaluation shall assess the compliance of the elements of the Technical Proposal with the criteria set in Section 4.5 of the ITQB (Section 5.3 of these BECP). b. The SBAC shall summarize results of the detailed evaluation of the Technical Proposal for each Bidder in Table 11.7.6.2-2.

TABLE 11.7.6.2-2 SUMMARY OF EVALUATION OF TECHNICAL PROPOSAL PER BIDDER Name of Bidder: ______

Element Passed/ If Failed, Reason Failed 1. Traffic Study a. Does the study indicate the traffic growth rates and projections over the Concession Period? ______b.Does the study give the assumptions and methodology used in making the traffic projections? ______2. Conceptual Engineering Design (CED) a.Does the CED present all the required elements of the Phase II Works in conformance to the MPSS, including plans and design analyses in the required degree of detail for: ______(1) Expressway, ramps and related structures? ______(2) Toll facilities? ______(3) Toll plazas? ______(4) Traffic safety devices? b. Does the CED present all the required elements of the Phase I Adjustment Works in conformance to the MPSS, including plans in the required degree of ______detail? 3. Construction Plan a. Is the Construction organization for the Project ______presented? b. Are the Construction methodology and procedures explained? ______c. Is the quality control system provided? ______d. Are the Construction schedule, milestones, and S- curves shown? ______e. Are the major pieces of equipment to be used ______presented? f. Is the traffic management plan during Construction presented? ______g. Is the health, safety and security program given? ______4. Operation and Maintenance Plans

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Element Passed/ If Failed, Reason Failed a. Are the organization for operation, toll operation and collection system, and traffic safety and control system presented in the Operations Plan? ______b. Are the methods and procedures for routine and periodic maintenance of the expressway on a life- cycle basis, and the maintenance of the toll plazas, buildings, and utilities presented in the Maintenance ______Plan? Overall Rating of Technical Proposal - Complying/Non-complying: c. If the Bidder “passed” all the requirements of all the elements of the Technical Proposal, it shall be rated “complying.” If the Bidder “failed” any requirement of any element of the Technical Proposal, it shall be rated “non-complying.” The SBAC shall summarize the results of the evaluation of the Technical Proposals of all Bidders in Table 11.7.6.2-3.

TABLE 11.7.6.2-3 SUMMARY OF EVALUATION OF TECHNICAL PROPOSALS OF ALL BIDDERS Name of Bidder Complying/ If Non-complying, Non-complying Reasons 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

d. Within two (2) days after completing the evaluation of the Technical Proposals, the SBAC shall send written notices to the Bidders with complying and non-complying Technical Proposals on the results of the evaluation of their respective Technical Proposals. The notices to the Bidders with non-complying Technical Proposals shall likewise indicate the reasons for their non-compliance.

The SBAC shall complete the evaluation of the Technical Proposals, including the issuance of the written notices to the Bidders on the results of the evaluation, within ten (10) days after the opening of the Technical Proposals, i.e., within Days 1-10.

All Bidders whose Technical Proposals have been rated as “complying” shall be considered on equal footing insofar as the Technical Proposals are concerned - i.e., no bonus is given to Technical Proposals that include a CED/Construction Plan/O&M Plans which exceed the MPSS requirements. Hence, the Winning Bidder shall be determined on the basis of the Financial Proposals - i.e., it shall be the Bidder with the lowest complying Bid Amount, subject to post- qualification (Sections 6.3 and 7.0).

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11.7.6.3 Opening and Evaluation of Financial Proposals (Envelope No. 3): Days 11-12

The SBAC shall undertake the following for each Bidder whose Technical Proposal has been declared “complying:”

a. The SBAC shall open the Financial Proposal (Envelope No. 3) of each Bidder with a complying Technical Proposal. The opening shall be done in view of all such complying Bidders.

b. The SBAC shall evaluate, in detail, the Financial Proposal of each such Bidder, particularly the Bid Amount. It shall indicate the results in Table 11.7.6.3-1.

TABLE 11.7.6.3-1 SUMMARY OF EVALUATION OF FINANCIAL PROPOSAL PER BIDDER

Name of Bidder: ______

Element Passed/ If Failed, Failed Reasons 1. Bid Amount: ______a. Is the Bid Amount presented in terms of the required ______GFS in Pesos? b. Is the Bid Amount within the set GFS ceiling? ______2. Supporting Financial Model: Does the Financial Model include all the required minimum information? ______Overall Rating of Financial Proposal – Complying/Non-complying:

The SBAC shall summarize the results of the detailed evaluation of the Financial Proposals of all Bidders in Table 11.7.6.3-2.

TABLE 11.7.6.3-2 SUMMARY OF EVALUATION OF FINANCIAL PROPOSALS OF ALL BIDDERS Name of Bidder Bid Amount Complying/ If Failed, Reasons (GFS) Non-complying 1. 2. 3. 4. 5. 6. 7. 8.

The SBAC shall then rank the Bid Amounts (GFS) of all Bidders with “complying” Financial Proposals from the lowest to the highest. The SBAC shall declare the lowest Bid Amount as the lowest complying Bid (LCB). The ranking shall be shown in Table 11.7.6.3-3.

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TABLE 11.7.6.3-3 RANKING OF BID AMOUNTS OF COMPLYING FINANCIAL PROPOSALS Name of Bidder Bid Amount (GFS) 1. 2. 3. 4. 5.

The SBAC shall, by Day 12, send written notices to the Bidders on the results of the evaluation of their respective Financial Proposals.

The entire process of financial evaluation, including the issuance of notices to the Bidders on the results of the evaluation, shall be completed within two (2) days after the opening of the Financial Proposals, i.e., within Days 11-12.

11.7.7 Post-Qualification of Bidder with the Lowest Complying Bid (LCB): Days 13-14

a. The SBAC shall conduct a post-qualification of the Bidder with the LCB. The post- qualification consists in verifying the information and statements made in the Bidder’s Prequalification Documents, Bid Letter, Technical Proposal, and Financial Proposal as to their correctness and validity. Post-qualification shall be conducted over a period not to exceed two (2) days after the determination of the Bidder with the LCB, i.e., within Days 13- 14.

b. If the Bidder with the LCB passes the post-qualification, the SBAC shall declare its Bid GFS as the lowest complying and post-qualified Bid (LCPB), and the SBAC shall recommend to the DPWH Secretary the award of the Concession Agreement to that Bidder.

c. If the Bidder with the LCB fails the post-qualification, the SBAC shall declare the Bidder with the second LCB as the Bidder with the LCB and shall undertake post-qualification on that Bidder. If that Bidder passes the post-qualification, the SBAC shall declare it as the Bidder with the LCPB, and the SBAC shall recommend to the DPWH Secretary the award of the Concession Agreement to that Bidder. Otherwise, the same process is repeated until the LCPB is declared.

11.8 NEDA ICC EVALUATION

NEDA ICC-Project Evaluation (PE) Form was jointly prepared by PMO-BOT, DBP, IFC, and the JICA Study Team and submitted to NEDA on May 26, 2011.

NEDA Technical Board started evaluation of PE Form and technical questions on how traffic forecast were made. The JICA Study Team explained about the JICA STRADA Software.

The Project Evaluation report was prepared by NEDA Technical Board on June 14, 2011 and the project was favorably forwarded to ICC Cabinet Committee (ICC-CC).

Meanwhile, the preliminary investors’ forum was held in June 2011 inviting domestic and foreign investors, banks and existing expressway concessionaires.

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The ICC-CC favorably evaluated the project and forwarded to NEDA Board for final approval of the project in July 2011, however, NEDA Board turned down the project due mainly to high cost of the project, unfavorable alignment and high government subsidy.

Thus, further action for the project was suspended.

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CHAPTER 12 SUPPLEMENTAL WORK

12.1 GRADE SEPARATION ALTERNATIVE STUDY

As alternative project of NAIAX, Grade Separation Alternative Study and C-5 Extension Alignment Study was conducted. This chapter described the summary of these studies and results only. The traffic analysis result and drawing was attached in Appendix Report.

(1) Location of Intersection

The grade separation plans in critical intersections along NAIAX were studied. The location of the targeting intersections is indicated in Figure 12.1-1.

FIGURE 12.1-1 LOCATION OF CRUCIAL INTERSECTION ALONG NAIAX PHASE-2

(2) Recommended Schematic Design of Grade Separation

The three (3) grade separations on the crucial intersection were planned and designed. The schematic designs on each grade separation are illustrated as Figure 12.1-2.

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Roxas Blvd. / MIA Road Intersection Cost Civil Work; 1,032Million Pesos ROW Cost; 24 Million Pesos Total: 1,056 Million Pesos

MIA Road / Domestic Road / Sucat Road Intersection Cost Civil Work; 955Million Pesos ROW Cost; 5 Million Pesos Total: 970 Million Pesos

Andrews Ave. / Tramo Road Intersection Cost Civil Work; 297Million Pesos ROW Cost; 103Million Pesos Total: 400 Million Pesos

FIGURE 12.1-2 SCHEMATIC DESIGN OF GRADE SEPARATION

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12.2 FURTHER NAIAX ALIGNMENT ALTERNATIVE STUDY

Concerned to the NAIAX alignment, further alternative study has been done. The three (3) alternatives are prepared, Parañaque River alignment, Airport Road alignment and MIAA Compound alignment. Table 12.2-1 explained the comparative analysis among alternatives. In the result, compared with the original alignment, all three alternatives are not recommended.

TABLE 12.2-1 COMPARATIVE ANALYSIS FOR NAIAX FURTHER ANALYSIS Route Map Evaluation  Civil work cost is higher by about 0.9 Billion Pesos due to construction in the river, longer ramps to Terminal I and Terminal II and Widening of river and reconstruction of revetment.  Parañaque River is a flood- Alignment prone river, thus widening of Parañaque River the river is required.  Need relocation of informal settlers (about 200 houses)

living within river ROW  Not recommended due to NAIA Navigational Height Limit, access ramps to Terminal I and Terminal II cannot be constructed. Alignment Airport Road Airport Road

 Airport Security Problem  Existing toll booth needs to be relocated  From Roxas Blvd. side, no access to Terminal III.  Vertical grade of 5% is required (standard is 4%).

Alignment  Additional ROW acquisition of 19.5 m. in width along Villamor MIAA Compound MIAA Air Base is required.

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12.3 C-5 EXTENSION ALIGNMENT ALTERNATIVES

(1) Alignment Study of C-5 Extension

Three (3) alignment alternatives of C-5 extension have been prepared. The comparative analysis is indicated as Table 12.3-1. The Alternative 3 was recommended for both Expressway and National Road Standard. The alternative 3 was recommended among Expressway Standard, and the alternative 3C among National Road Standard.

FIGURE 12.3-1 C-5 EXTENSION ALIGNMENT ALTERNATIVES

TABLE 11.3-1 COMPARATIVE ANALYSIS RESULT OF C-5 EXTENSION ALIGNMENT ALTERNATIVES Expressway National Road

Alt-1 Alt-2 Alt-3 Alt 1A Alt – 2B Alt – 3C Expressway/Road Length (km) 7.02 6.52 6.29 7.02 6.52 6.29 Land Area 19.92 16.01 15.20 32.32 21.31 20.45 ROW Affected (Ha) (20.44) (16.53) (15.72) Acquisition No. of Structure 550 520 500 900 890 850 Affected (No.) (560) (530) (510) Civil Work Cost 2.57 2.94 2.42 5.27 4.63 4.34 (Billion Pesos) (2.90) (3.27) (2.75) Land Acquisition 2.74 2.20 2.09 Cost 4.50 2.99 2.87 (2.81) (2.27) (2.16) Cost (Billion Pesos) Resettlement Cost 1.19 1.14 1.10 1.97 1.95 1.86 (Billion Pesos) (1.21) (1.16) (1.12) Total (Billion 6.50 6.28 5.61 11.74 9.57 9.07 Pesos) (6.92) (6.70) (6.03) (###) include Skyway connection

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(2) FRANCHISE ISSUE OF C-5 EXTENSION

There are some issues on the franchise of C-5 Extension as follows:

 UEM-MARA has a franchise for R-1 to R-3.  Citra Metro Manila Tollways Corp. has a franchise of Skyway with which C-5 Extension is connected.  If C-5 Extension is implemented by PPP, will an open bidding be done, or negotiated with UEM-MARA?  If C-5 Extension is implemented by DPWH as National Road Standard, UEM-MARA will complain.  It may take a long time to conclude a franchise issue.

12.4 ALTERNATIVE ANALYSIS BETWEEN NAIAX, GRADE SEPARATION AND C-5 EXTENSION

The comparative analysis among the alternatives, Original NAIAX plan, Grade Separation, C-5 Extension with expressway standard and C-5 Extension with National road standard have been carried out. Table 12.4-1 explains the route of the alternatives.

TABLE 12.4-1 COMPARATIVE ANALYSIS BETWEEN NAIAX, GRADE SEPARATION AND C-5 EXTENSION ALTERNATIVE C-5 Extension Grade NAIAX Expressway National Road Separation Standard Standard Distance / 4.6 km(6.5 km) 4 Intersections 6.52 km 6.52 km Location Note-1 Civil Work 9.66 2.29 4.34 2.75 Cost ROW / (Billion 0.95 0.13 4.73 3.28 Relocation Pesos) Total 10.61 2.42 9.07 6.03 GFS (Max) 5.00 Government Funding ROW 0.95 2.42 （All） 4.73 (ROW) 6.03 （All） (Billion Pesos) Total (Max) 5.95 Vehicle Operating 343 133 396 354 Cost Saving Benefit Travel Time 1,269 493 1,466 1,309 Cost Saving Total 1,612 626 1,862 1,663 Saving Implementation Schedule Completed in Completed in Completed in Completed in (assume to start Dec. 2016 June 2015 June 2017 June 2017 from July 2011)

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12.5 RECOMMENDATION

Based on the comparative analysis, the following are concluded and recommended.

(1) NAIAX Phase-2

 Being recommended to implement this project.  It is a long term solution for traffic capacity expansion.  Accessibility to NAIA Terminals will be greatly improved.  Image of the country will be highly improved by foreign/domestic investors due to easy access to NAIA: International/Domestic Gateway.  NAIAX will reduce traffic congestion of at-grade roads.  The Project is ready for tendering.

(2) Grade Separation Alternative

 It improves traffic condition at the intersection, but not for adjacent sections, thus it is not a long term solution.  If grade separation structures are built, construction of an expressway in the future will be practically impossible.

(3) C-5 Extension

 Timing of the implementation is uncertain due to franchise issue.  Franchise issues should be firstly concluded.  All kinds of efforts should be made to reduce negative social impacts. (over 500 houses or 3,000 people will be affected)

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CHAPTER 13 DPWH’S CURRENT PLAN OF NAIAX

13.1 PRESENT STATUS OF NAIAX The Philippine Amusement and Gaming Corporation (PAGCOR) has a plan to develop “Entertainment City” at the Manila Bay Reclamation Area which is located at the west end of NAIAX. The “Entertainment City” needs efficient access to NAIA Terminals I, II, and III.

The DPWH and PAGCOR discussed how to revive the NAIAX Prject and came to the conclusion that; a) NAIAX is re-planned to provide efficient access to NAIA Terminals I, II and III. Ramps will also be extended towards the “Entertainment City”. b) Locators at “Entertainment City” will provide construction fund for NAIAX through PAGCOR. With this financing, DPWH can drastically reduce the Government’s subsidy for construction cost. c) Memorandum of Agreement (MOA) was signed between the DPWH and PAGCOR to realize the above scheme.

13.2 PRESENT SCHEME OF NAIAX Based on the above development, the present (as of May 2012) scheme of NAIAX) is as shown in Figure 13.2-1.

NAIAX Project under the above new scheme, the project is being assessed by NEDA-ICC (as of May, 2012).

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FIGURE 13.2-1 REVISED NAIAX CONFIGURATION