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Document of The World Bank Public Disclosure Authorized Report No: 20767-PH PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$60.0 MILLION AND A GLOBAL ENVIRONMENT FACILITY GRANT OF SDR 1.0 MILLION (US$ 1.3 MILLION EQUIVALENT) TO THE REPUBLIC OF THE PHI-LIPPINES FOR THE Public Disclosure Authorized METRO MANILA URBAN TRANSPORT INTEGRATION PROJECT MAY 23, 2001 East Asia and Pacific Region Tr2nsport Sector Unit Public Disclosure Authorized CURRENCYEQUIVALENTS (ExchangeRate EffectiveMay 23, 2001) CurrencyUnit = PhilippinePesos (PhP) 1 PhP = US$0.02 US$1 = PhP50 FISCALYEAR January 1 -- December 31 ABBREVIATIONSAND ACRONYMS ADB Asian DevelopmentBank CAS CountryAssistance Strategy DBM Departmentof Budget and Management DENR Departmentof Environmentand Natural Resources DPWH Departmentof PublicWorks and Highways DOTC Departmentof Transportationand Communications ECC EnvironmentalCompliance Certificate EDSA Epifanio de los SantosAvenue EIAPO EnvironmentalInpact AssessmentProject Office GEF Global EnvironmentFacility GHG GreenhouseGas ICB InternationalCompetitive Bidding LGU Local GovernmentUnit LRT Light Rail Transit MARIPAS Marikina,Rizal, Pasig MMDA MetropolitanManila Development Authority MMURTRIP Metro ManilaUrban Transport IntegrationProject MMUTIS Metro ManilaUrban TransportationIntegration Study NCB National CompetitiveBidding NCTS National Center for TransportationStudies NEDA National Econormicand DevelopmentAuthority NGO Non-GovernmentalOrganization NMT Non-MotorizedTransport NRIMP-1 FirstNational Roads Improvementand Manag. Project PMO ProjectManagement Office QCBS Quality- and Cost-BasedSelection TEC TrafficEngineering Center URPO Urban Roads ProjectOffice VOC Vehicle OperatingCost Vice President: Jemal-ud-dinKassun CountryDirector: Vinay K Bhargava Sector Director: Jitendra N. Bajpai Task Team Leader: Sally L. Burninghiam PHILIPPINES METRO MANILAURBAN TRANSPORT INTEGRATION PROJECT CONTENTS A. ProjectDevelopment Objective Page 1. Projectdevelopment objective 3 2. Globalobjective 3 3. Key performanceindicators 3 B. StrategicContext 1. Sector-relatedCountry Assistance Strategy (CAS) goal supportedby the project 4 2. Main sectorissues and Governmentstrategy 5 3. Sectorissues to be addressedby the project and strategicchoices 9 C. ProjectDescription Summary 1. Projectcomponents 10 2. Key policy and institutionalreforms supported by the project 13 3. Benefitsand targetpopulation 13 4. Institutionaland implementationarrangements 14 D. Project Rationale 1. Projectalternatives considered and reasons for rejection 16 2. Major relatedprojects financedby the Bank and other developmentagencies 17 3. Lessonslearned and reflectedin proposedproject design 18 4. Indicationsof borrowercommitment and ownership 19 5. Value addedof Bank supportin this project 19 E. SummaryProject Analysis 1. Economic 20 2. Financial 21 3. Technical 22 4. Institutional 22 5. Environmental 23 6. Social 24 7. SafeguardPolicies 26 F. Sustainabilityand Risks 1. Sustainability 26 2. Critical risks 27 3. Possiblecontroversial aspects 28 G. Main Loan Conditions 1. EffectivenessCondition 28 2. Other 28 H. Readinessfor Implementation 29 I. Compliancewith BankPolicies 29 Annexes Annex 1: ProjectDesign Summary 30 Annex 2: DetailedProject Description 34 Annex 3: EstimatedProject Costs 43 Annex4: Cost BenefitAnalysis Summary 45 Annex5: FinancialSummary 54 Annex6: Procurementand DisbursementArrangements 55 Annex7: ProjectProcessing Schedule 71 Annex8: Documentsin the ProjectFile 72 Annex 9: Statementof Loans and Credits 73 Annex 10: Countryat a Glance 75 Annex 11:Project Information Brochure 77 Annex 12:Institutional Framework for Traffic Engineeringand TranspottPlanning 79 Annex 13:Global EnvironmentFacility (GEF) supported Non-Motorized Transport component - 84 MarikinaBicycle Network. Estimation of the benefitsderiving from the savingsin greenhousegas emissions Annex 14:Global EnvironmentFacility (GEF) supported Non-Motorized Transport component - 93 MarikinaBicycle Network. Incremental Cost Analysis MAP(S) IBRD30420 - TrafficManagement and MARIPAScomponents IBRD 30421 - SecondaryRoads components PHILIPPINES Metro ManilaUrban TransportIntegration Project Project Appraisal Document East Asia and Pacific Region Transport SectorUnit Date: May 23, 2001 TeamLeader: Sally L. Bumningham CountryDirector: Vinay K. Bhargava SectorDirector: JitendraN. Bajpai ProjectID: P057731 Sector(s): TU - Urban Transport LendingInstrument: Specific Investment Loan (SIL) Theme(s): PovertyTargeted Intervention: N GlobalSupplemental ID: P066509 Team Leader: Sally L. Burningham SectorManager/Director: Jitendra N. Bajpai SupplementFully Blended? Yes Sector(s): TU - Urban Transport ProgramFinancing Data [XI Loan [ ] Credit [ Grant [ Guarantee [ Other: For Loans/Credits/Others: Amount (US$m):US$60 million | ProposedTerms (IBRD): Fixed-SpreadLoan (FSL) Grace period (years): 8 Years to maturity:20 Commitmentfee: 0.85% the first four years; 0.75% Front end fee on Bank loan: 1.00% thereafter FinancingPlan (US$m): Source Local Foreign Total BORROWER 36.30 0.00 36.30 IBRD 29.60 30.40 60.00 GLOBALENVIRONMENT FACILITY 0.50 0.80 1.30 Total: 58.60 39.00 97.60 BorrowerlRecipient:REPUBLIC OF PHILIPPINES Responsibleagency: DPWH Departmentof PublicWorks and Highways Address: BonifacioDrive, Port Area,Metro Manila,Philippines ContactPerson: Mr. TeodoroEncarnacion, Undersecretary for TechnicalServices Tel: 63-2-3043228 Fax: 63-2-3043485 Email: n/a OtherAgency(ies): Metro ManilaDevelopment Authority Address: MMDABuilding, EDSA Corner OrenseStreet, Guadalupe, Makati City, Metro Manila, Philippines ContactPerson: Mr. BenjaminS. Abalos, Chairman Tel: 63-2-8820908 Fax: 63-2-8820859 Email: ogm(@mmda.gov.ph City of Marikina,Metro Manila Address: Brgy. Sta. Elena, Shoe Avenue,Marikina City, Metro Manila,Philippines ContactPerson: Mayor BayaniFernando Tel: 63-2-646 1634 Fax: 63-2-646 5277 Email: [email protected] Estimated disbursements ( Bank FYXUS$m): FY 2001 1 i2002 1 0 2003 0 2004 J 2005 I 2006 i Annual 0.00 1.70 8.23 1 25.60 I 17.35 7.12 Cumulative 0.00 1.70 9.93 35.53 52.88 60.00 Project implementationperiod: 5 years Expected effectiveness date: 09/01/2001 Expectedclosing date: 09/01/2006 OCS PAD F.w- Rev MmdC,2 -2 - A. ProjectDevelopment Objective 1. Projectdevelopment objective: (see Annex 1) The project developmentobjective of the Metro ManilaUrban Transport Integration Project (MMURTRIP)is to assist the Governmentof Philippinesin enhancingthe economicproductivity and qualityof life of Metro Manilaresidents by improvingthe operationalefficiency and safety of the transport system with better opportunitiesfor accessto publictransport and nonmotorizedtransport, the dominant transportmodes of low-incomeresidents. To this end, the project will implementschemes of trafficmanagement to improveaccess to newly opened Light Rail Transit stationsand transferopportunities between road-basedpublic transportmodes, pedestriancirculation, road frontagecontrols, street lighting,and traffic circulationin general.Physical measuresin the project corridors/areaswill also improvecritical interchanges and provideroad accessand missinglinks. To promotethe use of nonmotorizedtransport, the projectwill implementa localbike path networkand a supportingawareness campaign. Institutional measures will aim to strengthenthe MetropolitanManila Development Authority (MMDA), the agencyresponsible for coordinating developmentplans and programs,and specifically,traffic managementacross the 12 cities and five municipalitiesof Metro Manila. 2. Global objective: (see Annex I) The globalenvironment objective of the proposedNonmotorized Transport Global EnvironmentFacility (GEF)supported component is to reducegreenhouse gas emissionsby promotingthe use of zero-emission bicycle and pedestriantransport in the City of Marikinaas an alternativeto greenhousegas-emitting motorizedtransport. A secondobjective is to demonstrateand publicizethe benefits and viabilityof bicyclesas an alternativetransport mode to encouragereplication of this pilot programin other parts of Metro Manila, elsewherein the Philippines,and in other countries. 3. Key performanceindicators: (see Annex 1) The key performanceindicators, to be measuredalong the projectcorridors, are: Objective Actions Indicators A. Providebetter opportunities Improvetravel conditions, * Reducedtravel time. for accessto public transport includingthe related safetyand * Sustainedproportion of public facilitiesby improvedtraffic environmentalaspects, along the transportuse. management. three most heavilyused public * Improved satisfactionof public transportcorridors in Metro transport users. Manila(along Light Rail Transit Line 3; EDSA; LRT Line 2-AuroraBoulevard, and the SouthemCorridor). B. Enhanceaccess from the Implementa seriesof projects in * Reducedtravel time. outer areas to Metro Manila. MarikinaValley on the key * Sustainedproportion of public access routes to Metro Manila. transportuse. * Improvedsatisfaction of public transport users. -3 - Objective Actions Indicators C. Improveoperational Invest in strategicsecondary * Reducedtravel time. efficiencythrough an improved roads. * Sustainedproportion of public road hierarchy. transportuse. * Improved satisfactionof public transport users. D. Enhancequality of life Promotethe use of nonmotorizedSustained or increasedmode share for throughincreased use of transportthrough a pilot non-motorisedtransport trips. non-motorisedtransport and demonstrationin one of the local thereby address air pollution. governmentunits