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World Bank Document Document of The World Bank Report No.: ICR0000445 Public Disclosure Authorized IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-70060) ON A LOAN IN THE AMOUNT OF US$150.0 MILLION Public Disclosure Authorized TO THE REPUBLIC OF THE PHILIPPINES FOR A FIRST NATIONAL ROADS IMPROVEMENT AND MANAGEMENT PROJECT (APL) Public Disclosure Authorized (PHASE I) June 27, 2008 Transport, Energy and Mining Unit Public Disclosure Authorized Sustainable Development Department East Asia and Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective February 2007) Currency Unit = Philippine Peso (PhP) PhP1 = US$0.02245 US$1 = PhP 44.55 FISCAL YEAR January 1 to December 31 ABBREVIATIONS AND ACRONYMS American Association of State Highway and AASHTO JICA Japan International Cooperation Agency Transportation Officials ABC Approved Budget Contract LAPRAP Land Acquisition and Resettlement Action Plan ADB Asian Development Bank LTPBM Long-Term Performance-Based Maintenance AFCS2 Maputo - Southern Africa Two M&E Monitoring & Evaluation API(s) Annual Poverty Indicator(s) MIS Management Infrastructure System APL Adaptable Program Loan MTPDP Medium-Term Philippine Development Plan Business Improvement Implementation BIIP(s) MYPS Multi-Year Programming and Scheduling Project(s) BL Bantay Lansangan NCB National Competitive Bidding BoM Bureau of Maintenance NCR National Capital Region BRPS Better Roads Philippines Study NEDA National Economic Development Agency CAS Country Assistance Strategy NPV Net Present Value National Roads Improvement and Management COA Commission on Audit NRIMP Project DOF Department of Finance NRS National Roads System New Zealand Agency for International DPWH Department of Public Works and Highways NZAID Development EIA Environmental Impact Assessment OMB Office of Management and Budget IRR Internal Rate of Return PDO(s) Project Development Objective(s) electronic New Government Accounting e-NGAS PMP Preventive Maintenance Program System ERR Economic Rate of Return PMS Pavement Management System ExCOM Executive Committee PRM Physical Resource Management ExIS Executive Information System PROC Procurement FM Financial Management PRS Philippine Road Sector GDP Gross Domestic Product QAG Quality Assurance Group GoP Government of Philippines QEA Quality at Entry Assessment GPPB Government Procurement Policy Board QSA Quality of Supervision Assessment HMP Highway Maintenance/Management Project RAP Resettlement Action Plan ICB International Competitive Bidding RBIA Road and Bridge Information Authority Intensive Learning Implementation ILI RIMSS Road Information Management Support System Completion and Results Report IROW Infrastructure Right-of-Way RMA Road Maintenance Authority) JBIC Japan Bank for International Cooperation SEMS Social and Environmental Management System Vice President: James W. Adams Country Director: Bert Hofman Sector Manager: Junhui Wu Project Team Leader: Ben L.J. Eijbergen ICR Team Leader: Ben L.J. Eijbergen PHILIPPINES First National Roads Improvement and Management Project (Phase 1) CONTENTS Data Sheet A. Basic Information....................................................................................................... i B. Key Dates...................................................................................................................i C. Ratings Summary....................................................................................................... i D. Sector and Theme Codes .......................................................................................... ii E. Bank Staff.................................................................................................................. ii F. Results Framework Analysis..................................................................................... ii G. Ratings of Project Performance in ISRs ................................................................... v H. Restructuring (if any)................................................................................................ v I. Disbursement Profile............................................................................................... vi 1. Project Context, Development Objectives and Design........................................... 1 2. Key Factors Affecting Implementation and Outcomes .......................................... 7 3. Assessment of Outcomes ...................................................................................... 13 4. Assessment of Risk to Development Outcome..................................................... 17 5. Assessment of Bank and Borrower Performance ................................................. 18 6. Lessons Learned.................................................................................................... 21 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ................................................................................................. 22 Annex 1 Project Costs and Financing...................................................................... 23 Annex 2a. Outputs by Component –Civil Works....................................................... 24 Annex 2b. Outputs by Component –Business Improvement Implementation Planning (BIIP)............................................................... 25 Annex 2c. Project Cost by Component ...................................................................... 29 Annex 3. Economic and Financial Analysis............................................................. 30 Annex 4. Bank Lending and Implementation Support/Supervision Processes ........ 32 Annex 5. Beneficiary Survey Results....................................................................... 34 Annex 6. Stakeholder Workshop Report and Results .............................................. 35 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR................. 36 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders................... 38 Annex 9. List of Supporting Documents.................................................................. 39 MAP No. 30623R A. Basic Information First National Road Improvement Country: Philippines Project Name: and Management Project Project ID: P039019 L/C/TF Number(s): IBRD-70060 ICR Date: 06/27/2008 ICR Type: Core ICR DEPARTMENT OF FINANCE Lending Instrument: APL Borrower: (DOF) Original Total Commitment: US$150.0M Disbursed Amount: US$138.2M Environmental Category: A Implementing Agencies: Department of Public Works and Highways (DPWH) Cofinanciers and Other External Partners: ADB (for RIMSS only) B. Key Dates Process Date Process Original Date Revised / Actual Date(s) Concept Review: 09/23/1998 Effectiveness: 07/07/2000 07/07/2000 Appraisal: 10/12/1999 Restructuring(s): Approval: 02/15/2000 Mid-term Review: 07/19/2002 Closing: 06/30/2004 03/31/2007 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: High Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Unsatisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Moderately Unsatisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Unsatisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation Quality Assurance Group (QAG) Indicators Rating Performance Assessments (if any) Potential Problem Project at No Quality at Entry Assessment (QEA): None any time (Yes/No): Problem Project at any time Quality of Supervision Assessment Yes Satisfactory (Yes/No): (QSA): DO rating before Moderately Satisfactory Closing/Inactive status: i D. Sector and Theme Codes Original Actual Sector Code (as percent of total Bank financing) Central government administration 18 16 Roads and highways 82 84 Theme Code (Primary/Secondary) Infrastructure services for private sector development Primary Primary Other financial and private sector development Secondary Secondary Pollution management and environmental health Secondary Secondary Technology diffusion Secondary Secondary E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jean-Michel Severino Country Director: Bert Hofman Vinay K. Bhargava Sector Manager: Junhui Wu Jitendra N. Bajpai Project Team Leader: Ben L.J. Eijbergen Denis Robitaille ICR Team Leader: Ben L.J. Eijbergen ICR Primary Author: Peter Ludwig F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The purpose of National Roads Improvement and Management Program (NRIMP) is to ensure the preservation of an improved national roads system (NRS) in an environmentally, socially and financially sustainable manner. NRIMP will include three phases: design (NRIMP-1), initiation (NRIMP-2) and operation (NRIMP-3). NRIMP-1 will: (a) prepare detailed designs and phased implementation plan for new organizational structures including an independent organization such as a road maintenance authority (RMA) or equivalent for the national road system (NRS), allowing them to be managed in a commercial fashion; (b) establish a sustainable financing mechanism, such as a road fund or equivalent, dedicated to preserving the national roads, to be funded from road user charges and based on actual level of maintenance needs and road usage; (c) undertake the development and establishment
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