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PCR: Philippines: Pasig River Environmental Management And Completion Report Project Number: 30308 Loan Numbers: 1745/1746 December 2010 Philippines: Pasig River Environmental Management and Rehabilitation Sector Development Program CURRENCY EQUIVALENTS Currency Unit – Peso (P) At Appraisal At Program Completion 1 March 2000 5 March 2009 P1.00 = $0.0544 $0.0204 $1.00 = P 40.91 $48.92 ABBREVIATIONS ADB – Asian Development Bank DENR – Department of Environment and Natural Resources DOH – Department of Health ECC – environmental compliance certificate EPA – environmental preservation area EUFS – environmental users fee system HUDCC – Housing and Urban Development Coordinating Council HLURB – Housing and Land Use Regulatory Board LGU – Local Government Unit LLDA – Laguna Lake Development Authority MMC – Metropolitan Manila Council MMDA – Metropolitan Manila Development Authority MOA – memorandum of agreement MWCI – Manila Water Company, Inc. MWSS – Metropolitan Waterworks and Sewerage System NGO – nongovernment organization PCG – Philippine Coast Guard PMO – project management office PRDP – Pasig River Development Plan PRRC – Pasig River Rehabilitation Commission RAP – resettlement action plan SDP – sector development program SLA – subloan agreement STP – sewage treatment plant URA – urban renewal area NOTES (i) The fiscal year (FY) of the government and its agencies ends coincide with the calendar year. (ii) In this report, "$" refers to US dollars. Vice-President C. L. Greenwood, Jr., Operations Group 2 Director General K. Senga, Southeast Asia Department (SERD) Director A. Jude, Energy and Water Division, SERD Team leader P. van Klaveren, Water Supply and Sanitation Specialist, SERD Team member A. L. Fernando, Assistant Project Analyst, SERD M. T. Nieto. Sr. Operations Assistant, SERD R. Butler, Social Development Specialist, SERD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA ii I. PROGRAM DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Policy Loan Outputs 3 C. Investment Loan Outputs 5 D. Program Costs 8 E. Disbursements 8 F. Program Schedule 9 G. Implementation Arrangements 9 H. Conditions and Covenants 9 I. Related Technical Assistance 10 J. Consultant Recruitment and Procurement 10 K. Performance of Consultants, Contractors, and Suppliers 10 L. Performance of the Borrower and the Executing Agency 10 M. Performance of the Asian Development Bank 11 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 12 D. Preliminary Assessment of Sustainability 12 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14 APPENDIXES 1. Program Framework 16 2. Policy Framework 20 3. Policy Framework Achievements 27 4. Program Framework Achievements 31 5. Environmental Action Plan Achievements 35 6. List of PCSS Contracts 39 7. Investment Project costs and Financing Plan (At Appraisal and Actual) 44 8. Investment Loan Contract Awards and Disbursements 45 9. Planned and Actual Implementation Schedule 46 10. Compliance with Loan Covenants 47 BASIC DATA A. Loan Identification 1. Country Philippines 2. Loan Numbers 1745, 1746 3. Program Title Pasig River Environmental Management and Rehabilitation Sector Development Program (1745 [policy loan], 1746 [investment loan]) 4. Borrower Philippines 5. Executing Agency Department of Finance (L1745) and Pasig River Rehabilitation Commission , PRRC (L1746) 6. Amount of Loan $100 Million (L1745) , $75 Million (1746) 7. Program Completion Report PCR:PHI 1198 Number B. Loan Data 1. Appraisal – Date Started 6 July 1999 – Date Completed 10 September 1999 2. Loan Negotiations – Date Started 12 August 1999 – Date Completed 19 August 1999 3. Date of Board Approval 20 July 2000 4. Date of Loan Agreement 21 July 2000 5. Date of Loan Effectiveness – In Loan Agreement 20 October 2000 – Actual 17 August 2000 – Number of Extensions None 6. Closing Date PolicyLoan (1745): – In Loan Agreement 30 June 2002 – Actual 11 December 2003 – Number of Extensions 2 (30 June 2003, 31 March 2004) Investment Loan (1746): – In Loan Agreement 31 January 2006 – Actual 5 March 2009 – Number of Extensions 2 (31 January 2008, 30 September 2008) 7. Terms of Loan For Policy Loan (1745): – Interest Rate 0.75% – Maturity (number of years) 15 years – Grace Period (number of years) 3 years For Investment Loan (1746): – Interest Rate 0.75% – Maturity (number of years) 25 years – Grace Period (number of years) 5 years iii 8. Terms of Relending (if any) N/A – Interest Rate – Maturity (number of years) – Grace Period (number of years) – Second-Step Borrower 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval Policy Loan (1745) 17 August 2000 11 December 2003 40 months Investment Loan (1746) 22 November 2000 5 March 2009 100 months Effective Date Original Closing Date Time Interval Policy Loan (1745) 17 August 2000 30 June 2002 22 months Investment Loan (1746) 17 August 2000 31 January 2006 65 months b. Amount Policy Loan ($ million) Category / Last Net Amount Tranche Original Allocation Revised Amount Amount Disbursed Undisbursed No. Allocation Canceled Available Balance 1 40 40 0 40 40 0 2 60 60 0 60 60 0 Investment Loan ($ million) Category or Subloan Original Last Amount Net Amount Undisbursed Allocation Revised Canceled Amount Disbursed Balance Allocation Available 01A Sanitation Service 2.60 2.70 2.70 2.61 0.10 Septic Tank Emptying Trucks 01B SPT Civil Works 3.00 3.60 3.60 0.40 3.20 01C SPT Plant and 4.40 6.10 6.10 1.01 5.09 Equipment 02A EPA Civil Works – 16.00 7.13 7.13 12.14 -5.01 Apartment & Housing Units 02B EPA Development 0.00 14.60 14.60 21.30 6.70 Parks & Walkways 02C EPA Community 3.50 8.87 8.87 3.20 5.66 Facilities 03 Urban Renewal 23.00 23.00 23.00 15.28 7.72 Areas 04 Project 3.00 3.00 3.00 2.05 0.95 implementation Assistance 05 IDC 9.50 5.00 5.00 5.00 0.00 06 Unallocated 10.00 1.00 1.00 0.00 1.00 Total 75.00 75.00 75.00 62.99 12.01 iv 10. Local Costs (Financed) - Amount ($) $19,148,917 - Percent of Local Costs 76.59% - Percent of Total Cost 30.4% C. Program Data 1. Program Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 54.00 43.85 Local Currency Cost 96.00 54.19 Total 150.00 98.04 2. Financing Plan ($ million) Appraisal Actual Foreign Local Total Foreign Local Total Implementation Costs Borrower Financed 0.0 69.5 69.5 0.0 35.0 35.0 ADB Financed 44.6 21.0 65.5 38.9 19.2 58.0 Other External Financing 0.0 5.5 5.5 0.0 0.0 0.0 Subtotal 44.6 96.0 140.5 38.9 54.2 93.0 IDC Costs Borrower Financed 0.0 0.0 0.0 0.0 0.0 0.0 ADB Financed 9.5 0.0 9.5 5.0 0.0 5.0 Other External Financing 0.0 0.0 0.0 0.0 0.0 0.0 Subtotal 9.5 0.0 9.5 5.0 0.0 5.0 54.1 96.0 150.0 43.9 54.2 98.0 Summary Borrower Financed 0.0 69.5 69.5 0.0 35.0 35.0 ADB Financed 54.1 21.0 75.0 43.9 19.2 63.0 Other External Financing 0.0 5.5 5.5 0.0 0.0 0.0 Total 54.1 96.0 150.0 43.9 54.2 98.0 v 3. Cost Breakdown by Program Component - Investment Loan, ADB-Financed ($ million) Component Appraisal Actual A. Sanitation 10.00 4.01 B. Environmental Preservation Areas (EPAs) 19.50 36.64 C. Urban Renewal 23.00 15.28 D. Project Implementation Assistance 3.00 2.05 E. Interest During Construction 9.50 5.00 Unallocated 10.0 0.00 Total 75.00 62.99 4. Program Schedule Investment Loan (1746) Item Appraisal Estimate Actual Part A: Sanitation 1. Site Identification and Feasibility Study January – December 2000 January 2001 – August 2003 2. Prepare Bid documents for Turnkey March – December 2000 January 2002 – Contract December 2003 3. Bidding, Evaluation, and Contract Award January 2001 – December October 2003 – June 2001 2006 4. Implementation of Sanitation Component January 2002 – December July 2006 – August 2005 2007 Part B: Environmental Preservation Areas (EPA) 1. Resettlement January 2000 – December January 2000 – 2001 December 2008 2. Development Plan for EPAs January – December 2000 January 2000 – December 2001 3. Design July 2000 – June 2001 July 2000 – December 2005 4. Bidding, Evaluation, and Contract Award January - December 2001 January 2001 – December 2008 5. Implementation of EPA component July 2001 – June 2004 January 2002 – December 2008 Part C: Urban Renewal Areas (URA) 1. Development Plan for URAs January – December 2000 January 2000 – December 2005 2. Design July 2000 – June 2001 January 2003 – December 2005 3. Bidding, Evaluation, and Contract Award January – December 2001 April 2005 – December 2008 4. Implementation of URA Component July 2001 – December 2004 January 2006 – December 2008 Part D: Implementation Assistance 1. Consultant Selection January – March 2000 January 2000 – December 2001 2. Consultant Services March 2000 – December 2004 vi 5. Program Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress For Policy Loan (L1745) From 31 Jul 2000 to 30 Nov 2000 S S From 1 Dec 2000 to 31 Dec 2000 S HS From 1 Jan 2001 to 31 Jan 2001 S S From 1 Feb 2001 to 30 Apr 2001 S HS From 1 May 2001 to 31 May 2002 S S From 1 Jun 2002 to 31 Dec 2003 S PS For Investment Loan (1746) From 31 July 2000 to 31 Aug 2001 S S From 1 Sep 2001 to 30 Apr 2003 S HS From 1 May 2003 to 31 Aug 2007 S HS From 1 Sep 2007 to 31 Mar 2009 PS PS HS = highly satisfactory, PS = partially satisfactory, S = satisfactory.
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