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TACR: Philippines: Road Sector Improvement Project

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TACR: Philippines: Road Sector Improvement Project Technical Assistance Consultant’s Report Project Number: 41076-01 February 2011 Republic of the Philippines: Road Sector Improvement Project (Financed by the Japan Special Fund) Volume 2: Final Report Prepared by Katahira & Engineers International In association with Schema Konsult, Inc. and DCCD Engineering Corporation For the Ministry of Public Works and Transport, Lao PDR and This consultant’s report does not necessarily reflect the views of ADB or the Governments concerned, and ADB and the Governments cannot be held liable for its contents. All the views expressed herein may not be incorporated into the proposed project’s design. Republic of the Philippines DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS OFFICE OF THE SECRETARY PORT AREA, MANILA ASSET PRESERVATION COMPONENT UNDER TRANCHE 1, PHASE I ROAD SECTOR INSTITUTIONAL DEVELOPMENT AND INVESTMENT PROGRAM (RSIDIP) FINAL REPORT in association KATAHIRA & ENGINEERS with SCHEMA KONSULT, DCCD ENGINEERING INTERNATIONAL INC. CORPORATION Road Sector Institutional Development and Investment Program (RSIDIP): Final Report TABLE OF CONTENTS Page ABBREVIATIONS 1. INTRODUCTION ........................................................................................... 1-1 1.1 Background ............................................................................ 1-1 1.2 Objectives of the PPTA ............................................................ 1-1 1.3 This Final Report .................................................................... 1-2 2. PROJECT DESIGN ....................................................................................... 2-1 2.1 The Project............................................................................. 2-1 2.2 The PPTA .............................................................................. 2-1 3. EXPE RIENCE OF OTHER PROJECTS ........................................................ 3-1 3.1 Brief History........................................................................... 3-1 3.2 ADB Projects ......................................................................... 3-1 3.2.1 ADB’s Fourth Road Improvement Project .......................... 3-2 3.2.2 ADB’s Fifth Road Improvement Project ............................. 3-3 3.2.3 ADB’s Sixth Road Project ................................................ 3-4 3.3 World Bank Projects ................................................................ 3-5 3.4 Japan Bank for International Cooperation (JBIC).......................... 3-7 3.5 The Australian Agency for International Development (AusAID) ..... 3-8 4. DPWH’S FINANCIAL MANAGEMENT SYSTEM .......................................... 4-1 4.1 Objectives ............................................................................. 4-1 4.2 The Present Financial Management System ................................. 4-1 4.3 Problems with the Financial Management ................................... 4-3 4.4 Present and Planned Improvements .......................................... 4-5 5. THE FINANCING OF ROAD MAINTENANCE ............................................. 5-1 5.1 Objectives ............................................................................. 5-1 5.2 Status of Financing in the Road Infrastructure Sector .................. 5-1 5.3 Status of Road Maintenance Financing ....................................... 5-4 5.4 Policy to Support and Strengthen Road Maintenance of the National Road Network ............................................................ 5-7 6. INSTITUTIONAL CAPACITY BUILDING ...................................................... 6-1 6.1 Background ........................................................................ 6-1 6.2 Objectives .......................................................................... 6-2 6.3 Methodology ....................................................................... 6-2 6.4 Findings on the Institutional Capacity Building Components and DPWH Priorities ............................................................. 6-3 6.4.1 Previous (ICB) Initiatives by Development Partners in DPWH ................................................................... 6-3 KEI in association with SKI and DCCD i Road Sector Institutional Development and Investment Program (RSIDIP): Final Report 6.4.2 Constraints to Change: Policy and Institutional Deficiencies within DPWH ........................................... 6-7 6.5 Proposed ICB Programs ......................................................... 6-13 6.5.1 Identification Process ................................................. 6-13 6.5.2 Proposed ICB Projects ................................................. 6-13 6.5.3 Summary of Initial Cost Estimates ................................ 6-18 7. TRANSPORT SECTOR ROADMAP FOR FUTURE ADB PROJECTS IN THE PHILIPPINES..................................................................................... 7-1 7.1 Introduction ........................................................................... 7-1 7.2 Purpose of the Road Sector Policy Road Map ............................... 7-2 7.3 Philippine Road Sector Development Status................................. 7-2 7.4 Key Issues in the Sector........................................................... 7-7 7.4.1 Underinvestment in the Road Sector ............................. 7-7 7.4.2 Lack of Government Policy Coordination ........................... 7-9 7.4.3 Faster Achievement of the Millennium Development Goals... 7-9 7.4.4 Weak Investment Climate............................................... 7-10 7.4.5 Improving Economic Outlook for the Country .................... 7-10 7.4.6 Improving Private Sector Participation and Enabling Environment for Participation .......................................... 7-11 7.5 Sector Policy and Planning Framework........................................ 7-17 7.5.1 Philippine Development Needs ........................................ 7-17 7.5.2 Road Administration ...................................................... 7-18 7.5.3 DPWH Mandate ............................................................. 7-18 7.5.4 DPWH Vision, Mission, and Goals ..................................... 7-19 7.5.5 Road Sector Strategies................................................... 7-19 7.5.6 Key Measurable Targets ................................................. 7-21 7.5.7 DPWH Medium Term Public Investment Plan (2005-2010) ... 7-21 7.6 Government’s Institutional Arrangements and Capacity in the Sector ................................................................................... 7-23 7.7 Critical Areas for Managing Results, Developing Capacity, and Commitment to Institutional Reform .......................................... 7-27 7.7.1 DPWH Logical Framework for the Government’s Organization Performance Indicator Framework (OPIF) ....... 7-27 7.7.2 DPWH Updated Strategic Planning Framework ................... 7-28 7.7.3 DPWH Institutional Reforms............................................ 7-32 7.8 ADB Sector Experience............................................................. 7-34 7.8.1 Country Assistance Program Evaluation 2008 .................... 7-34 7.8.2 Transport Sector Experience ........................................... 7-36 7.8.3 CAPE Sector Recommendations ....................................... 7-36 7.8.4 Country Operations Business Plan 2009-2010.................... 7-37 7.9 Role of Other Development Partners in the Sector........................ 7-38 7.10 Intended Sector Outcomes and Key Outputs Supported by the ADB............................................................................. 7-49 7.11 Links to CPS Outcomes and Other Sector Themes ........................ 7-53 7.12 Indicative Areas for Intervention ............................................... 7-54 7.13 Monitoring Mechanism ............................................................. 7-71 KEI in association with SKI and DCCD ii Road Sector Institutional Development and Investment Program (RSIDIP): Final Report 7.13.1 Results Based Monitoring................................................ 7-7 8. PREPARATIONS FOR THE ROAD DESIGN ................................................ 8-1 8.1 Selection of Road Sections for Design in Phase 1 ......................... 8-1 8.2 Preliminary Work and Project Description.................................... 8-7 8.2.1 Contract Package 1........................................................ 8-7 8.2.2 Contract Package 2........................................................ 8-11 8.2.3 Contract Package 3........................................................ 8-19 8.3 Conditions of Bridges .............................................................. 8-26 8.4 Summary of Tranche 1 Road Package......................................... 8-26 8.5 Updated Unit Rates for Periodic Road Maintenance ....................... 8-29 8.6 Maintenance Options Considered ............................................... 8-29 8.7 Recommended Maintenance Schemes ........................................ 8-31 9. PAVEMENT DESIGN OF PHASE 1 OF THE PROJECT ............................. 9-1 9.1 Introduction .......................................................................... 9-1 9.2 Design Approach of the Selected Road Sections .......................... 9-1 9.2.1 Base Data for Design .................................................... 9-1 9.2.2 Design Consideration ..................................................... 9-2 9.3 Design Methodology ............................................................... 9-3 9.4 Summary of
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