Technical Assistance Consultant’s Report

Project Number: 41076-01 February 2011

Republic of the : 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,

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

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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

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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 Designed Road Sections ...... 9-9 9.5 Design Plans and Typical Road Sections...... 9-9 9.6 Summary of Cost Estimates by Road Section ...... 9-9 9.7 Proposed Implementation Schedule ...... 9-13

10. CONTRACT PACKAGING, CONSTRUCTION SCHEDULE, AND PREQUALIFICATION/BIDDING DOCUMENTS FOR TRANCHE 1...... 10-1 10.1 Contract Packaging ...... 10-1 10.2 Construction Schedule ...... 10-2 10.3 Prequalification Documents ...... 10-2 10.4 Bidding Documents ...... 10-3

11. ECONOMIC EVALUATIONS ...... 11-1 11.1 General Approach and Methodology...... 11-1 11.1.1 Economic Evaluation Model ...... 11-1 11.1.2 Economic Applications ...... 11-2 11.2 Economic Evaluations for Tranche 1 ...... 11-5 11.2.1 Ranking Methodology ...... 11-5 11.2.2 Evaluation Methodology ...... 11-5 11.2.2 Evaluation Results...... 11-6 11.3 Sensitivity and Risk Analysis ...... 11-7 11.4 Benefit Distribution Analysis ...... 11-8

12. ENVIRONMENTAL ISSUES ...... 12-1 12.1 Introduction ...... 12-1 12.2 Methodology ...... 12-1 12.3 Screening Environmental Impacts and Mitigation Measures...... 12-2

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12.4 Environmental Monitoring Plan...... 12-3 12.5 Capacity Building of ESSO and Other Implementing Agencies ..... 12-3 12.6 Stakeholder Consultations ...... 12-4 12.7 Conclusions ...... 12-4

13. SOCIO-ECONOMIC, POVERTY, GENDER AND ETHNICITY IMPACT ANALYSIS...... 13-1 13.1 Brief Profile of the Project Areas...... 13-4 13.1.1 Bauang- Road (Provinces of and Benguet)...... 13-1 13.1.2 -Bugallon Road ( and Pangasinan Provinces) ...... 13-3 13.1.3 Palo-Carigara-Ormoc Road (Leyte Province) ...... 13-4 13.1.4 Daang Maharlika (Liloan-Naval ) Leyte Provinces)...... 13-5 13.1.5 -Capiz Road (Provinces of Iloilo and Capiz) ...... 13-5 13.1.6 Dumaguete North Road (Province of Negros Oriental) .... 13-6 13.1.7 Dipolog-Oroquieta City Road (Provinces of Zamboanga Del Norte and Misamis Occidental) ...... 13-7 13.1.8 Butuan- de Oro-Iligan Road (Provinces of and Agusan del Sur)...... 13-8 13.1.9 - Road (Provinces of Bukidnon and Norte Cotabato) ...... 13-9 13.2 Socio-Economic, Poverty, Gender and Ethnic Analysis ...... 13-15

14. RESETTLEMENT FRAMEWORK (Tranches 2 & 3)...... 14-1 14.1 Introduction ...... 14-1 14.2 Project Impacts ...... 14-2 14.3 Policy and Legal Framework ...... 14-2 14.4 Bridging the Gaps between GOP Policy and ADB’s IRP ...... 14-8 14.5 Entitlements ...... 14-10 14.6 Impact on Gender and Other Vulnerable Groups...... 14-14 14.7 Procedures for Formulating Resettlement Plans ...... 14-17 14.8 Implementation Arrangements ...... 14-17 14.9 Consultation and Public Participation ...... 14-19 14.10 Eligibility Provisions ...... 14-20 14.11 Grievance Redness Mechanism ...... 14-20 14.12 Implementation Schedule ...... 14-21 14.13 Resettlement Budget...... 14-23

15. PROJECTS, ECONOMY AND ENVIRONMENTAL FRAMEWORK FOR TRANCHES 2 AND 3 ...... 15-1 15.1 Project Listing, Evaluation and Ranking ...... 15-1 15.2 Prioritization of Projects for Tranches 2 and 3 ...... 15-3 15.3 Environmental Assessment for Roads Under Tranches 2 and 3..... 15-4

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ANNEXES

Annex 1 : ICB Concept Papers Annex 2 : Selected Philippine Economic and Social Indicators, 2000-2007 Annex 3 : DPWH Infrastructure Development Process Annex 4 : Comparative Scheme Annex 5 : Itemized Cost Annex 6 : Construction Schedule Annex 7 : Financial and Economic Cost of Vehicle Annex 8 : Summary of Economic Evaluation Base Data and Results Annex 9 : Environmental Assessment and Review Framework (EARF)

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A B B R E V I A T I O N S

AADT Annual Average Daily Traffic AC Asphalt Concrete ACEL Association of Contractors and Equipment Lessors, Inc. ADB Asian Development Bank ADS Application Data Sheet AFP Applications for Prequalification AIs Additional Information API Agency Performance Indicators APs Affected Persons AusAID Australian Agency for International Development BAC Bidding and Awards Committee BDF Bidding Forms BDS Bid Data Sheet BIIPs Business Improvement and Implementation Projects BL Bantay Lansangan BMS Bridge Management System BOM Bureau of Maintenance BOT Build-Operate-Transfer BRP Better Roads Philippines Study BRS Bureau of Research and Standards CADT Certificate of Ancestral Domain Title CALT Certificate of Ancestral Land Title CAP Capital Cost CENRO Community Environment and Natural Resources Officer CFMS Comptrollership and Financial Management Service CHRDP Comprehensive Human Resource Development Plan CLOA Certificates of Land Ownership Award CNC Certificate of Non Coverage COA Commission on Audit COF Contract Forms Coffey ID Coffey International Development CREMA Contracts for Rehabilitation and Maintenance CPES Contractor’s Performance and Evaluation System CoPES Consultant’s Performance Evaluation System DA Designated Accounts DAC Development Assistance Committee

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DBM Department of Budget and Management DE District Engineer DENR Department of Environment and Natural Resources DEO District Engineering Office DILG Department of Interior and Local Government DO Department Order DOF Department of Finance DOJ Department of Justice DOLE Department of Labor and Employment DOTC Department of Transportation and Communications DPWH Department of Public Works and Highways EA Executing Agency EIA Environmental Impact Assessment EARF Environmental assessment and review framework ECA Environmentally Critical Areas ECC Environmental Compliance Certificate ECP Environmental Critical Projects EIRR Economic Internal Rate of Return EIS Environmental Impact Statement ELC Eligible Countries EMA External Monitoring Agent EMB Environmental Management Bureau EMK Equivalent Maintenance Kilometer EMP Environmental Management Plan EMMP Environmental Management and Monitoring Plan e-NGAS Electronic New Government Accounting System EO Executive Order ESAL Equivalent standard axle load ESSO Environment and Social Services Office ERQ Employer’s Requirements FIDIC Federation International Des Ingenieurs-Conseils FM Financial Management FMIC Financial Management and Internal Control FPIC Free and Prior Informed Consent FS Feasibility Study GAA General Appropriations Act GAAM Government Accounting and Auditing Manual GAF Grievance Action Form GCC General Conditions of Contract

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GDP Gross Domestic Product GHC Grievance Handling Committee GOP Government of the Philippines GVW Gross Vehicle Weight HDM Highway Development Management HDM-4 Highway Development and Management Version 4 Program HMP Highway Management Project HRLDP Human Resource and Leadership Development Plan HRM Human Resource Management HUDCC Housing Urban Development Coordinating Council IA Instructions to Applicants IACB Internal Audit Capacity Building IAS Internal Audit Service IBRD International Bank for Reconstruction and Development ICB Institutional Capacity Building ICB International Competitive Bidding ICCs Cultural Communities ICT Information and Communications Technology IEE Initial Environmental Examination IES Impact Evaluation Study IMA Internal Monitoring Agent INT Institutional Integrity IO Implementing Office IPAP Indigenous Peoples Action Plan IPE Independent Procurement Evaluator IPRA Indigenous Peoples’ Rights Act IPs Indigenous Peoples IROW Infrastructure Right of Way IRI International Roughness Index IRR Implementing Rules and Regulations IRP Involuntary Resettlement Policy ITA Independent Technical Audit ITB Instructions to Bidders JBIC Japan Bank for International Cooperation JICA Japan International Cooperation Agency JPCP Jointed Plain Concrete Pavement JRCP Jointed Reinforced Concrete Pavement KEI Katahira & Engineers International LAR Land Acquisition Resettlement

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LAPRAP Land Acquisition Plan and Resettlement Action Plan LGU Local Government Unit LISR Island Strategic Road Network Development Study LTO Land Transportation Office LTPBMC Long-Term Performance Based Maintenance by Contract MBA Maintenance by Administration MBC Maintenance by Contract MCA Multi-Criteria Analysis MIS Monitoring and Information Service MOA Memorandum of Agreement MOU Memorandum of Understanding MRIC Municipal RP Handling Committee MTPDP Medium-Term Philippine Development Program MTPIP Medium Term Public Investment Program MVUC Motor Vehicle User Charge MYPS Multi-Year Programming and Scheduling System NCIP National Commission on Indigenous Peoples NEDA National Economic Development Authority NECS Non Environmentally Critical Projects NECPs Non-Environmental Covered Projects NEPC National Environmental Protection Council NGO National Government Organization NHA National Housing Authority NRIMP National Road Improvement and Management Program NTPP National Transportation Policy and Planning NPV Net Present Value O&M Operation and Maintenance OECF Overseas Economic Cooperation Fund ODA Official Development Assistance PAGASA Philippine Atmospheric, Geophysical & Astronomical Services Authority PAHRDF Philippines-Australia Human Resource Development Fund PAPs Project Affected Persons PCC Particular Conditions of Contract PCCP Portland Cement Concrete Pavement PCR Project Completion Report PD Presidential Decree PDR Project Description Report PEISS Philippine Environmental Impact Statement System PEGR Philippines-Australia Partnership for Economic Governance Reforms

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PEMAPS Project Environmental Monitoring and Audit Prioritization Scheme PEPAC Price Escalation and Price Adjustment Committee PER Public Expenditure Review PID Public Information Division PNP Philippine National Police PMO Project Management Office PMO-ADB Project Management Office-Asian Development Bank PMO-FS Project Management Office-Feasibility Studies PMS Pavement Management System PMS Project Monitoring System PMOMS Project Management Office Monitoring System POCW Procurement Office for Civil Works POs Peoples’ Organizations PPP Public-Private Partnerships PPTA Project Preparatory Technical Assistance PTG Procurement Transparency Group QA Quality Assurance RA Republic Act RBIA Road and Bridge Information Application REAPMP Road Enhancement, Asset Preservation and Management Program RF Resettlement Framework RIC Resettlement Implementation Committee RIMSS Road Information and Management Support System RMMS Routine Maintenance Management System ROW Right-of-Way RP Resettlement Plan RPR Review Process Report RSA Road Safety Audit RSIP Road Sector Improvement Project SAIDI Southeast Asia Interdisciplinary Development Institute SBDs Standard Bidding Documents SEMS Social Environmental Management System SI Sensitivity Indicator SN Structural Number SOEs Statement of Expenditures SPC Strategic Planning Committee SPQD Standard Prequalification Documents SRSF Special Road Support Fund SwV Switching Values

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SV Site Visit TA Technical Assistance TARAS Traffic Accident Reporting and Analysis System TCT Transfer Certificate of Title TD Tax Declaration TNCs Term Network Contracts TOR Terms of Reference UP University of the Philippines VOC Vehicle Operating Cost WAN Wide Area Network WB World Bank

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1. INTRODUCTION

1.1 Background 1. The Government of the Philippines requested the Asian Development Bank (ADB) during its 2007 Country Programming Mission for a Project Preparatory Technical Assistance (PPTA) to provide funds for a Road Sector Improvement Project (hereinafter referred to as RSIP). The PPTA was included in ADB’s Country Operations Business Plan (2007-2008), and in ADB’s pipeline for non- lending products and services for 2008. 2. The request was based on an outline concept paper for the RSIP, prepared by the Department of Public Works and Highways (DPWH) in July 2007. The concept paper envisaged a US$500M project, including a technical and financial assistance package comprising preventive maintenance and/or rehabilitation of selected national roads, as well as institutional capacity building components in support of its mandate and development objectives. 3. The National Economic Development Authority (NEDA) favourably reviewed the DPWH concept paper for the PPTA on 12 December 2007. ADB dispatched a Mission which undertook the fact-finding activities on 10-14 March 2008. 4. The PPTA will have a total cost of US$800,000. The Government of the Philippines requested ADB to provide US$660,000 equivalent counterpart amount. In turn, ADB requested that the PPTA should be financed on a grant basis by the Japan Special Fund, funded by the Government of Japan. The Government of the Philippines financed the remaining US$140,000 by providing the necessary office accommodation and services, remuneration, etc, mostly in kind. The Philippine Government was advised that the approval of the PPTA does not commit ADB to finance any ensuing project. 5. On 2 July 2008, ADB officially approved PPTA to the Government of the Philippines. Katahira & Engineers International (KEI) was selected in 29 August 2008 for undertaking the PPTA Project. KEI is being assisted by the national consulting firms SCHEMA Konsult and DCCD Engineering Corporation. The work started last 29 September 2008 and scheduled to be completed in June 2009.

1.2 Objectives of the PPTA 6. The PPTA is making preliminary preparations for a project (RSIP) that will have the purpose of improving the Philippines national road network by carrying out periodic road maintenance/asset preservation, rehabilitation/improvement of selected national roads, and improve DPWH’s institutional capability. 7. This is in accordance with ADB’s general transport strategy for the Philippines, aiming to promote pro-poor economic growth and support Government’s priority investment program in general. Not the least, the project would serve to maximize benefits from previous ADB financed projects focused on maintaining and improving existing Philippine road network. 8. The project is intended to be divided in three Tranches (Phases): Tranche 1: maintenance projects for asset preservation only, to be implemented in 2010- 2011. Tranche 2: maintenance projects including road improvements and rehabilitation, for possible implementation in 2012-2014. Tranche 3: also including projects for road improvements and rehabilitation, for possible implementation in 2015-2017.

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The contents and financing of each Tranche will be agreed separately between ADB and the Government of the Philippines. 9. Most of the work in the PPTA concerns the selection, design and evaluation of road sections for asset preservation in Tranche 1. Consequently, most chapters in this report are about the work towards Tranche 1. 10. Tranches 2 and 3 are further away in time and not yet formally committed. Much can happen before implementation. Design, project evaluations and close environmental assessments would all be premature at this stage. Some more open and approximate estimates will be needed for tentative assessments, however.

1.3 This Final Report 11. According to its Terms of Reference, the PPTA shall submit the following reports in the cause of its work:  Inception Report. Work plan with the Consultant’s intended methodology for each main task. Submitted in October 2008.  Progress Reports. Submitted shortly after the end of each month and including summaries of progress on activities undertaken, work plans for the following month, and any problems that may require the attention of DPWH and ADB.  Interim Report. Describing the work undertaken and results achieved during the first three months after the start of the project. Submitted in January 2009.  Draft Final Report Containing all work with the PPTA and submitted around 08 April 2009, except for the Bidding Documents which will be submitted two or three weeks later.  Final Report (this report) with improvements or corrections to the Draft Final Report that may be requested by DPWH, by other Government agencies (if any), and/or by ADB. The Final Report is estimated to be submitted at least two weeks after the receipt of the comments.

12. The contents of this Final Report can be divided in three main parts, corresponding to the different areas to be covered by the PPTA: Chapters 2-7: The framework and general preparations for the investments in the maintenance project (conditions, planning, management, economy, etc.). Chapters 8-11: The proposed design and program of implementation of the maintenance project, including its expected economic benefits. Chapters 12-14: Possible environmental, social and other effects of the maintenance project, as well as actions to be taken to prevent or compensate for negative effects. 13. As mentioned in Paragraph 9 above, the above chapters in this report concern the works towards Tranche 1, including the detailed design as well as the economic evaluations and analysis of possible environmental or social effects of project implementation. The framework for similar tasks regarding Tranches 2 and 3, which may be undertaken by other consultants is compressed in Chapter 15.

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2. PROJECT DESIGN

2.1 The Project 1. This PPTA is the first step in the Road Sector Improvement Project as a whole, the main purposes are to: (i) select, design and evaluate suitable road projects for asset preservation to be implemented in the first Tranche during the years 2010-2011; and (ii) select and tentatively evaluate other priority projects for the intended, subsequent Tranches 2 and 3. The more precise designs and evaluations for the Tranches 2 and 3 are planned to be undertaken in parallel with the implementations of Tranches 1 and 2, respectively. As used here, “evaluation” includes the assessments of a variety of economic and social benefits of the projects, as well as possible environmental impacts, effects for ethnic minorities, possible needs for land acquisition and resettlement, etc. 2. The second purpose of the PPTA is to assess the status of institutional capacity building (ICB) efforts in DPWH, including ongoing projects by different development partners, and recommend priorities for the continuation of ICB as part of the Project. The implementation of these priorities, if agreed with DPWH, could follow the implementations of the respective Tranches. Proposed issues to be tackled in the ICB are listed in Chapter 6 of this report. 3. Although this PPTA was prepared and agreed by both ADB and DPWH and is now nearing its completion, the continuation of the Project as a whole until now is ‘only’ plans and intentions. There is little doubt that it will be agreed by both parties, and also accepted by government, but there are no formal commitments yet. Both the budgets and the timing for the three Tranches are being considered separately by different parties, although they probably have similar intentions. These uncertainties are normal for a Project such as this, but they do make it difficult (if not impossible) for the PPTA to prepare any precise plans beyond June 2009.

2.2 The PPTA 4. The Consultants’ general design for the PPTA with its organization, staff and staffing schedule, work plan including intended procedures for the different tasks to be undertaken, etc., were described in the Inception Report submitted in 27 October 2008. This design for the PPTA, based on the Inception Report, has been followed on the whole, although with some changes due to unforeseen developments. Two international and one local project staff had to be replaced in the course of the work, and for a few other staff, the time plans had to be changed. The collection of some data also required more time than anticipated. 5. The resulting delays were not worse than they could be recovered, however. The Consultants strived to maximize efficiency. A high degree of flexibility has also been necessary, which makes it difficult to rely on a fixed design for the PPTA. The official work hours were usually exceeded by most staff, including several of the Consultants’ own employees. Some have sufficient competence in different areas to step in where and when it may be needed. 6. The submission of this report on time required a special organisation. With ADB’s approval, two field surveys for the eight roads in Tranche 1 were undertaken in parallel by different private companies, from 6 February until mid-March: one for pavement investigations (including core samples), and one

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for road roughness measurements. Their schedules were timed for the fastest possible completions and deliveries with good enough results. After the measurements were completed for each road, the results were sent the same day by fax or phone connection to the Consultant’s office and used for the detailed design. In turn, after the completion of the detailed design the total construction cost for that road was calculated and provided for economic evaluation. These four steps were overlapping for different roads and thereby undertaken in parallel without any loss of time, like good factory processes. 7. It would nevertheless have been difficult for the Consultants to complete this PPTA on time without the good help provided by DPWH, including most of its different offices but perhaps in particular ADB-PMO and PMO-FS.

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3. EXPERIENCES OF OTHER PROJECTS

3.1 Brief History 1. Government initiated road programs to promote development since the early 1970s, as appears from the statements of objectives in all development plans prepared since 1972. In terms of resource and capacity constraints, the road network has now increased by more than 100% since 1970. Several international financing agencies contributed over a range of different issues: road constructions, reconstruction and rehabilitation projects, and TA’s addressing various issues like policy, planning and training. ADB, Japan’s Overseas Economic Cooperation Fund (OECF), the World Bank, the United States and Australia are the main sources of assistance. 2. Most international assistance has focused on the National road network, but there have also been significant initiatives towards the minor provincial and roads. ADB’s assistance to National roads concentrated during many years on Mindanao and the Visayas, while OECF was directed towards Manila and a north-south axis to link Luzon with Leyte and Mindanao. The World Bank was more nationwide, and the US Agency for International Development devoted a large proportion of its efforts to rural and farm-to-market roads.

3.2 ADB Projects 3. The ADB financed projects in the road sector were designed in support of socio-economic development and maintenance of the road network. Between 1970 and 1997, ADB provided 13 loans for 10 projects, amounting to US$626.5 million for improvement of about 4,000 km of national roads and about 1,500 km of rural roads. These projects represented about 15% of the national roads but less than 2% of the total rural roads. In addition to the improvement or rehabilitation of existing roads, ADB also provided TA studies designed to assist in road transport policy improvement and more efficient management of the road network. 4. In an Impact Evaluation Study (IES) from December 1997, six ADB road projects were evaluated in some detail. The three projects completed in 1978- 1982 (Cotabato-General Santos, Iligan--Butuan and – Santa Rosa) were still in fair to good conditions as of 1997, believed to be due to a sound construction with rigid concrete pavements. The road projects completed in 1985-1989, however (Mindanao Secondary and Feeder Roads, and the First and Second Road Improvement Projects), were mostly in unsatisfactory conditions, believed to be due to poor design and construction followed by neglected maintenance. Most of the Mindanao Secondary and Feeder Roads were constructed to a gravel standard, which deteriorated rapidly and required complete rehabilitation after only a few years. Most of all road projects evaluated by the IES suffered from long delays and cost overruns, said to reflect ‘generic’ problems of the Philippine road sector institutions and contractors 5. While ADB’s First Road Improvement Project is said to have produced at least some well engineered, durable roads, the subsequent Second, Third and Fourth Road Improvement Projects produced roads which performed poorly to badly, some of them failing even before the end of the maintenance period. The main reasons have been taken to be bad workmanship and sub-standard materials, in particular for base courses judged by poor or, in some cases,

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dishonest supervision. Inadequate drainage and lack of routine maintenance also contributed.

3.2.1 ADB’s Fourth Road Improvement Project

6. The fourth ADB road improvement project from March 1987 to (in practice) January 1995 was prepared to include improvements or rehabilitation to 745 km of National roads, mainly in Cebu, Negros and Mindanao. A pilot study to improve the maintenance of national roads through the introduction of maintenance by contract (MBC) was also included. 7. At the time of appraisal, the total time envisaged for the project was 5 years and 3 months. This was subsequently extended four times, to a total of 5 years and 10 months after the projected closing date. This long delay were due to several causes, such as: (1) The consulting services was started 14 months later than intended, mainly due to a protest from one short listed firm, claiming that its proposal had not been properly evaluated. (2) Substantial time was spent in the tender and award process. The average was 7 months between bid opening and notice to proceed, but one contract took 18 months to process due to extended negotiations and budget constraints. (3) Several long construction delays, with time extensions up to 869 days. Most construction delays were caused by: (i) termination of some contracts and awarding of new contracts; (ii) changes of the scope of work, such as the additional pavement strengthening and the construction/repair of additional bridges found to be necessary; and (iii) the generally slow work process of some of the contractors (requiring replacements). 8. The long delays were accompanied by substantial cost overruns. The road improvement works were initially divided into 12 contract packages with a total value of PhP 1,437.5 million. Other contracts had to be added to replace slow contractors, or due to changes in the project scopes, or as loans for extended scope on some of the original contracts such as for additional pavement strengthening, bridge works or drainage improvement. The total cost of the project, thus, became about 40% more than originally intended. 9. During the progress of the project, the executing agency had problems in obtaining the necessary disbursement of funds from Government. Some delays could otherwise have been avoided. In turn, however, it should be recognized that the period 1989-1991, when most of the construction activity took place, coincided with the Gulf crisis. The inflation was high, the cost of construction items such as cement increased by more than 20 percent per year, and there were severe shortages. Some contractors were unable to get supplies. 10. The Fourth Road Improvement Project also had substantial benefits and is classified in ADB’s Completion Report as partially successful. Apart from savings in vehicle operating costs due to the road improvements, the public transport on the project roads has increased and the economy in the surrounding areas has improved significantly, particularly for the poorer income groups.

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3.2.2 ADB’s Fifth Road Improvement Project 11. The Fifth Road Improvement Project was a $150 million loan disbursed from August 1991 to January 1998, i.e., during a period of six years and five months. The objective was to assist Government to improve such sections of the road network, which had deteriorated enough to constrain economic development. Apart from improving the selected project roads to better standards, the work should also: (i) develop a road condition rating system as the first phase of a pavement management system; and (ii) establish a rolling five-year periodic and preventive maintenance system for national roads, based largely on maintenance by contract. 12. For those purposes, the Project comprised improvements of about 420 km of National roads on four different islands, and about 420 km of rural roads in 11 different provinces. The periodic maintenance included some 170 km of National roads in Luzon and 400 km of rural roads in the 11 provinces. Maintenance equipment, vehicles, workshop tools, etc., were procured and consultants were engaged. 13. The achievements during implementation became less than intended, however. When the bid results were received at higher prices than expected, it became apparent that sufficient Government funds would not be available to complete all contract packages. Two contract packages for the National roads and three for the rural roads were cancelled, and several other packages were scaled down. Instead of improving 420 km of National roads, it became 282 km. 14. The total costs of the implemented contract packages were 36% higher than the original estimates for the same packages. The main reasons were increased cost of materials and delayed construction works. The costs of consulting services became 50% higher than intended, mainly due to the extended supervision periods. 15. The construction delays were mainly due to: (i) delayed right-of-way (ROW) acquisition; (ii) delayed payments to contractors from the limited Government funds; and (iii) probably also for that reason, generally slow progress for some contractors. 16. The performance of the engaged consultants was deemed satisfactory but some deficiencies were noted. In particular: (i) the design review did not discover that the utility services were missing from the drawings; and (ii) the designed and constructed roadway shoulders for National roads were of a less permeable material than the base course, which led to premature pavement failures. 17. The final construction quality was otherwise satisfactory, except for double bituminous surface treatment on the rural roads. Where implemented at all, the local contractors had inadequate equipment and experience. The resulting surfacing has deteriorated due to poor workmanship and higher traffic volumes than expected. 18. The financial problems of Government at the time were partly responsible for the delays in implementation, through the delays in payments to the contractors, and it has also contributed to the insufficient road maintenance. The lack of attention to maintenance reflects (or reflected) the emphasis on rehabilitating or constructing new roads instead of maintaining existing roads. The Fifth Road Improvement Project continued to support a maintenance by

KEI in association with SKI and DCCD 3-3 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

contract (MBC) approach. At the end of the pilot program, a goal was agreed that 84% of the maintenance should be by Maintenance by Contract (MBC) scheme. This has since been reduced to 50% by congressional mandate. 19. Like ADB’s Fourth Road Improvement Project, the Fifth Project could also be shown to have substantial socio-economic benefits for the populated areas around the improved roads. Through cost reductions for farm-to-market transports, and improved access to markets for rural areas, the Project is believed to have contributed to poverty reduction for approximately 980,000 people. The relatively high benefits due to this and some related benefits were largely caused by significant increase in traffic volumes after the project appraisal.

3.2.3 ADB’s Sixth Road Project 20. The main purpose of the Sixth Road Project was to support Government’s strategy as defined in its 6-year Medium Term Public Investment Program at the time, of improving rural transport infrastructure and thereby reducing transport costs. The roads selected for improvement were in some of the least developed areas of the country where accessibility was a major constraint. The total Project costs was $576.88 million, co-financed by JBIC (Japan), OPEC, the Kuwait Fund, and UK’s Overseas Fund for International Development. After approval by ADB’s Board, the project started in 1996 and closed in February 2007, 47 months later than planned. 21. One focus of the project was to preserve previous investments and ensure sustained economic and social benefits. Asphalt concrete pavements, which had reached the end of their design life, were protected by strengthening layers for perhaps another ten years. A parallel bridge program should replace failed and structurally weak bridges. The Project was also designed to strengthen the DPWH in the critical areas of road safety, highway planning, road maintenance, bridge design, project management and road surface dressing techniques. 22. The intended Civil Works included about 840 km of National roads on five islands, rehabilitation or structural overlays for another 800 km of National roads, and repair or retrofitting of about 400 bridges in the national road network. Some of the detailed design for the Civil Works had already been done as a part of ADB’s Fifth Road Improvement Project. The consulting services for the sixth Project were therefore limited to construction supervision and various field investigations. 23. In the implementations, the works on structural overlays exceeded the expectations while other road improvements and the bridgeworks were delayed or cancelled, mainly because of delays in procurement. The capacity building was problematic and could only be completed in three areas out of nine. The other six were cancelled or only partly successful. 24. Due to the cancellations, also of several civil works, there was no cost overrun in spite of the delay by 47 months. There were several reasons for this long delay: road conditions changed in the interval between the original design and the contract award, sometimes requiring a re-design; and land acquisition and resettlement (LAR) were probably the main reasons, however. The initial assumption that there would be no major environmental impact because all road works would be within the existing right-of-way, was erased during the

KEI in association with SKI and DCCD 3-4 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

implementation. At the time of the Project Completion, the LAR activities were still not yet complete, leaving some affected persons at a disadvantage. 25. The Validation Report for the Sixth Road Project lists the following “lessons” for future ADB projects: (i) LAR issues must be carefully evaluated, and ADB policies must be clearly understood and included in the loan agreement. (ii) For more efficient implementation, it is advisable to concentrate on a specific geographic area, rather than pursue a scattered, large project. (iii) Long delays between design and implementation often necessitates major modifications of the design, causing further delays. (iv) Project implementation arrangements would be more efficient if the project management office was provided with enough authority to undertake procurement, supplemental agreements, and variations. (v) To avoid misuse of project vehicles, the possibility of renting or leasing these vehicles should be studied as a means of ensuring proper use and accountability. (vi) Complete buy-in by the agencies concerned with institutional development must precede commitments, to avoid waste of resources. (vii) An overly optimistic implementation schedule at appraisal places an additional burden on both the Executing Agency and ADB.

3.3 World Bank Projects 26. Since the launch of the road sector reforms in 1997-1999, the World Bank has been a key development partner in reshaping the sector. The NRIMP program was launched in the year 2000 to support Government’s sector reform goals and the sustainable development and operation of the National Roads System. The achievements during the first phase, NRIMP-1, included the establishing of a Road Board, a Road Fund and a Motor Vehicle User Charge. The business process reforms implemented under the Road Information and Management System (RIMSS) program established modern systems for key planning, financial management and procurement processes. 27. NRIMP is an adaptable program loan in three phases, much like ADB’s Road Sector Improvement Project. The program was initially designed for nine years with overlapping phases and a total loan amount of $950 million. Due to the collusions and bid-riggings affecting NRIMP-1 during 2003-2006, however, that phase was closed and $28 million fund allocation was cancelled. The preparations had been overly optimistic. Based on this experience, NRIMP-2 was designed for a more realistic design and scope. The time plan for NRIMP-2 was set to five years from 2008 to 2012, and the budget was reduced from the originally planned $300 million to $232 million. 28. The objective of NRIMP is “the establishment of road management arrangements which ensure the upgrading and preservation of the National Road System in an environmentally, socially and financially sustainable manner”. NRIMP-1 undertook a range of business process improvements at the agency level, to modernize planning, decision making and management processes at DPWH. NRIMP-2 shall develop these processes further and institutionalize them across all offices. If this will be successful, NRIMP-3 is

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intended to scale up the improved road management model and – if found appropriate – establish a road authority. 29. In addition to the business reforms and capacity development, both NRIMP- 1 and NRIMP-2 included road improvement and asset preservation projects, under the Medium-Term Philippine Development Program (MTPDP). The planned road improvement investments for NRIMP-2 cover about 450 km of roads and 1,000 m of bridges, including some roll-over from NRIMP-1. The asset preservation program will cover about 2,500 km annually, including: (i) long-term performance based maintenance on key portions of the main arterial network; (ii) parts of the national preventive maintenance program on the National highways; and (iii) advisory consultant services supporting the procurement and implementations. The total cost during four years, of this part of the Project, was estimated at $519 million, of which $211 million would be financed by the World Bank. 30. Based on the negative experience from NRIMP-1, NRIMP-2 will continue to develop, improve and implement a range of measures designed to build institutional capacity and governance, strengthen the fiduciary controls over the use of loan proceeds, and to strengthen accountability and the demand for good governance from civil society. The intended mitigation measures will include: 1) Use of an Independent Procurement Evaluator, to improve the transparency and integrity of procurement processes. 2) Further enhance procurement controls to ensure the reliability of contract cost estimates by detecting over-pricing and rejecting overpriced bids, and enhancement of supervision control over contract variations. 3) Adoption by Government of the 2006 Guidelines, for Procurement under IBRD Loans and Credits, which include enhanced provisions for combating fraud and corruption. 4) Strengthening Internal controls and audit capacity in DPWH in order to address key deficiencies revealed by official audits of the agency. 5) Adoption of Enhanced Business Processes to improve the efficiency of transaction processing and reduce the opportunities for interference. 6) Independent Oversight by Civil Society. A coalition of citizens and road user groups has been established and named “Road Watch”, to strengthen the voice and influence of citizens in ensuring transparency and proper use of public funds for road, as well as, to counter corruption at high levels of government and society. 7) Partnership with the Road Board in Management of the Road Fund. Assistance to the Road Board and its Secretariat to apply strong, transparent procedures for administering the special funds, and to produce more efficient, equitable and needs-based expenditure programs.

31. After considering a decision in November 2007 to defer the continued work, the World Bank’s Board of Executive Directors approved NRIMP-2 on May 13, 2008. The total project costs are $576 million, including a $232 million loan from the World Bank, $333.5 million from government of the Philippines, and $10.5 million by a grant from AusAID (Australia).

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3.4 Japan Bank for International Cooperation (JBIC) 32. The objective of the JBIC-assisted Road Enhancement and Asset Preservation Management Program (REAPMP) is to “assist and enhance the efforts of the government to improve, preserve and manage its National roads system in an economically, socially, financially and environmentally sound, effective and sustainable manner”. REAPMP is a sector program type of assistance, focusing on maintenance or asset preservation to provide a more extensive and lasting impact on the National roads sector. The reasons are: a) Many past highway loans were used for major rehabilitation of National roads, triggered by premature deterioration due to inadequate maintenance. Projects limited to rehabilitation, upgrading or reconstruction do not tend to provide for a life-length follow-up maintenance. b) JBIC supports the government policy to give the highest priority to road asset preservation or maintenance in road development and funding. This is a cost-effective strategy that involves relatively low but sustained funding to preserve existing assets. c) JBIC wants to strengthen the DPWH initiatives for asset preservation and modern business processes for the delivery of National roads, particularly through the WB assisted NRIMP. d) The maintenance needs of National roads are huge, compared to the available resources to meet them. JBIC can make a significant contribution towards bridging the gap in resources. 33. Under REAPMP, the government and JBIC will agree beforehand on the program objectives and scope, criteria and processes for selecting and implementing the projects. Selection, procurement and implementation will be done by DPWH as the program proceeds. Adjustments in the list of projects may be made by DPWH as needed during the implementation to fit changing conditions. REAPMP will involve an agreement between JBIC and government to implement a specific agenda for asset preservation, management and enhancement of National roads. 34. The DPWH will also accelerate the installation and application of the IT- based technical planning systems and tools, to enable a systematic generation of priority lists for road construction and maintenance projects, using objective criteria for life cycle cost-benefit analysis under alternative budgets. These tools include, among others: a) Pavement Management System (PMS, including HDM-4). b) Multi-Year Programming and Scheduling System (MYPS). c) Routine Maintenance Management System (RMMS). d) Bridge Management System (BMS). e) Road and Bridge Information Application (RBIA) used as data base. 35. Under the General Appropriations Act (GAA) of 2007, DPWH could contract out up to 90% of the road maintenance budget. After using MBC for 70% in 2007, DPWH planned to use 80% during 2008 and 90% during 2009. Outsourcing was proven to be more efficient through competition than through administrative work.

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3.5 The Australian Agency for International Development (AusAID) 36. Several of the ICB components initiated by the World Bank were further developed, operated and co-financed by other development partners. Financed by AusAID, corporate effectiveness packages were supported and implemented under the Philippine-Australia Partnership for Economic Governance Reforms (PEGR) and the Philippine-Australia Human Resource Development Fund (PAHRDF). Programs developed by NRIMP and operated under PEGR include: 1) Financial Management Service to DPWH, providing assistance on strengthening the internal controls and the financial reporting. 2) Integrity Strengthening Strategy, a number of programs aimed at enhancing DPWH’s transparency by improving its communications network and IT-enabled systems. 3) Supporting partnership (Road Watch) with volunteer (who must have engineering background) for fraud detection and liaison with DPWH.

37. The program under PAHRDF includes a Human Resource and Leadership Development plan, to support and empower staff skills and strengthen the corporate culture.

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4. DPWH’S FINANCIAL MANAGEMENT SYSTEM

4.1 Objectives 1. The basic objective of this analysis is to assess the financial management system of DPWH with respect to the following: (1) Existing accounting and auditing processes and procedures. (2) Examine the implementation of document and fund flows. (3) Tracking processes with due attention to integrity and completeness of auditing. (4) Effective implementation of foreign-assisted projects with Official Development Assistance (ODA) financing.

4.2 The Present Financial Management System 2. An assessment of the present Financial Management (FM) System used by DPWH is necessary to ensure that the Executing Agency is technically, managerially and financially capable of effectively implementing proposed programs and projects, thereby guaranteeing that the present FM System should satisfy the Bank’s requirements as stipulated in ADB’s Operations Manual and related guidance documents. The evaluation is conducted to establish the current financial management functions of DPWH, including the internal auditing process and control, and the extent of implementation of instituted financial management reforms. This is done in order to determine if the institutional capacity, in terms of financial management, is sufficient to justify loan approval, identify financial management needs in terms of project-related and long term use, provide guidance for the successful implementation of this project, and reaffirm the sustainability of the existing FM system within the Department. 3. The current financial management system is guided by the internal control policies and procedures of government, which are contained in several documents, particularly in the electronic-New Government Accounting System (e-NGAS) developed and issued by the Commission On Audit (COA) and Government Accounting and Auditing Manual (GAAM). 4. The FM system of DPWH consists of one main system supported by a sub- system for foreign-assisted projects (e.g. NRIMP-I and 2). The main FM system is used to maintain the books of accounts, monitor the Designated Accounts (DA) and prepare the required Project Financial Reports. The sub-system under the Project Management Offices (PMO’s) conducts initial screening of transactions, prepares disbursement vouchers, Statement of Expenditures (SOEs) and Withdrawal Applications for the DA, manages DA and prepares other financial management reports. 5. To ensure efficient monitoring and financial management of DPWH in handling and managing different stages of infrastructure development, different services and divisions are involved. The Comptrollership and Financial Management Service (CFMS) is responsible for financial systems procedure and control and handles the main FM system while the Internal Audit Service (IAS) is responsible in the conduct of management and control audit. 6. The CFMS is tasked to provide the Department with coordinated services relating to financial systems and procedures, budget, cash, accounting and all

KEI in association with SKI and DCCD 4-1 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

financial housekeeping matters, and to maintain and improve financial management upon the internal control system. Its organization structure includes four divisions: the Accounting Division, the Assets and Supplies Management and Control Division, the Budget Division, and the Cash Division. The responsibilities of each division are handled by their respective subordinate sections. 7. The Internal Audit Service (IAS) is mandated to advise the DPWH Secretary on all matters relating to management control and operations audit; conduct management and operations audit of department activities; review and appraise systems and procedures, organization procedures, assets and management practices, accounting and other records, reports and performance standards such as budgets and standard costs of the departments central and regional offices; analyze and evaluate management deficiencies and assist top management in solving problems by recommending realistic courses of actions. 8. IAS has three divisions namely: Financial Audit Division, in charge of overall financial aspects of the Department, Operations Audit Division “A”, in charge of the technical aspects of operations such as engineering and civil works, and Operations Audit Division “B”, in charge of administrative aspects such as the procurement of goods, contractors and consultants. 9. Other related divisions, directly involved in the different stages of such infrastructure development tasks by DPWH that require financial management, have the following functions: the Bidding and Awards Committee (BAC) and the Procurement Office for Civil Works (POCW) responsible for the procurement and contracting of infrastructure projects; the Price Escalation and Price Adjustment Committee (PEPAC) responsible for the approval/regulation of price adjustments; the Infrastructure Right-of-Way (IROW) office responsible for monitoring and supervising the compensation of affected families and structure owners due to infrastructure right-of-way acquisition; and the Bureau of Maintenance (BOM) responsible for the planning and implementation of road maintenance works. 10. The efficiency and integrity of financial management in the DPWH is being enhanced through the agency-wide implementation of the e-NGAS and related controls. This was developed by the COA for which DPWH was one of its pilot agencies. The system was installed in order to simplify government accounting, and provide adequate internal control as well as reliable, timely financial management information without sacrificing data integrity and fiscal transparency. This allowed computerization of all its accounting records, enabled better management of voluminous transactions and ensured properly recorded transactions. It also improves the management reporting of financial information needed for operational and executive decision-making and, thus, greatly assisted in the monitoring of internal controls within the department as well as improved the delivery of services. 11. The present status of e-NGAS roll-out is as follows: (i) the Accounting module is fully operational in the central office and pilot regional offices; and (ii) DPWH will implement the new Budget module and seven additional modules, currently under development, as they become available. The additional modules include: Accounts Receivable, Accounts Payable, Cashiering, Project Monitoring, Personnel Information, Payroll, and Leave and Attendance. Specialist technical assistance will be provided on internal audit procedures and controls, as a means of strengthening and customizing the internal controls and monitoring of the whole DPWH financial management system. The IAS is preparing for the

KEI in association with SKI and DCCD 4-2 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

use of the new National Government Internal Control System developed by COA and DBM to be fully implemented by the second quarter of 2009. The Internal Audit System manual, to be released during the first quarter of 2009, will be used as a basis by the NRIMP-2 Specialist. 12. Financial Management (FM) has been identified as one of the key support processes of NRIMP being implemented in DPWH. The component under this program aims to provide: 1) assistance in strengthening the internal controls for supporting documents associated with financial transactions at the Central Office; 2) assistance in improving financial reporting; Parallel testing of the FM Budget Module with subsequent adjustment of the software based on the COA’s input; 3) installation and proper implementation of e-NGAS; 4) installation of Modules and Outcomes Based Monitoring Framework; and 5) preparation of bidding documents for communication network equipment maintenance.

4.3 Problems with the Financial Management 13. As a prerequisite to NRIMP-2, the review results conducted by the World Bank indicated that the overall main FM system at DPWH does not fully comply with the requirements of the Bank. Significant deficiencies were found in its internal controls on cash, inventory, property, advances and sub-allotment to Regions, payables, and certain expenditures as well as a weak internal audit function. These shortages resulted in an adverse audit opinion for several years, including the DPWH 2006 financial statements, due to inadequate compliance with government’s established internal controls, and significantly delayed both the agency and the World Bank projects. 14. There are weaknesses in the control environment, which are pervasive and significantly increase the risk of funds not being used for their intended purposes. At a program and office level, there are perceptions of the misuse of funds. On a project level, there have been allegations of collusion and payment of kickbacks to individuals. 15. Based on assessment, the following are the key corruption risks in DPWH performance of infrastructure development activities:

(1) On the Area of Procurement • Collusion – the possibility of manipulation of bidders by an “arranger” under the direction of a patron, typically a senior or a local politician, is highly probable. • Bid-rigging – the same “arranger” may influence the establishment of bid prices, with a sufficient margin above the cost estimate, which is often high but appears subject to control, to pay kickbacks to the patrons, cartel participants and some officials. • Misrepresentation of Bidder Qualifications – in the absence of transparency and proper procedure to protect the integrity of bids, falsification of bid documents such as work history, productivity and financial records of bidder are highly probable. • Fraud – falsification of submitted documents are also highly probable to happen.

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• Manipulation of Bid evaluation – for contractor its possibility is relatively minor under recent internal controls, but could re-emerge, however, for consulting services this is highly probable. • Irregularities in Bid Process – interference with bid submission, substitution of bid documents or misreading of bid prices, this is relatively rare in foreign-assisted projects due to observer controls, but may occur in locally-funded projects. • Contract Processing – bribes to facilitate processing of contract award and subsequent payments are highly probable. The approval process has multiple layers and extended delays occur in key offices, e.g., legal service, BOC, Executive, PMO. • Preferred Suppliers –nomination of preferred agents by contractors for key contract services such as bank guarantee, security, indemnity insurance, who may provide kickbacks to project level officials are also probable. • Contract Variations – inflation of the size of some variations through estimates of quantities for pay items which are difficult to confirm or audit, such as repairs, excavation, landslide removal, etc are also probable. This may result to collusion of contractor with officials, but may involve collusion of supervising consultants also.

(2) On Implementation Quality • Falsification of quality control test results, defect or repair inspections, etc., through collusion between contractor and supervising officials or consultant. This incidence is very dependent on particular individuals and firms, said to range from negligible to modest for most foreign-assisted projects but minor to serious in most locally-funded projects.

(3) On Financial Management • Weak Internal Control, which is manifested in the disbursements and financial reporting. The annual Audit report of the Department in the past several years has expressed an adverse audit opinion on DPWH Financial Statements, mainly due to weaknesses in the Internal Control. The weaknesses include: (i) unreconciled bank balances, (ii) unrecorded transactions, (iii) bank accounts with no cash, (iv) mispostings and double recording of disbursements, (v) improper write-off of account balance; (vi) cash advances and receivables due from National Government Agencies or Inter-Agency Receivables, Inventory, Property and Equipment, Accounts Payable and Expenditures; and (viii) unreconciled General Ledger and its Subsidiary Ledgers. NRIMP-1 Project Accounts audit contained lesser exceptions, mainly concerning the controls on Sub-Allotments and improvements needed in the software for projects, which record transactions based on obligation (even when reconciled with the regulatory accounts for the project which are on an actual basis). • There is also a weak internal audit function. The Internal Audit lacks management support and has few staff with adequate coverage of the entity and projects. IAS has no training program and its staff needs capacity strengthening. IAS management comprises mostly engineers

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with no formal training in Internal Audit or Internal Controls. Some skills are acquired on the job. • Payment Processing Irregularities. Certification of invoices for payment may involve delays and bribes to project officials or supervising consultants, but this appears minor and has not been reported to be a major problem in foreign-assisted projects. However, the government lately instituted reform through the introduction of computerized accounting system. Once submitted, the invoices will be processed electronically in the computerized e-NGAS accounting system. The processing status is then queued and published on the agency web-sites of both the implementing agency (DPWH) and the disbursement agency (DBM). • Project accounting software records obligations of transactions as disbursed. However, reconciliation is being documented between the e- NGAS of the main Agency books of Accounts (which records transactions as they are disbursed), and the Project software reports by manually adjusting the report. • Fund Flow. Presently, there is weak control on fund transfers, sub- allotment advices, etc. • FM organization staffing is relatively weak. There are not enough employees to handle the FM function including those for Projects. Thus, the Agency resorts to hiring of contractual and casual employees. 16. The long delays in the completion and submission of Audit Reports during the last several years indicates weaknesses in the timely completion and consolidation of financial statements, as well as in the timely conduct of audit and prioritization of audit timetables by the national auditor. The Government auditor is now committed to addressing this issue and also ensuring more timely audits. 17. Results from the June 2006 Social Weather Stations Enterprise Survey revealed that the public’s perception of DPWH’s efforts to combat corruption in five main regions is one of the worst with regard to public agencies, and that it had further worsened over the previous two years. Speculations vary widely as to the level of leakage from DPWH-implemented projects and are difficult to verify. 18. Governance issues also include the selection of project locations or allocation of funds. A strong governance framework in the sector is needed to help ensure competitive procurement practices, improve the quality of road construction, and in turn, enhance efficiency and reduce the costs of road developments and maintenance.

4.4 Present and Planned Improvements 19. The task of improving the FM system and strengthening the internal audit procedures and controls in DPWH will be a component of NRIMP-2, specifically under AusAID Grant co-financing, through the Philippines-Australia Partnership for Economic Governance Reforms (PEGR). 20. Reform Agenda on Financial Management and Internal Control (FMIC) is presently being conducted in the Department. The purpose is to provide support to CFMS across its range of activities, to strengthen its financial

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management and internal control systems. The task will further support the roll-out of the electronic version (e-NGAS). The Accounting module is fully operational in the central office and pilot regional offices. DPWH implemented the new Budget module in the last quarter of 2008 and will implement the seven additional modules (listed in Paragraph 12 above) as they become available. Outputs of this task will include roll-out of the different modules to regional offices. 21. The Budget Module (“e-Budget”) was developed to maintain electronically complete records of the Budget Execution Process. This has facilitated improvement in processing and recording more accurate information and easy access to budget information when needed. This RA will help ensure that DPWH will have fully operational Accounting and Budget modules in the Central Office and also in all 16 Regional Offices and District Engineering Offices through a wide computer network. The e-Budget became fully operational in the Central Office in 2008, and parallel testing of the system has been completed. Now it is also being implemented in most Regional and District Offices of the Department. Soon, all offices of the Department will have the benefit of e-Budget. 22. Reform Agenda on Internal Audit Capacity Building (IACB) aims to support the Internal Audit Services of DPWH in upgrading internal audit procedures to international standards and assisting in the conduct of semi-annual internal audits across DPWH. 23. Reform Agenda on an Independent Procurement Evaluator (IPE) which is presently being tendered, includes the procurement of a team with an individual procurement specialist supported by local consultants who will undertake the IPE role, working alongside the Project Management Office (PMO), Procurement Bureaus and BAC’s. 24. Reform Agenda on an Independent Technical Audit (ITA) includes a firm which would be tasked to undertake independent technical audits of project activities periodically, at least annually, including audits of contracts as implemented, cost control from estimation to completion, performance of firms, quality and quantity of project outputs, achievement of project results, etc. 25. Reform Agenda on Organizational Effectiveness Advisors will conduct an organizational analysis and develop restructuring plans in consultation with senior DPWH management. 26. Reform Agenda on Road Partnership Support will include an advisor to provide support and advice to the citizen group Road Watch, formed as an alliance of transport-related NGOs to operate as an effective independent and external monitor for the Road Sector in constructive communication with DPWH. Grants will be provided for the operating costs of the organization. 27. The Philippine Public Expenditure Review (PER) on Transportation completed in 2008 recommends that construction supervision be outsourced to relieve the project supervision burden of DPWH in-house staff. Much of the construction supervision, particularly for locally funded projects, should be considered for outsourcing to private consultants. This step should be taken both for the central and district offices. It will also require the development of management capacity for planning, fund allocation, project execution, and financial management alongside strong internal controls and result-evaluation methodologies.

KEI in association with SKI and DCCD 4-6 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

28. The same report also encourages the coordination between line agencies to ensure efficient implementation of the huge infrastructure program from 2008 and forward. A formal memorandum of understanding between DPWH and DBM indicates their performance obligations to be as follows: DPWH should commit to allocate funds within its budget ceiling, undertake specific policy, institutional, and process reforms to increase its absorptive capacity for more efficient use of funds and provide for stronger accountability and governance (setting quarterly performance targets, performance monitoring, financial management and audit, support to Road Watch and the like). On the other hand, DBM will commit to release allotments for the infrastructure program comprehensively upon the General Appropriations Act (GAA) approval and issue comprehensive quarterly cash allocations, from which DPWH can immediately disburse to support its projects. 29. One recommendation stipulated that DPWH Financial Management and associated information systems need to be tightened. Despite the significant reforms initiated by DPWH under its RIMSS project, weaknesses remain in financial management and information systems. The latest COA reports shows cases of disallowances and other irregularities in significant, although decreasing, numbers. In May 2007 DPWH issued an updated set of omnibus delineation and delegation of authorities with an internal check-and-balance provision. It also rolled out to the regions the accounting module of the new e- NGAS prescribed by COA. DPWH and other line agencies should follow these guidelines to improve the transparency and accountability of their budget execution. Doing so would ensure that all implementing systems are interconnected and can interface with the information and project monitoring systems as well as ensure that physical accomplishments reflect the funds disbursed. 30. Appropriate training for staff was mentioned as one of the pressing needs of the Department. For IAS strengthening to be more effective, DPWH and other implementing agencies should strengthen their IAS, with emphasis on risk based and system audits in addition to the current compliance audits. Immediate capability build-up and trainings are needed. 31. The procurement processes in DPWH and other line agencies should be further shortened and streamlined by: (i) fully implementing (to the district level) the new DPWH Procurement Manual for locally-funded projects, recently approved by Government Public Procurement Board, including timelines and standard bidding documents (SBDs), however, the pending issue that this manual is invalid for non-publication should first be resolved; (ii) Installing and implementing the agency performance indicators (API) for procurement developed and piloted for DPWH with World Bank assistance in 2005; (iii) Intensifying the training of procurement officials and staff; (iv) Posting standard bidding documents on the website; (v) Completing any right-of-way acquisition before bidding; (vi) Computerizing eligibility screening and post-qualification of bidders, to the district level; and (vii) Applying stiff sanctions for breaches.

KEI in association with SKI and DCCD 4-7 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

5. THE FINANCING OF ROAD MAINTENANCE

5.1 Objectives 1. The main objective of this analysis is to assess the status of road maintenance financing as follows: (1) Review the status of financing and maintenance of national road network in the Philippines. (2) Undertake critical analysis of medium term development plans and investment programs, projections for investments and expenditures required to maintain the national road network, as well as, other pricing, cost-recovery policies and allocation policies that will sustain the development of the national road network in the long run. (3) Review the status of road sector policy dialogue and issues between the Philippine Government and its development partners.

5.2 Status of Financing in the Road Infrastructure Sector 3. The government has significantly been under-investing in road infrastructure. The Philippine’s share for infrastructure spending in 2005 was pegged at only 2.3% of GDP. This figure is much less than in many other Asian countries during the same year. For example, Malaysia has 5.3% of its GDP on infrastructure development and Vietnam has 8.6%. 4. Recommended investment levels stipulated in the master plans and medium term programs of the government were not fully reflected in the government’s annual budget for transport infrastructure. The annual budget was consistently low from 1993 to 2007, with an average of only 0.6% of GDP, showing large differences between prioritized projects and the allocated funding. The discrepancy is in the range between 40% and 70%. 5. DPWH’s infrastructure expenditure dedicated to the rehabilitation and construction of new national roads dropped by half between 1990 and 2005. It peaked in 1997 at 1.70% but due to the Asian financial crisis, it fell sharply to 1.27% in 1998. Since then, there has been a consistent decrease in the national budget for infrastructure. In 2005, it was indicated to be at 0.71%. 6. The renewed thrust of the Government on prioritizing infrastructure has led to a slight increase on investment in the sector, pegged at 0.76% in 2006 and increasing further to 0.98% in 2007. However, these figures are still way below the 1997 figure. After considering the effects for the economy as a whole, the Government allocated 10 Billion pesos in 2007 to fund infrastructure projects, with a further commitment to 20.9 Billion for 2008-2009. The additional funding is expected to improve access and advance project completion by an average of two years. 7. A recurrent issue in the transport sector is the misallocation of funds, aggravated by apportioning the financial resources to projects that have not been subjected to the stages of the planning process. According to the National Transportation Policy and Planning (NTPP), only 50% of the road project proposals recommended by the Luzon Island Strategic Road Network (LISR) Development Study were provided in the budget. The remainder was allocated

KEI in association with SKI and DCCD 5-1 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

for Luzon roads that were neither screened nor prioritized by the master plan. This compromised the relevance of the whole planning process. 8. Another issue is the non-optimal disbursement of funds due to various constraints for the efficient implementation of infrastructure projects. In 2005, DPWH was only able to disburse PhP25 billion of its PhP37 billion annual budget, which is equivalent to 70% of its funds. This improved slightly in 2006 when 85 % were systematically disbursed. Efficient disbursement of budget becomes necessary to ensure maximum impact of projects. 9. The financing of national roads comes from two main sources, namely: (i) the government budget executed through the General Appropriations Act (GAA); and (ii) the Special Road Support Fund (SRSF) sourced from the Motor Vehicle User Charge (MVUC). 10. Republic Act No. 8794 (27 June 2000) mandates the imposition of motor vehicle user charges (MVUC) for road maintenance, local roads development, road safety and air pollution control. The user charges are collected by the Land Transportation Office (LTO) from individual motor vehicles as one component of its annual registration fee. The MVUC is subdivided into four special accounts by a formula established under the law’s implementing rules and regulations (IRR). 11. Program allocations is administered by the Department of Finance and managed by the newly established Road Board as provided under the same law in accordance with the following pattern of distribution: 80% collected shall go to the Special Road Support Fund (SRSF). Along with the Special Local Road Fund and the Special Road Safety Fund, the SRSF shall be under the auspices of DPWH; 5% for the Special Local Road Fund, administered by DPWH; 7.5% for the Special Road Safety Fund, administered by DPWH; and 7.5% for the Special Vehicle Pollution Control Fund, administered by DOTC. 12. Seventy (70) percent of the SRSF shall be utilized for the exclusive maintenance of national primary roads, including the improvement of drainages. The remaining 30% thereof shall be allocated and used for the maintenance of national secondary roads throughout the country, also including drainage. 13. The Road Board administers revenues from road users to the Road Fund and the allocation of funds to eligible programs. The Board allocates and approves funds for road preservation programs, based on programs prepared and submitted by DPWH. DPWH also conducts the procurement, financial management and supervision for its projects. 14. While the SRSF was established in 2000 with funds from the MVUC now regularly flowing through it, the releases have been controlled by Department of Budget and Management (DBM) with no release until 2003. Subsequently, its administration has been subjected to external pressures resulting in delays and diversions in the release of funds. As a result, it has not been as effective as expected in improving the road maintenance program. 15. Financing through the use of GAA or general government tax tends to fall short of the required investment, especially for the maintenance of the road network which prompted various road sector reforms in the Philippines. Reforms were initiated in 1997 and further emphasized in the Better Roads Philippines (BRP) Study in 1999. 16. BRP expressed the need for sustainable financing through road user cost recovery and commercialization of road sector operations. It also proposed the creation of a Road Management Authority wherein, at the institutional level, the

KEI in association with SKI and DCCD 5-2 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Road Fund and Road Board were established in 2001 and became fully operational in 2004. 17. The Road Fund was dedicated for the establishment of new roads and for catch up maintenance programs so as to bring the road levels within the country back to acceptable levels. 18. The total revenue generated for road financing did not experience a net increase during the period 2002 to 2004. This was due to the fact that while annual financing from SRSF increased, the allotted resources under the GAA were almost halved, resulting in no net increase in the total financial resources for the road sector. 19. There was a considerable increase in budgetary allocation to the sector between 2004 and 2006, however. This was mainly due to the rising revenues from road users taken from the SRSF and projected to further increase in the next five years. However, the 2006 figures comprised only about one third of the estimated needs in that year, indicating the need for higher cost recovery. Figure 5.2-1 reflects the trend of source of financing for the national roads sector from 2001 to 2006.

45 40 35 30

25

20

15 10 5 0 2001 2002 2003 2004 2005 2006

National Budget Special Road Fund Total

Figure 5.2-1: Source of Financing for the National Road Sector Source: Philippines: Public Expenditure Review, World Bank, 2008

20. With the recent resurgence in the economy, the capital budget and SRSF for 2007 rose to PhP69 billion (1.8% of GDP) which is believed to be able to restore the sector if the budget is well prioritized, spent efficiently and sustained. 21. To ensure effective maintenance of roads and bridges, there is a need to address the fragmented budget allocations, ensure need-based budget, allocation of administrative costs compared to the overall budget, and risk exposure when used for employment-generation programs. Table 5.2.2 tabulates the forecasted annual national road funding and its appropriation until 2012.

KEI in association with SKI and DCCD 5-3 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 5.2.2: Annual expected funding for national roads (in millions of pesos)

2007 2008 2009 2010 2011 2012 Asset Preservation 20,000 20,000 20,000 20,000 20,000 20,000 Network expansion/extension 65,000 68,000 70,000 73,000 76,000 79,000

system support/upgrading 419 419 419 419 419 419 Total 85,419 88,419 90,419 93,419 96,419 99,419

5.3 Status of Road Maintenance Financing 22. The total length of the country’s road network is pegged at 203,000 kilometres in 2007. Twenty percent are paved while about 72% are considered to be of all-weather standard. The road densities in terms of paved road coverage and service performance are indicated to be 0.15 km of paved road per sq. Km. of land area and 0.5 km of paved road per 1,000 population, respectively.

80 70 60 Percentage of National 50 Roads in Good and Fair condition 40 Percentage of National 30 Roads paved 20 Percentage of Total Roads 10 paved 0 1982 2001 2006

Figure 5.3-1: Comparison of National Road Condition Source: World Bank Infrastructure Database and DPWH, 2006 23. Road users primarily shoulder the economic costs of poorly maintained roads. Increased funding for the preventive maintenance of roads would translate into higher savings in vehicle operating costs (VOCs) to road users, rather than allowing road deterioration to a point that requires reconstruction. DPWH studies have shown that the economic benefit of improving bad and poor roads to good condition as well as reconstructing paved roads would translate into 15% to 53% savings in VOCs. Moreover, according to the World Bank’s Public Expenditure Review of Transport Infrastructure, when a road is allowed to deteriorate from good to poor condition, each dollar saved on road maintenance increases VOCs by US$2 to US$3. From a long term viewpoint, savings coming from VOC will benefit the entire economy through reduced costs of transporting people and goods, thereby inducing greater production. Thus, to achieve cost- effectiveness, it becomes imperative that resources be appropriated in a timely manner to fund road maintenance and induce a sustainable road sector policy as well. 24. The operations and maintenance of national roads and bridges, major flood control structures, and related facilities of national importance is the responsibility of the DWPH. The Regional and District offices undertake the maintenance of the facilities generally by administration.

KEI in association with SKI and DCCD 5-4 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

25. The present maintenance setup within the DPWH includes routine maintenance and preventive maintenance. Routine maintenance consists of carriageway maintenance and roadside maintenance, which basically involves localized repair of pavement and shoulder defects, regular maintenance of road drainage, side slopes, verges and furniture, which are done mainly by administration. Preventive maintenance entails asphalt overlay, usually with thickness of 50-100 mm. It also includes selective reblocking or replacement of damaged slabs not exceeding four continuous blocks. These works are usually done by bidding them out as contracts. 26. The allocation of funds for routine maintenance among the district level is made on the basis of the Equivalent Maintenance Kilometre (EMK) formula. The formula allocates funds based on the length of the road adjusted to consider its width, surface type and traffic volume. Allocation of funds for preventive maintenance is based on the results of HDM-4 output with parallel consultations from District Offices. The Bureau of Maintenance (BOM) forwards the list of projects to the Planning Service for funding by DBM. Several iterations are usually done to come up with the final list due to funding constraints. On the other hand, works for routine maintenance is funded through the GAA while preventive maintenance is funded by both the GAA and the MVUC or SRSF. 27. According to a DPWH-World Bank study, the order of PhP4–6 billion raised from the MVUC was utilized to cover road maintenance. Table 5.3.2 tabulates the amount raised for routine and preventive maintenance between 2002 and 2006. However, this only funds 21 to 32% of the maintenance needs. In 2005, a total amount of PhP2,099 Million from MVUC funds was allocated for preventive maintenance. In 2006, this increased to PhP2,500 million. In addition, under NRIMP-1 the DPWH implemented a preventive maintenance program which covered 730 km from 2000 to 2006.

Table 5.3.2: Motor Vehicle User Charges Releases for Maintenance of National Roads (in Million pesos)

Year Routine Maintenance Preventive OVERALL Maintenance TOTAL Carriageway Roadside Total 2002 700 0 700 0 700 2003 3000 1000 4000 0 400 2004 3127 1554 4681 0 4681

2005 2350 1289 3639 2099 5739

2006 2396 1565 3961 2500 6461

Source: DPWH and World Bank, 2006.

28. The thrust towards asset preservation is a sound and cost-effective policy because of the very high economic returns from relatively inexpensive but sustained maintenance on the existing roads. DPWH studies have shown that preventive maintenance is more cost-effective and durable than routine maintenance. However, funds for maintenance are disproportionately allocated with roadside maintenance being allocated 25% in 2003, 33% in 2004, 35% in 2005 and 65% in 2006. These values are much higher than the required 10% to 15% that should have been appropriated to roadside maintenance. On the

KEI in association with SKI and DCCD 5-5 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

other hand, preventive maintenance received PhP 2.1 Billion in 2006 which only covers 12.35% of the total length required for preventive maintenance. Also, carriageway maintenance is appropriated a lower budget which only covers two- thirds of the network. 29. Under-investment in the road preservation program is due to funding constraints. Based on the assessment, only 30% of the total funding requirement is actually supplied. Existing problems result from the lack of proper procedures and transparency in the allocation and flow of funds. Thus, the objective of maximizing allocated funds to serve its intended purpose is not achieved. 30. The result of the consultation revealed that the control environment, in some cases, instigates corruption. There are cases when labour allocation for routine maintenance is released ahead of the budget for materials causing problems in implementation, funded projects are not included in the list submitted and approved by DBM, collusion between the officials of the district or regional and the central office, misinformed reporting, overestimating maintenance work requirements or understating road conditions, among others. 31. DPWH, compared to its related Agencies in other countries, has low productivity when it comes to road administration. There are about 35,000 DPWH employees with 60% deployed to manage the national road network. This translates to a ratio of one employee to cover 1.3 kilometres of national roads. In comparison, Indonesia employs 2,726 employees translating to one employee per 10 kilometres of national road. This is being tackled under Philippines’ recent rationalization program which also aims to increase the productivity of road administration. 32. Another issue is truck overloading which significantly contributes to the premature wear and tear as well as extensive damage to roads and bridges. Consequently, this affects the life cycle and maintenance needs of the road network and also significantly increases vehicle operating costs. The 2004 JICA-DPWH axle load survey determined that 23.4% of loaded trucks exceeded the prescribed Gross Vehicle Weight (GVW) limits while 15% of loaded trucks exceeded the maximum permissible axle load of 13.5 tons. The 2006 Truck Overloading Report cited that there is rampant truck overloading in the country. It was then recommended in the report to strictly enforce 13.5 ton axle load limit. By doing so, this would translate into a gain of PhP160 Million over 15 years for heavily travelled roads in good and fair condition. Other recommendations included: strengthening measures to control overloading, strictly apprehending violators, and reducing the maximum allowable GVW limits so as to reduce the wear and tear on the roads without significantly increasing road user costs. 33. DPWH has signified its intent to provide increasing priority in funding towards preventive maintenance, rather than routine maintenance. There was a 76% increase in road maintenance during 2007. From an amount of PhP 6.6 Billion solely from MVUC, it increased to PhP 11.6 Billion, including a PhP 4 Billion supplement from GAA funds. But the amount still falls short of the required funding, covering only 60% of the resources needed.

KEI in association with SKI and DCCD 5-6 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

5.4 Policy to Support and Strengthen Road Maintenance of the National Road Network

34. The thrust towards maintenance is further strengthened in various studies as well as legislative agenda of the government. The transport policy framework under the Medium-Term Philippine Development Plan, (MTPDP) 2004–2010 places a greater emphasis on the improvement of arterial roads in the regions and the timely implementation of maintenance work. This echoed the policy agenda cited in the Philippine Transport Strategy (1997) which emphasized the need for maintenance so as to deliver an efficient and well- maintained national road network. Also, it stated that there should be stronger emphasis on the development of the national road network, rationalization of administrative responsibility for the road network, and increased involvement of the private sector in the management of the national highway network. 35. Development partners have also supported this thrust by allocating more funding towards preventive maintenance. Under NRIMP-1, preventive maintenance in DPWH was addressed through the introduction of a centrally- programmed preventive maintenance program and the piloting of long-term performance based contracts, aimed to provide comprehensive management of long sections of roads. Its expansion and institutionalization are the focus of NRIMP-2. However, the NRIMP-1 completion report stated that to ensure efficient implementation of NRIMP-2, this should be paralleled with overall reforms in programming, budgeting, control of implementation and costs as well as the timely consideration of other organizational and jurisdictional issues. 36. Under NRIMP-2, DPWH plans to institutionalize various planning and programming systems such as the Pavement Management System (PMS) which includes the utilization of HDM-4, the Routine Maintenance Management System (RMMS), the Bridge Management System (BMS), and the Road and Bridge Information Application (RBIA) among others, so as to objectively guide and rationalize the selection, prioritization, and scheduling allocation of funds for road maintenance and construction projects through the utilization of technical and economic criteria. 37. It has been proven that outsourcing through competition is more efficient than work by administration. Thus, DPWH is pushing for an organization rationalization plan to reduce Maintenance by Administration (MBA) and increase Maintenance by Contract (MBC). DPWH is also shifting towards programs for preventive maintenance and long-term performance-based maintenance contracts for national roads. The Department aims to undertake MBC at an increasing level with at least 70% of the road maintenance budget in 2007, increasing to 80% in 2008, and 90% in 2009. Moreover, it intends to institutionalize long term performance-based maintenance contracts in 2007 and adopt its use for at least 500 km of national roads in 2008 and 1000 km in 2009. 38. To mitigate truck overloading, DPWH will enhance its personnel as well as LTO and PNP personnel through skills acquisition and enhancement in the proper operation and enforcement of weigh bridges and PAWMS, increase staff and funding to ensure 24-hour operation of weigh bridges, provide impounding areas within the station and rehabilitation of non-operational weigh bridges, as well as acquisition of necessary equipment.

KEI in association with SKI and DCCD 5-7 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

39. The President of the Philippines organized the Road Board which is tasked to implement the prudent and efficient management and utilization of the special funds. The Board is composed of seven (7) members, with the Secretary of the DPWH as ex-officio head, and the secretaries of the Departments of Finance (DOF), Budget and Management (DBM), and Transportation and Communications (DOTC), as ex-officio members. The remaining three (3) members shall come from private transport and motorist organizations, which have been in existence and active for the last five years prior to this Act. 40. The MVUC Law has been passed creating the SRSF from vehicle registration fees to be used for road maintenance. The Road Fund was to ensure continued fund availability for maintenance works. However, this has been weakened by its haphazard implementation. Although revenue collection has been reasonably satisfactory, confidence in the Road Board has weakened due mainly to the presence of political influence. Technical advice on the Road Board as well as increased transparency initially improved the operations of the Board. 41. Thus, under NRIMP-2, one of its components shall address strategic sector reform to strengthen the operations and mandate of the Road Board, to include the review of road cost recovery and MVUCC-IRR, the expansion of road user revenues as well as determine options for restructuring the management and delivery of services in the road transport sector. 42. There is a need to institutionalize the planning and programming systems and tools which were developed and tested under the World Bank and Asian Development Bank-assisted Road Information Management Support System (RIMSS), to help in rationalizing selection, priority setting, scheduling, and fund allocation for road maintenance and construction projects, using objective technical and economic criteria. These tools include: HDM-4 for preventive maintenance and rehabilitation of national roads funded under the GAA and MVUC; Routine Maintenance Management System (RMMS), to be operational by the end of 2008, to serve as basis for routine maintenance; and Multi-Year Programming and Scheduling (MYPS) System and MCA, to validate 2007 road construction projects and generate priority multi-year road projects for funding and implementation, beginning in 2008. 43. There is also a need to properly manage the rising funding for road and bridge maintenance, so as to be more effectively programmed and efficient. Fragmented to districts, budget allocations are not needs-based and are blunted by administration costs. These allocations also support job creation programs. Moreover, operational performance has been mixed, but maintenance programs has improved with all major civil works having been outsourced to the private sector for years. A number of contract performance problems have, thus, been overcome, especially in avoiding disputes, and in prompt and policy-compliant land acquisition. But some operational difficulties persist in cost over-runs, slow contract administration, and weak quality and supervision. 44. A policy of cost recovery for operations and management is required especially to ensure sustainability of infrastructure funding. Alternative financial arrangement scheme includes mobilizing and increasing private participation in the sector through build-operate-transfer (BOT) arrangement which would fall under public-private partnerships (PPP). 45. The national government has turned its attention towards increasing private sector financing in the delivery of infrastructure services in the country. To

KEI in association with SKI and DCCD 5-8 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

support its growth agenda, and given the knowledge that it could not shoulder the financial requirement through public funds alone, the government has tapped private sector resources to complement infrastructure requirements. To ease their entry and regulate the rights and obligations of operators, the government introduced the BOT Law in 1994 which is considered a first in the region. DPWH also echoes the desire to increase private sector participation. 46. Some PPP schemes that have already been utilized in the country include: Design-build-finance-operate schemes, Concessions with user charges based on cost recovery, and BOT schemes. The latter includes initial investment from the private sector, which is then entitled to initially own and operate the asset for a fixed period until it is transferred to the government. 47. PEGR implemented its Reform Agenda on strengthening the PPP program in the National road sector through capacity building of both DPWH and NEDA. There is an ongoing assessment of the impact of E.O. 686, i.e., transferring back the (TRB) from DPWH to DOTC and clarifying its mandate. 48. DPWH has also piloted Long-Term Performance Based Maintenance by Contracts (LTPBMC). Previously, maintenance fund allocation using the EMK formula did not capture needs and road conditions. As alternative to LTPBMC, DPWH is now planning to test several contract options of international best practices to adopt contractual arrangements for road maintenance. Such options included: Contracts for Rehabilitation and Maintenance (CREMA), highway asset management, Term Network Contracts (TNCs), road management concession, and road micro-enterprise. The following details the options: (1) CREMA involves performance based maintenance contracts under which all works, including some rehabilitation, is provided under a lump sum, fixed price contract. Normal duration was five years. Benefits were rapid improvements in road conditions, state of the art techniques, equipment, materials and management, and reduced maintenance costs. (2) TNCs involve long-term performance-based maintenance contracts for very extensive networks of 300–4,200 km. Benefits were innovations in methods and management, lower maintenance costs, more stable budget projections, and fewer contracts for road authorities to manage. (3) CREMA and TNCs improve on LTPBMCs as they use network efficiencies, cover longer periods, transfer more of the risks to the contractors, and require more innovations in management, materials, equipment, and techniques. 49. The BRP study suggests the use of the Users-pay principle to rationalize road infrastructure financing. BRP estimated that the cost of maintaining the national road network is PhP13.4 billion a year, which is equivalent to about PhP 19 Billion in 2007 figures. To assist financing, BRP is proposing road user charges through vehicle registration charges and fuel levy. Vehicle registration charges should be based on the equivalent cost of damage caused by the vehicle on the road while fuel levy would involve a three-phased increase to PhP1 per liter. Insofar as toll roads are concerned, data from DPWH and TRB show that existing user tolls are able to recover not only operation and maintenance (O&M) costs but capital costs as well.

KEI in association with SKI and DCCD 5-9 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

6. INSTITUTIONAL CAPACITY BUILDING

6.1 Background 1. DPWH is mandated to undertake the planning, design, construction, and maintenance of infrastructure (i.e. roads and bridges, flood control, water resources projects and other public works). DPWH processes are typically information intensive (i.e. traffic data, contract data, costs, personnel and management data) as well as labor intensive (i.e. collect, organize, store and distribute accumulated information). Moreover, it also aims to address various issues that arise specifically in project implementation, the need for transparency in operations and management, and the use of information technology, accountability and organizational culture. 2. ADB’s 2003 Country Assistance Program Evaluation for the Philippines found that the core problem of the road sector was the weakness of DPWH specifically on the maintenance and development of the national road network. Further emphasis was placed on the need to conduct adequate preparatory studies, site investigations, and engineering designs prior to project approval, as well as to address institutional weaknesses of the executing agency. 3. The need for institutional strengthening through the development of a Methodology and Framework for National Transport Planning was identified under World Bank’s National Road Improvement and Management Program (NRIMP). NRIMP is one of the first programs that concretely addressed Institutional Capacity Building (ICB). 4. The Rationalization Plan, as mandated by Executive Order (EO) No. 366 dated 04 October 2004, aims to transform the Executive Branch into a more effective and efficient government. It allows the government to eliminate redundancies in its operations, utilize present resources, improve its systems and procedures and use its savings to fund the Department’s priority programs and projects. However, this has brought about mismatched priorities as well as aggravated the lack of capacity of DPWH to implement its programs. 5. DPWH objectives include emphasis on customer needs (both internal and external), focus on reengineering of all significant processes, identification and prioritization of opportunities for improvement in cost, efficiency, effectiveness, and controls and the use of technology as an enabler. The Department is acknowledged to have one of the most modern communication networks within the entire government bureaucracy. However, a number of issues have arisen during the implementation of complex Information and Communications Technology (ICT) systems and process wherein the institution seemed to be taking in too much of what it is capable of handling. 6. Information and Communications Technologies (ICTs) have become an integral component of capacity building at all levels. Thus, to enable various reform agenda in the Department, it utilized and enhanced its information systems and technology infrastructure so as to realize its objective of creating a more open customer-driven culture and to create a coherent yet diverse organization.

KEI in association with SKI and DCCD 6-1 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

6.2 Objectives 7. The objective of this analysis is to evaluate and assess the status of DPWH ICB efforts through: a. Review of past, ongoing and planned efforts by other development partners such as the World Bank (WB), Australian Agency for International Development (AusAID), Japan Bank for International Cooperation (JBIC), Japan International Cooperation Agency (JICA), and others. b. Identify and evaluate past and current ICB efforts being carried out by the DPWH such as the Business Improvement and Implementation Projects (BIIPS) under the Road Improvement and Management Support System (RIMSS) and others. c. Identify policy and institutional deficiencies and constraints in the ICB efforts for road sector development, planning and management. d. Assess various resources and skills of DPWH personnel, identify management priorities, thrusts and directions for outsourcing and privatization by DPWH. e. Assess the potential of implementing various available ICB concept papers and project proposals submitted by various Offices concerned within DPWH 8. Through the above analysis, the Consultant aims to identify and recommend ICB measures that would effectively strengthen the institution’s provision of services in the road transport sector as well as augment and/or supplement other BIIP and RIMMS activities, such as: a. Identify and recommend ICB components and their relative priorities, component requirements and the corresponding organizational development. b. Recommend optimum and realistic implementation phasing of proposed ICB activities to be included in Tranches 1, 2 and 3. c. Prepare necessary concept papers, application request and other related documents.

6.3 Methodology 9. A comprehensive survey and review of documents prepared by various donor agencies such as the World Bank (WB), Asian Development Bank (ADB), JBIC/JICA, AUSAID as well as other development partners and related institutions was conducted to determine planned, existing, completed and closed projects for DPWH through website search, informant interview and library visits. Moreover, key informant interview was undertaken which involved representatives from various Department bureaus, donor agencies and through public consultations with stakeholders. 10. After the initial data were collected, synthesized and analyzed, prioritization of ICBs would be undertaken. This will be done through the utilization of a decision making tool, the Analytic Hierarchy Process survey, which can combine both qualitative and quantitative data. The said questionnaire would be

KEI in association with SKI and DCCD 6-2 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

administered to key representatives of the Department as well as key stakeholders and donor agency representatives.

6.4 Findings on the Institutional Capacity Building Components and DPWH Priorities

6.4.1 Previous ICB Initiatives by Development Partners in DPWH 11. Under the 1997 World Bank-initiated Highway Management Project (HMP), the ICB component included the provision of consulting services and equipment procurement to initiate the development of a comprehensive Road Information and Management Support System (RIMSS) in DPWH. Its implementation had been continued under the World Bank NRIMP and partly with the ADB 6th Road Project. 12. The ADB Sixth (6th) Road Improvement Project identified ICB as one of its major components which included training, physical measures to supplement civil works, equipment provision as well as consulting services to develop DPWH technical capabilities. The evaluation of its ICB component revealed that the overall objective was met with mixed success with half of the subcomponents rated as partly successful - two were cancelled and only two were satisfactory or highly successful. Although capacity building efforts under the project appeared to have been problematic, no specific reason was given in ADB’s project completion report (PCR). It was also implied that there was lack of interest within the Executing Agency (EA) to implement change. Cancelled sub- components include: Road resealing training, hazard mapping and detailed design for future projects. 13. Another related issue which cropped up in the ADB 6th Project was the Right-of-Way (ROW) acquisition. This is aimed to be addressed in the World Bank’s NRIMP-2 to be implemented by the Department’s Environment and Social Sector Office (ESSO). The thrust is on the implementation of systems for ROW acquisition and procedures. 14. The 6th ADB Project Completion Report further recommended that DPWH institutional capacity be strengthened, in particular, at the project level, there was a need for additional assistance in setting up a computer-based management system for national roads, overloading, and road safety programs, as well as in completing the Land Acquisition and Resettlement Program (LARP) activity of compensating the remaining affected families through disturbance allowances. Moreover, it was reiterated that compliance with outstanding covenants, especially those related to sustainability, must be followed. 15. The World Bank has been one of the frontrunners and staunch advocate in incorporating ICB component in the road sector. The inclusion of ICB was also taken on by the REAPMP. 16. The NRIMP is a 3-phased project initiated in CY 2000. This is one of the first programs which concretely addressed a comprehensive package on institutional capacity development. NRIMP-1, completed in March 2007, introduced various business processes improvements under RIMSS while NRIMP-2, approved in May 2008, incorporates a number of important changes based on lessons learned in Phase I.

KEI in association with SKI and DCCD 6-3 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

17. NRIMP-1’s thrust was through the implementation of a centrally- programmed preventive maintenance program, and through piloting long-term performance-based contracts which provide comprehensive management of long sections of road. The Road Fund was also established and became operational. Although with a two-year delay, the critical financial management and environmental safeguards processes were put in place. The Department was able to develop and pilot various sets of business process improvements and tools aimed at modernizing road management and business processes. 18. Legislative support towards the execution of a road authority for the NRS had been weak. This was due to the frequent leadership changes and severe fiscal constraint in the period 2002 to 2006. Through an independent review of NRIMP-1, it was determined that even though triggers and timeframe were overly optimistic, given the implementation capacity of the Department, the development objectives of NRIMP-1 had been met and justified the continuation of the World Bank in the program. 19. NRIMP-2 focuses on the institutionalization of the technical and business process improvements developed under NRIMP-1 as well as on establishing a more effective corporate processes and structures to increase efficiency, enhance governance and strengthen integrity at all levels and in all operations of the Department. 20. NRIMP-2 consists of two main parts. Part A focuses on the national road improvement and asset preservation while Part B includes a comprehensive range of institutional and capacity development measures which is aimed at addressing institutional weaknesses and inconsistencies which allowed for incidences of corruption. The latter component includes a list of compendium designed to build institutional capacity and governance, to strengthen the fiduciary controls over the use of loan proceeds, and to strengthen social accountability and the demand for good governance from civil society. 21. NRIMP-2 component B has four sub-components. Sub-component B.1 or the Business Process Improvements centers on the institutionalization of planning processes and financial management systems introduced and piloted under NRIMP-1 as well as the expansion of its implementation towards the regional offices and selected number of district offices of DPWH. The component also includes the institutionalization of procurement and cost estimation processes, enhancement of design management and processes through updating of design standards and incorporating value engineering, enhancement of IT and expansion of the communication network to include 45 district offices and equipment procurement to support Quality Assurance of the Department. Sub-component B.2, or the Corporate Effectiveness, covers the restructuring, upgrading and modernization of corporate processes, developing sustainable corporate partnerships, improvement of road management service delivery and integrity support. Sub-component B.3, or the Strategic Sector Reform, focuses on the strengthening of the operations of the Road Board and Road Fund as well as review of its framework for subsequent sector restructuring. Sub- component B.4 complements the previous three components as a means of empowering the management team of NRIMP-2 to lead and manage change through various opportunities in trainings, study tours, workshops and consultations.

KEI in association with SKI and DCCD 6-4 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

22. To ensure project sustainability, continuity and non-replicability of initiatives, some of the ICB components initiated by World Bank has been taken up and continued by various donor agencies and development partners such as JBIC and ADB so as to ensure continuity and open communication and cooperation among the development partners. This was done to avoid future expensive mistakes and avoid the past and present pitfalls within systems. 23. A number of project components would operate in a co-financing partnership with other Development Partners. As a commitment of AusAID, Corporate Effectiveness packages will be supported and implemented under the auspices of the Philippines-Australia Partnership for Economic Governance Reforms (PEGR) and Philippines-Australia Human Resource Development Fund (PAHRDF). PEGR is being implemented under a partnering arrangement between the Department of Budget and Management (DBM), National Economic Development Authority (NEDA), Department of Finance (DOF), the Australian Agency for International Development (AusAID) and Coffey International Development (Coffey ID). 24. Programs that have been stipulated in NRIMP-2 and executed under PEGR were: (1) Financial Management (FM) Service to DPWH wherein the task was to provide assistance on strengthening the internal controls for supporting documents associated with financial transactions at the Central Office, assistance in improving financial reporting, parallel testing of the FM Budget Module with subsequent adjustment of the software based on COA’s input, installation of Modules and Outcome Based Monitoring Framework; (2) Integrity Strengthening Strategy considered a number of programs aimed at enhancing DPWH transparency by improving DPWH communications network and department-wide implementation of IT-enabled systems. These include the institutionalization of ROAD WATCH or “Bantay Lansangan” (BL) in partnership with various Non-Government Organizations (NGOs) and peoples organizations across the nation so as to encourage community vigilance and serve as a platform for citizen’s voice, establishment of units to handle complaints and investigate cases, implementation of stricter procurement conditions and utilization of independent procurement evaluators, sustenance of training for all members of its various Bids and Awards Committees (BAC) particularly in collusion detection and incorporation of a computerized Business Systems for Procurement and Financial Management (BSPFM); and (3) Supporting Road Partnership (Road Watch) which concentrated on BL volunteer training in engineering topics for fraud detection and liaison with the DPWH and incorporating World Bank comments into the Draft Strategic Communications and Advocacy Plan (DSCAP) for BL. 25. The Contractor commenced the BL volunteers’ first round monitoring of selected foreign-assisted and locally-funded road projects nationwide, design of data input and processing system, and the review and analysis of DPWH road and bridge databases. Moreover, BL along with their partners and other stakeholder will utilize the Road Sector Status Report Card, developed by PEGR, which will allow them to validate and pre-test procedures and manual on construction and maintenance, gather data, analyze systems and calibrate computer programs for road network analysis, systems design and data analysis, based on DPWH’s NRIMP data base.

KEI in association with SKI and DCCD 6-5 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

26. Under the PAHRDF, the program includes a Human resource and Leadership Development wherein its first phase will culminate in early 2009 and its second phase, under NRIMP-2, will start in the first quarter of 2009. The package includes the development of a comprehensive HR and leadership Development Plan to be formulated and developed to support and empower staff skills development as well as to enable staff to align with the changing needs and directions of an effective corporate culture. A key goal is to develop leadership skills and potential among younger and mid-level professional staff in order to attract and retain high calibre professionals. A second goal will be to streamline and modernize recruitment, incentive and professional mobility to processes across DPWH, including merit-based performance management corporate standards and an internal communication strategy, in an interactive manner, including through assistance, coaching and mentoring. 27. NRIMP-2 resulted in a stricter, more comprehensive set of anti-corruption measures included in the project. To minimize all possibilities of unnecessary human intervention, World Bank required the adoption of new sanctions guidelines on fraud and corruption so as to combat a much wider scope of activities linked to fraud, collusion and obstruction of investigations. This was triggered by circumstances in 2003 when the Bank’s supervision identified signs of bid-rigging in the procurement of two road contracts under NRIMP-1 and in two further rounds of bidding in 2004 and 2006, and rejected award of the contracts. 28. An investigation of the Department of Institutional Integrity (INT) concluded in 2007 revealed that a cartel of contractors engaged in corrupt and collusive practices in all three rounds of bidding. These findings were disclosed to the Government of the Philippines in November 2007 for possible follow-up under Philippine law. The investigative findings served as crucial factors in the design of mitigating measures for NRIMP-2. Furthermore, INT initiated the Bank's internal process to determine whether the practices detected in the investigation merit the application of Bank Group sanctions. 29. NRIMP’s evaluation emphasized the need for transparency and accountability in government transactions which prompted the creation of the Procurement Transparency Group (PTG). The group was formed to evaluate, comment on, record and monitor procurement activities of all government agencies and offices. Its membership includes government agency representatives from the Presidential Anti-Graft Commission, NEDA, Department of Justice (DOJ), Department of Budget and Management (DBM) and the Department of Interior and Local Government (DILG). 30. This encouraged strengthening the involvement of civil society through the institutionalization of BL or Road Watch, an independent oversight and anti- corruption group which is mandated to oversee road projects as well as to serve as platform for citizen’s voices to be heard. Its tasks include: checking DPWH fund spending, ensuring that value for money is being achieved, and reporting on the actual results of improvement in road conditions with the end goal of minimizing, if not eliminating, corruption and waste in the Department. 31. The ICB component under the REAPMP which is funded by JBIC is designed to complement components of NRIMP-1 and 2 which have been initiated but not fully implemented under NRIMP-1. REAPMP focused on three result areas,

KEI in association with SKI and DCCD 6-6 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

namely: (1) Maintenance through the enhancement of RMMS to cover training, pilot run, institutionalizing and roll-out to all regions and districts; (2) Enhancement of Road Traffic Safety through the upgrading of the Traffic Accident Reporting and Analysis System (TARAS), conduct of trainings to DPWH- PNP, and deploying them to various districts and improvement of the Road Safety Audit (RSA); and (3) Physical Resources Management by strengthening DPWH Quality Assurance System for Maintenance and Construction (QASMC), Build-up of Capability of local consultancy and contractors for Road Maintenance, enhancement of design capability for road hazard mitigation and provision of DPWH Basic Equipment Capability to Respond to Emergency Projects.

6.4.2 Constraints to Change: Policy and Institutional Deficiencies within DPWH 32. The ongoing and planned ICB initiatives within DPWH are structured based on result areas for easy categorization and classification of ICB components. It shows ICB components which are being prioritized by various donor institutions and the target function. The matrix is helpful especially in ensuring no overlaps and duplication of efforts are being undertaken among the various ICB initiatives to be implemented. The bulk of the initiatives cut across various bureaus and offices and targets the enhancement of their various functions through systems improvement, hardware acquisition and implementation of new systems, institutional support through coach, while Core Processes for Highways include: (1) Plan, (2) Build (Design and Construction), and (3) Operate. These processes are associated with DPWH’s highway assets while support processes for public works include: (1) financial management, (2) physical resource management, (3) human resource management, (4) information management, and (5) procurement management. RIMMS is being continued under NRIMP-2 wherein the bulk projects identified focuses on IT improvements. 33. Road traffic safety, implemented under the 6th Road Project, was cited as one of the successful programs implemented within the Department because of the development and utilization of road safety manuals and handbooks as well as the continued operation of the Traffic Accident Reporting System (TARAS) which can identify potential high risk areas, accident location, black spot sections and required civil works intervention. One issue identified was the lack of funding to implement the required civil works intervention. 34. As part of its Business Process Improvements, Quality Assurance (QA) was identified as one of the important components of ICB for DPWH. This will be addressed under NRIMP-2 in the form of enhancing capacity for managing quality in implementation, support applied research and evaluate performance and cost effectiveness in road works. This will also include: standardization of processes, trainings, procurement of material testing equipment, training of district personnel as well as individual performance modules, capacity building for training management, upgrading of library equipment and materials, improvement of personnel information systems; applied research and development; identification appraisal of geotechnical hazard areas: research programs for long life roads; surface traffic; MIS and project monitoring equipment. 35. ICT served as an enabler in the institution. Information systems at DPWH are considered as one of the most advanced compared to other government

KEI in association with SKI and DCCD 6-7 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

institutions. The systems put in place under NRIMP-1 is said to facilitate DPWH processes. However, various systems failures and problems have been noted, specifically in the maintenance contracts, supply contracts, system sustainability, systems obsolescence, hardware and system maintenance, technical errors and system compatibility, among others. The costs incurred to purchase original software and hardware is relatively high and its productivity per cost is not justifiable given the system issues that arose thereafter. Also, issues related to quality, reliability, usability of the data are questionable due to the lack of performance benchmarks. 36. Moreover, there is lack of continuity within the system given the absence of a maintenance agreement. The Monitoring and Information Service (MIS) is trying to fill in this gap at present. However, system problems still exist such as very slow system and unreliable networks and capability of hardware could not accommodate the increase in applications. Improving the bandwidth is one of the initial solutions to improve the system. The completion report for RIMSS expounded on the difficulty to integrate and coordinate the large number of contract packages implemented within RIMSS, prompting the hiring of services of a coordinating consultant. This also contributed to further delay in data gathering and retrieval. 37. The lack of performance benchmarks was also mentioned during the strategic planning session which would help assess the performance of the systems which was initially secured at great costs. It was hoped that the new ICB component would not fall within a similar dilemma. 38. The RIMSS Completion report also discussed that, compared to other components, there was low priority granted towards Human Resource Management (HRM) and Organizational Strengthening programs in the Department. Thus, it was once again reiterated that to ensure productivity within the DPWH, human resources development, along with man-made capital and natural resources, are essential and should be given due importance. 39. An examination of DPWH manpower personnel shows that the average age of existing employees is 53 years old, almost of retirement age, and majority had been in service for the past 16 to 30 years. Although a number of individuals are quite receptive to change, the majority within this age group would less likely be willing to adapt to the introduction of new processes and would show resistance to the implementation of new systems. 40. In addition, Table 6.4.2.1 illustrates a high percentage of casual and contractual personnel at various levels of DPWH which was further exacerbated by the implementation of the Austerity Measure and the Rationalization Plan in the Department. Moreover, these individuals are also not entitled to government benefits and have temporary and irregular status. Issues that need to be addressed are: frequent turnover of staff especially at the district level, the lack of accountability and job ownership, mismatch between the function and training provided, lower than required education level, seemingly low level of productivity and work performance, among others.

KEI in association with SKI and DCCD 6-8 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 6.4.2.1: Manpower Complement (as of June 30, 2007) Number of Positions Regular Employees Office Contract Daily/ Regular Charge to Total ual Casual Maintenance Fund Department Proper and Staff 2,072 10 171 0 2,253 Bureaus Regional Offices 14,701 41 7,419 641 22,802 Project Management Offices 23 823 468 0 1,314 Grand Total 16,773 874 8,058 641 26,346 Source: http://www.dpwh.gov.ph/about_us/org_chart/manpower/manpower_complement.htm

41. Learning approach in the Department takes on a piecemeal approach wherein staff and personnel learn by doing and have been subjected to inherited approaches and procedures adapted from previous management. In the long run, this can be a costly exercise and hampers the organization’s willingness to adapt to new ways of doing things. 42. Effectiveness and efficiency of an institution may also be attributed to a leader’s management style. Leaders with good management skills help improve the organization. However, the frequent change in leadership due to changing political climate results in the appointment of individuals lacking in management faculties that would ensure efficiency and effectiveness of institutional processes. 43. To address the issues, change management is being proposed at the department. NRIMP-2 acted on this through the institutionalization of procedures and systems as well as the implementation of a human resource and leadership development program. A planning group is looking at areas prioritized for improvement. Priority areas were implemented under NRIMP-1, NRIMP-2, and complementing through the other areas are being proposed now under REAPMP and under ADB. 44. Human resource capacity building must encompass aspects of awareness- raising, education and training, attitude change, confidence building, participation in decision-making and action. A critical goal of HRD is that of maximizing people's potential to contribute to development by participating fully in all its activities. Through capacity building, individuals and groups are empowered to expand their abilities to more fully participate in the development process. As people increasingly direct and control the process of change that they themselves are bringing about, then the knowledge, skills, attitudes and behaviours also requires change. 45. The needs assessment conducted by PAHRDF established the need for organizational development and institutional strengthening within the Department to address the lack of top level leadership and management skills. Moreover, to address the need, NRIMP-2 formulated a comprehensive Human Resource and Leadership Development (HRLD) Plan to support and empower skills of DPWH employees. The strategic planning exercise was implemented under the auspices of the PAHRDF aimed to develop and enhance the capacity of DPWH in its service delivery and administrative governance, particularly human resource management. The aim of the exercise is to be able to define the strategic directions of DPWH from 2009 to 2016 or a period of 8 years, establish

KEI in association with SKI and DCCD 6-9 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

the key result areas and planning parameters as well as to come up with performance objectives per strategic priority. 46. The whole program included corporate planning, strategic planning and operations planning. While the exercise involved upper and middle management in the first phase, initiated in July 2008 and is about to be completed by 08 December 2008, the second phase, tentatively set to be implemented in 2009, is aimed to replicate the program but at the regional level and a selected number of staff from the district level. 47. The results included performance objectives, Operations Plan of each Bureau and to ensure the sustainability of the plans and projects, it was determined that there was a need for the institutionalization of the strategic planning process and operations planning process. Also, through a Special Order, the Strategic Planning Committee (SPC) was formed headed by the Assistant Secretary for Planning. Membership includes: selected service directors, assistant bureau directors, selected division chiefs.

48. Post Evaluation Exercise will be conducted by PAHRDF every six months after the culmination of the program to assess the outcome of the exercise. Likewise, the SPC also signified their intent to undertake post-evaluation activities. 49. The aims of the sub-component on organizational effectiveness are to increase effectiveness as well as improve performance and management of DPWH staff. The initial focus will be a corporate audit of the DPWH which will be used as the basis for developing a corporate plan and a business plan. The former will include the design and implementation of a new organization structure and staffing plan to update the Rationalization Plan. This will also include the structuring, financing and monitoring of an incentives program to encourage excellence in performance. 50. Corporate modernization scheme is also underway which aims to conduct strategic reassessment and organizational assessment of the mission and mandate of the DPWH including the 2006 Rationalization Plan so as to evaluate the need for an alternative corporate structure. The program aims to address issues related to the organization, staffing, processing time for various bureau and office functions. Through internal consultation, strategic reassessment exercises and recommendations, the task will produce plans for an enhanced organizational structure, streamlined management, and a comprehensive human resource and leadership development plan. After the approval from DBM and adoption by DPWH, the plan would be implemented as a second stage under the mandate of the Rationalization Plan for DPWH. The last item, integrity development aims to support the implementation of the Integrity Strengthening Action Plan of DPWH. 51. ICB Efforts concurrently require a human resource development component in the form of trainings. The Department has strengthened IT literacy of its personnel through various ICT trainings and the conduct of refresher courses. However, funding for training are limited given that the bulk of DPWH budget goes to civil works and maintenance. This has further been curtailed by the Rationalization Plan in 2006 which required that the annual training calendar identified by the BRS requires approval from the national government before its

KEI in association with SKI and DCCD 6-10 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

implementation. Due to approval delay, the 2008 training courses have not been implemented since the start of the fiscal year. Other issues identified were: lack of equipment and facilities, lack of experts, low remuneration for speakers, high turnover of personnel being trained, mismatch between trainees and actual scope of work, training multiplier effect is highly dependent on the attitude of supervisors, lack of an evaluating and reviewing body, as well as regularity in post-evaluation of trainings and workshops. The process of identification of training needs, provision of trainings and utilization of knowledge gained should be re-evaluated to rightfully reflect the DPWH’s thrust and ensure wider impact. 52. As the importance of ICB entered the mainstream of development models over recent years, there is a constant search for successful capacity building templates which can be replicated over multiple locations. A recurring frustration for international donors in their pursuit of effective aid spending has been the lack of capacity of government to deliver the intended programs. It was identified that the concept of ICB provision is rather vague within the DPWH and the initial perception of ICB approaches are limited to training, consulting services and equipment provision. Thus, there is a need to widen the understanding and ensure a more open understanding of the concept. Training is also necessary but to ensure adequate use of funds for trainings would bring about huge impact on the organization, there is a need to re-evaluate the whole process of identification and provision as well as post-evaluation of training needs. Training courses should therefore be updated regularly. 53. A previous exercise administered by Southeast Asia Interdisciplinary Development Institute (SAIDI) in 2005 identified the DPWH five (5) core values which need to be strengthened. These are public service, integrity, professionalism, excellence and team work. Further activities should bring forth and concretize these core values. 54. The process of change management and business process reengineering are difficult processes which pose the danger of misunderstanding and lack of acceptance which dictates more substantial efforts in awareness building and consensus. The implementation of new methods and technology should be implemented within an overall framework of its relevance and potential replicability to other areas as well as ensuring that the capacity of users are at par with the system’s requirements. It involves assessing how the talents and energies of staff can be enlisted and upgraded on a regular basis to improve these institutions' operations. 55. The Consolidated Review Report on Relevant Transport Sector Work completed for PEGR indicated that DPWH personnel in general have high technical planning capabilities and skills which contrast with the local government units directly dealing with the road network. A gap arises between the technical-know-how of central personnel and staff at the regional/district offices. 56. The value of skills improvement and technical capabilities, especially in the short term, is undoubtedly important for capacity development, thus, should be encouraged. However, its sustenance as well as the proper matching of required trainings and actual personnel function are still recurrent issues. Moreover, utilization and retention of already available capacities can only be

KEI in association with SKI and DCCD 6-11 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

achieved if this is analyzed in relation to the overall constraints identified such as political and organizational issues. 57. Endemic corruption and collusion present within the Department heightened the Department’s negative public image and required that Capacity Building needs should address its bureaucracy and ineffectiveness. This has prompted the creation of the Public information division (PID) which is tasked to manage and optimize information needs of the Department, address the increasing need for stakeholder meeting, change the negative image of DPWH, provide a complaints desk as well as encourage and increase the involvement of civil society to ensure transparency in Department transactions and processes. 58. The lack of cooperation between districts and the region resulted in less efficient work output such as ensuring regular data collection and update as well as smooth transfer of data from district to the region. Moreover, active participation and involvement from other line units such as construction, research and maintenance should be encouraged to determine and optimize effective planning of systems change and improvement within DPWH as well as ensure smoother implementation of new systems. 59. Further action is still needed in several areas such as in project management which should include quality assurance. Although it has been the focus of REAPMP and NRIMP-2, a quality assurance system for engineering designs and estimates should be established and implemented across all regions. 60. Performance monitoring of DPWH capabilities should be conducted on a regular basis and should be assessed based on specific desired changes given its complexity and methodologically-challenging procedures. 61. Management priorities should focus on increasing the participation of the private sector, integrating value engineering, knowledge based development and increasing thrust on outsourcing. 62. Increasing thrust on outsourcing should be considered with the rationalization plan implemented in tandem with the outsourcing of construction and maintenance works and supervision. To minimize the impact of the rationalization plan, it is important to reconsider its impact on affected employees and introduce ways and means to assist displaced engineers and technical personnel such as support in construction and maintenance works or as groups that can provide contract works with the department. 63. To supplement the lacking technical capabilities within the region, outsourcing, contracting training services or strengthening partnership to existing training institutes such as Development Academy of the Philippines (DAP), University of the Philippines (UP), among others, could be an alternative option. 64. Strengthening stakeholder participation in DPWH procedures should be encouraged to increase transparency, awareness and accountability in government transactions.

KEI in association with SKI and DCCD 6-12 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

6.5 Proposed ICB Programs 6.5.1 Identification Process

65. The previous sections present a review of past and current ICB initiatives in the DPWH. Gaps and constraints have been identified and pointed to potential areas of ICB that would put in place sound and adequate systems for the DPWH to perform effectively its core functions. 66. ICB interventions that have been identified are basically based on the following criteria. (1) Those that continue existing activities. (2) Those that will institutionalize established systems. (3) Those that will ensure the successful implementation of established systems and processes. (4) New initiatives to address fully the ICB needs of the DPWH Strategic Plan.

67. The consultant worked closely with the Project Technical Working Group and the ICB Component Group of NRIMP-2 in preparing an ICB package for this project. The resulting package is described below, with project profiles shown in Annex 1.

6.5.2 Proposed ICB Projects (1) Preparation of Manuals and Guidelines in the Conduct of Post Evaluation of DPWH Completed Infrastructure Projects and its Application to Pilot Projects 68. There is a recognized gap in the level of technical–know–how of the Department’s personnel in the Impact/Post-evaluation of completed projects. A manual and guideline for the conduct of post- evaluation of completed projects would increase the knowledge base of its personnel and thereby enable them to accomplish their functions better. 69. The project aims to procure consultancy services to develop DPWH Manual for Impact/Post-evaluation of completed projects. The said manual is targeted to be adoptable either to foreign or locally-funded projects. The scope of the consultancy services shall include: (1) the review of the existing criteria in the selection of Projects subject to impact/post-evaluation and make revision if deemed necessary and (2) review of available JBIC Handbook in the conduct of Ex-Post Evaluation of completed JBIC funded projects and the Benefit Monitoring & Evaluation for possible merging/revision in the preparation of Independent Manual. Further, it shall include the procedural steps on the following: (1) Procedures of Post-evaluation, (2) Tools of evaluation, (3) Points of evaluation along with the Development Assistance Committee (DAC), and (4) Feedback of evaluation findings. Other components of the proposed project are: (1) conduct of actual Post-evaluation of pilot projects, (2) training of Planning Service staff, other than the counterparts for sustainability, (3) the preparation of training materials that fits the training needs of the participants, in the conduct of Impact/Post-evaluation Training, and (4) the formulation of post-evaluation framework, procedure, guidelines and manuals for the assessment of

KEI in association with SKI and DCCD 6-13 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

performance of the DPWH versus the target Medium Term Public Investment Program (MTPIP). 70. The project is targeted for completion within two (2) years and has an estimated cost of PhP 95.7 Million.

(2) Development and Installation of Program Management Information System. 71. The overall objective of the project is to improve the tracking process of a project including feasibility study, design, environmental compliance, procurement of right-of-way, construction, project hand-over, maintenance and post-evaluation. The following activities will be undertaken: (a) Development of effective project management techniques that would include the delivery of projects on time and within budget; (b) Development of an automated project record-keeping application that tracks project performance on a daily basis and links with the payment process; (c) Development/procurement of a project management tool, including project management training that includes PERT/CPM methods and implementation, project management documentation, resource utilization for people, equipment and funds; (d) Development of a project implementation status monitoring application that will replace the Project Monitoring System (PMS) and Project Management Office Monitoring System (PMOMS) of the Department; and (e) Development and implementation of contract turn-over policies and procedures. 72. It may be noted that the project will entail the Development of application systems for some phases of a project life cycle where, currently, there is no enterprise application supporting them, e.g., environmental compliance management, design management, and post evaluation. It will also include the development of the application that would support the Contractors’ Performance and Evaluation System (CPES) and the Consultants’ Performance Evaluation System (CoPES). 73. The project is targeted for completion in 3.5 years and has an estimated cost of PhP 300 Million.

(3) Capability Building in Infrastructure Development and Quality Assurance 74. The aim of the project is to improve pavement performance in the country through a suitable research program, the improvement in material testing capability and capacity and the installation of a quality assurance system. The research program would focus on pavement performance, particularly concrete/asphalt mix design. 75. The services of technical coaches will be engaged to assist and provide the DPWH staff expertise in the field of Quality Assurance Management. Materials testing equipment will be acquired to upgrade the DPWH laboratories

KEI in association with SKI and DCCD 6-14 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

nationwide. Upgrading of facilities will cover the DPWH district, sub-regional, regional and BRS laboratories. 76. The project will also include engagement of consulting services to prepare and implement an appropriate training program to demonstrate surface dressing techniques for maintaining asphalt roads. The intention is to form a coherent, competent and skilled team that would become the core resource for subsequent training courses. 77. The project is targeted for completion within 8 years and has an estimated total cost of PhP760,880,000. The amount covers consulting services, requirements for research, and acquisition of materials and equipment.

(4) Strengthening the Environmental and Social Assessment Capability of DPWH 78. As mentioned earlier, one of the problems within the Department is the need to monitor, evaluate and assess programs. This project will increase the assessment and monitoring capability of the Department in terms of environmental and social safeguards. This specifically pertains to the management of Right–of–Way within the framework of Asset Management. 79. The DPWH has already taken several steps to strengthen its environmental management capability. These include the Highway Management Project and NRIMP-1 and 2. Under NRIMP-2, the use of GIS Applications for ROW functions was done. Initially, the use of GIS for ROW was piloted within 3 districts, i.e., one each from Regions 3, 7, and 11. The Department, however, envisioned that the piloting for GIS application for ROW will be expanded and replicated to the rest of the district offices in stages. 80. The project is targeted for completion within 7 years and has an estimated cost of PhP 285.0 Million.

(5) Procurement of Technical Assistance for the Gender Mainstreaming in Infrastructure Development. 81. One of the observed problems within the Department is the low level of productivity and performance of some of its employees. The project would increase the morale of the Department’s women employee. This would increase the chances of higher productivity and performance levels. 82. The project aims to formulate gender-sensitive policies and strategies for the DPWH. It also aims to prepare a 6–year gender action plan highlighting prioritized programs, projects and initiatives that will ensure gender-quality in infrastructure development. The project also includes: (1) an initial analysis of gender–related issues and concerns, (2) the implementation of gender–sensitive pilot projects, (3) the organization of women’s group for the department, and (4) training on trainers to enhance knowledge on gender and development within the Department. 83. The project is targeted for completion within three years and has an estimated cost of PhP 74.1 Million.

KEI in association with SKI and DCCD 6-15 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

(6) Procurement of DPWH Communication Network Equipment (Voice and Data) 84. An essential component of an organization, especially those as large as DPWH, is its communication network. The project would respond to the lack of voice and data network equipment. The project aims to connect 73 additional District Offices to the Wide Area Network (WAN) of the Department. It includes the construction of a network room or data center, power house and concrete pedestal. It also includes the procurement of necessary equipment and accessories, as well as, the connection to the Department’s Wide Area Network. 85. The project is targeted for completion within four years and has an estimated cost of PhP 423.6 Million.

(7) Procurement of DPWH IT Computer and Software 86. The project responds to the discrepancy in the information and communication system of the Department. Specifically, it will broaden the network connectivity coverage of the Department’s information and communication technology through the acquisition and installation of necessary hardware and system software for 73 District Offices. 87. The project aims to expand the DPWH’s enterprise-wide platform of database servers, application servers, administrative servers, and client workstations. It includes the implementation of a three–tiered client server architecture running a number of enterprise applications in all Department Offices. Also, the Department intends to implement a virtualized server environment in the Central Office. The project also includes the procurement and installation of necessary equipment and softwares. Finally, it also includes the required training and orientation to implement the WAN/LAN connectivity in the most effective, efficient, and optimal manner. 88. The project is targeted for completion within four (4) years and has an estimated cost of PhP151.2 Million.

(8) Comprehensive Human Resource Development 89. Some of the observed problems within the Department are: (1) the low level of productivity and performance of some of its employees, and (2) old fashioned approaches and procedures. The project would focus on the over–all development and management of the Department’s workforce. 90. The project aims to develop a comprehensive approach to the management of the DPWH’s workforce. The Department recognizes that its workforce is its most valued asset who individually and collectively contributes to the achievement of the goals and objective of the organization. The project has 4 sub–components, namely: (1) Leadership Development, (2) Organization Culture Building, (3) Development of a Comprehensive Human Resource Development Plan (CHRDP), and (4) Development of process and specifications for procedures and the implementation of an Integrated Human Resource application system. 91. The project is targeted for completion within 3 years and has an estimated cost of PhP386.1 Million.

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(9) Enhancement and Institutionalization of Traffic Accident Reporting and Analysis System (TARAS) 92. TARAS has been developed as part of the REAPMP. However, the installation of the system involving other agencies like the Philippine National Police (PNP) has not yet been done. It is also necessary to deploy the TARAS to the DPWH District Engineering Offices (DEOs) as currently only the Regional Offices (ROs) are authorized TARAS Users. 93. It is proposed that as part of the project, the TARAS be enhanced. Enhancement would include a shift in entry of accident data from the present manual encoding to direct input from an electronic device to prevent backlog and delays, as well as improving Reporting and Analysis Module (RAM) of the TARAS. It is also desirable to integrate other road accident data systems of other agencies, e.g. reporting and analysis system of the Development Authority (MMDA) and the Department of Health (DOH) with DPWH TARAS for a unified accident data system in the Philippines. 94. Part of the proposal is the delivery of continuous training for DPWH and the PNP personnel on accident data collection and on the new processes of TARAS, say twice a year for PNP Officers. It is also proposed that the application of TARAS be expanded to include local roads by conducting pilot application in the selected provinces/cities in Luzon, Vizayas and Mindanao. 95. The total cost of the proposal is PHP 42.2 Million spread over a period of three (3) years.

(10) Improvement of Road Safety Audit (RSA) System 96. Just like the TARAS the development of the RSA was part of the REAPMP. Its application, however, had been limited. The purpose of this project is to make RSA an integral part of a sustainable Accident Prevention Program (APP) for the national road network. Towards this end, it is important to continue the conduct of training program for DPWH personnel and other government and private institutions on the principles and procedures of conducting RSA. An accreditation system would be put in place for personnel who had undergone training on RSA. 97. The project includes a provision for extending assistance to the Planning Service in the procurement and supervision of road safety projects. The conduct of RSA on road sections not identified as black spots to be pilot-tested. The proposed project would also entail a review of existing RSA policies and procedures. 98. It is estimated that the project would cost PHP 185.5 Million over a period of six (6) years.

(11) Road Partnership (Bantay Lansangan) Phase II 99. The general objective of the project is to provide continuous support to sustain “Bantay Lansangan” (BL) to effectively ensure its operation as a partner in good governance outside the sphere of government funding and vested interests. Still in its infancy, BL needs outside support to carry on its mission to uphold its advocacy in promoting changes and reforms in the country’s road sector policies.

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100. The project would basically provide funding support to: (1) Continue participatory results monitoring and evaluation through public expenditure reviews in each budgetary cycle, planning and procurement. (2) Promote awareness of comparable and relevant global development in the delivery of road services and road user strategies in improving road service delivery through networking and linkages. (3) Develop a series of training seminars, workshops, etc. on donor anti- corruption policy and on how DPWH staff and other stakeholders can best advance integrity in DPWH operations. (4) Prepare and publish Road Sector Status Report Card. (5) Provide the public relevant information on national road services as monitored and analyzed by making appropriate use of media, internet, public forum and dialogues. (6) Build BL’s database on road sector information.

101. The total estimated cost of the project is PHP 48 Million spread over three (3) years.

6.5.3 Summary of Initial Cost Estimates 102. The implementation of these projects will be spread over 3 tranches. Tranche 1 is from 2010–2011, Tranche 2 is from 2012–2014, and Tranche 3 is from 2015–2016. 103. Table 6.5.3.1 shows the estimated costs per project per tranche. Also shown is the total estimated cost per tranche. Table 6.5.3.1: Phasing of ICB Proposals

1st Tranche 2nd Tranche 3rd Tranche TOTAL 2010 - 2011 2012 - 2014 2015 - 2017

Project Post-Evaluation 20.0 75.7 95.7

PMIS 150.0 150.0 300.0 Infrastructure Devt. & 140.0 407.8 213.1 760.9 Quality Assurance Environmental & Social 95.0 95.0 95.0 285.0 Safeguard & ROW Gender Mainstreaming 20.0 54.1 74.1

Communication Network 114.0 309.6 423.6

IT Facilities 35.0 116.2 151.2

Comprehensive HRD 50.0 336.1 386.1

TARAS 20.0 22.2 42.2

RSA 50.0 85.5 50.0 185.5

Bantay Lansangan 20.0 28.0 48.0 TOTAL 714.0 1,680.2 358.1 2,752.3

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7. TRANSPORT SECTOR ROADMAP FOR FUTURE ADB PROJECTS IN THE PHILIPPINES

7.1 Introduction

1. Currently, road transport continues to be the dominant mode of transportation in the Philippines, accounting for about 22 billion ton-kilometers per year or 53 percent of the total domestic freight traffic, and around 83 billion passenger-kilometers per year or 89% of the total domestic passenger traffic. The Philippines has a total road network of 205,497 km as of 2007.

2. Transport investments play an important role in generating economic growth Transport's contribution to sustainable economic growth depends on the extent to how economic activities can be linked efficiently and economic distances and costs reduced. The major role of trunk roads, secondary networks, and rural access improvements, involves enabling increased agricultural production, higher productivity, increased non-farm activity, improved labor mobility and expanded participation in better health and education services.

3. Furthermore, it is well recognized that economic growth is the major force contributing to poverty reduction. Transport investments can facilitate poverty reduction in two ways(i) by directly increasing the productivity of the poor through improved accessibility to schools, clinics, markets, businesses, etc; and (ii) by increasing the productivity of employment generating business and industry. Targeting transport investments to the poor or to poor regions should be an integral element of a sustainable growth strategy that includes investments in transport infrastructure and services.

4. Inadequate maintenance, on the other hand is resulting in large losses of capital assets that are lost prematurely due to the neglected and deferred maintenance. There is a common misperception that a lack of resources is the reason for poor maintenance. The reality is that much more money is spent on reconstruction of roads than would have been necessary had maintenance been done in the first place.

5. It is imperative that road asset management principles are adopted in all countries to determine the optimum use of available resources. In addition, where road maintenance neglect has resulted in large backlogs in maintenance and a deteriorating network, the creation or efficient functioning of a road fund for managing maintenance should always be considered.

6. Large gains in efficiency are possible from institutional reforms that strengthen the capacities of local, regional and national governments to manage the framework for transport more efficiently and enhance the capacities of transport organizations to provide customer-responsive services.

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7.2 Purpose of the Road Sector Policy Road Map

7. Purpose and Objectives of the Philippine Road Sector Policy Road Map (PRSPRM) is to give a general overview of potential policy directions from issues, trends, and developments in the current state of the Philippine road sector development. It will give insights into the prevailing investment priorities of the Government of the Philippines (GoP) and the Asian Development Bank (ADB), trends and issues being faced, and identify areas where investments can be looked into, financial windows of assistance and opportunities for further growth and cooperation explored in greater detail. It can also be an aid in identifying potential areas where the allocation of technical assistance resources for the preparation of new investment projects, grant funding, more in-depth policy review, researches and pilot projects can be made. The PRPSPRM can also strengthen and harmonize activities and the linkages among the various stakeholders in the sector.

8. The PRSPRM has 9 sections: (1) Key issues in the sector: (2) Government’s Sector Policy and Planning Framework, (3) Government’s institutional arrangements and capacity in the sector, (4) ADB sector experience, (5) role of other development partners in the sector, (6) Intended sector outcomes and key outputs supported by the ADB, (7) Links to CPS Outcomes and other sector themes, (8) Indicative areas for interventions, and (9) Monitoring mechanisms.

7.3 Philippine Road Sector Development Status

9. Currently, road transport continues to be the dominant mode of transportation in the Philippines, accounting for about 22 billion ton-kilometers per year or 53 percent of the total domestic freight traffic, and around 83 billion passenger-kilometers per year or 8% of the total domestic passenger traffic. The road network carries in general all intra-island traffic.

10. The Philippines has a total road network of 205,497 km as of 2007 broken down as follows: Table 7.3.1: PHILIPPINE HIGHWAY NETWORK As of December 2007 Classification Length % Paved % Unpaved National 29,369 km 70 30 Arterial 15,559 km 79 21 Secondary 13,810 km 60 40 Provincial 31,284 km 25 75 City* 7,052 km 77 23 Municipal* 15,803 km 34 66 Barangay* 121,989 km 7 93 TOTAL 205,497 km 23 77 *Note: As of 2002 Source: DPWH

11. The Philippine Road Network currently comprised of the following:

a. North-South Backbone (5,234 km) - The main trunkline from northernmost Luzon down to Southern Mindanao interconnecting major islands.

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b. East-West Laterals (2,963 km) - Roads traversing backbone and across the islands (about 100 km apart). c. Other Roads (7,379 km) – Roads that provide direct access to important centers and areas vital for regional development and emergencies. d. National Secondary Roads (13,971 km) - Other roads which complement national arterial roads to provide access to other main population and production centers.

12. While the average road density for the Philippine national roads appear high at 0.67 km of road per square km of total land area (Table 7.3.2), many areas have road densities much lower than the Philippine average. These regions with low road densities and/or paved road ratios generally are also the less economically developed regions or regions that have markedly undeveloped provinces (Table 7.3.3). Overall paved ratio is low at a level of 0.23 which is attributable to the large inventory of barangay or farm-to-market/village roads.

Table 7.3.2: Total Length and Paved Road Ratios, by Classification As of 2007

Source: DPWH

Table 7.3.3: Surface Type and Paved Ratio by Region (National Road), As of 2007 NATIONAL ROADS TOTAL REGION CONCRETE ASPHALT GRAVEL EARTH LENGTH km % km % km % km % CAR 554 30 105 5.7 1174 63.6 13 1 1,846 NCR 713 69 318 31 0 0 0 0 1,032 REGION I 881 55 568 35 139 9 21 1 1,610 REGION II 908 51 319 18 537 30 1 0 1,765 REGION III 987 49 785 39 260 13 0 0 2,032 REGION IV-A 948 39 1115 46 341 14 0 0 2,404 REGION IV-B 685 31323151176541 0 2,185 REGION V 905 41 682 31 610 28 0 0 2,197 REGION VI 1,217 42 960 33 700 24 4 0 2,880 REGION VII 892 44 853 42 272 13 19 1 2,037 REGION VIII 1,637 69 292 12 427 18 16 1 2,373 REGION IX 544 45 292 24 382 31 0 0 1,218 REGION X 729 43 440 26 513 30 0 0 1,682 REGION XI 662 46 247 17 537 37 0 0 1,447 REGION XII 558 43 256 20 490 38 0 0 1,304 REGION XIII 558 41 72 5 729 54 0 0 1,358 PHILIPPINES 13,378 738 7,629 400 8,287 457 76 4 29,370 Source: DPWH

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13. Table 7.3.4 presents the trend in growth of road length by road classification. In general, from 1982 to 2007, the length of national roads had been growing at an average of 0.63% per annum, provincial roads at 0.77% per annum, city roads at 3.52% per annum, municipal roads at 1.62% per annum, and barangay roads at 1.62% per annum. Overall, road length had grown at an average rate of 1.25% per annum. Caution though on the quality of available data as periodic adjustments and reclassification of data were noted.

Table 7.3.4 Growth of Roads In the Philippines (In km) CY 1982-2007 NATIONAL PROVINCIAL CITY MUNICIPAL BARANGAY YEAR TOTAL ROAD * ROAD ROAD ROAD ROAD 1982 23,783 29,544 3,741 12,142 85,264 154,474 1983 24,137 29,725 3,718 12,240 85,847 155,667 1984 25,098 28,849 3,897 12,432 86,868 157,144 1985 26,259 28,425 3,987 12,825 90,214 161,710 1986 26,238 28,335 3,987 12,896 90,880 162,336 1987 26,082 28,964 3,955 12,875 85,940 157,816 1988 26,070 29,173 3,982 12,626 85,595 157,446 1989 26,095 29,144 3,949 12,707 87,149 159,044 1990 26,272 29,156 3,949 12,819 88,363 160,559 1991 26,422 29,156 3,949 12,819 88,363 160,709 1992 26,554 29,156 3,949 12,819 88,364 160,842 1993 26,594 29,156 3,949 12,819 88,364 160,882 1994 26,154 29,156 3,949 12,819 88,364 160,442 1995 26,720 29,117 3,949 12,819 88,364 160,969 1996 27,369 28,762 3,949 12,819 88,364 161,263 1997 27,650 28,530 3,949 12,819 88,364 161,312 1998 27,895 28,503 5,767 15,816 121,702 199,683 1999 29,247 27,224 5,767 15,816 121,702 199,756 2000 29,734 27,136 7,052 15,804 121,989 201,715 2001 29,878 27,076 7,052 15,804 121,989 201,799 2002 30,030 26,926 7,052 15,804 121,989 201,801 2003 28,649 26,926 7,052 15,804 121,989 200,420 2004 30,030 26,926 7,052 15,804 121,989 201,801 2005 28,952 26,926 7,052 15,804 121,989 200,723 2006 29,098 26,926 7,052 15,804 121,989 200,869 2007 29,370 31,285 7,052 15,804 121,989 205,500 * - Includes 120 km Expressways in Luzon (South Luzon - 42 km; North Luzon - 78 km) operated by the Philippine National Construction Corporation (PNCC) Note: The decrease of the length of road from 1985 to 1986 was due to the correction of some national and barangay road sections nationwide with overlapping station and double listed road section and non-inclusion of the physical length in lineal meters of bridges; No updated provincial, municipal and barangay (farm to market and/or village road) data for 2003-2006 and only 2007 provincial road data was updated. Source: DPWH

14. As of 2007 the Philippines has a total of 7,743 national bridges with an aggregate length of 314,453 l.m., of which 6,324 or 81.67% are concrete (257,836 l.m.), 56 or 7.23% are steel (40.57 l.m.), 667 or 8.61% are bailey (13,618 l.m.), and 192 or 2.48% are timber structures (2.42 l.m.) (Table 7.3.5).

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Table 7.3.5 Summary of Existing National Bridges (Length and Number) By Type As of 2007 TYPE OF BRIDGE Total REGION Concrete Steel Bailey Timber Length (in lm) No. Length (in lm) No. Length (in lm) No. Length (in lm) No. Length (in lm) No. Cordillera Administrative Region 5,882 187 3,015 33 1,756 83 17 2 10,669 305 National Capital Region 18,746 264 567 5 19,313 269 Region I 24,139 441 5,611 58 327 19 30,077 518 Region II 18,007 381 4,328 23 303 20 55 5 22,693 429 Region III 25,229 569 3,519 37 21 1 102 7 28,871 614 Region IV-A 15,206 562 958 27 529 34 14 2 16,707 625 Region IV-B 15,027 408 1,578 45 3,358 128 581 46 20,544 627 Region V 20,033 519 1,389 34 730 50 22,152 603 Region VI 22,922 573 3,886 68 1,881 69 88 3 28,777 713 Region VII 15,375 460 2,051 25 552 36 67 3 18,045 524 Region VIII 25,646 717 5,474 58 1,151 72 759 63 33,030 910 Region IX 9,279 224 1,338 26 51 4 20 1 10,688 255 Region X 11,798 303 2,570 49 299 13 6 1 14,673 366 Region XI 10,837 224 966 14 402 14 12,205 252 Region XII 9,402 239 829 19 454 24 10,685 282 Region XIII 10,311 253 2,491 39 1,804 100 720 59 15,325 451 Nationwide 257,836 6,324 40,570 560 13,618 667 2,429 192 314,453 7,743 Source: Road and Bridge Information Application (RBIA), DPWH Source: DPWH

15. In the Philippines, motor vehicles are classified in four groups: cars, utility, trailers, trucks and buses and motor tricycles. Table 7.3.6 presents data on 2007 motor vehicle registration obtained from the Land Transportation Office, It will be noted that registration of all types of vehicles have more or less steadily increased in the past 23 years. The average growth is 3.5% per annum for cars, 6.60% for utility vehicles, 5.20% for trailers, trucks and buses, and 11.20% for motor tricycles. In 2007, total registered vehicles was at 5,530,052 consisting of 751,092 cars or 13.58% of the total, 1,795,610 utility vehicles or 32.47%, 335,776 trailer trucks and buses or 6.07%, and 2,647,574 motor tricycles or 47.80% of the total.

Table 7.3.6: Philippine Registered Motor Vehicles 2007 REGISTEREDAs of MOTOR 2007 VEHICLES UTILITY TRAILERS MOTOR TRUCK/ YEAR CAR VEHICLES BUSES TRICYCLES TOTAL 1985 347,949 420,566 108,667 242,990 1,120,172 1986 359,688 431,528 108,991 288,625 1,188,832 1987 358,765 456,930 111,490 249,568 1,176,753 1988 376,646 490,182 122,853 280,902 1,270,583 1989 412,998 553,355 134,136 330,975 1,431,464 1990 454,554 633,944 149,318 382,426 1,620,242 1991 456,606 691,538 157,095 410,127 1,715,366 1992 483,622 770,017 166,986 458,938 1,879,563 1993 531,240 858,771 187,449 547,655 2,125,115 1994 572,766 912,675 231,736 624,292 2,341,469 1995 626,571 998,331 247,393 708,059 2,580,354 1996 702,578 1,101,077 279,233 821,599 2,904,487 1997 743,299 1,191,392 306,814 952,044 3,193,549 1998 749,204 1,244,019 291,000 1,032,594 3,316,817 1999 773,835 1,310,865 304,366 1,144,666 3,533,732 2000 767,948 1,388,867 308,867 1,236,241 3,701,173 2001 729,350 1,489,266 308,983 1,338,263 3,865,862 2002 749,553 1,652,314 315,423 1,470,383 4,187,673 2003 742,665 1,686,317 310,711 1,552,579 4,292,272 2004 798,160 1,788,971 326,101 1,847,361 4,760,593 2005 788,408 1,791,794 321,814 2,157,737 5,059,753 2006 792,373 1,790,895 338,943 2,409,363 5,331,574 2007 751,092 1,795,610 335,776 2,647,574 5,530,052 Source:Land Transportation Office (LTO)

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16. In terms of the total number of registered motor vehicles by region for the year 2004 to 2007 (Table 7.3.7), the highest share of motor vehicles was noted in Luzon, particularly in the National Capital Region (NCR), and the lowest share was noted in Mindanao, particularly in Region XIII. Of the total member of registered motor vehicles. In 2007, 28% was recorded in the NCR and only 1.0% in Region XIII.

17. In terms the type of motor vehicles by type of fuel used by motor vehicles (Table 7.3.8), it will be noted that there are more vehicles using gas than diesel and that buses and trucks predominantly use diesel.

Table 7.3.7: 2004-2007 Registered Motor Vehicles by Region

REGISTERED MOTOR VEHICLES BY REGION MOTOR VEHICLE REGISTERD REGION 2004 2005 2006 2007 LUZON 3,301,208 3,581,797 3,691,634 3,857,901 NCR 1,505,409 1,580,753 1,555,174 1,592,036 CAR 52,300 63,921 63,505 64,664 I 243,470 268,697 288,066 310,783 II 167,180 178,501 179,545 192,491 III 579,204 628,086 690,411 733,360 IV 614,402 710,084 753,491 795,627 V 139,243 151,755 161,442 168,940 VISAYAS 834,250 782,717 869,130 861,650 VI 261,541 276,458 300,353 305,498 VII 470,222 400,384 457,816 436,156 VIII 102,487 105,875 110,961 119,996 MINDANAO 625,047 695,239 770,810 810,501 IX 133,633 148,698 147,036 168,635 X 126,176 137,791 154,698 158,416 XI 175,694 189,621 205,217 218,951 XII 140,975 164,794 205,618 205,211 XIII 48,569 54,335 58,241 59,288 TOTAL 4,760,505 5,059,753 5,331,574 5,530,052 Source:Land Transportation Office (LTO)

Table 7.3.8 1985-2007 Motor Vehicle by type of Fuel Used

MOTOR VEHICLES BY TYPE OF FUEL USED CAR UTILITY VEHICLE BUSES TRUCKS MOTOR/TRICYCLE TOTAL YEAR GAS DIESEL GAS DIESEL GAS DIESEL GAS DIESEL GAS DIESEL GAS DIESEL 1985 335,267 12,662 206,341 199,489 829 13,907 14,934 79,004 238,997 5,993 796,368 311,055 1986 344,197 12,491 211,888 204,666 1,958 13,016 13,858 81,362 280,448 8,179 852,349 319,714 1987 346,593 12,191 226,567 215,190 1,478 13,695 11,719 86,033 243,513 6,055 829,870 333,164 1988 364,355 12,291 248,612 226,487 797 14,288 14,899 93,128 277,201 3,701 905,864 349,895 1989 399,958 14,525 280,349 225,458 750 15,842 14,211 101,760 325,250 5,752 1,020,518 393,310 1990 437,079 17,475 333,598 292,005 1,050 17,291 17,445 113,537 373,812 8,814 1,162,984 449,122 1991 436,775 19,831 338,177 332,671 885 19,805 15,692 122,446 405,753 4,374 1,197,282 499,127 1992 457,397 25,225 360,032 389,458 1,116 24,711 13,592 133,107 454,636 4,302 1,286,773 576,803 1993 500,908 30,332 390,550 443,618 685 23,938 13,930 151,650 542,581 5,074 1,448,654 654,612 1994 540,442 32,324 415,877 496,798 671 26,924 14,814 189,327 616,819 7,473 1,588,623 752,846 1995 597,886 28,885 446,636 551,695 616 27,574 10,188 210,013 708,059 - 1,763,385 818,167 1996 673,678 28,900 487,134 613,943 613 28,717 11,554 208,834 821,599 - 1,994,578 880,349 1997 712,990 30,309 514,895 676,497 611 31,339 10,398 232,444 952,044 - 2,190,938 970,589 1998 719,649 29,555 527,840 716,179 763 31,043 6,851 224,491 1,032,594 - 2,287,697 1,001,268 1999 745,414 28,421 548,446 762,419 1,419 31,774 8,305 235,138 1,144,666 - 2,448,250 1,057,752 2000 738,654 29,294 577,545 810,572 1,257 32,629 8,320 240,049 1,236,241 - 2,562,017 1,112,544 2001 711,665 17,685 627,269 861,997 1,208 30,478 13,414 240,182 1,338,263 - 2,691,819 1,150,342 2002 731,392 18,161 676,746 975,568 821 33,094 12,337 245,437 1,470,383 - 2,891,679 1,272,260 2003 724,038 18,627 690,671 995,646 1,249 30,100 11,404 244,105 1,552,571 8 2,979,933 1,288,486 2004 768,442 29,718 743,007 1,045,964 3,846 31,157 10,199 257,778 1,847,361 - 3,372,855 1,364,617 2005 756,290 32,118 707,858 1,083,936 1,008 30,017 9,211 257,704 2,157,737 - 3,632,056 1,403,775 2006 756,802 35,571 696,919 1,093,976 2,466 26,678 13,928 271,973 2,409,363 - 3,879,478 1,428,198 2007 724,397 26,695 696,037 1,099,573 3,126 27,033 11,875 269,386 2,647,574 - 4,083,009 1,422,687 Source: Land Transportation Office (LTO) KEI in association with SKI and DCCD 7-6 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

18. Despite major investments in the roads sector in the 1970s to 2008, with technical and financial assistance from development institutions such as the: International Bank for Reconstruction and Development (IBRD), Japan Bank for International Cooperation (JBIC), Japan International Cooperation Agency (JICA), and the Asian Development Bank (ADB), and other donor country assistance programs; the demand for road development, improvement and management remains high.

19. The Philippine road network suffers from the following principal deficiencies:

a. Only 79% of the total national arterial road network is paved, 48 percent of its sections need to be rehabilitated, and 21 percent of the network is still unpaved.

b. For the national secondary roads about 60% is paved, 49% of the existing paved sections need to be rehabilitated, while there are still 40% which are still unpaved.

c. About 23% of the total length of all roads is paved and 77 percent is still unpaved.

d. Some national roads, provincial and “barangay” (farm-to-market and/or farm-to-village) roads require upgrading because of initially low standards, deficient and/or substandard construction, inadequate maintenance and/or damage from overloaded vehicles.

e. Areas where roads are most sparse and unimproved are also the most economically undeveloped.

f. Missing or weak bridges lessen the usefulness of many roads. About 26 percent of the existing structures must be rehabilitated, replaced and retrofitted.

7.4 Key Issues in the Sector

7.4.1 Underinvestment in the Road Sector

20. Between 199and 2005, there has been a decline in the total public sector infrastructure expenditures as a percentage of GDP in the Philippines resulting to a significant underinvestment by the national government, government owned and controlled companies, and local government units (LGUs) fell from 3.3% of GDP in 199to 1.8% in 2005, then rose to 2.3 percent in 2006 and to 2.6% in 2007. This is less than the 5% benchmark estimated by the World Bank that will enable middle income countries in East Asia to meet their infrastructure development requirements and growth aspirations.

KEI in association with SKI and DCCD 7-7 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.4.1:1 Philippine Infrastructure Expenditures, 1999-2007

Source: World Bank, Philippine Expenditure Review Transport Infrastructure, 2007

21. Between 199and 2005, DPWH expenditures for infrastructure dropped by half. From 1.57% of GDP in 1996 these peaked at 1.70% in 1997. During the Asian financial crisis in 1997-98, these fell sharply to 1.27% in 1998. The budget for DPWH has since continued to slide to its 2005 level of 0.71% of GDP. With the increased priority given by the government to infrastructure, however, the DPWH budget rose to 0.76% in 2006 and 0.98% in 2007, still below the 1.70% peak in 1997.

22. Maintenance was affected by the low expenditures on infrastructure. 23% of the 20,505 km were in poor condition in need of rehabilitation in 2006. According to the World Bank study “Better Roads Philippines”, only about 26% of the estimated requirements to adequately maintain the national road network were funded in 1999. Total spending has not significantly increased since 2000. The Motor Vehicle Users Charge (MVUC), meant to raise revenue for road maintenance has produced mixed results

23. Funding shortages are a primary cause of the problems of the road network. The available MVUC special funds of about P 4 to 6 Billion in the last four years cover only 21-32% of the maintenance needed and is contributing to the progressive deterioration of roads. The low level of expenditures is attributable to the low contribution by the Government, road users, and the private sector in general; low relative priority accorded to the sector by the country’s leadership.

24. For routine maintenance, a disproportionate share has been used to fund employment-generating roadside maintenance programs – 25% in 2003, 33% in 2004, 35% in 2005, and 40% in 2006. This is typically earmarked to sweeping, beautification, planting, and other labor-intensive activities with up to 10 workers per km. The more important task of carriageway maintenance suffers as a result.

25. The problem of politicization of project-resource allocation also exists with about 60% of allocated MVUC funds had been allocated based on political and equity considerations. Congressional allocation comprises about 10-20% of the DPWH budget and is allotted to small community projects like barangay (farm- to-village) roads are not aligned with the DPWH mandate and have limited national impact.

KEI in association with SKI and DCCD 7-8 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

7.4.2 Lack of Government Policy Coordination

26. There is a need for coordination between the sector line departments and oversight agencies on the development of an overall sector master plan to province and integrating framework for infrastructure, There is also a need for an updated inter-modal transport plan that would harmonize and rationalize road, rail, sea and air intermodal linkages in transport planning and operations. Planning-budget linkages and disconnects or mismatches were noted among said agencies which in the end run are resulting to inefficient allocation of resources (i.e. investments in lower priority or non-viable projects of vested interest parties), poor capacity (e.g. timely Government cash support and budget cover), conflicts among agencies, and poor governance.

7.4.3 Faster achievement of the Millennium Development Goals

27. There is the need to accelerate attainment of the MDGs by enhancing public sector efficiency in addition to MDG-related issues addressed through rural and urban operations such as rural incomes, access to water and sanitation, and environment improvements. For the Philippines, some Millennium Development Goals (MDG) was noted to be lagging. Trends show that national progress for measures relating to child mortality, combating disease, and environmental sustainability; while advances in attaining universal primary education, improving maternal health, and increasing access to reproductive health services require a refocusing of development efforts. Sub- national progress has also been uneven, and in cases deteriorated, as in the case of Mindanao. Other social sector trends limit progress in poverty reduction – i.e. annual population growth is 2.1%, higher than in many other countries in the regions well as a coherent population control policy was noted to be not yet in place. High population growth undermines social service delivery improvements, and contributes to declining MDG performance in, for example, education. Generally, poverty incidence declined from 33% of the population in

2000 to 30% in 2003, but increased to 33% in 2006. Household income surveys show a 4.0% decline in average family income between 2003 and 200, adjusted for inflation using 2003 prices, despite real per capita increases in GDP. Income inequality, as measured by the Gini-coefficient, changed little from 0.4605 in 2003 to 0.4580 in 2006 which is high relative to Asian neighbors. Poverty in the Philippines is largely found in rural areas and is linked to low productivity, agriculture-based livelihoods. Poverty rates are also high in the conflict-affected area of the Autonomous Region of Muslim Mindanao (ARMM).

28. Continuing support for local urban and rural development and environmental management issues also contributed to MDGs. Strategies and programs geared at enhancing institutionalizing the 1991 Local Government Code (LGC) notably to enhance decentralized service delivery in the regions, provinces, municipalities, barangay (villages), and communities, especially for roads related urban and rural development. National and local government roles need to be fully rationalized. This compounds the lack of clarity in resource control, accountability and responsibility for administration arrangements, budget allocation, and functional assignments. Urban and rural development was seen as having the potential to address poverty reduction,

KEI in association with SKI and DCCD 7-9 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

social inclusion and service access, and environmental problems. While support was relevant, multiple institutional layers; bureaucratic inefficiencies; operational design issues, including land acquisition; and failure to implement policy provisions relating to environmental management limited expansion of the program. Tables 7.4.2 and 7.4.3, presents development of the country’s progress relative to MDGs.

7.4.4 Weak Investment Climate

29. Low spending on infrastructure and human resources undermined the Government's efforts to attract private sector investment and increase competitiveness. Added to this was the deterioration in governance and competitiveness indicators, particularly macroeconomic stability, the control of corruption and infrastructure, which lowered investor confidence. This will underscore Government’s role in prescribing appropriate policy and regulatory frameworks, providing the necessary public infrastructure, and supporting broader governance efforts such as the reforms in the judiciary and anti- corruption prosecution, enhancing the rule of law, and supporting high profile efforts against tax evasion. Growth is being stifled by the weak investment climate, distortions in industrial competitiveness, and governance problems in the administration and regulatory frameworks.

30. For the road sector the provision of the necessary economic support requirements, adherence to new planning systems (e.g. MYPS, HDM-4, PMS, BMS), improvement of systems (planning and selection of projects, procurement, design, construction supervision, quality assurance, maintenance and sustainability, financial management and internal control, etc.) with efficiency and value for money in mind will enhance investor confidence and investments in the country.

7.4.5 Improving Economic Outlook for the Country

31. In the 2002-2007, the Philippines achieved 6 consecutive years of annual gross domestic product (GDP) growth averaging 5.6% per annum over the period. This has been driven largely by an expanded service sector growth was accompanied by low to moderate inflation, low real interest rates since 2001, and unprecedented current account surpluses that boosted the country's balance of payment position. Furthermore, Government was able to reduce the consolidated fiscal deficit through a combination of new revenue measures, improved tax administration and actions to address inefficiencies of government corporations, especially in the power sector. Annex 2 presents a summary update on the latest economic and social indicators for the country.

32. In early 2008, however, risks began to emerge to the sustainability of this growth rate arising from a slowdown in the United States economy and other external factors such as high commodity prices (e.g. oil).

33. The Philippines has crossed the threshold of per capita incomes (beyond ADF norms of $925 in 1997 prices) but exhibits high poverty incidence. In terms of unemployment and poverty, Poverty incidence declined from 33.0% of the population in 2000 to 30.0% in 2003, but then increased again to 32.9% in

KEI in association with SKI and DCCD 7-10 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

2006 despite robust growth performance. Unsatisfactory job creation is reflected in a labor underutilization rate.

7.4.6 Improving Private Sector Participation and Enabling Environment for Participation

34. Operation and construction of infrastructure facilities, are increasingly being competitively contracted to the private sector, with often-dramatic effects on increasing productivity and efficiency. During the 1990s the transport sector shared in the rising interest in private financing of infrastructure investment in developing countries. The transport sector attracted more than $100 billion of private financing in the 1990s, about twice official aid flows to the sector in the same period. After the Asian financial crisis, new private investment in infrastructure in East Asia and South Asia dropped to about 25% of earlier levels.

35. Notable successes in private finance through cooperative joint ventures for construction of toll roads, post-construction securitization essentially all in the form of equity contributions, and entry into international bond markets for road financing. About 80% of private investment in toll roads and all private mass rail transport investment were in cities (urban context). Private involvement in long term maintenance contracts is a relatively new area to be expanded in the near future.

36. ADB has demonstrated readiness to be involved in public-private partnerships. However, concerns over handling of right-of-way issues requiring resettlement, lack of competitiveness with other bilateral development partners, and perceived high transaction costs of ADS-administered projects have limited ADB's contribution to large-scale transport and water infrastructure. Government planning and regulatory framework, including the legal framework thereof, negotiation and award, monitoring and risk management aspects need to be looked into.

KEI in association with SKI and DCCD 7-11 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.4.1.2 (1/2)

KEI in association with SKI and DCCD 7-12 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.4.1.2 (2/2)

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Table 7.4.1.3 (1/3)

KEI in association with SKI and DCCD 7-14 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.4.1.3 (2/3)

KEI in association with SKI and DCCD 7-15 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.4.1.3 (3/3)

KEI in association with SKI and DCCD 7-16 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

7.5 Sector Policy and Planning Framework 7.5.1 Philippine Development Needs

37. Philippine development plans take into consideration the archipelagic geography and nature of its economy. The major islands of the country need to be interconnected by good transport and communications networks that will open up new economic opportunities, reduce transportation and transaction costs of business, and increase access to social services. This interconnection seeks to develop, strengthen and sustain the socio-economic, cultural and political linkages between and among its regions. Eventually, this connection is envisaged to decentralize progress and bring equitable development to the countryside.

38. Current long term development plans of the Philippine Government is pursuing policies that address the root causes of declining competitiveness. Crucial to these is the reduction of transport and distribution costs through better transport (e.g. completion of the nautical highway system) and digital infrastructure and logistics. Furthermore, policy reforms that will benefit all economic sectors is being pursued such as vigorous support is given to micro, small and medium enterprises (MSMEs) and agribusiness to decentralize development and address the problem of high unemployment and rural poverty. The poor quality of infrastructure is often cited as one of the main problems affecting the Philippines’ global competitiveness.

39. The Philippine Government recognizes the fact that it lives in a global economy, closely interconnected by trade and investments. Thus, government is effecting and pursuing fundamental reforms and changes to bring in investment that will create jobs and opportunities and eventually reduce poverty.

40. Given the current fiscal constraints, investment priority is presently being focused in areas where the Philippines has natural and human resource advantage such as: IT-related industries, contact centers, tourism, fashion garment, jewelry, medical services/healthcare/wellness, electronics, automotive, agri-business/marine-culture, and shipbuilding, etc.

41. Under the current administration of President Gloria Macapagal Arroyo, a 10-point legacy agenda is being pursued that will comprise the major policies and programs to win the war against poverty. This legacy is incorporated in the 2005-2010 Medium Term Development Plan which calls for more focused action strategies that include: the promotion of livelihood, strengthening of education, attainment of fiscal stability, decentralized development, and arriving at sustained national harmony.

42. As part of the Philippine Government’s second phase of economic reforms under which it is investing in better infrastructure and services to create jobs and improve living standards, the Arroyo Administration had restructured the Philippine economy into “super regions to bolster the 5 distinct sub-economic regions of the country as follows:

KEI in association with SKI and DCCD 7-17 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

. Northern Luzon Agribusiness Quadrangle – Agribusiness . Luzon Urban Beltway – Globally competitive industrial and service center . Central Philippines – Tourism . Agribusiness Mindanao – Agribusiness . Cyber Corridor – Information and communication technology and knowledge economy 43. The establishments of these sub-regions are envisaged to: (i) create opportunities across the country, serve as catalyst for development and serve as prime advocate of the strategic theme in area, and (ii) focus implementation of priority programs and projects identified in 2006 State of the Nation Address (SONA) of President.

44. An efficient transport network is envisaged to reshape the country’s physical and economic configuration. From fragmented and island economies separated by mountains and seas, the country envisions to develop into a unified, well-integrated economy where people and goods can move and trade swiftly and efficiently, locally and internationally. The transport and logistics system is further envisaged to become adequate and efficient to, among others: (a) help bring down the cost of food for workers especially in the country’s industrial heartland and make food plentiful at reasonable prices; (b) assist in making the country’s wages internationally and globally competitive; (c) serve priority production areas and population centers; and (d) provide access to major tourism destinations and conflict-affected areas.

7.5.2 Road Administration

45. Philippine roads are currently administered by the following agencies:

Table 7.5.2.1 Administration of Roads by Classification Road Classification Road Administrators National Roads National Government - DPWH Provincial Roads LGUs – Provincial Governments City/Municipal/ LGUs – City and Municipal Barangay Roads Governments Expressways and Toll Operations Concessionaires, Phil. National Const. Corp. (PNCC), etc.

7.5.3 DPWH Mandate

46. Pursuant to Executive Order No. 124, series of 1987, the DPWH is mandated to undertake: (a) the planning of infrastructure, such as roads and bridges, flood control, water resources projects and other public works, and (b) the design, construction and maintenance of national roads and bridges, and major flood control systems. These activities are undertaken in support of national development objectives such as those envisioned under the 2005- 2010 Medium Term Development Plan (MTDP).

KEI in association with SKI and DCCD 7-18 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

7.5.4 DPWH Vision, Mission, and Goals

47. In 2004 and currently for 2008-2009 (on-going), the DPWH has undertaken and is updating Department strategic planning process. It has crafted its mission, vision, and goals as follows:

Vision:

48. DPWH is a model agency in the infrastructure development of the country. It is a strong partner in strengthening the national economy and improving the life of every Filipino.

Mission:

49. To provide and manage quality infrastructure facilities and services responsive to the needs of the Filipino people in the pursuit of national development objectives.

Goals:

50. The following 3 goals are currently being pursued in the 2005-2010 and 2011-2016 planning horizons:

(1) Improve the public’s access to activities, goods and services through the preservation, improvement, and expansion of the national road network in a cost-effective and environment-friendly manner, and enhance its operation, safety, efficiency and inter-modal connections;

(2) Protect and enhance the communities and environment thru flood control and mitigation measures and the provision of other facilities; and

(3) Improve the public’s satisfaction of DPWH through organizational reforms and culture change, living up to the values statement and effective delivery of quality goods and services.

7.5.5 Road Sector Strategies

51. For the Philippine road sector, the main goal of the DPWH is to improve the public’s access to activities, goods and services through the preservation, improvement, and expansion of the national road network in a cost-effective and environment-friendly manner, and enhance its operation, safety, efficiency and international connections. In pursuit of this goal, the following policies and strategies have been formulated/adopted:

Table 7.5.5.1: DPWH Policies and Strategies

Strategies Objectives 1. Formulate long-range physical Prepare by Region and by District, master master plans by region, to relate plans for 2025, and medium term programs national roads with local roads, other for 2005-2010, covering national roads in transport modes, and other relation to other infrastructure, with the infrastructure of national and local concurrence of Regional Development governments, considering land use Councils (RDCs). plans and needs of agriculture,

KEI in association with SKI and DCCD 7-19 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Strategies Objectives tourism and industries; prepare corresponding medium-term (6-10 years) regional development programs for national roads. 2. Under the long and medium term plans and programs: a. Pave all national roads with Increase ratio of paved length to total length concrete or asphalt of national roads from 70% in 2004 to 95% in 2010, with International Roughness Index (IRI) of less than 4. b. Replace/construct national bridges Increase ratio of permanent to total national with permanent structures bridges, from 93% in 2004 to 100% in throughout the country 2010. c. Prioritize roads to support the 10- point agenda of the Government:

c.1 Complete the nautical highways Complete paving and improve remaining to transport the produce of unimproved road sections of the Western, Mindanao to Luzon and Visayas Central, and Eastern Nautical Highways. Rehabilitated or replace weak bridges along the routes.

c.2 Decongest Metro Manila Complete expressway projects and undertake projects to speed traffic out of Metro Manila c.3 Address critical transport bottlenecks In urban areas, implement widening, traffic management and intersections improvement to ease congestion. In rural areas, pave () and improve arterial road links between regional centers and production areas.

c.4 Improve access to major tourist Pave and improve roads leading to tourist destinations complexes at Cebu-Bohol-Camigiun, Palawan, Cordillera, Clark-Subic and Davao.

Pave (and improve roads in ARMM, Bondoc c.5 Improve roads to support peace Peninsula (Quezon), Cordillera, Bicol and and development in Muslim Samar. Mindanao and other conflict/ impoverished areas

61. Institutionalize Information Implement Road Network Planning and Technology (IT)-aided planning Multi-Year Programming System (RNPMYPS), processes developed under the Road Pavement Management System (PMS), Information and Management Bridge Management System (BMS), Routine Support System (RIMSS). Maintenance Management System (RMMS), Road Safety Program, and Road and Bridge Information Applications (RBIA) for all national roads.

62. Allocate infrastructure funds according to the following order priority:

a. Preservation and maintenance To fully meet computed needs, with (especially national roads). International Roughness Index (IRI) of less than 4, by increasing allocation for maintenance of national roads from P4.8B to P13.5B by 2010.

KEI in association with SKI and DCCD 7-20 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Strategies Objectives b. Rehabilitation To meet rehabilitation needs (based on PMS/BMS) by providing adequate funding.

To meet improvement needs and traffic c. Improvement demand,

To ease traffic congestion, shorten travel d. New construction time and provide alternative routes.

7.5.6 Key Measurable Targets

52. To attain the development goals in line with the policies and strategies set above, the medium-term program for transportation infrastructure aims to undertake the priority sub-sector activities. The said activities will focus on the following targets for the road sector:

a. National arterial roads (15,559 km) will be 95% paved by 2010, compared to 83% in 2005. This will require the paving of 2,645 km and the rehabilitation/widening/upgrading/construction of 2,188 km.

b. National secondary roads (13,810 km) will be 65% paved by 2010, compared to the existing 52% in 2005. This will entail the paving of 1,145 km and the rehabilitation of 315 km.

c. National bridges (314,453 lineal meters or l.m.) will be 100% permanent by 2010, compared to 93% in 2003. This will involve the reconstruction of 17,280 l.m. of temporary bridges and the improvement of 36,574 l.m. of existing bridges and the construction of 4,062 l.m. of new bridges.

d. The investments for national roads will shift in favor of regions with low road densities and low paved road ratios.

e. The Medium-Term Program will emphasize the upgrading of arterial roads leading to regional growth centers with special attention to Mindanao and other undeveloped regions.

f. Major Roads Supportive of Priority Tourism Areas which includes: Manila, Cebu, Davao, Subic/Clark, Baguio will be improved.

g. Strategic roads will be improved to stabilize the peace and order situation in areas affected by armed conflicts and, therefore, provide for an environment more conducive to economic growth.

7.5.7 DPWH Medium Term Public Investment Plan (2005-2010)

53. Figure 7.5.7.1 presents the DPWH Medium Public Investment Plan for DPWH for 2005-2010 for it to attain its objectives and targets in the roads sector.

KEI in association with SKI and DCCD 7-21 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 7.5.7.1

Source: DPWH

54. Table 7.5.7.1 presents the DPWH Maintenance Investment Program from 1987 to 2007 that shows that about 90% of the DPWH maintenance investments coming from the GAA and Motor Vehicles Users’ Charge is being annually programmed for roads and bridges.

Table 7.5.7.1 DPWH Maintenance Investment Program 1987-2009 (In Million Pesos)

YEAR LENGTH OF SOUR TOTAL ROADS & OTHER % of ROADS (Km) CE OF INVESTMENT BRIDGES CATEGORIES ROADS & FUND P ‘000 P ‘000 P ‘000 BRIDGES 1987 26,222.637 GAA 1873.60 1795.50 78.10 95.83 1988 26,229.676 GAA 2028.70 1819.10 209.60 89.67 1989 26,082.345 GAA 2044.50 1797.80 246.70 87.93 1990 26,304.566 GAA 2424.40 2137.70 286.70 88.17 1991 26,304.817 GAA 2313.90 2136.00 177.90 92.31 1992 * 25,768.068 GAA 1564.10 1385.60 178.50 88.59 1993 * 25,947.582 GAA 1839.40 1661.40 178.00 90.32 1994 * 26,118.536 GAA 1939.40 1767.50 171.90 91.14 1995 * 26,404.155 GAA 3869.00 3237.00 632.00 83.67 1996 * 26,249.172 GAA 4063.30 3399.00 664.30 83.65 1997 * 27,527.180 GAA 4265.30 3586.10 679.20 84.08 1998 * 26,879.802 GAA 4214.06 3696.00 518.06 87.71

KEI in association with SKI and DCCD 7-22 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

YEAR LENGTH OF SOUR TOTAL ROADS & OTHER % of ROADS (Km) CE OF INVESTMENT BRIDGES CATEGORIES ROADS & FUND P ‘000 P ‘000 P ‘000 BRIDGES 1999 * 27,184.026 GAA 4401.66 3786.60 615.06 86.03 2000 * 27,170.980 GAA 4925.75 4093.70 832.05 83.11 2001 * 28,795.970 GAA 4909.70 4093.70 816.00 83.38 2002 * 29,164.880 GAA 4877.30 4093.67 799.63 83.93 2003 * 29,361.050 GAA & 4944.72 4846.71 114.01 98.02 MVUC 2004 * 30,466.350 MVUC 4944.72 4846.71 114.01 98.02 2005 * 29,295.010 MVUC 5839.22 5741.21 114.01 98.32 2006 * 29,625.720 MVUC 6058.6 5960.59 114.01 98.38 2007 * 29,968.080 GAA & 10,740.21 10,219.20 571.01 95.15 MVUC 84,081.54 76,100.79 8,170.75 Note * - Length does not include the Autonomous Region of Muslim Mindanao (ARMM )

Source: DPWH

7.6 Government’s Institutional Arrangements and Capacity in the Sector

55. Table 7.6.1 presents the main laws that govern the road sector in the Philippines. Two main laws govern the Philippine road sector: the Philippine Highway Act (RA 917, 1953) and the Land Transportation and Traffic Code (RA 4136 of 1964) with the former defining the 4 classes of roads (national, provincial, city/municipal and barangay), while the latter sets the rules for road use.

Table 7.6.1 Main Legal and Regulatory Provisions Legal Provision Purpose

Commonwealth Act (146, 1936), and Provides the framework for grant of amendments, the latest being franchises for public land transport for hire, Executive Order 125-A, series of 1987 including rate setting based on application and public hearings. Makes the Land Transportation Franchising and Regulatory Board (LTFRB) the quasi-judicial grantor.

Philippine Highway Act (RA 917, 1953) Provides for an effective highway administration; classifies roads according to administration and funding; Establishes a Highway Fund, and provides for technical and financial assistance to provinces, cities, and municipalities.

Limited Access Highway Act (RA 2000, Sets the framework for the development of 1957) limited access roads under the administration of the Department of Public Works and Highways (DPWH).

Land Transportation and Traffic Code Governs the registration and operation of (RA 4136, 1964) motor vehicles and licensing of owners and drivers, and establishes traffic rules.

KEI in association with SKI and DCCD 7-23 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Legal Provision Purpose

Equivalent Maintenance Kilometer Allocates funds for maintenance of each road, Method (Presidential Decree 17, 1972) based on a maintenance formula – equivalent maintenance kilometers (EMK) which takes into account traffic volumes, road dimensions, surface and bridge type.

Charter of Toll Regulatory Board Regulates entry and pricing of limited access (Presidential Decree 1112, 1977) roads.

Charter of the Department of Public Reorganizes the Department of Public Works Works and Highways (Executive Order and Highways into its current form and 124, series of 1987) functions.

Local Government Code (RA 7160, Delineates powers and responsibilities of 1991) provinces, cities, and municipalities, and “barangays” (villages) in a number of economic sectors; Devolved the maintenance of barangay roads to barangays.

Build-Operate-Transfer Law (RA 6957 Lays down the rules for private sector as amended by RA 7718, 1994) financing and development of infrastructure

Right-of-Way Law (RA 8974, 2000) Sets rules for expediting right-of-way acquisition and stipulates the role of Local Government Units (LGUs) in relocation/re- settlement; Allows for the immediate possession of land being expropriated upon payment of zonal value of the property and pending court decision on the final purchase price.

Motor Vehicle Users’ Charge (RA 8794, Provides for additional resources for 2000) maintenance, safety, and air pollution control, and for establishing a Road Board for the prudent and efficient management and utilization of these resources.

Government Procurement Reform Act, Attempts to: harmonize procurement (RA 9184, 2002) processes across all national agencies and LGUs, simplify pre-qualification and award, enhance transparency, and encourage electronic bidding Source: World Bank Group, Philippines: Meeting Infrastructure Challenges, 2005

56. Table 7.6.2 presents the allocation of responsibilities among government agencies involved in the road sector. The central government has been the dominant provider of roads, through the DPWH, with the LGUs and DILG playing a secondary role. Currently, the DPWH assists the LGUs in road provision when they lack the capacity to undertake these tasks.

KEI in association with SKI and DCCD 7-24 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.6.2 Road Sector Allocation of Responsibilities/Mandates Agency Functions Department of Public Works and  Planning and construction of the national Highways (DPWH) road network  Maintenance of the national road network  Setting technical standards for the construction of all road and bridge classes  Establishing regulations for vehicle weights and axle loads for all road classes  Selective upgrading and construction of local roads for other agencies, such as the Department of Agriculture and Department of Agrarian Reform, and through Congressional Funds  Assisting LGUs in the provision of roads when such services are unavailable or inadequate Road Board  Managing the Special Road Fund (SRF) where collected monies from the Motor Vehicle Users’ Charge (MVUC) are deposited and designated for road maintenance, safety, and air pollution control LGUs: Provinces, Cities, and  Planning and construction of local roads Municipalities (including barangay roads) within their respective jurisdictions  Maintenance of local roads  Economic regulation of tricycles and pedicabs for hire, in terms of market entry and pricing.

LGUs: Barangays  Maintenance of barangay roads

Department of Interior and Local  Coordinating LGU participation in sub- Governments (DILG) national programs  Assisting LGUs in building their capacity for development planning, investment programming, and governance. Land Transportation Franchising and  Regulation of market entry, service Regulatory Board (LTFRB) – Attached standards, and fare setting for all road- to the Department of Transportation based public transport in the country, except tricycles and non-motorized and Communication (DOTC) vehicles. Land Transportation Office – Attached  Enforcement of the provisions of RA 4136 to the DOTC (Land Transportation and Traffic Code)  Registration of motor vehicles, licensing of drivers, and enforcement of LTFRB’s regulations to ensure that public transport vehicles operate within their franchises.

Philippine National Construction  Developer and operator of some toll roads; Corporation – Attached to the franchise holder for the North and South Department of Trade Industry (DTI) Luzon expressways.

KEI in association with SKI and DCCD 7-25 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Agency Functions Toll Regulatory Board – Attached to  Economic regulation of toll roads. the DPWH

Specialized bodies such as the Public  Provision of roads within certain areas, Estates Authority (PEA), Bases usually export processing zones, following Conversion and Development Authority technical standards and guidelines of the DPWH (BCDA), and Subic Bay Metropolitan  Maintenance of roads and other Authority (SBMA) infrastructure within their defined geographic areas National Economic Development  Formulation and coordination of policies in Authority (NEDA) transport (roads, Maritime, air, etc.) in the Medium Term Development Plan (MTDP)  Formulation of medium-term public investment programs that include roads  Approval and oversight of infrastructure projects exceeding PhP300 Million Department of Budget and  Synthesis and review of budget requests of Management (DBM) agencies, submission of consolidated budget to Congress, and execution of approved appropriation  Release of the annual Internal Revenue Allotment (IRA) of LGUs Department of Agriculture (DA) and  Incidental financing of rural roads that are Department of Agrarian Reform (DAR) necessary components of their departments’ agriculture and agrarian- related programs Source: World Bank Group, Philippines: Meeting Infrastructure Challenges, 2005

57. The main oversight government agencies are the NEDA and DBM, Advisory and coordinative services in the formulation of sector policies and programs are provided by the NEDA through its Infrastructure Committee (InfraCom) and formulate the DPWH’s medium term investment program. Monitoring and coordination of public sector investments (both foreign and domestic exceeding PhP 300M) is done by the NEDA through its Investment Coordination Committee (ICC). The ICC requires the endorsement of appropriate regional development council/s before clearing local projects for implementation. The DBM drafts the annual national budget for approval of Congress and sets the budgetary ceilings through its Development Budget Coordinating Committee (DBCC). NEDA and the Department of Finance (DoF) approve all foreign funding and official development assistance (ODA) investment projects.

58. The Philippine Medium Term Plan (MTPDP) is crafted and revised every 6 years to synchronize with the term of the Philippine President. It contains the broad strategies and policies on infrastructure development as well as key objectives. Annex 3 presents the Infrastructure Development Process currently implemented by DPWH.

KEI in association with SKI and DCCD 7-26 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

7.7 Critical Areas for Managing Results, Developing Capacity, and Commitment to Institutional Reform

7.7.1 DPWH Logical Framework for the Government’s Organization Performance Indicator Framework (OPIF)

59. In May 2007, the DPWH issued Department Order No. 30 series of 2007 prescribing the adoption and implementation of the OPIF of the Public Expenditure Management being mainstreamed by the DBM. The OPIF is basically: (a) an approach to expenditure management that directs resources towards results and accounts for performance; (b) enables Government agencies to focus efforts and resources on core functions and on delivering high impact activities at reasonable costs and qualities.

60. The OPIF adopts an analytical approach based on logical framework linking societal and sectoral goals, organization outcomes and major final outputs (MFOs) in assessing agency performance. MFOs refer to goods and services the DPWH is mandated to deliver to external clients through the implementation of agency programs, activities and projects. Agencies are made accountable for the base level of the OPIF logframe or set performance indicators for accomplishment based on pre-determined targets and measures in the budget program.

61. The following goals, outcomes, and MFOs have been prescribed for the national roads sector:

a. Societal Goal: Sustained economic growth through poverty reduction

b. Sectoral Goals: (a) Access to markets and production areas, and physical integration of the country; and (b) safe environment though infrastructure facilities.

c. Organizational Outcome: Safe, fast, economical, and reliable inter-regional and inter-urban mobility of people, goods and services.

d. Major Final Outputs: (a) National roads maintenance services; and (b) National roads construction services.

e. Programs/Activities/Projects:

f. MFO 1 – National Roads Maintenance Services

 General administration and support services for MFO-1  Preventive maintenance, including rehabilitation, of national roads (which include bridges)  Operation support in the maintenance (which includes repair) of national roads, including road maintenance equipment  Maintenance of national roads under the Special Road Support Fund  Installation of road safety devices under the Special Road Safety Fund

KEI in association with SKI and DCCD 7-27 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

62. MFO 2 – National Roads Construction Services

 General administration and support services for MFO-2  Operation and support in the construction (which includes upgrading, improvement and reconstruction) of national roads, including road construction equipment  Locally funded construction of national roads  Foreign-assisted construction of national roads  Preliminary/detailed engineering of national roads

7.7.2 DPWH Updated Strategic Planning Framework

63. In 2008, the DPWH availed of grant assistance from the PAHRDF for the conduct of “Capacity Building for Management Leadership Development on Strategic and Operations Planning” which is currently on-going in its Phase 2 activities for: (1) leadership development training for District Engineers nationwide and (2) development of Operations Plans at District Level. Phase 1 covered leadership training to top level executives; bureau and services directors and assistant directors; major project management offices’ directors and assistant directors, regional offices directors and assistant directors, and Strategic Planning Technical Working Group members as well.

64. The Strategic Plan, when properly carried out will provide a viable means for the DPWH to:

a. Clearly define its purpose; b. Establish realistic goals and objectives consistent with its mission in a defined timeframe within the DPWH’s capacity for implementation; c. Communicate these goals and objectives to the DPWH’s constituents; d. Ensure the most effective use is made of the DPWH’s resources by focusing resources on the key priorities; e. Develop a sense of ownership of the plan; f. Provide a base from which progress can be measured and establish a mechanism for informed change; and g. Bring together everyone’s best and most reasoned efforts in building consensus to where the DPWH is going.

65. Tables 7.7.2.1 and 7.7.2.2, and Figure 7.7.2.1 present some of the major highlights in terms of organizational vision, and updated strategic planning (StratPlan) framework which the DPWH will be pursuing in 2009-2016. It will be noted that StratPlan Framework had adopted and incorporated the Organizational Performance Indicator Framework (OPIF) prescribed by the DBM and expanded these to include Key Result Areas (KRAs) for the following major concerns: (a) Program Delivery, (b) Internal Support, and (c) External Support. Table 7.7.2.3 shows the general key result areas and concerns the DPWH management will be giving priority in their plans and programs in 2009-2016.

KEI in association with SKI and DCCD 7-28 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.7.2.1: DESIRED DPWH VISION 2016

Development oriented

 Globally competitive Philippines  Interconnectivity  Intermodal transport system in the future  Progressive organization based on people and technology  Ultra-modern organization

Social relevance

 People empowered  An organization with moral ascendancy  Bridging the gap between the rich and the poor  DPWH’s symbol is the bayanihan (community oneness)  Environment friendly

Table 7.7.2.2: What DPWH needs to look or be like in 2016?

DPWH will be a model infrastructure agency providing quality roads, bridges and other infrastructure, equipped with modern technology, politically and patronage free with well-structured systems, with the end goal of improving the life of Filipinos

 Lean professional, IT driven DPWH with a road map for providing quality infrastructure and for global competitiveness  DPWH will be a cost effective and efficient organization  DPWH will continuously provide quality infrastructure facilities and services to improve the quality of life of the people  DPWH will be manned by well-paid, highly professional, skilled and high moraled personnel  A corporate environment that is graft-free and responsive to the infrastructure needs of the country

KEI in association with SKI and DCCD 7-29 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 7.7.2.1: DPWH Updated Strategic Planning Framework

KEI in association with SKI and DCCD 7-30 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.7.2.3 : Strategic Planning Parameters Matrix As of February, 2009 (end of Phase 1)

STRATEGIC PRIORITIES KEY RESULT AREA 2009-2016 External Relations  Public Relations  Public Relations Management  Effective Partnership  Alliances & Partnering w/ NGOs & Community Beneficiaries  Partnering w/ LGUs  Partnering w/ NGAs Program Delivery  Planning & Funding  Long & Medium Term Plans  Project Preparation & Pre construction  Annual Infra Program  Post Evaluation  Design  Design Standards  Quality Assurance in Design  Value Engineering  Construction  Contract Management  Construction Management  Quality Assurance in Project Implementation  Project Monitoring & Evaluation  Maintenance  Contract Management  Maintenance Management  Quality Assurance in Project Implementation  Monitoring & Control  Disaster Risk & Response Internal Support  Organization/HRM/  Human Resources Development Integrity Development  Human Resources Management  Integrity Development  Organization/Management  Information  Technology Research & Management Development

 Application Development & Maintenance  Technology Support & Promotion  Financial Management  Budgeting  Fund Control & Utilization Management  Procurement  RA 9184 Management  Procurement Plans  Bidding Document  Invitation to Bid  Eligibility Processing  Bidding Process  Internal Control  Internal Audit  Communication Management  Physical Resources  Equipment Management Management

KEI in association with SKI and DCCD 7-31 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

STRATEGIC PRIORITIES KEY RESULT AREA 2009-2016  Logistics Management  Disaster Risk & Response  Research & Standards  Applied Research Development  Hydrologic Data Collection & Evaluation  Geotechnical Engineering  Construction Methods/Materials Standards  Materials Quality Control& Assurance  Technical Training  Accreditation  Business Improvement and Implementation Projects (BIIPs)* Note: * - BIIPs activities will be serving all other KRAs as internal support, subject to DPWH prioritization and available resources

Final configuration of matrix may change as PAHDRF project activities are still presently on-going

NGO – Non Government Organizations,NGA - National Government Agencies, LGU – Local Government Units, RA9184-Republic Act 9184 – Government Procurement Reform Act

Source: DPWH

7.7.3 DPWH Institutional Reforms

Road Information and Management Support System (RIMSS)

66. One of DPWH’s major long term concerns focus on the continuing improvement of the DPWH organization centered on:

 Emphasis on customer needs (both internal and external).  Focus on reengineering all significant processes.  Identification and prioritization of opportunities for improvement in cost, efficiency, effectiveness, and controls.  Use of technology to “enable” these steps to be taken.

67. The DPWH is re-engineering its information systems and technology infrastructure to reflect the organization's new thinking on strategic focus for infrastructure development. This new focus involves department-wide systems supporting clearly defined and reengineered processes. A major policy concern of the DPWH in its 2005-2010 Medium Development Plan is to “Institutionalize Information Technology (IT)-aided planning processes developed under the RIMSS”.

68. The objective of the RIMSS project is to improve the quality and delivery of DPWH services in the provision and management of the road system. The RIMSS effort is currently to enhance existing DPWH road management processes, as well as to improve existing fragmented information services by

KEI in association with SKI and DCCD 7-32 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

providing a source of readily accessible, relevant and valid information on the road system. It will also improve support for decision-making through the provision of various modern analytical tools, and efficient modern information technology. This will be within a framework coordinating all Department responsibilities relating to road infrastructure system, and its operations at central, regions and districts. This is being planned to be expanded to include other mandated tasks and responsibility areas of the DPWH,

69. The priority RIMSS tools are individually called Business Process Improvement Implementation Projects (BIIPs). Initial implementation of the BIIPs was as a sub-component of the ICB component of the World Bank NRIMP and the ADB 6th Roads Project. Said project was started in July Program until June, 2000. Its current activities are now funded by World Bank under the NRIMP-1 from July 2001 to June 2010 and Asian Development Bank under its 6th Roads Project.

70. The business processes to be improved by the RIMSS cover three core processes for highways and five support processes for all public works operations (Figure 7.7.2.2):

a. Core Processes for Highways: (1) Plan, (2) Build (Design and Construction), and (3) Operate. These processes are associated with DPWH’s highway assets.

b. Support processes for public works: (1) financial management, (2) physical resource management, (3) human resource management, (4) information management, and (5) procurement management. These processes are associated with the overall operation of DPWH in both highway and other infrastructure sectors.

71. Highlights of its DPWH reforms through Information Technology activities cover:

a. IT as an essential tool in avoiding delays, improving overall performance, streamlining operations, strengthening internal controls, and, improving transparency, streamlining operations, strengthening internal controls, and as an effective means of organizational change.

b. Several IT-enabled improvements are already in place in areas such as: i. Project Implementation - Civil works project management training, the Civil Works Registry and the MIS developed Document Tracking System (DoTS); improved planning tools, infrastructure right of way procedures and an upcoming right of way management system; improvements in financial management with the production of contractor billing guidelines; and Executive Information System.

ii. Transparency in Operation/Administration - transparency in the “procurement process” through the Civil Works Registry (CWR) and posting of information in the DPWH website; and new policies and procedures in several areas of operation to prevent discretionary or arbitrary decisions.

KEI in association with SKI and DCCD 7-33 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

iii. Enabling technology – procurement of “state of the art” computer equipment and software and training programs; voice and data communications network that, among others, eliminated long distance expenses between Offices and connected offices and provided email capabilities; central office storage and networking for decision making and monitoring.

iv. Accountability - Ensuring clear policies and procedures for the various operations as the first step for accountability; Executive Information System; “cleaning up” of Department Orders to determine which ones are still in effect and its the automation to allow quick searches by topic.

v. Organizational Culture - ensuring sustainability of the improvements implemented so far and pursuing more changes in the future and concomitant organizational culture change.

72. The ICB component is envisioned as a major activity component proposed under the Philippines Road Sector Improvement Project which basically seeks to augment and/or supplement the BIIPs for DPWH reforms. It seeks to cover the design and institutionalization of BIIPs not included in the projects, IBRD-assisted NRIMP-2 and upcoming JICA sector loan (currently under sector loan packaging and preparation) as well as new high impact applications.

7.8 ADB Sector Experience

7.8.1 Country Assistance Program Evaluation 2008

73. By the end of 2007, the ADB had approved $9.8 billion in public loans and $148.8 million in technical assistance to the Philippines. Through its private sector operations for the same period, ADS had approved $275 million in loans and $37 million in equity investments.

74. A major recipient is the road network which is the most indispensable part of the Philippines' transportation system. It plays an important role in the attainment Government's national goals and strategies for development. ADB has provided assistance to the road sector since 1970. Projects had been undertaken in Luzon, Visayas, and Mindanao, reflecting the Bank's policy to spread its assistance evenly among the major regions of the country. The common objectives of these projects were to construct, rehabilitate, and upgrade existing national and feeder roads to facilitate commodity flows and accelerate the socio-economic development of their respective regions.

KEI in association with SKI and DCCD 7-34 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 7.7.2.2 DPWH Core and Support Processes

Source: DPWH

75. The 2008 CAPE assesses the performance of the ADS assistance program since 2003 as an input for preparation of the new country partnership and strategy

76. At the beginning of the CAPE:

a. The ADB-Philippines partnership was faced with three key challenges: (i) an excessively broad country strategy and program with weak implementation performance; (ii) a large fiscal deficit resulting in low government spending on essential public goods; and (iii) a weak investment climate, and wide regional disparities resulting in persistent unemployment, inequality and poverty, particularly in the southern and eastern areas of the Philippines.

KEI in association with SKI and DCCD 7-35 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

b. ADB country strategies and plans were overly broad-based with wide sector and geographic coverage. c. ADB's ongoing investment operations experienced implementation delays; problems with land acquisition and resettlement; procurement delays; shifting political support for urban, agriculture, and education reforms; and a dearth of counterpart finance by 2002-2003 when fiscal constraints were most severe.

7.8.2 Transport Sector Experience

77. Overall assistance was assessed as "relevant" as support was consistent with the Government and ADB strategies for developing provincial and regional transport and communication infrastructure, despite operational design problems in the Sixth Road Project and cancellation of the Third Airports Development Project. Quality-at-entry for the Sixth Road Project was affected by the lack of a clear LAR policy and problems with sub-project selection. Nevertheless, about 80% of the objectives identified at appraisal were achieved; and despite delays, the economic efficiency exceeded appraised estimates (although delays meant foregone benefits and additional administration costs). The LAR problems led to delays and cancellations of some road improvements and bridgeworks. Compliance was late for a number of project covenants related to land acquisition. An ADTA approved with the loan reviewed the roles of the Bureau of Equipment and Regional Equipment Services, and determined how these institutions could be restructured into commercial ventures in the private sector. Recommendations made by the TA consultants to privatize the Bureau of Equipment were not implemented. Thus, the TA project's intended outcome was not achieved ADB's non sovereign support to - the first tolled expressway-in the road sector, with a project completion report validation as successful and exemplified a public-private partnership.

78. With the PPTA already completed, the proposed “Rural Roads Development Project Readiness TA Loan” could not be appraised because of Government’s inability to commit budget cover and the lack of clarity on both relending mechanisms and the Government-LGU cost-sharing formula.

7.8.3 CAPE Sector Recommendations

79. Transport infrastructure is a key constraint to private sector development and growth, and transport development is an area of ADB's core corporate competence deserving significant attention. The CAPE had raised the following sector recommendations:

a. At the operational level, careful evaluation is needed of LAR issues to ensure an accurate, agreed, and costed LAR plan prepared in advance of appraisal and to ensure that ADB policies are clearly understood and included in the Loan Agreement. b. To avoid major changes in design, optimistic implementation schedules place additional burdens on EAs and ADB. Clear roles and

KEI in association with SKI and DCCD 7-36 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

responsibilities of regional and local project management offices are needed. c. At the strategic level, development partners including ADB have provided substantial support for transport planning 'and attention needs to turn obstacles to implementation of plans. d. ADB needs to systematically assess where and how it can best contribute to sector's needs. e. To foster public-private partnerships in transport, greater coordination is needed among regulatory agencies and support is needed for infrastructure implementation. ADB needs to continue to address areas such as transport policy, transparent procurement; and improving the prospects for public-private partnerships, including needs for areas such as mass transit in Metro Manila and roll-on-roll- off ferry systems to promote trade through and beyond the archipelago.

7.8.4 Country Operations Business Plan 2009–2010

80. According to the ADB’s Country Operations Business Plan (COBP) for 2009-2010, the Country Strategy and Program (CSP) 2005–2007 for the Philippines covered only 3, rather than the usual 5 years in anticipation of economic uncertainties in 2005. In 2007, the Asian Development Bank (ADB) and the Government of the Philippines (GoP) agreed on an operational program for 2007–2008, which extended the CSP by 1 year through the country operations business plan (COBP) 2007–2008. In 2008, ADB and the GoP agreed on an operational program for 2009–2010, which would extend the CSP by 2 more years through a COBP 2009–2010. The CSP retains its strategic focus on: (a) fiscal consolidation, an improved investment climate, and accelerated attainment of the Millennium Development Goals (MDGs), as confirmed by the country assistance program evaluation (CAPE) for the Philippines; (b) the ADB study on the critical development constraints in the country; and (c) Importantly, extending the CSP to 2010 will align the cycle of the country partnership strategy with the Government’s planning cycle.

81. The economic uncertainties of 2005 have been substantially eliminated. Fiscal consolidation had been a noteworthy achievement, with the deficit declining from 2.7% in 2005 to 0.2% in 2007. Although the economy is faced with new risks from soaring fuel and food prices and a weakening global economy, the Government is firmly committed to fiscal consolidation. Sound debt management has reduced liabilities, lowered dependence on commercial borrowing, increased access to official development assistance, and eased debt servicing costs.

82. Against this background, the strategic focus and selectivity of the CSP remains relevant and robust for 2009–2010. The COBP will maintain the emphasis on alignment around government priorities, selectivity, and quality- at-entry. It will continue ADB support for medium-term reforms via the Development Policy Support Program, the Financial Market Regulation and Intermediation Program, and the Local Government Financing and Budget Reform Program. The country’s improved fiscal situation has allowed the Government and ADB to pay greater attention to other binding development constraints, namely, the need to accelerate the attainment of the MDGs and

KEI in association with SKI and DCCD 7-37 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

improve the investment climate. Accordingly, the ratio of investment projects in the 2007–2008 program increased from 2005–2006 and will increase further in 2009–2010.

83. The COBP 2009–2010 is closely aligned with the Strategy 2020 of ADB (Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008–2020). Of the five core areas of operation in the strategy, three—infrastructure, environment, and financial sector development—are covered by the proposed lending program. The Philippines is engaged in several regional cooperation initiatives, such as the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP- EAGA) and the Coral Triangle Initiative. Regional advisory technical assistance (TA) projects in 2009–2010 will support regional cooperation and integration, another core area.

84. The Philippines is among the largest recipients of non-sovereign support from ADB. This momentum will continue and indeed accelerate in light of the heightened priority accorded to private sector development in Strategy 2020. Private sector operations will be flexible in selecting projects, although they will be directed at the development of critical infrastructure projects and the promotion of key financial sector initiatives. Target infrastructure projects will be in power generation and transmission, renewable energy, energy efficiency, water supply, sanitation and waste management, toll road construction and operation, housing finance, light rail transit systems, and port operations. In the financial sector, the target opportunities consist of: (i) a loan to a domestic bank or nonbank finance company to support microfinance and small and medium-sized enterprises, (ii) asset-backed securitization, (iii) support for corporate bond issues to develop the capital market, and (iv) partial credit guarantees to support lending to small and medium-sized enterprises.

85. Table 7.8.1 presents the summary of ADB country program directions since 1998 that have bearing with the road and transport sector.

7.9 Role of other Development Partners in the Sector

86. Table 7.9.1 presents the other development partners assistance and corresponding sectors they are operating in currently being undertaken in the Philippines. Historically, the World Bank, the new Japan International Cooperation Agency (recently merged with the former Japan Bank for International Cooperation - JBIC) and the ADB have provided the largest amounts of external assistance to the Philippine road sector.

KEI in association with SKI and DCCD 7-38 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 7.8.1: Summary of ADB Country Programs Since 1998 Relevant to the Road Sector

Country Operational CSPU 2002-2004/ CSPU CSP 2001-2003 Strategy 1988 2004-2006 CSP 2005-2007

Strategic Priorities  Meet the challenge of a  Emphasized socio-  Priorities based on  Fiscal consolidation, sustained growth process environmental development socially inclusive improved investment and poverty reduction through development that should climate, accelerated  Promote equity and a strategic emphasis on areas result from (i) pro-poor, attainment of the MDGs social development lagging in development sustainable economic through enhanced public including strategic growth; (ii) social sector efficiency priorities for upgrading  Anti-poverty features in development, under . the country's operational designs which specific, targeted  Align more clearly with the infrastructure; rural programs for the poor are Government's MTPDP development; and human  Priority to southern envisioned; and (iii) good priorities supporting the resource development Philippines development; governance. The CSP focus on fiscal responsibility; with a focus on capacity-building assistance to updates took a thematic the need to act on the fiscal improving access to basic national and local approach to update sector imbalance which affects all education and primary governments; priorities, aspects of the ADB- health care facilities by Philippines partnership, and the poor;  Governance (judicial reform requires ADB to eschew a and local governance), trade "business as usual"  Promotion of more policy, and the environment. approach. regionally balanced development especially in  Builds on a shift to results- the southern Philippines; based portfolio and environmental management, with a focus management. on results management to reinforce the planning  Address issues relevant budget-implementation to the 1997 currency linkage turmoil, including capital market development and  Tighter selectivity for sector reform initiatives operational activities to assist private sector through a set of quality-at participation and restore entry criteria (EA absorptive investor confidence capacity; availability of budgeted counterpart funds; results-focused outcomes; compliance with government

KEI in association with SKI and DCCD 7-39 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Country Operational CSPU 2002-2004/ CSPU CSP 2001-2003 Strategy 1988 2004-2006 CSP 2005-2007

readiness filters, e.g. LARPs complete).

 Emphasis on targeted sector policy reforms to address fiscal and investment climate issues, with complementary investment projects targeted at off- budget agencies that support the MDGs and improved services in the following strategic areas: 1. Deeper structural reforms: (i) in power, to enhance financial solvency, regulation, and gover- nance; (ii) in finance, to improve efficiency of intermediation; and (iii) for LGUs, to strengthen fiscal management, capacity and governance. 2. Private investment to offset shortfalls in public investment due to fiscal consolidation, while restoring investor confidence, especially by (i) strengthening gover-nance through legal and judicial reforms; and (ii) promoting infrastructure and finance development; 3. Focused support for the MDGs through (i) improved health sector management and administration; (ii) water

KEI in association with SKI and DCCD 7-40 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Country Operational CSPU 2002-2004/ CSPU CSP 2001-2003 Strategy 1988 2004-2006 CSP 2005-2007

supply and sanitation; and (iii) microfinance, and small- and medium-sized enterprise development. 4. Mitigating economic and social disparities through Sub-regional development, especially Mindanao, reinforced by ADB's regional strategy and program.

 investment lending that does not encroach on national Government finances including (i) policy lending for sector reforms that depend on a conducive macroeconomic environment and commencement of substantive sector reforms consistent with political cover, macroeconomic fundamentals, and sector readiness; (ii) use of ADB's sub-sovereign, own recourse, and guarantee operations and private sector instruments; (iii) new financial instruments, approaches, and procedures being adopted by ADB (lEI); (iv) TA for knowledge products.

Road and Transport  Transport : (i) invest in  Agriculture : (i) invest in rural  Economic growth: (i)  Governance: Reforms to (i) Sector and Other transport with emphasis development including increase attention to rural improve resource Sector/Thematic on national and rural removing infrastructure development; (i) support mobilization and budget Related Strategies road expansion and bottlenecks; strengthening more balanced regional operations of LGUs to reduce

KEI in association with SKI and DCCD 7-41 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Country Operational CSPU 2002-2004/ CSPU CSP 2001-2003 Strategy 1988 2004-2006 CSP 2005-2007

improvement, and and improving access to development, with LGU dependence on national regional ports and support services through emphasis on the southern government transfers and airports; and (ii) provide innovative mechanisms; Philippines; (iii) promote improve LGU service policy advice/capacity rationalizing the institutional a stable macroeconomic delivery: (ii)improve building by enabling framework and roles of environment; (iv) transparency and reliability privatization of public national agencies, LGUs, improve the in the rule of law, and enterprises , developing NGOs, and local communities ; competitiveness of address problems of the regulatory framework identifying mechanisms for Philippine industries and corruption for private sector channeling additional funds to labor force (v) improve participation , and LGUs for devolved activities , infrastructure, especially  Urban development, water building local government building LGU capacity for rural roads and supply and sanitation: capacity project activity, expanding electrification, and (vi) investments in water supply community involvement in the emphasize greater private improvement to Metro  Agriculture and rural project process sector participation Manila, and urban services development: (i) invest in for the poor in Metro Manila. irrigation development  Infrastructure: (i) Transport  Human development (i) and communications: (a) improve quality of basis  Agriculture and rural emphasizing existing Formulate a policy framework social services (Ii) development investments in system improvement; for a rural roads investment support other safety nets integrated coastal resource provide rural program; (b) improve for the vulnerable in rural management and rural road infrastructure, research, efficiency , quality assurance , and urban areas and (iii) development. and extension services; and maintenance ; and support increased access support forestry and address axle overloading; (c) to basic education, fisheries resource continue support for highway improved sector resource planning , improved sector allocation, strengthening management, crop management and operations; of higher education. diversification, provision (d) in Metro Manila, provide of microcredit, and capacity building assistance in  Gender and development: promotion of agribusiness; traffic engineering, (i) narrow gender gaps in (ii) support LGU capacity management and basic education and building for rural enforcement, and planning: access to health services development, and (e) prepare an intermodal national transport strategy LGU/NGO coordination.  Good governance: (i) and policy action plan to improve transparency and identify future sector accountability in public  Finance (i) invest in assistance emphasizing capital market private sector participation; (f) sector functioning, and development and Improved regulation and tackling corruption ; (ii)

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Country Operational CSPU 2002-2004/ CSPU CSP 2001-2003 Strategy 1988 2004-2006 CSP 2005-2007

development of facilities safety standards; strengthen the for infrastructure finance; decentralization and (ii) provide  Social infrastructure and devolution process; (iii) policy/capacity building environment: (i) Urban enhance participation of in capital market development: support urban development including sector policy reforms and civil society and bond segment and institutional strengthening; stakeholders in policy mutual funds. and rationalize the financing making, public secondary markets, mechanism for urban investment decisions. and policy reforms for capital development under the monitoring the quality of decentralized government public services; and (iv) system; build financial, support peace and institutional. and administrative capacities of development, especially LGUs; promote public-private in the southern partnerships for urban Philippines. infrastructure and services development; and promote  Private sector integrated approaches to development: (i) assess urban development. (ii) the private sector Environment: support poverty enabling environment. (ii) reduction and environmental management linkages through support continued participatory planning and development of capital management; support markets and financial addressing urban infrastructure, (iii) environmental problems increase participation of especially air pollution in large private sector in regional urban centers; infrastructure support industrial and environmental policies for development, (iv) support clean air and production restructuring of including solid waste Philippines National management. water supply Railways and privatization and sanitation, and land use of NPC, management in urban development projects.  Environment: Continue

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Country Operational CSPU 2002-2004/ CSPU CSP 2001-2003 Strategy 1988 2004-2006 CSP 2005-2007

 Governance: Address support for specific governance concerns by measures to address improving functioning of COA environmental protection; and public procurement; sustainability; and accelerating privatization and restructuring public rehabilitation. including enterprises ; continuing urban air quality, surface dialogue on project water quality. solid waste performance; strengthening management, forest the decentralization process; resources, and coastal supporting greater private resources. sector participation, NGOs,  Regional Cooperation: and civil society; extending further efforts in the southern Continue to support Philippines, especially areas BIMPEAGA through SME affected by civil strife and activity and ongoing support for BIMP-EAGA; complementary regional supporting reform initiatives transport infrastructure for controlling money links . laundering.

 Gender: assist in closing gender gaps, particularly in the southern Philippines in key areas such as access to education, health and water, economic opportunity, and finance: and through increased use of community participation approaches.

 Private sector: assist the Government in its privatization program and developing the private sector enabling environment including financing infrastructure

KEI in association with SKI and DCCD 7-44 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Country Operational CSPU 2002-2004/ CSPU CSP 2001-2003 Strategy 1988 2004-2006 CSP 2005-2007

projects that address critical bottlenecks such as power generation and transmission, water supply and wastewater treatment, solid waste management, transport, and rural telecommunications; financial intermediation including capital market development and financial infrastructure, deregulation of industry, trade and investment, privatization of selected GOCCs, and improved capacity for BOO/BOT financing.

 Regional cooperation: Within the BIMP-EAGA area assist in developing roads and airports, in social development, capacity building initiatives for local governments, and development of private sector activity; resume assistance for capacity building of the Mindanao Economic Development Council as coordinating office for BIMP- EAGA and developing SMEs in the BIMP-EAGA area.

BIMP-EAGA Brunei, Indonesia, Malaysia, Philippines-East ASEAN Growth Area; BOO/BOT = build-own-operate/build-operate-transfer: COA =Commission on Audit; COS = country operational strategy; CSP =country strategy and program; CSPU =country strategy and program update; DOH = Department of Health; EA = executing agency; GOCC = government-owned and -controlled corporation; lEI = innovation and efficiency initiative; LARP =Land Acquisition and Resettlement Plan; LGU = local government unit; LWUA = Local Water Utilities Administration; MDG = Millennium Development Goal; MTPDP = Medium-Term Philippine Development Plan; NGO = non-government organization; NPC =National Power Corporation; NPL =non-performing loan; SME =small-and medium-sized enterprise. Source: Asian Development Bank Philippines CAPE: Increasing Strategic Focus for Better Results, June, 2008

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87. The ADB and World Bank have generally focused on the improvement of existing roads either through rehabilitation or the conduct of periodic maintenance, while JICA/JBIC focused on the improvement of existing roads and construction of new roads. Three sector loans from these 3 institutions are currently envisaged to push through before the end of 2010 (World Bank NRIMP Phase 2 is now on going) and the ADB and JICA project under packaging and negotiation. Generally, these loans will have a loan requirement of USD$220M to USD$300M. Components of this assistance will generally cover asset preservation, road improvement, and institutional capacity building in support of reforms.

88. The Government of South Korea through its Economic Development Cooperation Fund (KEDF) is a relatively new development assistance provider with operations similar to the old JBIC. It is similarly offering program loan assistance for improvement of existing roads and construction of new roads. Individual project preparatory and pre-construction assistance had been granted to the Philippine road sector.

89. ADB, given its unique position in the Philippines and responsibility in Asia, should play a more active role in donor coordination, both at the regional and at Philippine level. Cooperation will be deemed critical for overall development and formulation of a harmonized and coordinated sector policies and programs that address important road and road transport sector issues. The transport sector will continue to be a major focus of external assistance in the majority of countries in the foreseeable future. There is still a need to extend cooperation and collaboration with other development partners to optimize the benefits from external assistance for member countries and ensure that core elements of transport road maps achieve their intended outcomes.

90. ADB should take the lead in supporting local authorities to implement strategic planning and sector studies with full opportunity for the various interested stakeholders to comment on, among others, terms of reference and participate in sector issue and reform analysis. Such studies can rapidly produce a strategic agenda, identifying objectives and constraints, institutional development needs, processes of sector management, appropriate policies, as well as broad expenditure allocations within a realistic budgetary envelope. This can be periodically repeated/updated every three to five years or if and whenever necessary. This can form the basis for improved donor collaboration at the country level. Support should also be provided to build the capacity of local transport research institutes and promote effective transportation policy development and planning, to help countries develop in-country analytical skills for road transport policy developments and enhance their role in donor coordination in the future.

91. It will be important to maintain a clear division of labor among interested multilateral and bilateral external donors, to avoid duplication and yet ensure that key issues are not being neglected by the donor community. ADB is in a good position to verify plans and programs in each of its member countries and to identify any gaps or duplication that might exist.

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Table 7.9.1: Other Development Partner Assistance in the Philippines

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Table 7.9.1: (Continued)

7.10 Intended Sector Outcomes and Key Outputs Supported by the ADB

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92. A summary of the currently prevailing ADB-Philippines partnership targets and progress for 2005- 2007 is presented in Table 7.10.1. Several of the given previous outcomes to Philippine development goals from the partnership were noted to have relevance to the road sector, as follows:

Table 7.10.1: ADB-Philippines Partnership Targets and Progress for 2005-2007

Philippine Development Goals Partnership Outcomes

 Improved macroeconomic stability  Adopted policy support and and fiscal outlook recommendations leading to improved fiscal outlook and improved business  Improved Competitiveness and climate Investment Climate  Improved Financing and investments,

both public and private as well as bank  Job Creation and non-bank, to Local Government Units to support road and transport sector investments, operations, and maintenance

Good governance, anti-corruption, and  Results based systems institutionalized peace and order and adopted by necessary partners  Efficient and effective delivery of services, e.g.km of roads constructed within plan and specifications, km of roads maintained of set quality benchmark, road charges approximating maintenance and costs of externalities such as pollution, optimized fares and tariffs for road transport services  Harmonized planning, budgeting, procurement, and maintenance of projects and investments , e.g. compliance to plan and intended purpose/s  Improved bank financial portfolio performance

Poverty Reduction  Reduced poverty incidence and improved income and access conditions (health Social and Human Development services, education, water, better services, means of livelihood  Increased investments and budgets for Local Governments for these services  Roads at density value 2.5 km /1,000 people with the country

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Table 7.10.2: Summary of ADB-Philippine Partnership Targets and Progress for 2005-2007

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93. Table 7.10.3 presents an intended sector outcomes and key outputs that can be supported by ADB under its current Country Strategy and Program for the Philippines.

Table 7.10.3 Road Sector Outcomes and Key Outputs that can be supported by ADB

CSP Strategic Priority Outcome and Key Output

 Fiscal consolidation, improved  Adopted policy support and Technical investment climate, accelerated Assistance/Project Study recommend- attainment of the MDGs through dations leading to improved fiscal enhanced public sector efficiency outlook and improved business climate  Improved/Increased financing and investments, both public and private as well as bank and non-bank, to Government and Local Government Units, Private Sector (B-O-T/PPP, investors and transport operators) to support road and transport sector investments, operations, and maintenance  Align more clearly with the  Improved attainment of MTDP targets Government's MTPDP priorities (i.e. economic, social, and sector- supporting the focus on fiscal specific) responsibility  Shift to results-based portfolio  Results based systems institutionalized management, with a focus on and adopted by necessary partners results management to reinforce  Efficient and effective (on plan, on the planning budget- budget, and on schedule) delivery of implementation linkage services, e.g.km of roads constructed within plan and specifications, km of roads maintained of set quality benchmark, road charges approximating maintenance and costs of externalities such as pollution, optimized fares and tariffs for road transport services  Quality based benchmarks incorporated and institutionalized in results –based management process  Tighter selectivity for operational  Reduction of “at risk” and high activities through a set of quality- “probability to fail project” investments at entry criteria (EA absorptive in portfolio management in the road capacity; availability of budgeted sector counterpart funds; results-focused  Risk management techniques are outcomes; compliance with institutionalized in the investment government readiness filters, e.g. planning and programming processes LARPs complete).  Maximization of benefits/returns from program investments  Emphasis on targeted sector policy reforms to address fiscal and investment climate issues, with complementary investment projects targeted at off-budget agencies that support the MDGs and improved services: 1. Deeper structural reforms:  Improved /Increased financing and (i) in power, to enhance investments, both public and private as financial solvency, regulation, well as bank and non-bank, to Local and governance; (ii) in Governments and private sector (B-O- finance, to improve efficiency T/PPP, investors and transport

KEI in association with SKI and DCCD 7-51 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

CSP Strategic Priority Outcome and Key Output of intermediation; and (iii) for operators) to support road and LGUs, to strengthen fiscal transport sector investments, management, capacity and operations, and maintenance governance.  Improved and/or new financing windows, products and modalities studied and made to Local Governments and private sector investors  Faster access to credit and associated services (e.g. assistance to technology sources, ancillary services and networks, etc.) 2. Private investment to offset  Improved /Increased financing and shortfalls in public investment investments, both public and private as due to fiscal consolidation, well as bank and non-bank, to Local while restoring investor Governments and private sector (B-O- confidence, especially by (i) T/PPP, investors and transport strengthening governance operators) to support road and through legal and judicial transport sector investments, reforms; and (ii) promoting operations, and maintenance infrastructure and finance  Improved and/or new financing development; windows, products and modalities studied and made to Local Governments and private sector investors  Prepared master plan of harmonized and prioritized BOT-PPP projects in road and transport sector in place periodically updated , and marketed  Framework for Philippine BOT/PPP investment process periodically reviewed and institutionalized for efficiency, adoption of best international practices, and suitability to Philippine conditions. 3. Focused support for the  Provision of suitable basic infrastructure MDGs through (i) improved access support to MDG influence areas health sector management and  Provision of and where needed transport administration; (ii) water services as private sector operations supply and sanitation; and (iii) (e.g. cooperatives) i.e. roads cum microfinance, and small-and transport integrated project packages or medium-sized enterprise programs at identified priority MDG development. influence areas 4. Mitigating economic and  Improved /Increased financing and social disparities through Sub- investments, both public and private as regional development, well as bank and non-bank, to especially Mindanao , Government and Local Government reinforced by ADB's regional Units, Private Sector (B-O-T/PPP, strategy and program investors and transport operators) to support road and transport sector investments, operations, and maintenance  Provision of and where needed transport services as private sector operations (e.g. cooperatives) i.e. roads cum livelihood integrated project packages or programs at identified priority MDG influence areas Road and Transport Sector and Other Sector/Thematic Related Strategies  Governance: Reforms to (i)  Updated and reviewed Rural Roads or improve resource mobilization LGU Development Framework Project and budget operations of LGUs and its recommendations (e.g. finance) to reduce LGU dependence on institutionalized in results-based

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CSP Strategic Priority Outcome and Key Output national government transfers framework of Government and improve LGU service  LGU institutional capacity building delivery: (ii)improve programs periodically updated, carried transparency and reliability in out, maintained and sustained the rule of law, and address  LGU self-generated revenues increasing problems of corruption and national government dependence on budget releases reduced  LGU taking full charge of their mandated operations effectively and efficiently  LGU performance monitoring for accountability periodically carried out by national government and private stakeholder groups  Urban development, water  A re-organized, capable and professional supply and sanitation: urban management body empowered investments in water supply with appropriate mandate and improvement to Metro Manila, accountability is set-up to tackle mega and urban services for the city planning, coordination. and poor in Metro Manila. monitoring (e.g. integrated urban transport, land use development and redevelopment, governance, environment, etc.).  Periodic stakeholder dialogues, meetings, consultations carried out with donor assistance and technical guidance  Private sector taking an active lead in development, investments, and visioning of the future state of the city/urban area  Agriculture and rural  Improved /Increased financing and development investments in investments, both public and private as integrated coastal resource well as bank and non-bank, to management and rural road Government and Local Government development. Units, Private Sector (B-O-T/PPP, investors and transport operators) to support road and transport sector investments, operations, and maintenance  LGUs are taking full charge of their mandated operations effectively and efficiently  LGU performance monitoring for accountability periodically undertaken by national government and private stakeholder groups Note: BOT – Build-Operate Transfer, EA – Executing Agency, LARP- =Land Acquisition and Resettlement Plan MTDP –Medium Term Development Plan, MDG – Millennium Development Goals, PPP – Public-Private Partnership

7.11 Links to CPS Outcomes and Other Sector Themes

94. Table 7.11.1 presents the Sector Results Framework for the road sector considering the CPS outcomes of improved fiscal outlook and improved business climate; Improved/Increased financing and investments, both public and private as well as bank and non-bank, to Government and Local Government Units, and Private Sector (B-O-T/PPP, investors and transport operators). Results based systems institutionalized and adopted by necessary partners, and harmonized planning, budgeting, procurement, and maintenance

KEI in association with SKI and DCCD 7-53 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

of projects and investments, e.g. compliance to plan and intended purpose/s; Poverty Reduction, Job Creation, and Social and Human Development.

7.12 Indicative Areas for Intervention

95. The World Bank in its 2005 paper “Philippines: Meeting Infrastructure Challenges” recommended. It will be noted that these were focused on: (i) Improving governance and accountability of spending at the Department of Public Works and Highways; (ii) Implementing structural changes in the road sector; (iii) Placing greater reliance on user charges to support sector needs; (iv) Improving private sector participation; and (v) Improving management of road use to protect lives and road assets. The corresponding projects and activities are presented in Table 7.12.1.

96 Table 7.12.2 presents indicative areas for policy and strategic intervention by the ADB within the Current Operations Business Plan (COPB) and Country Partnership Strategy. These will generally cover the following 11 general priority concerns in the road sector: (1) transport and the poor, (2) supporting economic growth, (3) Addressing Governance, (4) Financing for Sustainable Transport, (5) Urban transport, (6) vehicle emissions, (7) regional cooperation, (8) transport safety and security. (9) multimodal transport and trade logistics, (10) transport and the disabled, and (11) new technologies. The concern supporting economic growth (2) had been given further focus by further segmenting this into: (a) operational efficiency, (b) relieving bottlenecks to trade, (c) accessibility to isolated areas, (d) urban transport, and (e) private sector participation.

97. This had generally borrowed and followed the analytical framework adopted in the 2004 ADB paper, “A Transport Strategy for Sustainable Development”. The paper notes that “There is no overarching strategy that fits all development member country (DMC). For each country, the ADB will have its roadmap summarizing the country strategy and indicate how ADB assistance will help achieve the strategy”. Furthermore, it also noted that “less emphasis” has been given to poverty...while more emphasis placed on transport facilitating economic growth … within the overall context of poverty reduction strategy.”

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Table 7.11.1: Sector Results Framework

Sector Subsector CPS Outcomes Key Opportunities Milestone/Tracking Outcome/Key Sector ADB Assistance Relevant to the Sector and Constraints Indicators/ Interim Risks Outputs Indicators  Improved fiscal outlook  Adopted and  Increased budgets  Approved Annual  Program Lending  External economic and improved business Institutionalized and investments for Budgetary Allocations  T.A. Advisory shocks (e.g. climate Fiscal Policy road sector projects  Percentage of Services slowdown, crisis, high Recommendation commodity prices,  Improved magnitude Approved Budget  Policy Advocacy  Outlook for greater and coverage of plans Allocation to Required etc.)  Donor Community growth, investments, and/or development Annual Needs  Slow , non or partial Support and capit al needs  Improved level application of

generation physical targets proposed changes  Government bodies not meeting fiscal requirements (e.g. tax/revenue targets)  Proposed solutions may not be the proper solutions if not properly evaluated  Improved/Increased  Wider coverage of  Increased budgets  Reduced equity and  Program Lending to  Parties having trouble financing and programs with private and investments for investment Private Sector and or unable to meet investments, both sector support, bank road sector projects requirements for Local Governments start-up requirements public and private as and non-bank  Improved magnitude major projects  Non-bank financial (e.g. right of way, well as bank and non- financial assistance. and coverage of plans  Grants and technical windows of financing and bank bank, to Government  Involvement of and/or development assistance support to assistance to guarantees and Local Government Private sector in needs project operations Government, Public requirements Units, and Private provision of services  Private sector  Local Government Sector, and Local Sector (B-O-T/PPP,  Improved coverage management and functions for rural Governments (e.g. investors and transport by Local technological skills roads enhanced technical and operators) Governments of their brought into sector (capability and financial support for pre-construction programs.  Private-public capacity activities) for B-O-T partnerships born and improvements) projects forged

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Sector Subsector CPS Outcomes Key Opportunities Milestone/Tracking Outcome/Key Sector ADB Assistance Relevant to the Sector and Constraints Indicators/ Interim Risks Outputs Indicators  Results based systems  Unified and focused  Efficient and  km of roads  Advocacy of good  Non-acceptance by institutionalized and approach to project effective delivery of constructed within practice procedures vested groups who adopted by necessary development and goods and services plan and  Harmonized donor may block or partners sustainability within plans, specifications, cooperation and circumvent the  Harmonized planning,  Improved attainment budgets, and  km of roads coordination with system budgeting, of plans and schedules) maintained at set Government  Uniform application in procurement, and programs quality bench-mark operations the organizations maintenance of  Improved resource (e.g. International  Sustained Lending involved to truly projects and allocation and Roughness Index Programs minimize leakage and investments, e.g. funding system value equal or less bad decisions which compliance to plan and  Reduction than 4) , affects efficiency intended purpose/s  Road charges approximating road maintenance and costs of externalities such as pollution, optimized fares and tariffs for road transport services  Poverty Reduction  Socially relevant and  Support to Poor and  Km of roads  Advocacy and pilot  Projects may not be  Job Creation equitable Disadvantaged constructed and work for different economically viable  Social and Human development Groups maintained in project approaches, and represent a net Development  Pro-poor strategy  Support to Areas identified social or e.g. roads cum drain to the economy  Projects may not be with peace and order pro-poor zone livelihood and/or in the medium to economically viable problems  Length of bridges integrated area long run and represent a drain constructed in projects.  Quality at entry to the economy in the identified social or  Funding support for filters need to be medium to long run pro-poor zone special poverty made clear under  Special screening or enclave areas results based filtering techniques at programs approach investment  Assistance in special programming stage evaluation and may be necessary. appraisal techniques for impoverished areas. Note: B-O-T - Build-Operate-Transfer Projects; PPP – Public-Private Partnership; T.A. – Technical Assistance

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Table 7.12.1 Road Sector Recommendations

Actions for the Actions for the Short Term Issue Medium Term (less than 3 years) (3 -5 years) Improving governance  Establish accountability for and accountability of results of road spending at spending at the district and regional levels Department of Public  Prioritize spending based on Works and Highways major final output criteria  Reduce costs and increase transparency in procurement  Apply the same efficiency and transparency principles to congressional funds projects Implementing structural  Rightsize DPWH staff levels  Establish a changes in the road  Operationalize Road Board to commercially oriented sector ensure stakeholder oversight National Roads  Enlist support from oversight Authority (NRA) agencies to monitor and drive  Optimize road the road sector reform process network; redefine primary and secondary roads. Placing greater reliance  Expand toll road coverage and  Increase user charges on user charges to charge appropriate level of through fuel levy support sector needs tolls Improving private sector  Resolve impediments to toll participation road concessionaires  Increase use of performance- based maintenance contracts  Analyze obstacles in implementing the law on right-of-way acquisition (RA 8974)  Use open competition as preferred method for project selection  Limit the role of Toll Regulatory Board to economic regulation  Develop a strong pipeline of road projects that could readily lend themselves to private sector participation Improving management  Ensure effective of road use to protect control of axle loads lives and road assets  Develop a road safety strategy Source: World Bank Group, Philippines: Meeting Infrastructure Challenges, 2005

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Table 7.12.2: Road Sector Indicative Areas for Interventions

Concern Issues and Trends Indicative Area for Intervention (Results)

1. Transport and the  Lack of reasonable access to markets, social services and civil  Advocacy and continued support for pro-poor road Poor society remains a dominant problem for large numbers of the and transport policy (Projects and investment lending poor in rural areas and for rapidly increasing numbers in cities. in target segment, and improved socio-economic and In fact, "The lack of basic infrastructure-particularly roads, poverty benchmarks) transportation and water-is seen as a defining characteristic of poverty 1. Targeting transport investments to the poor or to poor regions should be an integral element of a  Transport investments can facilitate poverty reduction in two sustainable growth strategy that includes ways (i) by directly increasing the productivity of the poor investments in transport infrastructure and through improved accessibility to schools, clinics, markets, services. businesses, etc, and (ii) by increasing the productivity of employment generating business and industry. 2. Targeted investments should ensure that the overall transport investment plan is equitable as  The major role of trunk roads, secondary networks, and rural well as efficient. access improvements, is in enabling increased agricultural production, higher productivity, increased non-farm activity, 3. Emphasis needs to be placed on attracting improved labor mobility and expanded participation in better affordable transport services since these are the health and education services. It is well recognized that services that generate the benefits to the local economic growth is the major force contributing to poverty communities reduction 4. Poverty-focused transport projects should include  Emphasis needs to be placed on attracting affordable transport provisions for monitoring and evaluation impacts services as it is the services that generate the benefits to the and outcomes. Continued attention to monitoring, local communities. evaluation and empirical research is important in order to provide invaluable guidance and feedback  Competition for and in the market is necessary if the benefits of for further improvements in the design of projects transport are to be passed on to users rather than owners and to overcome access problems of the poor. operators of vehicles and vehicle fleets. In many rapidly growing urban areas a similar problem is commonly observed  For transport services, there is a need for a proper where deterioration of public transport services results from a regulatory framework to be in place to provide low low fares policy, often below costs, and government authorities cost-efficient public services where the transport are unable to support revenues. benefits are widely distributed (Regulations, laws, and Orders issued and circularized and complied with; resulting fares and tariffs optimized and desired outcomes attained)

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Concern Issues and Trends Indicative Area for Intervention (Results)

2. Supporting  Research on economic growth repeatedly highlights the  Continued fund support to programs for improvement, Economic Growth importance of transport investment to supporting overall growth upgrading, and construction as well as expansion of  Transport's contribution to sustainable economic growth road sector projects (Lending and Investment and depends on the extent to which economic activities can be Projects; Improvements of Travel Cost and Time, linked efficiently and economic "distances" reduced. Percentage Attainment in Meeting Plans, and  Transport can facilitate expansion of domestic and international Generated traffic volume, etc.) markets.  Since improving transport services needs to be undertaken in a manner that will keep an economy competitive in an era of increasing globalization, the performance of the sector needs to be continuously raised. '  The specific factors of importance will vary between countries and regions within countries depending on local circumstances and whether international or domestic markets predominate.

2.1 Operational  The greatest evidence for the need to improve operational  Road asset management principles are advocated, Efficiency efficiency is the poor level of maintenance that characterizes the supported, and institutionalized (Compliance to road network/s Planned Programs; % of Budgeted or implemented compared to plans; Guidelines Adopted across  Inadequate maintenance is resulting in large losses of capital organizations) assets that are lost prematurely due to the neglected and deferred maintenance.  Monitoring the support and compliance of Road Fund in meeting demand and that Road Board/authorities  There is a common misperception that a lack of resources is the are properly and efficiently functioning as reflected in reason for poor maintenance. The reality is that much more network quality (% Compliance, and International money is spent on reconstruction of roads than would have been Roughness Index rating of networks) necessary had maintenance been done in the first place.  Advisory and procurement services on development,  Large gains in efficiency are possible from institutional reforms utilization, and sustainability of modern management that strengthen the capacities of local, regional and national systems; trainings; networking and exchange governments to manage the framework for transport more (systems developed, rolled out, and utilization rate; efficiently and enhance the capacities of transport organizations improved cost/time of doing business, improvement to provide customer-responsive services. in processing time; costs or benefits of better decisions)  Throughout the sector, a significant obstacle to improved operational efficiency in public sector institutions has been outdated administrative structures, often with large labor forces.

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Concern Issues and Trends Indicative Area for Intervention (Results)

 Outdated sector management arrangements often mean there is no medium or long term planning to provide criteria to judge agency accountability.

 Inefficient management and work practices impose costs on users that impede the efficiency and utilization of the infrastructure. Such agencies need to be "right sized", with public and private roles reoriented, in order to free up budget resources to introduce sound plans, operating systems and technologies.

2.2 Relieving  The main impact of transport on growth is through lowering  Continued fund support to programs for improvement, Bottlenecks to Trade costs and thereby improving the efficiency of production and upgrading, and construction as well as expansion of increasing the prospects of trade whether domestic or sector projects (Lending and Investment and international. Projects; Transport Cost and Time savings, Generated traffic volume, etc.)  Dependability and reliability of services is often as important as other factors of production. The physical, policy and procedural impediments to better transport services and bottlenecks to trade need to be addressed.

 Increased passenger services also impacts on growth since it eases labor movements thereby increasing the efficiency of national and regional labor markets and therefore productivity.

 Increased passenger traffic also opens communications between regions and fosters the flow of ideas, innovation and technology that are critical components for sustained growth.

2.3 Accessibility to  Upgraded trunk routes are required in various locations to open  Advocated as part of pro-poor policy (Item 1 above) Isolated Areas up depressed landlocked and/or isolated areas and permit them to participate in the modern market economy

 Roads and railways will normally be the primary means of providing trunk access, and sea transport and air transport also serve as part of trunk networks in archipelago countries such as the Philippines .

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Concern Issues and Trends Indicative Area for Intervention (Results)

 The development, reform and deregulation of the commercial trucking industry can be a key component of improved transport services.

 Shipping or air transport provide the most cost-effective means of meeting the needs of remote areas. Inland water transport, coastal shipping, and inter-island ferry services are relatively neglected modes that in the right situation can meet transport needs at relatively low cost.

 Smaller islands of major' archipelagos like the Philippines, experience economic isolation due to the high cost of transport access. For these locations inter-island and international shipping and low-cost air transport may be critical. These economies are particularly reliant on maritime transport and in most cases the scale of operation is small and there is difficulty in attracting private sector investment and services.

2.4 Urban Transport  Cities and towns are playing an ever-increasing role as the locus  Continued Advocacy of modern urban concepts, of economic growth. ADB has estimated that 80% of the integrated intermodal transport systems, within the region's new economic growth will be generated in its urban wide framework of overall land use as well as fund economies, highlighting the importance of the urban agenda to support and private-public partnerships (Plans, Design national economic growth. Plans, Project/Sub-projects, Investment support; urbanization impacts on cost. Time, convenience and  Urban transport investments not only facilitate trade and safety) commerce. but also structure the shape of cities and the location of business activities. Modern urban transport systems therefore-need to be seen as a facilitator of economic growth in the same way as national transportation networks.

 Many of the region's major cities are among those facing the most serious problems in the world in regard to traffic congestion, declining quality of public transport, and unplanned growth in peripheral urban areas without adequate transport services.

 These issues continue to become more acute with increasing motorization, spreading to secondary cities, and affecting more people as rapid modernization occurs.

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Concern Issues and Trends Indicative Area for Intervention (Results)

2.5 Private Sector  In many countries most road-based bus services, para-transit Marketing and design of new innovative lending and non- Participation services, and virtually all road freight services are delivered by lending windows for private sector participation as well as the private sector. With respect to large facilities, concessioning partnering with Government for road and transport of ports and airports to private operators have seen the greatest sector finance as equity and leverage to increase successes and have often led to dramatically improved domestic currency resources from the domestic capital productivity. markets (financial windows and modalities offered, rate of capital generation/utilization, etc)  Build-operate-transfer (BOT) and concession approaches for other transport modes including toll roads, railways and urban mass transit systems have yielded more mixed results.  there have been few projects in these sectors profitable enough to attract the private sector without some public sector participation.

 Of the relatively few projects that have reached financial closure, many have tolls or fares that are generally high for local income levels and hence the facilities have not attracted the forecast traffic.

 Some projects have required governments to step in with large- scale financial support that has required substantive cuts in other programs, even outside the transport field.

 Since the 1997 Asian financial crisis several BOT projects have been a particular burden since many were structured with substantial foreign financing, which led to higher debt repayment obligations in local currency after devaluation.

 The main advantage of involvement of the private sector lies in introducing improved management and operations, rather than in being a source of financial resources per se. When competition can be engendered, and proper regulatory frameworks established, private management has shown that it can bring needed efficiency and innovation to sector management. Even under the most optimistic scenarios, the level of financial resources that might be generated by the private sector is likely only to be a small fraction of the total resources required by the transport sector.

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Concern Issues and Trends Indicative Area for Intervention (Results)

 On an individual project basis, however, the implementation of a project by the private sector can make an important contribution towards securing finance outside of the public sector budget.

 The area where it is most important to attract more private participation is in the maintenance and operation of existing roads. On the basis of experience in other regions of the world maintenance costs per km could be reduced by at least 30%. Such savings would make a major contribution to overcoming the maintenance backlog, reducing the high operating costs that poor surfaces impose on road users, and lowering the need for costly pavement reconstruction. Thus, beyond traditional public works contracting of periodic maintenance, packages of roads could be assembled, and comprehensive multiyear contracts for their management and maintenance offered for competitive bid.

 For high-volume roads it will be possible in some cases to adopt competitive concessioning of the facilities, with part or all of the costs to be recovered by the concessionaires from tolls, fares, or in some case "shadow" tolls.

 The approach can be extended to freight and suburban railway lines. as has been successfully achieved

 Bus and para-transit services that are the main form of transport for lower income groups could be made more responsive by creating competitive markets, with private operators providing the services and government regulating them.

3. Addressing  Conflicting interests, inside and outside the sector, constantly  Review and enforcement of prevailing governance and Governance require reconciliation, as new areas and new traffic develops and anti-corruption policies (investigations, cases filed); new solutions are proposed.  Continued support to government sector strategic planning, at national and local levels, with emphasis  Decentralization of government responsibilities is a trend that is on wide consultation, genuine consensus building and placing more responsibility for urban and rural transport effective assessments made on the impact of systems closer to the people affected by these systems. investments actually made and quality of services provided (workshops and workshop outputs, number  Existence of large, immobile transport institutions trained).

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Concern Issues and Trends Indicative Area for Intervention (Results)

 The single most important task of government is to provide  Continued advocacy and support to decentralization clear and effective guidance, through policies and identification of government responsibilities for urban and rural of priority investments for the evolution of the sector. transport systems closer to the people affected by these systems (performance of devolved and  The second most important task is the development of decentralized functions) institutional arrangements and management systems that create internal incentives for accountability, efficiency and innovation. Support the increased corporatization of public agencies in the sector and the establishment of sound commercial accounting systems, organized  Road Boards to manage their road assets and road investments. around lines of business, commercial practices Representatives of the private sector, road user and civic groups including tariff setting, introducing public service as well as public officials govern these Boards. The concept is to obligations to serving disadvantaged areas and operate the road system as if it were a revenue earning utility contracting out non-core subsidiary services (Savings and create a transparent link between expenditures on roads in costs of government operations, service delivery) and the revenues gathered from road users. Road-user-charges,  Advocacy and support to improved approaches on channeled into a road fund that is managed by the Road Board road expenditure management through better is the preferred means of financing road maintenance." linkage between road user charges and actual

expenditures on the road system (extent of coverage  There is still a large agenda of needed institutional reforms in of road requirements). government-owned transport operating agencies and public transport companies  Support and champion increased emphasis by the development community on improvement of  Procurement procedures for contracts financed by ADB follow governance through greater attention to contracting international best practice, member countries do not always procurement, contracting procedures, value for follow such practices in contracts financed by national budgets. money applied by road and transport agencies on In the highways field, competitive tendering has become the non-ADB financed procurements (harmonized normal practice for any significant construction activity. What approaches) constitutes competitive procurement, however, is subject to wide variation in terms of transparency and integrity of the  Support strengthening of service procurement and process and the extent of true competition. contract enforcement skills of road sector agencies’ staff on measures to address corruption and  Similar considerations apply to the operations of enforcement transparency, mechanisms for handling complaints, agencies, where corruption remains a major obstacle to internal control and auditing arrangements (Trainings, and Number of staff trained) improvement of law enforcement, traffic management, vehicle inspection, driver licensing, vehicle emissions, and route  Cooperate and coordinate with other major donor franchising. agencies, government, and stakeholder groups on harmonized measures to address governance and corruption (harmonized approaches established).

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Concern Issues and Trends Indicative Area for Intervention (Results)

4. Financing for  Address the need to improve the contribution of the transport  Advocate and champion policy measures and Sustainable sector as well as recovery of costs from road users. operational mechanisms to increase road user Transport contributions to fully meet the costs for needed  If properly managed, improvements in cost recovery could maintenance, rehabilitation, and network resolve the maintenance problem and turn the development of improvements as well as external costs involved in road networks from a heavy burden on national budgets to a road use - air pollution, noise, congestion, accidents financially sustainable process. and division of communities. (Extent of coverage by  Improved cost recovery could also provide incentives for road fund) reduction of the negative impacts of motor vehicle use and the  Cooperate and coordinate with other major donor overall impact could make a significant contribution towards agencies, government, and stakeholder groups on making the overall growth process more efficient and more harmonized measures to address governance and equitable. corruption.(harmonized processes institutionalized)

 Many countries are not collecting sufficient revenues from the roads sector to fully meet the costs for needed maintenance, rehabilitation, and network improvements, let alone making a net tax contribution to support the general government budget

 Despite the political unpalatability of increased taxes and charges, measures need to be taken to increase road user contributions if the road networks are to keep abreast of the region's expanding economies.

 A reasonably simple, and fair, aim would be to have total expenditures on roads covered by road users through a combination of annual vehicle license fees and fuel levies, that would be distinct from general taxation on these items.

 The fuel levies would reflect the short-run marginal costs of use of roads and should include an allowance for externalities including road safety, local environmental effects and the global warming risks of carbon dioxide emissions, which are almost directly proportional to fuel use.

 The license fees would raise the substantial additional sums required to cover total expenditures, and would also reflect differences in vehicles' marginal costs that cannot be captured by fuel charges. Placing the revenues from these sources in a road fund as could add to the attractiveness and sustainability of the reform.

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Concern Issues and Trends Indicative Area for Intervention (Results)

 The external costs involved in road use - air pollution, noise, congestion, accidents and division of communities-have a particularly serious impact in an urban context. It is widely agreed that the marginal costs of these impacts should be charged to road users but the difficulty is in finding an efficient way of achieving it in practice (e.g. Parking charges, expressway toll, high city registration/license fees, central area congestion pricing).

 On the issue of financial sustainability where transport operations are not managed very effectively and experience severe financial sustainability issues. pricing and cost recovery there is a need for sound regulation to maintain a fair and competitive framework able to combine efficient service with financial sustainability for transport operators.

5. Urban Transport  Urban transport is of particular relevance to a pro-poor growth  Continued advocacy of modern urban concepts, policy because of the dominant role of cities in generating integrated transport systems, within wide framework increases in national income and trade, and because of the of overall land use as well as fund support and private- growing number of the poor who live in urban areas. public partnerships (Plans, Design Plans, Project/Sub- projects, Investment support; urban impacts on cost.  Rapid motorization particularly impacts on the poor who usually Time, convenience and safety, international best spend more time in the streets whether for work, travel or practices) leisure. The urban poor are most affected by air pollution, suffer

the most from road accidents and depend most heavily on  Support and advocacy on the improvement of urban walking and public transport. transport and its management as well as the  In many of the regions cities and towns are increasingly development and establishment of use and transport experiencing severe levels of congestion due to rapid plans designed to optimize travel movements and motorization. Agencies are often weak institutions with little transport planning and management (meetings, effective authority. Many local institutions are not well prepared dialogues, workshops, public information) to face the problems presented by urban areas among which one of the most difficult is transport, and where external help  Advocacy on measures include the clear provision for is therefore most needed. the rights and responsibilities of pedestrians and cyclists in traffic law; training of police to enforce the  Relatively few cities have adequate land use and transport plans rights of NMT users; formulation of a national strategy designed to optimize travel movements and transport planning for NMT as a facilitating framework for local plans; and management . development of specific local plans as part of the  Many cities also have poor quality public transport services and planning procedures of municipal authorities; provision adopt policies that focus on private rather than public transport of separate infrastructure for movement and parking of services. bicycles where appropriate, and incorporation of

KEI in association with SKI and DCCD 7-66 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Concern Issues and Trends Indicative Area for Intervention (Results)

 The deteriorating traffic conditions throughout most of the standards for providing for cyclists, pedestrians, and region indicate that much more effort needs to be directed freight carts in new road infrastructure design towards improvement of urban transport and its management. (meetings, dialogues, workshops, public information).

 Needed major transport investments must be identified and developed to implementation stage by metropolitan authorities, taking into account the need for infrastructure management and service regulation.

 Public transport operations should also be concessioned or franchised competitively, against clearly specified and strictly enforced performance standards. The key role fulfilled by informal transit in many cities should be recognized and operators encouraged to compete for franchises.

 Transport's task is to ensure mobility of people and goods, not merely of motorized vehicles and more attention needs to be given to non-motorized transport (NMT).

 Not all of NMT can be accommodated on all roads or in all densely built up areas. A sustainable balance may require the localized ban on certain types of NMT for safety and traffic flow reasons.

6. Vehicle Emissions  Air pollution from vehicular sources need to be addressed as  Advocacy and adoption of an urban air quality action motor vehicles emit large quantities of carbon monoxide, plan. The development of comprehensive strategies hydrocarbons, nitrogen oxides, and other toxic substances such needs to incorporate (i) stricter emissions standards as fine particles and lead. Each of these, along with secondary for new vehicles, (ii) adoption of cleaner fuels including by-products such as ozone, can cause serious public health and use of alternative fuels, (iii) programs for inspection environment problems. The localized health consequences of air and maintenance of in-use vehicles, and (iv) pollution are severe. comprehensive transportation planning, traffic management and demand management measures to  Equally ominous is the rise in the transport sector's share of promote sustainable transport. These measures need total carbon dioxide emissions, which are directly linked to to be supplemented with specific initiatives regarding global-warming . The growth in motorization in Asia will result air quality monitoring, and improved vehicle in substantial increases in emissions and deteriorating air technology standards (System/Process institutionalized quality if mitigating actions are not taken. and maintained)

KEI in association with SKI and DCCD 7-67 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Concern Issues and Trends Indicative Area for Intervention (Results)

7. Regional  Increasing trade and cooperation among countries in the Asia  Advocacy and to the establishment Support Brunei Cooperation and Pacific region has made a significant contribution to their Darussalam-Indonesia-Malaysia-Philippines East development. As economies grow the opportunities also increase ASEAN Growth Area (BIMP-EAGA) Region as well as but to take advantage of these opportunities presented often United Nations plan on an Asian Highway (meetings, requires improved transport infrastructure and services. dialogues, conferences, public information) Unexploited opportunities for cooperation are to be found particularly in the relations between land-locked and sea-locked countries and their neighbors

 Actions may be required in a wide range of areas, such as transport logistics including improving the handling of transit traffic, the removal of regulatory and infrastructure barriers permitting vehicles of each country to move in the other, freight tracking systems, encouraging direct trade between regional ports/airports in neighboring countries, sharing expensive items of equipment such as aircraft, amalgamating national enterprises of uneconomically small scale into cooperative regional ventures, coordinating international infrastructure improvements so that works in both countries are completed simultaneously, or developing major transport hubs to serve several regions instead of each having their own. Improvements in maritime, rail and air services all have a role to play

8. Transport Safety and  Improvement of safety is an emerging issue that urgently  Support institutionalization of policy guidelines, system Security requires attention in the region's transport sector, and is for road safety and status of recommended priority particularly acute in the road sector. interventions in the fields of engineering, education, law enforcement and emergency medical services  It is estimated that in the Asia-Pacific region annual fatalities (System institutionalized). from road traffic accidents number about 500,000 and the

number of injuries exceed 20 million. The fatalities represent  Advocate and educate stakeholders on incorporating about 45% of the world road total, despite the fact that the road safety components in road sector operations region has only 16% of the world's vehicle population. (Trainings, Public Information) Continuing rapid motorization coupled with high accident rates suggests that these alarming totals will rise considerably further in coming years unless action is taken to address them.

 Another safety issue that is emerging concerns the carriage of dangerous goods and hazardous material by and land. There is a need for formal training in the carrying hazardous materials and cargoes and licensing of truck drivers.

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Concern Issues and Trends Indicative Area for Intervention (Results)

 Emergency services for both land and sea modes require training to respond to contingencies and incidents.

 Improvements in signaling and communications is primarily safety driven.

 Improvements in transport security are now recognized as a necessary and growing part of transport sector analysis and are expected to become a growing element of future lending operations. Passenger and bag screening measures being established at international and domestic terminals as well as urban mass transit and public bus transport. These measures will be a burden for many countries, and countries not having compliant systems and can be disadvantaged in terms of delays in clearance of their exports by importing countries and have further impacts on their attractiveness as investment locations

9. Multimodal Transport  increases in throughput are now increasingly constrained by  Advocate and pilot adoption of a multimodal "supply and Trade Logistics shortage of space on the landside, severe congestion on access chain approach to analyze transport system roads or, in a few cases, road networks that are unable to performance in support of trade and economic growth, support extensive movement of 40-foot containers. Distribution It considers how system performance and efficiency is by waterway, where available, or by rail, sometimes to inland affected by infrastructure bottlenecks as well as by container depots, has helped to ease the problem, but in some regulatory and procedural requirements imposed by cases the railway does not reach the port or has very limited modal agencies, other governmental bodies (e.g. capacity. customs), and private sector players such as freight forwarders and haulers (trainings, computer software  Efficiency in documentation clearance directly will play an demonstrations, procurement). increasingly important role and impacts on efficiency of

transport systems and infrastructure.  Coordinate and cooperate with other donors on  Improving multimodal transport and logistics will require better programs on Improving multimodal transport and methods of public private cooperation in planning and logistics, possibility of public private cooperation in implementation of diverse activities under different planning and implementation of diverse activities responsibilities. under different responsibilities (harmonized approaches based on best approaches and advocacy)  Solving these multimodal logistic obstacles to container and goods transport-whether by upgrading road or rail, improving transfer points, changing customs, inspection, and transshipment policy and procedures, or, Ultimately, by shifting more traffic to ports outside the main cities-will be an important issue in the medium term as the volumes of trade increase.

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Concern Issues and Trends Indicative Area for Intervention (Results)

10. Transport and the  Special mobility needs of the disabled and elderly are often  Advocacy of retrofit of existing facilities and-design of Disabled neglected in transport planning and design. new facilities should consider barrier free access for the aged and disabled (trainings and public  Both retrofit of existing facilities and-design of new facilities information). should consider barrier free access for the aged and disabled. Issues include wheelchair access to public transport vehicles: bus, rail, airplane (especially at small airports) taxi and mini buses, as well as terminal access at bus, rail, metro and airport locations. Curb ramps on pathways for wheelchairs, Braille markings and handrails are all important components of a strategy to accommodate mobility requirements.

11. New Technologies  Information technology (IT) is one area that warrants attention  Coordinate and cooperate with other donor for contribution to improving performance of the transport and communities on complementary and collaborative work road sector and economizing on the need for infrastructure on institutional capacity building work in road sector expansion. agency such as the DPWH and its RIMSS (institutional capacity building programs, harmonized system  Advances in this area have relevance for all modes. Improved applications, state of the art technologies deployed communications systems (mobile telephones, global positioning where funds allow these) system. and Internet) can reduce the empty running of trucks  Package and implement an institutional capacity and their immobilization in traffic jams, can facilitate tracking 'r building program component under a possible Road and security of containers, and expand the effective capacity of Sector Improvement Package. TA resources may be restricted channels and corridors. required to package and coordinate the scope of work  Smart cards for use of public transport can reduce fraud, enable requirements (Implementation and Investment Plan, adoption of fare structures that are better integrated between Project Proposal, ADB Appraisal and negotiation). the legs of a journey, and facilitate targeted subsidization of disadvantaged categories of the population.

 Improved management information systems cum geographic information systems, assembling and analyzing data on the past and current state of all sections of an infrastructure network, , and the maintenance interventions undertaken, can contribute substantially to better maintenance budgeting and allocation.

 IT can enhance road and rail safety by better accident reporting and improved signaling and communications.

 Electronic tolling of vehicles. in various forms. can be expected gradually 10 spread among sites where capacity constraints are most serious, initiating a fairer system of charging for infrastructure use.

KEI in association with SKI and DCCD 7-70 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

7.13 Monitoring Mechanism

7.13.1 Results Based Monitoring

98. The Philippine Government is bringing results management and monitoring into its mainstream activity by maintaining an interagency harmonization committee to oversee the implementation of the Paris Declaration commitments, and by strengthening systems for public expenditure management and performance budgeting to make the allocation of scarce public resources more efficient. The medium-term expenditure framework ensures that spending is “driven by strategic and policy priorities, disciplined by revenues.” Executive Order No. 366, which strengthens the monitoring of all government departments, agencies, and corporations, and requires them to complete strategic reviews, “is a move to transform the executive branch into a high-performing, results-oriented government from one that is saddled with bureaucratic overlaps and redundancies.” Important instruments include the organizational performance indicator framework, and sector effectiveness and efficiency reviews. Such efforts encourage agencies to improve service delivery in exchange for access to budget resources and provide the framework for results-based planning, monitoring, and evaluation in government agencies. ADB has access to outputs from these systems, which it will use to increase development effectiveness. No substantive changes have been made in the results framework of CSP 2005–2007.

KEI in association with SKI and DCCD 7-71 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

8. PREPARATIONS FOR THE ROAD DESIGN

8.1 Selection of Road Sections for Design in Phase 1

1. In accordance with the Terms of Reference (TOR), which in turn is based on a previous concept paper by DPWH, the road sections to be selected for Phase 1 of the project should: (1) provide maximum economic return for the investment; (2) cause minimum negative environmental and social impacts; (3) be suitable for asset preservation without requiring significant repairs, improvements or rehabilitation; (4) be reasonably well distributed between Luzon, Visayas and Mindanao; and (5) result in a total cost of work in the order of US$50 million in Phase 1. 2. DPWH provided a long list of 28 candidate road sections for Asset Preservation, distributed within different regions of the country. The DPWH likewise provided the Consultant initial HDM-4 calculations for the same road sections which were used by the Consultant as basis for the first selection according to criteria (1) and (3) above, i.e., based on the results concerning preliminary estimated economic return and improvements and/or rehabilitation costs, respectively. 3. Maximum economic return means that the total benefits should exceed the total costs by as many percentage as possible. The benefits include reduced vehicle operating costs and time costs, as well as savings in maintenance costs and repairs during the remaining lifetime for the road. It could also include indirect benefits due to (for example) economic development or increased tourism in the area of the road. 4. The costs include materials, equipment, labour and supervision for the works, plus damages caused by indirect environmental or social impacts (if any). Such impacts are less likely for the asset preservation work in Phase 1 since this work should not affect either the road width or the road alignment. Only the work as such, and later perhaps an increasing traffic volume, could then have such effects. The costs for significant improvements, repairs or rehabilitation (i.e. other works than just the asset preservation) should be as low as possible. However, it could only be entirely avoided for a few sections, according to the estimates on which the HDM-4 calculations were based. 5. After discussions with representatives from DPWH and ADB, the Consultant set the maximum for such costs to twenty (20) percent of the total costs for the maintenance work on each individual road section. For some sections, the costs for repairs/rehabilitation based on initial HDM-4 calculations had to be adjusted after the result of Consultants inspections. 6. Based on the above evaluations and criteria, as well as a roughly estimated total cost and the distribution within the country, a total of 8 road sections were tentatively selected and subsequently inspected. After the inspections and their results, the proposed final selection was discussed and approved by DPWH’s

KEI in association with SKI and DCCD 8-1 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Technical Work Group and by the Inter-Agency Steering Committee for the project. The selected 8 road sections and the comparison of Consultant’s findings and the previous HDM-4 results are shown in Table 8.1.1. 7. Although the selection was intended to be considered as ”final” and will be used as such for the design, it is based on approximate HDM-4 results and visual (although thorough) inspections. The final costs for the work on each section, and the total cost for all road projects were estimated based on the design results. To insure about the risk for large deviations, two other road sections have also been inspected and were kept as ”spare”. 8. Out of the 28 long list of road sections for asset preservation, 11 were originally shortlisted under Tranche 1 (including one section from Dumaguete North Road) but later reduced to 8, after combining two road sections for Butuan-Cagayan de Oro City-Iligan Road and two road sections for Bauang- Baguio road and deleting the section from Dumaguete North Road. That would leave 18 remaining road sections in the long list. Out of those 18 road sections, however, 5 were excluded due to the resulting low rates of return. Another 3 sections that appeared to be suitable for asset preservation (which remains to be certified, however), were set aside in case more funds would be made available for Phase/Tranche 1. Thus, only 10 road sections for asset preservation were left as candidates for Tranches 2 and 3, where they would have to compete with other 22 road sections requiring improvement or rehabilitation. 9. Table 8.1.2 shows the long list of road sections for asset preservation distributed to Tranche 1 for priority projects and the remaining to Tranches 2 and 3. On the other hand, Table 8.1.3 shows the longlist of road sections proposed for improvement or rehabilitation. 10. However, in the later part of negotiation with ADB, after cost estimates were distributed by Tranche, three (3) additional roads were accommodated for Tranche 1 under the ”Design-and-Build” scheme in view of the availability of excess programmed funds for Tranche 1 due to reduction of scope of civil works, since a significant length of sections (distributed among the 8 roads) were later found out to be already improved by the Regional and District Engineering Offices of the DPWH. The additional three (3) road sections for asset preservation under Tranche 1 are: 1) Dumaguete North Road (Manjuyod-La Libertad Section); 2) Dumaguete North Road (La Libertad-Vallehermoso Section); and 3) Butuan-Cagayan de Oro City-Iligan Road (Agusan del Norte Section), which was later separated from the whole Butuan-Cagayan de Oro City-Iligan Road project. Therefore, the remaining roads for asset preservation as candidates for Tranches 2 and 3 were again reduced to 7 roads. The total 11 road sections under Tranche 1 was divided into three (3) contract packages.

11. The map showing the location of road projects under Tranche 1 is presented in Figure 8.1-1.

KEI in association with SKI and DCCD 8-2 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 8.1.1: COMPARISON BETWEEN HDM-4 AND CONSULTANTS FINDINGS

KEI in association with SKI and DCCD 8-3 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 8.1.2 PROPOSED ASSET PRESERVATION PROJECTS

HDM-4 Recommendation Total Length Projects Region Province NPV/C Costs (PM) Ranking Remarks (km) Asphalt Overlay Reconstruction Good (km) (km) (km)

TRANCHE 1

Bauang-Baguio Road I La Union 21.84 12.83 4.99 4.02 18.25 134.30 6 1 CP-1 Bauang-Baguio Road CAR Benguet 17.21 15.58 - 1.63 3.65 78.77 18

2 Olongapo-Bugallon Road III Zambales 140.96 91.42 8.34 41.20 7.51 946.21 13 CP-2

3 Palo-Carigara-Ormoc Road VIII Leyte 22.89 20.77 - 2.12 3.97 100.81 17 CP-3 Daang Maharlika Road (Liloan-Naval Highway) 4 VIII Leyte 14.86 10.92 - 3.94 2.18 60.64 23 (Under Eastern Nautical Highway)

5 Iloilo-Capiz (Old Route) VI Iloilo 11.82 8.80 2.11 0.90 29.83 126.86 2 CP-4

Butuan-Cagayan del Oro City-Iligan Road X Misamis Oriental 21.19 17.11 3.47 0.61 51.95 375.89 1 CP-5 6 Butuan-Cagayan del Oro City-Iligan Road * Design XIII Agusan del Norte 16.16 9.84 5.55 0.77 12.26 212.17 10 (Agusan del Norte 1st Leg. District) and Built

7 Bukidnon-Cotabato Road XIII Cotabato 47.61 34.90 - 12.71 8.72 193.87 12 CP-6

8 Dipolog-Oroquieta City road IX Zamboanga del Norte 49.15 17.75 - 31.40 8.88 100.43 11 CP-7

Dumaguete North Road VII Negros Oriental 50.71 16.31 25.56 8.84 15.16 509.30 7

CP-8 9 Dumaguete North Road VII Negros Oriental 6.25 2.94 3.31 - 13.83 73.73 9 (Design and Built) Dumaguete North Road (Jct. Kabankalan- VII Negros Oriental 57.63 13.44 4.23 39.96 7.37 20 Negros)

T O T A L 478.27 272.61 57.56 148.10 183.56 2,912.98

TRANCHES 2 & 3

1 Bigaa-Plaridel via & Rd III Bulacan 22.08 10.00 3.11 8.97 14.98 123.08 8

2 Siquijor Circumferential Road VII Siquijor 71.80 51.32 13.88 6.60 5.99 503.26 21

3 Sindangan-Liloy Road IX Zamboanga del Norte 28.00 17.70 6.51 3.79 5.67 204.28 15

Daang Maharlika, (Sta. Elena- Daet- 4 V Camarines Norte 123.88 35.89 11.62 76.37 5.33 386.80 16 Pambuhan) (Lone District)

5 Dipolog-Sindangan-Liloy Road IX Zamboanga del Norte 82.05 70.83 7.84 3.38 3.02 478.09 19

6 Famy-Infanta-Dinahican Port Road IV-A Quezon 37.05 12.11 13.04 11.90 2.60 252.01 21

7 Manila-Batangas (Malvar-Lipa Road) IV-A Batangas 25.24 8.91 5.81 10.52 29.79 343.38 3

8 Iloilo-Capiz (Old Route) VI Iloilo 30.74 21.05 1.98 7.71 27.03 185.02 4

9 Palico-Balayan-Batangas Road IV-A Batangas 53.32 18.39 7.79 27.14 21.62 275.63 5

10 Toledo-Pinamungahan Road VII Cebu 26.74 24.61 1.91 0.22 2.41 160.60 22

11 Gapan-Fort Magsaysay Road III 24.43 8.88 11.42 4.13 1.21 274.40 24

12 Ormoc-Baybay-Southern Leyte Bdry. Road VIII Leyte 23.21 7.31 3.17 12.73 1.12 100.37 25

13 Palompon-Isabel-Merida-Ormoc Road VIII Leyte 77.76 24.15 0.76 52.85 0.96 137.32 26

14 Liloy-Ipil IX Zamboanga Del Norte 30.73 18.68 7.84 4.21 0.94 204.29 27

15 Ormoc-Baybay-Southern Leyte Bdry. Road VIII Leyte 67.16 31.50 - 35.66 0.85 159.29 28

T O T A L 724.19 361.33 96.68 266.18 123.52 3,787.82

KEI in association with SKI and DCCD 8-4 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Table 8.1.3 LONGLIST OF PROPOSED ROAD IMPROVEMENT PROJECT

Length Projects Province (km)

1 Bagac - Road Bataan 42.00

2 Bacolod Circumferential Road Negros Occidental 34.00

3 Caticlan - Malay - Libertad - Nabas Road Aklan 97.40

4 Villaba - Tabango - Calubian Road Leyte 67.10

Loay Interior Road, Loay-Carmen-Trinidad Road and Jct. Dat- 5 Bohol 62.28 am-Pilar-Alicia Road

6 Wright - Taft - Borongan - Guiuan Road Samar 220.19

7 Sto. Niño - Buluang Road Palawan 45.50

8 San Nicolas - Natividad San Quintin - Umingan - Guimba Road Pangasinan / Nueva Ecija 23.50

9 Guinhulngan - - Binalbagan Road Negros Oriental 37.90

10 Bacolod - Murcia DS - Benedicto - San Carlos City Negros Occidental 82.00

11 -Bani - Alaminos Road Pangasinan 55.00

12 San Carlos - Dumaguete Road Negros Occ. / Negros Or. 44.00

13 Guimaras Circumferential Road Guimaras 38.78

14 Albay West Coast Road Albay 42.09

15 Sto. Rosario - Matag - ob - Palompon Road Leyte 23.71

Ilocos Sur / Benguet / 16 Cervantes - Mangkayan - Abatan Road 83.00 Mt. Province

17 Mulanay - San Francisco Road Quezon 24.10

18 Bagong Silang - Capalonga Road Camarines Norte 22.00

19 Malinta - Baleno - Aroroy - Mandaon / Milagros - Balud Road Masbate 112.00

20 Toledo - Tabuelan - San Remegio Road Cebu 67.10

21 Mindanao East - West Lateral (Sta. Filomena - Ticlaan Section) Iligan / Bukidnon 75.00

22 Bayawan - Bais - Dawis - Panyabonan Road Negros Oriental 30.00

TOTAL 1,328.65

KEI in association with SKI and DCCD 8-5 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.1.2.1: Location of Roads Under Tranche 1

KEI in association with SKI and DCCD 8-6 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

8.2 Preliminary Work and Project Description

8.2.1 Contract Package 1

Lot 1.1: Bauang-Baguio Road Bauang-Baguio Road (2nd DEO, La Union and Benguet District)- km 258.92 to km 298.07, (Length = 39.15 kms inclusive of bridges) 12. The group that inspected the Bauang-Baguio Road conducted their preliminary inspection on this mountainous road section on 07 November 2008. Minor deviations on the existing PCCP road were found from the HDM-4 recommendation based on the Consultant’s findings. Damages caused by landslide and erosion were observed at km 284.82, km 286.52, km 288.70 and km 296.43. 13. No coordination meeting with concerned District Engineering Office could be arranged due to the fact that notice for coordination was given only to the Baguio Engineering District. Due to time constraint, the group proceeded with the inspection based on the information gathered from the Engineering District of Baguio City. 14. The 39.15 kms road project, including exception sections, is located in the Province of La Union, in Region 1, and Benguet province, in Cordillera Administrative Region (Figure 8.2.1.2). The road starts at Jct. Manila North Road in Bauang, La Union at km 258.92 and ends in Sablan, Benguet at km 298.07. The road traverses in a south-easterly direction passing the towns of Bauang, Naguilian, Burgos and Sablan. The first 15 km of the existing road project from Bauang passes through a flat terrain along Naguilian River with elevation ranging from 16 to 40m. The rest of the project road passes through a hilly to mountainous terrain with a gradual increase of elevation from 134 m to 1,472 m in Baguio. 15. The existing pavement comprises of predominantly asphalt concrete overlay surfacing on PCC pavement of 6.10 m width generally in bad to fair condition and needs mostly overlay and reconstruction of some badly damaged stretches. The 2nd District Engineering Office of Benguet informed that improvement of the road section from km 266.00 to km 274.50 is being implemented by their office and therefore considered exception to this project. The project road will consist of 30.90 km AC overlay, 80 m reconstruction at km 228.7 and exception of 8.17 km. Scope of Civil Works Asset Preservation: 50 mm thick AC Overlay; Length = 30.90 km, Width = 6.10 m Improvement of Shoulder, pavement markings, repair of distressed PCCP and miscellaneous works as needed Reconstruction: 50 mm thick AC overlay, 200 mm PCCP, 200 mm Aggregate Subbase; Length = 80 meters.

KEI in association with SKI and DCCD 8-7 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.1.2

KEI in association with SKI and DCCD 8-8 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Lot 1.2: Olongapo-Bugallon Road Olongapo-Bugallon Road (Ist and 2nd DEO, Zambales) – km 126.341 to km 267.30 (Length = 140.96 kms including bridges) 16. The Consultant Team together with ADB-PMO Engr. Soledad R. Florencio held coordination meetings on 5-6 November 2008 at the office of District Engineer Hercules C. Manglicmot, Zambales 1st DEO, and DE Edward G. Ramos, Zambales 2nd DEO, respectively, to ensure successful carrying out of the TA thru full assistance and cooperation by the concerned District Engineers. 17. After discussing related matters which included the provision of necessary data for the road section, the assigned maintenance personnel in the DEOs accompanied the TA team for the preliminary investigation to determine the prevailing road condition. It was noted that the proposed overlay sections as per HDM-4 recommendation were already overlaid with asphalt concrete with thickness ranging from 50 to 75 mm, predominantly in the 1st DEO. 18. The 140.96 km road project is located in , Region III particularly in the Province of Zambales. (Figure 8.2.1.3). The road starts in the roundabout of Kalaklan, Olongapo at km 126.341 traversing Zambales coastal in a northerly direction and ends at km 267.30 at the provincial boundary of Zambales and Pangasinan. It is situated along the western shores of Luzon Island and passes through flat terrain with elevations ranging from 7 m to 54 m. 19. The first 11.20 km road section is with PCCP surfacing with AC overlay in some isolated areas and the remaining sections comprise asphalt concrete surfacing with short sections of PCCP particularly at the town proper. The road carriageway width from the start at km 155 is 6.70 m with auxiliary lane in the Olongapo City center and the remaining section with 6.10 m width. The project road is under 1st and 2nd District Engineering Office of Zambales. It comprises of 65.55 km for overlay and an exception of 75.41 km. Scope of Civil Works Asset Preservation: 50 mm thick AC Overlay; Length = 54.24 km, Width = 6.10 m 100 mm thick AC overlay; Length = 2.94 km, Width = 6.70 m - 6.10 m 125 mm thick AC Overlay; Length = 8.37 km, Width = 6.70 m - 6.10 m Improvement of Shoulder, pavement markings, repair of distressed PCCP and miscellaneous works as needed.

KEI in association with SKI and DCCD 8-9 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.1.3

KEI in association with SKI and DCCD 8-10 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

8.2.2 Contract Package 2

Lot 2.1a: Palo-Carigara-Ormoc Road (1st DEO, Leyte, Region VIII) – km 915.19 to km 938.07, (Length= 22.88 kms inclusive of bridges) 20. The same group that inspected the Iloilo road section undertook the preliminary investigation of this road section on 14 November 2008. There was a minimal deviation from the HDM-4 recommendation and Consultants findings. It was observed that various road sections were severely damaged due to poor drainage system along the roadway. 21. The 22.88 km road project is located in Eastern Visayas, Region VIII, in the Province of Leyte under the 1st District Engineering Office (Figure 8.2.1.4). The road starts at km 915.19 in Palo town T-junction with Daang Maharlika highway, traversing in a westerly direction passing the town of Santa Fe and ends at km 938.07 in Alangalang municipality. The terrain of the project area is relatively flat to gently rolling with elevations ranging from 15 to 68 m. The existing pavement from start to km 916.10 is PCCP overlaid with 50mm AC in bad condition. From km 916.10 to km 931.56, it is PCCP surfacing and about a kilometer of the road section needs reconstruction. The road section from km 931.56 to km 933.15 was overlaid in 2006 observed to be in good condition and considered exception in the project. The remaining section from km 933.15 to km 938.079 is PCCP that requires AC overlay. Pavement width is 6.10 m in general. The project road will consist of 20.30 km AC overlay, 960 m reconstruction at km 919.0 and an exception of 1.62 km.

Scope of Civil Works Asset Preservation: 50 mm thick AC Overlay; Length = 20.30 km, Width = 6.10 m Improvement of Shoulder, pavement markings, repair of distressed PCCP and miscellaneous works as needed Reconstruction: 50 mm thick AC overlay, 200 mm PCCP, 200 mm Aggregate Subbase; Length = 960 meters.

Lot 2.1b: Daang Maharlika Road (Liloan-Naval Highway) (1st DEO, Leyte, Region VIII) – km 915.19 to km 934.36, (Length= 14.86 kms inclusive of bridges) 22. The same group inspected this section on 15 November 2008. The Consultants considered the entire PCCP road section for overlay. 23. The 14.86 km road project is situated in Eastern Visayas, Region VIII in Leyte Province under the 1st District Engineering Office (Figure 8.2.1.5). The road section starts at km 919.50 about 300 meters after the T-junction in Palo traversing in a due south direction passing the town of Tanauan and ends at km 934.36 in Tolosa at the boundary of Leyte 1st DEO. The existing pavement is entirely PCCP of 6.70 m width. The road passes through a flat terrain with

KEI in association with SKI and DCCD 8-11 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.1.4

KEI in association with SKI and DCCD 8-12 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.1.5

KEI in association with SKI and DCCD 8-13 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

elevations ranging from 3 to 36m except the last 1.85km where it is abutted by hill and in rolling terrain. Scope of Civil Works Asset Preservation: 80 mm thick AC Overlay; Length = 14.86 kms, Width = 6.70 m Improvement of Shoulder, pavement markings, repair of distressed PCCP and miscellaneous works as needed

Lot 2.2: Iloilo-Capiz Road (2nd DEO, Iloilo) – km 18.36 to km 55.96, (Length = 37.60 kms inclusive of bridges) 24. The TA Consultants together with ADB-PMO Engrs. Luis Paredes and Saidamen Ducol conducted the same tasks such as gathering pertinent data and discussing related matters with concerned District Engineering Office (DEO) personnel on 12 November 2008. 25. The 37.24 km road project is situated in , Region VI in Iloilo Province under 2nd District Engineering Office (Figure 8.2.1.6). The road starts in the DEO’s boundary at km 18.36 in Sta Barbara town traversing in a north direction passing the towns of Cabatuan, Janiuay, Badiangan and Lambunan, and ends at km 55.96 in Calinog town. The road passes through a flat terrain with elevations ranging from 6 to 59 m. The first 5.50 kms was widened from 2-lane to a 4-lane road in 2006. The remaining section still has 2-lanes AC pavement except a short section of PCCP from km 45.69 to km 46.98 where reblocking is on-going and being implemented by the 2nd DEO. 26. It was later found that the section from Km 6.520 to Km 18.356 was under the on-going project, thus, this was treated as exception. Only the section from Km 18.356 to Km 55.630 was included in the design with some stretches under exception. The project road will consist of 26.01 km AC overlay, 1.00 km reconstruction starting at km 22.50 and an exception of 11.26 km. Scope of Civil Works Asset Preservation: 50 mm thick AC Overlay; Length = 7.32 km, Width = 6.10 m 80 mm thick AC Overlay; Length = 15.20 km, Width = 6.10 m 100 mm thick AC Overlay; Length = 3.49 km, Width = 6.10 m Improvement of Shoulder, pavement markings, repair of distressed ACP/PCCP and miscellaneous works as needed Reconstruction: 100 mm thick AC overlay, 200 mm PCCP, 200 mm Aggregate Subbase; Length = 1000 meters

KEI in association with SKI and DCCD 8-14 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.1.6

KEI in association with SKI and DCCD 8-15 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Lot 2.3: Dumaguete North Road, 1st District (Manjuyod - La Libertad)

(1st DEO, Negros Or.) – km 50.742 to km 108.967, (Length = 58.23 kms inclusive of bridges)

27. The 58.23 km road project is located in Central Visayas Island, Region VIII, in the Province of Negros Oriental under the 1st District Engineering Office (Figure 8.2.1.7). The road starts at km 50.742 of the district engineering boundary in the town of Manjuyod, traversing in a northerly direction passing about four (4) towns and ends at km 108.967 in La Libertad municipality before approaching Pisong Bridge. The terrain of the project area is relatively flat to gently rolling along the coastal of Tanon Strait. The existing 2-lane pavement comprises of 27.50 km PCCP with 6.10-6.70m width and 30.73 km ACP having 6.10 m width. The DPWH’s 1st Engineering District has about 8.49 km on- going/scheduled road sections for improvement and which is considered an exception. The conceptual design of the project road will consist of 25.68 km AC overlay, 20.16 km reconstruction and an exception of 12.39 km. Scope of Civil Works (Per Conceptual Design) Asset Preservation: 50-100 mm thick AC Overlay; Length = 25.68 km, Width = 6.70 m Improvement of Shoulder, pavement markings, repair of distressed ACP/PCCP and miscellaneous works as needed Reconstruction: 230 mm PCCP, 200 mm Aggregate Subbase; Length = 20.16 km, width 6.70m

Lot 2.4: Dumaguete North Road, 1st District (La Libertad - Vallehermoso)

(1st DEO, Negros Or.) – km 108.967 to km 150.523, (Length = 41.56 kms inclusive of bridges) 28. The 41.56 km road project is located in Central Visayas Island, Region VII, in the Province of Negros Oriental under the 1st District Engineering Office (Figure 8.2.1.8). The road section is the continuity of Lot 2.3 at km 108.967 passing La Libertad and Guihulngan towns and ends at km 150.523 the provincial boundary in Vallehermoso municipality. It traverses in a north- easterly direction with relatively flat to gently rolling terrain. The existing surfacing consists of about 35.60 km PCCP with varying width of 6.10m-6.70m and about 5.96 km ACP of 6.10m width. The DPWH’s 1st Engineering District has about 1.80 km on-going/scheduled road sections for improvement and which is considered exception. The conceptual design of the project road will consist of 16.88 km AC overlay, 22.87 km reconstruction and exception of 1.80 km. Scope of Civil Works (Per Conceptual Design) Asset Preservation: 50-80 mm thick AC Overlay; Length = 16.88 km, Width = 6.70 m Improvement of Shoulder, pavement markings, repair of distressed ACP/PCCP and miscellaneous works as needed. Reconstruction: 230 mm PCCP, 200 mm Aggregate Subbase; Length = 22.87 km, width 6.70m

KEI in association with SKI and DCCD 8-16 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.1.7

KEI in association with SKI and DCCD 8-17 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.1.8

KEI in association with SKI and DCCD 8-18 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

8.2.3 Contract Package 3

Lot 3.1: Dipolog-Oroquieta City Road Dipolog-Oroquieta City Road (Ist and 3rd DEO, Zamboanga Del Norte, Region IX) – km 1798.00 to km 1847.89 (Length = 49.89 kms including bridges) 29. Coordination meetings were held on 19 November with DE Flavia M. Merilles of the First DEO and ADE Veronico O. Micarandayo of Third Engineering Districts, together with PMO-ADB Engr. James C. Soriano, before starting the site inspection of the road project. 30. The 49.890 km road project is situated in the Island of Mindanao, Region IX, in Zamboanga del Norte Province under 1st and 3rd District Engineering Offices. The road section starts at km 1798 in Rizal municipality, 1st DEO passing the towns of Pinan and Polanco, Dipolog city, and ends at km 1847.89 in Katipunan town, 2nd DEO (Figure 8.2.3.1). The project area consists mostly of rolling terrain with lowlands along its western coast. Elevations along the project road vary from 2 to 113 m. The existing pavement is entirely AC surfacing of 6.10 m width in fair to bad condition. The project road will consist of 20.68 km AC overlay and exception of 29.21 km. Scope of Civil Works Asset Preservation: 50 mm thick AC Overlay; Length = 6.90 km, Width = 6.10 m 80 mm thick AC Overlay; Length = 13.78 km, Width = 6.10 m Improvement of Shoulder, pavement markings, repair of distressed ACP and miscellaneous works as needed.

KEI in association with SKI and DCCD 8-19 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.3.1

KEI in association with SKI and DCCD 8-20 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Lot 3.2: Butuan-Cagayan de Oro City-Iligan Road (Misamis Oriental)

Butuan-Cagayan de Oro City-Iligan Road (Ist DEO, Cagayan de Oro) Km 1423.55 – Km1444.75 (Length = 21.19 kms including bridges) 31. A coordination meeting was held on 11 November 2008 at Cagayan de Oro City Engineering District with District Engineer (DE) Tita B. Rayo, Assistant District Engineer (ADE) Esperidion L. Amatong and various section heads; ADB- PMO Engr. Leandro S. Velasquez and the TA Consultants. 32. The 21.19 kms road project is situated in the Island of Mindanao, Region X, particularly in Cagayan de Oro City (Figure 8.2.3.2). The project road is located in a narrow coastal plain along the Macajalar Bay with elevations ranging from 2 to 18 m. The road section is under the Cagayan de Oro City Engineering Office that starts at km 1423.55 and ends at km 1444.75. The existing pavement is a four-lane PCC and some section of the inner lane with AC overlay. It is an undivided 2-lane each direction road except the section from km 1439.2 to km 1442.5 where a raised median island with varying width is installed. The project road will consist of 19.69 km AC overlay and exception of 1.50 km. Two options are to be considered which are re- blocking or by using geotextile with AC overlay. The latter option has lower construction cost and connotes higher time saving as compared to re-blocking. The rest of the stretch is to be overlaid after resealing of joints. Scope of Civil Works Asset Preservation: 50 mm thick AC Overlay; Length = 2.33 km, Width = 6.70 m x 2 80 mm thick AC Overlay; Length = 11.14 km, Width = 6.70 m x 2 100 mm thick AC overlay; Length = 6.22 km, Width = 6.70 m x 2 Improvement of Shoulder, pavement markings, repair of distressed PCCP and miscellaneous works as needed

Lot 3.3: Butuan-Cagayan del Oro City-Iligan Road (Agusan del Norte) Butuan-Cagayan de Oro City-Iligan Road (Agusan del Norte) (Butuan City, CARAGA Region) Km 1232.91 – Km 1265.00 (Length = 32.09 kms including bridges, with exceptions). 33. The 32.09 kms project road is situated in the island of Mindanao, Region XIII (CARAGA region) (Figure 8.2.3.3). It starts at km 1232.91 in Butuan city junction with the Pan-Philippine Highway, now known as the Philippine-Japan Friendship Highway passing the towns of Buenavista and Nasipit, then ends at km 1265.00 in Aclan, Carmen. The first road section of about 15.54 kms with varying travel width from 6.10m to 12.60m, is envisaged as a 4-lane concrete pavement undivided dual carriageway in the city proper of Butuan. There are on-going road construction in this first section under the Butuan City Engineering District and therefore considered the first section as exception in the project. The remaining concrete surfacing in the outskirt of Butuan up to Carmen municipality under Agusan del Norte District Engineering Office is a 2- lane, 6.10m width carriageway and considered for AC overlay. The alignment traverses a westerly direction in a relatively flat terrain. The project road will consist of 16.42 km AC overlay and exception of 15.66 km.

KEI in association with SKI and DCCD 8-21 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.3.2

KEI in association with SKI and DCCD 8-22 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.3.3

KEI in association with SKI and DCCD 8-23 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Scope of Civil Works Asset Preservation: 80 mm thick AC Overlay; Length = 16.42 km, Width = 6.70 m Improvement of Shoulder, pavement markings, repair of distressed PCCP and miscellaneous works as needed

Lot 3.4: Bukidnon-Cotabato Road (2nd DEO, Cotabato Cotabato, Region XII) Km 1608+000 – Km1655+610. (Length = 49.89 kms including bridges) 34. Coordination Meeting was held on 13 November with DE Leonardo G. Paulican of Second Engineering District, Bukidnon and Chief of Maintenance Section Ramon G. Quinco of Second Engineering District at Midsayap, North Cotabato. The meeting was attended by ADB-PMO Leandro S. Velasquez and the TA Consultants. 35. Road slip was observed at km 1608.600 which affect the shoulders on both sides of the road, but will eventually damage a portion of the pavement if not given attention. A portion of about 200 meters need reconstruction of the said area including the slope protection and the headwall of the drainage structure crossing the road. According to the DEO, proposal regarding the slip portion was already submitted to the DPWH Central Office through the regional office. Later, this was confirmed by the Regional Director of Region XII in his letter dated February 19, 2009 that the stretch between Km 1608.300 to Km 1608.800 is proposed for rehabilitation this CY 2009, thus, this was considered an exception to the project. 36. The 47.610 km road project is situated in the Island of Mindanao, Region XII, in North Cotabato province under the 1st District Engineering Office passing the municipalities of Carmen and Kabacan (Figure 8.2.3.4). It starts at km 1608.00 in Carmen town adjoining Sayre Highway and ends at km 1655.61 in the T-junction connecting the Davao-Cotabato Rd (Jct Digos-Cotabato Sect) in Kabacan. It traverses in a south-westerly direction from the start up to km 1630.00 then turns in south-easterly direction up to the end. Terrain is rolling to hilly with elevations varies from 274 to 372m. The existing pavement in the first 4 kms is asphalt concrete and the rest is PCCP surfacing with some sections overlaid with AC. The pavement width is 6.70 m except for the 3 km of 4-lane between km 1644.00 and km 1647.00, having a 13.40 m width. The project road will consist of 38.11 km AC overlay and exception of 9.50 km. Scope of Civil Works Asset Preservation: 50 mm thick AC Overlay; Length = 35.28 km, Width = 6.70 m 50 mm thick AC Overlay; Length = 2.83 km, Width = 13.40 m Improvement of Shoulder, pavement markings, repair of distressed ACP/PCCP and miscellaneous works as needed.

KEI in association with SKI and DCCD 8-24 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

Figure 8.2.3.4

KEI in association with SKI and DCCD 8-25 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

8.3 Conditions of Bridges 37. The bridges that are along the road projects under Tranche 1 in general, are passable and in good to fair condition. Repair works needed are basically minor like a few cracks here and there where the remedial measures can be incorporated in the contemplated improvement of the road with an asphalt overlay. 38. However, there are some steel bridges where corrosion has started to affect some members. This will need immediate attention to arrest any further development of corrosion. Normal maintenance work (e.g. painting) will suffice to prolong the service life of these steel bridges.

8.4 Summary of Tranche 1 Road Package 39. The selected national roads for asset preservation in Tranche 1, divided into three (3) packages are presented in Table 8.4.1.

Table 8.4.1 ADB TA 7093-PHI - PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE I #REF! LENGTH CP NO. NAME OF ROAD PROVINCE REGION WORK DESCRIPTION KM. (1) (2) (3) (4) (5) (6)

30.9 km AC Overlay LOT 1.1 - BAUANG - BAGUIO ROAD 30.978 LA UNION/ BENGUET I and CAR 80 m reconstruction 8.17 km exception CP - I 54.24 km for 50 mm thick AC Overlay LOT 1.2 - OLONGAPO - BUGALLON 65.549 ZAMBALES 3 2.94 km for 100 mm thick AC Overlay ROAD 8.37 km for 125 mm thick AC Overlay

LOT 2.1a - PALO - CARIGARA - 20.3 km for 50 mm thick AC Overlay ORMOC ROAD AND LOT 2.1b - 36.120 LEYTE 7 960 m for reconstruction DAANG MAHARLIKA ROAD (Liloan- 1.62 km exception Naval Highway) 7.32 km for 50 mm thick AC Overlay 15.2 km for 80 LOT 2.2 - ILOILO - CAPIZ ROAD 27.010 ILOILO 6 mm thick AC Overlay 3.49 km for 100 mm thick AC CP - II Overlay 11.26 km exception LOT 2.3 - DUMAGUETE NORTH 25.68 km for 50-100 mm AC Overlay ROAD, 1st District, (Manjuyod - La 45.482 NEGROS ORIENTAL 7 20.16 km for reconstruction Libertad) Design and Build 12.39 km exception LOT 2.4 - DUMAGUETE NORTH 16.88 km for 50-80 mm AC Overlay ROAD, 1st District, (La Libertad - 39.756 NEGROS ORIENTAL 7 22.87 km for reconstruction Vallehermoso) Design and Build 1.8 km exception 6.9 km for 50 mm thick AC Overlay LOT 3.1 - DIPOLOG - OROQUIETA ZAMBOANGA DEL 20.682 9 13.78 km for 80 mm thick AC Overlay CITY ROAD NORTE 29.21 km exception 2.33 km for 50 mm thick AC Overlay LOT 3.2 - BUTUAN - CAGAYAN DE 11.14 km for 80 mm thick AC Overlay ORO CITY - ILIGAN ROAD (Misamis 19.693 MISAMIS ORIENTAL 9 6.22 km for 100 mm thick AC Overlay Oriental) 1.5 km exception CP - III LOT 3.3 - BUTUAN - CAGAYAN DE 16.42 km for 80 mm thick AC Overlay ORO CITY - ILIGAN ROAD (Agusan del 16.421 AGUSAN DEL NORTE 9 15.67 km exception Norte), Design and Build 35.28 km for 50 mm thick AC Overlay (6.7 m width) LOT 3.4 - BUKIDNON - COTABATO 38.110 NORTH COTABATO 12 2.83km for 50 mm thick AC Overlay ROAD (13.4 m width) 9.5 km exception TOTAL 339.801

KEI in association with SKI and DCCD 8-26 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

8.5 Updated Unit Rates

40. The unit rates (refer to Table 8.5.1) are based on the material cost for the first quarter of 2009. The methods adopted and the bases how these unit costs were arrived at are discussed below:

 Bituminous Concrete Surface course a. The unit cost of the processed material, that is the material processed by the contractor at quarries and delivered to project site is first determined considering the components such as asphalt cement Pen. 60-70, crushed aggregate, fine aggregate, filler, etc, considering the equipment and their rental rates so with manpower and their corresponding hourly rates as presecribed by law. b. The direct unit price of the item is then determined by using the processed unit cost of the material for a certain quantity per tonne. The equipment and manpower to be used is determined to produce an output per square meter to arrive at the direct unit cost. c. The total unit price of the pay item is determined by adding to the direct unit price, the indirect cost that comprise the contractor’s profit, overhead, contingency and miscellaneous plus the 12% vat and dividing the sum by the total quantity of the item.

KEI in association with SKI and DCCD 8-27 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

TABLE 8.5.1 UPDATED UNIT RATES FOR THE EIGHT PROJECTS OF ASSET PRESERVATION (Total Unit Cost) CP‐1CP‐2 CP‐3A CP ‐3B CP‐4 CP‐5CP‐6CP‐7 PAY DESCRIPTION UNIT ITEM Bauang-Baguio Olongapo- Palo-Carigara- Daang Maharlika Iloilo-Capiz Butuan-Cagayan de Bukidnon- Dipolog-Oroquieta Road Bugallon Road Ormoc Road Road (Old Route) Oro City Road Cotabato Road City Road

101(3)a REMOVAL OF EXISTNG AC PAVEMENT sq.m. ‐ 45.85 ‐ 47.46 48.30 46.05 ‐ 46.61

101(3)b REMOVAL OF EXISTNG PCC PAVEMENT sq.m. 410.07 ‐ 413.23 ‐ ‐ ‐ ‐ ‐ CRACK AND SEAT OF EXISTING PCCP 101(3)c sq.m. 716.98 687.43 733.63 735.97 737.83 703.75 741.83 695.10 (with asphalt leveling course) 105 SUBGRADE PREPARATION sq.m. 28.19 27.38 28.38 28.38 28.91 27.51 28.78 27.85

200 AGGREGATE SUBBASE COURSE cu.m. 635.12 606.84 641.28 ‐ 654.18 ‐ ‐ ‐

202 CRU SHED AGGREGATE BASE COURSE cu.m. 1,109.09 817.14 954.14 957.66 973.63 830.63 ‐ ‐

300(2) AGGREGATE SURFACE COURSE cu.m. ‐ 836.83 ‐ ‐ 994.68 850.68 1,179.27 862.56

301(1) BITUMINOUS PRIME COAT, CUT‐BACK ASPHALT MC‐70 tonne ‐ 61,680.02 68,291.43 68,291.43 66,932.87 64,772.38 66,062.92 ‐

302(2) BITUMINOUS TACK COAT, EMULSIFIED ASPHALT SS‐1 tonne 60,891.04 59,590.02 66,159.17 66,159.17 64,784.42 62,671.01 63,918.19 58,604.81 BITUMINO US CONCRETE SURFACE WEARING COURSE, 310(1)a sq.m. 640.99 603.83 673.82 678.11 667.69 633.63 677.53 602.61 HOT LAID (50mm thick) BITUMINOUS CONCRETE SURFACE WEARING COURSE, 310(1)b sq.m. 1,023.21 963.81 ‐ 1,082.59 1,065.85 1,011.50 ‐ 961.83 HOT LAID (80mm thick) BITUMINOUS CONCRETE SURFACE WEARING COURSE, 310(1)c sq.m. ‐ ‐ ‐ ‐ 1,368.08 ‐ 1,387.57 ‐ HOT LAID (100mm thick) BITUMINOUS CONCRETE SURFACE (LEVELING) COURSE, 310(2) sq.m. ‐ ‐ ‐ ‐ 568.05 ‐ ‐ ‐ HOT LAID (50mm thick) 311(1)b PCC PAVEMENT (PLAIN), 200mm thick sq.m. 1,096.58 ‐ 1,033.15 ‐ ‐ ‐ ‐ ‐

SPL 312 SEALING OF CRACKS AND JOINTS ON EXISTING PCCP l.m. 109.10 110.70 114.34 114.34 114.58 110.09 113.15 106.72

SPL 313 PATCHING OF POTHOLES sq.m. 1,283.01 1,227.02 1,344.19 1,352.49 1,334.63 1,270.39 1,352.71 1,211.08 REFLECTORIZED THERMOPLASTIC PAVEMENT MARKING 612(1) sq.m. 864.06 903.09 859.42 859.42 874.86 858.85 869.80 866.57 (White) REFLECTORIZED THERMOPLASTIC PAVEMENT MARKING 612(2) sq.m. 871.26 910.29 866.62 866.62 882.06 866.05 877.00 873.77 (Yellow) 715(8)1 GEOTEXTILE PAVING FABRIC WITH GLASS sq.m. 655.40 670.82 653.13 653.13 655.58 656.76 654.60 ‐ REINFORCEMENT

KEI in association with SKI and DCCD 8-28 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

8.5 Updated Unit Rates for Periodic Road Maintenance 41. The following are the basis for derivation of updated unit rates for periodic road maintenance by item of work:  Crushed Aggregate Base and Surface Courses a. The unit cost of the processed material is first determined, considering the location as provided by the material source map. b. The cost of processing using the necessary equipment and manpower including the cost of the hauling distance from the quarry to the project site is determined. c. The total unit price is determined as in paragraph 40c above.  Removal of Existing AC Pavement a. The unit price is determined by considering the cost of equipment rental based on the Association of Carriers and Equipment Lessors, (ACEL), Inc., Year 2006. And the labor rates which comprise basic wage and monthly fringe benefits based on the respective Regional Wage Orders under the National Wages and Productivity Commmission of the Department of Labor and Employment (DOLE). b. The unit price of the pay item is arrived at by adding the total cost of equipment rental corresponding to their hourly rental rates and the total cost of manpower with their corresponding hourly rates by dividing it with the targeted output per hour.

c. The total unit price is as in paragraph 40c above.

8.6 Maintenance Options Considered 42. The following maintenance options are shown by comparisons, in order to choose from which option is the most cost-effective. The comparisons are intended to apply to one and the same road section. (a) Concrete Pavements:

Concrete re-blocking and AC overlay. The work will consist of breaking and removing the damaged blocks, then placing a new PCC pavement before AC overlay. The scope of this work may consist of the following: (1) Breaking the affected concrete blocks into pieces. (2) Removing the broken pieces and disposing the debris. (3) Replacing the existing sub-base if they failed to meet required tests. (4) Subgrade preparation if sub-base passed the required tests. (5) Paving with new concrete for the removed portion with provision of steel bar ties between the new and the old pavements. (6) Application of Tack Coat. (7) Paving of AC for the whole section scheduled for AC overlay. Using paving fabric and AC overlay - for a stretch of existing concrete pavement with longitudinal and transverse cracks but no base failures,

KEI in association with SKI and DCCD 8-29 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

provision of paving fabric instead of re-blocking, has a lower construction cost, less traffic congestion and has higher time savings.

 Fracturing PCC pavement before doing AC overlay. The following are the recommended techniques in fracturing PCC pavement: . Break and Seat. Consists of breaking a Jointed Reinforced Concrete Pavement (JRCP) into pieces larger than about one foot (0.30m), rupturing the reinforcement or breaking its bond with the concrete and seating the piece firmly into the foundation. Seating typically consists of several passes of a 35 to 50 tones rubber-tired roller over a broken slab. . Crack and Seat. Consists of cracking a Jointed Plain Concrete Pavement (JPCP) into pieces typically one to three feet (0.30 m to 0.91m) in size and seating the pieces firmly into the foundation. Seating typically consists of several passes of a 35 to 50 tones rubber-tired roller over a crack slab. . Rubblized and Compact. Consists of completely fracturing any type of PCC slab (JRCP, JPCP, or CRCP) into pieces smaller than one foot (0.30m) and then compacting the layer, typically with two or more passes to be undertaken before placing the AC overlay. The scope may consist of the following: (1) Removing and replacing areas that would result in uneven support after fracturing. (2) Making subdrainage improvements, if any. (3) Breaking and seating, crack and seating or rubblizing the PCC slab and rolling to seat or compact. (4) Constructing widening, if needed. (5) Applying a tack coat or prime coat. (6) Placing the AC overlay (including a reflection crack control treatment, if needed 43. The objective of fracturing PCC slab by break and seat, crack and seat and rubblizing techniques are used to reduce the size of PCC pieces to minimize the differential movements at existing cracks and joints, thereby minimizing the occurrence and severity of reflection cracks. b) AC Pavements:

 Reconstruction of the existing pavement consists of breaking and removing of existing pavement by using mechanical equipments and disposing the debris or removing the desired depth of layer by use of roto milling machine.

 Using Paving Fabric with leveling course and AC overlay. 44. The maintenance options for Asset Preservation are determined and presented in Annex 4. To arrive at the costs it is determined by using the corresponding unit cost of the option and multiplied by the area of the road in consideration. 45. This manner of estimating, however, is only for approximation to obtain the total cost of the project and probably for evaluation purposes. For detailed cost

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estimates as basis of bidding, it is the standard way to calculate the quantities of the pay items and the corresponding unit prices to arrive at the construction cost of the package. The unit prices tabulated at Table 8.5.1 above are used for the cost estimation of the corresponding road packages.

8.7 Recommended Maintenance Schemes 46. The different maintenance schemes by type of existing pavement, considered for the 8 road sections under Tranche 1, and the sample unit costs for each maintenance o schemes are herewith summarized in Table 8.7.1 below: Table 8.7.1 SUMMARY OF SCHEMES

Scheme Description Cost/sq.m. Remark (PhP) A2 PCCP Reconstruction with AC Overlay, 2,364.27 Existing PCCP for 50mm thick Bauang-Baguio Road

A3 AC Overlay 50 mm thick with Paving 960.51 Existing PCCP, Fabric Bauang-Baguio Road

A3-1 Crack and Seat and AC overlay, 50 mm 899.52 Existing PCCP, thick Bauang-Baguio

A5 AC Overlay on existing PCCP, 50mm 838.27 Existing PCCP, thick Bauang-Baguio

B1 Reconstruction of existing AC 1,228.21 Existing ACP, Pavement, 50 mm thick Iloilo-Capiz Road

B4 AC Overlay, 50mm thick On existing 775.20 Existing ACP, ACP Iloilo-Capiz Road

47. From the above schemes considered, the following options depending on the existing condition of pavement, are recommended:  Scheme A2 - PCCP Reconstruction with AC Overlay when the pavement upon investigation shows severe deterioration, severe cracking and settlement. Reconstruction for asset preservation is limited only to 20% in cost of the total project cost.  Scheme A3 - AC Overlay with Paving Fabric AC Overlay. To be used when longitudinal and transverse cracks are appearing but no base failure. AC Overlay with Paving Fabric – As mentioned in the pavement design is one of the measures in controlling reflective cracking. It mitigates surface reflective cracking problems at the same time the fiber acts as waterproofing membrane in sealing crack areas against possible water intrusion which will weaken the road foundation. Installation is faster and that overlay can be done even in lean hours in the night to avoid traffic problems.  Scheme A3-1 - Crack and Seat and AC overlay – Cracking and seating is another way of preventing reflective cracking in the hot mix asphalt concrete

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overlay over the concrete pavement. The existing characteristic of the pavement determines the required impact energy for a particular cracking pattern. The said characteristics may include the strength of the slab, the joint spacing, extent of the damage or disintegration, and joint condition.  Scheme A5 - AC Overlay on existing PCCP - when the existing condition is fair, that is when alligator cracking is low to medium, no rutting which indicates that the existing pavement is still stable.  Scheme B1 - Reconstruction of existing AC Pavement - It is dictated by the following conditions: High severity of alligator cracking, stripping of the surface, excessive rutting and base deterioration.  Scheme B4 – AC Overlay on existing ACP – when the pavement condition is still fair, low to medium alligator cracking and the base shows no deformation or rutting.

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9. PAVEMENT DESIGN OF PHASE 1 OF THE PROJECT

9.1 Introduction 1. In accordance with the Terms of Reference (TOR) of the Technical Assistance (TA), the Consultants study team selected and designed eight (8) national road sections for specific periodic maintenance works and three (3) national roads for ”design-and-build’ scheme based on maximum economic return and minimum negative environmental and social impacts. The road sections were selected from the long list provided by the DPWH. Periodic maintenance, as defined in the concept paper prepared by DPWH, involves asphalt overlay and re-blocking of cracked concrete pavement.

9.2 Design Approach for the Selected Road Sections

9.2.1 Base Data for Design 2. On the basis of the updated traffic data provided by Planning Service of DPWH, the pavement investigation conducted by independent Geotechnical companies hired by the Consultant and other relevant surveys, the Consultants have designed the most cost-effective type of periodic maintenance works following the HDM-4 guidelines in Table 9.2.1. Table 9.2.1: Classification and Description of Road Works in HDM-4

Works Work Class Works Type Works Activity Category

Routine (Pavement) Patching, edge-repair, crack sealing, spot- or Surface regraveling, shoulders repair, etc. Routine Maintenance Drainage Culvert repairs, clearing side drains, etc. Routine Miscellaneous Vegetation control, line-markings, signs, etc. Preventive Treatment Load transfer, dowel retrofit, joint sealing, etc.

Asset Resurfacing Surface dressing, slurry seal, regraveling, slab Preservation replacement, diamond grinding, etc. Periodic Maintenance Asphalt concrete overlay, mill and replace, Rehabilitation bonded concrete overlay, un-bonded concrete overlay

Reconstruction Partial reconstruction, full pavement reconstruction

Special Emergency Clearing debris, repairing washout/ subsidence, traffic accident removal, etc. Widening Partial widening, lane addition

Realignment Horizontal and vertical geometric Improvement improvements, junction improvements Network Off-carriageway Shoulders addition, shoulders upgrading, lane Development addition, side drain improvement, etc. Upgrading Upgrading by changing the surface type Construction New Section Dualization of an existing section, new section (link)

3. It was concluded that the most cost-effective approach for asset preservation was to optimize the use of existing pavement structures by adding layer (AC overlay) to increase its structural strength and to remedy functional deficiency.

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This approach requires the evaluation of the existing pavement and determining (a) the section for reconstruction and (b) the overlay section. 4. As part of the Philippine Government’s assistance to the TA, the Planning Services extended their full assistance in gathering related documents and the respective District Engineering offices furnished the Consultants substantial data of the existing roads which was reflected in the contract drawing. 5. The Consultants hired the services of Renardet S.A Consulting Engineers for the roughness survey at 100 meters interval on both direction of the travelway which was completed on March 12, 2009. The roughness index has been used in the economic evaluation of each road. Pavement investigation at 500 meters interval involving measurement of pavement layer thicknesses, determination of subgrade CBR and taking core samples of ACP/PCCP for strength test was carried out by three (3) independent geotechnical companies to complement available information already provided by the DPWH. The investigation was completed on March 7, 2009 and the results were used in the pavement analysis. The traffic data obtained from DPWH’s Planning Services have been used to estimate the amount of traffic and the cumulative number of equivalent standard axles that will pass through the road over the 10 years design life. 6. All the data collected was tabulated and analyzed for each project road to depict the variation in conditions along the project roads. Homogenous sections within which the various parameters are relatively uniform have been identified and defined the specific pavement treatment. 7. A separate report for roughness survey, pavement investigation and pavement design will be submitted to the Bureau of Design (BOD), DPWH and the ADB.

9.2.2 Design Considerations 8. Two major types of pavement common in the Philippines are: (1) Rigid Pavement, usually consisting of a prepared roadbed/subgrade underlying a layer of subbase and a concrete pavement slab, and (2) Flexible Pavement, generally consisting of a prepared roadbed/subgrade underlying layers of subbase, base and a bituminous surface course (see Figure 9.2.2.1 below). 9. The essential difference between the two types of pavement is the manner in which they distribute the load over the subgrade. Rigid Pavement, because of concrete rigidity and stiffness, tends to distribute the load over a relatively wide area of subgrade. Flexible pavement, inherently built with weaker and less stiff material, does not spread load as well as concrete. It usually requires more layers and greater thickness for optimally transmitting load to the subgrade. 10. The major factor in the design of rigid pavement is the structural strength of concrete. For this reason, minor variations in subgrade strength have little influence upon the structural capacity of the pavement. Rigid pavement carries loads primarily by flexure of pavement slab and reaction of the subgrade. In flexible pavement, the major factor in the design is the combined strength of the different layers. It carries loads by spreading stresses through successive layers of decreasingly selected materials until the stresses have alternated to levels which can be tolerated by the in-situ soil.

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Figure 9.2.2.1: Two Types of Pavement in the Philippines

9.3 Design Methodology

11. The detailed design methodology and pavement design for the eight (8) road sections which forms part of the pavement design report mentioned in paragraph 7 will be submitted separately.

12. In brief, below is the outline in determining the design thickness of rigid and flexible pavement structures for reconstruction.

A. Design Requirements or Input Data for Rigid Pavement (1) Roadbed Soil

a. Resilient Modulus of Subgrade, MR b. Modulus of Subgrade Reaction, k

c. Composite Modulus of Subgrade Reaction, k

(2) Design Traffic Load, W18 (3) Reliability, R (4) Design Serviceability Loss, PSI

(5) Drainage Coefficient, Dd (6) Load Transfer Coefficient, J

(7) Overall Standard Deviation, So

(8) Concrete Modulus of Rupture, S’c

(9) Concrete Modulus of Elasticity, Ec

B. Design Requirements or Input Data for Flexible Pavement (1) Roadbed Soil

a. Resilient Modulus of Subgrade, MR

(2) Design Traffic Load, W18 (3) Reliability, R (4) Design Serviceability Loss, PSI

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(5) Drainage Coefficient, m (6) Structural Layer Coefficient, a

(7) Overall Standard Deviation, So

C. Design Chart for Rigid and Flexible Pavement The thickness of rigid pavement has been determined using Figure 9-1 and the value of Structural Number (SN) of flexible pavement has been determined using Figure 9-2.

13. An asphalt concrete (AC) overlay is a feasible rehabilitation over existing flexible or rigid pavement except when the condition of the existing pavement dictates substantial removal and replacement, and excessive surface deformation. In this project, a minimum of 50mm AC overlay is adopted to delay the reflection of stress cracks thus extending the life service of the overlay. Below is the outline of pavement rehabilitation using AC overlay over existing pavement.

A. Design Requirements or Input Data for AC Overlay The required overlay thickness is determined by obtaining first the following: (1) Measurement of the existing pavement structures (2) Analysis of Traffic data (3) Pavement investigation

B. Thickness Design for AC Overlay (1) The required thickness of AC Overlay over Flexible Pavement to increase structural capacity to carry future traffic is determined by the following equation:

SNol = ao1 * Do1 = SNf – SNeff

Do1 = (SNf – SNeff)/ ao1 Where:

SNol = Required overlay structural number a = Structural coefficient for the AC overlay o1 Do1 = Required overlay thickness, inches

SNf = Structural number required to carry future traffic

Effective structural number of the existing SN = eff pavement

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(2) The thickness of AC overlay over Rigid Pavement to increase structural capacity to carry future traffic demand is determined by the following equation:

Do1 = A(Df – Deff)

Where:

Do1 = required thickness of AC overlay, inches A = factor to convert PCC thickness deficiency to AC overlay thickness

Df = slab thickness to carry future traffic, inches

Deff = effective thickness of existing slab, inches

14. The A factor, which is a function of the PCCP thickness deficiency, is given by the following equation.

A = 2.2233 + 0.0099 (Df – Deff)² - 0.1534 (Df – Deff)

Df is determined using Chart 9-1 using the properties of existing PCCP

Deff from Investigation of existing PCC Pavements

15. The effective thickness of the existing slab (Deff) is computed from the following equation:

Deff = Fjc * Fdur * Ffat * D Where: D = existing PCC slab thickness, inches

Fjc = joints and cracks adjustment factor

Fdur = durability adjustment factor

Ffat = fatigue damage adjustment factor

(3) The thickness of AC overlay over combined Flexible and Rigid Pavement to increase structural capacity to carry future traffic demand is determined by the following equation:

Do1 = A(Df – Deff) Where:

Do1 = required thickness of AC overlay, inches A = factor to convert PCC thickness deficiency to AC overlay thickness

Df = slab thickness to carry future traffic, inches

Deff = effective thickness of existing slab, inches

16. The A factor, which is a function of the PCCP thickness deficiency, is given by the following equation.

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A = 2.2233 + 0.0099 (Df – Deff)² - 0.1534 (Df – Deff)

Df is determined using Chart 9-1 using the properties of existing PCCP

Deff from Investigation of existing PCC Pavements

17. The effective thickness of the existing slab (Deff) is computed from the following equation:

Deff = Fjc * Fdur * Dp + Fac * Da/2.0 Where:

Dp = existing PCC slab thickness, inches

Da = existing AC slab thickness, inches

Fjc = joints and cracks adjustment factor

Fdur = durability adjustment factor

Fac = quality adjustment factor

9.4 Summary of Designed Road Sections 18. The eleven (11) national road sections designed for periodic maintenance is summarized in Table 9.4.1 which shows the length of the road for overlay, reconstruction and exception section.

9.5 Design Plans and Typical Road Sections 19. The asset preservation plans is presented in a straight line diagram showing the existing road conditions and the proposed periodic maintenance as shown in Figure 9.5-1 while the typical road section for reconstruction and rehabilitation of the existing pavement is shown in Figure 9.5-2. The plans was presented and discussed with the Bureau of Design and the Technical Working Group of the DPWH on Dec.16, 2008, and found acceptable. The arrangement of the title block shown in the plans is in accordance to D.O. No. 50, series of 2002. 20. The complete set of contract plans which forms part of the Bidding Documents will be submitted to ADB and DPWH as separate document. Together with other reports such as a) unit price analysis b) roughness survey c) pavement investigation d) pavement design e) other supporting related documents.

9.6 Summary of Cost Estimates by Road Section 21. On the basis of the unit cost estimates by type of maintenance works given in Chapter 8 of this report and the above design considerations, the updated total cost estimates by road section under Tranche 1 is summarized in Table 9.6.1 below. The detailed cost estimates by road section by item of work are presented in Annex 5 of this report.

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Table 9.4.1 ADB TA 7093-PHI - PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE I #REF! LENGTH CP NO. NAME OF ROAD PROVINCE REGION WORK DESCRIPTION KM.

(1) (2) (3) (4) (5) (6)

30.9 km AC Overlay LOT 1.1 - BAUANG - BAGUIO ROAD 30.978 LA UNION/ BENGUET I and CAR 80 m reconstruction 8.17 km exception CP - I 54.24 km for 50 mm thick AC Overlay LOT 1.2 - OLONGAPO - BUGALLON 65.549 ZAMBALES 3 2.94 km for 100 mm thick AC Overlay ROAD 8.37 km for 125 mm thick AC Overlay

LOT 2.1a - PALO - CARIGARA - 20.3 km for 50 mm thick AC Overlay ORMOC ROAD AND LOT 2.1b - 36.120 LEYTE 7 960 m for reconstruction DAANG MAHARLIKA ROAD (Liloan- 1.62 km exception Naval Highway) 7.32 km for 50 mm thick AC Overlay 15.2 km for 80 LOT 2.2 - ILOILO - CAPIZ ROAD 27.010 ILOILO 6 mm thick AC Overlay 3.49 km for 100 mm thick AC CP - II Overlay 11.26 km exception LOT 2.3 - DUMAGUETE NORTH 25.68 km for 50-100 mm AC Overlay ROAD, 1st District, (Manjuyod - La 45.482 NEGROS ORIENTAL 7 20.16 km for reconstruction Libertad) Design and Build 12.39 km exception LOT 2.4 - DUMAGUETE NORTH 16.88 km for 50-80 mm AC Overlay ROAD, 1st District, (La Libertad - 39.756 NEGROS ORIENTAL 7 22.87 km for reconstruction Vallehermoso) Design and Build 1.8 km exception 6.9 km for 50 mm thick AC Overlay LOT 3.1 - DIPOLOG - OROQUIETA ZAMBOANGA DEL 20.682 9 13.78 km for 80 mm thick AC Overlay CITY ROAD NORTE 29.21 km exception 2.33 km for 50 mm thick AC Overlay LOT 3.2 - BUTUAN - CAGAYAN DE 11.14 km for 80 mm thick AC Overlay ORO CITY - ILIGAN ROAD (Misamis 19.693 MISAMIS ORIENTAL 9 6.22 km for 100 mm thick AC Overlay Oriental) 1.5 km exception CP - III LOT 3.3 - BUTUAN - CAGAYAN DE 16.42 km for 80 mm thick AC Overlay ORO CITY - ILIGAN ROAD (Agusan del 16.421 AGUSAN DEL NORTE 9 15.67 km exception Norte), Design and Build 35.28 km for 50 mm thick AC Overlay (6.7 m width) LOT 3.4 - BUKIDNON - COTABATO 38.110 NORTH COTABATO 12 2.83km for 50 mm thick AC Overlay ROAD (13.4 m width) 9.5 km exception TOTAL 339.801

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Figure 9.5-1

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Figure 9.5-2

9.8 Proposed Implementation Schedule 22. The corresponding proposed implementation schedules for each road section under Tranche 1 are presented in Annex 6. The proposed overall implementation schedule for the whole RSIP project is presented in Figure 9.8- 1.

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Table 9.6.1 ADB TA-7093-PHI - PREPARING ROAD SECTOR IMPROVEMENT PROJECT, ASSET PRESERVATION UNDER TRANCHE 1

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Figure 9.8-1: Implementation Schedule Philippine Road Sector Project

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ACTIVITY 12341234123421 341 234 12341234123412341234

Loan Processing EA's recruitment of supervision consultants AP-1 Supervision Consultants Services Procurement of Tranche 1 Civil works Implementation of CW Tranche 1

Recruitment DE Consultants for Tranche 2 Asset Preservation and Road Improvement Detailed Engineering Asset Preservation and Road Improvement Phase 2 Tendering for AP and RI for Phase 2 Prepare ICD documents Procure ICD Implement ICD

Tranche 2 Processing

Recruitment of Tranche 2 Supervision Consultants

Supervision Consultants Services

Implementation of Civil Works

Recruitment of Tranche 3 DE Consultants

Detailed Engineering - Tranche 3

Tendering for Phase 3

ICD Procurment and Implementation

Tranche 3 Processing

Recruitment of Tranche 3 Supervision Consultants

Supervision Consultants Services

Implementation of Civil Works

ICD Procurment and Implementation

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10. CONTRACT PACKAGING, CONSTRUCTION SCHEDULE, AND BIDDING DOCUMENTS FOR TRANCHE 1

10.1 Contract Packaging 1. Shown below is the list of approved road sections selected for Tranche 1: Table 10.1.1: Selected Road Sections for Tranche 1 Tentative Contract Province and Cong. Estimated Contract Cost Contract Mode of Package/ Road Section Region District Duration Procurement Lot US$ M P M (months)

Package 1 - LUZON

Lot 1.1 Bauang-Baguio Road I & La Union 4.94M 227.22 M 12 NCB CAR (2nd District) Benguet (Lone District)

Lot 1.2 Olongapo-Bugallon III Zambales 13.92 M 640.61 M 18 NCB Road (1st & 2nd District)

Package 2 - VISAYAS

2.1 2.1a - Palo - Carigara - VIII Leyte 9.16 m 421.25 m 18 ICB Ormoc Road and (1st District)

2.1b - Daang Maharlika Road (Liloan-Naval Highway)

2.2 Iloilo-Capiz Road (Old VI Iloilo 6.02 M 276.78 M 12 ICB Route) (3rd District)

2.3 Dumaguete North Road, Negros Oriental 16.88 M 776.64 M 23 ICB/ st 1 District (Manjuyod – (1st District) Design and La Libertad) Build Scheme

2.4 Dumaguete North Negros Oriental 13.78 M 634.07 M 23 ICB/ st Road,1 District (La (1st District) Design and Libertad – Vallehermoso) Build Scheme

Package 3 - MINDANAO

3.1 Dipolog-Oroquieta IX Zamboanga del Norte 3.74 M 172.24 M 8 NCB Road (1st & 2nd District)

3.2 Butuan-Cagayan de X Cagayan de Oro City 10.10 M 464.58 M 13 ICB Oro City-Iligan Road (1st District) (Misamis Oriental)

3.3 Butuan-Cagayan de X Agusan del Norte 4.53 M 208.43 M 12 NCB/ Oro City-Iligan Road Design and (Butuan City) Build Scheme

3.4 Bukidnon-Cotabato XII North Cotabato 6.72 M 309.30 M 13 ICB Road (1st District) 2. Packaging of Road Sections under Tranche I is based on the geographical location as shown above.

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3. Mode of Procurement to be adopted for each lot/road section:

Method Threshold (Civil Work Cost)

International Competitive Bidding Above US$ 5Million (P 230M)

National Competitive Bidding Less than US$ 5Million (P 230M) Exchange Rate used: US$1=P46.00

4. Combining the Dipolog-Oroquieta Road with the other Road Sections within the Mindanao Group of Island (Butuan-Cagayan de Oro City-Iligan Road and Bukidnon-Cotabato Road) in one contract package would be impractical considering their remoteness from each other, thus, might incur difficulty in closely monitoring the Works.

5. Palo-Carigara-Ormoc Road and Daang Maharlika Road with total estimated construction cost of P421.25 Million (US$ 9.16 Million) are combined under Lot 2.1 since both road sections are located within the Visayas Group of Island and are contiguous to each other.

10.2 Construction Schedule 6. The derivation of Construction Schedule for each Lot/Road Section as shown under Item 10.1.1 takes into account the typical productivity levels as derived from analyses of previous ADB financed projects and the effects of seasonal climate variations.

7. The estimated number of rainy/unworkable days considered unfavourable for the execution of the works at the site shall be made known before the date of bidding through its incorporation in the Bidding Documents for the purpose of guiding both DPWH and the winning Contractor in the request for an approval of time extensions. Without the estimated number of rainy/unworkable days established before the bidding date and known to all participating bidders, the contract time is presumed to have excluded the unfavourable conditions.

10.3 Prequalification Documents 8. The Prequalification Documents for each Contract Package is based on the ADB’s Procurement Guidelines issued in 2007 and ADB’s Standard Prequalification Documents for the Prequalification of Bidders (SPQD) dated October 2006.

9. The Relevant procedures for open competitive bidding as specified in the Amended Implementing Rules and Regulations (IRR) of Republic Act 9184 (R.A. 9184) fourth edition, otherwise known as the “Government of Procurement Reform Act,” to the extent it is consistent with Asian Development Bank’s procurement procedures was also considered in the preparation of Prequalification Documents.

10. Major Sections of the Prequalification Documents consist of the following:

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PART I - APPLICATION PROCEDURES

Section I. Instructions to Applicants (ITA)

11. This Section specifies the procedures to be followed by Applicants in the preparation and submission of their Applications for Prequalification (AFP). Information is also provided on opening and evaluation of AFPs. Section I contains provisions that are to be used without modification.

Section II. Application Data Sheet (ADS)

12. This Section consist of provisions that are specific to each prequalification and supplement the information or requirements included in Section I, Instructions to Applicants.

Section III. Evaluation Criteria

13. This Section contains the evaluation factors, methods and criteria to be used to determine how Applicants shall be prequalified and later invited to bid.

Section IV. Application Forms

14. This Section contains the forms for the Application Submission Sheet and all the forms required to be submitted with the Application.

Section V. Eligible Countries

15. This Section contains information regarding eligible countries.

PART 2 - WORKS REQUIREMENTS

Section VI. Scope of Works

16. This Section includes a summary description, delivery and completion schedule.

17. A minimum of 60 days shall be given to the Applicant to study and prepare complete and responsive Applications.

10.4 Bidding Documents 18. For Road Sections whose bidding will be conducted thru National Competitive Bidding (NCB) mode of procurement, the latest version of the Harmonized Philippine Bidding Documents, which are prepared in line with WB, ADB and JBIC procurement procedures, are used. Hence, the procedures to be followed for NCB shall be those set forth in the latest Implementing Rules and Regulations of Republic Act No. 9184 of the Philippines with the clarifications and modifications required for compliance with the provisions of the ADB Procurement Guidelines.

19. For Road Sections whose bidding will be conducted thru International Competitive Bidding, the Sample Bidding Documents for Procurement of Works are used following ADB Guidelines and adopting the single stage-one envelope procedure (without prequalification). The bidding rules and procedures of ADB will

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govern the bidding process as well as the relevant procedures for open competitive bidding as specified in the latest amended IRR of R.A. 9184, to the extent it is consistent with ADB’s procurement procedures.

20. For Road Sections to be procured using either NCB or ICB with Design and Build Scheme, corresponding Sample Bidding Documents as cited under items 8 and 9 above is used with some modification to conform with Annex “G” (Guidelines for the Procurement and Implementation of Contracts for Design and Build Infrastructure Projects) of the latest Implementing Rules and Regulations of Republic Act No. 9184 to the extent it is consistent with ADB’s procurement procedures.

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11. ECONOMIC EVALUATIONS

11.1 General Approach and Methodology

11.1.1 Economic Evaluation Model 1. In the economic evaluation process, the Study Team adopted the internationally accepted road evaluation model which is also being used by DPWH in the selection, prioritization, fund allocation and scheduling of Pavement Management projects and in preparing asset preservation programs, i.e., the Highway Development and Management Tools (HDM-4). The Study Team utilized own program of the same version as DPWH, but data and parameters were updated for 2008. The DPWH have HDM-4 results for the project roads under Tranche 1, however, the study team undertook the re- evaluation since DPWH version was only based on visual estimates on road roughness and the cost estimates have to be updated to the latest price level. The latest roughness values in terms of International Roughness Index (IRI) are based on actual measurement conducted in the field. 2. The analytical framework for HDM-4 employs the concept of pavement life cycle analysis, which is applied to predict various factors over the life cycle of a road pavement, which is typically 15 to 25 years, such as: road deterioration, road work effects, road user effects, and socio-economic and environmental effects. Once constructed, road pavements deteriorate as a consequence of several factors, most notably: traffic loading, environmental weathering, and inadequate drainage. The rate of pavement deterioration is directly affected by the standards of maintenance applied to repair defects on the pavement surface over time to preserve the structural integrity of the pavement, thereby permitting the road to carry traffic in accordance with its design function. The impacts of the road condition and design standards on road users are measured in terms of road user costs and other social and environmental effects. Road User Costs in HDM-4 are calculated by predicting physical quantities of resource consumption and then multiplying these quantities by the corresponding user specified unit costs, known as basic Vehicle Operating Costs. 3. HDM-4 determines the economic benefits from road investments by comparing the total costs for various works and construction alternatives against a base case (without project or do minimum) alternative, usually representing the minimum standard of routine maintenance. This tool is designed to make comparative cost estimates and economic analyses of different investment options. To make comparisons, detailed specifications of investment programs, design standards, and maintenance alternatives are needed, together with unit costs, projected traffic volumes, and environmental conditions. To determine the cost-effectiveness of investment options, the objective function is to maximize the NPV/capital cost (CAP). The incremental NPV/CAP ratio satisfies the objective of maximizing economic benefits for each additional unit of expenditure (i.e., maximize net benefits for each additional peso of the available budget invested).

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4. The inputs to the HDM-4 system include the properties of the existing road network, with the varying surface types, conditions, lengths, AADTs, construction and maintenance unit costs, vehicle operating costs, right-of-way acquisition costs; and the cost of mitigation measures for all identified probable adverse environmental impacts of road improvement/construction. 5. Basically, the HDM-4 model is fit for assessing the traffic benefits for all the “traffic” subproject roads. However, “developmental” road projects are not subjected to HDM-4 runs in view of the different approach and methodology considered in assessing normal and generated traffic benefits accruing from the improvement/construction of these roads. Manual calculation is therefore undertaken in this case. However, considering that the project roads are already existing and are mainly considered for asset preservation, therefore, no developmental benefits are expected to accrue. 6. The HDM-4 model was utilized mainly for economic evaluation of the different maintenance work alternatives for the roads proposed for asset preservation under Tranche 1. However, for the preliminary evaluation of roads proposed for the succeeding phases of the project under Tranches 2 and 3, considering the limited time available, the more simplified spreadsheet model known as “ECOVAL”, the earlier developed economic evaluation tool during the conduct of road feasibility studies in DPWH, was used.

11.1.2 Economic Applications

a. Traffic Projection 7. The study team established the base year traffic by road project, the source of data of which mainly came from the DPWH central database. However, the available traffic data from DPWH is as of 2008, this was then projected to 2009 base year estimates by applying the established traffic growth rates. The equivalent standard axle load (ESAL) factors utilized are likewise those established by the DPWH as a result of loadometer surveys undertaken in 2008.

8. Traffic growth rates previously estimated for the Project Management System (PMS) developed for DPWH under the newly operational Road Information and Management Support System (RIMSS) were utilized in this study on regional basis as presented in Table 11.1.1. These traffic growth rates were estimated utilizing the model frequently used in various DPWH project evaluation considering the factors such as population growth, real per capita income growth and the income elasticity of demand for transport.

b. Basic Vehicle Operating Cost Estimates 9. As one of the inputs to the HDM-4 model, the updated basic vehicle operating costs (VOC) by type of representative vehicle are necessary. The DPWH has available updated estimates of basic VOCs as of July 2008, which were likewise utilized for this study. The breakdown of costs includes the new vehicle price of representative vehicle, tire prices, fuel and lubricating oil prices, maintenance labor costs, crew costs, annual overhead costs per vehicle, passenger time costs per person and cargo inventory costs. The different characteristics of each representative vehicle are also inputs to the

KEI in association with SKI and DCCD 11-2 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report 2.02.0 2.0 3.0 2.0 3.0 3.0 3.0 4.24.5 4.0 4.5 4.5 4.0 4.5 4.0 3.63.6 4.1 5.0 4.5 4.4 5.0 4.0 XIII XIV XII 2.2 1.5 2.0 2.5 6.0 4.5 3.5 4.0 4.5 3.4 2.6 3.0 CENTRAL CENTRAL MINDANAO CARAGA ARMM ERN ERN NAO XI 3.5 3.5 2.0 2.0 6.3 5.9 4.5 4.0 3.7 3.5 2.7 2.5 MINDA SOUTH X 3.5 3.5 2.0 2.0 6.3 5.9 4.5 4.0 3.7 3.5 2.7 2.5 MINDANAO NORTHERN IX 2.0 2.5 2.0 1.5 4.5 5.0 4.5 4.0 4.0 4.5 3.5 3.1 WESTERN MINDANAO III V VISAYAS EASTERN II V VISAYAS CENTRAL CENTRAL I V VISAYAS WESTERN V BICOL IV 4.5 4.2 3.0 4.0 2.6 6.2 4.4 3.0 4.0 4.0 5.5 6.0 4.5 6.4 4.5 4.03.5 2.5 2.0 2.8 2.5 3.5 2.5 4.0 2.0 5.04.5 5.04.0 4.5 4.0 4.0 3.5 7.2 3.0 6.3 5.0 5.3 4.5 4.0 5.2 5.1 3.6 4.3 3.5 5.65.0 4.83.9 4.3 4.7 3.6 4.5 4.8 3.7 4.3 4.0 3.7 3.5 3.1 TAGALOG SOUTHERN Table 11.1.1: ESTIMATED ANNUAL TRAFFIC GROWTH (%) Table RATES TRAFFIC 11.1.1: ANNUAL ESTIMATED III LUZON CENTRAL CENTRAL II VALLEY CAGAYAN CAGAYAN I ILOCOS 3) The user is encouraged to interpolate between time periods given to arrive at Traffic Growth Rates for years. individual 2) The resulting Traffic Growth Factors arrived at through the formula were adjusted based on the actual traffic growth trends in different regions. NOTE: 1) NCR National= Capital Region; CAR = Cordillera Administrative Region; ARMM = Autonomous Region of Muslim Mindanao YEARS NCR CAR 2000-2006 7.4 3.0 4.3 3.0 3.0 2006-2012 7.5 5.5 5.7 3.2 3.2 2000-2006 7.0 6.6 7.0 6.4 6.4 2012-2018 5.62018-2024 4.8 4.5 4.5 4.4 4.0 3.0 2.5 3.0 2.5 2006-2012 7.02012-2018 6.52018-2024 8.0 6.1 7.5 7.0 5.3 6.0 7.2 5.0 6.3 7.2 5.3 6.3 5.3 2000-2006 4.3 5.7 6.3 4.3 4.3 2006-2012 5.42012-2018 4.92018-2024 6.6 3.8 6.0 6.5 4.2 5.9 4.8 4.2 4.3 4.8 3.7 4.3 3.7 PRIVATE TRANSPORT PUBLIC TRANSPORT FREIGHT TRANSPORT FREIGHT

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model to estimate the cost consumption such as the number of wheels, number of axles, type of tires, annual vehicle-kilometers, annual working hours, passengers per vehicle, etc. The estimated basic VOCs, both in financial and economic prices, and vehicle characteristics as of July 2008 are shown in Annex 7.

c. Cost-Benefit Analysis 10. The purpose of an economic appraisal of road projects is to determine how much to invest and what economic returns to expect. The size of the investment is determined by the costs of construction and annual road maintenance. The economic returns are mainly in the form of savings in road user costs due to the provision of a better road facility. 11. The economic evaluation process in HDM-4 is based on generated annual cost streams for road construction, road maintenance and road user costs. The cost streams will usually begin in a specified base year, onwards throughout the entire analysis period usually chosen to equal the design life of new road pavements. 12. The cost of new road construction is calculated from the sum of site preparation, earthworks, pavement construction, bridge and drainage structures, and overheads. The annual cost of road maintenance works depends on the maintenance policy or specified standard and the predicted pavement condition. The applied maintenance may range from routine maintenance to full reconstruction. Routine maintenance includes activities which are required regardless of the overall condition of the road or the traffic level, i.e., grass cutting, road sign repairs, drainage clearance, etc. and maintaining localized failures. HDM-4 calculates the quantities of the various work activities which are multiplied by the specified unit cost of each activity, in either economic or financial terms to derive the maintenance costs. 13. Road user cost may be defined as costs incurred by vehicle operators and by the traveling public, which are specified in HDM-4 as economic rather than financial costs. Road user costs consist of vehicle operating costs, time costs and accident costs. 14. The economic analysis was performed on “with” and “without” project scenarios. The difference in vehicle operation costs between these scenarios is the expected benefits accruing from the road investment. Basically HDM-4 model normally quantifies the road user cost savings to normal traffic. Normal traffic is referred to as the traffic demand, which results from the natural growth in population and economic activities within the influence area of each project road. Other types of quantifiable benefits, which are separately inputted to the model after separate manual calculations, include generated traffic benefits as a result of the opportunity for faster, cheaper, more comfortable and reliable transport between the areas served; diverted traffic benefits or the savings realized by the traffic that is presently using other roads or other modes of transport upon diversion to the improved project road; and development benefits which may be in the form of net value added in agriculture or induced production increases. However, for the analysis of the project roads under Tranche 1, only the road user cost savings to normal traffic was calculated.

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d. Economic and Shadow Pricing 15. Financial costs represent the actual investment and road user costs. Economic costs represent the real cost to the economy of this road investment and ownership and operation of vehicles, where adjustments are made to allow for market price distortions such as taxes, subsidies, foreign exchange restrictions, labor wage laws, etc. For the VOCs economic costs are estimated by deducting the tax component that varies by item of costs, while for the road construction and maintenance including other indirect costs tax component is generally estimated at an average of 18%. 16. The opportunity cost of capital, or the discount rate considered was at 15% as the rate of opportunity cost of capital established by NEDA. 17. On the other hand, the overall shadow pricing factors considered by NEDA based on the national situation is 0.8 for costs of skilled labor and 1.2 for foreign cost component of civil works costs. These factors were likewise applied in estimating total economic project costs.

11.2 Economic Evaluations for Tranche 1

11.2.1 Ranking Methodology 18. Of the total long listed roads, 8 roads were selected and short listed as priorities for asset preservation under the first Tranche, including: 1) Butuan- Cagayan de Oro City-Iligan Road (Misamis Oriental Section), 2) Iloilo-Capiz Road (old route), 3) Bauang-Baguio Road, 4) Olongapo-Bugallon Road, 5) Dipolog-Oroquieta City Road, 6) Bukidnon-Cotabato Road, 7) Palo-Carigara- Ormoc Road, and 8) Daang Maharlika Road (liloan-Naval Highway). Later, additional three (3) road sections were included under Tranche 1 under the “Design and Build” component, namely: 1) Dumaguete North Road (Manjuyod-La Libertad Section); 2) Dumaguete North Road (La Libertad- Vallehermoso Section); and 3) Butuan-Cagayan de Oro City-Iligan Road (Agusan del Norte Section).

19. The first Tranche of the project involves the evaluation and detailed design of selected project roads for asset preservation or periodic maintenance.

11.2.2 Evaluation Methodology 20. For the purpose of economic evaluation, the different preventive maintenance work options were already identified (details are given in Chapter 9 of this report) for the above project roads selected under Tranche 1. As can be noted in the discussion in Chapter 9, there were changes from the previous HDM-4 recommendations of DPWH, as identified by the Study Team based on the latest survey results. The unit costs for each type of work were also established. The base year traffic data were estimated based on the latest available estimates from the DPWH as of 2007. The other required input data for HDM-4 model were obtained from DPWH, except those that require updating upon completion of the on-going detailed engineering survey undertaken by the staff of the DPWH specifically for this project and at the same time in connection with the updating process for RBIA data storage.

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21. The said engineering survey was undertaken for the purpose of providing updated and more accurate engineering data as basis for the detailed engineering design to be undertaken for Tranche 1 road projects. Particularly, the various input data necessary for updating include, among others, the required pavement thickness, the road roughness (IRI) values and the current road surface types and conditions. Upon completion of this survey, economic evaluation using HDM-4 model was undertaken.

11.2.3 Evaluation Results 22. The result of economic evaluation for the most cost-effective maintenance works for the 11 project roads under Tranche 1 is summarized in Table 11.2.1. This table shows that the resulting average Economic Internal Rate of Return (EIRR) for each road project range from a low of 16.3% for Dumaguete North Road (La Libertad-Vallehermoso Section) to a high of 112.2% for Butuan-Cagayan de Oro City-Iligan Road (Misamis Oriental Section). In terms of NPV/C, the lowest average is also for Dumaguete North Road (La Libertad-Vallehermoso Section) at 0.093 while the highest is Daang Maharlika Road (liloan-Naval Highway) at 26.941. 23. The detailed economic evaluation results by road section for the best/ recommended alternative maintenance works are presented in Annex 8.

Table 11.2.1: Results of Economic Evaluation for Tranche 1

Length HDM-4 Evaluation Results Project Description (km) ENPV EIRR NPV/C 1. Butuan-Cagayan de Oro-Iligan Road 21.20 1,374.39 112.2 23.863 (Misamis Oriental Section) 2. Iloilo-Capiz (Old Route) 37.24 3,096.56 87.8 17.165 3. Bauang-Baguio Road 39.15 1,305.89 43.6 6.189 4. Olongapo-Bugallon Road 145.28 849.30 39.6 8.677 5. Dipolog-Oroquieta City Road 49.89 135.50 41.4 16.712 6. Bukidnon-Cotabato Road 47.61 91.29 22.3 0.469 7. Palo-Carigara-Ormoc Road 22.88 99.10 29.4 0.937 8. Daang Maharlika Road (Liloan-Naval 14.86 10.24 25.3 26.941 Highway) 9. Dumaguete North Road (Manjuyod-La 58.23 205.30 19.7 0.316 Libertad Section) 10.Dumaguete North Road (La Libertad- 41.56 109.54 16.3 0.093 Vallehermoso Section) 11.Butuan-Cagayan de Oro City-Iligan 36.30 98.63 19.6 0.456 Road (Agusan del Norte Section)

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11.3 Sensitivity and Risk Analysis

11.3.1 Sensitivity Analysis 24. Sensitivity and risk analysis has been undertaken for this project to help identify the key variables that can influence the project cost and benefit streams. It involves recalculating the project economic evaluation results for different values of major variables or key factors, which are the key determinants of project outcomes to which the project’s returns may be sensitive or unacceptable because of the effects of the identified key risk factors. In general, the principle of risk analysis is to provide analysis of project implementation risks so that the concerned parties can best manage or mitigate the identified risks to projects. 25. For this project, considering the nature of the project which asset preservation of existing national road network and based on previous experiences of the executing agency in the implementation of similar projects in the country, the identified project risks are the probable decrease in actual traffic growth rates than what was estimated during the study, the delay in the implementation of the project, and the cost-overruns incurred by construction contractors due to various constraints. 26. Based on actual experiences in some road projects, most often experienced is that traffic growth are not realized during the actual operation as what were expected during the study, some are lower than the estimated growth while others are significantly higher. For this study, since all the project roads are already existing, a probable risk of 20% decrease in traffic growth rate is assumed. 27. Several times that delay in the implementation of road projects were experienced in the past due to longer time spent in preparation and negotiation (the most of which is 2 years), thus, this factor is foreseen as one of the major project risk. For this study an average of 2 years delay in implementation is considered as the probable risk. 28. Likewise, based on past experiences most project construction incur cost overruns due to variation orders, it is estimated on the average that about 20% additional cost from the original estimates was incurred as cost overrun. This is one of the risk in project implementation that has to be addressed also. 29. Sensitivity and risk analysis was performed considering the above risk factors. The sensitivity indicator (SI), summarizing the effect of change in a variable on the project NPV, and the switching values (SV), showing the percentage increase in a cost item required for the NPV to become zero, were also calculated. 30. The result of sensitivity analysis performed is summarized in Table 11.3.1 below.

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11.4 Benefit Distribution Analysis 31. Benefit distribution analysis was carried out in order to evaluate the impact of the project among major beneficiaries and stakeholders. The distribution of benefits was identified based on the composition of road users as indicated by the composition of vehicles on the total AADT of each project road. The identified major project beneficiaries include: (i) users of passenger transport vehicles, (ii) users of freight transport vehicles, (iii) vehicle owners/operators (iv) labor sector, and (v) the Government and economy of the Republic of the Philippines. The distribution of benefits is shown in Table 11.4.1. 32. As shown in the said Table, the users of passenger transport vehicles will receive about 10%, users of freight transport vehicles will receive about 78%, vehicle owners/operators will receive about 5%, the labor sector (both vehicle crews and construction workers) will also receive about 5% and the Philippine economy will receive about 3% of the total net benefits accruing from the project implementation.

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12. ENVIRONMENTAL ISSUES

12.1 Introduction 1. Initial Environmental Examination (IEE) has been conducted for all 11 subprojects of Tranche 1. According to ADB guidelines, the Project can be categorized as environment category “B” for environmental assessment. According to Philippine Environmental Guidelines, the subprojects can be categorized as either Group II or III. Hence, IEE report is prepared to meet the requirements of both the ADB and the government. The IEE is prepared as a stand alone document and enclosed with the draft final report. The summary initial environmental examination is also prepared for the Project and presented as ‘Annex C’ of the IEE report.

12.2 Methodology 2. The following procedure has been adopted to examine the detailed baseline environment and assess the possible environmental impact on the physical, ecological and socio-economic resources that could result due to the implementation of the Project: • Field visits to all the road projects by the environmental specialists; • Preparofation environmental database of all subprojects through detailed review and analysis of available spatial maps for all environmental parameters; • Review of proposed civil works such as overlay, reconstruction and maintenance for each road project; • Review and analysis of reports and field data collected from the previous road projects; • Discussion with various stakeholders; • Assessment of the present environmental scenario and identification of the impacts of the proposed project; • Addressing critical problems, considering technical, financial and institutional factors; and • Preparation of an environmental management and monitoring plan, and mitigation measures. 3. An environmental data base consisting of the following information has been prepared for each road project. • Terrain – minimum and maximum elevations, steep slope areas, sensitive side slopes susceptible to landslide and rock fall. • Climate – mean annual temperature and mean annual rainfall. • Soils – soil group, texture, drainage, and sand fraction (a function of soil erodibility). • Geology – geology, geomorphology and hydrogeology. • Streams – total streams, watershed, names of major rivers

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• Protected areas – IUCN protected areas, wetlands, marine protected areas, mangroves, coral reefs, biosphere areas and world heritage sites. 1. Landuse – agriculture, residential, and forest 2. Population – population within 1 km of road link, minimum and maximum population density, densely populated areas. 3. Natural Hazards – seismicity, floods, typhoons, volcanic activity, and other geophysical risks.

12.3 Screening Environmental Impacts and Mitigation Measures 4. The initial environmental examination, based on the screening of baseline environment and review of proposed civil works, has not identified any environmental concerns due to the implementation of Tranche 1 road projects given that all the proposed civil works are only improvement of existing pavement and are located within existing ROW. However, there will be localised short-term impacts during construction activities due to implementation of civil works that were addressed in the detailed designs and through application of environmental management plans. These construction related impacts can be mitigated by: (i) the contractors’ work practices, especially those related to the storage of construction materials and cleanliness of the work sites; (ii) cooperation by the local authorities with the contractor in terms of traffic management and use of public space and utilities; (iii) project management’s strict enforcement of the proper construction practices and standards; and (iv) the incorporation of the mitigation measures identified in the IEE into the bid documents and specifications. A detailed Environmental Management Plan (EMP) has been prepared for all the identified impacts. EMP is presented as ‘Annex A’ of the IEE report. 5. Major environmental concerns that could be expected from the implementation of civil works are: a. Removal and disposal of asphalt and concrete pavement; b. Clearing of right of way, removal of vegetation (trees and shrubs) and disposal of spoils; c. Extraction and transport of construction material from existing quarry sites; d. Temporary use of land immediately adjacent to the road for siting of contractor’s yard, asphalt/concrete plant and construction camps; e. Reduced air quality and visibility (Air quality impacts and/or noise pollution from construction activities, quarry sites, material storage sites, temporary diversion roads, excavations, vehicle and equipment use and asphalt/concrete mixing plant); f. Reduced water quality (Water and soil pollution) at bridge rehabilitation sites from improper handling of and disposal of wastes and materials; g. Drainage from construction camps, material stockpiles, excavations and quarry activities; h. Interruption to smooth traffic flow, increased traffic congestion and

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public safety problems; and i. Social conflicts due to project activities. 6. The project is expected to benefit the environment and socio-economic conditions of the subproject areas through: j. Improved access and economic development to about 4.2 million people located within the project districts; k. Reduced soil erosion and landslides due to slope stabilization measures; l. Reduced dust due to improved pavement of roads ; m. Reduced extent of flooding in roadside villages due to improved drains; and n. Improved road safety due to installation of safety signs and construction of pedestrian paths.

12.4 Environmental Monitoring Plan 7. In response to environmental impacts identified during the study, an environmental monitoring plan has been developed and is presented in the IEE report. The contract documents will contain a listing of all required mitigation measures and a time frame for the compliance monitoring of these activities. The monitoring will comprise surveillance to check whether the contractor is meeting the provisions of the contract during construction and the executing agency during the operation of the Project. 8. A budget of US$ 1,053,500 has been proposed for monitoring of environment during civil works implementation of Tranche 1 road projects. A budget of US$ 105,600 has been proposed for environmental management during operational stages of the Tranche 1 road projects.

12.5 Capacity Building of ESSO and Other Implementing Agencies 9. A capacity building program in environmental and social impact assessment and management has been prepared after review of the similar training programs conducted under NRIMP Project and consultation with ESSO. The proposed capacity building program will include: (a) update of environmental and social impact assessment and management procedures, (b) update of the existing Infrastructure Right-of-Way (IROW) and Social Environmental Management System (SEMS) manuals, and (c) conduct of training programs to improve the capability of ‘road staff’ at all levels in carrying out impact assessment and management of road projects. ‘Road staff’ include those in DPWH (including ESSO, IROW and related colleagues), and those in the regions/districts and projects (DPWH, DENR, EMB, LGU, Design and Supervision Consultants, and Contractors). An outline terms of reference (ToR) is prepared for the capacity building program and is presented in ‘Annex B’ of the IEE report.

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12.6 Stakeholder Consultations 10. The IEE process included stakeholder participation and consultation to help DPWH to achieve public acceptance of the Project. Consultations were held in all project provinces during social and environmental field studies through interviews and meetings with the affected people, provincial environmental agencies, and DPWH’s regional and district offices. In addition, perception surveys were conducted all along the project roads as part of social and resettlement survey. The results of the consultation were positive, with people considering that the Project will bring significant economic benefits to the region and increase trade flows. No major concerns were raised during these consultations except issues which include proper drainage, construction quality and proper engineering practices during its implementation, pedestrian lanes, additional road safety signs in school areas, involvement of local people during construction, and transparency in construction work.

12.7 Conclusions 11. Based on the results of the IEE, the Project will not generate significant environmental impacts provided the mitigation measures detailed in the IEE are implemented appropriately. Based on the requirements of the Government of Philippines and ADB, there are no further environmental studies required for the proposed Tranche 1 road projects.

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13. SOCIO-ECONOMIC, POVERTY, GENDER AND ETHNICITY IMPACT ANALYSIS

13.1 Brief Profile of the Project Areas 1. For reference in the analysis, the provincial socio-economic profiles of the different project areas of each road project under Tranche 1 on provincial level are briefly discussed below. The basic information on population and income class of each municipality within the road influence areas are summarized in Table 13.1.1.

13.1.1 Bauang-Baguio Road (Provinces of La Union and Benguet)

2. La Union is located in the in Luzon. Its capital is San Fernando City and borders to the north, Benguet to the east, and Pangasinan to the south. To the west of La Union is the South China Sea. La Union has a total land area of 1,504.0 sq. km. and is subdivided into 19 municipalities and 1 city, La Union, the province’ capital and seat of government. Like most of the region, the province is squeezed in by the Cordillera mountain range to the east and the South China Sea to the west. Yet, unlike other portions of Luzon and the Philippines' two other island groupings, the Visayas and Mindanao, La Union experiences a rather arid and prolonged dry season with little precipitation to be expected between the months of November and May. 3. As of census year 2007, the province was recorded to have a total population of 720,972. Ninety-three percent of the population is Ilocano and is overwhelmingly Roman Catholic. There are communities of Pangasinense in the south, Igorots in the Cordillera foothills, and Chinese in the city. La Union is highly literate, with San Fernando City as the administrative, educational, and financial center of the region. 4. The economy is diversified with service, manufacturing, and agricultural industries spread throughout the province. The Port of San Fernando operates as an increasingly active shipping point, and the former American airbase Wallace Air Station, having been converted into a business and industrial area, helps to facilitate such commercial activity. Tourism to the province is driven by airlines and passenger coach bus lines like regionally owned Farinas Transit Company and . Tourists often flock to the beaches of Bauang, or to the more secluded ones further north for snorkeling, surfing or other water sports; the more northerly beaches near San Juan specifically cater to both local surfers as well as portions of the world surfing circuit. 5. Benguet is a landlocked province of the Philippines in the Cordillera Administrative Region in Luzon. Its capital is La Trinidad and borders, clockwise from the south, Pangasinan, La Union, Ilocos Sur, Mountain Province, Ifugao, and Nueva Vizcaya. Baguio City, a popular tourist destination in the country, is located in the interior of the province, however, the city is independent of the province.

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6. Cordillerano, or Cordilleran, is an unofficial and relatively recent term for the people of the hill tribes of Luzon, who are residing in the Cordillera and Caraballo mountains. This term is an attempt at political correctness, since a current term, Igorot, has caused controversy due to its perceived negative stigma and by the ignorance of individuals who didn't really explore and study the area, which is incorrectly connected to backwardness and inferiority. 7. Based on the May 2000 census, Benguet has a total population of 330,129, which makes it the most populous province in the region. This figure is up by 16,296 from 313,833 persons recorded in the 1995 census, giving an annual growth rate of 1.09% during the 5-year period—much, much lower than the national average of 2.43%. If this growth rate were maintained, Benguet would double its population in approximately 64 years. The province registered at 63,123 households, an increase of 4,588 households over the 1990 figure. This gave an average household size of 5.2 persons, a little higher than the national average of 4.99. Benguet is the homeland of several tribes, collectively referred to as the Igorot. Two of them, the Ibaloi in the southeast and the Kankana-ey in the northwest, are the dominant tribes of Benguet. In the 2000 census, 43% of the household population was Kankana-ey. About 29.2% were Ibaloi and 13.4% were Ilocano. Other ethnic groups included Ikalahan (3.7%) and Tagalog (2.4%). 8. Agriculture, mining, and tourism are the major industries in Benguet. Because of its temperate climate and high altitude, Benguet is an ideal place for producing vegetables. Benguet is often called the Salad Bowl of the Philippines. In February 2007, Benguet suffered crop damage due to freezing temperatures in the area, reaching as low as 5 Celsius and even lower in some areas, and important crops like cabbages were damaged. Major crops include potatoes, Baguio beans, peas, strawberries, cabbage, lettuce, and carrots. Other agricultural-related activities are monggo processing, fruit preservation, peanut brittle manufacturing, broom making, basket weaving, and flower growing. Apisang (scientific name: Pittosporum resiniferum), a plant endemic to the Philippines, is also being grown in Kapangan and Kibungan towns as a potential alternative source of fuel and energy, rivaling the overhyped jatropha biofuel plant. 9. Mining is another major industry of Benguet, which is one of the country's leading gold producers. Other mineral deposits are silver, copper, pyrite, and limestone. Silversmithing is a large industry in Benguet, and many entrepreneurs sell silver works at lower prices in Baguio City, compared to Manila. In 2006 alone revenues from mining reached a stunning four billion pesos, and yet this figure comes from just two - Lepanto Consolidated Mining Corporation and Philex Mines - of the many mining firms operating in the province. Nevertheless, the province's mining vigor has never translated into better quality of life of the Benguet people, simply because a bulk of the mining firm's taxes are not paid directly to the province. The two mining corporations, like many others around the country, have principal offices in the City of , a set-up that makes Makati the prime mining tax beneficiary. The presence of Baguio City in Benguet draws a large number of tourists from the lowlands. Often, people who go to Baguio also explore the province, especially the strawberry and vegetable plantations in La Trinidad.

KEI in association with SKI and DCCD 13-2 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

13.1.2 Olongapo-Bugallon Road (Zambales and Pangasinan Provinces)

10. The project area covers the Provinces of Zambales and Pangasinan. 11. Zambales is located in the Central Luzon region. Its capital is Iba. Zambales borders Pangasinan to the north, Tarlac and to the east, and Bataan to the south. The province lies between the South China Sea and the Zambales Mountains. With a land area of 3,700 km, Zambales is the second largest among the seven provinces of Central Luzon. It has a population density of 170 people per square kilometer, one of the lowest in the country. The province is noted for its mangoes, which are abundant from January to April. 12. The Aetas of Mount Pinatubo were the earliest inhabitants of what is now the province of Zambales. They were later displaced by the Sambal, an Austronesian people after whom the province is named. Many Sambal still believe in superstitions and mysteries that have been handed down through the generations. The Sambal, the Tagalogs, the Ilocanos, and the Kapampangans today constitute the four largest ethnic groups in Zambales; these identities may and do, however, overlap with one another due to intermarriage and other factors. Most of the people of southern Zambales are migrants from different parts of the country owing to the influx of job opportunities brought on by the U.S Subic Naval Base (San Antonio and Subic) during the American regime of the country. Many people found jobs and permanently settled there. The presence of the Americans greatly influenced the inhabitants, from their tastes in food, clothing, and style. 13. Zambales is a rich source of nickel and chromite. Zambales hosts 173 kilometers of beaches, with coral reefs, dive spots, surfing areas, hotels and day-use beach huts. The province is approximately a 3 to 4 hour drive from Manila, though this can vary greatly with traffic. The "Fiesta Poon Bato," (literal translation is Feast of the Sacred Stone) held in January, is a religious festival that attracts over half a million people each year. The festival venerates Ina Poon Bato (literal translation is Mother of the Sacred Stone) also known as Nuestra Senora de la Paz y Buen Viaje (Our Lady of Peace and Good Voyage), the oldest known image of the Virgin Mother in Asia. The Barrio of Poon Bato located in the Botolan, that is host to the image and the fiesta, was completely destroyed during the 1991 Mt. Pinatubo eruption. The icon was saved and moved, along with the barrio inhabitants, to nearby Loob Bunga Resettlement Area. The "Mango Festival" is held in the provincial capital of Iba every April, and the "Domorokdok" (Sambal word for Dance) Festival is held each May in Botolan. These include street dancing, agricultural shows, competitions like sand castle building and "bikini open" beauty pageants. 14. Pangasinan is located on the west central area of the island of Luzon along the Lingayen Gulf. The provincial capital is Lingayen. The total land area of Pangasinan is 5,368.82 square kilometers. According to the latest census, it has a population of 2,645,395 people in 477,819 households. The total population is projected to rise to 3,039,500 in 2010. The province is 170 kilometers north of Manila, 50 kilometers south of Baguio City, 115 kilometers north of Subic International Airport and Seaport, and 80 kilometers north of Clark International Airport.

KEI in association with SKI and DCCD 13-3 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

15. Pangasinan is famous for the Hundred Islands National Park. This is a marine park located off the coast of Alaminos City in the Lingayen Gulf and is composed of some 123 islands, most of which are quite small and uninhabited. The 1200 megawatt Sual Coal-Fired Power Plant, and the 345 megawatt San Roque Multi-Purpose Dam are located in Pangasinan. Pangasinan has extensive areas devoted to salt making and aquaculture along the coasts of Lingayen Gulf and South China Sea. Pangasinan is a major producer of rice, mangoes, and bamboo crafts. Pangasinan occupies a strategic geo-political position in the central plain of Luzon, known as the rice granary of the Philippines. Pangasinan has been described as a gateway to northern Luzon and as the heartland of the Philippines. 16. The province is a major fish supplier in Luzon, and a major producer of salt in the Philippines. It has extensive fishponds, mostly for raising bangus or "milkfish," along the coasts of Lingayen Gulf and South China Sea. Pangasinan's aquaculture includes oyster and sea urchin farms. The major crops in Pangasinan are rice, mangoes, corn, and sugar cane. Pangasinan has a land area of 536,819 hectares, and 44 percent of the total land area of Pangasinan is devoted to agricultural production. The 1200 megawatt Sual Coal-Fired Power Plant, 345 megawatt San Roque Multi-Purpose Dam, the Northern Cement Corporation, are located in Pangasinan. It has export earnings of around $5.5 million and has 593 banking and financing institutions. It has a labor force of about 1.52 million, and 87 percent of the labor force is gainfully employed.

13.1.3 Palo-Carigara-Ormoc Road (Leyte Province)

17. The project area of the project road covers the whole Province of Leyte. Leyte is located in the Eastern Visayas region with a total land area of 5,901.5 sq. km. Its capital is Tacloban City and occupies the northern three-quarters of the island of Leyte. Leyte is located west of Samar, north of Southern Leyte and south of Biliran. To the west of Leyte across the Camotes Sea is the province of Cebu. 18. The total population of the province as of census year 2007 is 1,544,251. The people of Leyte are divided into two main groups, primarily by language. In the west and south are the Cebuanos, while in the north and east are the Waray-Waray. The Cebuanos have ties with Cebu, the most populous province in the Visayas; the Warays are more tied to Leyte and Samar. 19. Leyte is subdivided into 40 municipalities and three cities, two of which are administratively independent of the province. The municipalities are clustered into 6 congressional districts. Ormoc City is an independent component city, while the capital Tacloban was declared a highly-urbanized city in 2008. Both cities govern themselves independently of the province and their residents do not vote for elective provincial officials. Baybay attained cityhood in 2007 but reverted to its municipal status when the Supreme Court declared its city charter unconstitutional in 2008; however, Baybay would regain its city status following the reversal of the Supreme Court decision dated December 22, 2009. 20. The economy of Leyte depends on agriculture. Rice is farmed in the lower flatter areas specifically those around Tacloban, while coconut farming, for

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coconut oil is the main cash crop of the more mountainous areas. Fishing is also a major source of livelihood among residents. The province is the site of the largest geothermal plant in Asia, making it one of the resource-rich provinces of the Philippines.

13.1.4 Daang Maharlika Road (Liloan-Naval Highway) (Leyte Province) 21. The project road serves as a connecting link to Palo-Carigara-Ormoc road located at the south-eastern part of the Province of Leyte. Thus, the project area of the road project also covers the Province of Leyte. 22. The socio-economic profile of the Province of Leyte is as discussed above for Palo-Carigara-Ormoc road project.

13.1.5 Iloilo-Capiz Road (Provinces of Iloilo and Capiz)

23. Iloilo province is located in the Western Visayas region. Iloilo occupies the southeast portion of Island and is bordered by Antique to the west and Capiz and the Jintotolo Channel to the north. Just off Iloilo's southeast coast is the island of Guimaras, once part of Iloilo but now a province in its own right. Across the Panay Gulf and Guimaras Strait is Negros Occidental. Iloilo's capital is Iloilo City. The Province of Iloilo is the largest marshland in Western Visayas after the Sanderbans. The province is divided into two distinct geographic regions; the highlands of the Madia-as on the western border and the lowland plains which account for a larger portion of the province. Small islands east of its northernmost tip also dot the Visayan Sea - of these, Pan de Azucar and Sicogon are well-known. Iloilo is subdivided into 42 municipalities, 1 component city, and 1 highly urbanized city of Iloilo. 24. As of census year 2007, the province has a total population of 1,691,878. People from Iloilo are called Ilonggos. There are two local languages spoken in the province: Hiligaynon sometimes called Ilonggo, and Kinaray-a. Hiligaynon and variants of it are spoken in Iloilo city and a few towns of the province. Spanish is strictly a local language, at least in a historical way, but the number of natural Spanish speakers have declined strongly after WWII, and due to this, there are today many Ilonggos who do not consider it a local language. 25. Spanish architecture can be seen in old buildings in downtown Iloilo. Chinese Merchants and Indonesians were trading with the Ilonggos long before the Spaniards came. The ruling Spanish government encouraged these foreign merchants to trade in Iloilo but they were not given privileges like ownership of land. The Mestizo a class eventually was born from the intermarriages of the locals and Chinese merchants, Spanish with the local Melayu people. They later emerged as the ruling class of the Ilonggos. 26. Capiz province is located in the Western Visayas region. Its capital is Roxas City and is located at the northeastern portion of Panay Island, bordering Aklan and Antique to the west, and Iloilo to the south. Capiz faces the Sibuyan Sea to the north. It is known for its mother-of-pearl shells that have the same name and are used for decoration, making lampshades, trays, window doors, etc. Capiz is known for a popular local myth of Aswang, a generic name for ghouls, monsters and witches.

KEI in association with SKI and DCCD 13-5 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

27. Dubbed as the “Seafood Capital of the Philippines”, Capiz boasts of its 80- kilometer coastline and wide expanse of swampy lands easily converted into fishponds. It holds one of the richest fishing grounds and a major contributor in the aquamarine industry of the Philippines. Four big telecommunication companies offer telegraph, telex and telephone services. There are 33 banking institutions and 116 intermediaries operating in the province. 28. Farming and fishing are the primary sources of income of the people. The combined natural bounty of land and sea sustain a vibrant food industry. Primary agricultural raw products are rice, corn, coconut, sugarcane, banana and cut flower. Apart from a surplus of agricultural products, Capiz is also a major supplier of prawn and milk fish of the country. Other agro-industrial harvests include blue marlin, squid, oysters, shrimp, seaweed, squid and angel wings. Rich fish ponds attract investors to venture into prawn culture, prawn feed manufacture, seaweed farming and the distribution and processing of other marine products. A robust workforce of 445,246 operates with a literacy rate of 90.5%. The agricultural sector ensures the province as one of the wealthiest in the Western Visayas Region although progress is impeded by corruption. 29. Its relatively unexplored caves are said to have high deposits of mineral resources such as limestone, gold and metal.

13.1.6 Dumaguete North Road (Province of Negros Oriental) 30. Negros Oriental (also called "Eastern Negros") is a located in the Central Visayas region. It occupies the south-eastern half of the island of Negros, with Negros Occidental comprising the north-western half. It also includes Apo Island — a popular dive site for both local and foreign tourists. Negros Oriental faces Cebu to the east across the Tañon Strait and Siquijor to the south east. The primary spoken language is Cebuano, and the predominant religious denomination is Roman Catholicism. Dumaguete City is the capital, seat of government, and most populous city. A chain of rugged mountains separates Negros Oriental from Negros Occidental. Unlike its sister province, which belongs to the Western Visayas region, Negros Oriental belongs to the Central Visayas region. Negros Oriental faces Cebu to the east across the Tañon Strait and Siquijor to the south-east. The Sulu Sea borders it to the south. 31. Negros Oriental's total population as of the 2000 census was 1,126,061, making it the 20th most populous province in the country. 34.5% of the population is concentrated in the six most populous component LGUs of Dumaguete City, Bayawan City, Tanjay City, Bais City, Canlaon City, and Guihulngan. The province's average population density is 208 persons per km², lower than the national average of 276 persons per km². Population growth per year is about 2.11%, higher than the national average of 1.92%. 32. With its vast fertile land resources, Negros Oriental's major industry is agriculture. The primary crops are sugarcane, corn, coconut and rice. In the coastal area, fishing is the main source of income. People are also involved in cattle ranches, fish ponds and logging. There are also mineral deposits like gold, silver and copper. Negros Oriental is emerging as a technological center in Central Philippines with its growing business process outsourcing (BPO) and

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other technology-related industries. Negros Oriental is also becoming a notable tourist destination in the Visayas.

13.1.7 Dipolog-Oroquieta City Road (Provinces of Zamboanga del Norte and Misamis Occidental) 33. Zamboanga del Norte is located in the Zamboanga Peninsula region in Mindanao. Its capital is Dipolog City and the province borders Zamboanga del Sur and Zamboanga Sibugay to the south and Misamis Occidental to the east. The Sulu Sea lies to the northwest of Zamboanga del Norte. Zamboanga del Norte is the Largest province of Zamboanga Peninsula in terms of land area. 34. Zamboanga del Norte has a population of 823,130 according to the 2000 census. Its population density is 124/km². It is ranked 27th among the provinces both in terms of population and population density. The main language spoken is Cebuano. Zamboangueño/Chavacano, English and Tagalog are also spoken, indicative of a high level of literacy. The original and native Subanon language lives on, especially in the highlands. Zamboanga del Norte is subdivided into 25 municipalities and 2 cities. These are further subdivided into 691 barangays, and clustered into 3 congressional districts. 35. About half of the province's land area is devoted to agriculture. Corn, coconut, and rice are the major crops. The province being rich in marine and mineral sources, its fish production has accelerated through the development of fishponds. Commercial fishing has likewise steadily increased through the years, with the yellow fin tuna as the primary species. In 2006, a study by National Statistics Coordination Board (NSCB), found Zamboanga del Norte Province to be the Philippines's poorest with a poverty incidence rate of 64.6% in 2003, an increase from 47% in year 2000 statistical figures. 36. Misamis Occidental is located in the Northern Mindanao region. Its capital is Oroquieta City. The province borders Zamboanga del Norte and Zamboanga del Sur to the west and is separated from Lanao del Norte by Iligan Bay. 37. The dense population along the coast consists mainly of migrants from Cebu and Bohol, thus the major dialects are Cebuano and Boholano. The native Subanons live in the interior uplands. As of 2007, the total population of Misamis Occidental province is 531,680 with an average population density of 258.7 per sq. Km. 38. The province economy depends firstly on fishing, secondly on coconuts, thirdly on rice. The province has 169 kilometers of coastline fronting the rich fishing grounds of Panguil and Iligan bays. It also has the biggest area of brackish-water fishponds in the region. Tangub City is a fishing port on Panguil Bay famous for seafoods. Coconut is the chief crop. This is processed into oil, desiccated coconut, and coir, most of which are shipped to Cebu. Coconut processing is the main industry in Oroquieta City. Other crops grown are rice, corn, abaca, coffee, cacao and rubber.

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13.1.8 Butuan-Cagayan de Oro – Iligan Road (Provinces of Misamis Oriental and Agusan del Norte) 39. The Province of Misamis Oriental is one of the five (5) provinces of Northern Mindanao and situated along the northern coast of the resource-rich Mindanao Island. It is bounded on the north by Macajalar Bay, on the west by Iligan Bay; on the east by Agusan del Norte; and on the south and southwest by the provinces of Bukidnon and Lanao del Norte respectively. 40. The province has two (2) cities: its capital, the charter city of Cagayan de Oro and its component city of Gingoog. It has 24 municipalities: 14 on the eastern side and 10 on the western side. The farthest municipality on the western side is Lugait and on the eastern side is Magsaysay. Misamis Oriental has a total of 422 barangays. 41. The province has a total land area of 3,102.90 square kilometers. Claveria, the only land-locked municipality, has the largest area at 894.90 square kilometers while the smallest municipality is Binuangan with an area of 30.00 square kilometers. 42. The province is generally classified into forestland (47% of land area) and 53% are alienable and disposable lands. But as of 1996, DENR-10 reported that forestland now occupies only an area of 6,243 hectares. 43. For censal Year 2000, the province registered the largest population at 1.126 million people among the five (5) provinces of Northern Mindanao, with more or less 41% recorded as Cagayan de Oro’s population. The residents of the province are a mixture of Maranaw, Spanish, American and Chinese blood. 44. In 2000, Misamis Oriental has an average annual family income and expenditure of PhP89,640.00 and PhP70,989.00 respectively. Being the region’s educational center, one of the major assets of the province is its human resource. Highly educated and trainable labor force composed of young professionals, technical people and skilled workforce are readily available in the area. 45. Misamis Oriental is self-sufficient in some agricultural crops. Almost half (43%) of the province's total land area is planted to various crops like industrial and non-food, cereal, fruit and vegetable and rootcrops. The top five (5) agricultural products are coconut, banana, corn, rice, papaya and cassava. The province is also one of the country's major producers of coconut. This explains the presence of coco-based processing plants in the province such as Pilipinas Kao, Inc., Fiesta Brands, IndoPhil Oil Mills, Limketkai and Sons Milling Corporation, Pacific Activated Carbon Company. The hog population remains the highest among the livestock, comprising 72.25%, in 2002 while poultry production is showing an increasing trend brought about by the entry of leading multi-national food processors promoting contract-growing schemes. 46. Agusan del Norte is located in the Caraga region in Mindanao. Its capital is Cabadbaran and it borders Surigao del Norte to the north, Surigao del Sur to the east, Agusan del Sur to the south, and Misamis Oriental to the west. It faces Butuan Bay, part of the Bohol Sea, to the northwest.

47. The population of Agusan del Norte (excluding Butuan City) was 314,027 at the 2007 census, making it the country's 64th most populous province. The population density is 115 per km². Agusan del Norte is divided into 10

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municipalities and one component city. The highly-urbanized city of Butuan, being geographically located in Agusan del Norte, is traditionally grouped with the province, although it is governed independently from it. 48. The economy of Agusan del Norte is dominantly agricultural, and it is the nation's leading producer of rice. The province of Agusan del Norte is said to have many beautiful beaches such as in the town of Carmen, Buenavista, Nasipit, Cabadbaran City and all other towns in the province. It also has the majestic Mount Hilong-Hilong in Cabadbaran, one of the tallest in Agusan del Norte.

13.1.9 Bukidnon-Cotabato Road (Provinces of Bukidnon and North Cotabato)

48. Bukidnon is a landlocked province of the Philippines located in the Northern Mindanao region. Its capital is City. The province borders, clockwise starting from the north, Misamis Oriental, Agusan del Sur, Davao del Norte, Cotabato, Lanao del Sur, and Lanao del Norte. There are no seaports in the province, although there is an airport in Malaybalay City. The airport is currently closed. To get to Bukidnon, one must travel by land from Cagayan de Oro City in Misamis Oriental Province.

49. Bukidnon is a landlocked plateau in North Central Mindanao. It is bounded on the north by Misamis Oriental and Cagayan de Oro City; on the south by North Cotabato, Davao del Sur and Davao City; on the east by Agusan del Sur and Davao del Norte; and west by Lanao del Sur. It lies between parallels 7°25' and 8°38' North latitude and meridians 124°03' and 125°16' East longitude. Malaybalay City, the capital town, is about 850 kilometers by air from Manila and 91 kilometers by road from Cagayan de Oro City. It has two important landmarks, Mt. Kitanglad and Pulangi River. Mt. Kitanglad is 2,955 meters above sea level. Pulangi River, on the other hand, traverses through the northeastern and southern part of the province towards the Rio Grande of Mindanao.

50. The province's total land area is 829,378 hectares (8,293.78 square kilometers). It accounts for 59% of Northern Mindanao. Thirty-eight percent (38%) is alienable and disposable. The rest is classified timberland. It also accounts for 80 percent (80%) or 34 million metric tons of the region’s nonmetallic mineral deposits which include high grade white and red clay, gold, chromite, copper, serpentine, manganese, quartz and limestone deposits can also be found in the province.

51. Based on the National Statistics Office (NSO) Census last 2000, Bukidnon has a total population of 1,060,415. Males slightly edge the females with 546,234, accounting for about 52% of the province’s total population while females, with 514,181, account about 48%. It is expected that by 2010, the province of Bukidnon will have a total population of 1,344,301.

52. Bukidnon is an agricultural economy, it is a major producer of rice, maize, sugar, coffee, rubber, pineapple, tomato, flowers, cassava, and other fruits and vegetables. Bukidnon is considered by Filipinos to be the food basket of Mindanao. It is the major producer of rice and corn in the region. Plantations in the province also produce pineapples, bananas and sugarcane. As one of the major anchors in crop production, Bukidnon is moving forward towards establishing its position as a principal trader of rice, corn, sugar, potato, tomato and many other commercial and industrial crops. As the second largest

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producer of corn in the country, it reached a total production of 481,370 Mt. In year 2000, vast tracks of cornfields, rice paddles and sugar plantations are distributed all over the province. It is also a major producer of chickens, hogs and cattle. Almost all large firms operating in the province are into production or processing of these agricultural products.

53. Del Monte Philippines, Inc. (DMPI), Lapanday Diversified Products Corp. and Mt. Kitanglad Agri-Development Corporation are engaged in pineapple production. Dole Philippines (Skyland) and Mt. Kitanglad Agri-Ventures, Inc. are into banana production. DMPI is also engaged in cattle fattening. Bukidnon Sugar Milling Corporation (BUSCO) and Crystal Sugar Milling are into sugar milling and refining. Phil-Agro Industrial Corporation is in starch production. Menzi Agricultural Development is in cacao production. Agaropyta Phils. Inc., Bukidnon Greens Inc., FP Obrero Farms and ARDEM, Inc. are in cutflower production. Food manufacturing giants, San Miguel Foods Corp. (SMFI_PFC), Monterey Farms Corp., Swift Foods, Inc. have intensified their contract breeding and growing operations in the province. Valencia Rubbertex, Inc., an 80-20 Japanese-Filipino joint venture produces rubber boots and rubber shoes for Japan.

54. Bukidnon has already assumed its role as producer and supplier of fresh fruits and vegetables. These produce are either sold in domestic markets or exported to Japan and other neighboring countries. Fresh pineapples, banana, sugarcane and cutflower grown over the years are among its exports. New agri- business industries are still growing. Even export of rubber boots and shoes, an infant industry in the province is increasing tremendously. A wide variety of resource-based handicrafts is extensively produced from rattan, bamboo and wood. San Fernando is known for its rattan furniture. Bamboo baskets, wood wares and carvings, mats and other handmade products are ideal souvenir items.

55. North Cotabato, is a landlocked province located in the SOCCSKSARGEN region in Mindanao. Its capital is Kidapawan City and borders Lanao del Sur and Bukidnon to the north, Davao del Norte and Davao City to the east, Davao del Sur and Sultan Kudarat to the southeast, and Maguindanao to the south and west. It lies on the eastern part of Region XII and is strategically located in the central part of Mindanao. It is bounded on the north by the provinces of Lanao del Sur and Bukidnon, on the east by Davao City and Davao del Norte, on the west by Maguindanao and on the southeast by Sultan Kudarat and Davao del Sur. North Cotabato is strategically linked to the major "Arterial Road System" that traverses and connects the province to Davao City - SOCCSKSARGEN - Cotabato Corridor. The Cotabato via Kabacan - - , Bukidnon Sayre Highway meanwhile serves as its link to the Cagayan de Oro-Iligan City Corridor.

56. North Cotabato, with an area of 656,590 hectares representing 45.06% of the whole regional area, stretches west from Mt. Apo, which separates it from Davao, to the Piapayungan Range on its boundary with Lanao. In the midst of these uplands is the basin of the Pulangi or Rio Grande de Mindanao, the second longest in the Philippines at 300 km, which rises in Bukidnon and flows south to Maguindanao and Illana Bay. The province’s fertile plains are traversed by tributaries of this great river. Typhoons do not pass through North Cotabato and rainfall is evenly distributed throughout the year.

57. The first Visayan settlers reached the town of Pikit in 1913, and since then, Christian migrants have moved and lived in Cotabato, cohabitating the province with the local indigenous groups. 71% of Cotabato’s population are migrants

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from Luzon and the Visayas, while the remaining 18% belong to the indigenous communities Manobo, T'boli, and Maguindanao. The major languages spoken are Hiligaynon or Ilonggo (43%), Cebuano (31%), Maguindanao (16%), and Ilocano (10%), but a local spanish based creole, chavacano, is spoken.

58. Over the last nine years, North Cotabato has graduated from being a basket case to one of the Philippines most vibrant economies. In 1998, Cotabato was listed as the 5th poorest province in the country. Early in 2006, the National Statistics Coordination Board ranked it 39th among the countries more progressive provinces based on the results of its most recent survey on poverty incidence.

59. The province, since 2004, has become Region XII’s favorite investment area. The province registered a total of P397.49 million worth of investments in 2004, ranking second (2nd) only to General Santos City. This meant a 113% leap in investments, the biggest in the region as of February 2005 according to DTI-12. The Cotabato Province Investment Promotion Center (CPIPC) has recorded total investments made in the province from 2000 to 2004 at P901 million. Leading investments is the continuously expanding banana industry with DOLE-Stanfilco standing as the biggest player, having a total investment of P200 Million. Lapanday Global Fruits in Dallag, Arakan has a P50 million investment, while new player AJMR promises to put in P3 billion.

60. This influx of investments has consequently opened more job opportunities for our workers in the province. Dole-Stanfilco opened 6,346 jobs for residents of Makilala, Magpet, and Kidapawan City, while Lapanday has provided employment to 167 local residents. Some 3,000 jobs will meanwhile be generated by AJMR’s operation. New jobs generated by these investments from 200 to 2004 reached 68,595 new, and making Cotabato the leading province in job generation in the region, according to DOLE-12.

61. These developments have also ushered in added benefits- improvement of road networks, conversion of grasslands into productive areas, increase of micro-business establishments in the investment areas thus improving the quality of life of residents, and increased real property tax collection. It has also affected the age-long insurgency problem in areas like Makilala and Arakan, where the availability of a more stable source of income and better living conditions have somehow weakened the influence of Communist guerillas. Much of this phenomenon could be credited to the rediscovery of the New Cotabato by both local and foreign investors. While the province has had its share of bad publicity due to wars in the past, Cotabato is making a mark as a province that can offer a positive investment climate and sound business opportunities.

Table 13.1.1: Population and Income Class of Influenced Municipalities of Short Listed Roads for Asset Preservation in Tranche 1

Road Population Type of Asset Municipality/City Income class Length in as of 2007 Preservation Kilometers

1. Butuan-Cagayan de Oro – Iligan Road, Region 10, Province of 19.17 Asphalt overlay Misamis Oriental TAGOLOAN 56,499 2nd Partially Urban 2nd District P40,000,000 or more but less than P50,000,000

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Road Population Type of Asset Municipality/City Income class Length in as of 2007 Preservation Kilometers CAGAYAN DE ORO 553,966 1st Class Highly Urbanized CITY (Capital) P50,000,000 or more. 2 lone District OPOL 47,187 4th class Partially Urban 2nd District P20,000,000 or more but less than P30,000,000

2. Iloilo –Capiz Road ( Old Route), Region VI, Province of Iloilo 37.24 Asphalt overlay

CABATUAN 50,861 3rd Class Partially Urban 3rd District P30,000,000 or more but less than P40,000,000

JANIUAY 57,878 Partially Urban 3rd 2nd District P30,000,000 or more but less than P40,000,000

LAMBUNAO 63,300 3rd Class Partially Urban 3rd District P30,000,000 or more but less than P40,000,000

CALINOG 51,018 2nd Class Partially urban 3rd District P40,000,000 or more but less than P50,000,000

3. Bauang- Baguio Road, Region CAR, Province of Benguet 39.15 Asphalt overlay

SABLAN 10,890 5th Class Rural 2nd District P10,000,000 or more but less than P20,000,000 BAGUIO CITY 301,926 Highly Urbanized Urban 1st 1st District Class P50,000,000 or more. Province of La Union, Region III

BURGOS 8,261 5th Class Partially Urban 2nd District P10,000,000 or more but less than P20,000,000

BAUANG 69,837 1st Class Partially Urban 2nd District P50,000,000 or more.

NAGUILIAN 45,232 1st Class Partially Urban 2nd District P50,000,000 or more.

4. Olongapo – Bugallon Road 140.963 Asphalt overlay Region 111, Province of Zambales

OLONGAPO 227,270 1st Class Highly Urbanized CITY Urban 1st district P50,000,000 or more.

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Road Population Type of Asset Municipality/City Income class Length in as of 2007 Preservation Kilometers

SUBIC 77,118 1st Class Partially Urban 1st District P50,000,000 or more.

CASTILLEJOS 42,910 4th Class Partially Urban 1st District P20,000,000 or more but less than P30,000,000

SAN MARCELINO 29,052 3rd Class Partially Urban 1st District P30,000,000 or more but less than P40,000,000

SAN NARCISO 24,856 4th Class Partially Urban 2nd District P20,000,000 or more but less than P30,000,000

SAN FELIPE 21,322 4th class Partially Urban 2nd District P20,000,000 or more but less than P30,000,000

CABANGAN 21,519 4th Class Partially Urban 2nd District P20,000,000 or more but less than P30,000,000

BOTOLAN 51,675 1st Class Partially Urban 2nd District

IBA (Capital) 44,344 3rd Class Partially Urban 2nd District P30,000,000 or more but less than P40,000,000

PALAUIG 30,747 3rd Class Partially Urban 2nd District P30,000,000 or more but less than P40,000,000

MASINLOC 40,603 2nd Class Partially Urban 2nd District P40,000,000 or more but less than P50,000,000

CANDELARIA 24,243 3rd Class Partially Urban 2nd District P30,000,000 or more but less than P40,000,000

SANTA CRUZ 52,202 2nd Class Partially Urban 2nd District P40,000,000 or more but less than P50,000,000 5. Dipolog (Zamboanga del Norte) – Orquieta (Misamis 49.893 Asphalt overlay Occidental) Region IX RIZAL 14,721 5th Class Partially UrbanP10,000,000 or more but 1st District less than P20,000,000

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Road Population Type of Asset Municipality/City Income class Length in as of 2007 Preservation Kilometers

DAPITAN CITY 72,792 3rd Class Component Partially Urban 1st District P30,000,000 or more but less than P40,000,000

DIPOLOG CITY 113,118 3rd Class Component Partially Urban 2nd District P30,000,000 or more but less than P40,000,000

KATIPUNAN 40,496 3rd Class 2nd District P30,000,000 or more but less than P40,000,000s Partially Urban

6. Bukidnon- Cotabato Road, Region XIII 47.61 Asphalt overlay

CARMEN 65,670 4th class Rural 1st District P20,000,000 or more but less than P30,000,000

KABACAN 73,991 1st Class Partially Urban 1st District P50,000,000 or more.

7. Palo-Carigara- Ormoc Road, Regon VIII 22.888 Asphalt overlay

PALO 56,781 Partially Urban 1st District SANTA FE 15,905 5th Class Partially 1st District Urban P10,000,000 or more but less than P20,000,000 ALANGALANG 43,494 3rd Class Partially Urban 1st District P30,000,000 or more but less than P40,000,000

8. Daang Maharlika Road ( Liloan-Naval Highway), Region VII, 14.86 Province of Leyte

PALO 56,781 Partially Urban 1st District

TANAUAN 47,426 3rd Class Partially Urban 1st District P30,000,000 or more but less than P40,000,000

TOLOSA 16,839 5th Class Partially Urban P10,000,000 or more but less than P20,000,000

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13.2 Socio-Economic, Poverty, Gender and Ethnic Analysis

62. Based on the surveys, focus interviews and observation, the Poverty, Gender and Ethnic analysis (ADB’s “Social Analysis for Transport Projects” 2008) was referred to, to gain insight into the characteristics of households living in the periphery of the identified road network as part of Tranche 1 of DPWH’s road preservation project. The purpose of which was to find out their respective relationship to the proposed project during the implementation of the said project. 63. The proposed road activity will use the overlay technique to preserve the integrity of the identified road networks as indicated by the design engineers of the project. This activity they indicated would last only for a maximum of twelve (12) hours and will be implemented by the District Engineers’ Road Maintenance Division. In this context, the consequential impacts on poverty, social and ethnicity of these activities would be minimal, thus, maintaining generally a degree of status quo on the life-ways of all sectors of the populace within the road areas of operation and implementation. Although, this may be the case, the sectoral stakeholders’ analysis is done to identify the possible minimal impacts and recommend appropriate mitigating measures. Due to this situation, there will be no occurrence of HIV/AIDS, human trafficking and etc. as there will be no migrant workers. 64. Likewise, the Indigenous peoples living within the road networks enjoy all the privileges as provided by the Indigenous Peoples Rights Act (IPRA) of 1997 and monitored by the Regional National Commission of Indigenous People. Although a minimal impact may occur, appropriate mitigating measures are recommended (see matrix). Thus at no instance will these peoples be disadvantage. 65. The situation of the road networks from ocular observation are generally as follows:

 66. Butuan-Cagayan de Oro-Iligan Road (urban poor/ women/disadvantaged groups). The stakeholders along the road network starting from the town of Tagoloan entering Bugo towards the first Barangay of Cagayan De Oro are mostly commercial. It is a four- lane highway and is heavily travelled from those coming from Butuan and Bukidnon. The convergence of traffic has made the road filled with sporadic encroachments of transient vendors and informal settlers. After the bridge, traversing the CDO river traffic is reduced to minimal and residents in the area are generally engaged in big commercial business. (see matrix for the stakeholders’ analysis).

 67. The Iloilo–Capiz road (old route). - (rural poor/women/ disadvantaged groups). The stakeholders along this road network are generally farmers with areas of commercial activities along the town centers. Most people going to Roxas tend to use the route, as it is shorter. The residents generally use the road as farm to market road. Incidental encroachments occur in the populated areas of the town. No incidence of households to be displaced. (see matrix for the stakeholders’ analysis).

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 68. Bauang-Baguio Road (rural poor/IPs). Residents living along the road are mostly IP (Ibalois) vendors who sell their farm products and handicrafts. From Sablan towards Baguio some houses in the populated areas are built flushed to the pavement beyond the allowable distance. Based on the location of the road, it traverses through IP communities and have been used by them as access in the transport of their farm products and their movement to the different parts of the province. (see matrix for the stakeholders’ analysis).

 69. Olongapo-Bugallon Road (rural poor/women/disadvantaged groups). District 1 Olangapo–San Marcelino road (rural-urban poor) is highly populated especially in the town areas were transient vendors tend to encroach into the main road while District 2 – San Felipe–Santa Cruz road are minimally populated areas with expanses of farm lands and vegetation. Most houses along the road are owned by farmers with business establishments concentrated in the town center. (see matrix for the stakeholders’ analysis).

 70. Oroquieta-Katipunan Road (rural-urban poor, IPs, women/ disadvantage groups). Most of the populace living along the road way are temporarily encroached into the road right-of-way within the populated areas of Brgy. Mapang, Rizal and ends up in Brgy. Larayan in City of Dapitan with sporadic distribution of Subanon IPs. On the other hand, most of the houses along the identified road network start at Brgy. Sicayab, Dipolog City and ends at Brgy. Oyan, Katipunan. Many of the road sections have the presence of temporary encroachers into the road right-of-way. The Subanons have live for so long in this road network and has made them mobile particularly in the marketing of their farm and artifacts as well in their access to different parts of the province.

 71. Bukidnon-Cotabato Road (rural poor/IPs/women/ disadvantaged groups). The road network is generally inhabited by farmers with the presence of IPs (Manuvu Arumen). They generally use the road for transporting of their farm products and likewise their supplies from town. The road, for them, has been their connection to the other parts of the province, marketing their farm products and their mobility to these different areas (see matrix for the stakeholders’ analysis).

 72. Palo-Carigara-Ormoc Road (rural-urban poor, women/ disadvantaged groups). The area is rural with residents along the road network who generally vendors and fisher folks; Daang Maharlika Road (Liloan-Naval Highway). The populace within the road way is generally farmers with business establishments in the town center (see matrix for the stakeholders’ analysis). 73. Although this is may be the situation, the results of the survey are examined to find out the situation of the stakeholders, vis-a-vis, demographic characteristics; household economic activities; cropping pattern; household income; consumption pattern; possession of assets/livestock; indebtedness; coverage under development schemes; health status; migration; status of women; education; amenities; structure of building information ;and, transport usage. It also tries to identify coping strategies to minimize or eliminate

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negative impacts of activities on stakeholders if any. (Annex 8 - Results of Socio-Economic Survey: Poverty, Gender and Ethnicity). 74. The stakeholders were identified randomly from households within the stretch of the road network identified for asset preservation Tranche 1. These are Region 10 Butuan-Iligan Road; Region 6 Iloilo–Capiz Road (old route); Region 1 & CAR Bauang-Baguio Road; Region 3, Olongapo–Bugallon Road; Region 9, Dipolog-Orquieta Road; Region 12, Bukidnon-Cotabato Road; Region 8, Palo-Carigara-Ormoc Road and Daang Maharlika Road (Liloan–Naval Road). 75. The result of stakeholders analysis by sector is summarized in Table 13.1.2.

Table 13.1.2: STAKEHOLDER’S ANALYSIS BY SECTOR

Impact of the Proposed action to Recommended Course Proposed Action reduce or Mitigate the Stake holder Group of Action (asphalt overlay) on Negative Impact on the (Mitigating Measures) the Stakeholder Group Stakeholder Group

Rural Poor Families POSITIVE/BENEFIT Poverty Alleviation  DPWH in concurrence i.e. farmers/fisher with the contractors folks  Improve road condition  Contractors inform and prepare an Intensive  Faster movement of consult the identified Information, Education (all roads net works farm products to poor households within and Communication except Butuan-Iligan market the area of operation the Plan highlighting the Road ) date and the nature of alternative areas for  Reduced transportation road preservation cost economic activities activities through the during road  Easy access to social Municipal Engineers preservation activities services Office and the Barangay and the long-term  Access to schools Chairman benefits. NEGATIVE  Provide alternative areas  Inform local residents  Temporary disruption for access for their on community-based of traffic in the area economic activities and road maintenance and affecting economic schedules of road management. activities within preservation activities. maximum time of 12  Priority hiring of local hours poor in the road  Minimal noise and air preservation activities if pollution within needed. maximum time of 12 hours

Urban poor i.e. POSITIVE/BENEFICIAL Poverty Alleviation  DPWH in concurrence Transient vendors  Improve road  Contractors Inform and with the contractors (CDO)/ formal condition consult the identified prepare an Intensive Information, encroachers( Butuan-  Faster movement of poor households within Iligan Road) the area of operation the Education and commercial products Communication Plan to centers date and the nature of construction activities highlighting the  Reduced through the Municipal alternative areas for transportation cost Engineers Office and the economic activities  Easy access to Barangay Chairman. during road social services preservation  DPWH in concurrence activities and the  Access to schools with the Municipality/ long-term benefits. NEGATIVE City inform and consult the informal transient  Temporary dislocation vendors and formal  Inform local residents of informal transient encroachers about the on community-based vendors/formal temporary disruption of road maintenance and encroachers for a their economic activities management. maximum of 12 hours and provide with due to the road alternative areas to do preservation activities their business.

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Impact of the Proposed action to Recommended Course Proposed Action reduce or Mitigate the Stake holder Group of Action (asphalt overlay) on Negative Impact on the (Mitigating Measures) the Stakeholder Group Stakeholder Group

 Temporary disruption  Priority hiring of some of economic activities local poor in the road within a maximum time preservation activities if of 12 hours, due to needed. road preservation activities.

Disadvantage  POSITIVE/BENEFICI Gender/ Disadvantage  DPWH in concurrence Sector AL Sector with the Municipal/City (Women, Elderly,  Improve road condition  DPWH in concurrence Social Work and Development of the Youth)  Faster movement of with the Municipal/City Social Work and Municipality/ City All road networks market products to implement the GAD market Development of the Municipality/ City provisions for women  Reduced transportation inform and consult the affected by cost affected women infrastructure projects  Easy access to social including the other on gender/user services disadvantage sectors responsive infrastructure design  NEGATIVE about the project to prepare them of the and plans during  Temporary disruption temporary disturbance. project implementation of traffic in the area as mandated by affecting economic  Provide them with Government. activities within the alternative areas for their  DPWH in concurrence maximum time of 12 economic activities such with the contractors hours as vending of food and other products. prepare an Intensive  Minimal Noise and air Information, Education pollution within the and Communication maximum time of 12 Plan highlighting the hours alternative areas for economic activities during road preservation activities and the long-term benefits.  Inform local sectoral residents on community-based road maintenance and management.

Indigenous People  POSITIVE/BENEFICIAL Ethnicity  DPWH in concurrence a. Ibalois (Baguio-  Improve road condition  DPWH District Office in with the contractors prepare an Intensive Bauang Road)  Faster movement of concurrence with the contractors inform and Information, Education farm products to and Communication Plan market consult the IP households b. Manobo Arumen within the area of operation the alternative areas (Bukidnon-Cotabato  Reduced transportation the date and the nature of for economic activities Road) cost road preservation activities during road  Access to Schools through the Municipal preservation activities and the long-term c. Subanen  Easy access to social Engineers Office, the Municipal National benefits. This will all be (Orquieta- Dipolog road) services Commission of Indigenous done in the context of the  NEGATIVE People (IPRA Law of 1997) culture and language of  Temporary disruption of and the Tribal Chieftain the specific Indigenous People through the traffic in the area affecting  Provide alternative areas for economic activities with a National Commission of their economic activities and Indigenous People. maximum time of 12 schedules of road hours. preservation activities not in  Inform local IPs on  Minimal noise and air conflict with cultural community-based road pollution with a maximum practices maintenance and time of 12 hours. management.

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14. RESETLLEMENT FRAMEWORK (Tranches 2 & 3)

14.1 Introduction 1. This Resettlement Framework (RF) is prepared for road sections under Tranches 2 and 3. As mentioned in the Interim Report, Tranches 2 and 3 include road sections that, in addition to those for asset preservation in Tranche 1, also require more extensive rehabilitation and perhaps improvement. For this Project, ADB’s policy is to negotiate one Tranche at a time; i.e., the GOP and ADB shall only start negotiating the budget for Tranche 2 once the road projects in Tranche 1 comes close to completion. As such the final name and number of road sections to be included is not finalized yet.

2. On the other hand, there are no identified permanent impacts on land acquisition and resettlement and there will be no dislocations, nor significant effects on livelihood anticipated in the Tranche 1 road projects since construction activities shall mostly involve asphalt overlaying, drainage maintenance, repainting, and restoration of traffic information and safety signs. Although road reconstruction through re-blocking shall be undertaken at some sections, these are located in hilly areas with no observed human settlements.

3. As in other road improvement projects involving widening, realignment, or additional Right-of-Way, adverse social impacts as a result of involuntary resettlement can be expected. Some of these include loss of shelters, livelihood, disintegration of economic and social networks, and limited access to social services.

4. In a developing member country such as the Philippines, land acquisition and resettlement (LAR) policy is relatively young, i.e., it was officially prescribed by DPWH through Department Order No. 327, in December 2003. In fact prior to its issuance, foreign-assisted projects, which required application of said policy through the preparation of Resettlement Plans encountered difficulties during project implementation. As stated in the Validation Report for the ADB- Assisted Philippine Sixth Road Project, one of the reasons for its 47 months delay is because “Land acquisition and resettlement (LAR) was a major issue. Overlooked during project preparation, this issue was very hard to rectify during implementation. The Government at first refused to agree to ADB’s conditions; then, once agreement was reached, implementation and monitoring proved difficult.”

5. Most of the road sections under the present PPTA are geographically dispersed over the islands of Luzon, Visayas, and Mindanao making it difficult to implement and administer. Add to this is the fact that, since it is natural for long road alignments to cross several administrative boundaries, delineation of institutional responsibilities would be tough.

6. Based on the foregoing it is, thus, important that a wide-ranging RF be drawn to ensure that PAFs are not disadvantaged by the Project. The ensuing RF shall be agreed upon between the GOP and ADB. It shall establish compensation and other entitlements for all Affected Persons (APs). Its main objective is to outline the necessary steps to prepare satisfactory Resettlement Plans for the remaining road sections under Tranches 2 and 3.

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14.2 Project Impacts 7. From a long list of 40 road sections to be considered for Tranches 2 and 3, 32 are included in the short list. Envisioned positive project impacts include: (i) improved safety, increased capacity, shorter distances for traffic attracted from alternative roads, (ii) reduced travel times to hospitals and schools, (iii) improved employment opportunities, and (iv) better opportunities for agriculture, trade, and tourism. These direct and indirect positive impacts are expected to reduce poverty levels in areas benefited by the respective road projects.

8. Just like any other road network development/improvement project, adverse environmental and social impacts are also expected. These consist of: (i) encroachment to forested areas which may lead to denudation of its vegetative cover; (ii) conversion of prime agricultural lands into urban/industrial areas as a result of improved access; (iii) if involuntary resettlement cannot be avoided, loss of homes, livelihood, and social and economic networks would affect vulnerable groups----the poor, women headed families, the elderly, and the IPs.

14.3 Policy and Legal Framework 9. This RF shall provide a tool, which will help ensure that all Affected Persons (APs) along the road sections in Tranches 2 & 3, regardless of their number, promptly receive the appropriate assistance under each sub-project. As such, they would have a good chance of attaining a socio-economic stature that at least would be equivalent, if not better than what would have prevailed without the Project. This can be achieved by diligently adhering ADB’s policy on Involuntary Resettlement, whereby APs are be fully informed, closely consulted, compensated for their losses, assisted to regain possession/ownership of replacement land (if available), reestablish their means of livelihood, and participate in any decision making that will affect their lives. APs who do not hold legal rights to the land they are occupying shall be given special consideration. The following basic principles of the ADB IRP, in accordance with OM Section F2/FB, issued on 25 September, 2006, shall be taken into careful consideration during the subsequent preparation of Resettlement Plans:

(i) Involuntary resettlement will be avoided whenever feasible. (ii) Where population displacement is unavoidable, it should be minimized. (iii) All lost assets acquired or affected will be compensated. Compensation is based on the principle of replacement cost. (iv) Each involuntary resettlement is conceived and executed as part of a development project or program. APs need to be provided with sufficient resources to re-establish their livelihoods and homes with time-bound action in coordination with civil works. (v) APs are to be fully informed and closely consulted. (vi) APs are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. (vii) The absence of a formal title to land is not a bar to ADB policy entitlements.

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(viii) APs are to be identified and recorded as early as possible to establish their eligibility, through a census which serves as a cut-off date, and prevents subsequent influx of encroachers. (ix) Particular attention will be paid to vulnerable groups including those without legal title to land or other assets; households headed by women; the elderly or disabled; and indigenous groups. Assistance must be provided to help them improve their socio-economic status. (x) The full resettlement costs will be included in the presentation of project costs and benefits. (xi) Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and to ensure compliance with involuntary resettlement planning and implementation. 10. To assess whether the GOP can considerably concur with the above mentioned principles, prevailing Philippine Republic Acts along with its corresponding Implementing Rules and Regulations (IRR), Presidential Decrees, Executive Orders, Rules of Court, Ministry/Department Orders, and Department Policies on land ownership and Infrastructure Right-of-Way (IROW) acquisition were reviewed. Since the 1930’s, said legal documents have been amended and repealed several times to improve the procedures, minimize irregularities, and avoid delays in project implementation. Since previous laws have been superseded, only the most current pieces of legislation shall be presented in considerable detail. The legal bases for RAP implementation, together with its salient points are found in the IROW Process Design Report under the NRIMP I project of the DPWH (Please refer to Table 14.3.1).

Table 14.3.1: Government Policies Pertaining to Land Acquisition Year Policy Title/Salient Features 2007 LARRIP Land Acquisition, Resettlement, Rehabilitation and Policy, 3rd Indigenous Peoples’ Policy (LARRIPP) Ed.  Includes the DPWH’s Indigenous Peoples’ Policy based on the Indigenous Peoples’ Rights Act (IPRA) and the National Commission on Indigenous Peoples (NCIP) Administrative Order No. 1, series of 2006, or the Free and Prior Informed Consent Guidelines of 2006.  Covers all Indigenous Peoples (IPs) or Indigenous Cultural Communities (ICCs) whether they are living inside or outside an area covered by a Certificate of Ancestral Domain Title (CADT) or Certificate of Ancestral Land Title (CALT), including those that have pending applications to be declared as ancestral domain.  In general no Indigenous Peoples Action Plan (IPAP) is required for projects that are voluntarily solicited or initiated by IPs. Nevertheless, they are still eligible to receive compensation and entitlements mentioned in Chapter III of the LARRIPP.  Provides a comprehensive policy on provision of safeguard instruments to IPs/ICCs as described in Chapter IV and Table IV.2 of the LARRIPP.

2003 D.O. 327 “Guidelines for Land Acquisition and Resettlement Action Plans (LAPRAPs) for Infrastructure Projects”  LAPRAP document shall describe the project, expected impacts and mitigating measures, socio-

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Table 14.3.1: Government Policies Pertaining to Land Acquisition Year Policy Title/Salient Features economic profile of APs, compensation package, timetable of implementation, institutional arrangements, participation, consultation, and grievance procedures.  LAPRAP shall be prepared using inputs from the IROW Action Plan, the census and socioeconomic survey conducted, detailed engineering study, and parcellary survey results.  LAPRAP shall be the basis for qualifying and compensating APs for lands, structures and/or improvements, that are partially or fully affected by the Department’s infrastructure projects.  Provision of resettlement sites shall be the responsibility of the Local Government Units (LGUs) concerned, with assistance from the concerned government agencies tasked with providing housing.  An Indigenous People’s Action Plan (IPAP) shall be formulated for indigenous peoples (IP) if they are affected by the Department’s infrastructure projects. 2003 D.O. 5 “Creation of the Infrastructure Right of Way and Resettlement Project Management Office (IROW-PMO) and the Implementation of the Improved IROW Process”  Implementing Office (IO) shall ensure that IROW costs are always included in project budgets.  The IO shall provide an estimated cost breakdown of each project to the IROW and Resettlement PMO and the CFMS prior to any disbursement of funds. The first priority of the budget for a project shall be all costs prior to construction.  If ROW costs differ from the approved ROW budget after detailed design has been finalized, a budget adjustment shall be approved.  A Land Acquisition Plan and Resettlement Action Plan (LAPRAP) shall be prepared for all projects, whether local or foreign funded, that will require Right-of- Way (ROW) acquisitions, using a standardized compensation package.  The determination of Affected Persons (APs) and improvements shall be based on the cut-off date, which is the start of the census of APs and tagging for improvements.  The IO shall prepare the final as-built ROW Plan upon completion of the project, for submission to the IROW and Resettlement PMO. 2000 I.R.R. of “Implementing Rules and Regulations of R.A. 8974 (An Act R.A. 8974 to Facilitate the Acquisition of Right-of-Way, Site, or Location for National Government Infrastructure Projects and for Other Purposes)  Set the 1st offer for negotiated sale of land (just compensation) as the price indicated in the current zonal valuation issued by the BIR for the area where the property is located.  Set the valuation of improvements on the land to be acquired using the “replacement cost method”, which is defined as the “amount necessary to replace the improvements/structures based on the current

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Table 14.3.1: Government Policies Pertaining to Land Acquisition Year Policy Title/Salient Features market prices for materials, equipment, labor, contractor’s profit and overhead, and all other attendant costs associated with the acquisition”.  Provided for the engagement of government financing institutions or private appraisers to undertake appraisal of the land and/or improvements/structures, to determine its fair market value.  Tasked the NHA to establish and develop squatter relocation sites, including provision of adequate utilities and services, in anticipation of squatters that have to be removed from the ROW in the site of future infrastructure projects. 2000 R.A. 8974 “An Act to Facilitate the Acquisition of Right-of-Way, Site, or Location for National Government Infrastructure Projects and for Other Purposes”  Prescribed new standards for the assessment of the value of the land subject of expropriation proceedings or negotiated sale, namely: o The classification and used for which the property is suited; o The size, shape or location, tax declaration and zonal valuation of the land; o The price of the land as manifested in the ocular findings, oral, as well as documentary evidence presented; o The reasonable disturbance compensation for the removal and/or demolition of certain improvement on the land and for the value of improvements thereon; o The developmental costs for improving the land; o The value declared by the owners o The current price of similar lands in the vicinity; and o Such facts and events as to enable the affected property owners to have sufficient funds to acquire similarly-situated lands of approximate areas as those required from them by the government, and thereby rehabilitate themselves as early as possible.  Mandates the BIR to come up with updated zonal valuation for areas subject to expropriation proceedings, within 60 days from the date of expropriation case.  Mandated the DPWH (as Chair) and other agencies involved in ROW acquisition to adopt the necessary Implementing Rules and Regulations for the equitable valuation of the improvements and/or structures on the land to be expropriated. 1999 DPWH Policy “Policy Framework for Land Acquisition, Resettlement and Framework Rehabilitation” for LARR  Government projects must serve the common good  All efforts must be exercised to ensure that:

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Table 14.3.1: Government Policies Pertaining to Land Acquisition Year Policy Title/Salient Features o Adverse social impacts are avoided, minimized, and/or mitigated; o Everybody, including Affected Persons (APs), will benefit from the projects; o APs are provided with sufficient compensation and assistance for lost assets which will assist them to improve or at least maintain their pre-project standard of living; o Project stakeholders (which include APs) are consulted regarding the projects’ design, implantation, and operation.  Only those APs found to be residing in, doing business, or cultivating land or having rights over resources within, the project area as of the date of the census surveys (i.e., cut-off date) are eligible for compensation for lost assets. 1997 Rule 67, “Rule 67 – Expropriation” Rules of Civil  Gives the plaintiff (DPWH) the right to take or enter Procedure upon the possession of a real property involved if a deposit is made with an authorized government depositary an amount equivalent to the assessed value of the property for purposes of taxation to be held by such bank subject to the orders of the court. 1992 R.A. 7279 Urban Development and Housing Act of 1992”  Uplift the conditions of the underprivileged and homeless citizens in urban areas and in resettlement areas by making available to them decent housing at affordable cost, basic services, and employment opportunities.  Provide for an equitable land tenure system that shall guarantee security of tenure to Program beneficiaries but shall respect the rights of small property owners and ensure the payment of just compensation. 1992 R.A. 7279  Eviction or demolition may be allowed under the following situations: o When persons or entity occupy danger areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines, waterways, and other public places such as sidewalks, roads, parks, and playgrounds. o When government infrastructure project with available funding are about to be implemented. o When there is a court order for eviction and demolition.

 If eviction or demolition will involve underprivileged and homeless citizens, as defined in the same law, they should be properly relocated prior to any dismantling of properties.  Section 5 of the IRR directs the LGU or the government agency authorized to demolish to create a Task Force on Relocation and Resettlement to ensure smooth and effective implementation of all relocation and resettlement operations.

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Table 14.3.1: Government Policies Pertaining to Land Acquisition Year Policy Title/Salient Features  After effectivity of R.A.7279, barangay, municipal ot city government shall prevent construction of any kind of illegal dwelling units or structures within danger areas.  LGUs shall prepare a comprehensive land use plan for their respective localities in accordance with the provisions of the Act. 1991 R.A. 7160 “Local Government Code of 1991”  An LGU may exercise the power of eminent domain for public use, purpose, or welfare of the poor and the landless such as for socialized housing, upon payment of just compensation pursuant to the provisions of the Constitution and pertinent laws. 1988 E.O. 239 “Creating Appraisal Committees in Metropolitan Manila Area”  Created the City Appraisal Committee and Municipal Appraisal Committees in the Metropolitan Manila area for assessment of fair market value of real property in Metro Manila.  The government shall deposit 10% of the amount of just compensation provided under 1533, five (5) days after which the court shall issue Writ of Possession (WOP).  Payment for improvement shall be based on the physical inventory report proposed and certified by an affidavit of the claimant and affidavit of two (2) adjoining landowners. 1978 P.D. 1533 Establishing Uniform Basis for Determining Compensation  The government is entitled to immediate possession of properties and improvements and the power of demolition upon filing of the petition for expropriation and the deposit of 10% of compensation amount determined by this decree in the Philippine National Bank (PNB). 1936 C.A. 141 “Commonwealth Act 141”  Citizens of the Philippines acquire public land through public auction. Article of free patent is provided for natural born citizen of the Philippines who continuously occupied and cultivated the land since 1926 or before.  Land acquired through this law is subject to a Right- of-Way not exceeding 20 m in width for public use with damages paid for improvements only; This ROW limit is further expanded to 60 m by P.D. 635. Note: R.A. – Republic Act P. D. – Presidential Decree E.O. – Executive Order I.R.R. – Implementing Rules and Regulations D.O. – Department Order

Source: DPWH ESSO, 2007. Land Acquisition, Resettlement, Rehabilitation and Indigenous Peoples Policy, 3rd Edition. Herrera, A.N. 2003. IROW Process Design Report. National Roads Improvement and Management Program Phase I.

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14.4 Bridging the Gaps between GOP Policy and ADB’s IRP 11. It is important to note that although the abovementioned legal documents are able to address major resettlement concerns, some limitations are still apparent with respect to compliance with the basic principles of ADB’s Involuntary Resettlement Policy (IRP). The following paragraphs describe these limitations.

12. Based on existing rules and regulations, each government agency has its own mandate upon which policies are drawn out in order to achieve its goals. These policies are mostly in the form of Department Orders and Memorandum Circulars. With regards to exercising the power or eminent domain either through negotiated sale or expropriation proceedings, DPWH is limited to acquire land if the purpose is to develop infrastructure projects such as roads and bridges, water supply, flood control, and other undertakings within its mandate. As such, the Department has no legal personality to acquire land, nor provide basic facilities and services for resettlement purposes, or for any other purposes outside its mandate. In fact, Section 1.5 of D.O. No. 327 explicitly states that the concerned Local Government Units (LGUs), the Housing and Urban Development Coordinating Council (HUDCC), National Housing Authority (NHA), and other concerned agencies are mainly responsible for the development of resettlement sites.

13. Since these NGAs are also servicing other line and attached agencies, allocation of housing units to qualified beneficiaries become very cumbersome and often results into delayed resettlement of APs. As long as there is no clear- cut procedure in form of an inter-agency MOA between DPWH and these NGAs or better yet an Executive Order from the President, relocation of displaced communities will remain as a section in the RP report.

14. Section 1.6 of D.O. No. 327 states that where relocation is necessary, “the receiving LGU (under whose political jurisdiction the relocation site will be located) may seek assistance from the DPWH for the provision of access roads to the relocation site, and other government agencies for the provision of basic facilities and services”. This implies that the primary role of the Executing Agency, which is DPWH, is just to provide the access road, while provision of other basic social services such as water and power supply, health centers, and access to schools, public market, and places of worship are passed on to other government agencies. This may, to some extent be achievable in major cities and first to second class municipalities with high Internal Revenue Allotments (IRAs). For lower class recipient LGUs, it becomes a burden since the competition for basic social services becomes stiffer as a result of the influx of families to be resettled.

15. Rehabilitation Assistance, as prescribed in both LARR Policy of 1999 and LARRIPP, 3rd Ed. of 2007, at P15,000.00 per family per municipality, in the form of skills training and other development activities, is deemed insufficient to ensure restoration of pre-project socio-economic condition of affected families. As experienced in other government and public-private sector investment program projects, provision of skills training only “equips” the AFs in its endeavor to recover from financial losses. Income restoration couldn’t really be achieved without financial aid. This may be in the form of direct soft loans, as part of loan financing as provided for in Section E - ADB’s Assistance to the Borrower of OM Section F2/BP, or through provision of access to micro credit organizations/institutions (government and private). In any case, the type, method, and amount of financial aid or income restoration budget must be clearly spelled out in the resettlement plan to be prepared.

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16. The rental subsidy equivalent to the “prevailing average monthly rental for a similar structure of equal type and dimension to the house lost”, as mentioned in Chapter III Section 4 of the LARRIPP is also deemed insufficient for the affected family to find a structure of equal type and dimension because the prevailing practice of lessors for the past few years is to require at least one (1) month deposit and one (1) month advance. Others even require two (2) to three (3) months advance payment. For this reason, a rental subsidy equivalent to three (3) times the average monthly rental for a similar structure type and dimension is recommended.

17. DPWH’s LARR Policy of 1999 is silent on the integration of resettlers into host communities. Even the 3rd Edition (2007) of the Department’s LARRIPP did not describe in detail procedures to be undertaken in order to organize or ready the host communities, although it was mentioned in passing that “efforts must be made to prepare the receiving community” in page 22, Chapter IV, referring to cases when IPs have to be resettled outside the affected ancestral domain.

18. As experienced in a major railway project in Luzon sometime in 2006, truckloads of resettlers were surprised when the path going to their relocation site was barricaded with burning tires. It was found out that the barricades were set up by members of the recipient community who were strongly opposing their arrival. To avoid further chaos, the organizers, together with representatives from an NGO decided to go back and abort the scheduled relocation.

19. In a relocation site in Pandi, Bulacan, sometime in 2004, resettlers displaced from an expressway project complained of “discrimination” by members of the host community. Although they hold legal rights to the land, they were still referred to as “squatters” and were not given fair treatment. For example, after waiting in a long queue in fetching water from the deep well, they were always told to give way to “legal occupants” who need not queue. The situation was very awkward considering that the said deep well was built for their purpose, i.e., as part of site development for their relocation site. The resettlers said they couldn’t do anything but accept the situation because they are poor and “new” in the community.

20. In these cases, resettlers as well as host populations are unfairly put in situations they wouldn’t be in had there been efforts made to prepare both parties for eventualities as a result of their integration into one community. To avoid or at least minimize these type of conflicts, the following are recommended:

(i) During selection of relocation sites, resettlers as well as the host population should be encouraged to participate in social preparation activities such as consultation meetings and dialogues; It must be explained during meetings that the resettlers will not be “squatting” but would be holding legal rights to the lots they will occupy;

(i) Social services and infrastructures to be provided at the relocation site can be shared among both parties to avoid resentment on the part of the host population;

(ii) Other benefits such as trainings and livelihood opportunities must also be shared with the host s so that they won’t feel discriminated or left out.

21. Although not directly a resettlement concern, another factor which significantly affects implementation of resettlement plans is the conduct of

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parcellary survey. Since it is the basis for delineating properties, including structures and improvements that will either be severely or marginally affected as defined in the LARRIPP, erroneous or inaccurate parcellary surveys can cause significant delays in project implementation. This is particularly true for those which are prepared without field verification. As a result, discrepancies occur, during validation, between the actual number of affected land and/or improvements and those that are budgeted in the resettlement plan.

22. For parcellary surveys that are contracted out, this can be corrected by DPWH by drawing up a detailed Terms of Reference (TOR) together with a clause in the contract that any additional budget adjustment exceeding contingencies set, as a result of discrepancy between the submitted parcellary survey and actual field validation shall be shouldered by the contractor. For those conducted by DPWH, administrative sanctions and cases, as prescribed in pertinent Department Orders must be strictly implemented.

14.5 Entitlements 23. In accordance with the DPWH resettlement policy embodied in DPWH’s LARRIPP, 3rd Ed., Series of 2007, the application of legal doctrines with regards to compensation to APs are outlined in Table 14.5.1 - Entitlement Matrix.

Table 14.5.1: Entitlement Matrix Showing Modes of Compensation Modified from DPWH LARRIPP, 3rd Ed. 2007

Type of Loss Application Entitled Person Compensation/Entitlements

LAND More than 20% Project Affected PAF will be entitled to: (Classified as of the total land- Family (PAF) with  Cash compensation for loss Agricultural, holding loss or Transfer of land and at 100% Residential, where less than Certificate of Title replacement cost for Commercial, or 20% lost but the (TCT) or Tax structures, at the informed Institutional) remaining land Declaration (TD, request of PAFs holding become which can be Land valuation shall be, in economically legalized to full accordance with Section 5 of RA unviable title) 8974, computed based on:

 Classification and use for which the property is suited;  The development costs for improving the land;  The value declared by the owners;  The current selling price of similar lands in the vicinity;  The reasonable disturbance compensation for the removal and/or demolition of certain improvement on the land and for the value of improvement thereon;  The size, shape, or location, tax declaration and zonal valuation of the land;

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Table 14.5.1: Entitlement Matrix Showing Modes of Compensation Modified from DPWH LARRIPP, 3rd Ed. 2007

Type of Loss Application Entitled Person Compensation/Entitlements

 The price of the land as manifested in the ocular findings, oral as well as documentary evidence presented; and  Such facts and events as to enable the affected property owners to have sufficient funds to acquire similarly- situated lands of approximate areas as those required from them by the government, and thereby rehabilitate themselves as early as possible  If feasible, land for land will be provided in terms of a new parcel of land of equivalent productivity, at a location acceptable to PAFs  Holders of free or homestead patents and CLOA under CA 141, Public Lands Act will 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 land at zonal value  Cash compensation for damaged crops at market value at the time of taking  Rehabilitation assistance in the form of skills training and simple financial management equivalent to the amount of P15,000.00 per family, if the present means of livelihood is no longer viable and the PAF will have to engage in a new income activity PAF without TCT  Cash compensation for damaged crops at market value at the time of taking  Agricultural lessors are entitled to disturbance compensation equivalent to five (5) times the average of the gross harvest for the past three (3) years but not less than P15,000.00

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Table 14.5.1: Entitlement Matrix Showing Modes of Compensation Modified from DPWH LARRIPP, 3rd Ed. 2007

Type of Loss Application Entitled Person Compensation/Entitlements

Less than 20% PAF with TCT or PAF will be entitled to: of the total Tax Declaration  Cash compensation for loss landholding lost (TD, which can of land and structures at or where the be legalized to 100% replacement cost at remaining land full title). the informed request of holding is still PAFs. viable for use. Valuation of compensation for land shall be the same as described above for PAFs holding Transfer Certificate of Title (TCT) or Tax Declaration (TD, which can be legalized to full title).  Holders of free or homestead patents and CLOA under CA 141, Public Lands Act will 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 land at zonal value.  Cash compensation for damaged crops at market value at the time of taking. PAF without TCT  Cash compensation for damaged crops at market value at the time of taking.  Agricultural lessors are entitled to disturbance compensation equivalent to five (5) times the average of the gross harvest for the past three (3) years but not less than P15,000.00 STRUCTURES More than 20% PAF with TCT or PAF will be entitled to: (Classified as of the total Tax Declaration • Cash compensation for entire Residential/ landholding loss (TD, which can structure at 100% of Commercial/ or where less be legalized to replacement cost which is Industrial) than 20% lost full title) defined as the “amount but the necessary to replace the remaining improvements/structures structures no based on the current longer function market prices for materials, as intended or equipment, labor, no longer viable contractor’s profit and for continued overhead, and all other use attendant costs associated with the acquisition” (IRR, R.A.8974).

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Table 14.5.1: Entitlement Matrix Showing Modes of Compensation Modified from DPWH LARRIPP, 3rd Ed. 2007

Type of Loss Application Entitled Person Compensation/Entitlements

• Rental subsidy for the time between the submittal of complete documents and the release of payment on land, equivalent to prevailing rental rate of structure of equal type and dimension. PAF without TCT PAF will be entitled to:  Cash compensation for entire structure at 100% of replacement cost.  Rental subsidy for the time between the submittal of complete documents and the release of payment on land, equivalent to three (3) times the prevailing rental rate of structure of equal type and dimension.  Free transportation for PAFs who are relocating, including shanty dwellers in urban areas who opt to go back to their place of origin (e.g., province) or to shift to government relocation sites. PAFs who own  Computed income loss shops and other during demolition and commercial reconstruction of their establishments to shops but not to exceed one cover for their (1) month period. computed income loss Less than 20% PAF with TCT or PAF will be entitled to: of the total Tax Declaration  Cash compensation for landholding lost (TD, which can affected portion of the or where the be legalized to structure to be computed remaining full title) based on replacement cost. structure can still function and is viable for continued use. PAF without TCT  Cash compensation for affected portion of the structure to be computed based on replacement cost.

PAFs who own  Computed income loss shops and other during demolition and commercial reconstruction of their establishments to shops but not to exceed one cover for their (1) month period. computed income loss.

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Table 14.5.1: Entitlement Matrix Showing Modes of Compensation Modified from DPWH LARRIPP, 3rd Ed. 2007

Type of Loss Application Entitled Person Compensation/Entitlements

IMPROVEMENTS Severely or PAF with or PAF will be entitled to: marginally without TCT, Tax  Cash compensation for the affected Declaration., etc. affected improvements at replacement cost. CROPS, TREES, PAF will be entitled to: PERRENIALS  Cash compensation for crops, trees, and perennials at current market value as prescribed by the concerned LGUs and DENR.

14.6 Impact on Gender and Other Vulnerable Groups 24. Women have important economic roles in project areas and engage in a very wide range of income making activities in the agricultural and marketing sector. The project will pay particular attention to ensure that women are the recipients of the compensation pertaining to their activities and to ensure that women who are de-facto household heads are clearly listed as beneficiaries of compensation and rehabilitation proceedings under the loan. Special attention will also be given to identifying and addressing the needs of disadvantaged groups such as the landless, the poor, female-headed households, the elderly and the disabled, through measures included in the RP to try and improve (over and above cash compensations and restoration of) their livelihoods.

25. The DPWH, in its latest LARRIP Policy recognizes that the “identities and cultures of Indigenous Peoples are inextricably linked to their physical environment and the natural resources on which they depend”. That is why in the said Policy it provided comprehensive guidelines so as to ensure that projects they implement “do no further harm to IPs and leave them worse off with the projects than without”.

26. For sub-projects where Indigenous Peoples may be affected by civil works and other related activities, depending on severity, an Indigenous Peoples Action Plan (IPAP) shall be prepared in lieu of, or in addition to a resettlement plan. For land acquisition inside ancestral domains, DPWH and its agents shall observe the Free and Prior Informed Consent (FPIC) Guidelines of 2006 or the provisions of any agreement made by and between the DPWH and the National Commission for Indigenous Peoples (NCIP). Please refer to the Social and Environmental Management Systems (SEMS) Manual of the DPWH for details on said FPIC guidelines. For details on the coverage of the policy on IPs and ICCs, see Chapter IV of the DPWH LARRIPP.

27. Shown in Table 14.5.1 is a summary of the recognized impacts along with the corresponding safeguard instruments for IPs and ICCs, as prescribed by DPWH in its LARRIPP Policy:

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Table 14.5.1: Impacts and Social Safeguard Instruments for IPs and ICCs, Based on the DPWH LARRIPP

Relocation Site and Location of Impact Magnitude of Affected Guiding Framework Safeguard Instrument Affected IPs Families to be Relocated Inside Ancestral Without Not Applicable (NA) FPIC Guidelines of 2006 and/or possible The MOA serves as the Indigenous Domain resettlement Memorandum of Understanding (MOU) People’s Action Plan (IPAP). between the DPWH and the NCIP. For compensation and entitlements, Chapter II and III of the LARRIPP and Table 2 of this report. Other than these entitlements, benefits to be enjoyed by the host ICC/IPs shall be spelled out in the Memorandum of Agreement (MOA) to be executed between the affected ICC/IPs, the project proponent, and other related parties as stipulated in the FPIC Guidelines of 2006. With resettlement Inside ancestral domain FPIC Guidelines of 2006 and/or possible The MOA serves as the Indigenous Memorandum of Understanding (MOU) People’s Action Plan (IPAP). between the DPWH and the NCIP. For compensation and entitlements, Chapter II and III of the LARRIPP and Table 2 of this report. Other than these entitlements, benefits to be enjoyed by the host ICC/IPs shall be spelled out in the Memorandum of Agreement (MOA). Outside ancestral FPIC Guidelines of 2006 and/or possible The MOA serves as the Indigenous domain Memorandum of Understanding (MOU) People’s Action Plan (IPAP). between the DPWH and the NCIP. For compensation and entitlements, Chapter II and III of the LARRIPP and Table 2 of this report. Other than these entitlements, benefits to be enjoyed by the host ICC/IPs shall be spelled out in the Memorandum of Agreement (MOA). Mixed: Some IPs FPIC Guidelines of 2006 and/or possible For those remaining inside the resettled outside Memorandum of Understanding (MOU) ancestral domain, MOA serves as the ancestral domain; others between the DPWH and the NCIP. Indigenous People’s Action Plan remain inside (IPAP).

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Table 14.5.1: Impacts and Social Safeguard Instruments for IPs and ICCs, Based on the DPWH LARRIPP

Relocation Site and Location of Impact Magnitude of Affected Guiding Framework Safeguard Instrument Affected IPs Families to be Relocated For compensation and entitlements, Chapter For those resettled outside the II and III of the LARRIPP and Table 2 of this ancestral domain, depending on the report. Other than these entitlements, magnitude, either a stand-alone benefits to be enjoyed by the host ICC/IPs IPAP or a special chapter in the shall be spelled out in the Memorandum of resettlement plan. Agreement (MOA). Outside Ancestral Without Not Applicable For compensation and entitlements, Chapter Depending on the number of IP Domain resettlement II and III of the LARRIPP and Table 2 of this PAFs, either a stand-alone IPAP will report. be drafted or a special IP section in the abbreviated resettlement plan. With resettlement Whole community or a LARRIPP IPAP large portion of the Governed by possible MOA between the community DPWH and NCIP. Options will be explored to resettle IP PAFs back to their place of origin. If the identified receiving area were an ancestral domain, an FPIC shall be obtained from the receiving IP community. FPIC Guidelines of 2006 and/or possible MOA between the DPWH and NCIP shall apply. For compensation and entitlements, Chapter II and III of the LARRIPP and Table 2 of this report. A few families but Options to resettle IP PAFs in the immediate IPAP to cover both PAFs to be majority of the IP vicinity of the IP community will be explored resettled and the IP community that community remains. For compensation and entitlements, Chapter remains. II and III of the LARRIPP and Table 2 of this report. Outside of ancestral With or without Whole community or a FPIC Guidelines of 2006. The MOA serves as the Indigenous domain; IPs who resettlement. portion. For compensation and entitlements, Chapter People’s Action Plan (IPAP). have been resettled II and III of the LARRIPP and Table 2 of this in public domain report. lands Source: DPWH ESSO, 2007. Land Acquisition, Resettlement, Rehabilitation and Indigenous Peoples Policy, 3rd Edition

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14.7 Procedures for Formulating Resettlement Plans 28. Design and implementation of projects under Tranches 2 & 3 shall make every effort to avoid any need for land acquisition or resettlement. However in cases wherein resettlement is inevitable, Resettlement Plans shall be formulated in accordance with ADB’s IRP.

29. For projects under Tranches 2 and 3, formulation of resettlement plans, whether it would be a short or full RP, shall be the responsibility of the Implementing Office with assistance from the IROW and Resettlement Project Management Office, the Environmental and Social Services Office (ESSO), the Regional Environmental and Social Services Office, or private consulting firms. RPs shall be formulated based on the following:

(i) Initial categorization/screening of road sections based on anticipated impacts from resettlement;

(ii) Disclosure and explanation of policy and legal frameworks for resettlement to PAFs;

(iii) Consultation with potential PAFs to obtain their inputs on avoiding or mitigating involuntary resettlement and determine their concerns, needs and preferences;

(iv) Census and socio-economic survey of all PAFs and complete inventories of their assets, including estimation of compensation for structures and improvements;

(v) Social impact assessment and validation that the entitlement matrix have covered all resettlement entitlements;

(vi) Consultation meetings with PAFs to explain relocation plans and rehabilitation strategy, including income restoration (if required) and improvement of their living conditions;

(vii) Inclusion of itemized budget for all resettlement activities in the total project cost for each road section;

(viii) Formulation of implementation schedule for each RP;

(ix) Detailed and comprehensive procedures for grievance redress mechanism;

(x) Conceptualization of Institutional Framework for resettlement activities;

(xi) Recommendation of internal and external monitoring program and final evaluation;

14.8 Implementation Arrangements 30. In accordance with DPWH D.O. 5 Series of 2003 and the LARRIPP, 3rd Ed. 2007, the Project Implementing Office (IO) or the Project Management Office in charge of the project shall have the overall responsibility for implementing the project. It shall:

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(i) Manage and supervise the sub-project(s) including land acquisition and resettlement in coordination with other offices within the Department as well as other relevant Government agencies;

(ii) ensure that funds are available so that the RP can be implemented in a timely manner; and

(iii) ensure that all funds disbursed in relation to RP implementation is properly accounted for;

31. As stipulated in the LARRIPP, the Environmental and Social Services Office (ESSO) shall be responsible for providing technical support, guidance, and assistance to the IO/PMO in implementing the resettlement plan for each sub-project. It shall also be responsible for the following resettlement activities:

(i) Overall preparation and planning of the Resettlement Plan

(ii) Submittal of RP budget plans, including compensation, relocation and operation costs for approval and allocation of needed resources by the DPWH Central Office

(iii) Provision of guidance to Regional and District Engineering Offices (DEOs) in their tasks pertaining to resettlement, such as verification of PAFs, final inventory of affected assets, and information dissemination, in accordance with the LARRIPP;

(iv) Amendment of the RP in case problems are identified during the conduct of Internal and External Monitoring activities;

(v) In collaboration with the Regional ESSO, follow up with Regional Office the processing of compensation claims of PAFs;

(vi) In collaboration with the IO/PMO, monitor actual payment of compensation to PAFs; and

(vii) In cooperation with the Regional ESSO, prepare periodic supervision and monitoring reports on RP implementation for submittal to the IO/PMO and the ADB.

32. Concerned District Engineering Offices (DEOs), as the major Implementers, in accordance with the LARRIPP shall act as Technical Coordinators and shall be responsible for overseeing the staking out, verification, and validation of the PAFs’ assets using a prepared compensation form, as well as in monitoring and implementing the LARRIPP. In addition, it shall also:

(i) Assist the DPWH and NCIP staff in identifying who among the APs are IPs or belong to ICCs;

(ii) Assist the DPWH staff engaged in the LARRIPP activities in the public information campaign, public participation, and consultation;

(iii) Assist the DPWH in the payment of compensation to APs;

(iv) Receive complaints and grievances from PAFs and other stakeholders, as referred by the MRIC and act accordingly;

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(v) Maintain a record of all public meetings, complaints, and actions taken to address complaints and grievances, and

(vi) Assist in the enforcement of laws/ordinances, in coordination with concerned government authorities, regarding encroachment into the project site or Right-of-Way (R-O-W).

33. The DEOs shall in turn, be assisted by the Resettlement Implementation Committee (RIC), which shall be formed through a Memorandum of Understanding (MOU) between the DPWH, the concerned Local Government Units (LGUs), and the NCIP Regional or Provincial Office, in case IPs/ICCs are involved.

14.9 Consultation and Public Participation 34. PAFs must be fully informed at the earliest possible time. They should be closely consulted and encouraged to participate in any decision-making pertinent to resettlement. Project disclosure and consultation at an early stage provides a good venue for PAFs to express their opinions, apprehensions, and even objections. It opens grounds for discussion, and allows the Implementing Office to address issues raised, most of which can be incorporated into the final design and resettlement plan. This will minimize, if not totally avoid, delays in implementation caused by unforeseen stand-offs.

35. Consultation meetings shall be conducted at site. One, prior to the preparation of the RAP, and the other, after. The following table shows a sample schedule for consultation meetings to be conducted including future disclosures to be undertaken.

Milestone and Purpose 1st Disclosure Prior to Preparation of RP: a. To inform the APs about: (i) the activities to be undertaken during rehabilitation/improvement of the road (ii) the expected adverse impacts such as displacements of households; (iii) That there will be validation after the detailed design to finalize number of APs to be affected (iv) the no-worse off policy of ADB, b. To encourage AP’s to air their ideas, concerns and apprehensions, and other related issues

2nd After Preparation of RP: Disclosure a. To inform the APs and other stakeholders about the RP; b. To ask the APs to review the RP c. To ask the APs to give their comments/objections on the RP d. To inform the APs that a Resettlement Plan Implementation Committee shall be formed and that they should choose a representative who would become a member of this Body 3rd After Validation and Final Design Disclosure a. To present the final RP to the APs b. To ask the APs to review the RP c. To ask the APs to give their comments/objections on the RP d. To discuss the schedule of payments and other entitlements

KEI in association with SKI and DCCD 14-19 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

4.10 Eligibility Provisions 36. All PAFs shall be entitled to compensation and rehabilitation. However, eligibility to receive compensation and other assistance will be limited by a cut- off date. This date corresponds to the first day of census. No new households will be included for compensation and entitlements after this date. A notification of the cutoff date, which defines “eligibility” and “affected persons”, will be posted in the affected neighborhoods.

14.11 Grievance Redress Mechanism 37. In accordance with the LAPRAP Tracking Manual of DPWH, a Grievance Handling Committee shall be formed within the Municipal RP Handling Committee (MRIC-GHC) to facilitate the resolution of the PPAFs’ grievances. The MRIC’s Chairperson shall head this Committee. Each representative from concerned Barangay government shall be his Co-Chairperson(s). The GHC shall consist of the following:

 Legal Officer from the Legal Service (DPWH Regional/Central)  IROW Engineer  IROW Agent  Land Management Section Chief/Representative (DENR Regional/ Provincial Office)  City/Municipal Assessor  City/Municipal Agrarian Reform Officer (if needed)  Community Environment and Natural Resources Officer (CENRO)  RP Preparer (from IO or their Consultant)

38. This procedure is initiated once the letters from PAFs, expressing their grievances are received by the MLIC/DEO. The deadline for submitting letters of grievances shall be set 30 days after the date of public disclosure; with a maximum extension of another 15 days, if request was made by more than ten percent (10%) of the PAFs.

39. A Grievance Action Form (GAF), as prescribed in the said LAPRAP Tracking Manual shall be used during the detailed design stage to cover the various aspects of property acquisition based on validation of the RP. The GAF shall, at the very least, contain the following:

(i) Basic information on PAFs (Name, Address, Contact Number)

(ii) Date of last disclosure meeting;

(iii) Category of grievance filed (Legal, Technical/Engineering, Social, Financial)

(iv) Type of action taken (Resolved at the MRIC level, or referred to higher authorities.

40. Respective Barangay Captains, as Co-Chairperson of the GHC shall be the first recipient of the GAF. All GAFs shall be consolidated by the MRIC Chairperson and presented to the MRIC for deliberation and appropriate action, on a weekly basis. Unresolved grievances at the MRIC level shall be elevated to the respective District Engineering Offices for resolution of complaints. Recommendations of the District Engineer shall be elevated to the Regional ESSO for approval and final action. If there are still unresolved grievances, a case shall be filed in the proper courts.

KEI in association with SKI and DCCD 14-20 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

14.12 Implementation Schedule 41. The following is a sample implementation schedule showing the activities to be undertaken in relation to the design and implementation of the Resettlement Plan. Individual Implementation Schedules shall be prepared for each of the sub-projects as follows:

Sample Implementation Schedule

RP Activities Year 1 Year 2 Year 3 Design - Implementation 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

First Disclosure (PCM)

Preparation of RP (FS Stage)

Approval of Road Design & Conduct of Parcellary Survey Validation of APs and Finalization of RP

Approval of the Final RP

Formation of the RIC

Disclosure of final RP to APs

Notification of APs

Compensation

Provision of Replacement Land

Relocation to Replacement Land

Income Restoration

Commencement of Civil Works

Monitoring & Evaluation

Internal Monitoring

External Monitoring and Evaluation

14.13 Monitoring and Evaluation 42. In accordance with DPWH D.O. 58, the ESSO shall be responsible for conducting the in-house monitoring of implementation of RPs and IPAPs (for affected IPs outside1 the ancestral domain) for each sub-project, and as such shall be alternately referred to as the Internal Monitoring Agent (IMA). As the IMA, its task include:

1 Monitoring procedures for MOAs and IPAPs of IPs/ICCs living inside ancestral domains will be guided by the monitoring, evaluation, and reporting arrangements set forth in the MOA.

KEI in association with SKI and DCCD 14-21 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

(i) Regular supervision and monitoring of RPs implementation in coordination with concerned Regional Offices (ROs), DEOs, and RICs. Finding are documented in a quarterly report and shall be submitted to the IO/PMO, for subsequent submittal to ADB;

(ii) Coordination with the NCIP regarding the monitoring and evaluation of the situation of affected IPs/ICCs, whether inside or outside ancestral domains;

(iii) Verifying whether the re-inventory baseline information on all APs have been carried out and whether the valuation of assets lost or damaged, provision of compensation and other entitlements, and relocation, if any, have been carried out in accordance with the respective RPs and the LARRIPP;

(iv) Ensuring that RPs and IPAPs are implemented as designed and planned;

(v) Verifying that funds for implementing the RPs, MOAs, and IPAPs are promptly provided by the IO/PMO and in sufficient amounts;

(vi) Recording all grievances and their resolution and ensuring that all complaints are promptly addressed;

(vii) Monitoring, in coordination with the relevant branch of the NCIP the implementation of IPAPs, covering affected IPs/ICCs living outside ancestral domains.

43. To obtain an independent appraisal of RP and IPAP implementation, an External Monitoring Agent (EMA) shall be commissioned by the IO/PMO to undertake monitoring and evaluation. The EMA can either be a qualified individual or a consultancy firm with qualified and experienced staff. Prior to engagement, the DPWH shall submit to ADB for its concurrence, the Terms of Reference for the EMA. The tasks of the EMA consist of:

(i) Verifying the results of internal monitoring (i.e., undertaken by the ESSO)

(ii) Coordinating with the NCIP with regards to the monitoring and evaluation of the situation of affected IPs/ICCs, whether they are living inside (covered by MOA) or outside ancestral domains (covered by the IPAP);

(iii) Verifying and assessing the results of the information campaign for APs’ rights and entitlements, including consultations with affected IPs/ICCs living outside ancestral domains;

(iv) Verifying that the compensation process has been carried out in accordance with procedures communicated with the APs and IPs during consultations;

(v) Assessing whether resettlement and IPAP objectives have been met, particularly with regards to livelihood and restoration and/or enhancement of living standards;

(vi) Assessing the efficiency, effectiveness, impact and sustainability of resettlement and IPAP implementation, drawing lessons as a guide to future resettlement and IPs’ policy making and planning;

KEI in association with SKI and DCCD 14-22 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

(vii) Establishing whether the resettlement and IPAP entitlements were appropriate to meet the objectives, and whether these objectives were appropriate to AP and IP conditions;

(viii) If necessary, recommending modifications to the implementation procedures of RPs and IPAPs, to achieve the principles and objectives of ADB’s IRP, and the DPWH’s LARRIPP;

(ix) Reviewing how compensation rates were established; and

(x) Reviewing whether compliance and grievance cases were properly handled

44. Other details on stages, frequency, schedule, reporting, and indicators used for internal and external monitoring of sub-projects can be found in Sections D to H of the LARRIPP.

14.13 Resettlement Budget 45. The DPWH will be responsible for providing adequate funds for land acquisition and resettlement related to the Project. Detailed estimates will be prepared during detailed design of respective road section, verified by the Implementing Office and included in the pre-construction project budget. This budget item will include the detailed costs of land acquisition, relocation, and livelihood and income restoration and improvement. All land acquisition, compensation, relocation and rehabilitation of income and livelihood will be considered as integral components of project costs for each road section.

A. Land Acquisition $XX,000

B. Resettlement Costs (Includes compensation for structures, $XX,000 and other types of compensation for, including disturbance compensation, rehabilitation assistance, rental subsidy, and other entitlements of PAFs) C. Administrative and Monitoring Costs $X,X00 D. Contingency $X,X00 Total Costs $XX,000

KEI in association with SKI and DCCD 14-23 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

15. PROJECTS, ECONOMIC AND ENVIRONMENTAL FRAMEWORK FOR TRANCHES 2 AND 3

15.1 Project Listing, Evaluation and Ranking

1. The Consultants Terms of Reference essentially focuses on the project selection, detailed design, economic evaluations and environmental impacts for Asset Preservation projects in Tranche 1, planned for 2010-2011. 2. Due to the long time before Tranches 2 and 3 can be implemented, most aspects of projects for those Tranches must be approximate only. The priority rankings, cost estimates, environmental concerns, etc., are all theoretical, although of course made as good as possible. Road designs within the present PPTA would not be meaningful since the road conditions are likely to change over 3-5 years 3. Unlike Tranche 1, which focuses on Asset Preservation only, Tranches 2 and 3 are mainly intended for improvements or rehabilitation to National Roads. A list of 22 such projects was compiled by DPWH and used as the basis for project selections. Four of the 22 roads were subsequently removed for different reasons:  The road Bulinao-Bani-Alaminos in Pangasinan appeared to be good enough for Asset Preservation in Tranche 1.

 During the economic evaluations, three of the 22 roads showed negative results for NPV/C: - Malinta-Baleno-Aroroy-Mandaon (Masbate) - Bagong-Silang-Capalonga (Camarines Norte) - Sto Nino –Bolang (Palawan) 4. For the remaining 18 roads, the selection continued as follows:

 Each road was divided into sections, the quantities for the required work on each section (or bridge) estimated, and the cost of the civil works calculated. The uncertainty of these costs is believed to be in the order of +/- 10-20%.

 In parallel, DPWH/FS collected and produced basic Feasibility Study information for each road. As the cost for the road works were obtained, the Consultant, with full assistance and co-operations from DPWH/FS, made the economic evaluations in terms of EIRR and NPV/C. DPWH’s ECOVAL program was used since HDM-4 would require some types of input data that were not available.

 A group of five experienced staff from DPWH (including DPWH/FS, ADB/PMO and the Consultant) jointly undertook an evaluation through Multi-Criteria Analysis for the 18 roads, considering eight different aspects including the NPV/C: - Current project status (approved or not approved by ICC scale 0-10) - Detailed design carried out (5 points) or not (0 points)

KEI in association with SKI and DCCD 15-1 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

- Economic viability (scale 10-30 for a positive NPV/C) - Environmental assessment (impacts and mitigations, scale 4-10) - Social impacts (no resettlements, minor, or major – scale 4-10) - Road category (four types, scale 4-15) - Road strategic network (identified or not, scale 0-5) - Economic and social development policy options (scale 0-15) 5. Table 15.1.1 below includes all 18 project candidates with the results obtained. The project numbers in the left column refers to the original long list, while the “rank” in the rightmost column are by score in the Multi-Criteria Analysis (MCA). Twelve of the 18 projects are already booked in the medium term public investment project (MTPIP) Table 15.1.1: Summary of Evaluation and Ranking Results MCA No. PROJECTS PROVINCE P Million EIRR NPV/C RANK Score Negros Oriental/ 12 San Carlos - Dumaguete 2,605.4 27.6 0.46 85 1 Occidental Negros 2 Bacolod Circumferential 555.7 31.7 0.62 78 2 Occidental Caticlan -Malay - Libertad 3 Aklan 633.0 37.9 0.78 76 3 - Nabas Bacolod - Murcia - DS Negros 10 1,618.2 25.7 0.36 75 4 Benedicto - San Carlos Occidental Villaba - Tabango - 4 Leyte 1,582.9 36.6 0.75 74 5 Calubian Loay Interior , Loay - 5 Carmen - Trinidad; Jct. Bohol 1,625.8 24.1 0.30 72 6 Datam - Pilar - Alicia 1 Bagac - Mariveles Bataan 747.1 29.1 0.50 71 7 Mindanao East - West Iligan / 21 Lateral (Sta. Filomena - 2,953.0 23.9 0.25 70 8 Bukidnon Ticlaan Section) 13 Guimaras Circumferential Guimaras 2,364.0 20.8 0.17 70 9 Ilocos Sur / 16 Cervantes - Sabangan Benguet / Mt. 1,165.3 17.2 0.06 67 10 Province Negros Guinhulngan – Isabela - 9 Oriental / 2,138.4 20.7 0.16 66 11 Binalbagan Occidental San Nicolas - Natividad - Pangasinan / 8 San Quintin - Umingan - 206.5 25.3 0.36 62 12 Nueva Ecija Guimba Toledo - Tabuelan - San 20 Cebu 2,899.9 19.2 0.12 60 13 Remegio Bayawan - Bais - Dawis - Negros 22 1,058.7 18.3 0.09 56 14 Panyabonan Oriental Wright - Taft - Borongan 6 Samar 4,235.5 17.3 0.07 53 15 - Guiuan Sto. Rosario - Matag-ob - 15 Leyte 839.4 15.9 0.02 52 16 Palompon 14 Albay West Coast Albay 1,200.0 16.1 0.03 51 17

17 Mulanay - San Francisco Quezon 1,225.7 15.3 0.01 51 18

TOTAL 29,654 = US$ 655M

KEI in association with SKI and DCCD 15-2 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

15.2 Prioritization of Projects for Tranches 2 and 3

6. The number of road projects to be included in Tranches 2 and 3 depends entirely on the budgets to be agreed for those two phases. The road with the highest score (San Carlos-Dumaguete with 85 points) would naturally be in the first year of Tranche 2. Each year in each of Tranches 2 and 3 may then be filled by road projects with successively lower scores, up to the budget for each year and Tranche. See example in Table 15.2.1. The example assumes a budget of US$ 200 million for Tranche 2 and US$ 250 million for Tranche 3, in both cases over three years. 7. Table 15.2.1 snows the proposed improvement/rehabilitation projects for Tranches 2 and 3, for an assumed budget of US$ 200 million and US$ 250 million, respectively (for a total of US$ 450 million). The column with the accumulated costs facilitates the identification of boundaries. Table 15.2.1: Proposed Improvement/Rehabilitation Projects for Tranches 2 and 3

Equiv. Peso Accumulated Selected Projects Province Rank US$ Million US$ Million Projects Million

San Carlos-Dumaguete Negros Oriental/ 1 2,605.4 56.638 56.64 Occidental

Bacolod Circumferential Negros 2 555.7 12.080 68.72 Occidental

Caticlan-Malay-Libertad-Nabas Aklan 3 633.0 13.760 82.48 Tranche 2 Bacolod-Murcia-DS Benedicto- Negros 4 1,618.2 35.177 117.66

Villaba-Tabango-Calubian Leyte 5 1,582.9 34.411 152.07

Loay Interior, Loay-Carmen- Bohol 6 1,625.8 35.343 187.41 Trinidad; Jct. Datam-Pilar- Alicia

Bagac-Mariveles Bataan 7 747.1 16.241 203.65

Mindanao East-West Laterla Iligan/Bukidnon 8 2,953.0 64.196 267.85 (Sta. Filomena-Ticlaan Section)

Guimaras Circumferential Guimaras 9 2,364.0 51.391 319.24 Tranche 3 Cervantes-Sabangan Ilocos Sur/ 10 1,165.3 25.333 344.57 >US$200M Benguet/Mt.

Guinhulungan-Isabela- Negros Oriental/ 11 2,138.4 46.486 391.06 Binalbagan Occidental

San Nicolas-Natividad-San Pangasinan/ 12 206.5 4.490 395.55 Quintin-Umingan-Guimba Nueva Ecija

Toledo-Tabuelan-San Remegio Cebu 13 2,899.9 63.040 485.59 Cannot be included Bayawan-Bais-Dawis- Negros Oriental 14 1,058.7 23.014 481.60 with this Panyabonan budget Wright-Taft-Borongan-Guiuan Samar 15 4,235.5 92.077 573.68

Sto. Rosario-Matag-ob- Leyte 16 9.457 18.247 591.93 Palompon

KEI in association with SKI and DCCD 15-3 Road Sector Institutional Development and Investment Program (RSIDIP): Final Report

8. As appears from the “Province” column in the above Table, most projects on the list are in the Visayas Region, with no less than 13, versus 4 in Luzon and only 1 in Mindanao. This imbalance is expected to even out, however, when the road projects to be undertaken by the World Bank and JBIC are also included. 9. It should be noted that all results presented in this Chapter will remain approximate for some years yet. A detailed design of roads for Tranche 2 will be undertaken in parallel with the civil works in Tranche 1, etc., resulting in more precise cost estimates and then probably also more precise rankings between the candidate roads.

15.3 Environmental Assessment for Roads Under Tranches 2 and 3

10. The Environmental Assessment and Review Framework (EARF) presented in Annex 9, is intended to be applied for the proposed improvement of selected roads under Tranches 2 and 3. The EARF was developed based on the procedures stipulated in the Government’s Department of Environment and Natural Resources (DENR) and ADB Environmental Guidelines and Policy of 2003. See also Chapter 12 and the IEE Report. The Resettlement Framework in Chapter 14 specifically refers to Tranches 2 and 3 which, due to the possibilities of road widening and realignments, could lead to needs for land acquisition and resettlement.

KEI in association with SKI and DCCD 15-4 Annex 1 ICB CONCEPT PAPERS Road Sector Institutional Development and Investment Program (RSIDIP)

ANNEX 1: ICB CONCEPT PAPERS

CONCEPT PAPER NO. 1

TITLE : Preparation Pilot-testing of Manuals and Guidelines in the Conduct of Post-Evaluation of DPWH Completed Infrastructure Projects

RATIONALE: Project post-evaluation is necessary to complete the development cycle of a project. It is intended to answer the question on how a project has achieved its desired impacts. Part of the 6th ADB Road Project involved the conduct of benefit monitoring and evaluation of selected road projects. JBIC provided Manuals in the conduct of Ex-Post Evaluation of JBIC-funded projects. However, the two funding institutions have different approaches in post evaluation. What is needed is to produce a unified approach to post-evaluation and to embody it in a set of Manuals and Guidelines.

OBJECTIVE: The overall objective of the consultancy services is to develop DPWH Manual for Impact/Post-Evaluation of Completed Projects adoptable either to foreign or locally funded projects.

SCOPE: 1. Review the existing criteria in the Selection of Projects subject to impact/post-evaluation and make revisions if deemed necessary. 2. Review the available JBIC Handbook in the conduct of Ex-Post Evaluation of completed JBIC funded projects and section of 6th ADB Final Report on Benefit Monitoring & Evaluation for possible merging/revision in the preparation of Independent Manual. The said manual should include the following:

- Procedures of Post-evaluation; - Clear definitions of commonly used terms, e.g. post-evaluation, impact evaluation, benefit monitoring and evaluation, ex-ante evaluation, and ex-post evaluation; - Tools of evaluation; and - Feedback of evaluation findings.

3. Formulate post-evaluation framework, procedure, guidelines and manual for the assessment of performance of the DPWH versus the target Medium Term Public Investment Program (MTPIP). 4. Train a core of potential trainers from the Planning Service, ROs and DEOs for sustainability. 5. Conduct actual impact/post evaluation of three (3) pilot projects located in Luzon, Visayas and Mindanao.

TIMEFRAME: 48 months ESTIMATED COST: PHP 95.7 MILLION

KEI in association with SKI and DCCD Annex 1-1 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 2 TITLE : Development and Installation of Project Management Information System (PMIS)

RATIONALE: The DPWH has no integrated information system on the life-cycle of a project, from feasibility study to post-evaluation. Such a system is important to tract progress as well as any problems encountered in each phase and the actions taken on the problems. The system is an important tool in project management.

OBJECTIVE: The overall objective of the project is to improve the tracking process of a project including feasibility study, design, environmental compliance, procurement of Right-of-Way, construction, project hand-over, maintenance and post evaluation.

SCOPE: Phase I (1) Development of an effective project management techniques that would include the delivery of projects on time and within budget;

(2) Development of an automated project record-keeping application that tracks project performance on a daily basis and links with the payment process; (3) Development/procurement of a project management tool, including project management training that includes PERT/CPM methods and implementation, project management documentation, resource utilization for people, equipment and funds; (4) Development of a project implementation status monitoring application that will replace the Project Monitoring System (PMS) and Project management Office Monitoring System (PMOMS) of the Department; and,

(5) Development and implementation of contract turn-over policies and procedures. Phase II Development of application systems for some phases of a project life- cycle where, currently, there is no enterprise application supporting them, e.g., environmental compliance management, design management, post-evaluation. Phase III (1) Development of the application that would support the Contractors’ Performance and Evaluation System (CPES) and the Consultants’ Performance Evaluation System (CoPES); and, (2) Development and installation of a Project Management Information System (PMIS) based on the foregoing activities.

TIMEFRAME : 3.5 years ESTIMATED COST : PhP 300.0 Million

KEI in association with SKI and DCCD Annex 1-2 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 3

TITLE : Capacity Building for Infrastructure Development and Quality Assurance

RATIONALE: Many of the manuals, guidelines and specifications which are currently in use are already out of date. Considerable advances have been made internationally in the understanding of materials, pavements and road structures as a whole. Applied research to adapt international technology to local conditions would be needed to update existing manuals and specifications. A related concern pertains to the lack of local expertise in the area of surface treatments of bituminous pavements. The DPWH implements between 14,000 and 22,000 infrastructure projects per year. Most of these projects are being implemented by the district and sub-district engineering offices nationwide which are not fully capable to conduct testing of materials. This situation could be addressed by the development of a Quality Assurance System (QAS) and the upgrading of the DPWH laboratories nationwide.

OBJECTIVES : (1) To conduct research on improving pavement performance; (2) To improve material testing capability and capacity; and (3) To develop and install quality assurance system.

SCOPE: (1) Prepare and implement a sustainable research designed to enhance and expand the existing specifications for concrete/asphalt mix design; (2) Conduct training programs on asphalt surface dressings; (3) Develop a Quality Assurance System and install it in the DEOs; and (4) Upgrade the DPWH laboratories nationwide.

TIMEFRAME : 8 YEARS

ESTIMATED COST : The cost is estimated at PhP 760.9 Million broken down as follows: Research program - PhP 200.0 M Training in surface dressing - 53.4 M Quality Assurance Development - 101.0 M Upgrading of laboratories - 406.5 M

KEI in association with SKI and DCCD Annex 1-3 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 4

TITLE : Environmental and Social Safeguards and Right-of-Way Management

RATIONALE: The DPWH has taken several initiatives to strengthen its in-house capability in environmental management and right-of-way management through technical assistance from Highway Management Project to the NRIMP, Phases 1 and 2, all World Bank-assisted projects. It is necessary to continue these initiatives and ensure their application in the ROs and DEOs of the department.

OBJECTIVE: To sustain the gains of the initiatives on environmental and social safeguards and right-of-way management through: (1) the enhancement of the EIA Regional Offices in environmental management; and (2) the improvement in ROW management through GIS applications to ROW functional areas, among others.

SCOPE: Environmental Management: 1. Continue the initiatives on accreditation of ESSO to ISO 140001 to its regional counterparts;

2. Procure EIA instruments such as air, noise and water samplers and train ESSO and its counterparts on the usage of these instruments;

3. Broaden capacity building on EIA to include the DEOS; and

4. Provide training abroad for ESSO and counterpart staff.

ROW Management:

1. Review and study the results of the GIS applications under NRIMP-2 and make improvements;

2. Continue the conduct of training for DPWH staff on IROW management functional areas; and

3. Apply GIS applications in ROW to more District Offices.

TIMEFRAME: Seven (7) years

ESTIMATED COST : PhP 285.0 Million

KEI in association with SKI and DCCD Annex 1-4 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 5

TITLE : Proposal for the Procurement of Technical Assistance for the Gender Mainstreaming in Infrastructure Development

RATIONALE : It is the government’s policy to consider gender issues in infrastructure development. In particular, the greater role of women in the decision- making process is being recognized. However, the nature and scope of women participation have not been well studied. There is also the absence of gender action plan that would mainstream the policy in infrastructure development.

OBJECTIVE: The general objective is to formulate gender-sensitive policies and strategies and to prepare a six-year gender action plan highlighting prioritized programs, projects and initiatives ensuring gender-equality in infrastructure.

SCOPE: 1. Undertake environmental scanning and identify gender issues and concerns in the involvement of women, youth, senior citizens and disabled persons in infrastructure development;

2. Develop a comprehensive and sustainable gender-based information system (data-base) that could be interfaced with the current Personnel Information System;

3. Conduct social gender analysis such as trend analysis, capacity of women to participate in decision-making process, and access of women to health and other services;

4. Prepare standard gender-sensitive design parameters of various infra-projects;

5. Formulate gender-responsive policies, strategies and initiatives in infra project formulation and implementation;

6. Establish monitoring and evaluation indicators and guidelines;

7. Organize women’s group in the department;

8. Conduct training on trainers to enhance knowledge on gender and development and roll-out trainings to all Regional and District Offices;

9. Undertake gender-sensitive pilot projects and implementation of gender-designed projects (Luzon, Visayas and Mindanao); and

10. Prepare a six- year term gender action plan for DPWH.

TIMEFRAME : 3 years

ESTIMATED COST : PhP 74.1 Million

KEI in association with SKI and DCCD Annex 1-5 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 6

TITLE : Installation of DPWH Communication Network Equipment (Voice and Data) in 73 District Engineering Offices (DEOs).

RATIONALE: Effective governance is dependent upon a good communication network. Seventy DEOs are not currently connected to the Wide Area Network of the department.

OBJECTIVE : To connect 30 additional District Offices to Wide Area Network (WAN) of the Department (43 DEOs have already been connected).

SCOPE: 1. Construction of network room or data center;

2. Construction of power house and concrete pedestal;

3. Delivery and installation of network cables including nodes for voice and data;

4. Delivery and installation of generator set;

5. Delivery and installation of Wide Area Network Equipment and Data switches; and

6. Activation of the equipment including connection to the Department Wide Area Network.

TIMEFRAME : 3 years

ESTIMATED COST : PhP 423.6 Million

KEI in association with SKI and DCCD Annex 1-6 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 7

TITLE : Procurement of DPWH IT Computer and Software for District Engineering Offices (DEOs).

RATIONALE : There is a need for the DPWH to expand its enterprise-wide platform of database servers, application servers, administrative servers, and client workstations. The installation of IT facilities should take advantage of the expansion of the communication network under a separate project.

OBJECTIVE : The objective of the project is to procure and install IT computer and software for DEOs.

SCOPE:

1. Delivery and installation of 73 Servers with UPS, Related peripherals and software, including main servers and active directory configuration;

2. Delivery and installation of 450 Business Workstation with UPS, related peripherals and software;

3. Delivery and installation of 90 printers, related peripherals and software; and

4. Provision of training and orientation required to implement the WAN/LAN connectivity in the most effective, efficient, and optimized manner to obtain greatest benefit.

TIMEFRAME : 3 YEARS

ESTIMATED COST : PhP 151.2 Million

KEI in association with SKI and DCCD Annex 1-7 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 8

TITLE : Comprehensive Human Resource Development

RATIONALE : Compared to other components, low priority had been accorded towards Human Resource Management (HRM) and Organizational Strengthening programs in the DPWH. It is essential that HRD be given due importance to ensure high productivity within the department.

OBJECTIVE : To develop a comprehensive approach to the management of the Department’s most valued assets - the workforce who individually and collectively contributes to the achievement of the goals and objectives of the organization.

SCOPE : a) Leadership Development - Implementation of appropriate interventions for DPWH key officials, including division chiefs, for organizational effectiveness.

b) Organization Culture Building -  Determination of current and desired organizational culture for DPWH;

 Crafting of a roadmap towards the desired culture;

 Initiate the roadmap strategies by stages within the next 3 years;

 Implementing an ongoing monitoring system from year 1 to 3; and

 Assess effects of the Organizational Culture Building Program (OCBP) at the end of year 3.

c) Development of a Comprehensive Human Resource Development Plan (CHRDP)

Phase I  Establishment of a new standardized performance appraisal system with associated training; and

 Development of an application system that supports this process.

KEI in association with SKI and DCCD Annex 1-8 Road Sector Institutional Development and Investment Program (RSIDIP)

Phase II  Establishment of a new selection and hiring process, including criteria, with associated training;

 Establishment of a feedback mechanism to encourage employee input, including awareness program on grievance procedures; and,

 Improvement of the current training program, which would include additional training courses and opportunities for employees and trainers, as well as management training;

 Establishment of a Central Training and Library Facility that will be fully equipped;

 Establishment of Regional Training facilities; and

 Enhancement of the employee orientation training that will include ethics, accountability, and transparency.

d) Development and implementation of an integrated Human Resource application system with associated training. This system will link all HR-related policies, procedures and application systems, including those completed under phases I and II of Component c.

TIMEFRAME : 3 years

ESTIMATED COST : PhP 386.1 Million broken down as follows:

Component a - Continuing for 3 years @ P 20.00 M /year = Php 60.00 M Component b - Continuing for 3 years @ 20.00 M/year = Php 60.00 M Component c - Phase I - PhP 100.00 M Phase II - PhP 66.144 M Component d - Php 100.00 M

KEI in association with SKI and DCCD Annex 1-9 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 9

TITLE : Enhancement of Traffic Accident Recording and Analysis System (TARAS)

RATIONALE: The TARAS was developed as part of the ADB-assisted 6th Road Project. It was implemented and was deployed to the ROs. While a Memorandum of Agreement (MOA) was signed between the DPWH and the PNP, continuous training of PNP personnel is still needed to effectively implement the system. There is also the need to integrate the road accident data systems of other agencies like the MMDA into the TARAS. Its deployment to the DOs is also long overdue.

OBJECTIVE: 1. To improve the current accident data system by reviewing the existing policies, procedures, and practices for collecting and reporting road accident data in DPWH and the Philippine National Police (PNP); and

2. To improve DPWH road accident reduction program.

SCOPE: 1. Expanded deployment of TARAS to the DPWH District Engineering Offices (DEOs). Currently, only the Regional Offices (ROs) are authorized to have TARAS Users.

2. Improvement of TARAS:

(a) Upgrade data entry of accident data from the present manual encoding to direct input from an electronic device to prevent backlog and delays;

(b) Upgrade Reporting and Analysis Module of the TARAS; and

(c) Integrate other road accident data systems of other agencies, e.g. Metro Manila Reporting and Analysis System of the Metro Manila Development Authority and Department of Health with DPWH TARAS for a unified accident data system in the Philippines.

3. Delivery of continuous training for DPWH and the PNP personnel on accident data collection and on the new process of TARAS. (Twice a year for PNP Officers).

4. Expand application of TARAS to include local roads by conducting pilot application in the selected provinces/cities in Luzon, Vizayas and Mindanao.

5. Strengthening of the DPWH-PNP MOA for TARAS.

KEI in association with SKI and DCCD Annex 1-10 Road Sector Institutional Development and Investment Program (RSIDIP)

6. Procurement of required equipment for the implementation of TARAS.

7. Conduct other activities to sustain TARAS, e.g., reproduction of Traffic Accident Report Forms, TARAS Manuals.

TIMEFRAME : 3 years

ESTIMATED COST : PhP 42.2 Million based on the following estimates:

Manuals and Traffic Accident Report (TAR) Form – PhP 2.2 M Equipment (computer and accessories) - 2.5 M Training at PhP 2.5 M per year Road Safety Management at P 10.0 M per year

KEI in association with SKI and DCCD Annex 1-11 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 10

TITLE : Improvement of Road Safety Audit (RSA) System

RATIONALE: The RSA system has been established within the department. It has been used to evaluate the worthiness of several ADB/IBRD-assisted road projects. More training is however needed. It is also essential to develop a sustainable Accident Prevention Program using the RSA system. Such a program should include the conduct of RSA on road sections not identified as black spots.

OBJECTIVE: To ensure a higher level of safety for all new highway schemes, newly completed road projects and existing roads by giving safety a primary consideration in each design and construction stage of the project.

SCOPE: 1. Development of a sustainable Accident Prevention Program using RSA procedures for the national road network;

2. Review and revise existing RSA policies and procedures;

3. Continuing training program for DPWH personnel and other government and private institutions on the principles and procedures of conducting RSA;

4. Development of an accreditation system for personnel who had undergone training on RSA;

5. Assistance to the Planning Service in the procurement and supervision of road safety projects; and

6. Conduct of RSA on road sections not identified as black spots.

TIMEFRAME : 6 years

ESTIMATED COST : PhP 185.5 Million

KEI in association with SKI and DCCD Annex 1-12 Road Sector Institutional Development and Investment Program (RSIDIP)

CONCEPT PAPER NO. 11

TITLE : SUPPORT TO ROAD PARTNERSHIP (BANTAY LANSANGAN) PHASE II

RATIONALE: The institutionalization of the Road Watch or “Bantay Lansagan” is being done under the NRIMP through the PEGR. It is pursued in partnership with various Non-Government Units (NGOs) and people organizations across the nation so as to encourage community vigilance and serve as a platform for citizen’s voice. Continuing assistance to the initiative is still needed in the next few years to ensure its sustainability.

OBJECTIVE: The general objective of the project is to provide continuous support to sustain “Bantay Lansangan” to effectively ensure its operations as a partner in good governance outside the sphere of government funding and vested interests. Still in its infancy BL still needs outside support to carry on its mission and to uphold its advocacy in promoting changes and reforms in Philippine road sector policies.

SCOPE: 1. Fund support to continue participatory results, monitoring and evaluation through public expenditure reviews in each budgetary cycle, planning and procurement;

2. Fund support to promote awareness of comparable and relevant global developments in the delivery of road services and road user strategies in improving road service delivery through networking and linkages;

3. Fund support to develop a series of training seminars, workshops, etc., on donor anti-corruption policy and on how DPWH staff and other stakeholders can best advance integrity in DPWH operations;

4. Fund support for the preparation and publication of the Road Sector Status Report Card; and

5. Fund support to provide the public relevant information on national road services as monitored and analyzed by making appropriate use of media, Internet, public forum and dialogues.

6. Fund support to build BL’s database on road sector information.

TIME FRAME : 3 years

ESTIMATED COST : PhP 48.0 Million

KEI in association with SKI and DCCD Annex 1-13 Annex 2 SELECTED PHILIPPINE ECONOMIC AND SOCIAL TNDTGATORS, 2OOO-2OO7 Road Sector Institutional Development and Investment Program (RSIDIP)

ANNEX 2

Selected Philippine Economic and Social Indictors 2000- 2007

KEI in association with SKI and DCCD Annex 2-1 Road Sector Institutional Development and Investment Program (RSIDIP)

KEI in association with SKI and DCCD Annex 2-2 Annex 3 DPWH INFRASTRUCTURE DEVELOPMENT PROCESS Road Sector Institutional Development and Investment Program (RSIDIP)

ANNEX 3

DPWH Infrastructure Development Process

1. In the DPWH, the development of an infrastructure project (e.g. road, bridge, flood control or water supply) follows a project development process consisting of four phases, as shown in the chart.

DPWH Infrastructure Development Process

I. Project Identification

2. The project is usually identified and prioritized from Pavement Management System (PMS) and Bridge Management System (BMS) outputs, area development surveys, master plans and regional development plans, etc. – undertaken by the DPWH and other concerned agencies such as National Economic and Development Authority (NEDA), Regional Development Council (RDCs), etc.

II. Project Preparation

a) Project Feasibility Study

3. Once the project is identified, a feasibility study is conducted. This consists of the various investigations and analyses necessary to determine whether the project is worth carrying out, and, if so, how. Thus, the feasibility study seeks to find out if and to what degree the project is desirable in technical, economical, social, environmental, financial, and operational terms.

4. Aside from the conventional feasibility criteria – e.g. appropriate engineering design and estimates with +/-20% accuracy, and an economic internal rate of return (EIRR) of at least 15% - the feasibility study must include: (a) an Environmental Impact Assessment (EIA) based on which an Environmental Compliance Certificate (ECC) must be secured from the Department of Environment and Natural Resources (DENR); (b) where necessary, a Resettlement Action Plan (RAP) to provide for the proper compensation and relocation of the project-affected persons; and (c) an endorsement from the RDC that the project is consistent with the development priorities of the region.

KEI in association with SKI and DCCD Annex 3-1 Road Sector Institutional Development and Investment Program (RSIDIP)

b) Inclusion in the Medium-Term Infrastructure Program and Budget

5. If the project passes the feasibility criteria, it is considered for inclusion in the DPWH medium-term infrastructure program and budget, provided that it is among the highest ranked candidate projects that meet the Multi-Criteria Analysis (MCA) score. MCA considers the following parameters:

 Project Preparedness (with ICC Approval, Economic Viability, Environmental Assessment and Social Impact)  Road Network Importance  Economic and Social Development Policy

6. The DPWH medium-term program in turn is integrated into the overall Philippine Medium Term Public Investment Program (MTPIP) prepared by NEDA.

7. The project must fit into the country lending program of the concerned International Financing Institution (IFI), which is prepared in consultation with NEDA, together with the DPWH and other implementing agencies, taking into account the priorities in the MTPIP. In case a long list of projects is proposed to the IFI for financing, the IFI reviews the list and advises the Government of the Philippines (GOP) of its recommended short list which can be funded under its loan ceiling.

c) Investment Coordination Committee (ICC) Approval

8. The ICC screening is done at three levels – NEDA technical staff, ICC Technical Board, and ICC Cabinet level. The ICC evaluates the merits of the project in relation to set criteria (conformance to national priorities, EIRR, inclusion in the medium term program and budget, etc.) and, if it finds that the project meets all the requirements, approves it. The project is then elevated to the NEDA Board for confirmation.

d) International Financing Institution (IFI) Appraisal

9. Once the project is approved by the ICC, the GOP submits it to the IFI for appraisal and eventual loan financing. The IFI conducts an appraisal of the project to review and confirm its feasibility and readiness for implementation. The IFI discusses with the GOP/DPWH the description of the project, its cost, financing to be made by the IFI and GOP, schedule, implementation arrangements (right-of-way clearance, bidding and contracting procedures, special project office, etc.) and conditions to be met before final negotiations (relocation of informal settlers, etc.). These are embodied in Minutes of Discussions/ Memorandum of Understanding signed by the IFI and GOP representatives, and in an Aide Memoire/Project Appraisal Document. These documents form the basis for the draft loan negotiation documents.

10. The DPWH obtains from the DBM a Forward Obligational Authority (FOA) to cover the multi-year funding requirements of the project, including both the proposed loan proceeds and GOP counterpart, as a prerequisite to loan negotiations and for contracting purposes.

KEI in association with SKI and DCCD Annex 3-2 Road Sector Institutional Development and Investment Program (RSIDIP)

e) Loan Negotiations

11. Loan negotiations for the project with the IFI are undertaken by a GOP panel usually chaired by the DOF, and composed of the DPWH, DBM, and BSP. The negotiations discuss and agree on the scope and description of the project, the project cost, the cost to be financed from the loan and the GOP counterpart, the schedule of implementation, the arrangements for implementation, including right of way acquisition and compensation and relocation of project affected persons, bidding and contracting procedures for detailed engineering and construction supervision and for civil works, project management, actions requiring concurrence or approval of the IFI, terms of financing and repayment, loan disbursement procedures, and other relevant terms.

12. After the loan is approved by the IFI, the loan agreement is signed by the GOP and the IFI officials.

f) Fund Appropriation

13. Based on its medium term infrastructure program and budget and loan negotiations, the DPWH includes the project in its proposed annual budget, submitted to the DBM, for incorporation in the National Expenditure Program (NEP) submitted by the President to the Congress for appropriation of funds under the General Appropriation Act (GAA) for the following year. The proposed appropriations for the project in the NEP cover both the loan proceeds and the GOP counterpart which are scheduled to be disbursed during the budget year.

g) Detailed Engineering

14. This consists of the various technical surveys and investigations, such as topographic surveys, soil borings, and hydrologic surveys, and design operations needed to define the detailed physical characteristics of the project, according to accepted engineering standards to an extent suitable for bidding purposes and with a degree of detail that will enable estimates of quantities and costs to be made within plus or minus 10% of the final figures. Detailed engineering also includes the preparation of bid documents, including plans, specifications, instructions to bidders, draft contract terms and conditions, bill of quantities, cost estimates and price analyses. Consultants are generally hired to do the detailed engineering in accordance with the procurement guidelines of the IFI as stated in the loan agreement.

15. Simultaneous to or as part of the detailed engineering, parcellary surveys are also undertaken to define the right-of-way needed and the properties affected.

III. Project Implementation

a) Fund Releases

16. Upon approval of the annual infrastructure program in about November of the preceding year and as soon as the GAA is approved, the DBM releases the funds for the project. This is done either automatically through the Agency Budget Matrix if the project is itemized in the GAA or through a Special Allotment Release Order (SARO) if the project is to be funded from a lump sum appropriation in the GAA.

KEI in association with SKI and DCCD Annex 3-3 Road Sector Institutional Development and Investment Program (RSIDIP)

b) Right-of-Way (ROW) Acquisition

17. The ROW for the project should be acquired and cleared ahead of actual construction, and preferably before the bidding, in order not to impede the work.

18. Where needed, the DPWH undertakes a parcellary survey to establish the technical descriptions of the lots to be acquired and estimates of the buildings and other improvements on the lots.

19. The Resettlement Action Plan done during the feasibility study is also refined based on the detailed engineering design and parcellary survey.

20. The acquisition and clearance of the ROW follow the provisions of R.A. 8974 and the guidelines for land acquisition and resettlement agreed with the IFI. These include proper compensation for the project affected persons and relocation of informal settlers to a suitable resettlement site according to R.A. 7279 (Urban Development and Housing Act). This is done in coordination with concerned agencies, e.g. LGUs, MMDA, NHA, etc.

c) Bidding and Contracting

21. In general, the project is undertaken by contract after competitive public bidding in accordance with the procurement guidelines of the IFI as stated in the loan agreement. If the project is large and if so stated in the loan agreement, an International Competitive Bidding (ICB) is conducted which is open to eligible local and foreign contractors, including joint ventures. The contractors must meet the prequalification requirements (e.g., having done projects of similar nature and value, financial capability, etc.). The bidding is conducted by the DPWH Bids and Awards Committee. The results of the prequalification are cleared with the IFI before proceeding with the receipt of bids. The results of the bids evaluation are likewise concurred in by the IFI before the DPWH makes the award to the winning bidder.

22. The contract is executed between the DPWH and the winning bidder using the contract form, terms and conditions given before the bidding as part of the Instructions to Bidders. The contract terms and conditions generally follow the internationally-accepted FIDIC form.

23. These include, among other things, the obligation of the contractor to carry out the work according to the approved plans and specifications within the prescribed durations, and the obligation of the DPWH to promptly pay the contractor for actual work accomplished according to the plans and specifications at the prices set in the contract. Provisions for performance bond and liquated damages are also included.

d) Construction

24. The contractor undertakes actual construction work, subject to the provisions of the contract. If the project is large or complex, it is supervised by a special Project Management Office (PMO) of the DPWH, in coordination with the concerned Regional/District Offices.

25. The PMO is normally assisted by consultants for construction supervision who are engaged in accordance with the IFI procurement guidelines as stated in the loan agreement. The PMO, with the assistance of the consultants, is generally responsible for all phases of project management, including detailed engineering, budgeting, assistance in the bidding process including bids evaluation, ROW acquisition, contract perfection, works supervision, quality

KEI in association with SKI and DCCD Annex 3-4 Road Sector Institutional Development and Investment Program (RSIDIP)

control, instructions to correct defects, checking statements of works accomplished, payments, monitoring, and funds administration – up to the completion of the project.

e) Completion and Acceptance

26. Project completion is the transition from the development to the operational stage. The PMO, with the assistance of its consultants, is responsible for preparing the Project Completion Report and as-built plans for submission to the DPWH management and to the IFI.

27. The DPWH makes the final payment to the contractor only after the PMO certifies that the entire contract works are satisfactorily completed, including correction of defects. The contractor’s Performance Bond is then released, but this is replaced by a Warranty Bond to ensure that the contractor will properly maintain and repair any defects on the completed project during the mandatory period, usually one year. After the warranty period and upon correction of any defects, the DPWH issues the Certificate of Acceptance.

IV. Project Operation and Evaluation

a) Operation and Maintenance

28. If the project is a national road or bridge, a major flood control structure, or a similar facility of national importance, the completed facility remains under the responsibility of the DPWH during the operation and maintenance phase. The District Offices normally undertake actual maintenance of the facilities by contract or by administration. Funds for this purpose are included in the Current Operating Expenses of the annual DPWH budget. Maintenance receives the highest priority in fund allocation to preserve the facilities in good condition, and thus efficiently function throughout their economic life.

b) Impact Evaluation

29. Impact evaluation or post-project appraisal is an attempt to assess if and to what extent the completed facility performs the functions as intended.

30. It includes an assessment of the actual benefits and cost arising from the completed project, as against those assumed or projected during the project study, covering the technical, economic, social, and environmental impact. This may deal on congestion (for a road), reduces flooding (for flood control), greater production and business, higher incomes and improved living conditions, enhanced environment, etc. The lessons learned from this impact evaluation will be used to revise or finetune the parameters, assumptions, and conditions in the preparation and implementation of the future projects to improve the results therefrom.

Source: DPWH

KEI in association with SKI and DCCD Annex 3-5 EI

lrJ= It \.. llJ n =l{El- qt9 o. Io= TOT 1.1 BAUANO.IAGUIO ROAD

A, COI{CREIE PAVIMINT Length = 500 mts Width 5.7 mts = 50 mm. AC Overlay 80 mm. AC Overlay l(x, mm. AC Orerlay lockinc and Ac overlav Direc't Unit Direct Unit Dired Unit Description U nit Quantity Amount Amount Amount Cost Cost Cost Removalof erhtlnr oct pavement so.m. 670 [email protected] 174,46'..30 260.39 774.467.30 [email protected] 174.461.30 Subcrade proEantlon so.m. 670 25.37 L6,957.70 25.31 L6.957.70 25.31 t6.957.70 Pcc pavem€nt (llaln), 23omm thick so.m. 1.775.47 747 -524.70 1.175.41 747,524.70 7.775.41 747,524.70 Bituminous ta€k eoat, amulsified asphalt ss-l ronnes 2.744 77,024.U 165,139.54 77.024.U 165.139.s4 77.O24.M 165.139.54 Bituminous €an€ntr turface wearins @urse s0,m. 1,765.35 5,9L3,922.50 2,8t4.73 9,M2.745.50 3.520.88 11,794,948.00 sealinl ofcra€k! rnd loints on existing pccp t.m. 2926 59.59 [email protected] 59.59 174.3&.4 59.59 [email protected] tstic pavement marking sq.m. 202.5 3,969.30 ao3,7a3.25 3,969.30 803,783.25 3,969.30 803.783.25 TOTAL COST = 8,036,149.33 7L,5&,972.33 73,9t7,174.43 UNIT COST/SQ.M. = 2,398.85 3,452.23 4.t5434

Scheme with Ac Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removalof cxigtlit Dcc pavement sq,m. 3350 4to.o7 t.373.7U.50 470.O7 7,373,734.50 tubarade prcBantlon sq.m. 3350 24.79 94,436.50 24.L9 94,436.50 Pcc pavemcniloTrln), 2oomm thick sq.m. 3350 1,095.58 3,673,543.@ 1,096.58 3,673,543.OO Sealim of craell rnd loints on exidinR pccg l.m. 2257 109.10 245.584.10 109.10 245,5U.70 Bituminous ta€t corl. rmulsified asphalt ss-l tonnes 2.7472 60,891.04 169,715.51 @,891.04 159,715.51 Bituminous €€nclata rurface wearinS cours€ sq.m. 5J5U 640.99 2.147,316.s0 3,427,753.50 nerlce(ur rzug lnlrmggrusuL lrdvcl||errr fl|dr irI|x tye[uw, sq.m, 47.061 E7t.26 41.002.37 '.O23.2l87L.26 41,oo2.37 r.sE lntrmggrts5Lrr PdvErrerr. rrcr twrILE, sq.m. 202.5 864.06 t74.972.L5 864.06 174,972.!5 ^errce.er ^n|a ToTAL COST = 7,920,304..62 9,200,74L.62 UNIT COST/SQ.M. = 2,364.27 2,746.49

Direct Unit Direct Unit Amount Amount Cost Cost 109.10 379,226.& 555.40 439,118.00 60,891.04 169.715.51 I,O23.21 3,427,753.50 477.26 47,OO2.37 864.06 t74,972.75 TOTAL COST = 3,291,35t.r2 4,57\7AA.72 uNrT cosT/sQ.M. = 942.49 t,364.77 Scheme A:!-1 Crack and Seat and AC Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Crack and seat of existinc Dcco {wlth asohalt levelinr coursel sq.m, 670 716.98 480,375.50 716.98 44O376.il Bituminous tack coat. emulsified asohalt ss-1 tonnes 60,891.04 169.715.51 60,891.04 169,715.51 Bitumlnous concrete surface wearins course sq.m. 640.99 2.147.3L6.50 7,O23.27 3.427.753.50 Reflectorized thermoolastic oavement markinc (vellow) sq.m, 47.061 871.26 47.O02.37 477.26 41,OO2.37 Reflectorized thermoDlastic oavement markinr (white) sq.m. 202.5 854.06 t74.972.r5 864.06 774,972.75 TOTAI- COST = 3,013,383.12 4,293,420.72 UN|T COST/SQ.M. = 899.s2 7,247.74

reflection crack control and AC Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Crack and seat of existinq DccD (with asohalt levelinr course) sq.m. 670 991.25 66/..L37.SO 991.25 664.137.50 991.2s &.L37.50 Bituminous tack coat. emulsified asDhalt ss-l tonnes 2.7472 77.O24.M 274,687.40 77,O24.U 214,6at.40 77 .024.U 274,5a14O Geotextile Davins fabric with class reinforcement sq.m. 670 489.35 327.A64-.50 489.35 327.46/..50 489.35 327.464.50 Bituminous concrete surface wearinq course sq.m. 3350 1.765.35 5,913,922.50 2,478.73 9.442.745.50 3,520.88 1 1.794.948.00 Reflectorized thermoolastic pavement markins sq.m. 774.96675 3.969.30 2.A37 -977 .52 3,969.30 2.837.977 .52 3,959.30 2.837.9L7 .52 TOTAL COST = 9,9s4,523.43 13,487,346.43 15,839,548.93 UNIT cosT/sQ.M. = 2,972.69 4,026.07 4,724.22

Sctreme A1| AC with Fabric Direct Unit Dired Unit Dired Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Sealinc of crack and ioints on existins DccD t.m. 2926 109.10 3L9,226.@ 109.10 379,226.@ Geotextlle oavinc fabric with dass reinforcement sq.m, 555.40 439.118.00 555.40 439,118.00 Bituminous tack coat, emulsified asphalt ss-1 ronnes 60.891.04 60.891.04 L69,715.57 Bituminous concrete surface wearinc course sq.m. 3350 540.99 2,747,376.50 7,023.27 3,427,753.50 Reflectorized thermoDlastic Davement markim {vellow) sq.m. 47.067 871.26 4t,oo2.37 87t.26 47.OO2.37 Refleqtorized thermoplastic oav€ment markinc (white) sq.m, 202.5 864.06 174,972.15 864.06 L74,972.75 TOTAL COST = 3,297,357.72 4,577,748.72 UNIT cosT/SQ.M. = 982.49 73&.71

SchemeA5 Ac on PCCP Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Sealinr of crack and ioints on existinc occ! t.m. 2926 109.10 379.226.& 109.10 3t9.225.ffi Eituminous tack coat, emulsified asohah ss-1 tonnes 2.744 60,891.04 130,550.39 60.891.04 130,550.39 Bituminous concrete surface wearinq course sq,m. 3350 640.99 2.147.376.50 1,O23.21 3,427.753.50 Patchinc of potholes sq.m. s3.6 1,283.01 58.769.34 1,283.01 68.769.34 Reflectorized thermoplastic pavement markint (vellow) sq.m. 47.067 871.26 47.O02.37 877.26 4t,0o2.37 R€flectorized thermoDlastic pavement markinc (white) sq,m. 202.5 864.06 174.972.t5 864.05 174,972.75 TOTAL COST = 2,447,437.34 4,762,274.34 UNIT cosT/sQ.M. = 860.25 r,242.47 B. AC PAVEMET{T Length = 300 mts Width 6.7 mts = 50 mm. AC Orerlay EO mm. AC olrerlay lqt mm. AC olrerlay Bl Reconstruction of existinc AC oavement Direct Unit Direct Unit Dired Unit Descrlption Unit Qua ntity Amount Amount Amount Cost Cost Cost Removalof existinr ac firvement sq.m. 2010 34.43 69.2U.30 34.43 59,204.30 34.43 69,20430 Subgrade preparation tonnes 2010 25.37 50,873.10 25.37 50.873.10 25.31 50,873.10 Bituminous Drime coat, cut-back asDhalt mc-70 ronnes 2.7537 57,OO5.27 156.975.25 57.OO5.2l 1s6,975.25 s7.005.21 156,975.25 Bituminous concrete surface wearint course sq.m. 2010 7.765.35 3.548.353.50 2,474.73 5,565.647.30 3,520.88 7.075.958.80 Refledorized th€rmoolastic Davement markinc sq,m. 727.5 3,969.30 482,269.95 3,959.30 442,269.95 3,969.30 482,269.95 TOTAL COST = 4,307,676.70 5,424,969.90 7,836,297.40 UNIT cosT/sQ"M. = 2,743.72 3,195.50 3,898.65

82 Reconstruction ofAC Pavementon PCCP Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removalof existinr ac Davement so.m. 2010 34.43 59.201.30 34.43 69,204.30 34.43 59.204.30 Sealinc of cracks and ioints on existinr DccD l,m, 7754 59.59 104,520.86 59.59 104,520.86 s9.59 104,520.86 Bituminous tack coat, emulsified asDhalt ss-1 tonnes 7.286/, 77,024.M 99.083.73 77.O24.U 99,083.73 77,024.M 99,083.73 Bituminous concrete surface wearlnn course so.m. 2010 1,765.3S 3,54&353.50 2.478.73 5.665.547.30 3,520.84 7,O76,98.84 Refl ectorized thermoplastic pavement marking sq.m, 727.5 3,969.30 442,269.95 3,959.30 482,269.95 3,969.30 442.269.95 TOTAL COST = 4,303,432.v 6,420,726.t4 7,432,M7.U uNrT cosT/sq.M. = 2,147.O7 3,194.39 3,896.54

fabric a course on 0ired Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost fuohalt levelinc course sq.m. 20ro 882.68 1.774.L76.75 882.58 7,774,77 6.7 5 882.68 r,774,776.75 Geotextile Davim fabric with class reinforcement sq.m. 20ro 489.35 983,593.50 489.35 983,593.50 489.35 983,593.50 Bituminous tack coat. emulsified asohalt ss-1 tonnes 2.5728 77,024.04 198,167.4s 77.O24.U 198.157.45 77,024.04 198,167.45 Bituminous concrete surface wearinl course sq.m. 2010 3,548,353.50 2.878.73 5.565.647.30 3,520.88 7,076,968.80 Reflectorized thermoplastic pavement marking sq.m. 12L.5 3,959.30 442,269.95 3,959.30 482.269.95 3,969.30 442,269.95 TOTAL COST = 6,986,561.15 9,103,854.95 10,515,175.45 UNIT COST/SQ.M. = 3,475.X 4,529.24 5,23t.43 84 AC Direct Unit Direct Unit Direct Unit Description U nit Quantity Amount Amount Amount Cost Cost Cost Bituminous tack coat, emulsified asohalt ss-1 ronnes 7.246/' 77,O24.U 99.083.73 77.O24.U 99,083.73 77,O24.U 99.O43.73 Bituminous concrete surface wearint course sq.m. 2010 1,765.35 3,548,353.50 2,414.73 s.565.647.30 3,520.88 7.075_968.80 Reflectorized thermoplastic pavement marking sq.m. r27.5 3.969.30 442,269.95 3,969.30 442,269.95 3,969.30 442,269.95 TOTAT COST = 4,729,707.7a 6,247,OOO.98 7,654322.48 uNrT cosT/sq.M. = 2,O54.54 3,707.96 3,810.11 tOT 1.1 BAUANG.EAGUIO ROAD

A. CONCRETE PAVEMEM Length = 500 mts Width 6.7 mts = 5{, mm. AC Overlay 80 mm, AC Overlay A2 PCCP Reconstruction with ACOverlav Total Unit Total Unit Description Unit Qua ntity Amount Amount Cost Cost Removal of existing pcc pavement sq.m. 3350 4to.o7 1.373.734.50 4ro.o7 1.373.734.50 Sub!rade preparation sq,m. 3350 28.19 ,436.50 28.r9 94,436.50 PCC Davement (plain), 200mm thick so,m, 3350 1,096.58 3.673.543.00 1,096.58 3.673.543.00 Sealinq of ioints of DccD l.m. 2251 109.10 245,584.10 109.10 245,584.10 Eituminous tack coat, emulsified asphalt ss-1 tonnes 2.7472 60.891.04 169,715.51 60,891.04 169.715.51 Bituminous concrete surface wearinq course sq,m. 3350 640.99 2,147,316.50 7,O23.21 3,427,753.50 Refl ectorized thermoDlastic Davement marking (vellow) sq.m. 47.06r 877.26 47,OO2.37 471.26 47,OO2.37 Reflectorized thermoDlastic Davement markins {white) so.m. 202.5 864.05 L74.972.75 864.06 774,972.75 TOTAL COST = [email protected] 9,2@,747.62 UNIT cosT/sQ.M. = 2,36/..27 2,746.49

AC with Fabric Total Unit Total Unit D€scription U nit Quantity Amount Amount Cost Cost S€alina of cracks and ioints on existinc Dccp l.m. 2251 109.10 245,584..tO 109.10 245,584.10 Geotextlle oavinr fabric with plass reinforcement sq.m. 655.40 439,118.@ 655.40 439,118.00 Bituminous tack coat, emulsified asDhalt ss-1 tonnes 2.7872 60,891.04 169,715.51 @,891.04 169,715.51 Bituminous concrete surface wearing course sq.m. 33s0 640.90 2,747,376.50 LO23.2L 3427,753.50 Reflectorized thermoolastic aavement markinc (vellow) sq.m. 47.067 477.26 47,OO2.37 477.26 4t,0o2.37 Reflectorized thermoDlastic pavement markinc (white) sq.m, 202.5 864.06 774.972.15 864.05 774,972.75 TOTAL COST = 3,2t7,708.62 4494,745.62 UNIT COsT/Sq.M. = 960.51 L,342.73

crack and Seat and Ac TotalUnit Total Unit Description U nit Quantity Amount Amount Cost Cost Crack and seat of existinq Dcco (with asDhalt levelinr coursel sq.m. 670 776.9A 480.375.50 716.9a 480.376.60 Bituminous tack coat. emulsified asDhalt ss-1 tonnes 2.7472 60,891.04 169.715.51 60,891.04 Bituminous concrete surface wearing course sq.m. 3350 810.99 2,747,3L6.50 7,O23.27 3.427,753.50 Refl ectorized thermoDlastic Davement markinc (vellow) sq.m. 47.067 471.26 47.OO2.37 477.26 4L,0O2.37 Refl ectorized thermoplastic pavement marking (white) sq.m, 202.5 864.06 774.972.t5 864.05 174.972.75 TOTAT COST = 3,013,383.12 4,293,820.12 UNIT COST/SQ.M. = 899.52 t,28t.74 BAUANG-BAGUIOIG-BAGUIO ROAD

50 mm. AC orrerlay EO mm. AC Oveday Scheme A4 AC Overlav with Pavinr Fabric Total Unit TotalUnit Description Unit Qua ntity Amount Amount Cost Cost Sealim of cracks and ioints on existins occo l.m. 2257 109.10 245,584.r0 109.10 245.584.10 Geotextile Davins fabric with slass reinforcement so.m, 655.40 439,118.00 6s5.40 439.118.00 Bituminous tack coat, emulsified asphalt ss-1 ronneS 2.7472 60,891.04 169.715.51 50,891.04 769,7L5.57 Bituminous concrete surface wearing course sq.m. 640.99 2.747.376.50 L,O23.27 3427,7s3.sO Reflectorized thermoplastic pavement marking (yellow) sq.m. 47.067 877.26 4t.0o2.37 47.OO2.37 Refledorized thermoplastic pavement marking (white) sq,m. 202.5 864.05 L74.972.75 864.05 L74,972.75 ToTAL COST = 3,2r7,70a.62 4,49a,745.62 UNIT COST/SQ.M. = [email protected] 1,342.73 SchemeAs AC on TotalUnit Total Unit Description Unit Quantity Amount Amount Cost Cost sealinc of crack and ioints on existinc pccp l.m. 2257 109.10 245,584.10 109.10 245.584.10 Bituminous tack coat, emulsified asDhalt ss-l ronnes 2.r44 60,891.04 130.550.39 60,891.04 130,550.39 Eltuminous concrete surface wearinc course sq,m. 540.99 2,t47,376.50 7,023.27 3.427.753.50 Patchinc of Dotholes sq.m, 1,283.01 4.769.U 1,283.01 4,769.4 Reflectorized thermoolastic Davement markinc (vellow) sq.m. 47.067 877.26 47,OO2.37 477.26 47,@2.37 Reflectorized thermoolastic pavement markinc (white) sq.m. 202.5 864.05 174.972.75 864.06 774,972.t5 IOTAT COST = 2,808,194.84 4,088,631.84 UNfT COST/SQ.M. = A3A27 1,22O.49 B. SHOUTDER Length = 100 mts Width = 1.1 mts Shceme 51 Gravel Shoulder with ACP Total Unit Description Unit Quantity Amount Cost SubSrade Preparation 5q,m. 110 28.19 3.100.90 AccreRate Base course (150mm thk.) cu.m. 16.5 1,109.09 18.299.99 Prime Coat ronnes 0.17 63,O75.72 70.112.67 Bituminous concrete surface wearinc course 5q,m. 110 640.99 70.508.90 TOTALCOST= !02.622.46 UNIT COST/SQ.M. = 932.93 Shceme 52 Existinq AcPACP overlaid with ACP Total Unit Description Unit Qua ntity Amount Cost Bituminous tack coat, emulsified asphalt ss-1 tonnes 0.08 50,891.04 4,47r.24 Bituminous concrete surface wearing course sq.m. 110 640.99 70,508.90 TOTAL COST = 75,380.18 UNfT COST/SQ.M. = &s.27 tOT 1.2 OTONGAFO-BUGATTON ROAD 8. AC PAVEMENT LengthLentth = 300 mts Width 6.7 mts = g) mm, AC Orerlay 80 mm. AC Orerlay of AC Pavement on PCCP Total Unit TotalUnit Description Unit Qua ntity Amount Amount Cost Cost Removalof existinr ac Davement sq,m. 2010 45.85 92,158.50 45.85 92,158.50 Sealim of cracks and ioints on existinc DCaD Lm. 7754 110.70 194.167.80 110.70 194.167.80 Bltuminous tack coat. emulsified asohalt ss-1 ronneS 7.24€4 59,590.02 76,656.60 59,590.02 75,655.60 Bituminous concrete surface wearlnr course so.m. 2010 603.83 1,213,598.30 963.81 1,937,258.10 Reflectorized thermoplastic pavement marking (yellow) 5q.m. 970.29 20.936.67 910.29 20,936.67 Reflectorlzed thermoplastic pavement marking (white) sq,m. 121.5 903.09 709.725.44 903.09 1o9.725.44 TOTALCOST= 7,707,343.31 2,430,903.11 UNIT COST/SQ.M. = U9.42 7,2O9.4O 84 AC on ACP Total Unit Total Unit Description Unit Qua ntity Amount Amount Cost Cost Bituminous tack coat. emulsified asohalt ss-1 tonneS L.zAU 59.590.02 76,656.@ 59.590.02 75,556.60 Bituminous concrete surface wearing course sq.m. 2070 603.83 1,213,698.30 963.81 1,937,258.10 Refl ectorized thermoplastic oav€ment markinc (vellow) sq.m. 910.29 20,935.67 910.29 20,936.67 Reflectorized thermoDlastic pavement markinc (white) sq.m. 121.5 903.09 709,725.44 903.09 709,725.44 TOTAf- COST = 7,427,077.o7 2,144,576.41 UNIT COST/SQ.M. = 706.97 1,056.95 C. SHq'DER5 Length = 100 mts Width = 2.1 mts s2 ACP Overlaid with AcP TotalUnit Description U nit Quantity Amount Cost Bituminous tack coat, emulsified asphalt ss-1 tonnes 0.15 59.590.02 8,938.50 Bituminous concrete surface wearinq course sq.m. 2ta 603.83 125,804.30 TOTATCOST= 13s.742.80 UNfT COST/SQ.M. = 96.39 s3 Gravelshoulder Total Unit Description Unit Quantity Amount Cost Subgrade Preparation sq.m. 214 27 3A 5,749.80 Attrecate Surface Course cu.m. 31.5 836.83 263&.75 TOTALCOST= 32,109.95 UNIT COST/SQ.M. = 152.90 tOT 1.2 OLONGAPO-BUGAIION ROAD

A" CONCRETE PAVEMENT Length = 500 mts Width 6.7 mts = 50 mm. AC Overlay 80 mm. AC olrerlay 1 Crack and Seat and AC Overlav Total Unit Total Unit Description Unit Quantity Amount Amount Cost Cost Crack and seat of existinc DccD sq.m. 670 @7.43 4&,574.70 @7.43 450,578.10 Bituminous tack coat. emulsified asphalt ss-1 tonnes 2.7472 59,590.02 166,089.30 59,590.02 155,089.30 Bituminous concrete surface wearing course sq.m. 3350 603.83 2.O22.430 .50 963.81 3,224,763.50 Reflectorized thermoDlastic Davement markinc (vellow) sq.m. 38.43 970.29 34,942.M 970.29 34,942.44 Reflectorized thermoDlastic oavement markim (white) sq. m. 202.5 903.09 t42.875.73 903.09 782.a75.13 TOTAL coST = 2,467,356.07 4,O73,289.07 UNIT CosT/sQ.M. = 855.93 1tlqql A/lAC with Fabric TotalUnit Total Unit Description Unit quantity Amount Amount Cost Cost Sealim of cracks and ioints on existinc occD t.m. 2926 110.70 323,908.20 110.70 323,908.20 Geotextile Davinc fabric with plass reinforcement sq.m. 674 570.42 449.449.40 670.82 449,449.40 Eituminous tack coat. emulsified asohalt ss-l ronnes 59,590.02 166.089.30 59,590.02 156,089.30 Bituminous concrete surface wearinq course sq,m. 603.83 2,022,830.50 963.81 3.224.763.50 Reflectorized thermoplastic pavement markine (vellow) sq.m. 38.43 910.29 34.942.44 910.29 34,942.44 Reflectorized thermoDlastic Davement markinq (white) sq.m. 202.5 903.09 r42.475.73 903.09 742.475.73 TOTAL COST = 3,180,135.57 4,386,068.57 UNIT cosT/sQ.M. = 9.29 7,309.27 SchemeA5 Ac on PCCP Total Unit TotalUnit Description Unit Qua ntity Amount Amount Cost Cost Sealinp of cracks and ioints on existinc Dccp l.m. 2926 7LO.70 323,904.20 170.70 323,908.20 Bituminous tack coat. emulsified asDhalt ss-1 tonnes 2.t44 59,590.02 727.76t.@ 59.590.02 127.767.00 Bituminous concrete surface wearinc courcc sq.m. 3350 603.83 2,022,430.50 963.81 3.228.763.50 Reflectorized thermoplastic pavement markina {yellow) so. m. 38.43 970.29 34,942.44 910.29 34,9a2.44 Reflectorized thermoplastic pavement markim (whlte) 50.m. 202.5 903.09 742.475.73 903.09 742,475.73 TOTAT cosT = 2,692,357.87 3,898,290.87 UNIT CoST/SQ.M. = 803.69 B. AC PAVEMENT length = 300 rnts Width 6.7 mts = 50 mm. AC Orerlay 80 mm. Ac Overlay lm mm, AC Overlry Scheme Bl Reconstruction ofexidinrAC Davement Dired Unit Direct Unlt Oirect U n it Descrlption Unit quantity Amount Amount Amount Cost Con Cost Removal of existing ac pavement sq.m. 2010 34.43 69.204.30 34.43 69,204.30 34.43 59.204.30 Subgrade preparation tonneS 2010 19.00 38,190.00 19.00 38,190.00 19.00 38,190.00 Bituminous Drime coat. cut-back asDhah mc-70 tonnes 2.7537 57.005.21 756,975.25 57,OOs.2r 156,975.25 57.005.21 756,975.25 Bhuminous concrete surface wearing course sq,m. 2010 544.80 1,095,048.00 865.15 1,738,951.50 7,O79.76 2,170,3t7.60 Reflectorized thermoDlastic oavement marknc sq.m. 121.5 3,969.30 442,269.95 3,969.30 482,269.95 3,969.30 442,269.95 TOTAL COST = 1,841,587.50 2,485,591.@ 2,9t6,957.tO UNIT COST/SQ.M. = 916.26 7,236.67 7,45t.22

Sctem€ 82 Reconstructlon ofAc Pavement on PCCP Direct Unit Dired Unit Dired U n it Descrlption Unit Quantity Amount Amount Amount Cost Cost Cost Removal of exidinc ac Davement sq.m. 2010 34.43 69,2M.30 34.43 69,204.30 34.43 59,2(X.30 Seallnc of cracks and ioints on existint pccp t.m. 77 54 59.59 104,520.86 59.59 104,520.86 59.59 104.520.86 Bituminous tack coat. emulsified asohah ss-1 tonneS 1.2864 5O053.17 72,106.80 56,053.17 72,106.80 56,053.17 72,106.80 Bituminous concrete surface wearint course sq.m. 2010 544.80 1,095,048.00 865.15 1,73&9s1.50 j'O79.76 2.770.3t7.60 Reflectorized thermopladic pavement marking 50.m. 121.5 ? q6q ?o 482,269.95 3,969.30 482,269.95 3,969.30 442,269.95 TOTAL COST = L,423,149.97 2,467,O53.47 2,898,419.51 UNIT cosT/sQ.M. = 907.U r,227.39 7,442.OO

AC fabrac and course on AC Direct Unit Direct Unit Dired Unit Descrlption Unit quantity Amount Amount Amount Cost Cost Cost Asohah levelinc course sn.m. 2010 277.O4 556,920.75 277.O8 555.920.75 277.O8 555,920.75 Geotextile pavinc fabric with class reinforcement so,m. 2010 489.35 983,593.50 489.35 983,593.50 489.35 983,593.50 Bituminous tack coat, emulsifled asohah ss-1 tonnes 2.5728 56,053.r7 744,273.60 55,053.17 744.213.60 56.053.17 144.213.60 Bituminous concrete surface wearing course sq,m. 2010 5i14.80 1,095,048.00 855.r5 1,738,951.50 I,O79.76 2,t70,3L7.@ Refledorized thermoplastic pavement markinS so.m. 121.5 3,969.30 482,269.95 3,959.30 442,269.95 3.969.30 4A2,269.95 TOTAT COST = 3,262,045.80 3,905,949.30 4,337 3r5.4O UNIT cosT/SQ.M. = t,622.9r 7,943.26 2,157.87 Scheme B4 AC on ACP Direct Unit Direct Unft Direct Unit D€scrlption UnA Quantity Amount Amount Amount Cost Cost Cost Bituminous tack coat. emulslfied asohah ss-1 tonnes L2464 56.0s3.17 72,LO5.80 56.053.17 72,706.80 56.053.17 72,106.80 Bituminous concrete surf,ace wearinc course sq.m. 2010 5rt4.80 1,095,048.00 865.15 1,738,951.50 t.o79.76 2.770.377.60 Reflectorized thermoplastic pavement markinS sq.m. 12L.5 a aaq tn 482,269.95 3,969.30 482,269.95 3,969.30 482,269.95 TOTAL COST . 7,649,424.75 2,293,328.25 2,724,694.35 UNIT COST/SQ.M. = 820.51 r,740. 1,355.57 Sch€ma A:l-l Crack and seat and AC Direct Unit Direct Unit Direct Unit Description Unit Qua ntity Amount Amount Amount Cost Cost Cost Crack and seat ofexistinr occo (with asohalt levelins course) sq.m. 670 578.27 387,440.90 578.27 347.440.90 578.27 347.440.90 Bitumlnous tack coat, emulsified asphalt ss-1 tonnes 2.747 2 56.053.17 156.231.40 56,053.17 156,231.40 56,053.17 756,237.40 Bitumlnous concrete surface wearinE course so. m. 3350 544.80 1,825,080.00 2,494,252.50 7.O79.76 3.617.195.00 Reflectorlzed thermoplastic pavement marking sq.m. 202.5 3,969.30 403,7a3.25 3,959.30 803.783.25 3,969.30 803.783.25 TOTAL COST = 3,172,535.55 4,245,7 08.O5 4,964,651.55 UNIT COST/5Q"M. = 947.O3 7,267.34 1,481.99

A:lZ crack and Seat with reflection crack control and Ac Dlrect Unit Dired Unit Direct Unit Description Unit quantity Amount Amount Amount Cost Cost Co5t Crrck and seat ofexisting Dccp (with asphalt leveling cou.s€) sq.m. 574.27 387.440.90 s78.27 347.440.90 574.2't 387,/t40.90 Bituminous tack coat. emulsified asohah ss-1 tonneS 2.7872 56,053.17 156.231.40 56,053.17 156.231.40 56.053.17 156,231.40 Geotextile Davinc fabric with class reinforcement sq.m. 670 489.35 327,A64.50 489.35 327,464.50 489.35 327.464.50 Bituminous concrete surface wearing course sq.m. 544.80 1,825,080.00 865.15 2,494,252.50 7,O79.76 3,617,196.00 Refledorized thermoplastlc pavement markinS sq.m. 220.644 3,969.30 a7 5,402.23 3,969.30 47s.4o2.23 3,969.30 475.4o2.23 TOTAL COST = 3,572,479.02 4,64s,597.52 5,364,535.02 UNIT cosT/sQ.M. = 1,066.39 \346.'14 1,601.35

A/lAC with Fabric and Cou rse Dired Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cod Cost Cost Sealinq ofcracks and ioints on existins DccD t.m. 2926 59.59 77 4,360.34 59.59 774.360.34 59.59 774.360.U Asohah leveling course 5q.m. 670 277.O4 185.640.25 277.OA 185.640.25 277.O4 185,640.25 Geotextile Davine fabric wlth rlass reinforcement so, m. 670 489.35 327,464.50 489.35 327.464.50 489.35 327.454.50 Eituminous tack coat, emulsified asDhah ss-1 tonnes 2.787 2 56.053.17 156,231.40 56,053.17 156,231.40 s6,053.17 156,231.40 Bitumlnous concrete surface wearing course sq.m. 3350 544.80 1,825,080.00 855.15 2,898,252.50 7.O79.76 3,617,196.00 Reflectorlzed thermoplastic pavement marking sq.m. 202.5 3,969.30 803.783.25 803.783.25 3,959.30 803,783.25 ToTAL COST = 3,47 2,959.7 4 4,546,732.24 5,265,07 5.7 4 UNIT COST/SQ.M. = I,036.70 1,357.05 1,571.65

AC on PCCP Direct Unit Direct Unit Direct Unit Description Unit Qua ntity Amount Amount Amount Cost Cost Cost seallnc ofcracks and ioints on existinc pccD t.m. 2926 59.59 1743&.34 59.59 174.360.34 59.59 774,360.34 Bituminous tack coat, emulsified asphah ss-l tonneS 2.t44 55,053.17 120,178.00 56,053.17 120.178.00 55.053.17 120.178.00 Bituminous concrete surface wearins course sq.m. 544.80 1,825,080.00 855.15 2,494,252.50 7,O79.76 3,617,196.00 Refl ectorized thermoplastic pavement marking sq.m. 202.5 3,959.30 803,783.25 3,959.30 803.783.25 3.969.30 803,783.25 TOTAL COST = 2,923,401.59 3,996,574.O9 4,7L5,577.s9 UNII COST/SQ.M. = 872.66 1,193.01 1,407.62 Length = 900 mts width 5.7 mts = 50 mm. AC Overl8y 80 mm. AC Overlry l(x, mm, AC Overlay AC Dired Unit Direct Unit Oirect Unit oescription Unit Quantity Amount Amount Amount Cost Con Cost Removal of existlnr Dcc Davement sq.m. 670 260.39 774.46t.30 [email protected] 174,46L.30 260.39 77 4,46L.30 SubErade preparatlon sq.m. 19.00 t2,730.N 19.00 12.730.00 19.00 72,730.OO rcC Davement (olaln). 230mm thick sq.m. 998.69 669,722.30 998.69 669,122.30 998.69 669,L22.30 Bitumlnous tack coat, emulsified asDhah ss-l tonnes 2.L44 56.053.17 120,178.00 56,053.17 120,178.@ 56,053.17 120,178.00 Eitumlnous concrete surface wearing course sq.m. 3350 544.80 1,825,080.00 865.15 2,898,252.50 7,O79.76 3,617,195.00 Sealinr ofcracks and iolnts on existinc occD l.m. 2926 59.59 774,360.34 59.59 174,360.34 59.59 [email protected] Reflectorized thermoplastic pavement marking 5q.m, 202.5 3,969.30 803,783.2s 3,969.30 803.783.25 3,969.30 803,783.25 TOTAL COST = 3,779,7 75.79 4,452,447.69 5,571,831.19 UNIT cOST/sQ,M. = \r24.27 7,448.62 7,663.23 ta No AC Dired Unit Direct Unit Direct Unit Description U nit Quantity Amount Amount Amount Cost Cost Cost Removal of existinq occ oa\€ment sq.m. 3350 250.39 872,306.50 2&.39 872,306.50 [email protected] 872,306.50 Subarade preparation sq.m. 3350 19.00 63,650.00 19.00 63,550.00 19.00 53,650.00 PCC Davement (Dlain). 230mm thick sq.m. 998.69 3,345,611.50 998.59 3,345,611.50 998.69 3,345,611.50 Sealinc ofcracks and ioints on exidinc pccp l.m. 2251 59.59 134.137.09 59.59 134.137.09 59.59 134.137.09 Reflectorized thermoolastic oavement markinc sq.m. 2V2.5 3,969.30 803,783.25 3,969.30 803,783.2s 3.969.30 803,783.25 TOTAT COST = 5,279,444.34 5,219,488.34 5,219,488.34 UNIT COST/SQ.M. = 1,558.06 1,558.06 1,558.06

Direct Unit Direct Unit Amount Amount Cost Cost 59.59 174.360.34 59.59 774.360.34 489.35 327,464.50 489.35 327,864.50 56,053.17 156,231.40 55.053.17 155,231.40 865.15 2,Aga,2S2.sO L,O79.76 3.617.196.00 3,969.30 803,783.2s 3,959.30 803,783.25 TOTAL COST = 3,287,379.49 4,360,491.99 5,O79,435.49 uNlT CoST/SQ.M. . 981.29 1,301.64 l,5ro.z5 roT 2.1b DAANG MAHARU|G ROAD (ULOAN-NAVAT HTGHWAYI

A" CONCRETE PAVEMENT 500 mts 6.7 mts 80 mm. AC orrlrlay 10O mm. AC Ov€rlay

Direct Unit Direct Unit Amount Amount Cost Cost [email protected] 174,467.30 [email protected] 174,461.30 20.3! 13,607.70 20.31 13,@7.70 7,025.20 586,884.00 7,O25.20 685,884.00 50,810.45 108,937.@ 50,81035 108,937.60 1,283.01 4,298,083.50 t ,@2.08 5,366,968.00 62.34 t82AO6.U 62.34 182,406.84 3,285.08 665,228.70 3,285.08 665,22a.70 TOTAL COST = 4s31,4s8.64 6,r29,@9.4 7,194,494.74 UNIT cosT/sQ.M. = 7,429.73 2,148.80

Sdreme A2 PCCP Reconstruction. NoAC Direct Unit Oirect Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removal ofexistinr occ oavement so.m. 3350 260.39 872,306.50 [email protected] 872,306.50 [email protected] 872,306.50 Subgrade preparation so.m. 3350 20.37 58,038.50 20.31 68,038.50 20.31 58,038.50 PCC pavement (plain), 230mm thick so.m. 1,o25.20 3,434,420.OO 1,025.20 3,434,42O.OO 7,O25.20 3,4U,420.W Sealins of cracks and ioints on existlnr occD Lm. 2257 62.4 740.327.U 62.34 t40.327.34 62.34 740,327.34 Reflectorized thermoplastic pavement marking sq.m, 202.5 3,285.08 665,228.70 3,285.08 665.228.70 3.285.08 665.228.70 TOTAL COST = 5,180 321.04 5,180,321.04 5,180,321.04 UNIT COST/SQ.M. = 1,546.36 L,546.36 1,546.36

Sdreme A3 AC with Fabric Direct Unit Dired Unit Direct Unit Description Unit quantity Amount Amount Amount Cost Cost Cost Sealim ofcracks and ioints on existinc DccD t.m. 62.34 782,406.U 62.34 t42,406.u 62.34 182,406.84 Geotextile paving fabric with glass reinforcement 50.m. 670 489.35 327.A&.50 489.35 327.46/-.50 489.35 327.464.50 Bituminous tack coat. emulsifled asDhalt ss-l tonn€s 2.7A72 50,810.4s 141,518.89 50,810.45 141.618.89 50,810.45 141.618.89 Bituminous concrete surface wearinc course so,m. 3350 805.95 2,699,932.50 1,283.01 4,298,083.50 1,602.08 5,366,968.00 Reflectorized thermoplastic pavement marklng so.m, 202.5 3,285.08 665.224.70 3,285.08 665,224.70 3,285.08 665,228.70 TOTAL COST = 4,O\7,O57.43 5,515,202.43 6,684,086.93 UNIT cosT/sQ"M. = L,t99.12 7,676.tA 1,995.25 Scheme A:t-l Direct Unit Direct Unit Direct Unit Description Unit quantity Amount Amount Amount Cost Cost Cost Crack and seat of existinc pccp (with arphalt levelina coursel sq,m. 670 707.74 470.165.80 701.74 470,165.80 707.74 470.165.80 Bituminous tack coat. emulsified asohalt ss-1 tonnes 2.7472 50,810.45 141.618.89 50,810.45 141.618.89 50.810.45 141,618.89 Bituminous concrete surface wearine course so,m. 3350 805.95 2,699,932.50 1,283.01 4.298.083.50 1,602.08 5,366,968.00 Refl ectorized thermoDlastic pavement markinc sq.m. 202.5 3,285.08 66.5.224.70 3.285.08 665.224.70 3.285.08 665,228.70 TOTAL COST = 3,976,945.89 5,575,096.89 6,643,981.39 UNIT COST/SQ.M. = 1,187.15 t,6&.21 1,983.28 Sch€fie A!l-2 crack and seat with reflection crack control and Ac Direct Unit Direct Unit Direct Unit Description U nit Quantity Amount Amount Amount Cost Cost Cost Crack and seat of existinc pccD (with asphah leveling coursel sq.m, 707.74 470,165.80 707.74 470,165.80 70t.74 470.165.80 Bituminous tack coat, emulsified asphalt ss-1 tonnes 2.7872 50.810.45 141.618.89 50.810.45 141,618.89 50,810.45 141.618.89 Geotextile Davinc fabric wlth dass reinforcement sq.m. 489.35 327.86/..50 489.35 327,86/.50 489.35 327,464..50 Bituminous concrete surface wearinc course sq.m. 805.95 2,699,932.50 1.283.01 4.298.083.50 1,602.08 5.356.968.00 Reflectorized thermoolastic oavement markins sq.m. 326.40975 3,285.08 r,072,242.74 3,285.08 1,072,242.14 3,285.08 7,072,242.!4 TOTAL COST = 4,77L,453.43 6,310,014.83 7 374,499.33 uNrT cosT/sQ.M. = 1,406.53 1,883.s9 2"202.66 A4AC with Fabric and Course Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Sealinc ofcracks and ioints on existins pccD t.m. 2926 62.34 742,406.U 62.34 182,405.84 62.34 742,406.U Asphalt levelinc course sq.m. 402.94 269.993.25 402.98 269,993.25 402.98 269.993.25 Geotextile pavinq fabric with elass .einforcement sq.m. 489.35 327,46,.50 489.35 327.Ag.50 489.35 327.464.50 Bituminous tack coat- emulsified asohalt ss-1 tonnes 2.7472 50,810.45 141.618.89 50.810.45 141.518.89 50.810.45 141_518.89 Bituminous concrete surface wearins course sq,m. 805.95 2,699,932.50 1,283.01 4,298,083.s0 1,602.08 5,366,968.00 Reflectorized thermoolastic Davement markins sq.m. 202.5 3,285.08 665,224.70 3,285.08 565,224.70 3,285.08 665.224.70 TOTAL COST = 4,247,044.64 5,885,195.68 6,954,080.18 UNIT cosT/sQ.M. = 7,279.77 7,756.77 2,O75.U

Sche{ne A5 AC on PCCP Direct Unit Direct Unit Direct Unit Description Unit Qua ntity Amount Amount Amount Cost Cost Cost sealins ofcracks and ioints on existins pccp l.m. 2926 62.34 742,405.U 62.34 !82,406.U 62.34 182,406.U Bituminous tack coat, emulsified asphalt ss-1 tonnes 2.744 50,810.45 108.937.60 50,810.45 108.937.60 50,810.45 108.937.60 Bituminous concrete surface wearinq course sq,m. 805.95 2,699,932.s0 1,283.01 4,298,083.50 1,602.08 5,366,968.00 Reflectorized thermoolastic pavement markins sq.m, 202.5 3.285.08 665,224.70 3,2E5.0E 665.228.70 3.265.08 665.224.70 TOTAL COST = 3,656,505.64 5,254,656.& 6,323,547.74 uNrT cosT/sQ.M. = 1,091.49 1,568.55 7,447.62 B. AC PAVEME'{T Length = 300 mts width = 6.7 mts 5{, mm, AC Overlay 80 mm. AC Overlay 100 mm. AC Overlay AC Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removal of existinc ac pavement 50.m. 2010 34.43 69.204.30 34.43 69.2U.30 34.43 69,2M.30 Subgrade preparation tonnes 2010 20.31 40.823.10 20.37 40,823.rO 20.31 40,823.10 Bituminous prime coat. cut-back asphalt mc-70 IOnneS 50.713.94 139.650.98 50,713.94 139,650.98 50,773.94 139,650.98 Bituminous concrete surface wearinq course sq.m. 2010 805.95 1,519,959.50 1.283.01 2,S78,850.10 1,602.08 3,220,180.80 Refl ectorized thermoplastic pavement marking sq.m. 121.5 3.285.08 399.L37.22 3.285.08 399.737.22 3.285.08 399.737.22 TOTAL COST = 2,268,775.70 3,227,665.70 3,868,996.40 uNrT cosT/sQ. M. = 7,728.74 1,605.80 r,924.47

Scheme 82 Reconstruction of AC Direct Unit Direct Unit Direct Unlt Description U nit Quantity Amount Amount Amount Cost Cost Cost Removal of existinc ac pavement sq.m. 2010 34.43 69,204.30 34.43 69.204.30 34.43 59,204.30 sealinq of cracks and ioints on existinc occD l.m. 7754 62.34 109,344.36 62.34 109.3,t4.35 52.34 109,3114.36 Bituminous tack coat. emulsified asDhalt ss-1 tonnes L.2a6/. 50,810.45 65,362.56 50.810.45 55,362.55 s0.810.45 65,362.56 Bituminous concrete surface wearins course so.m. 2010 805.95 1.619.959.50 1,283.01 2,578,850.10 L,@2.O4 3,220.180.80 Reflectorized thermoplastic pavement marking sq.m. 121.5 3.285.08 399.137.22 3.285.08 399.!37.22 3,285.08 399.737.22 TOTAT COST = 2,263,007.94 3,22t,494.54 3,463,229.24 UNIT COST/SQ.M. = 7,725.47 r,602.93 7,922.OO

83 AC overlav with paving fabric and leveling course on existing AC Direct Unit Direct Unit Direct Unit Description U nit Quantity Amount Amount Amount Cost Cost Cost Asphalt levelinq course sq.m. 2010 402.98 4o9.979.75 402.94 4o9.979.7s 402.94 4o9.979.75 Geotextile oavinc fabric with class reinforcement so.m. 2010 489.35 983.593.50 489.3s 983.593.s0 489.35 983,593.50 Bituminous tack coat. emulsified asphalt ss-1 tonnes 2.5728 50.810.45 130.725.13 s0.810.45 130.725.13 50.810.45 L30.725.L3 Bituminous concrete surface wearing course sq.m. 2010 805.95 1,619,959.50 t.2a3.oL 2,578.850.10 1,602.08 3.220.180.80 Reflectorized thermoDlastic pavement markint sq.m. 127.5 3.285.08 399.737.22 3.285.08 399,t37.22 3,285.04 399,737.22 TOTAL COST = 3,943,395.10 4,902,245.70 5,543,616.40 UNIT COST/SQ.M. = 1,961.89 2,434.95 2,754.O2

84 AC on ACP Direct Unit Direct Unit Direct Unit Description U nit Quantity Amount Amount Amount Cost Cost Cost Bituminous tack coat. emulsified asDhalt ss-1 ronnes 7.246/ 50,810.45 65,362.56 50,810.45 65,362.56 s0,810.45 65.362.56 Bituminous concrete surface wearinc course so. m. 2010 805.95 1,619,959.50 1,283.01 2,578,850.10 1,602.08 3,220,180.80 Reflectorized thermoolastic Davement markins sq.m. 121.5 3.285.08 399.137.22 3,285.08 399,737.22 3,285.08 399,137.22 TOTAL COST = 2,O8r'.,459.28 3,043,349.88 3,684,680.s8 UNIT COST/SQ.M. = r,o37.04 1,514.10 7,433.77 tor 2.1b DAANG MAHARUKA ROAD (ULOAN-NAVAT HIGHWAYI A COfiCNflE PAVEMENT Length = 5O0 mts Wadth 6.7 mts = 5(, mm. Ac oiretlay E{, mm. AC Orerlay A3 AC Ov€rlav with Pavinc Fabric TotalUnit TotalUnit Description Unit quantity Amount Amount Cost Cost SealinR of cracks and ioints on existins pccp t.m. 2926 774.34 334,558.84 714.34 334.558.84 Geotextile Davim fabric with rlass reinforcement sq.m. 653.13 437.597.70 653.13 437,597.!O Bituminous tack coat, emulsified asphalt ss-1 tonnes 2.7872 66.159.17 184,398.84 66.159.17 184,398.84 Bituminous concrete surface wearing course 5(I.m. 3350 578.11 2,27L,668.50 1,082.59 3,626,676.50 Reflectorized thermoDlastic Davement markinc (vellow) sq.m. 866.62 73,865.92 866.62 13,865.92 Reflectori2ed thermoDlastic pavement markine (white) sq.m. 202.5 859.42 174.O32.55 459.42 774.032.55 TOTAL COST = 3476,721.75 4,77 7,129.75 UNIT cosT/sQ.M. = L,019.74 7,424.22 I crack and Seat and AC Total Unit Total Unit Description Unit ntity Amount Amount Qua Cost C.'st Crack and seat of existinc pccp (with as9halt leveling cou6e) sq.m. 674 735.97 493.099.90 735.97 493.099.90 Bituminous tack coat. emulsified asDhalt ss-l tonnes 2.7872 55.159.17 t8r'39a.u 56.159.17 78/.,394.U Bituminous concrete surface wearins course sq.m. 3350 fla.Ll 2,277,6ffi.50 1,082.59 3,626,676.50 qt Reflectorized thermoDlastic Davement markins (vellow) sq.m. IE 866.62 tt aaq 865.62 73,465.92 Reflectorized thermoplastic gavement markinc (white) sq.m. 202.5 859.42 174.032.55 859.42 774.032.55 TOTAL COST = 3,L37,065.77 4,492,073.77 UNIT COST/Sa.M. = 936.44 t,340.92 B. SHOUI.DER Length = 100 mts Width = 2 mts

51 Gravel Shoulder with ,ACP Total Unit Description U nit Qua ntity Amount Cost subgrade Preparation sq.m. 200 2.l.36 5,676.00 Arrrecate Base Course (150mm thk.) cu.m. 957.66 28.729.40 Prime Coat tonnes 0.31 8,297.43 27.t70.34 Bituminous concret€ surface wearing course (50mm thk.) sq.m. 674.71 135,622.00 TOTAL COST = 191,198.14 uNrT cosT/sq.M. = 955.99 Scheme 52 ACP Overlaid with ACP Total Unit Description Unit qua ntity Amount C-ost Eituminous tack coat. emulsified asDhalt ss-1 tonnes 0.14 66,159.17 9,262.28 Bituminous concrete surface wearing course (50mm thk.) sq.m. 204 678.11 135,622.00 TOTAL COST = t44,A84..2A UNIT COST/SA.M. = 724.42 Length = 500 mts Width 6.7 tnts = 50 mm. AC Overlay 80 mm. AC orrerlay 100 mm. AC Ovorlsy Al Concrete re-blockins and AC Overlav Dired Unlt Direct U n it Direct Unit Descrlption Unit Qua ntity Amount Amount Amount Cost Cost Cod Removal of existlng Dcc Davement sq.m. 670 260.39 774.461.30 260.39 774.46L.30 260.39 174,467.30 Subcrade Dreparation sq.m, 670 20.37 73.607.70 20.37 13.607.70 20.31 73.607.70 PCC Davement {Dlaln). 230mm thick 50, m. 670 1,025.20 686,884.00 7,O25.20 686,884.00 7,O25.20 686,884.00 Bituminous tack coat. emulslfied asohalt ss-1 tonnes 2.744 50,810.45 108,937.60 50,810.45 108,937.60 s0.810.45 108.937.60 Bituminous concrete surface wearint course sq.m. 3350 805.95 2,699 ,932.50 1,283.01 4,298,083.50 1,502.08 5,366,968.00 Sealinc ofcracks and ioints on existinc DccD t.m. 2926 62.34 182,406.84 62.34 782,406.U 62.34 182,405.84 Reflectorized thermoDlastic Davement markinr sq.m. 202.5 3,285.08 665,224.70 3,28S.08 665,228.70 3,285.08 66.5.228.70 TOTAL COST = 4,531,458.64 6,129,609.U 7 ,794,494 .14 UNIT COST/SQ.M. = t,3s2.67 L,429.73 2,148.80

A2 PCCP Reconstruction. No AC Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removal of existinc Dcc oavement sq.m. 3350 250.39 872,306.50 260.39 872,306.50 260.39 872,305.50 Subgrade preparation sq.m. 3350 20.31 58,038.50 20.31 68,038.50 20.31 68,038.50 PCC Davement (olainl. 230mm thick sq. m. 3350 1,O25.2O 3,434,420.OO I,O25.20 3,43/,420.0O 7,O25.20 3.434.420.@ Sealinc ofcracks and ioints on existinc pccp l.m. 2257 62.34 L40,327.34 62.34 t40.327.34 62.34 140327.34 Reflectorized thermoplastic Davement markint sq.m. 202.5 3.285.08 665,224.70 3,285.08 665,228.70 3,285.08 665,224.70 TOTAT COST = 5,rao32r.M 5,180,321.04 s,180,321.04 uNrT cosT/sQ.M. = 7,546.36 1,546.36 1,546.35

SchemeA3 AC with Fabric Direct Unit Direct Unit Direct Unit Description Unit quantity Amount Amount Amount Cost Cost Cost Sealine ofcracks and ioints on exidinr occD t.m, 2926 62.34 142,406.U 62.34 t42,406.84 62.34 782,406.84 Geotextile Davinc fabric with dass reinforcement sq.m. 670 489.35 327.464.50 489.35 327.864.50 489.35 327,864.50 Bituminous tack coat, emulsified asphah ss-1 tonnes 2.7872 50,810.45 141.618.89 50,810.45 141,618.89 50,810.45 141,618.89 Bituminous concrete su rface wearin{ course sq.m. 3350 805.95 2,699,932.50 1,283.01 4,298,083.50 1,502.08 5,366,968.00 Reflectorized thermoplastic pavement marking sq.m. 202.5 3,285.08 665.22a.70 3,285.08 66s,228.70 3,285.08 665,228.70 TOTAT COST = 4,077,Os7.43 5,615,202.43 5,584,086.93 UNIT COST/SQ.M. = 7,799.t2 7,676.r8 1,995.25 1 CIack and Seat and AC Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Crack and seat of existinr DccD (with asDhalt levelins course) so.m. 670 70L.74 470.165.80 70].74 470,155.80 707.7 4 470,16s.80 Bituminous tack coat. emulsified asDhah ss-1 tonneS 2.7872 50,810.45 141,618.89 50.810.45 141,518.89 sq810.45 141,518.89 Bituminous concrete su rface wearing cou rse sq.m. 3350 805.95 2,699,932.50 r,283.01 4,298,083.50 1.602.08 5,366,968.00 R€fl ectorized thermoplastic pavement marking 50. m. 202.5 3,285.08 665.228.70 3,285.08 66s,228.70 3,285.08 665,228.70 TOTAT COST = 3,976,945.49 5,575,096.89 6,643,981.39 UNIT COST/SQ.M. = 1,187.15 7,66/..2r 1,983.28

5ch€me Crack and controland AC Direct Unit Dired Unit Direct Unit Descrlption Unit Qua ntity Amount Amount Amount Con Cost Cost Crack and seat ofexistinc DccD (with asphall levelinfl course) sq.m. 670 701.7 4 470,155.80 707.7 4 470,165.80 70t.74 470.165.80 Bituminous tack coat, emulsitied asDhalt ss-1 tonnes 2.7472 50.810.45 141.618.89 50,810.4s 141,518.89 50,810.45 141,518.89 Geotextile oavinE fabric with class reinforcement sq.m. 489.35 327.864.50 489.35 327.46r'.50 489.35 327,864.50 Bituminous concrete surface wearing course sq.m. 805.95 2,699 ,932.50 1,283.01 4,298,083.50 1,502.08 5,366,958.00 Reflectorized thermoDlastic Davement ma*ins sq.m. 326.40975 3,285.08 LO12,242.74 3,285.08 7,O7 2,242.74 3,285.08 1,o72,282.74 TOTAL COST = 4,711,863.83 5,310,014.83 7 374,49p.33 UNIT cosT/sQ.M. = 1,406.s3 1,883.59 2,202.66

SchemeA/[ AC with Fabric and Course Dired Unit Direct Unit Direct Unit Description U nit Quantity Amount Amount Amount Cost Cost Cost Sealinc ofcracks and ioints on existinc accD l.m. 2926 62.34 182,406.U 62.34 182,406.84 62.34 182,406.84 Asphah leveling course sq,m. 670 402.98 269,993.25 402.98 269,993.25 402.98 269,993.25 Geotextile oavins fabric with class reinforcement sq.m. 670 489.35 327 ,864.sO 489.35 327.864.50 489.3s 327,464.50 Bituminous tack coat, emulsitied asDhah i5-1 tonnes 2.1472 50.810.45 141,518.89 s0,810.4s 141,618.89 50.810.45 141.618.89 Bituminous concrete surface wearing cou rse sq.m. 3350 805.95 2,699,932.50 1,283.01 4.298.083.50 1,602.08 5,365,958.00 Refledorized thermooladic Davement markinc sq.m. 202.5 3,285.08 665.224.70 3,28s.08 665.224.70 3,285.08 565,224.70 TOTAL COST = 4,247,044.68 5,885,195.68 5,954,080.18 UNIT cosT/sQ.M. = 7,279.77 r,756.77 2,O75.9

A5 AC on PCCP Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cod Sealinc of cracks and ioints on existing pccp l.m. 2926 62.34 782,406.44 182,406.84 62.34 182,406.&l Bituminous tack coat, emulsified asphalt ss-l ronneS 2.7M 50,810.45 108,937.50 50.810.45 108.937.60 50,810.45 108.937.60 Bftuminous concrete surface wearine course sq.m. 3350 805.95 2,699,932.50 1,283.01 4.298.083.50 1.502.08 5,366,968.00 Refl ectorized thermoolastic Davement markins sq.m. 202.5 3,285.08 665,224.70 3,285.08 665,228.70 3,285.08 665,224.70 TOTAL COST = 3,656,505.64 s,2s4,656.U 6,323,54r.74 UNIT COST/SQ.M. = 1,091.49 1,558.55 L,447.62 Length = 300 mts Width 6.7 mts = 50 mm. AC Oferlay 80 mm. AC Or,erlay 100 mm. AC Overlay Scheme 81 Reconstruction ofexistinr Ac oavement Direct Unit Direct Unit Direct Unit Description U nit quantity Amount Amount Amount Cost Cost Cost Removal of existinc ac oavement 5q.m. 2010 34.43 69,204.30 34.43 69,204.30 34.43 69.2U.30 SubSrade preparation ronneS 2010 20.31 40.823.10 20.31 40,423.to 20.37 40.423.70 Bituminous prime coat, cut-back asphah mc-70 tonoeS 2.7537 so.773.94 139,650.98 50.713.94 139,650.98 50.713.94 139,650.98 Bituminous concrete surface wearin{ course sq.m. 20M 805.95 1,519.959.50 1.283.01 2,578,850.10 1,602.08 3,220,180.80 Refl ectorized thermoplastic pavement markinS sq.m. 727.5 3,285.08 399,737.22 3,285.08 399.737.22 3,285.08 399.137.22 TOTAL COST = 2,264,775.1O 3,227,665.70 3,858,995.40 UNIT COST/SQ.M. = 1,124.74 1,605.80 7,924.47

82 Reconstructlon ofAC Pavement on PCCP Dircct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removalof existinc ac Davement 5(l,m. 20L0 34.43 69.204.30 34.43 69,204.30 34.43 69,204.30 Sealinc ofc€cks and ioints on existina DccD l.m. t754 62.34 709,344.36 62.34 109.344.36 62.34 109,344.35 Bituminous tack coat. emulsllled asohah ss-1 tonneS 1.2864 50,810.45 65,352.55 50.810.45 65.362.56 50,810.45 55,362.55 Bituminous concrete surface wearing course 50,m. 2010 805.95 1,519,959.50 1,283.01 2,578,850.10 1,602.08 3,220,180.80 Reflectorized thermoDlastlc oavement markinr sq.m. t2L.5 3,285.08 399,L37.22 3.285.08 399.737.22 3,285.08 399.737.22 TOTAI COST = 2,263,OO7.94 3,227,898.54 3,463,229.24 UNIT COST/SQ.M. = L,r25.87 1,602.93 1,922.@ Sdcme 83 AC with fabric and course on Dired Unit Direct Unit Direct Unit Des€ription U nit Quantity Amount Amount Amount Co5t Cost Cost AsDhah levelinc course sq.m. 2070 402.98 809,979.75 402.98 809.979.75 402.98 [email protected] Geotextile Davim fabric with dass reinforcement sq.m. 2010 489.35 983,s93.50 489.3s 983,593.50 489.35 983,593.50 Bituminous tack coat. emulsified asDhah ss-1 tonnes 2.5724 50,810.45 t30.7 25.13 50.810.45 730,725.L3 50,810.45 730.725.73 Bituminous concrete surface wearinl course sq.m. 2070 805.95 1.519.959.50 1.283.01 2.578.850.10 1,602.08 3,220,180.80 Refl ectorized thermoDlastic Davement markins sq.m. 3,285.08 399,737.22 3,285.08 399.737.22 3.285.08 399.137.22 TOTAT COST = 3,943,395.10 4,902,285.70 5,543,616.40 UNIT COST/SQ.M. = 1,961.89 2,438.95 2,758.O2 B4 AC on ACP Direct lJnit Direct Unit Direct Unit Descrlption U nit quantity Amount Amount Amount Cost Cost Cod Bituminous tack coat, emulsified asDhalt ss-1 tonnes 1.2864 50.810.45 65,362.55 50,810.45 65,362.56 50,810.45 65,362.55 Bituminous concrete surface wearing course sq.m. 2010 805.95 1,619,959.50 1,283.01 2,578,850.10 1,602.08 3,220,180.80 Reflectorized thermoplastic pavement markinc sq.m. 127.5 3,285.08 399.137.22 3,28s.08 39.137.22 3,285.08 399.137.22 TOTAT COST = 2,044,459.24 3,043,349.88 3,584,680.58 UNIT COST/Sa,M. = 7,037.O4 1,514.10 7,433.17 Length = 5@ mts Width 6.7 mts = 50 mm. AC Overlay 80 mm, AC Ovcrlay 100 mm. AC Orerlay A2 PCCP Reconstruction with Ac overlav Total Unit Total Unit Total Unit Description U nit Qua ntity Amount Amount Amount Cost Cost Cost Removal of existing Dcc Davement sq.m. JJ5U 4t3.23 73U,320.50 473.23 1,384,320.s0 4t3.23 7,3U,320.50 Subgrade preparation sq.m. 3350 28.38 95,073.00 28.38 95,073.00 28.38 95,073.00 Attrerate subbase course, 200mm thick so.m. 670 &t.24 429.657.& 647.28 429,6s7.il 6/.1.24 429,657.& PCC oavement (olain), 200mm thick so.m. 3350 1,033.15 3.451.052.50 3,461,052.50 1,033.15 3,451,052.50 Sealim of ioints of pccp t.m. 2257 L14.34 257.379.U 114.34 257,379.34 7t4.34 257,379.34 Bituminous tack coat, emulsified asphalt ss-1 ronnes 2.7872 66.759.t7 184.398.84 56.159.17 184,398.84 65,159.17 184,398.84 Bituminous concrete surface wearing course so.m. 3350 673.82 2.257.297.OO Reflectorlzed thermoplastic pavement marking (yellow) so.m. t2 865.52 10.399.44 866.62 10,399.214 866.62 10.399.44 Reflectorlzed thermoplastic pavement marking (white) so,m, 202.5 459.42 774.O32.55 859.42 174,O32.55 4s9.42 t74,O32.55 TOTAL COST = 4,253,670.77 5,996,3t3.77 5,996,373.77 UNIT cOST/Sq.M. = 2,463.76 7,749.94 L7A9.94

SchemeA3 AC with Fabric Total Unit Description Unit quantity Amount Cost Sealing ofcracks and ioints on existing pccp l.m. 2926 Lt4.U 334,558.84 Geotextile paving fabric with glass reinforcement sq.m. 670 553.13 437,597.70 Bituminous tack coat, emulsmed asphalt ss-l tonnes 2.7472 66,159.17 184,398.84 Bituminous concrete surface wearing course sq.m. 3350 673.42 2,257,297 .OO Reflectorized thermoplastic pavement marking (yellow) sq.m. L2 466.62 10,399.rt4 Reflectorized thermoplastic pavement marking (white) sq,m. 202.5 4s9.42 774,032.55 TOTALCOST= 339A,2A3-77 UNIT cosT/sQ.M. = 1,014.41

SchemeA5 AC on PCCP Total Unit Description Unit Q.uantity Amount Cost Sealing ofcracks and ioints on existinc pccp l.m. 2926 Lt4.4 334,558.84 Bituminous tack coat, emulsified asphalt ss-1 tonnes 2.144 66,159.17 t47,U5.26 Bituminous concrete surface wearing course sq.m. 3350 673.42 2,257,297.@ Reflectorized thermoplastic pavement marking (yellow) sq.m. 72 6bb.bz 10,399./t4 Reflectorlzed thermoplastic pavement marking (white) sq.m. 202.5 859.42 174,032.55 TOTALCOST= 2,918,133.09 UNIT COST/SQ.M. = 871.08 Length = 300 mts Width 6.7 mts = 50 mm. AC Overlay Scheme 84 AC Overlav on existinc AcP Total Unit Description Unit Quantity Amount Cost Bituminous tack coat, emulsified asphalt ss-1 tonnes 7.246,. 56,159.17 8s,107.16 Bituminous concrete surface wearing course sq.m, 2010 673.82 1,354374.2O Reflectorized thermoplastic pavement markine (vellow) sq.m, ll 866.62 t7,265.06 Reflectorized thermoplastic Davement markins (white) sq.m. ttt.t 859.42 104,419.53 TOTAL COST = 1,5s5,170.9s UNIT COST/SQ.M. = 773.72

C. SHOUIDER

Length = 100 mts

Width = mts

Scheme Sl Gravel Shoulder with AcP Total Unit Description Unit Quantity Amount Cost SubSrade Preparation sq,m. 150 28.38 4,257.OO Aggregate Base Course (150mm thk.) cu.m. 954.74 27,464.15 Prime Coat tonnes 0.23 68,291.43 15,707.O3 Bituminous concrete surface wearing course sq,m. 150 673.42 101,073.00 TOTAL COST = 142,505.18

u N rT cosT/sQ.M . = 950.03

scheme S2 ACP Overlaid with AcP Total Unit Description Unit Quantity Amount Cost Bituminous tack coat, emubmed asphalt ss-1 tonnes 0.11 66,759.!7 7,277.57 Bituminous concrete surface wearing course sq.m. 150 673.42 101,073.00

TOTAL COST = 108,350.51

UNIT COST/SQ.M, = 722.U LOT 2.2 |tolt O-CAP|Z ROAD

A. CONCREIE PAVEMENT Iength = 500 mts Width 6.7 mts = 50 mm. AC Overlay 80 mm. AC Overlay 100 mm, AC Overlay Al concrete re-blockinc and Ac overlav Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cod Cost Remova I of existinc pcc pavement s{.m. 570 260.39 77 4.467.30 250.39 t7 4.467.30 260.39 174.461.30 Subgrade preparation sq.m. 670 20.31 13,607.70 20.3r 73.607.70 20.31 13,607.70 PCC Davement (olain). 230mm thick sq.m. 670 1,045.88 700,739.50 1,045.88 700,739.60 1,045.88 700.739.60 Eituminous tack coat. emulsified asDhalt ss-1 tonnes 2.144 52,907.54 t73,433.77 52,907.54 r73,433.77 52,907.54 7r3,433.77 Bituminous concrete surface wearing course sq.m. 3350 640.67 2,t46,2M.50 1.108.20 3 .7 72.470.0O t.277.51 4,259,558.50 Sealins ofcracks and ioints on exidins pccp l.m. 2926 62.44 182,816.48 62.44 182,816.48 62.48 182,816.48 Refl ectorized thermopla5tic pa\/ement ma rking sq.m. 202.5 3,078.30 3,078.30 623.355.75 3,078.30 TOTAT CosT = 3,954,559.10 5,520,884.60 6,067,973.LO uNlT cosT/sQ.M. = 1,180.50 1,548.03 1,811.34

Scheme A2 PCCP Recondruction. No AC Dired U n it Direct Unit Amount Amount Cod Cost 260.39 872,306.50 a7 2,306.50 20.37 68,038.50 20.37 68,038.50 1,045.88 3,503,698.00 1,045.88 3,503,698.00 62.48 740.642.48 62.48 740,642.48 3,078.30 623,355.75 3,078.30 523,355.75 TOTAL COST = 5,204,O4L.23 5,2O4,O4t.23 5,204,o47.23 UNIT COST/SQ,M. = 7,554.64 1,554.54 r,554.U

SchemeA3 AC with Fabric Dired Unit Direct unit Dired Unit Description Unit quantity Amount Amount Amount Cost Cost Cod Sealinq ofcrack and ioints on existins occp l.m. 2926 62.44 L42,476.44 62.44 182.816.48 62.44 182,815.48 Geotextile Davinr fabric with class reinforcement sq.m. 670 489.3s 327,46/..50 489.35 327,464.50 489.35 327,464.50 Bituminoustack coat, emulsified asphalt ss-1 ronnes 2.7472 52s07.s4 r47.463.90 52.907.s4 747.463.90 52.907.54 147.463.90 Bituminous concrete surface wearing course sq.m. 3350 640.67 2.746.244.50 1,108.20 3,712,470.O0 7,27 t.57 4,2s9,558.50 Reflectorized thermoplastlc pavement marking sq.m. 202.5 3,078.30 623,35s.7s 3,078.30 623,355.75 3,078.30 623,355.75 TOTAL COST = 3,427,745.L3 4,993,970.63 5,541,059,13 UNIT CosT/sQ.M. = 7,023.27 t,490.7 4 1,654,05 Crack and Seat and AC Direct Unit Direct Unit Direct Unit Description U nit Quantity Amount Amount Amount Cost Cod Cost Crack and seat ofexistins DccD (with asDhalt levelinq coursel sq.m. 670 619.10 474.797.OO 619.10 414.797.OO 619.10 4t4,797.OO Bituminous tack coat. emulsilied asohalt sn1 tonnes 2.7872 52.907.54 52.907.54 147,463.9 s2,907.54 747,453.90 Bituminous concrete surface wearinc course sq.m. 640.67 2,146,2M.50'47.463.90 1,108.20 3,7t2,470.@ L27r.5L 4_259.558.50 Refl ectorized thermoplastic pavement marking sq.m. 202.5 3,078.30 623,355.75 3,078.30 523,355.75 3,078.30 523,355.75 TOTAT COST = 3,331,861.15 4,898,085.65 5,445,t75.75 UNIT COST/SQ.M. = 994.59 r,462.72 L,625.43 Sch€mc A+2 Crack and Seat with refledion crack control and AC Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Crack and seat of exidinc DccD (with as9halt leveling course) sq.m. 670 619.10 4r4,797.OO 619.10 414.797.OO 619.10 4t4.797.OO Bituminous tack coat, emulsified asohalt ss-l tonnes 2.747 2 52,907.54 147,463.90 52p07.54 147,463.90 52,907.54 147.463.90 Geotextile Davins fabric with qlass reinforcement so. m. 670 489.35 327.464.50 489.35 327 ,464.50 489.35 327,464.50 Bituminous concrete surface wearinq course sq. m. 640.67 2,746,244.50 1.108.20 3,772,470.OO 1,277.57 4,259,558.50 Reflectorized thermoplastic pavement marking sq.m. 259.47135 3,078.30 798,730.66 3,078.30 798.730.56 3,078.30 798.730.56 TOTAT COST = 3,835,100.55 5,401,326.05 5,948,414.55 UNIT COST/SQ.M. = t,7M.87 7,6L2-34 7,775.65

SchcmeA/[ AC with Dired Unit Direct Unit Direct LJnit Description Unit quantity Amount Amount Amount Cost Cost Cod Sealinc ofcracks and ioints on existinr occD l.m. 62.48 182,816.48 62.44 182.816.48 62.44 182,815.48 fuohah levelinl course sq,m. 670 320.34 274,524.45 320.34 2t4.624.45 320.34 274.624.45 Geotextile pavins fabric with glass reinforcement sq.m. 670 489.35 327.464.50 489.35 327,464.50 489.35 327,854.50 Bituminous tack coat, emulsified asphalt ss-1 IOnnes 2.7472 52.907.54 747.463.90 s2.907.54 147.463.90 52.907.54 747.463.90 Bituminous concrete surhce wearint course sq.m. 3350 &0.67 2,746,244.50 1,108.20 3,7 12,47 0.OO 7,271.57 4,259,558.50 Refledorized thermoplastic pavement marking sq.m. 202.5 3.078.30 623.355.75 3,078.30 623.355.75 3,078.30 623,355.75 TOTA| COST = 3,642,369.54 5,208,595.08 5,755,683.58 UNIT cosT/sQ"M. = \o47.27 1,554.80 1,718.11

AC on PCCP Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Sealinc ofcracks and ioints on existinc pccp l.m. 62.48 182,816.48 62.48 182,816.48 52.48 182,816.48 Bituminoustack coat, emulsified asphalt ss-l tonnes 2.744 52.907.54 7I3.433.77 52,907,54 7r3,433.77 52.907.s4 113,433.77 Bituminous concrete surface wearins courso sq.m. 3350 6/,0.67 2.t46jU.5O 1,108.20 3,7t2,470.OO 1,271.s1 4,259,558.50 Refl ectorized thermoplastic pavement marklnl sq.m. 202.5 3,078.30 623,355.75 3,078.30 623.355.7s 3,078.30 623.355.75 ToTAL COST = 3,065,850.50 4,632,O76.N 5,179,154.50 UNIT COST/SQ,M. = L342.77 7,546.O2 B. AC PAVEMENT length = 300 mts Width 6.7 mts = 50 mm. AC Overlay 80 mm. AC Overlay 100 mm. AC Overlsy Schem€ 81 Reconstruction ofexistinr AC Dav€ment Direct Unit Direct Unit Direct Unit Description U nit Quantity Amount Amount Amount Cod Cost Cost Removal of existinc ac oavement sq.m. 2010 34.43 69,204.30 34.43 59.204.30 34.43 69,204.30 5ub(rade prepardtion ronneS 2010 20.31 40,823.10 20.3L 40,823.10 20.31 40.823.10 Bituminous orime coat, cut-back asohah mc-70 tonnes 57.005.21 t56,975.25 57.OO5.2l L56,975.25 57,005.21 1s6,975.25 Bituminous concrete surface wearinr course sq.m. 2010 uo.67 t,247,746.70 1,108.20 2,227,4A2.OO 7,271.57 2,555,73s.10 Reflectorized thermoolastic Davement markinc sq.m. 727.5 3,078.30 374.O73-45 3.078.30 374.O73.45 3,078.30 374,013.45 TOTAL COST = L,928,762.80 2,868,498.10 3,796,757.20 UNIT COST/SQ.M. = 959.58 !,427.71 L,590.42

Scheme 82 Reconstruction ofAC Pavement on PCCP Direct Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removal of exidins ac Davement sq.m. 2010 34.43 69.204.30 34.43 59,204.30 34.43 69,204.30 Sealinc ofcracks and ioints on existinc DccD l.m. 7754 62.44 109,589.92 62.44 109.589.92 62.48 109,589.92 Bituminous tack coat, emulsified asphalt ss-l ronnes 7.2464 52,907.54 68,060.26 52,907.54 58,060.26 52.907.54 68,060.26 Eituminous concrete surface wearing course sq.m. 2010 640.67 1,247,746.70 1,108.20 2,227,482.OO r,277.57 2,555,735.10 Refl ectorized thermoDlastic Davement markint sq.m. 1.27.5 3,078.30 374.013.45 3.078.30 374.073.45 3,078.30 374.O13.45 TOTAL COST = 1,908,614.63 2,444349.93 3,176,@3.03 uNrT cosT/sQ.M. = 949.55 1,477.O9 1,580.40

AC fabric and course on Direct Unit Direct Unit Direct Unit Description Unit Qua ntity Amount Amount Amount Cost Cost Cost Asphah levelinc course so.m. 20lo 320.34 643,873.3s 320.34 u3,473.35 320.34 643,873.35 Geotextile Davins fabric with class reinforcement so.m. 20to 489.35 983,593.50 489.35 983,593.50 489.35 983,593.50 Bituminous tack coat, emulsified asphah ss-1 tonnes 2.5728 52.907.54 736,120.52 52,907.54 736,120.52 52907.54 136,120.52 Bituminous concrete surface wearins course so.m. 2010 640.67 L.287.746.70 1,108.20 2,227,4A2.OO 7,277.5r 2,555.735.10 Refledorized thermoolastic Davement markinc so.m, 121.5 3,078.30 374,073.45 3,078.30 374.013.45 3,078.30 374,OL3.45 TOTAT COST = 3,425,347.52 4,365,082.82 4,693,335.92 UNIT COST/SQ.M. = 7,704.75 2,777.* 2,334.99 E4 AC on ACP Direct Unit Direct Unit Dired Unit Description U nit Quantity Amount Amount Amount Cost Cost Cost Bituminous tack coat, emulsified asphalt ss-1 tonnes r.2864 52.907.54 68.050.26 s2,907.54 68,060.25 52,907.54 68,050.26 Bituminous concrete surhce wearinr course sq, m, 2010 640.67 7,247,746.70 1,108.20 2,227,4A2.OO 1,277.5r 2.5S5.735.10 Reflectorized thermoplastic pavement markinS so. m. 121.5 3,078.30 37 4.O73.45 3,078.30 374.013.45 3,078.30 374,O73.45 TOTAL COST = r,729,820.4L 2,669,555.71 2,997,8o8.8r UNIT cosT/SQ.M. = [email protected] 7,328.14 1,49t.45 toT 2.2 lto .o{aPlz RoAD

A COI{CRETE PAVEMENT LenSth = 500 mts width 6.7 mts = 50 mm. AC Oreday 80 mm. AC Ove?lay 100 mm. AC otreday AC Overlav with Pavinr Fabric Total Unit Total Unit Totalunit Description Unit quantity Amount Amount Amount Cost Cost Cost sealinr of cracks and ioints on existinc Dccp I.m. 2926 774.54 335,261.08 114.58 335,261.08 114.58 335,261.08 Geotextile paving fabric with glass reinforcement sq.m. 670 655.58 439_238.60 655.58 439,234.& 65s.58 439,234.@ Bltuminous tack coat, emulsified asphalt ss-1 tonnes 2.7872 9.7u.42 180.557.14 u.7u.42 180,567.14 u.7u.42 180,567.14 Bituminous concrete surface wearinr course sq.m. 3350 667.69 2.236.757.50 1,065.85 3.570.597.s0 1,358.08 4,583,068.00 Refl ectorized thermoplastic pavement marking (yellow) sq.m. 30 882.05 26,467.4O 882.06 26,451.W 882.05 25,467.4O Reflectorized thermoplastic pavement marking (white) sq.m. 202.5 874.a6 177.L59.rs 874.86 r77,759.75 874.85 177,159.ls TOTAL COST = 3,395,449.27 4,729,245.27 5,74L,755.77 uNrT cosT/sq.M. = 1,013.57 7,471.73 L,713-96

Att-1 Total Unit Iotal Unit Total Unit Description Unit quantity Amount Amount Amount Cost Cost Cost Crack and seat of exlstinq occD (with a3ohalt levelinr coursel sq.m. 670 737.43 494,346.r0 737.83 49,v6.to 737.A3 494.346.10 Bitumlnous tack coat. emulsified asohalt ss-1 tonnes 2.7472 4,78/..42 180.557.14 il,7w.42 180.567.14 u.7u.42 180.557.14 Bitumlnous concrete surfac€ wearinc course sq.m. 3350 667.69 2,236,761.50 1,065.85 3.570.597.s0 1,358.08 4.583.068.00 Reflectorlzed thermoplastic pavement markina (yellow) 5q.m. 30 882.06 26,46t.W 882.06 25.461.80 882.06 26,467.4O Reflectorized thermoplastlc pavement markinc (white) sq.m. 202.5 874.46 177.159.15 874.85 874.46 r77,7s9.15 TOTAL COST = 3,115,295.69 4,449,131.69 sA6L,602.r9 UNIT cosT/SQ.M. = 929.94 t,328.70 1,630.33

A5 Total Unit Total Unit Total Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost sealinr of cracks and iolnts on existint pccp l.m. 2926 114.58 335,261.08 114.58 335,261.08 114.58 335,251.08 Bituminous tack coat. emulsified asDhalt ss-1 tonnes 2.t44 u.7u.42 138.897.80 4.7u.42 138.897.80 4,7u.42 138,897.80 Bitumlnous concrete surface wearinq course sq.m. 3350 567.69 2,236,76t.50 1.065.85 3.570.597.50 1,368.08 4,583,068.00 Rcflectorlzed thermoplastlc pavement marking (yellow) sq,m. 30 882.05 25,461.80 882.05 26.467.AO 882.05 26,451.80 Refl actorlzed thermoplastlc pavement marking (white) sq,m. 202.s 874.86 177.759.t5 874.86 177.759.75 874.86 177,159.15 TOTAL COST = 2,9t4,541.33 4,24A377.33 5,2@,U7.43 UNIT COST/SQ.M. = 870.01 1,[email protected] 1,s70.40 rrorro{APrz RoAD

B. AC PAVEMEI{T Length = 300 mts Width 6.7 mts = 50 mm, AC Overlay 8{t mm. AC Ove.lay l(x, mm. AC Ovejlay 81 Reconstruction of existinr AC Davement Total Unit Total Unit TotalUnit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removal of existinr ac Davement sq.m. 2010 48.30 97,083.00 48.30 97.083.00 48.30 97.083.00 subcrade preDaration sq,m. 2070 28.97 58,109.10 28.91 58,109.10 28.91 58,109.10 Aqqreeate subbase course. 200mm thick cu,m. 402 554.18 262p40 36 554.18 252,980.36 554.18 262,94O36 crushed affrerate base course, 20omm thick cu.m. 402 973.63 397,399.26 973.63 391,399.26 973.63 391,399.26 Bituminous prime coat, cut-back asphalt mc-70 tonnes 2.7537 66,932.87 184.313.04 65,932.47 184,313.04 66,932.87 78r'..3t3.U Bituminous concrete surface wearint course sq.m. 2010 667.69 1,342,056.90 1,065.85 2,r4L358.5O r,358.08 2,749.8r',O.4O Reflectorized thermoplastic pavement marking (yellow) so.m. 882.06 26,46t.80 882.05 26161.80 882.06 26,461.80 Refleclorized thermoplastic pavement marking (whlte) so.m. tzL.5 874.86 to6,295.49 874.85 106,295.49 474.86 106,295.49 TOTAL COST = 2,468,598.95 3,269,000.55 3,476,442.45 UNIT cosT/sQ.M. = 7,224.27 r,626.37 L,924.60

of Ac Pavem€nt on PCCP TotalUnit Total Unit TotalUnit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removal ofexistinc ac Davement sq.m. 2010 48.30 97,083.00 48.30 97.083.00 48.30 97.083.00 Seallm of cracks and ioints on exlstlnc pccp t.m. 7754 114.58 200,973.32 114.58 200,973.32 114.58 200,973.32 Bituminous tack coat. emulsified asohalt ss-1 tonnes 7.246/. u.7u.42 83,338.68 9,7u.42 83.338.68 9.7u.42 83,338.68 Bitumlnous concrete surfa@ wearim course so.m. 2010 667.69 1.342.056.90 1,065.85 2,142354.5O 1,358.08 2.749.84O.4O Refl€ctorized thermoplastic pavement marking (yellow) so.m. 882.06 2646t.8O 882.06 25467.4O 882.06 26,461.80 Reflectorized thermoplastic pavement marking (white) so.m. lrl ( 874.86 705,295.49 874.86 to6,295.49 474.46 106,295.49 TOTAL COST = 1,855,209.19 2,655,510.79 3,253,993.09 uNrT cosT/sQ.M. = 923.49 7,327.65 1,623.88

Scheme84 Ac on ACP TotalUnit Totel Unit TotalUnit Description Unit Quantity Amount Amount Amount Cost Cost Cost Bituminous tack coat, emulsified asphalt ss-l ronneS 7.2464 4.7u.42 83.338.68 u,7u.42 83,338.68 9,7u.42 83,338.68 Bituminous concrete surface wearint coutse sq.m. 2010 667.69 1,342,056.90 1,055.85 2,142354.5O 1,368.08 2.749.8/,0.40 Reflectorized thermoplastic pavement marklng (yellow) 50.m. 30 882.06 26,467.AO 882.06 26,461.4O 882.06 26,467.4O Reflectorized thermoplastic pavement marking (whlte) so.m. 121.5 874.86 L06,295.49 874.86 106,295.49 874.86 706,29s.49 TOTAI COST = 1,558,152.87 2354,454.47 2,965,936.77 uNrT cosT/sa"M. = 775.20 7,773.36 1,475.59 ltottro{lPtz RoaD C. SHOI.'TD€R Leryth = IOO mts Width = 1.8 mts

Sl Gravel shoulder with ACP Total Unit Description Unh Quantity Amount Cost SubErad€ Preparation so.m. 180 28.91 5,203.80 Amrerate Base couBe (150mm thk.) cu,m. 27 973.63 26,2AA.Ol Prime Coat tonnes 0.28 66,932.47 ra,74r.20 Bltumlnous €oncrete surface wearing course sq.m. 180 667.69 120.18/.20 TOTATCOST= 170,417.27 UNIT COST/SQ,M. = s6.76

GravelShoulder Total Unlt Descriptlon Unit Quantity Amount Cost Subgrade Preparation sq.m. 180 28.91 5,203.80 Atrretate Surface corirse cu.m. 27 994.68 26,856.36 TOTATCOST= 32,060.16 UNll COST/SO"M. = 178.11 rOT 3.2 IUTUAN-CAGAYAN DE ORO-ILIGAN CITY ROAo (Mlsamls Orl.ntrll

A COt{Ci3Tl PAVEMENT Leneth = 500 mts Width 6.7 t; = 5{l mm. AC Overlay m mm. AC Orerlay 10O mm. AC olrerlay rlockinc and AC Overlav Direct Unit Direct Unit Direct Unit Description U nit Qu.ntity Amount Amount Amount Cost Cost Cost rxlstlnc pavement PCC Pavement so.m. 670 2@.?9 174,461.30 [email protected] 774.46t.30 2ffi.39 774.461.30 subirtda Dl!paration sq.m. 670 19.O0 72,730.OO 19.O0 12,730.00 19.00 72,730.0O PCC P.v.m.nt 230 mm thk sq.m. 674 1,182.13 792.027.tO 1,182.13 792.027.L0 1,182.13 792.027.\O l|ck cort tonnes 2,L44 s3,431.81 114.557.80 53431.81 114.557.80 53.431.81 114.557.80 Bltumlnout concrete surface sq.m. 3350 559.02 1,872.777.OO 887.90 2,974,465.00 1,108.20 3.772.470.OO s llnl of lolnts Lm. 2926 180,973.10 61.85 180,973.10 61.85 180,973.10 trtlc raflectorized pavement marking sq.m. 202.5 I e1? t1 772.!75.O3 3,813.2I 772.L75.03 3,813.21 772,775.O3 TOTAT COST = 3,919,641.33 5,021,389.33 s,759,394.33 UNIT cosT/SQ.M. = Lr7O.M 7,494.92 1,779.22

Direct Unit Direct Unit Amount Amount Cost Cost [email protected] 872,306.50 2&.39 872,305.50 19.00 63,650.00 19.00 53.550.00 7,742.13 3,960,135.50 7,742.r3 3,960,135.50 51.85 L39,224.35 61.85 139,224.35 3,4t3.27 772,775.O3 3,a13.2L 772,L75.O3 TOTAL COST = 5,4O7,497.38 5,807,491.38 5,807,491.38 uNrr cosT/sQ.M. = 1,733.58 1,733.s8 1,733.58

Direct Unit Direct Unit Amount Amount Cost Cost 61.85 180.973.10 61.85 180,973.10 489.35 327.a6/..SO 489.3S 327.864.50 53,431.81 744,925.14 53,431.81 t44,925.74 887.90 2,974,465.00 1,108.20 3,772,470.OO 3,813.21 772,175.03 3,813.21 772,775.O3 TOTAL COST = 3,302,654.77 4,404.,402.77 s,r42,407.77 UNrT COST/Sa.M. = 985.87 t,374.75 1,535.05 50 mm. AC Oveday 80 mm. AC Olrerlay 100 mm. AC Oveday SchemeA+1 Crack and Seat and AC TotalUnit Total Unit Total Unit Description Unit quantity Amount Amount Amount Cost Cost Cost crack and seat with asphalt levellim course so.m. 670 47t.572.50 703.75 477,5r2.50 Tack coat ronnes 2.7472 62,677.O! 774,676.U 62,67 7.Ol 174.676.& Bituminous concrete surface sq.m. 3350 2,722,6ffi.50 1.011.50 3,388,525.00 ThermoDlastic refledorized oavement markine (vellow) sq.m. 180 866.05 1ss,889.00 866.05 15s.889.00 fhermoplastic reflectorized pavement marking (white) sq.m. 202.5 858.85 773,9L7.13 858.85 773.977.73 ToTAL COST = 3,O98,655.76 4,3U,520.26 uNtT cosT/sQ.M. = 924.97 7,302.U

Scheme Ai!-2 crack and seat with reflection crack control and Ac Direct Unit Direct Unit Direct Unit Description Unit quantity Amount Amount Amount Cost Cost Cost crack and seat with asphalt levellinc course sq.m. 670 401.10 [email protected] 401.10 264,737.00 401.10 268,737.OO Tack coat tonnes 2.7472 53.431.81 148.925.14 53,431.81 744,925.!4 53,431.81 148.92s.74 Geotextile Davinc fabric with reinforcement sq.m. 610 489.35 321,864.50 489.35 327.A&.50 489.35 327.8s.5O Bituminous concrete surface sq.m. 3350 559.02 r.472.777.OO 887.90 2,974,465.00 1,108.20 3,772,470.OO ThermoDlastic reflectorized Davement marking sq.m. 226.4037 3.8L3.27 863,322.56 3,813.21 863,322.56 3,4t3.27 863,322.56 TOTAL COST = 3,481,566.21 4,s43374.27 5,327,3r9.27 UNIT COST/SQ.M. = I,O39.27 1,368.15 1,588.45

SchemeM AC with Fabric land Course TotalUnit Total Unit TotalUnit Description Unit Quantity Amount Amount Amount Cost Cost Cost Sealins of ioints t.m. 2926 110.09 322,t23.U 110.09 322.L23.34 Geotextile Davinc fabric with reinforcement sq.m. 670 656.76 440.O29.20 656.76 MO,029.20 Tack coat tonnes 2.7472 L74.676.4 62,677.O1 174,676.U Bituminous concrete su rface sq.m. 3350 633.63 2,722,660.50 1.011.50 3.388.525.00 Thermoplastic reflectorized oavement markinc (vellow) sq.m. 180 155,889.00 855.05 155,889.00 Thermoolastic reflectorized Davement markinc (white) sq.m. 202.5 858.8s 773,977.73 858.85 173,977 .r3 TOTAL COST = 3,389,295.80 4,6s5,160.30 UNIT cosT/sQ.M. = I,O7t.73 1,389.60

SchemeAs AC on PCCP TotalUnit Total Unit TotalUnit Description Unit Quantity Amount Amount Amount Cost Cost Cost sealinc of ioints and cracks t.m. 2926 110.09 322.r23.U 110.09 322.723.34 Tack coat tonnes 2.tM 62.67 |.07 134.356.65 62.677.OL 134.366.65 Bituminous concrete surface sq.m. 3350 533.53 2.722,[email protected] 1,011.50 3.388.525.00 Ihermoplastic reflectorized oavement markinc (vellow) sq.m. 180 866.05 155,889.00 866.05 1ss.889.00 Thermoolastic reflectorized Davement markinc (white) sq.m. 202.5 858.85 773.977.73 858.85 173.977.73 TOTAL COST = 2,908,956.61 4,L74,421.7t uNrT cosT/sq.M. = 868.35 7,246.22 I B. AC PAVEMENT Length = 300 mts width 6.7 mts = 5o mm. Ac overlay 80 mm, AC Overlay 1@ mm. AC Overlay rn of existinq AC TotalUnit Total Unit TotalUnit Description Unit quantity Amount Amount Amount Cost Cost Cost Removal of existinc asDhalt Davement sq,m. 2010 46.O5 92.550.50 46.05 92.560.50 Subgrade preparation ronnes 2010 1''

Scheme 82 Reconstruction of AC Pavement on PCCP (on Total Unlt lotal Unit Total Unit Description U nit quantity Amount Amount Amount Cost Cost Cost Removal of existinc asDhalt pavement sq.m. 2010 46.05 92,560.50 45.05 92.550.50 S€alinc of ioints and cracks t.m. 7754 110.09 193,097.86 110.09 193.097.86 fack coat tonnes r.286r'. 62,67r.O7 80,519.99 62.577.01 80.619.99 Bituminous concrete surface course sq.m. 2010 633.53 L,273,596.30 1,011.50 2,033,115.00 ThermoDlastic reflectorized oavement markins (vellow) sq.m. 106 E66.05 91,801.30 865.05 91.801.30 ThermoDlastic reflectorized Davement markins (white) sq.m. 121.5 Es8.85 104.350.28 858.85 104.350.28 ToTAL COST = L,836,026.22 2,595,544.92 UNIT cosT/Sq.M, = 913.45 r,297.32 Scheme 83 Ac on Total Unlt Total Unit TotalUnit Description U nit Quantity Amount Amount Amount Cost Cost Cost Tack coat tonnes L.286/. 62,677.07 80.619.99 62.677.Or 80.619.99 Bituminous concrete surface so.m. 2010 633.63 1,273,596.30 1,011.50 2.033.115.00 Thermoplestic reflectorized pavement marking (yellow) sq.m. 106 t56.05 91,801.30 865.05 91,801.30 Th"rmoolastic reflectorized oavement markins (white) sq.m. t27.5 858.85 104,350.28 858.85 104,350.28 TOTAL COST = 1,550,367.85 2,309,885.s6 UNIT COST/SQ.M, = 77r33 L,r49.20 C SHOUIDENS Length = 100 mts Width = 2.5 mts

Gravel ShouHer with ACP Total Unit Total Unit TotalUnit Description U nit Quantity Amount Amount Amount Cost Cost Cost subgrade Preparation so.m. 250 27.51 6,877.50 Acrrecate Base Course (l50mm thk.) cu,m. 37.s 954.r4 35.780.25 Prime Coat tonnes 0.39 68,291.43 26,633.6 Bituminous concrete surface wearinl course so.m. 250 633.53 158.407.50 TOTAT COST = 227,694.91 UNIT cosT/sQ.M. = 910.80

s2 Total Unit TotalUnit Total Unit Description Unit quantity Amount Amount Amount Cost Cost Cost Bituminous tack coat. emulsified asDhah ss-1 ronneS 0.18 66,159.17 11,908.55 Bituminous concrete surface wearint course sq,m. 250 533.63 158,407.50 TOTAL COST = 170,316.1s UNIT cOsT/SQ.M. = 681.26 tOT 3.2 BUTUAN-CAGAYAN DE ORO-lLlGAN CITY ROAD lMlsamls Orlentall

A. CONCRETE PAVEME'{T Length = 500 mts Width 6.7 mts = 50 mm. AC Ovcrlay 80 mm. AC Orarlay crack and Seat and AC Overlav Total Unit Total Unit Description U nit Qua ntity Amount Amount Cost Cost crack and seat with asohalt levellinc course sq-m. 670 703.75 471.572.50 703.75 47t,512.50 Tack coat ronneS 2.7472 62,67t.O1 774.676.s 52,677.O1 774.676.& Bituminous concrete su rface 5q,m, 3350 533.53 2,722,[email protected] 1,011.50 3,388,525.00 ThermoDlastic reflectorized oavement markinc (vellow) sq.m. 180 856.05 155,889.00 866.05 155,889.00 ThermoDlastic reflectorized oavement markinc (white) sq.m. 202.5 858.85 773.917.73 858.85 t73,9L7.t3 TOTAL COST = 3,098,65s.76 4,36/,52O.26 UNIT CoST/SQ.M. = 924.97 1"302.U

Fabric Total Unit Tota I Unit Description Unit Qua ntity Amount Amount Cost Cost sealinc of ioints Lm. 2926 110.09 322,723.34 110.09 322.123.34 Geotextile paving fabric with reinforcement sq.m. 670 656.76 440,O29.20 656.76 440,O29.20 Tack coat tonnes 2.7472 62,67r.O7 774,676.9 62,67L.Or 774,676.64 Bituminous concrete surface sq.m. 3350 633.63 2,L22,6ffi.50 1,011.50 3,388,525.00 ThermoDlastic reflectorized Davement markinr (vellow) sq.m. 180 866.05 155.889.00 865.05 155,889,00 fhermoplastic reflectorized pavement marking (white) sq.m. 202.5 858.8s 773,917.13 858.85 773,9r7.13 ToTAL COST = 3,389,295.80 4,655,160.30 UNII coST/SQ.M. = 1,Olt.73 1,389.60

Total Unit Amount Cost 110.09 322,123,U 62,6?r.07 134,366,65 1,011,50 3,388,525.00 866.0s 155,889.0O 858.85 t73.9L7.13 ToTAL COST = 2,908,956,61 4,L74,A2t,rl UNIT CosT/sQ.M. = 868.35 1,246,22 EUTUAN{AGAYAN DE ORGIUGAN CITY ROAD B. AC PAVEME'{T Length = 300 mts Width 6.7 mts = 50 mm. AC Orrerlay 80 mm. AC Orerlay 81 Reconstruction of existinc AC oavement Total Unit TotalUnit Description Unlt quantity Amount Amount Cost Cost Removal of existinr asphalt Davement sq.m. 20!0 46.05 94550.50 46.05 92.560.50 Subgrade preparation ronneS 20'0 27.57 55,295.10 55,295.10 Crushed Accreatate Base Course, 20Omm thick cu.m. 402 &t0.63 333,913.26 830.63 333,9L3.26 Prime coat tonnes 2.7537 9,77234 ]74363.70 s,77234 t78,363.70 Tack Coat ronnes 2.7537 62,67L.01 772,s77.76 62,677.0L t72,577.16 Bituminous concrete surface sq.m. 2010 633.63 7,273,596.30 1,011.50 2,033,115.00 Thermoolastic reflectorized Davement markinc (vellow) sq.m. 106 865.05 91,801.30 866.05 91,801.30 Thermoolastic reflectorized Davement markinc (white) sq.m. 72t.5 858.85 104.350.28 858.85 104.350.28 TOTAL COST = 2,302,457.@ 3,061,976.30 uNrT cosT/sQ.M. = 1,145.50

AC Pavement on PCCP TotalUnit TotalUnit Description Unlt Quantity Amount Amount Cost Cost Removal of existlnB asphalt pavement so,m. 2010 46.05 92,560.50 46.05 92,550.50 Sealinq of ioints and cracks l.m. 775/. 110.09 193,097.86 110.09 193,097.86 Tack coat tonnes t.2a6r'. 62,67r.O7 80,619.99 62,677.0L 80,619.99 Bitumlnous concrete surface course 5q,m. 20lo 633.63 7,273,596.30 1,O11.50 2,033.11s.O0 ThermoDlastic reflectorized Davement markinc (vellow) 50,m. 106 866.05 91,801.30 866.05 91,801.30 ThermoDlastic refl ectorized Davement markim (whitel 5q,m. 127.5 858.85 [email protected] 858.85 104,350.28 TOTAL COST = 7,436,026.22 2,595,544.92 UNIT cosT/SQ,M. = 913.45 L,29t.32

B3 ACP TotalUnit Total Untt Descrlption Unit quantity Amount Amount Cod Cost Tack coat ronnes L2a64 62,677.O1 80,619.99 62,671.O7 80.619.99 Bituminous concrete surface so.m. 2010 633.63 7,273,596.30 1,011,50 2.033.115.00 Thermoplastic refl€ctorlzed prvement marking (yellow) sq.m. 106 866.05 91,801.30 866.0s 91,801.30 Thermoolastic refl€clorlzed oavement markinr (whlte) sq.m, L27.5 858.85 104,350.28 858.8s 104,350.28 TOTAI- CosT = 1,550,367.86 2,309,885.s6 uNrT cosT/sQ.M. = 777.33 7,149.20 BUruAN.CAGAYAN DE ORo.ITIGAN CITY ROAD

C. SHOT'II'ER LenSth = 100 mts Width = 2.5 mts

Sdrfiie Sl Gravel Shoulder with ACP TotalUnit Description Unit quantity Amount Cost SubSrade Preparatlon sq.m. 2SO 27.51 6,877.5O Arcreqate Base course (15omm thk.) cu.m. 37.5 830.63 31,1118.63 Prime Coat tonnes 0.39 9,77234 25,261.23 Bituminous concrete surface wearinr course sq.m. 250 633.63 158.407.s0 TOTAL COST = 221,594.85 UNIT COST/Sq.M. c 886.78

ACP Ov€rlaid with ACP TotalUnit Description Unit quantity Amount Cost Bituminous tack coat. emulsified asohalt ss-l tonnes 0.18 62"671.Or 11.280.78 Bituminous concrete surface wearinq course sq.m. 250 633.63 158.407.50 TOTAL COST = 159,588.28 UNfT COST/SQ.M. = 678.75 tOT 3.4 EUKIDI{ONTOTABATO ROAD

A" CO CRETE PAVEMENT 500 mts 6.1 mts 80 mm. AC Ovarlay 100 mm. AC Overhy Scl|emc A1 Concrete Dired Unit Direc't Unit Amount Amount Cost Cost 260.39 774,467.30 260.39 t7 4,467.30 19.72 12.810.40 72,810.40 778,908.s0 1,162.55 778,908.50 57 ,707.77 722,426.O7 s7.10t.77 r22,426.O7 1,340.35 4,490,206.00 7,673.77 5,507,129.50 61.85 180,973.10 b1.65 180,973.10 ? Q11 rl 772.775.O3 3,813.21 772.175.03 TOTAL COST = 4,45t,750.49 6,531,960.39 7,648,883.89 UNIT COST/SQ.M. = L4Sr.27 1,949.84 2,243.25

Direct Unit Dired Unit Amount Amount Cost Cost 250.39 872,306.50 260.39 872,306.50 79.72 64,052.@ 19.12 64,052.00 1,162.55 3.894.542.s0 r,152.55 3,894542.50 51.85 r39,224.35 61.85 139,224,35 3.813.21 772,775.O3 3,813.21 772.175.O3 TOTAL COST = s,742,[email protected] s,742,300.38 5,742,300.38 UNIT cosT/SQ.M. = t,714.72 7,714.t2 7,774.t2

Direct Unit Direct Unh Amount Amount Cost Cost 61.85 180,973.10 61.85 180.973.10 489.35 327.864.50 489.35 327.&4.50 57.101.71 159,153.89 57.701.77 159.153.89 1,340.35 4.490.206.00 1.673.77 5,607,129,50 3,813.21 3,813.21 772.r75.03 TOTAT COST = 4,260,763.O7 5,930,372.51 7,U7,296.01 uNrT cosT/sQ.M. = r,271.69 7,770.26 2,to3.67 Direct Unit Direct Unit Amount Amount Co5t Cod 7L9.66 482,172.20 719.66 482,L72.20 57.701.71 159.153.89 57.tOL.7l 159,153.89 t,340.36 4,490,206.OO 1,673.77 5,601,t29.50 3,813.21 772.175.O3 3,813.21 772.775.O3 TOTAT COST = 4,233,497.67 5,903,707.t7 7,O20,630.67 uNrT cosT/sQ.M. = 7,263.73 7,762.30 2,O95.71

and with reflection crack controland AC Direct Unit Dired Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Crack and seat of exiding pccp (with asphalt l.vrllng coq.se) so.m. 670 719.66 442.17 2.20 719.66 4a2.!12.20 7 79.66 4A2.172.20 Bitumlnous tack coat, emulslfled asphalt ss-1 ronnes 2,7872 57.101.71 159,153.89 51,707.77 159,153.89 57,70L.77 159,153.89 Geotextlle pavlng fabric with glass reinforcement sq.m. 670 489.35 327.4&.50 489.35 327,aU.50 4E9.35 327.864.50 Bitumlnous conct€te surface wearinr course so.m. 3350 8r'.t.79 2,819,996.s0 1,340.35 4.490.206.00 7.673.77 5,607,129.50 Reflectorlzed th€rmoplastic pavem€nt ma*ing sq.m. 340.9249s 3,813.21 1,300,018.43 3,8L3.21 1.3m.018.43 3,813.21 1,300,018.43 TOTAL COST = 5,089,205.51 5,759,415.01 7,a76,338.57 UNIT CoST/SQ.M. = t,5!9.77 2,077 .7 4 2,351.15

AC and C.ourse Direct Unit Dlrect Unit Direct Unft Des6rlption U nit Quantity Amount Amount Amount Cost Cost Cost Sealinr ofcracks and ioints on existinr DccD Lm. 2926 61.85 180,973.10 61.85 180.973.10 51.85 180.973.10 Asphalt l6vellng course so.m. 670 84L.79 563,999.30 841.79 553,999.30 841.79 563,999.30 Geot€xtllc pavlnS fabric with glass relnforcement sq.m. 670 489.35 327.a&-50 489.35 327.84.50 489.35 327,464.50 Bitumlnous tack coat, emulsllled asphah ss-1 tonnes 2.7872 57,tO7.7l 159,153.89 57.701.71 159,153.89 57.L07.7L 159,153.89 Bitumlnous concEte surface wearing cours€ sq.m. 3350 847.79 2,819,996.50 1,340.35 4,49o,205.OO t.673.77 5,607,129.50 Reflectoriz€d th€rmoplastic Davcm€nt markln! sq.m. 202.5 3,873.2r 772,L75.03 3,473.2r 772.775.O3 3.813.21 772,775.O3 TOTAL CosT = 4,824,L62.37 6,494,371.41 7,61X,295.31 uNtT coST/SQ.M. = 7,44O.O5 1,938.62 2,2? 2.O3

Dlred Unh Dir€ct Unit Amount Amount Cost Cost 61.85 180,973.10 61.85 180,973.10 57,tOL.7L 722,426.O7 57,707.77 722,426.O7 1,340.36 4,490,206.OO 7.673.77 5,607,129.50 3,813,21 772.775.O3 3,813.21 772,175.O3 TOTAL COST = 3,895,s70.69 5,565,780.19 6,682,703.69 UNIT COST/Sa.M. = 7,762.46 7,667.43 1,994.84 B. AC PAVEMENT Length = 30O mts Width 6.7 mts = 50 mm. AC Overlay 80 mm. AC Oveday lm mm. AC Overlay Sdreme 81 Reconstruction of existins AC Davement Direct LJnit Direct Unit Dired Unit Description Unit quantity Amount Amount Amount Cost Cost Cost Removal ofexistine ac Davement sq.m. 20LA 34.43 69,204.30 34.43 59.204.30 34.43 59.204.30 Subgrade prepardtion tonnes 2010 19.72 38,431.20 19.12 38,431.20 79.72 38,431.20 Bituminous Drime coat. cut-back asDhalt mc-70 tonnes 2.7537 s7,005.21 156975.25 57.OO5.2r 156,975.25 57.005.21 156,975.25 Bituminous concrete surface wearinq course sq.m. 2010 841.79 1.591.997.90 1,340.36 2,594,t23.60 7.673.77 3.364.277.70 Reflectorized thermoDlastic oavement markine sq.m. 721.5 3,473.27 463,305.02 3,813.21 453,305.02 3,813.21 463,305.O2 TOTAL COST = 2,479,913.66 3,422,039.36 4,092,795.46 UNIT COST/SQ.M. = t,203.94 L;702.57 2,O35.92

82 Reconstruction ofAC Pavement on PCCP Direct Unit Direct Unit Dired Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removal of existinc ac oavement sq.m. 2010 34.43 69,204.30 34.43 59,204.30 34.43 59,204.30 Sealing ofcracks and ioints on exiding pccp l.m. 7754 61.85 108,484.90 61.85 108,484.90 61.85 108,484.90 Bituminous tack coat. emulsified asohatt ss-1 ronnes 7.2864 57.101.71 73.455.64 57.tO7.7l 73,455.64 57,rOL77 73,455.64 Bituminous concrete surface wearint course sq.m. 2010 8/-7.79 1.591.997.90 1,340.36 2.694.723.60 7,573.77 3,364,277.70 Refl ectorized thermoplastic oav€ment markinc sq.m. 121.5 3,813.21 463,305.02 3,813.21 463.305.02 3,813.21 463,305.02 TOTAT COST = 2,406,447.75 3,408,573.45 4,O74,727.5s UNIT cosT/sQ"M. = 7,797.24 1,695.81 2,O29.22

cou rse on AC Direct Unit Direct Unit Dired Unit Description unit qua ntity Amount Amount Amount Cost Cost Cost AsDhah levelinr course 50,m. 2070 8/.l.79 1.691.997.90 44t.79 1,69t,997.90 u7.79 1.691.997.90 Geotextile Davim fabric with dass reinforcement sq.m. 2010 489.35 983,s93.50 489.35 983,593.50 489.35 983,593.50 Bituminous tack coat. emulsitied asDhaft ss-l tonnes 2.5728 57.101.71 146.911.28 57.101.71 146.911.28 37.707.11 745,97r.24 Bituminous concrete surface wearint course sq.m. 2010 8r'l.79 1,691,997.90 1,340.36 2,694,723.60 L.673.77 3.364.277.70 Reflectorized thermoplastic pavement marking so. m. 72L.5 3,473.27 463,305.O2 3,873.27 463,305.02 3,813.21 463.305.02 TOTAI COST = 4,977,805.59 5,979,931.29 6,650,085.39 UNIT cosT/sQ.M. = 2,4'16.52 2,975.09 3,308.50

Direct Unit Direct Unit Amount Amount Cod Cost 57.r0r.77 73,455.64 57 .tO7.7 L 73,455.54 1,340.36 2,694,L23.60 1,673.77 3.364.277.70 3.813.21 463,305.02 3,813.21 463,305.02 TOTAI- COST = 2,228,75a.s5 3,230,444.25 3,901,038.35 UNIT cosT/sQ.M. = 1,108.84 7,607.4t 1,940.82 IOT 3.4 BUI(IDNON.COTABATO ROAD

A. CONCRETE PAVEMENT Length = 500 mts Width = 6.7 mts 50 mm. AC Overlay lfi! mm. AC Oveday Sdreme A3 Ac overlav with Pavinc Fabric Total Unit TotalUnit Description Unit Quantity Amount Amount Cost Cost Sealinc of cracks and ioints on existinc pccD t.m. 2926 113.15 331,075.90 rl5.l5 331.075.90 Geotextile Davine fabric with qlass reinforcement 50.m. 670 654.@ 438,582.00 59t.60 438.582.00 Bituminous tack coat. emulsified asDhalt ss-1 tonnes 2.7472 63,918.19 fi4.152.74 63.918.19 l7A,!52.7a Bituminous concrete surface wearing course sq.m. 3350 677.s3 2,269,72s.50 7347.57 4.648.359.s0 Reflectorized thermoplastic pavement marking {yellow) sq.m. -to 877.00 74,032.OO 477.00 14,032.00 Refl ectorized thermoDlastic Davement markim (white) sq.m. 202.5 869.80 776,734.50 869.80 776.734.sO TOTAI- COST = 3,407,703.68 5,786,337.58 UNIT cosT/sQ.M. = 1,077.22 1,727.26

1 Seat and AC Total Unit Total Unit Description Unit Quantity Amount Amount Cost Cost Crack and seat ofexistinc DccD (with asphalt levelinq course) sq.m. 670 747.46 497.04.6.20 741.86 497,046.20 Bituminous tack coat, emulsified asohalt ss-1 tonnes 2.7472 53,918.19 174.752.74 53.918.19 774.752.74 Bituminous concrete surface wearinc course 5q. m. 3350 677.53 2.269.725.50 L3a7.57 4.648.359.50 Refl ectorized thermoplastic pavement marking (yellow) sq.m. 16 a77.OO 14.032.00 877.00 14,032.00 Reflectorized thermoolastic oavement markine (white) 50.m. 202.5 869.80 176.134.50 869.80 176,134.50 TOTAL COST = 3,135,090.98 s,573,724.94 UNIT CoST/SQ.M. = 935.85 1,645.89 on PCCP Total Unit Total Unit Description Unit Quantity Amount Amount Cost Cost Sealinc of cracks and ioints on existins pccD l.m. 2926 113.15 331,076.90 -t15.-t) 331.076.90 Bituminous tack coat, emulsified asDhalt ss-1 tonne5 2.744 63,918.19 737,040.60 63,918.19 t37.0/,O.& Bifuminous concrete surface wearing course sq.m. 3350 677.53 2,269,72s.50 7347.57 4,648,359.50 Reflectorized thermoolastic oavement markinq lvellowl 5q.m. 16 877.OO 14.032.00 a77.OO 14.032.00 Refl ectorized thermoolastic Davement markinc (whitel sq.m. 202.5 859.80 776,t34.50 869.80 176,134.50 TOTAL COST = 2,928,009.50 5,306,643.50 UNIT COST/SQ.M. = 874.03 t,58/.07 BUKIDNON{OTABATO ROAD

B. AC PAVEMET{T

100 mm. AC otrerlay

Total Unit Amount Cost 53.918.19 82.224.36 L347.57 2,749,O15.70 477.OO 74,O32.OO 869.80 105.680.70 TOTAL COST = 7,563,772.36 2,990,952.76 UNIT COST/SQ"M. = 77a.OO 1,488.04

C SHOUTDER Length = 100 mts Width = 3 mts

Sdreme Sl GravelShoulder with Gravel Total Unit Total Unit Descrlptlon Unit Qua ntity Amount Amount Cost Cost Subrrade Preoardtion sq.m. 300 24.78 8,634.00 Arcrecate Surface Course cu.m. 45 1,779.27 53.067.1s TOTAL CosT = 51,701.r5 UNIT COST/SQ.M. = 205.67 tOT 3.1 DIPIOLOGOROCIUIErA ROAD

A CONCREIE PAVEMENT Length = 500 mts Width 6.7 mts = 50 mm. AC Orerlay 80 mm. AC Ov€rlay 100 mm. AC Overlrt Sdrrme Al Concrete re-blockinc and AC Overlav Oirect Unit Direct U n it Direct Unit Description Un it quantity Amount Amount Amount Cost Ldst Cost Removal of existins Dcc oavement sq,m. 674 260.39 714,46L.30 260.39 77 4.46L.30 260.39 774,461.30 Subcrade oreparation sq,m. 670 25.31 t6.957.70 25.31 76,957.70 25.31 t6.957.70 PCC oavement (olainl. 230mm thick sq,m. 670 1,023.04 58s.436.80 7,O23.M 685.436.80 1,023.04 685,436.80 Bituminous tack coat, emulsified asDhah ss-1 tonnes 2.144 55,895.89 119.840.79 55,895.89 t79.8r',0.79 ss.895.89 119.840.79 Bituminous concrete su rface wearint course sq.m. 544.80 1.825,080.00 865.15 2,898,252.50 t,079.76 3,617,196.00 Sealinr ofcracks and iolnts on existinr occD l.m. 2926 b-t-65 180,973.10 b1.65 180.973.10 61.85 180,973.10 Reflectorized thermoplastic pavement marking sQ.m, 3.813.21 772.775.O3 3,813.21 772,175.O3 3.813.21 772.t75.O3 TOTAT COST = 3,77 4,924.7 7 4,E/.4,@7.21 5,567,0d,O.71 UNIT COST/SQ"M. = 1,t26.84 t,447.79 1,661.80

Dlrect Unit Direct Unit Dlred Unit Description Unit quantity Amount Amount Amount Cost Cost Cost Removalof existim Dcc Davement 5q,m. 3350 260.39 872,305.50 260.39 872,306.s0 260.39 872,305.50 Subgrade preparation sq.m. 3350 25.37 84.788.50 25.31 84.788.50 25.3L 84.788.50 PCC pavement (plain), 230mm thick so.m. 3350 7,O23.O4 3,427,784.00 1.023.04 3,427,r84.OO L,O23.O4 3,427.L8/,.OO Sealinc ofcracks and ioints on existinq DccD l.m. 2257 61.85 r39,224.35 51.85 L39.224.35 61.85 739,224.35 Refl ectorized thermoplastic pavement marking sq.m. 202.5 3.813.21 772.775-O3 3,813.2L 772,775.03 3,8t3.27 772,r75.O3 TOTAT COST = 5,295,67a38 s,295,678.38 s,295,678.38 UNIT COST/SQ.M. = 1,580.40 1,5aO.aO 1,54O-80

Direct Unit Direct Unit Amount Amount Cost Cost 61.85 180,973.10 61.85 180,973.10 489.35 327.a64.50 489.35 327,46/..50 55,895.89 155,793.02 55,895.89 155.793.02 865.15 2,898,252.50 7,O79-76 3,617,196.00 3.4L3.27 77 2.t75.O3 3,813.21 772,r75.O3 ToTAL COST = 3,261,885.65 4,335,058.15 5,054,001.65 UNrT cosT/SQ,M. = 973.70 7,294.O5 1,508.55 A:l-l Crack and Seat and AC Direct Unit Direct Unit Direct Unit Description Unit quantity Amount Amount Amount Cost Cost Cost Crack and seat ofexistine DccD (with asohalt levelin. coursel sq.m. 670 571.16 3A2,677 -20 571.16 342,677.20 342.677.20 Bituminoustack coat. emulsified asDhah ss-1 tonneS 2.7472 55,895.89 155.793.02 55,895.89 155.793.02 55,895.89 155,793.02 Bituminous concrete surface wearint course sq.m. 3350 5/t4.80 1,825,080.00 865.15 2,498,252.50 I,O79.76 3.617.196.00 Refl ectorized thermoplastic pavement ma rking sq.m. 202.5 3.473.2r 772,775.O3 3,813.21 772,77 5.O3 3,813.21 772,175.O3 TOTAT COST = 3,735,725.2s 4,204,497.75 4,927,44L.25 uNlT cosT/sQ.M. = 936.04 7,256.39 \47r.OO Sch.me A:!-2 Crack and Seat with reflection crack control and AC Direct Unit Direct Unit Amount Amount Cod Cost 571.16 342.677.20 s71.16 342"677.2O 55,895.89 155,793.02 55,89s.89 155,793.02 489.35 327,864.50 489.35 327.464.50 865.15 2,894,252.50 7,079.76 3,617,196.00 3,813.21 841,361.91 3,813.21 841,361.91 TOTAL COST = 3,532,776.63 4,605,949. 13 5,324,892.63 UNrT cosT/SQ,M. = 1,054.s6 1,37 4.97 1,589.52

Direct Unit Direct Unit Amount Amount Cost Cost 51.85 180,973.10 61.85 180.973.10 272.40 182,508.00 272.40 182,508.00 489.35 327.464.50 489.35 327,864.50 55,895.89 155,793.02 55,895.89 15s,793.02 865.15 2,498,252.50 7.O79.76 3,517,196.00 3,813.21 77 2,t75.O3 3,473.21 772,L75.O3 TOTAL COST = 3,444,393.65 4,517,566.1s 5,236,509.65 UNIT COST/SQ.M. = 1,028.18 1,348.53 7,s63.t4

Direct Unit Direct Unit Amount Amount Cost Cost 61.85 180.973.10 61.85 180,973.10 s5895.89 119,840.79 55,895.89 779,8,.O.79 865.1s 2,494,252.50 7,O79.76 3.617.196.00 3,813.21 772,175.O3 3,813.21 772.775.O3 TOTAL COST = 2,898,068.91 3,97 r,247.4L 4590,184.91 UNrT COST/SQ.M. = 865.10 1,185.4s 1,400.06 B. AC PAVEMET{T

80 mm. AC Overlay 10O mm. AC Overl.y

Direct Unit Direct Unit Amount Amount Cod Cost 34.43 69.204.30 34.43 69,204.30 25.31 50,873.10 50,873.10 57.005.21 156,975.25 57,@5.21 156,975.25 865.15 1.738.951.50 7.O79.75 2,r70,377.@ 3,813.21 463,305.02 3,813.21 463,305.02 TOTAI- COST = 1,835,405.66 2,479,309.L6 2,gLO,675.26 UN|T COST/SQ.M. = 913.14 1,233.49 1,448.10

82 Reconstruqtion ofAC Pavement on PCCP Direct Unit Direct Unit Dired Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Removal ofexistinr ac Davement 50,m. 2010 34.43 69,204.30 34.43 69,20d.30 34.43 69,204.30 Sealinc ofcracks and ioints on existinc DccD l.m. 1754 61.85 108.484.90 61.85 108,484.90 51.85 108,484.90 Bituminous tack coat, emulsified asphalt ss-l tonnes L2464 55,895.89 7 |.904.47 55,895.89 77,904.47 55,895.89 77.904.47 Bituminous concrete surface wearinr course sq.m. 2070 544.80 1,095,048.00 865.15 1,738.951.50 1079.76 2.L70.377.60 Reflectorized thermoDladic oavement markine sq.m. 3,813.21 463,305.02 3,813.21 463,305.02 3,413.27 453.305.02 TOTAL COST = 7,807,946.69 2,451,850.19 2,483,276.29 uNrT cosr/sQ.M. = 899.48 7,279.83 1,434.44

Direct Unit Dired Unit Amount Amount Cost Cost 27 2.40 s47.524.00 272.40 s47,524.@ 489.35 983,593.50 489.35 983.593.50 55.895.89 143,808.95 55,895.89 143.808.95 865.15 1,738,951.s0 |.o79.76 2.L70.377.60 3.813.21 453,305.02 3,813.21 453,305.02 TOTAI- COST = 3,233,279.46 3,a77,rA2.96 4,308,549.06 uNrT cosT/sQ.M. = 1,508.60 \924.95 2,743.56 84 on ACP Oirect Unit Direct Unit Direct Unit Description Unit Quantity Amount Amount Amount Cost Cost Cost Bituminous tack coat. emulsified asDhah ss-1 tonnes L2A6r'. 55,895.89 7L.904.47 55,895.89 77,904.47 55,895.89 71.904.47 Bituminous concrete surface wearins course so.m. 2010 544.80 1,095,048.00 865.15 1.738.951.50 7.079.76 2.t70.377.60 Refledorized thermoDlastic Davement markinc so.m. 721.5 I tle tl 463,305.02 3,813.21 463,305.02 3,813.21 453,305.O2 TOTA| COST = 1,630,257.49 2,274,160.99 2,705,527.O9 UNIT cosT/SQ.M. = 81r.07 7,137.42 1,346.03 TOT 3.1 DIPOTOGORqIUIETA ROAD A. CO CNETE PAVEMENT Length = 500 mts Width = 6.7 mts 5{, nm. AC Overlay 80 mm. AC Orerlay A3-1 Crack and Seat and AC Overlav Total Unit Total Unit Description Unit quantity Amount Amount Cost Cost Crack and seat ofexlstint Dcco (with asohalt levelins course) sq.m. 670 695.10 465.7t7.OO 695.10 465,777.@ Eituminous tack coat. emulsified asDhalt ss-1 tonnes 2.7872 58,@4.81 163.343.33 58,604.81 163,343.33 Bituminous concrete surface wearinq course 5q.m. 3350 @2.67 2.O14.743.50 961.83 3,222,t30.50 Reflectorized thermoDlastic Davement markine (vellowl sq.m. 27 473.77 14.3/.9.77 873.77 74349.77 Reflectorized thermoDlastic Davement markinc (white) sq.m. 202.5 866.57 775,480.43 866.57 77s480.43 TOTAL COST = 2,Ut,633.42 4,O45,O20.42 UNIT cosT/sQ.M. = 848.25 7,207.47

Total Unit TotalUnit Description Unit Qua ntity Amount Amount Cost Cost Sealinc of cracks and ioints on existinc Dcco t.m. 2926 706.72 3t2,262.72 706.72 372,252.72 Bituminous tack coat, emulsified asphalt ss-1 tonnes 2.t44 58,604.81 p5,644.77 58.604.81 !25.9A.71 Bituminous concrete surface wearinS course so.m. 602.61 2,074,743.50 951.83 3,222,130.50 Reflectorized thermoplastic pavement marking (yellow) so.m. 873.n 78,349.77 873.77 78,349.r7 Reflectorized thermoplastic pavement marking (white) sq.m. 202.5 866.57 fl5,440.43 865.57 775-4AO.43 ToTAt COST = 2,650,4U.53 3,853,871.53 UNIT coST/sQ.M. = 797.79 7,750.47 B. AC PAVEMENT Length = 300 mts Width = 6.7 mts 50 mm. AC Oreday E0 mm. AC Oreday 82 Reconstruction ofAC Pavement on PCCP (or Bridce) Total Unit Total Unit Description Unit quantity Amount Amount Cost Cost Removal ofexistinr ac Davement sq.m. 2070 46.61 93,686.10 45.51 93,686.10 Sealinc of cracks and ioints on existins occD l.m. t754 706.72 187.186.88 106.72 187,186.88 Bituminous tack coat, emulsified asphalt ss-1 tonnes 7.246/, 58,@4.81 75349.23 58,604.81 7s.389.23 Bituminous concrete surface wearina course sq.m. 2070 fi2.61 7.2t7.246.LO 951.83 1,933,278.30 Reflectorized thermoolastic oavement markine (vellow) 50.m. 72 473.77 LO,485.24 873.77 70,485.24 Reflectorized thermoDlastic Davement markinc (white) so.m. 866.s7 105,288.26 866.57 105.288.26 TOTAL CosT = 1,683,281.80 2,405,314.@ UNIT COST/SQ.M. = 837.45 t,196.67 DIPOI.OG-OROQUIETA ROAD

TotalUnit Amount Cost 58,604.81 75349.23 961.83 1,933,278.30 473.77 1o,485.24 866.57 los,2a8.25 TOTAL COST = r,4o2,4O8.82 2,r24447.O2 uNlT cosT/sq.M. = 697.72 1,056.94 c. SH(X'LDEN Length = 100 mts Width = 7.4 mts

22,012.76 t57.23 oF u) (Jo Xo =lu =NlrH lu l-lF ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE 1 LOT 1.1 . BAUANG - BAGUIO ROAD PROVTNCES OF LA UNTON & BENGUET ( REGION t& CAR )

SUMMARY OF COSTS (For lmplementatlon, L = 30.978 km.)

BILL DESCRIPTION TOTAL COST ITEM PERCENT AMOUNT

PART A FACILITIES FOR THE ENGINEEB 6.12 12,535,318.66

PART B OTHER GENEFAL REOUIBEMENTS 0.64 't,310,257.60

PART C EARTHWORKS 2.60 5,332,280.86

PART D SUBBASE AND BASE COURSE o.20 414,143.25

PART E SURFACE COURSE 83.62 171 ,215,815.83

PART F BRIDGE CONSTRUCTION

PART G DRAINAGE AND SLOPE PROTECTION STRUCTURES 1.30 2,660,475.10

PART H MISCELLANEOUS STRUCTURES 4.59 9,39;,109.93

PART J MOBILIZATION AND DEMOBILIZATION o.92 1,890,198.25

SUB . TOTAL 100.00 204,7s5,s99.47

PART K DAYWORKS 1,023,774.O4

PART L PROVISIONAL SUM 6,142,667.98

GRAND TOTAL 100.00 211,922,O45,44 ADB TA7093. PIII: PREPARING THE PHILIPPINES ROAD SECTOR IHPROVEMEiIT PROJECT ASSET PRESERVATION UTIDER TRANCHE 1 COI'TTRACI PACKAGE 1 LOT 1.1 . BAUAI,{G - AAGUIO ROAD PROVINCES OF LA UNION & AENGUET { REGION I & CAR )

SUMMARY OF COST ESTIMATE

(Fq rhFl.m.r .f6, L = 30.973 ln)

DIFECiCOST cosTcoMPot{ET .OTAI ITEI' UNIT oEscRtmoN UNIT OUANTITY NO. PROFI'I TOTAL cosT cosT !NtTCOSt TOIAL octl FOREIGN TAXES

(1) 12) (3J (s) (6) t4 (8) (e) 00) (11) 02) (13) (14) (15) lt6) 07)

FACiLT ES FOR THE ENGINEER

4l l ("1 Pro!t!!q!9r!lq!!rod Fi.ld o!!gqq.d Llbo..iot td de EndNlgqBsbl!] r2.00 20,000 0c 240,99q:00 19.!q L0r00 82-5q!!! 243,452 a! 9q:7O7 2A t22.560 4 26,999 00 ?'@d€ Uylg Ourr.6 lor tr!6 E.q'n.q on R6nl:l B.!,! -qP 12.OO 180,00000 1O.Oq 2J&9!q 61.920 0Q 21?,6495C 24r.920 ( opor.reA4aiqrai. comb,n9d q!g!!tq!F, Lebdllgla ?{'d 1200 117,574.13 1 410,93L!! lo 90 1000 20 00 252,147 52 2!q,u9Q1 485.362 !! 67 fa7 6g r-!01,006 52 227 456 02 1 196 300 I 154 025.01 -'v n9 Ouan.6 ro' thqElgIllF (Schedul€ Ar EJ Eurri.r€s/FrJr.3 Ar1:!Ld) nilh Equronsnt. dd appliqrceo 9?9t99.0! 529i900! r0.00 10.00 20 00 r05 898.00 7624656 142,t4456 402 39! 9? ,12,343s3 96 895 4r ror -.oo d1! Cgq brr€d F'€ d Oh!9lL.bor.lory and LrTg OLa!919 ror rho Eng,..6,B (Schedule. I6 C) Prwid€ qnd MainlainLaboralo.y I6tne EqolpMt and Appar6tu ( Sch. O ) 1!! 1,877.649 5C 1 S77.9!9!! 10 00 10-00 to oa 375 529 99 229!9!53 645.9i143 1.€92 641! 252 356 oa 378 534.14 2 i23.560 2.523 560 93 P.did€ sd Marniain Commlnreton F.qllty ior tt€ Engn@. 12 00 13,416 67 1q1pq0.00 10.09 ?o 00 32?00.00 55.3q4 oo 36,e49 !! A 1 llll Ploli4q suppli.. rd conrqabl. sro..a!9lE!9!!Lgtic.. L.bo!!on q!L_ 26,r3r 5e 3 r4r1L9.00 19!q ?0 00 r 03r9fzl9 151.a42 47 2r9.9r2 3! 1s-193 0s F -M.9 q9i{e6 ro, t'989!t9qt!scn6dLle E ! J Araa4 P.ovid€, o!€E!. !!d U!i44t lwo Pi.k'up rrE9!Q9eq!!_19l6!v cab, s6tu cr .aaoo 119.e1q:I! ! 59s,60130 r0 00 1000 2!.9q zrs l2o3s 517,766 67 1.236,887 05 2,679 967.U 637,340 65 4132493 20r 3537r V6hicl6lor th. Enaineers (2 unib) A 1.3(a) P.ovid€ a!!! !,leinEin s!ru6v Insiruil6n!./ Equipmsnt lor !h.3g]!Eac. to 1r.oo 419? 1c 4L!!9 oo 1o.oo 1q 00 20 o! a63iooo ao.sal.?a e5.3!!!! 283 157 2S 3S 533:S! 56 71210 fF Enq'no.' { Sch.dglqql o,@,.'on a 1,91b) or [email protected] P.,.o.nsl(sqt'.d916 !) 12.OO 56 5a3 S3 678,5260Q 1q-09 rooo 20 oo r35,705 2o jL1eL11 233,412 94 2 9??49 799.683S7 r09 432 67 7s 994 9r o,opre$ -.' gA 4.1.4 PholoqraphB 12.00 5Zt!! !Q 10 00 10.00 2000 11t!!!! 3.343.36 19,93136 21 254 4t.271.82 9,344 56 77 A7l 6 489 28

TOTAL OF PART A 9 326,874 oO 1 S65,374 80 1,343,069 a6 5,S0S 947 53 2 340 236 65 12 r35.3rS

OTHEF GENEAAL REQUIBEMENTS

qP!'l css44q119"rori *o 1941. t: 45r1494.05 451,394.05 19.S 20 00 90j7€.3i 6\012..7! r5s 451 9! 6 397 23 526056S{ :1? aa1 4l 6!2p45 60 SociAl 505,009 00 ro 00 20 00 q!q90 o0 72,720 00 173!7?9:09 9 384 06 587 089 5,4 jJ8 720 OO 9P1,2 Envomenral and Saleguards Lsq _ llqqqp.00 t9 Q0 t o,qd 9t!l!9! !l 1cp99!9 13.!q 00 20 0a 31900.00 ?,!9? 99 6 192 0! 3 46!.29 124217e 2,903 04 24 r92 oO 24,192 00

s74 a94 05 194.97981 335 363.55 26,244 4e '| 126,774.2C 157,230 91 1 110 257 50

€AFTHWORK

488.0C 305.11 14q qqt! 1000 10.q 20.0c 29,n9 a3 21 4!913 st,?19!! 125,099 41 53.656 56 ?00 r 13 72 Subcr.de Pr€p.i.u9n _!q m. 4,019 0C 20 91 31e9L!! 10.00 lq.sq 20 0c 12,1lzjrs 28.99!?1 7t 198 q2 33 310 9€ 1131287 53 2A 19 JPL I03 C,*i and Soet tEr.inq PCC Pa!€monq !q.!1 7,000 0c 593 47 3 734,285J3 r000 1000 20 0c 746 457 09 537,137.14 l?44,594 1S 3,263 4961! 516.91160 1,238 071 63 : r1a,a79 61 716 93

TOTAI OF PAFT C 3.967,4708€ 793 494 r€ 571315.81 1 364,809 9€ 3,460 193 92 1,330 039 15 5 332 240 a6

SIJBBASE AND BASE COUFSE

!oo aggrolete suoo@ cour3e 99! 9a 0c 47254 46310!l 1o oo 1000 20 oc 9?9?13 6,66q 74 15.93!q 29 Sag.aq 16 6s7 14 15 734 98 62.24155 635 12 201 &q'.e9!, B&. co_uL.q 540 0c ?q!9q!q3 2a oc J2,366.33 37,7O3 4 i37 919!! 90!!21 42

TOTAL OF PART D 308.r42 3C 61 628.4€ 44,372.49 106,000 95 167 769 37 150.2r 7 48 9615640 INOIRECT DIFECTCOST COSTCOMPONET IT€I/| UI DESCFIPNON UNIT qUANTITY UNIT NO, uNrcost ocM TOTAL rosT cosT

(2) (3) (5) (5) (3) (e) (r) t7) ( l {r 2j 1r 3) (1{) (r 5) {r 6)

suBFACe COUASE

301(1) t9t1!rq 3.OQ 14q€q0 08 1000 10,0q 20 00 ?al3?n2 20,255.05 4S367.07 137,970 1! 25,899 94 24,17104 r89 0121 1! 63 015 72 !0?(?) r9!!a e7.qq 45 305.4,4 4.394969.16 10.00 ?9!e €7€,933 23 632,831.9! ! s11 765.1Q 4 316,?16 3€ 450,773 93 739,,141 03 i.)06431 32 310(1). !!!l 238.81?,Q9 475.S3 113.896 06s 81 1q,0q ?0.00 22.779,2131e 3! 180,246 q 23243,63t T4 25,593_59312 111(1)b !94 31s9 . 39!.i 54 22 lu sq 79,82 a,{ 321,541 7S 9341?14 150,16279 1 096 53 sPL3ra l4. ?114e 0o 1.9!4J!Z q! 2es,ze934 642 742 47 1 620,615 29 494,37409 !sI'. 95!.!? 2,463.4516,{ 572f19.!! {12,394 64 2 517,205 53 660,69!.53 r.233 0l eL31a 3,7r4.59454 r0 00 20 00 742,91a 91 534,901 51 1,2f1820.52 3 405,535 21 113 365 6r 4 992 41s 9! 71324

TOTAL OF PAFT E 127 ,392 724 1 1 25,474,544 02 r8 344 55r.70 43,e23 095.72 116 574,132 91 26121 750 A1 24,515,832 65 171 215 615 83

ORAIMGE ANO SLOPE PFOTECTION STFUCTIJRES

105(5) ia oo 2.s?3f9 , 25.237 6a r!!q hoo a,oa7s3 r661 75 1o 423.A1 16,s1! 59 506 ! Muonry 150 00 454,5t2.72 19.qq 6s.!19.q! 1s6 352 33 llq!262 3r 5r1(r) )io..JBox lOOOmm, 1000mn! 2o00mm) 9!pq9 2 766 55 I9.09 ls sq ?0.00 276,Q6j.!2 4Lpp!4 919 507 3t !o!lL3 0l '|16,442f1 s11L2) r$s€i {Typ€ GM-s r 50.00 !.1?9,85 10.00 20.00 23,299:sl 1qI!14 69445.61 60 945.10 156 {qq!

1,979,520 15 395,m4 03 ,e5,o5o 90 600 954 94 1263,79412 2 660 475 r0

MISCELLANEOUS STBUCTUAES

605(r)! l!am..g S.f.! . 12p oo j!1?6.t3 659,02154 l0 00 1q 9q 20.00 133,304 31 9633910 234143 41 332,720 41 442 641 27 123,843 27 199 rq!95 7 ,024 73 q6,325 60q{uL 83 00 2.19{!! r73 453 94 i 0:00 20 00 35,77079 61s2!]! 37 117 7232l !qq99 62 2.s9q 1,1 60s(21 &eulalory Sig.! 9oo 5195r.73 3lJZ!!9 r 0qq 7,rs !q 5 150!4 17,670.79 q0 60s(3) nlormalory Sqn3 15oO rs 98q!? 239.437 52 ro 2Sq9 17,967 52 34 536 Q? 82 504 1r4,041.01 167 668 21 40,592 4a 2r,489 45 !1 .i 9120) Lei*rorized Tnemopl6lic Pavom.nl Mqtr^o. (mit ) 19!, 7,3r30! r0 0q 10 00 20 00 940.3!9.93 6f10?445 2992.52714 r-q€4p76 r r rr€,376.3? 454 o€ 612121 691eaorizcansa9p1991919v6-d9nf !34!1r..Ci![o;) lp09 00 644.2€ I,166 a6a 90 20 00 233,373 7a 163029.r2 7/11 1OB 56 465,644 22 36r,475 ol

TOTAL OF PAFT H 5,S91,497 27 1,394,37945 1 006833.21 2,145 212 66 4 244,433 77 3 031 687 22 2 030,9S8 94

MOBILIZAT1ON ANO OEMOB IIZATION

sPlgoo Vobih:ation !.d Omobiloaton [1b ol Civl Wd* C@t) L00 1,406,397.51 1.406!92!! r0 0o 10 00 20.00 281.229!q 292.,2114 443 800.74 '| 25f,543 fA 308131.27 324.513 29 1 Jgo 19-16 r 890,198 25

sPL 9oo r,02!129.99 358,322 30 oepeu 122.S53 36 : )aiqai

TOTAL OF PART K 354 322 30

PFIOVISIONALSUM

SPL looo Pros.'on.r Sum q 11]?,667.9S 2149 933 79 !?!5 614 03 73712O 1Q

PERCEI{TAGE 19 17,! ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE 1 LOT 1.2 - OLONGAPO - BUGALLON ROAD pRovtNcE oF ZAMBALES (REGTONS il ) SUMMARY OF COSTS (For lmplementatlon, L = 65.549 km.)

PART A FACILITIES FOR THE ENGINEER

PART B OTHER GENERAL REOUIBEMENTS 2, t4€,538.71

PART C EARTHWORKS

PART D SUBBASE AND BASE COURSE

PART E SURFACE COURSE

PART F BRIDGE CONSTRUCTION

PART G ORAINAGE AND SLOPE PROTECTION STRUCTURES

PART H MISCELLANEOUS STRUCTURES

PART J

PART K

PART L ADA TA 7093 - PHI: PREPARING TllE PHIUPPINES ROAO SECTOR IMPROVE EIIT pROJECT ASSET PRESERVATION UNDER TRANCHE I CONTRACT PACKAGE 1 LOT 1.2 - OLONGAPO. BUGALLOI. ROAD PROVINCE OFZAMBALES, REGION III

SUMMARY OF COST ESTIT'ATE (For lmFlm.nt do., I - 65.s4e rn)

cosT

10i.606 40 403 6141

376 534

47,1O3.r'l

,(),632 46

TOTAL OF PART A 12,t 24,52A 2 rl(15,105 62 4136,741 6,raa,r2r 42 7 r9r,657.61

OTI'IER GENERAL REOU IFIEMENTS

10 896.82 \q3!,232 r4:t,603. 1 19!.li8q:71 1.194 936.71

12,421

3.ra,7li 2.58

2,702 511

2A24,t,q32 NDtiECt olREcl coaT coST cotPoiET tIfl DEaCFtPnOt{ u{lt IAFK TOTAL UIIIT Io. ocr TOTAL TOTAL cosT ul t cost TOTAL FOREtOIt LOCA! TAXES cost

(1) t2l (3) {.) (6) (6) (7) (8) (e) (10) {11) 021 (13) (14) (15) (16) 07)

MISCELLANEOUS STRUCTURES

10,cro 56,6i3.67 551926 61 !!4!r'3.!! 21045.2! 19 _3,4i !00 2ta, 313,159. 4,!!a4 2,996.2{ l8!9lbrory silN 565,745.6r 7,1a9.32 !f3-!z!1 201.rs6.83 307. l 1,2334 a_033.10 _ 1q,oral 1C.5€3. 134.659.6€ - 331?43.0! 46?.9?9.19 647,41o.tt !66,999., !.153.9! 21,569.31 2,OO!t,611 .62 3J99Ee1{ 4.547.141.57 315:t.€65.6 13-! 9€,O€ 412 6T7.:, 754.620.42 tr.69.079.4 41,?q4

TOTAI OF PART II 2,091,610,92 3,474,566.49 7295,0S2.61

MOEIIIZATION ANO OEMOEIUZAIION

to .nd DdioO{Eddr fi r ot Ch,ll Wort Co.0 1.C 4.120 4.t20348.96 t0.0 to.ot) &4.O77. s6161aia t72117 al 5 as, e'2 7a 'l TOTAL OF PAFT J 4,120,3€€.96 3,735,660.31 961,619.71 e72,411.41 5,537.442 76

2,444,134.€,1 1,010,3,4712 1,530,711.36 346,676.1t

ip_a rm i e66or-u

17,323,807,61 6,046,062.73 9,164,2€4.1( 2,079,454.t( 17p2A,AC7.ai

PEFCETTAOE ta, ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE II LOT 2.1 PALO . CARIGARA. ORMOC ROAD AND DAANG MAHABLIKA ( LILOAN - NAVAL HIGHWAY ) PROVTNCE OF LEYTE ( REGTON V t )

SUMMARY OF COSTS (For lmpl€m€ntatlon, L = 36.120 km.)

EILL OESCRIPTION TOTAL COST ITEiI PERCENT A]iIOUNT

FACILITIES FOR THE ENGINEER 3.88 14,736,927.61

PART B OTHER GENERAL REQUIREMENTS o.47 1,801,843.27

LOT 2,1. - PALO - CARIGARA - ORMOC ROAD

PART C EARTHWORKS 2.12 8,067,741.36

PART D SUBBASE AND BASE COURSE 1.87 7,118,812.98

PART E SURFACE COURSE 43.11 163,866,388.51

PART H MISCELLANEOUS STRUCTURES 1.56 5,921,708.34

TOTAL FOR PART C, D, E & H (LOT 2..Ia) 184,974,651.1e

LOT 2.Ib - DAAI{G TIAHARLIKA ROAD ( ULOAN . HIGHWAY ) '{AVAL PART C EARTHWORKS 1.27 4,815,893.53

PART D SUBBASE AND BASE COURSE 1.05 3,972,402.90

PART E SURFACE COURSE 42.65 162,134 871.50

PART H MISCELLANEOUS STRUCTURES 1.08 4,092,649.10

TOTAL FOF PART C, D, E & H (LOT 2.lb) 175,015,817,09

PART J MOBILIZATION ANO OEMOBILIZATION 3,599,904.68

SUB - TOTAL 100.00 3A0,129,143,78

PART K DAYWORKS 1,900,645.72

PART L PROVISIONAL SUM 't1,403,874.31

GFAND TOTAL 303,4]3,669,81 AOB TA 71t93 - PHI: PREPARI]IG THE PHIUPPIIIES ROAD SECTOR lilPROVEtlEl{I PROJECT ASSET PRESERVATIOII UNOER TM}ICHE I COTITFACT PACKAGE II LOT 2.1 PALO . CARIGARA. ORHOC ROAO AI{O OAANG IIAHARUXA { ULOAN . IIAVAL HIGHWAY I PROV|a{CE OF |-EYTE ( REGTOI| )

SUMMARY OF COST ESTII'ATE (For ldplddtrdon, L - 3t.t23 lm) INIXRECT OIFECT COST PoNET ITEX cost cot DEACFIMON UI{II UNIT xo, ocf TOTAL UNTT COST (5)+(10) TAXES cosT cosT

0) (2) {3) (4) (5) {6) (7) (8) (e) 00) ( ) 02) (13) 04) 05) 06) (17)

SIJBEAgE AND AASE COUASE

ry 1,169.00 !14 !!z/32 s! 1000 i0.00 20 0o I1t !!q!9 191 877 33 3 9,!!9?! 199,256.23 149614 7a 64124 '_.- 91Z,tgSq 582!409 22

t,4220t7.13 2 655 017 26

SUFFACE@URSE

30t {t) n'rc6 Pnm. Cor MC - t0 Cul-brck Alohd !s.8i ?.o€ a eir,sss a3 20,@ 9€9t q.6! a,s9€,955 3€ 452.211 96 3U212) n,mus T.ck Co!t. Ehulal.d &jlqLql{ 51q 49,225.57 2654,160.?7 10 00 20.00 531.0!q.r9 962,71309 2.q19,932!! 503,133 77 445.923.33 3,572.59496 66,159.r7 3r9(!)! himN concr€r€ sudlc. (w.{inc)c9!,!., !9r!441!@q !!&!l 196-7!!g t000 19 90 2q 00 I9,939.919!9 34.240,201 83 21 7a5,30AAC 133,931.95r 34 6B A2 !1111tI dand Cement Cdcr€r. P.v€hont, Plton z@nm lhk l5t L1 L492352 43 ?0.so 393,470.49 1,545,369 23 690,435 20 1 702,16611 6,03i/,4r.qq sPL312 lmo ol cracrs ed Jor.E (EiErhs PcclL 52,629 0( q9.!! qq5-4!.€9 3129,75172 6,0r,'.72393 sPLai3 :hinq!!rc$d.. L09q1l :1! 2,101,947 AC 652,323 36 4,O32F7914 tonib Pevino F.bic whh Gl!.. R.lnlbrc.m.nr 5,000 0( 532 93 10 oo m.00 532,925.11 393 ?06 03 916,631 t9 2,451,74174 504,249S0 624,22514 3,53r,256J6 71625

IOTAL OF PAFT E 12t 924 396.22 17,55711306

MISCEILANEOOS STFUCTOFES tr i!l r!! !{ 'ninq siqc 5,213.5 93 da3.1o 1s,76s.6i 13 513 41 32,242.43 16,q9!4 62,041 20 126.12!.1] z9qe e! 1q! 5,9!!!1 zr.33!.rl 20.0o 15,/166.11 ?q.6!!l! ?r.{ l5lq9!! 10.m Jq ?et 69 ll5,363.41 159,59531 234,39531 56,73137 21,462 96 q3e .cldiz.

4,2|06,032 99 341,206 6t 634,1168 75 1 515,675 35 2,74€.063.79 1 a67,573 03 1 306,046.51 5 92r,704 34

TOTAL FOF PAFT C, O, E A H IIOT 2.1.)

LOT 2.1b. OAAI{G MAHARUKA ROAD {LILOAN. NAVAL HIG )

l 101t31! R€nov.! ol Ei.linr AC Prv.mMt 1,533.00 1qq6f. 1 1q,6q1!q 5,901.27 21,40736 t2,99000 rosrii l S!bsr.d. Pop!trldon 37,asaool 199,e75.96 156 195 16 212,09510 30,374.55 312,904.43 1.qq3-9111!. ?3 33 cr&k od s.ar (Eri!0.! Pcc P.v.mmU 5,r)oo.ool 2,131,grc m a4f.!9191 330,031@ q96,46r 76

I 3,543,25412 1232,639.42 1,230,777.95 ITEI otRBcT cost OEACRFflOII ul{T qu fITrY I UNIT NO. ocx TOYAL TOTAL ul|tT coSt (.)r{1o) FOFEION TAXES cosT cosr

0) t2) (3) (4) (5) (5) (7) (8) (s) (t0) 01) (12) 03) 04) (15) 07)

SUBBAAE ANO &ASE COUFSE

4"it!!!! 1,$6,qq ?! 1r!99!291.15 n2@51 706.e6

!xr2,2aG.51

ol nl 42.,462.4 2,499 332.05 s57,15O.!l !q{is!! 6A 2e1.43 80. T.ck cor. Emul.lll.d A|ohdt. ss-1 ,15.00 326,070.r 2,230 606.32 3 0€,321 66 150 17 (w.ulnolooil..., (5omm E6 concr.r. Sud.cr Hor L.ld 4,173,363.0 4,71?,@!99 9@1q9.!5 6,360,11A,4C !qr!i-a36,- l.(! cond€g_sglg! 1i,145,251.! 26,624.7d 71,:t64,932.95 15 527,235.43 @.j!ql@!9J9G!4 1@44 -1-6,99qJ !9.!l 104.022,351 35 1 0e?,99 ol qrctg &d Jitnt , (Elhht PccP) 39,51:t.0C L156/t24.57 426,9t3.92 4FrA,r23.91 '.!ihg 313 glr{ !.!!,lz!.!! 1,036,52r. 65e,476.03 4,O5i,479.q7 1 352.4! OFLxdb P.vim F.bric lilh Fd.L.6tMt 9qu9!.!! 2,!2e.t9L4 507,$4.6t 3.991!2!€i! 716.25

TO]AL OF PART E 120,i36,065.r 1 24,12f 17,37r,593.38 ,t! 1 1 ,2t3.t2 'lt ,:196,806 I ,266,03:t.'t3 2:1,5511,375.75 26,?94,1x13! 162,13,1,871.50

MISCELLANEOU9 STFUCTURES

14aeos6 4q9la8l 13,3it1 9C l$t!!a! .!6 8lqn. 2,95174 {.r eu.q r,74! 6r 1.,592.9_9 2,643.10 3,€!!.3j 94.q22.33 3,@?.q! \,4,! !Q7:94r.rl 21,4710! F.nrbrr..d lh.rnroobirc Prwrn.nr it{tim.. lwhlgt 3:r5,3t0.53 625,106,76 r,!49,9! 933,393101 7at,/(}9.35 ?-41f]2.!! &!q!IE!dra"oobrdclry9q9d!!!d!!r!, (Y€Io!v) 291 2f to19.92 64,547.59 53,39? a! ?52!!35.09

O, E H TOT L FOA PAnt C, I {LOT 2r b) t30220.101.9€ t 42t247.12 29 315 450.6,1 t75.0rt al7 03

MOBIUZATION ANO OEMOBILIZATION gobllE dd md Dsnobiuz.rlon l1r. ol ctulrwod c@rl t.0c t-0.@ 20.0c 535 700.1 2,3719Os.29 610,579 a3 ,599.90459

2 67A 500.51 2,371,tO'.2C

1 ,S00.645.72 665.226.0C a26.o11,43 1 .9( 0345.t2

6€5,226.0( 22tt,of7.19

1,403,874,31 3.oar.a55-01 -runr33d 133a,.!t!:e2 11.403.874.31 3 991,355.01 6,0,14,05339 1,363.464 92

OFAI{D TOTAI FOF I]OT AI

PEICAlt 6E ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE II LOT 2.2 TLOTLO - CAP|Z ROAD (OLD ROUTE) PROVTNCE OF TLOTLO ( HEGTON Vt ) SUMMARY OF COSTS (For lmplementatlon, L = 27.010 km,)

PART A FACILITIES FOR THE ENGINEER 12,565,7 48,

PART B OTHER GENERAL REOUIREMENTS 't,498,232.

PART C EARTHWORKS 8,696,03 t.

PART D SUBBASE AND BASE COURSE 4,73t ,061.41

PART E SURFACE COURSE 212,7'-,960

PART F BRIDGE CONSTRUCTION

PART G DRAINAGE AND SLOPE PROTECTION STRUCTURES

PART H MISCELLANEOUS STRUCTURES

PART J MOBILIZATION AND DEMOBILIZATION 2,334,630.

SUB - TOTAL 249,861,513.1

PART K DAYWORKS 1,249,308.

PART L PROVISIONAL SUM 7,495 948.39

GRAND TOTAL AOB TA 7093. PHII PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASS€T PRESERVATIOTI UNOER TRANCHE 1 CONTRACT PACKAGE II LOT 2.2 tLOtLO. CAPTZ ROAO (OLD ROUTE) PROVTNCE OF tLOtLO ( REGTON Vt )

SUMMARY OF COST ESTIMATE (For Inpt.m.nt.tlon, L : 26.336 km)

DIFECTCOST NDINEC ITEII COSTCOMPONET DESCFIPT!ON UNIT UNIT NO, UNITCOST octrl TOTAL cosT cosT

(1) (2) (3) (4) (5) (61 (7) (3) (e) (10) (r r) (12) (r 3) (r s) 117)

FACILIIIES FOF TH€ €NGINEEA

lo. t'o E.9!!99!9q8944 Bl 't2.oo 10.00 10.00 20 00 44,000 o0 34,5600C 42,560 0c 000 2B3 452 30 322 560 o0 49. . t?.99 15,000.0c r0 00 r0 oo 20 00 .3q,qq0 00 25,92000 61,920 oC 212 AA9 60 ?9,0304C ?4r,920 00 20,160 00 4.1.1{9) r2.00 r r 7,964 a! r,4r 5 626 67 1o 00 10.00 20 00 ?Q3.8s0 24 496.929q 1 606,552 37 229.312.21 I 90? 642 24

i.! !0! 529 490 0C ,br th€ Conb'rd F'€o Ohe, Labor.tory lnd rvinq Q!6n.61or the E.ql.€e.6 (Sch6du6. I & C) (o) ( 4.1 I Povide and MaintainLaboreton !&4!gEqutp!€nt Bid Appa@lu. Sch 0 ) 100 1,377,6495 1,877 649 50 10.00 10.00 20.qq 375,529.9C 270 361 53 645!91149 1 492,570 70 252,35609 9Zq.!4,1! ?!523,560 93 Provido and Mainrain Commun calio. Fac litv lor lh. Enoinoo. t? s9 10 00 20 00 32,200 o! 55 3a4.OC 2T 901 .44 P.ovid€ Suppl 43nd!9!qu!Fbl6 St\..6.lor Fi.ld Otfc€, LEborat ry!!!L t2 oo 26,1415€ 3r4,179 00 r0.00 1o 00 20.qq 64335.q0 45 241 7e 108 077 5€ L5:1149?41 219,912 36 122,256 5A 35 188 05 L'v.q Ou.n€6lor lho Enq'n@r { Schooul. E A F) Provid€. Op€hr€ and l\44ntai. 4wo Picl-up ltpg-Q99q!!tQ!9!tQq!rQ9ry!9! 24 00 190,1q e! 3,611,063 00 10 00 10.00 2000 7?2,212.64 519,993 07 1.2422ot 91 643,762 08 1,317 869 04 4eia.i6s 67 242 219 53 Y€tr4!9 &: q!!!s!!!9,9 1? ratll Ar-i;) P.did€ ed Maintain Suryey ltutrum6nt1 Equipm6nt lor th. s3btan@ to i, od 23,46?5! 231,550 00 l0 00 1o o0 20 00 q6.31q00 40,543 20 96,353 2C 283,157 2€ 38,533 82 !9i14! 3iq,403 20 31 533 60 lh9 E!9!!99!9! Eelq !a! ich.du. G ) Provi.ion ol S!rey Personnol sqJ9L!2 €i!l,0r 7 07 io-o 9s,d66aG 109,e!14! 12r0! 4.42433 20 00 4,254 SA 6 449 2A

TOTAL OF PART A 9,349,515 23 3,216.233.24 5.420,617.40

OTHEF GENEFAL F€OUIF€MENTS

Comlrlclon s6i6tLa!4 Haallh ls 5S1,7sq4! ia,42q3 203 564 23 4p39.27 SPL.2 Ehv rcnhental aldJocja sat€suads 100 505,000 00 @L!aaa! 1q9q .r000 29 0! 101 000 0! 72120 aa 173720.04 135,945 60 46i,328 00 a.,8 720.00 673 720 00 Pioioct Bilboard 200 10 00 10 00 20.00 3!6!!.0C 2 592 00 6192.0C a 467.24 12,42176 2 903 04 ,a419244 r2 096 00

I,r r4 756 4€ 222 951 3A 160 524 93 333 476.23 1 164.7r0 39

EAFTHWORK

10r(3)b R.ddar oi E!a!!e4q!ar.d./,t 1,122 491 04 20.00 2Z!.41/.41 161 540 53 943,62129 122,1e2 9A 105{r) s!bsr!@!!!!q!!9n 12r.10s 00 ?1.91 ?!&4 ff2 34 109! 3lt.oB122 ?,2O1,774.f3 259,2r9 39 r,029,3r99? 3-!!q.3r4.03 2A 9l O.cr.nd Sear (ENtnq PCC P.v.mc^! s,009!9 395 2U 22 - TOTAL OF PAAT C s3r 93r 97 2,226 241 92 5 55r,892 33 770,11425 2,376 025 13 I694031 70

SUBB.ASE AND AASE COUFISE

200 &Loga!€ rslqbele CouEo 2 0oo 00 4qql! 10.00 10.00 20.00 1q4,697.04 140181 87 334 676!? 345.597 69 3,1 t4t.4s 654 18 201 Aggr.q.l€ 8al9 Co!E. . -.!p19 00 2rq!1353.09 10.00 1 231,269 62 1 213 640 32 T2A 459 2e

3 525 343.31 705,064.6€ 1212,714.1C 1 A62.28A 64 1,55923401 INDIRECT ITEt' OIFECT COST cosTcot{PoNel DESCFtmo ut' T OUANTIIY UNIT NO. ocf TOTAL cosT UNIICOST ]OTAL FONEGN LOCAL TAXES cosT

{1} t2) (3) (4) (5) (6) 17l (€) {9) (10) or) (12) (13) (15) '16) (r7)

PAAT E SURFACE COUBSE

39q 9,948,215 57 r00o 20.oo J,997,643 11 1,433,303 0,{ 3.435,9a6 1€ 5,556.i37 42 4,705.733 0o 3,r5229131 301(1) 2,444 260 79 r0.!9 10,09 20 0o 43_!05?:1q 35r,39755 2,396.450 74 { cls94 !:19.710.50 66,932 a7 qz!! 44.202 7A 3,229580.59 10.00 !q!q 545,916.1? !!!pse6r 1,110,9751! 3,176,262 3A 621,457 05 542 836 gU 4,94!:55j,32 64,744 42 3rg{1Ie HglL.id l oDm t'i !l 2!!094 49O 47 10.00 1o0o 20.oo 4,q19,694.09 3,2t70 r82 63 4,249440.72 20 554.994.65 !,502,419 3r 4,925 265 35 3r0(1lb e/,5Ee!! 77,376699.45 10.00 10.00 20.00 15,475.339j!! 26,617,534 6r 7r 315,744 39 r 5,6?1 92q9q llL! 21o t2 103 99.4,284.06 r,065 85 31O(l)c Ltid (looqm q'i4l 10 00 r q,00 !-lor !!.!t- 35,!!ZF!? 9! 20.00 Lqq9-5ts!q 5,06!l!!lq! 12,107 958.12 32 330,776.47 7 066,963 49 LqLr94 17 305,510.73 1 368 06 45.2€ 294 215 19 20,99 42-qq6!9 101210.03 ?!?.3oo 2e 72 925.32 395 425 21 59!.91!.9! 4?q995 6? 1,!24301.49 4 450,810.63 1,r29,692 73 1,492 622.6? r 334 63 SPL31 10.00 i0.00 20 oo 539.640.61 p4,22124 917,86r.06 2 446,917.80 513,144 39 6260Q2.73 717 21

r54,272,29r a9 31654,454.33 35,792 635.62 212 T17 960.29

263 55A 52

MISCELLANEOUS STEUCTURES

e.!! 5 236 72 4f,130 44 10 00 rq.Qq 2A 00 9,42609 qzqQ.7! 16,21247 2?47713 3t 123.55 8,742.63 63 343 31 7,03815 605(3) n.lorv s.q.s 7.99 15.ese.70 111,997.34 22,3995€ r q.r2z !9 6r2(1) crorEg! l!9!49rlC!!!!! 6nr M.lking., (wlir.) q,t2?.o9 699 91 611,339 37 1 324,570.!q !!z0qq9{14 don2.d Th6moph.tjc Pawn€nl Mekine., fi.lla) 656 30 10.00 20 0c L/r4,347.79 355,540.41 653.943 38 a!9.010-!1 321,29194 aa2 0€

TOTAL OF PAFIT H 5.438,205.77 1,0€7,641.15 783,101.63 2,107 493 13 1 673,517 A3

MOBITIZATION AND OEMOSILIZATION

SPL 800 i:ario oo Oernouitr li* or CMI wqk Cot) 1.00 l,!!I.075 e1 1,737,075.91 10.00 10.00 20 0c 347,415 18 25013493 597,554 r1 r pJ3.4?9 r3 392,249 34 408,947 85

TOTA! OF PAFT J 1,737 075 9r 1,533,42913 392,249.3,4

OAYWORK sPL 9oO ;.r 1,24930a.07 437.241 A2 662,133.27 144,915,97

1.249 308 07 437.257 A2 662 133 27

PROVISIOMLSUM

2,623,546 94 3,972 i99;a 699,50r.81 7 4r5,84S 39

7,495 848,39 2 623,546 94 3,972 799 65 899501.S1 7 495,348 39

GRAI{D TOTAL 163 907 556 65 49 323 lA0 23

PERCENTAGE 63,33 1e. 17,353 ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE II LOT2.3 DUMAGUETE NORTH ROAD PROVTNCE OF NEGROS ORTENTAL, 1ST D|STR|CT ( REGTON Vil ) (Manluyod - La Libertad) DESIGN AND BUILT

SUMMARY OF COSTS (For lmplemontatlon, L = 45.842 km.)

EILL DESCRIPTION TOTAL COST ITEM PEFCENT AMOUNT

PART A FACILITIES FOR THE ENGINEER 2,60 16,98C,317.0i

PART B OTHER GENERAL REOUIREMENTS 0.36 2,350,503.27

PART C EARTHWORKS 34,641,682.2€

PART D SUEBASE AND BASE COURSE 2.84 18,792,862.3€

PART E SURFACE COURSE 85.07 555,5S1,',|47.01

PART F BRIDGE CONSTRUCTION

PART G DRAINAGE AND SLOPE PBOTECTION STRUCTURES

PART H MISCELLANEOUS STRUCTURES 2.83 18,465,050.0:

PART J MOBILIZATION AND DEMOBILIZATION 6,27 4 ,907 .42

SUB . TOTAL 100,00 6s3,096,469.4€

PART K DAYWORKS 3,265,482.35

PART L PROVISIONAL SUM '| 9,592 894.08

GRANO TOTAL 100.00 675,954,845.91 ADA lA 709s - PHI: PREPARING TtiE PHlLlPPltlES ROAD sEcToR IMPBOVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE N LOT 2.3 DUMAGUETE NORTH BOAD PROVTNCE OF NEGROS OR|ENTAL, rST DTSTRTCT ( AEGTOT{ V ) (Mlniuyod - lr Llbonrd)

SUMMARY OF COST ESTIMATE (For lmpl.h.nrdld, L. 5a,225 km)

DIFECTCOST cosTcot{PoNET ITEM oEscRtPTloll UNIT OUANNTY UNIT TOTAL uNtTcost TAXES cosT cosT

(1) t2) (3) (4) (5) (6) l7) (3) (e) (10) (11) o3) (14) (1s) ( 17)

FACILITIES FOB THE ENGINEEFI

,o;d. Comb'iod Figld Ofi; s; L.bq;rory |o. t! En9in6r oAFE 23 00 20,q99.!! 1q q0 l53.2,10 0q 6ra 240 00 ?q qq0.s9 'ovrd6 LN'ng Ou.466lo, se Enq,n6er or R€nlrl8a!'s 23 00 1q,q994 345,000 0o ro 00 ro 00 20 00 69,00000 49,6€0 00 ll8,640.0c 0.0c 40s03840 5s.q!169 463 680 00 20.160 0o po..l./M.rnran Comb,ned Fr4d Olfis L.bo'ltory lnd 23 00 117,96€.49 2713!2q4.44 10 o0 t0 00 542.65689 390,712 96 $3pq9q 3.079 2?5 38 437,s98 52 3 64€ 654 29 154 550 19 vi.g o!3n6r. ror trl6 EnginseE (schodlLoAI 100 _ 9?q19q 0a 529,49b Od r0 00 1o ot 105,3e3o0 76,246 56 142,t445a 402 395 62 212 343.5! 96,395 41 711 634 5€ 71r 634 55

4.r.1G) l! 1oo 1 377,649.4q 10 00 t0 00 20 0c 375,52994 270,341.43 645,911 43 1,492 670 70 252 356 09 373,53414 r 5?3 560 93 2 523.560 93 23 o0 11 304 35 260,00! 00 ro 00 20 0c 5?1000 00 14810S80 157 463.04 4.!qc1q 23 00 26,141.5e 602,176.42 10 00 t0 00 20 0c 120.435 2€ 86,713 40 2or,t!!.q! 290 188 07 421.199 Z9 97,638 33 809 325 10 35.143 05

45 00 90,r88.69 lo ot 20 o! a97,ao9.s€ 1 427,145:q3 3,120 224 06 I 047,563 6A 1 404,033 a5 tl itt ao q!!4.id 0'. Enqine.6 (2 ynib) &r.319) 'wid..nd M.int in Sury€y ln6tum6nq Eqqipm.n!&!t!c ;i.tan6 r2,24130 2qr .5lq 0q 1o@ 95,3432- 2s- r57 2s 3S.5:i3S2 16,45? 31 € Enq'no4 on !qE!@!tl&!e!q!qqL 'db'on ol SLtooy Pe6onnel {Scnedu 6 H) 23.q a6:/5142 1909 2!2.7r 10.00 10.00 20 0c !!L9q0 71 119,O17 2a 5,40960 1.53S.374 37 2ro,516 oO 1 754 299 96 7C,4]9! 'oqF$ PholograPhs 23 0o 4,824 33 111 051 6Z 10 0! 22,21033 r5 99r.214 36,2Ot J7 52,23S 70 79,104.32 l zplq 41 6,44924

TOTAL OF PAFT A 2,s26,832 90 r 819 319.69 4 346,152 58 6,324.227 23 L774 452 53 2 a7T,537 3l

OTHER GENERAL REOUIREMENTS

qe!'l !8. 1S9 qs! 866 36 9!s4q5.36 10 00 10.00 20 0c !11117 ?l 12:1,217 94 9 e22 7A 1.002 45r 22 138,037.35 1r5C 31127 1,1!0,!1! 2J L! 975 000.0c 75 000.00 3qr.ooo.0c 200,337 20 13,000.0! 2,se2 0! ?1.192.90

r 746,886.36 349,777 27 251,839 64 60l,516.91 226,6ff 1A 1,3/1765.74 242.060.39 2 35C' 503 27

EARTHWORK

t€hov.l ol ErstrqAc P.wmnl 134,se3 0! 1p5jr5r r 61 10.9q 1,654,919 99 528 2794 I 912.266 es 101(3)b i€movalol Er6lrg PCC P.v6m€nl 313!! 341,66144 416,19131 1995 233 95 254 355 50 935,20103 3 145 aao 4! 192p) SuDlu. Common Erc.vBDon qu.qr. 50,672 00 142 29 z,?19.39!.34 10 00 10 00 ,! s9 t l+z,oitjt 1 034,291 24 2,440,362 41 10147?.19 2,454,141.03 969C/ra25 gq 104(]) :hb8nlmort I'om Ro.4!etE evalion r6,391Q0 217.47 3-673,350 32 10 r0 Q9 20 00 523,9€2.45 1 253,632 51 3.qq3.!zt II 1,139,400 30 4 936 962 83 292 28 Qq(1) !Jbg,ad€ P,.p91!!9L 279.903 00 21.51 6020.260.05 20.09 1,2q4.0!2 0r 866,917 45 2.070.969 46 9,060 562 o€ 2 366,944 aq 909r 229 51 23 91 sPL 108 :,acl ano Se.!lErlt19 PCc o.v6m6rt) 3,000 00 548.98 I 646,934 24 10 00 ro 00 20 00 32e 386€! ?17.158 43 96,545 33 1,443 897 79 221 221 13 542,354 4 2,2 t3 479 62 737 A3

TOTAL OF PART C 25,77s,06122 5 155 012 24 3 711,606 32 4,466,62106 21,762191 9C 2 719615.47 r0,054,952 92 34,641 682 2€

SUSBASE ANO B,ASE COUFSE

asg'€ra!. qu!!!!9 qgyre. 2A 513 00 446 f4 lai73.ae2 06 10.00 20.00 !q$.502 36 4.174.2tj14 gssz,6so.lz 5 231 4asr!! apzi,s26 65 rs,65,6$ 3i -oi Aqgr€i.r. 8sa Cous 104,292.45 ?9-9!q 4s 15,01411 !!fz! c9

r3,942.744 51 2 796,556 9C 2,013 420 97 9,606,5666t 5 285 220 76 14,792 462 3€ DIFECTCOST INFECT ITET cosTcol|PoNET DESCntP-no UI{IT U|T NO. ocr tarr60l TOTAI UNIT COST FORAG LOCAL TAXES cosT coST 'O'AL (1) t2) (3) (4) (5) (6) (7) (3) 0o) (' 1) 03) (r4) (15) (:6) {r7)

z4qq9 l3!095!ss6 6e 30r(1) 3oc 19r301.24 2000 ?9qqQ.74 51,394 a3 25.635 30 ?ozl?L 432!2f9 1_0,oq _2,3 4,6!1!l ]llr\17 e2 3ro(1). _!!t !1. .11.S9! 0j 4!q 79 1790,632.57 1o 00 t0 o0 20 00 633,85r.09 1 991,977 61 5,33546415 r 168 693 90 1278,45213 T 7426141A 3r0(1)b 251,672.00 7930! r99 567,458.15 2000 40 301 797 8€ 263,245 513 4 3Lgit)a 3E 4r,105 o0 1,017!? 2a 5 q! q4j9,9?9 !!. !.! 10.oq 0a 034.364 27 1:11?!@ 0! I421,036 93 !!!5e 103 89 r,3640€ .{t!!' _ _qsQ q! q?Lla 3 757,389 61 10 o0 20 00 I 295,942 03 3,044.353 A5 3i1(r)c 69.m. 1a2,563.0C 9,1,al 135 12L9?a.07 10 00 10.00 2A OA 27,024,394.81 r9 457,564.27 r5,171,656 0a 22145,441.24 $ 731,Aa5 A0 rar 50q 933 rs r,273 65 sPL312 !! 6,052 oC 85 26 !15,96!.s8 10.00 r0.00 20 00 103,192.72 f4,294.76 177,49t.47 424.924 T0 140,645.61 127,AAA.74 6s14! qq 114 58 sPL 313 3,000.04 993.02 2.97907,r.10 10.00 10.0! 20 o0 59!-q1!q? 428,986.67 1,024,80149 2.67q,.4Sq.38 677,615.64 4,003.475 59 r,334 63 5aC 64 20.00 24o,532.15 550,717 r1 375,q0L6! 2 r51 633 95 7t7 21

rri3,386 270.r0 a2,6tt ,254 02 19.521 622.49 r42.204,876.91 365,441,27124 82,260,r06.91 r1€,934,85237 555 591 147 ot

MISCELLANEOUS STBUCTUFES

6050) 6q![]q 2920A ?.167 9q 632 450 43 10.0q ?9!e 91.t30.4€ ?17 7qq!! 4tq??o 91 2 912 A5 605(2) ?ggldory Siq.s 5,971 72 7413f9.57 20.00 r52!31!!1 r 10 070.66 262 946.57 ?! tt?? 509.66103 i39 512 36 8 025 99 117.0! 1s,99e.4 643p55?Q !307,434 A2 317123 16 2,515,92027 21 503 59 012(11 0i6qq'j 4I!6moplastc P.wm6nt M{[r]$. (wrre) !!un 12,qlqo! 4.253 232 54 r0.00 20.00 2 839 1r2.00 5 272!64 t 74 2.5t5 011 36 11,092 344 54 874.86 612\2) rnecio.i2edThemod&ii.Pawm.nlM.rkino!, fi.llowl 6563C l.!14 7?9 63 10 00 to00 ?0.0! !q2.!199! 4412107 521 065 99 e95.q13 s! 599,450 82 47Q ?32.23 aa2 06

TOTAL OF PAFT H 13,73447653 r,971496 22 4.72€ 173.53 6,539,804.r r 3.761 755 76

MOBILIZATION AND DEMOBILIZATION

400 obili2.rion and Dohobiliz.iion (i % ol civil wo c6tl 4,66€,42992 4,66S,d2992 10.00 1000 933,765S3 672,3rr 51 1,606 077.49 993 647 47 1.353 0s3 da 6,2ta got ai

4,654,42992 4,054,135.2€ 1,353 053 05

sPL 900 1vYo4 1142,914.4, 1,730,705 64 3Sr a57.aa 3 ?65 432 35

6PL roo( 19.592.89,10€ 10,341,233 a6 2,341,14f 29 19.5928S4 00

19,592 S94.0€ 6,457,512.93 10,33,r,233 86 2,351 14f.29 19.59? 394 o8

GFAiIO TOTAI 508 793 2,r9 56 117 t11243 22 r r7 B39 203 29 67s 95. e45 9!

PEFCENTAGE 17. ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE II LOT2,4 DUMAGUETE NORTH ROAD PROVINCE OF NEGROS ORIENTAL, lST DISTRICT, REGION VII (La Llbertad 0 Vallehermoso) DESIGN AND BUILT

SUMMARY OF COSTS (For lmplementatlon, L = 39.756 km.)

BILL DESCRIPTION TOTAL COST lTEll PERCENT AMOUNT

PART A FACILITIES FOR THE ENGINEER 3.18 16,980,317.07

PART B OTHER GENEFAL REQUIREMENTS 0.44 2,352,458 .12

PART C EARTHWORKS 6.04 32,219,389.4:

PART D SUBBASE AND BASE COURSE 21,157,642.38

PART E SURFACE COURSE 82.61 440 ,495 ,103.7 4

PART F BRIDGE CONSTRUCTION

PART G DRAINAGE AND SLOPE PROTECTION STRUCTURES

PART H MISCELLANEOUS STRUCTURES 2.41 14,957 ,707 .Oa

PART J MOBILIZATION ANO DEMOBILIZATION 0.95 5,086,298.8:

SUA . TOTAL 100.00 533,250,956.61

PART K DAYWORKS 2,666,254.7e

PART L PROVISIONAL SUM 15,997 524.70

GRAND TOTAL 100.00 551,914,740.1( ADA TA 7093 - PHIi PREPARING THE PIIILIPPINES ROAD SECTOR IMPBOVEHET{T PROJECT ASSET PRESERVATION UNOER TRANCHE 1 CONTRACI PACKACE II LOT 2.4 OUMAGUETE NORTH ROAD PROVINCE OF NEGROS ORIENTAL,'IST OISTBICT. REGION VII (Manluyod - L. Ltbcrtrd)

SUMMARY OF COST ESTIMATE (Fq lmpl.m..i.llon, L - 3t,756 km)

OIRECTCOST ITEII COSTCOMPONET DESCRIPNON UNIT OUANNTY IOIAI NO. ocM TOTAL UNIICOST TOTAL FOFAG LOCAL IAXES cosT cosT 16l+{10}

(1) (21 (3) (5) {6) t7) (3) (el oo) (1rJ (r2) (13) (17)

FACILITIES FOF THE ENCINEEB

a r/"l ?rov@. comb nod Fio! otic. .ni Lato;iot lor di6 Edia;6. on F;; 23 0! 10 0o 10 o0 2000 t54,240 0o Livinl lor $6 Engjn69, oq R9!q!]q!9!9 23 r0 q9.aq! 0O 'rovid. ou.^./! Qq I .00 o0 ?0 0q s! rl3,63O q0! 55.64160 Jr€raG/Mlintan Combh.d F.ld Offic. L.bor.ro"y.rd E9 23 aa r0 00 ro 00 20 00 542 656 a9 390,7r2 96 933,369 85 129 430 4C 437,598 52 3 646 654.29 153 550.19 q!.li!ru]gr -ivinA lr. €ngin€q. Lsch€lol. A) - 529,490 00 20 00 ?6,246 56 zrr egr 6e 4.,8 to' d''€ Err'^oo.6 (scrt6dul6q Le c) 'id. and MrintlinL$orutory [email protected] €quiphont sd App{atJ. ( sch. 10c r,877 649 50 20 0c 375,52990 270,34r.53 I,492 670 70 252 356.09 2.52i 560 93 11 'id€ and Maint in communi€rign FCct!qq!91!9!lSol !9 104.35 J6!poll00 r0.00 r0 00 20 0c 52,000 00 r48 r08 80 r57 463.04 43,868 16 15 193 04 ,a I 1(lt) 'id. supplio. and con.omabl6 slorgs !91 Ec!! Q!!99,!!&@ry !!4 ?oiqt !q 6!)2!176.42 10.00 10 00 20 0c 120,435 2€ 207,14€ 69 290,r80 07 421 496 70 97,638 33 609 325 1q 9!.1q3!! !g OL.n.'r tr th. Erg'n..r {Sch€dJr. F a Fl /tWD 4T?LAJ 'id6, Op.r6r6 lnd Mainr.in Pick-up Typ€, Ooubl€ C.{ C.b S.l 46.0C eo 13riaa r0.00 r0 00 20 0c 329135 9! f ait.14s.e3 3.i20.22s oa 1,0;7 563 68 1 408,033 85 121213160 cl6lor th. EnFn.6r! {2 un !r gufEt f.i,qer 'id€ and MdnLin ln.vum6nlt Eaoipm6nt tor rh6 Bbtanca t! 23.00 \22!1]9 28r,55oOO 10.00 10 00 20 oc 56,310 oa 40,543 20 96,853 20 2831147 ?E sq,7r2 r0 :nth..r on R€.r.lbsE (Sch€du'. G) 4.r (b) i!io. ol Sud.y P.6dns (Sch€dll€!!L 23 o0 56191-42 ro.oo r0 00 20 oc 261,056 54 147,960.71 5,40960 1,539 374 37 ?r0116.00 1,75.,299 q6 l9 ?7!4 23 00 4,82433 11r,051 6Z 1o o0 lo 00 20 oc ?q.?o1fl !4?!ql! 7910a32

TOTAL OF PAFiT A 2.526,832e0 6.324.227 .23 2 477,537 31

OTHER GENEBAL BEAUIBEMENTS

9!!:1 dructon 5af6v and H€altr 1.0! 857,340.86 457 340 36 10.00 10 00 ?s 0! 171.46511 l?3r457.08 ?94.925 26 t0 506 8s 1,AA3 4A/.29 138,27193 1,rtlr 266 12 1 152 2j6.1? Ionm€.tal and Social S.l.Ouards 10c 20 00 175 000 o! 126,000 00 301,000 00 204 367 2A 326 492 8o I41,120 00 r4,000.00 20 00 B 467.24 2, 19299

1 750,340.a6 350 06417 252,O49 AA 602,11126 r 442 40r.35 242,294 97

/!l or Exetng ,1qlqy9r91! 156 354 0C 3!.91 5,619,34€.06 20.00 6,435 539 45 3,205 4r2 06 1,167,678 10 io 62 r68 i45 401,681 12714135 450 r 35 421 l9 4tlql Exi{,!g Pcc P.ved6nt ?] q' - !1!.!9 09 00 0q 2000 233 535 64 26 98r 96r it 250 83 55, .359 'to2t2l 37,7!9:q! 142 29 r,046,321 24 l.!!3.34 !9 191 4 !O9nr tm Fo.dw.y Exdvalol ?1111 4.1q1l!q?Z l arsg r0 00 320 31r ?5 !s !?t !! La3r.a24 57 292 2A ld6 Pr.p.r.tio'l 242,217 0a 2151 20 00 r,2r4.005 09 ?.033,090 r7 3 000,435 9€ 3 r 5!.!29,91 ?9,91 ltL 103 sd S{r (Etj!!nq PCC P.v.n.nl) 3?9.13q9! 237,154.53 555,545 3a 1l43!!1ll 221 221.13

TOTAL OF PAFT C 23 972,759 99 12,674,92157

SUBAASE ANO BASE COOFSE

?s9 lal. subbB.6 cour; 32,199 0C 1a,672,62i 3e r0 0o 2000 3.r 1,5?! q! 1991,333 11 r4,530 955 5C L9q5 725.81 7 665,637 7€ 21 06" oo8 {9 201 late Bage Co!!!9 q9.992!! 10 00 10 00 20oo 1q 9q9l! 19,036 49 23,976 07 36 432.32 !q9r 1 17 21,329 96

1a,742,323 2A 2,256 494 54 5,415 359 la 14 617 349.32 a02163704 1 ,AA7 417 72 21 r5i,632 38 OIRECT COST cosT coltPoNEr ITEX IARX I] DESCRIPNON UNIT TOIAI UNIT NO. oct TOTAL cosT cosT UNITCOST TOTAL FOREIGI{ LOCAL TAXES

(1) t2) (3) (4) (5) (6) t7) (3) (s) (10) (11) 02) (13) {14) (rs) (16) (17)

SURFACE COUFSE

!q t!?1!4 13524,351.75 te qs t0 00 ?9.90 2 704 a7o 35 4$q2,37r 00 7.536 721.q3 6311707.53 4,2!q?9q6! 14176,724t6 !9!r! 9!@?,€ r090 . t4.342 76 34!263 25 6q q?.!! ?l 4a.2O2.fL l Q-oq l0 00 1,060 rt59 30 763,530.79 113?!,949 99 5,2i4 756 99 r 020,302.62 891,224 a3 7 t2f,236 49 221127 qqp59.828 ur 496.79 l aas 10 00 ?0.00 A'f $ 15,932,021:3! 8l 100,841 920 32 22 084 675.63 ?4. !69.1!9J! 118-696.866 05 667.69 47.5!4!! r$,q! 17.q15.602 67 10 o0 ro 0o 2O-0! lEq3 r 20 53 5,ru5,446 78 13,008,567 32 34,653 437 8{ lfa5p34 5s 4,334.747 55 50 824,r69 99 r 065 s5 3t I{l)a 627 9a 3.767349.61 10 00 10.00 20.00 . 51?.!!!Jq 3,044.353 A6 600 974 69 r 414,043 09 5,064 371.64 q,8.9q t c.m.nr cq!q9!ae.!tujr. Plnn,z3oqrn t'r 160,033 0C 947.A1 !J1.1?]E4!4 !!,?15.504 16 21,444,763.43 !!r.194,2ff.r9 176,703.013 9! 34,439 212.22 32 {4o.qlq91 2!3 9?1 791 99 1 273 Aa s ol Crlck! lnd Joi.t . (Exa.ijnc PCCP) I rn. 89-2q 293,533.15 10.00 200c 53,706 63 42,264.77 100,975 4C 241,738 60 80,0r3.69 72,756.21 39,r 503.55 114 53 n3 o!r9q9l!3 993.02 ?!l!!1Ltu t0 00 2A 0C .4?!,995.61 1,024,401.4S 2,670.49639 677 615 64 4,003 475 59 r,?31q3 xil. F.vinq Fabnc wirh GIE$ 8€i.lorc.m€nl 533.64 1 600,921 94 lo.oo 320. 234,532 75 1,463.1!0 6! 37s,501ql 2,15i €38 95 717 21

MISCELLANEOUS SIFUCTURES

qot0r Y!'a'!.s qhlq !!. s ita.n-1 701/4,6! 20.q 100,s4:Lg! 72,392 35 '1f2.91f.29 250,422 73 33r.964 51 675 66r 97 7,03A 15 6q5{1)b )h€vron Sien. 204.00 2,167 39 19.00 10.00 20.q! 90,r5S.5l ?13,4r s 53 295,417 63 2,912.45 5 9f1.72 !1ej9a.d2 10:0q 20 0c 79113 29 166,992 45 27r!7999! 356.314 90 140,274.41 4.025 99 6qsGI 34.00 15,e.991q 2q!q ?9q7e4 e0 193 532 33 462,327 23 $4,994 23 2?7,979:18 I 406 3or 73 21,503 59 612(1) 650.94 7.107 543.10 !0.0q r0.0q 20.oc 1421.5i6.62 1 o-2149Le2 2 445 008.59 4540,7919! 2,794,24466 2 217,564.34 9,55:591 69 37446 61212) 1,Z9qe! 656.30 1,U4 768 65 10.00 20.0c 234,953.73 169 166.6! 744,394.33 464,912 03 365,0!?.64 1,574,449.06 842 0€

TOTAL OF PAAT H 11,129,416.31 2,225,849.26 1602,611.47 3,828,460 73 6,659,493 72 5.191,915 96 3 095,897.37 i4,95 707.05

MOBILIZATION AND OEMOBILIZATION

lob'l'z.Don.nd bcmob izadd trlb o-;iwo Cos0 l 3 7Ss 936.63 757,147 3a sasiaBi 3 Af32r- 1,!6Qp!?l! 5,044.29443

3 413,322 21 5 oaa 294 a3

st i-.i ?,e99?!3.{! 933,iS91t ti9,95057 2.66t 25{ 7S

sFiibaa 158t7528 70 4,478 590 2l r e1e,lq141 1!,99's23 70

15 997,524.70 5,599.135 04 8.478 690 21 15,9S7 524.70

PENCEITAGE 17. ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE III LOT 3.1 DIPOLOG - OROOUIETA CITY ROAD PROVTNCE OF ZAMBOANGA DEL NORTE ( REGTON tX ) SUMMARY OF COSTS (For lmplementatlon, L = 20.682 km.)

BILL DESCRIPTION TOTAL COST ITEM PERCENT AMOUNT

PART A FACILITIES FOR THE ENGINEER 7.26 1 1 ,324 ,320 .83

PART B OTHER GENEBAL REOUIREMENTS 0.65 1,0 t7,754.61

PART C EARTHWORKS 3.46 5,401,742.87

PART D SUBBASE AND BASE COURSE 0.00

PART E SURFACE COURSE 42,74 129,038,306.7C

PART F BBIDGE CONSTRUCTION

PART G DRAINAGE AND SLOPE PROTECTION STRUCTURES

PART H MISCELLANEOUS STRUCTURES 4.97 7,757,299,16

PART J MOBILIZATION AND DEMOBILIZATION 0.91 1 ,421 ,973 .49

SUB . TOTAL 100.00 155,961,397.66

PART K DAYWORKS 779,806.9S

PART L PROVISIONAL SUM 4,678,841.93

GRAND TOTAL 100.00 161,420,046.5€

t od.Ld 27 F.t lld 2OlO ADB TA 7093. PHI: PFEPARING THE PHIUPPINES ROAO SECTOR IIIPROVEMENT PFOJECT ASSET PRESERVATION UIDER TRANC}IE 1 CONTRACT PACKAGE III LOT 3.I DIPOLOC. OROOUIETA CITY ROAD PROVIiICE OF ZAMBOAT{GA DEL NORTE ( REGION IX )

SUMIiIARY OF COST ESTIMATE (For Inpl.h.nt tlon, I, 2o.6a2 tn)

.nd +p!!!4993 ie, L!bot.!9ry!!!!Y!ns (Sch€dula B t C)

26,181

45,697.03

TOTAL OF PAFT A 5,659.378 2,r93,369 07

OTHEF GENEML FEOLJIFEMENTS

45 312 21 PccP.y9!!.!!L ,

574 754.1 504,73062

3 106,054 57

wilh Gl.!. F.lnioG€m€hr II{ONRECY t,|FECr COST COAT COIPONET ITET oEacitmol ultat ou^ltltTY lIFK TOTAL UNIT l{o. ocr l,lhsl coST UNtl COST TOTAL FOnAOX LOCAL TAES cost 'OTAL (1) (2) (3) (4) (s) (6) (7) (8) (e) (r0) (11) (12) (13) 04) 05) 06) (17)

o,061.1! z!.919!l? !! -la, 34.5:t0.25 7!01..34 230.@ zl,@!4 7r,064 & 3Xt. !!q,70o.35 €!3.346.?9 2-991!E Fr.L!o.v ag! !!!1 12,066. 1.. !9,e{.9! !9q.q?3!1 15,947. 144,494.42 5ae. 311,5043! t.!u9,1€9.31 q66.5? 67 10.00 20,00 121,443. 87,r(l9.62 208,383.53 361.959 2C 167,129.1t qt9iqrl 6137!

TOTAI OF PAFT H 5 771,749.41 1 154p5e.99 031 139.2C 3,r(t7,A3g 5l 2,701,595,36 1 617,664 2!

MOEILIZATION ANO DEMOBIUZATION

Mohlll2r ,on li D.mHlhrt].. 6 a 6l CMr wdr cdl r,o5a,o15.t9 1o.00 112,3E:9! 353957.5C 24eE2t.t9

r ,056.01 5,9! g€9,3o3.6r 242,A0r.fO 21e,2r2.\a

2f2lp. 413,&7.7 43.576.9! 779,805.99

2721Xt2.15

93 /161.0g 't,673,341 2.479,7a6.22 561 TOTAL OF PAFT L 4,676,4a1 .9C r,637 59a.68 2,479.786.4 54r,461.03 4,678.841.93

r21,501,355.51

PENCE {TACE ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE III LOT 3.2 BUTUAN . CAGAYAN DE ORO CITY - ILIGAN ROAD PROVINCE OF MTSAMTS ORTENTAL ( REGTON X )

SUMMARY OF COSTS (For lmplementatlon, L = 19.693 km)

AILL oEscRrPno TOTAL COST ITEM PERCENT AMOUNT

PART A FACILITIES FOR THE ENGINEER 3.06 12,849,441,0C

PART B OTHER GENERAL REOUIREMENTS 0.33 1,371,567.1 't

PART C EARTHWORKS 1.29 5,41 1,763.94

PART D SUBBASE AND BASE COURSE 0.00

PART E SURFACE COURSE 91.72

PART F BRIDGE CONSTRUCTION

PART G DRAINAGE AND SLOPE PROTECTION STRUCTURES

PART H MISCELLANEOUS STRUCTURES z.oc 1 1 ,129,584,43

PART J MOBILIZATION AND OEMOBILIZATION 0.96 4,O15,O27.11

SUB . TOTAL 100,00 42O,142t752,55

PART K DAYWORKS 2,100 ,7 13.7e

PART L PROVISIOML SUM 12,604 242.54

GRAND TOTAL rq).00 434,447,74a.93 ADg TA 7093 . PHII PREPARING THE PHILIPPINES ROAD SECTOF IMPROVEMENT PROJECT ASSET PRESERVATION UNOER TRANCHE 1 CONTRACT PACKAGE III LOT 3.2 AUTUAi.I - CAGAYAN DE ORO CITY. ILIGAN ROAO PROVINCE OF IIISAMIS ORIENTAL ( REGION X )

SUMMARY OF COST ESTIMATE (For lmFl.m..r.don, L: 19.35t tn)

INDIBECT OIBECTCOST ITEI' COSTCOMPONET DESCFIPnON UNIT OUANTTY TOTAL UNIT lio. ocil PROFI] 12?.ol TOTAL UNITCOST TOTAL FOFEIGN TAXES cosT cosT

(1) t2) (3) (5) (6) (7) (3) (10) (11) 02) (13) {1s) (16) (17)

FACILITIES FOR THE ENGINEER j9 4,1,1{!L ti,mbn6d nold gqlc dd Labdatdi li' tl6 Enqin6d 9I-F?n!41 q 13.0c 260,000 90 gq 10.00 20 00 9L4S 99 o o0 41,932 a0 26,440.00 A.1 1(b) jvi4 Auan.ro |ot tho Enfn@r on Rant l Ba. !19, t30c 10.00 r9.00 20 0c 24,040.00 230 630.4C 20,160.00 4,1.1&L Mdnt h Conbnod Fiold Off€, L.loqEry &d 1r1 914.q1 l,rtl{339 94 10 0o ro 0o 20 0c 290,977 99 ?09,504.15 73,34e40 234,644.65 r.e9!.?4ro! !50.{13.24 {t G lor tr. E.snooE (SchoduloA) .qqpnont Fuhrtu,.dFr([email protected] apdios t, 1.00 529490.04 lq0q 10.00 29 0q t05.!e6 q0 7624655 402,395 62 212 343.53 7r 1,634.56 )nbi.6d FGld Olfrc.. L.bor.Lory sd -'vho ror lt6 Eng,^666 (SchsdJbs A & Cr !4!4!DFj!1.!oratory T6line Eqoipm€nl.nd App.r.l!. ( s.h. D ) 100 1,322,q19!9 rq0o 19.0q 20.0c 270,381 53 64591t43 1 492,674 f0 2 523.560.93 2 523.560 93 4.1,!! 13 !76!? 10.00 ?0 0c 94000100 9e!€0.00 105,712 AO 93,3s4?.4 19352 96 ?2q,43!!Q 17,575 33 4.1.1Lh) 26,14154 340 360 5€ 20.0c 64.O72.12 .4e-o_l l 9? 1q4,019 35 234,23439 55 166.88 457,444.6? 35,133 05

41.2{31 '.1€ &d M.i.t io 4wD Pick-up Typ.,qq !1. cr.w c&&ryE! 9E3100e.c 10 o0 t0 00 ?q!! 1e6_q01.06 523 297 3a 1,250 099.23 2 886,063 75 676,!q4! 4,3!1.ro!: ! ist8sb 33 . Engi^d. {2 un'EI Al3l5l ,l.jnt i. s!to6y In*u,nsntt EqliFnent bl $o a..irr.nc€ &' r3 00 2r,657j! 2S1 a5o OC 10.00 1q,00 40 543 20 96853. !fu.157ts 34,533 a2 56 7t2 rC 378,403.20 29,107 94 l d Fcnt b!!.. 1 !9!19{ul99t 't2t,f46.16 !o. l3 00 5ao6zaa 10 00 !!0,97564 i.as7.60 r !rL4r!!!!! !3to42 rs 62,764 33 10 0Q 20.0c r 2.553 67 e.o$ q1 21592.31 2C 526.22

TOTAI OF PAFT A 9,560,595 98 1 91211920 1 ,376,725.52 3,284 S45 02 5 440 045 71 4 631,371 76 2 373,023.53

OTHEB GENEBALAEOUIREMENTS

aon.vudi;; s.t6ty q4!!!!L 100 497,4t124 497,511 24 10 oo 20.0c 99 502 25 71,ui.62 1t.t{!,!/ 6559.49 531,75L!! !Q-23861 n68 655 r1 66S 65511 SPL.? and Socill Srf.olards 505,000.!q 1o 00 10 00 20.00 101 000 o0 461,324.00 67472944 =nvnonm6ntal 1?11099 ?r9i9ct Billb..d 100 14,000 0c 18,090.0c 10 o0 10 00 ?.5e2.!! 6.192 00 aaGi.2c 12,A21f6 2,903 04 241e2Q9 2\191AA

TOTAI OF PAFI-T B 244 102 25 146,953 62 351,055 a7 151 072 29

Lo!Q9 omoval ol Exiltino AC P.vrm6ni q?z!,!! 34.26 2al153g 63 10 o0 10 o0 56706.13 4!!?! !1 q4.!34.s4 237,709 49 3r p00 6r r r r,555 06 . e!plat6 46 05 r050I c!9!cd! el!p!!g!![ 14.96t.00 !94 ll24,947.25 1o gQ 161,992.4C 96pq13! 119,325.29 1.511 929.11 27 5l 10 00 860.803 50

4 026,610 07 aja i22 01 579,33135 1,345,153 A6 3,442 455.07 512 454.93 INDIFEC OIRECT COST ITETI coslcotPoNET DESCFIPnON ut' T OUA{T|TY UNIT lio. 0cf TOTAL UNTTCOST TOIAL FOREIGN LOCAL TAXES cosT cosT

tr, (2) (3) (4) (5) (6) (7) (3) {e) 00) o1) lt2l (15) {i7)

SUEFACE COURSE

9q0 8,246.q0 ql?.9! 5-41 9,328.91 10.00 to.0o 7s1,563,36 1745,iigr4 2,449 432.45 1 640 620.27 850 69 391(U Cul.b&k 1.00 1o.oo lMC.70 tuPh.l 1q,1s?l! 43193.73 -19,9q 6,939.90 16,578.64 47.286.63 I224 A2 a 254 93 64 JT2 38 64,77238 302(?) Emullili.d A!ph.lt, SS-l 46!530.?2 20 00 467,322.03 1 491,793.89 4,260,405 23 3401q1 10 3iS(1)q 39,038.00 471.45 Jq194 576.1a 20 00 3,680,915-4 6 331,r74.18 1Zq0!?19 ?! 3,706 319 91 24 715.74O 27 633 63 160,05900 10.00 2! qe 11193!91!! 21,264 2e3 27 26 29\9?9:3? 96!.3? 3!.3?3,565.5. 10.00 17,664,713.13 3r 340,!77 36 1?L!! 4,213.95103 342.-79q?1 93,142 00 16!?.92s 5e 1000 20.00 1,526,535.i,1 ?,6?!p4!!! !,15qq1q 23 L3t!.19?.9! 1!0 09 3rO0O.O0 2,635,7015e 20 oa 567,t10 32 1q€j41, 975 481 3,1 2.543,631 6!q,qq!q as!,l c?!! L2j0 !s SPL ctera Boiitorconcq qq.qr, 65i3600 t3 01 a5 25t 241 f5 10 00 5 076 r85 1212644196 6832,632.12 4,274.930.73 47 .37? ,726 71 716 37

246 727 ,209 a3 57 3215 44181 41,283,71810 94.634.159 9t 261,805,71710 59 511,243 fE 6rr,Ol1.408 09 385,36r 364.9{

MISCELLANEOI.]S STRUCTUEES

6qq{[ 99.!! 5 205 37 510,175.24 10?,0!5 05 13.iq!.?q 175,5!0?8 3331334.61 6!5 67! 53 64,90 15,972.26 j,921,124.6e 10 00 r0.00 20 oc 147,200.36 351,645 29 715 649 54 t72 6A9 62 1,3731469 93 2146672 6,0250C 539.0? 3 850114.08 10.00 10.00 ?q sq /70,022.42 554,416.43 '| 324,439.24 2,429p11.22 1,554 S48.17 1 190 427 93 5,174,553 32 85885 2.898 426 79 10.00 20 0c 529.635 36 997,054.41 1 92L69),gq I,177 944 A5 3,495.445 60 46605

TOTAL OF PART H 8,280 940.80 1,656,188.16 1 ro2 455 47 2 848,5:13 63 4 991,836 2r 3,7A7 33t 17 2,3s0 367 0,4 1r i29,544 43

MOgILI?jTION ANO O€MOBILIZATION

r00 2,990,aa7 60 r0.00 10.00 20.0c !9q.969.s2 2r30,6ro 05 1,026 679.5? 2,7ot,Ni ae 638,4210 30 94 7849 lpl9!o27 1f

2,990,347 60 2,702,4O4.54 677,1A2 29

2 1oo t1a 76 1,113,378 29 252,085 65 2, iQQ 713.76

9€qq.?99 77 1,s12.513 91 12,641242 5a

12,604,242.54 1,5r2,513 9r

PERCENTAOE ADB TA 7o9il - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE III LOT 3.3 BUTUAN . CAGAYAN DE ORO CITY. ILIGAN ROAD PROVTNCE OF AGUSAN DEL NORTE ( REGTON Xill ) OESIGN AND BUILT

SUMMARY OF COSTS (For lmplementatlon, L= 16.421 km.)

AILL DESCRIPT|ON TOTAL COST ITElI PEFCENT AMOUNT

PART A FACILITIES FOR THE ENGINEER 7.0s 12,457,165.1S

PART B OTHER GENERAL REQUIREMENTS o.7 4 1,31s,946.75

PART C EARTHWORKS 4.16 7,354,008.93

PART D SUBBASE AND BASE COURSE 1.20 2,120,1 93.55

PART E SURFACE COURSE 82.06 144,979,875.05

PART F BRIDGE CONSTRUCTION

PART G DRAINAGE AND SLOPE PROTECTION STRUCTURES

PART H MISCELLANEOUS STRUCTURES 3.86 6,426,347.24

PART J MOBILIZATION AND DEMOBILIZATION 0.91 1,612,404.25

SUB . TOTAL 100.00 176,666,340.92

PART K DAYWORKS 883,331.70

PART L PROVISIONAL SUM 5,299,990,23

GRAND TOTAL 100.00 182,849,662.45

uodal€d 27 F.bw mr 0 AOB TA 7093 - PHI: PREPARING THE PHILIPPINES AOAD SECTOR IMPROVEMENT PFOJECT ASSST PRESERVATION UNDER TRATICHE 1 CONTRACT PACKAGE III LOT 3.3 BUIUAII. CAGAYAN OE OFO CITY. ILIGAN ROAD PROVII{CE OF AGUSAN DEL NORTE I REGION XIII)

SUMMARY OF COST ESTIMATE (For tmpt.n.d. on, L: 16241 rn)

otFEct cosT IAFK cosTcoLPoNEr I'EI' OESCFIPNON UNIT TOTAL UI{IT t{o. TOTAL cosT cosT UNITCO9T TOTAL FOAAGN LOCA! TA)(ES

(r) t2) (3) (5) (6) (7) (3) (s) (10) (11) (12) :16) (17)

FACILITIES FOF THE ENGINE€R

A 1.1(.) tdia€ coDbin.d Fi.ld otiile !!q L.bdltory to, $. Errfier q F.nd! 1?!9 20 090 00 ?10.!q!.9! 10.00 48,000.00 32,q500c 0gQ 243,452 a9 rwidouvi^9 ouan9lqb4lqElgl9or on F6^t4!4!9 12 0q 15,000 00 13!,!@ q! 1q,00 10 00 25,920.00 61 920 00 s!s 212,349 60 29 030 4C 20.16q!! l1lic) )p6r.l./V..r.'n Conbin.d Fiold Otico, Labor.lory dd !? s9 111,914 61 r,3.1?lz5 33 10 00 10 00 ?6859507 193.334 45 46r 9q!s1 1 520,626 19 ?1€,qes 0€ r €04 954 a5 'Mntqgarc'! lor the E.gheeB {scnedul€A) 4.1.1(q) urni6r Eqlrpmenr, FurnrMes/F nJ'.. ed apd'u$ 9?9lC!qe 52q490 00 r0 00 761246 5! 1!?t!156 402 344.62 tr2,343 s3 96 e95 41 711 634 5a r tl6comb'n€d Fi.ld OFce Labor.lory..q Liu.q rudl.6 ror tho Enqinc.E {scnsdul.. I49L 4.r.1{c) 1.0€ rt77,6,1050 1 37t 640 aO 10 oo 20 0c 375.5?990 270,36153 1,492,570 70 252 356 09 378,534 r4 2!5231560 93 ,f.r.1{r) l?.!! r6r,9qo oo 1qlq 2- oc 32,?0q,0! 5!!9!400 r0r 539 20 r3,032 O! 41 r(hi 12.9! ?6,181.56 1! 00 10 00 62.8353C 45,241.1A 104,07753 14?t9 5a 35,r4405

Ar 2(.1 24"aC 119t!!.29 9F9Ur1?s.60 717 a,ta- L29qsi2 5a 2,367 310.0! r 313,603 60 2AO,S19 26

Ar3(.) 12 0C 4,462 5A ?8ll!!!! !-oa 10 00 20.00 56 310.0! 40,543.20 96.S53 20 23.3,157.2e 3A $3 82 !q71? to a7B.403 20 31,533 6C

i29! 53,067s4 696.8r0 67 10 oq ?qq9 13936r.1q to!J40.74 23e,4231 ?,94!o 821,309 51 112 361 62 916j r 3 s4 ft.o4iia 4 1.4 t2 0c 4,828.33 57,940.00 r0 00 1O Oq 20.00 11 588 0! cl!! 39 19,9313€ 27 254.q 4t,271.q? 7l,a?136 6.44923

TOTAL OF PART A 9 264,724 10 1 453 744 a2 1,334,695.27 3,144,44109 5,796 290.32 4,334 227 59 2,330 647 2A 12 457,r65 19

OTHEF GENEFAL FEOUlFEMENTS

ro!!q!qi!!l salgry 6! l!94r' l! 10! a55,r27.01 !!9,rzz.os 10 00 l ooo tt1L24!1 qs.qB2 30 15CBO7 71 s34 769.?q 73,564 l7 613.034./5 6r3,034 4 9P1.2 ntrmn€nlrl Md Seisl Sal€durd8 1.0c 505.000 00 50i!!q.gQ 10 00 10 00 10100000 72,120 0A 173,724 0A 13s.919!9 461 328 oO 674 720 00 SPL.3 rcFct 8'!lboard r0c r8,000 00 18,qoq.q! 10 00 10 00 20 0c 3,qqq.00 2.592 00 6,192 00 gNq,4 12 421.76 2,903 04 z1.r e?.00 24,t92 0A

979,127.05 195 825.41 r40,994 30 336.a19 71 149 095.15 1,004 937.99 157,913 61 1 315.946 75

EAATHWOFK

101(3). H6nda or E! !^g ruL F.l€N!! 7,4419! 297 1r 2211250.U i0.00 20 00 442?E9,9 3r8.420.05 760.67012 2,?4p92!9 3r r,973 7C r,094,38910 j.000 1021?I g!!Plu. codmon Eravauo! 0c 13!?lgle 10.00 26,643.19 19,16i'.46 45,A2f 16 112 349.1q r3,460 q 52173610 119 95 104(r). Enbdrmlnl lrom Ro.dw.y Er@vaton !!,!r', !a!! q! 205 a3 20s_!?q9! 19 00 41,15!:ll 29,634.92 70f919! r70 633!? €0,46312 i19p2j,e2 27663 105(1) Suhg,.d. Pr€ea,quon .q.q- 65 992 0C 1,350,558 65 r000 10 00 ?9.00 2701114 ,164.592 25 1 13?t99!! iaa,lso 3e 670,610 83 I ar5.r5r r0 21 51 sPL 10! [email protected] S€.r {Ex'.0.q PCC P.v€n.!]l 523 63 1,s79!q2932 10 00 !9q 314175.q! ?26,206.62 540,342 4€ 1311942.?!) 216,?97 a] !16,44210 74375

TOTAL OF PAFT C 5,47r.732 83 1 094 346 57 737,929 53 1,442,276 09 5 425 427 52 747 894 0€ 2,414,64127

SUBBASE AND BASE COUFSE

2oo asrres4gj@tse cou'.. !q?9qn. n'q] 45453 1-577,!?1!9 1o 0o 31a 504.$ 227,163 59 !1?i9C5' 1270,623 4 724,369 r€ 67asgo.so 2,r20 r93 55

1,577.524 96 315 504.9S 227,163 59 542 664.5! 724,36914 671.390 A0 2 i20 r93 55 DIFECTCOST COSTCOMPONET ITEM UNIT DESCRIPTION UIITT OUANTfi NO, octl TOTAL UNITCOST FOFEIGN LOCAL TAXES cosT cosT

(1) t2l (3) (41 (5) (6) 11) (3) (e) (10) 01) (12) (r4) (17)

SUBFACE COUFSE

q!L 7,31900 632,95 _4,632,531.65 10.99 20.0c e29,q!!!3 jgzB9r 76 3 220,564 & 2 779,2s?93 !e31 62i 42 450.69 30?l?L a!!9 _!94! 16 610 22 2.235 259.!0 10.00 447,650 0Q 322 304 05 769958.14 2,19!4t9]! 551,096 53 4J7 lA5 Aa 3.00s 208 53 64q71 01 3lq1la Ho! Laid (somm qick) !a!l 2_r5-!! 47t 15 1.2791994 47 10 0q tq4q ?s! 255,998.81 144 319 2C 440 318 10 1,274,149.94 277,7O3 !1 301522.04 1,720 312 5t 633 63 3101!)L Laid (e,olrlm tiq) isrr. 108€6e!! 752 6l 82,010.694 43 100q 1s!q ?9 !! 16.402, r 38.€l 1,S09 540 0C 28,21167aAA 95 340,645.43 20 781,45S 3l 22,516 398 33 110 222 373 32 1,01I 50 1!t0F J91 28 591,2a0 35 ?0.0c ir8,256 07 85 1,t4 32 479,156 9€ 94,0r0 21 221513.62 794 680 30 311F)c 17 200.00 1890 71 15,9?!??9.99 1q.00 1000 20.m 3 064,045 08 2.206113 q! 5.270 158.91 r5 671 523.55 2 918,730 0? 7,308 r45 24 20 590 3Aa 3C 1.r9712 sPL 312 ].I!- 2 440 9! 4191 leerqq{o! 10q9 3q97?.8! 26 fAO 42 3q153 22 205,161 01 L!99 5i 61 692 66 264 617 24 1!Q 0e sPt3i4 9!.!- 3 000 q! 533 ol 1,5s9p9911 r0.00 31-e,9!?.?? 234 261 2C !q0.068.43 1 46!,91q: : 309_935 53 2,i49 r04 57 71637 215f4,346.17

MLSCELLANEOUS STAUC-TUFES

605illq 'F" 5,205.A7 244,675 88 10 0Q 000 20.00 48 935 1q 35,233.33 34.168 59 121,263.9? 162,526.29 4505417 iza sal rr 6,99669 ?.L51.87 221,6424 10 00 20.0c 44 32451 3r.916.57 76.24514 146 212.0G 146,89413 44le179 297,887 9€ 2.49212 45 00 5,q4!!Z . ?9?-39s.14 r0 00 10 00 a0.q! 59 4qZ q3 3!-496.q4 9r.964 66 131!6q2.23 1fe-]19!j 359.303 81 le!413 6 rory sqn. d4 4100 13f12.26 654,462.69 r30.972 54 94,300.29 5rr{tI {E.d Tianoplaltrc P.@nt M.d.q.. (wri!.j 99,m €39!? 2,492,218.47 523 443 69 119.47e.4 99!!e23 15 61?\2) P.v€4.nt Ma4^9.. 35 1o 159 'nz€d ft,.mopl..tc (!.!A!L M. 1,239.!! 79q.qq3 00 6ff A1 271,U5 59 245.9qq!1

TOTA! OF PAFT H a o79,127.3A 1 015 425 4a 1 747,219 82 3,422 269.24 2.711 535 23

MOBILIZATION ANO OEMOBILIZATION sPL 8Oq od Oehobh2.l.on (1ir 9t CrvrlWod,.o4 100 1200.003.16 1 200!0!al q 10 00 10 00 24o,OOO63 172,800 46 41r,8oi 09 r,305,68r 95 319 669.S9 377,779 J! rfr28o425 1 612,804 25 'uon - TOTAL OF PAFIT J

DAYWOFK seLlqq 1 ss3.9tlo a09i66.ro 468,r6!.q! r05 999 8o 383,33r 7C

TOTAL OF PAAT K 883,33r 70 105 999 aO

PFOVISIONALSUM

. 5.299,90!!3 2 404,994 42 635 994 83

1 854,9S6 58 2,804.99442 635 993.83 5,299990

13/ 1531 492.26 ADB TA 7093 - PHI: PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE III LOT 3.4 BUKIDNON - COTABATO ROAD pRovtNcE oF NoRTH COTABATO ( REGTON Xlt ) SUMMARY OF COSTS (For lmplementatlon, L = 38.110 km,)

BILL DESCFIPTION TOTAL COST ITEM PERCENT AMOUNT

PART A FACILITIES FOR THE ENGINEER 4.57 12,761 ,391.5!

PART B OTHER GENERAL REQUIREMENTS 0.48 '1,351,506.31

PART C EARTHWOBKS 3.3S 9,442,005.8€

PART D SUBBASE AND BASE COURSE 0.00

PART E SURFACE COURSE 84.72 247,563,105.51

PART F BRIDGE CONSTRUCTION

PART G DFAINAGE AND SLOPE PROTECTION STRUCTURES

PART H MISCELLANEOUS STRUCTURES 1.90 5,309,382.73

PART J MOBILIZATION AND DEMOBILIZATION 0.94 2,623 ,1 44 .94

SUB . TOTAL 100.00 279,050,536.9!

PART K DAYWORKS 1,395,252.6E

PART L PROVISIONAL SUM 8,371.516.1 1

GRAND TOTAL 100,00 2A8,817,305.74

Updd.d 2t F.brury 2010 ADB TA 7093 - PHI: PREPARING THE PHIUPPINES ROAD SECTOR IMPROVEMENT PFOJECT ASSET PFESERVATIOI{ UI{OEB TTTANCHE I CONTRACT PACKAGE III LOT 3.4 BI'KID?{ON. COTABATO BOAO PROVII{CE OF NORTH COTABATO { REGION XII)

SUMMARY OF COST ESTIMATE (ForIntld.n|.llDn, L = 3!,tr ln)

DIRECTCOST tNotFEct ITEII cosTco PoNET OESCRIPTION UNIT oual{llY IJNII NO, TO'AL UNITCOST FOREIGN TAXES cosT

(1) t2) {3) (5) (6) (7) (3) (s) {10) o1) 02) (15) (r6) (r7)

FACILIT]ES FOF TI-]E ENGINEEF I

A1114 P@id. cohbi;€d?lqd or&!]dl-abo..ri,.r, tolqqqslneel on nenrat e. 130C .2qq09.m 260,00000 1000 10 oo I 20 0c 52,000r@ 69,4,40 0! 00c 307 507.20 11t!? 30 26,860 0C A i.11!L l10c 15,@!! rel@!! Lq00 I o.oo T 39,000@ ?6.oqqq 6l,080 oo 00c 230_899 40 262,080.00 2qiqoroc .L1.{!t _- t!2.696 91 looo I 230,,r2!:q 442,334 29 rcr342 4C 22!!!! 26 1334,453 37 qub a) A.1,114L 529,a90@ 529,490.0! 1000 ,;l 1o5,S9S OO 75,246= 1e)456 402,39562 96€9541 21L534.s6 711634.54 I .;; A";;;i;;i s"h Dr L:. 1!a rpt7.6!9l! L877,q49 50 loori 1o otl szq,q9!9 210,331 53 sis,sr r a3 i s92,670 7q 252!35€ 09 2,!?q!6!]93 A.t P.ovido.nd Mdnlain Qmnunic.lion F..i|iy lc{ $'!1E49i..€. 13,7!!? 170,000@ 1000 | 3..q90!q 24,$A.q 105,772 AC r 7 57!!! ]ll Drosd. sup!!!!r!!rc@!l;.bro sroo! It FDrd Q@g.@ombry !C a!- 19-0! 2!,tgtl! 40,35q.!! 1! 00 ro oo I 20 oo 64.072 t2 49,01192 16!.019 3j 238.236 39 5t186 68 457,444 62 35134.05 Lri.n Ou.ne6 lor th. Englner I Sch€dul. € L F I -laoJ56 1 el9!!e, opo.altaad M.int.ln 4WD Pick.ue Tve. Ddblo Crd Cab, Sdicg 26 oO a5 3.95?.129.!! r00o 739,!!!.92 52s,913 69 r 256 349 S€ 2f 1r,28.a! r,3?4J94 SO 4,9031529,63 r'.h(lelo' h. Enqh..'. (2 urd.l I A.1.qFL ?Iotld. q!4 !!!!!raii Sury€y ng!!!L.nre/ Equ pm€.Itoi tf'. q!!i9!qlEq!L 2r,q52.69 28L9!!!! 10,00 loooT 56 319!9 !qs49.?c 2A3)57.2q 56.tl2 1o 31q,409 20 2s rc,.47 h. Enqln€d on R.nlt od6lschodur€ G , o'ova'o^ l .a 1 3{b) ot suto.y Per.orrg!ts9!!!!lq H) 19.00 5!.9q9!9 7?3,s4r.4 24e.036.t 3'o5?6€ !eJ!c.6, orogr... Photoqrapht 4.3?! !9 62,753 33 ,"-l 1499.q7 29,526 22 1.1?!?3

TOTAL OF PAFI A 1 367,291 9e 3,266,306.5€ 5 455 205 39

I OIHEA GENERAL REOUIAEMENTS - 4€25S5.o9 00 10 0ol 69,a92.25 i66,0O914 561,504 77.431.32 sPL:f cmsvwlg! 991!!L!nd H..rr! Lm 4€2,$!.q! 10 I ?9.9! ,657.01 9,25!.3i 69 64qj9131 ENnonmslal &d [email protected] S e0ad3 L9! 905,000 qO 5O5,0O0 0! 10 oo I 72J295 ll3,72O OC 135,945 6C 1q t?8 o0 573.72! 90 678.72000 +oj€9!q!l!!9!L 1 m 13,0oq.!9 r3,00o.9! 10 00 10 oo 20.00 99o.0o 2 592 O.C 6192!! 4,467 20 12 A21 16 2,qo3 04 24.19200 I B TOTAL OF PART I

I

EARTHWOFIK

r.novll or tu!,t ng AC P!!!49!L 1.275.04 !!l! 15j494 10 0o 914.1r 6,570.5! r5,6962! 4,996.37 17,973 93 6r.325.03 !310 Lbgr.d6 t!!!r!!91 - r+lit- ?]11 1q00 rs] 343,9!7!i 607,619:9! 1 451,60610 9 564,740 51 a67139'26 1q3 c..c[.^d Seat Pdor6^D 551 9€ 2 759,343 07 sq]]efz 61 397,423 33 949,401 q9 2 412,721 AA 910 535 02 -s!! rEr,.tnqPCC '-'T TOTA! OF PART C

I

3oo 9u.4- 23 205 0C !zzr! 24,717 .996 2A lo00 ,o* | 20 0c i.aas.599.2: 3.t6!.4l qq a 513,3r0 71 r 3 6!a952 82 7.4!]!?3r3e 33,26r 3oii.97 1rl92l 9!11!l 2!! ,_ 49,15 !! e3,3!Z!? l! 00 ,0@I?q,00 ]!.0!rl! 33,817 9? 96.567 24 r8,663 16 132125.84 66 062 92 !9?A lo'l!q !12,00 rzElll! 1q@ l'o55'3o3,4 l6f,o1a.32 !E!g!er 73 a95,527 61 63913 r9 o. 501.12 1 39,s36,353!1 looo 27,907?12.q4 127669.03524 299s.625 75 3r,3r3,211 r6 r37,536 472115 - 100E !qn ??!ie3 !!9 L?qqo lQ- s!.t! 9303,6,{0:!1 m00 1,761,f?311 1.264,144 !!3O,r 72 35 ! ?59,944 12 ?r19o,393 29 C! 3,o1e,€e.q! looo 60s,4a7.93 2 690!272 A1 675.09060 1;t5211 'sPa3r4SPL313 1qn l to6.43 rs!! T wirh Glas F.rnrdq.n.r.! 532 30 2v1,475.57 "1 .32,2ea.11 343,25?4 915,547 60 184,196.739 22 63 364.356 29 159 001,343 44 45,039 370 90 247,563 r05 5r 2,92q1!1

167,rK10 32

s.ir71 516 r1

GFAND'TOIAI- Annex 6 CONSTRUCTION SCHEDULE TA 7093 - PHI : PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEMENT PROJECT. ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE I, LOT I..I . SAUANG - BAGUIO ROAO

I

E|ll

o62 - o062 - g.EAASE AND BASE @IJRSE

v(.

1.2fr5 PROIrcTION STRL'CTUR€s

MISCELTAN€OIJS SIR(JC'URES /u, I o.a /k^ I - TOTAL CGI

PERCEIII 1.505 17.471 17la 0.s03 {(r1 1,4F t ir11 7l,atl t4.10 f;,oo irtrrtHlY 3112 3 556 3 166 37.409 ro aaa 3'OOO 37 074 37 87. 1 701 scr{EuJtr l Arc(|aT I I -l -l--ttoro I --rtz rrvE {IPI l.{a t3.t ta rrrs ra.c taa.ttT ztozx , ctul scl{EDir.E I t.L I TA 7093 - PHI : PREPARING THE PHILIPPINES ROAO SECTOR IMPROVEMENT PROJECT, ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE I. LOT .I.2 - OLONGAPO - BUGALLON ROAD

I ti L It ta

ENGIIIGINEER ,{

SUAAAS€ ND BAg @IJRsE

4*

tqs23,a{a 50 326

o232

0ttz/ /,-, oczl

0161_ lora co6r

0 I335 I802 4 015 rcI'TIILY SCI{€DULE PERCEiIT : 0754 536 8515 (!4, curuLltlrE sctcttuLE o.76a 1a$ lt.oao ara. dt.l?l to.aaa e€.taa m{Tl|.Y SCt{EDrt-E 4511 50 9oa 52.620 24046 CUTUIATTI/E SCHEOIJLE a.llt 1r@ 22o.aaa trr?4 | L.tl f".,-. TA 7093 - PHI : PREPARING THE PHILIPPINES ROAD SECTOR IIUPROVEI|ENT PROJECT, ASSET PRESERVATION UNDER TRANCHE .I CONTRACT PACKAGE ll, LOT 2.1(a & b) - PALO-CARIGARAORilIOC CITY & DAANG MAHARLIKA ROADS (Llloan-Naval Hlghway Road)

a ta ri rt l. ta

0 20tt 6

o6 0.025 0 025 o025 0@5 0 025 0 o2a

0.13? o1a2

0 352 t*

2 545

o.2

ogzl

T16i TOTA Cq3l I670 I670 6318 6.314 iiK|l{tHLY ScHEqrLE PERCEIIT 1.014 840 ctflurlrr,E sct€D(,LE {(*} tLo a.4t a7.tl/ll aae{l s.lt6 g.zn $oNTHLY SCHEOUIE l,* 3.989 3 989 I e.oa 34 112 34r12 I utz 34112 34.112 33 397 32 6€1 327?5 32 rZS | 32725 I rz sor 17 907 | 3 089 3.579 sclEotx-E r!"" &.b riilt ,ti,70o zat,et 31A.Zn Ito.aa:l ras.aaa aaa.7a ro.a6a leara c(mrLAlIvE t t*" I tri& l-trt* | h..." i f 'A.orl l*/-, E.orl I I l TA 7093 - PHI : PREPARING THE PHILIPPINES ROAD SECTOR IIPROVEMENT PROJECT, ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE ll, LOT 2.2 - ILOILO - CAPIZ ROAD (Old Route)

L

0tu.

gJBAT-sE AND BAS€ COIJRSE 16@ oza

42.256

11.310 ./,,,o

2.AA rl'.,

OA

o/2 o2a2 o212 toTA c€t

'1X34 1 334 13052 1!052 13 052 PERCErI | .] (ti) /g -11" lt.tEa ,aa.l6 rt.tta rcI'TH.Y SCXET'UIE 3.4er 3 451 3.t51 3:159 32 78 3 752 43.752 33 752 ar.zoe reea I I *oi I I --rer.1 cu** t* ^rcq|Ttlp) --.*'-l ararl aolls ttaaa r4?.418 ctrto I **l - rta;l ""ta""* =€6, I I =.*" I IA 7093 - PHI : PREPARING THE PHILIPPINES ROAD SECTOR IIPROVE'IENT PROJECT, ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE ll, LOT 2.3 - Dumagu€to North Road (Negros Orlgntal, l3t Dbtrlct) Sta. 5{l+742€ta. 108+967 OESIGN AND BUILD

I l| It 4- te

€UBAASE ATD 3AA€ COURSE /-n 6

oy'

4.,o

lot L @!T I 702s.@o 75 XTfll|.Y tCHEq'lE 119 6.(B 6,1@ 6014 6Zil 6237 6231 6-237 5 029 0 I rCrcc'ar E '190 l"ou.] CIruLAIIIIE SCTCq'LE 2.6f a,tt firoi !0rto j"s==-1 tt5/B Jg 6ral €.gt it.-l lo, 'fi|llr - ''2aat - r15.012 45 01? 42,6 43.447 438,7 43311 !1.642 3||64 1667 fOtItlY tct€ot LE- a36? l-::::-T;;; r*.t | rFl rara2 2t!.74 !i,o lt 6ao !l6a.ta aaa.tla s.!aa r@sl ------o.n IT|!,E !q{@t/ll I $.nI| F.rt!3- 6A - TA 7093. PHI : PREPARING THE PHILIPPINES ROAD SECTOR IIIPROVEUENT PROJECT, ASSET PRESERVATION UNDER TRANCHE t CONTRACT PACkAGE ll, LOT 2.4- Dumagu€te Nortr Roed (NegroE Orisntal,'l8t Dlstrlct) Sta. Sta.108+967- Sta.150+523 OESIGN AND BUILD

t,l tt 1'

--- ,K

,d," d

"/ 4,"

0 !q- fF rqr t cosr 15739i.329r0 ro ll{.Y lctfDrr€ 0 753 -,-t 6 383 5g 6216 6216 6216 6216 6216 5S o5t8 o 676 E; "a* cllflul^ttvE lct €DULE {1) o.at7 l.5m 3,&t a,xn to.dlt a!.047 tlt.2.0 !6.47! 6r..o4 at tto to.L2 t2azt 6.324 tqt.u,o HTXIY SallEartE"-- 4.609 4 34' 5.Sr 36 63e 36 600 L 1t2 35.6f8 35 578 E;; 35 674 36 6?a 33.664 2 976 3679 - ai,rn,! tlr/E lo€lrLE fla f-.ro-l"ro ,zn1tn l!0.t4 tfi!'. lf ,ts llaie 3l&tal !6a.lta lae.?a f4ii- 5lF,aat t !.rl t'|t.9t TA 7093 - PHI : PREPARING THE PHILIPPINES ROAD SECTOR IMPROVEIIIENT PROJECT, ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE III, LOT 3.1 . DIFOLOG. OROqUIETA CITY ROAD

a

Ao*

s$&rs€ AND B 3€ ColJFsE

'u.4

.lNl

o.zm an

o?a2 o.322 TOt t coSr rci[HLY SCHEIIXXI PERGEfi 17 771 18415 (!a) ctfltt-arTl/E ScHEluLE t!ta7 aa.?ae rctfiHlY SCtiEgrJtE t 24.666 n 725 clnjlallvE lclcolJlE I ^flo."ttrPl a17t 14','F TA 7093. PHI : PREPARING THE PHILIPPINES ROAD SECTOR IilIPROVEMENT PROJECT, ASSET PRESERVATION UNDER TRANCHE 1 CONTRACT PACKAGE lll, LOT 3.2 - BUTUAN - CAGAYAN DE ORO CITY - ILIGAN ROAD (t{lsamls Orlontal)

rl It

4,|G[,8IGER 0 341 0.221 0221 oz2f ozl o.zl o.227 o.27 o27

0134

gJBA 5E No BASE @IJRS€ ,/

10 431 4".,

HSC€LIAI€T'S SIRTEILRES

,/ooo o 320 o 320

,4,

oz o.a o.4 o8 oa oa oa oa oa o.8 TOTA COET

o 6.554 1141 11801 11 801 11 801 11.663 P€RCEIIT 8al ---;;-- (x, 7.&l a.tzl 42.e8 4''D aa,tao 5.&n

405 3.831 3831 2a317 ,t9.926 51.317 51 317 st.srz sr 50716 se .127 Arc|,|ar | I orz I sos I | {raPl --r{ -l 'n,6, -.o:o. olt lgit,t- ua,@ 296.aaa a&ara ae?.i!, ll.rn ar4ra6 l--.d.l I I =r/rgI I I f I | TA 7093 - PHI : PREPARING THE PHILIPPINES ROAD SECTOR IIIPROVEMENT PROJECT, ASSET PRESERVATION UNDER TRANCHE .I CONTRACT PACKAGE lll, LOT 3.3 - BUTUAN - CDO - ILIGAN ROAD (Agusan del Nort€) DESIGN ANO BUILO

PCRCAiY $)

"n

066

9.BAIS€ t.ll) B SE COTRSE

st6t

o716

o212 o212 o.n2 o7,2

5,4,O.23 2761 |{*

rolar cogt

t{c}l{IHLY SCHEIX,I.E PERCEIIT 2 529 12.779 13.111 12 721 ('!r) CI,IITITTI'E SCHEOULE 7,181 17],,,. o,ata 71,!at rcfaTl{tY ltct€qt-E a:as ztto 112. 4 609 25 521 2s s2r 21302 24.932 2a t* 23 6,t3 23 64 3.016 tffot,lll I I | I -- - cuxut-AnrE scHEDt .E Ir{") T rr. laE I ro.,raa laI', i- r.o€. I 4,3t5 t'tt.2aa r!o... I r...!6 I - rrlrE-l tao.iaa TA 7@3 - PHI : PREPARING THE PHILIPPINES ROAO SECTOR IMPROVEIIENT PROJECT, ASSET PRESERVATION UNDER TRANCHE I CONTRACT PACKAGE III, LOT 3.4. BUKIDNON . COTABATO ROAD

t

El,lclr{GlN€ER

0 510

gJAAASE Al{O A S€ @|JRS€

6 MISCEI.LIN&IJS STRJCruR€5 6

voauz lroN/D€mo6[E^ltot{ om

.4,

6,37r,51Ot1 o.zE- oza o.a oa o4 on o4 o4 o.a TOT t CqST -E

PERCE|lT 10753 10390 (*) &.d1 E xtffn|-Y sclGot t"E s 506 3512 3542 16 640 30.39.3 3r.057 31.067 3t G57 31 057 30.532 30 @0 30006 Arc(,|T I _.l I rorrs I (r.P) -loco --A,c1-1 -;6rl -- --r12r-l @ !.16 --,ff] - ztal-] - sa.or I r..ns I-r.q;l -;rr. I 2,oii.-1 ,te6t- Annex 7 FINANCIAL AND ECONOMIC COST OF VEHICLE Table 2a: Gostlng Representative Vehicle Classes and Models, July 2008 Prices

Flnanclal New Economlc New Representatlve Vehlcle Model Vehlcle Type Veh Price (PhPl Vehicle Prlce (PhP)

Kawasaki HD lll + Sidecar

1. Motortricyde Honda TMX 125 + Sidecar 69,277 60,451 60,451 Yamaha GS 125 + Sidecar Nissan Sentra Honda City 704,732 480,472 Toyata Corolla Toyata RAV4 sv sDoor 4x2 2. Passenger Car Honda CR-V M/T 4x2 1,409,744 980,826 757 ,301 Nissan Cefiro

Toyota Hl ACE Super Grandia 1 ,800,462 1 ,099,301 Mitsubishi (Pajero) Adventure GLS Sport

3. Passenger Utility Hayag Motors (48C2) 530,309 368,270 368,270 Mitsubishi 1300 FB MT L 300 Exceed DX

4. Goods Utility D-Max Pick Up 4x2 MT a7A OOO 1 ,023,807 1400 Space Gear 632,U2 1200 Strada 4x4 Mitsubishi Canter FE 639 809,807 544,725 lsuzu NKR GVW 4000

5. Small Bus UMC Urvan shuttle 1,019,000 673,045 673,045

Nissan SP215NSB

6. Larg€ Bus Nissan RB46SXL 2,879,338 1,7U,313 1,734,313 Hino FFIJ lsuzu FSR 1,594,000 987,469 lsuzu Ef NKR 4BEl 7. Rigid Truck 982,188 tsuzu F I K 1,583,219 981,642 Hino FP3H Mitsubishi Canter FE 639 8. Rigid Truck 972,632 690,319 690,319 tsuzu Dumptrucr I

9. Truck Semi- Hino SHEEVG TT & chassis BN b/ 2,242,66 1,413,612 1,413,612 Trailer, 3-4 Axlas Recon TT & chassis 20 fi.

10. Truck S6mi- Hino SSEIKVA TT & chassis BN c/ 2,960,010 1,775,333 1,775,333 Trailer, 5+ Axles Recon TT & chassis 40 ft.

1 1. Truck Trailer, 1,274,692 471,475 871,475 4 Axles Hino SH 273 T/T (recon)

12. Truck Trailer, 1,390,573 936,964 936,964 5+ Axles Hino SF2F T/T (recon) Smal, Bus <0 seats, Lar'ge >tO saats Sources. vehicle d'elarc end automolive essociations; Burcau ol Custons and Depadnent ol Financ€. Table 2b: Flnancial and Economic Tire PrlceE (PhP), July 2008 Prlces

Reprcsentatlve Vehlcle Financial Economic Tire Pdce Vehlcle Type De$ription Tlre Prlce Per Vehlcle Type Total

1 . Motor-tricycle Motor-tricycl6 555 505

Small Car 2,982 2,711

2. Passenger Car Medium Car 2,126 1,933 2,414

Large Car 3,625 3,296

3. Passenger Utility 2,071 1,882 (in HDM-4 called 1,842 Public Utility)

4. Goods Utility Van e 7{a 3,377 3,402 Small Truck 4,253 3,866

?.q5 5. Small Bus Small Bus 7 ,024 6,385 A

6. Large Bus Large Bus 15,377 13,979 13,979

2-Axle Medium 8,441 7,674 Truck (1 1) 7. Rigid Truck 13,624 z-Axle Heavy 15,664 14,240 Iruck (1 1 )

3-Axle Heaw 8. Rigid Truck 13,810 12,554 12,554 Truck (12)

9. Truck Semi- 4-Axle Semi-trailer 14,135 12,850 12,850 Trailer, 3-4 Axl6s Truck (1 1-2)

10. Truck SemF s-Axle Truck 16,705 15,186 15,186 Trailer, 5+ Axles SEmi-Trailer (12-2)

11. Truck Trailer, 4-Axle 13,810 12,554 12,5U 4 Axles Truck Trail€r (11-11)

12. Truck Trailsr, 5-Axle 14,282 12,9U '12,9U 5+ Axles Truck Trailor (12-11) Table 2c: Financial and Economic Fuel and Lubricating Oil Prices (PhP), July 2008 Prices

RoprcaentaflYe Pump, Financlal Economlc Price Fuel and Lube Oll Vehlcle Type Prlce (PhPfltrl (PhP/ltr) l\rotor-tricycle Gasoline/fube oil mix (%o/ol4o/o\ 53.47 51.15

Passenger Car Gasoline, Unleaded 95 Oclane 6.25 44.24

Public Utility

Goods Utility Automotive High Sp6ed Diesel 39.70 39.70

Bus, Truck llilotor-tricycle Lubricating Oil, SAE 40 178.50 178.50

Pass€nger Car

Public Utility Lubricating Oil, 10W 274.6 274.56

Goods Utility

Bus, Truck Lubricating Oil, HO 90 175.56 175.56

Taxe6 - E.O. 691 ptovide' zerc rate of taxes ol oil imr,,fts stading June 2008 Table 2d: Maintenance Labor Costs (financial and economic, PhP), July 2008 Prlceg

Hourly labor costs 47.75

Workshop equipment and overheads p€r labor-hour 21.22

Total 68.97

Sour6: Mec',anical wot*sho6 in Manila.

Table 2e: Crew Cost3 (financial and economic, PhP), July 2008 Prices

Repretentatlve Oriver A!slstant Hourly Vehlcle Type per unlt per unlt Cost! p€r Vehlcle Unit

Motor-tricycl6 1 0 62.5

Public Utility 1 0 56.65

Goods Utility 1 0 64.15

Small or Larq€ Bus 1 I 140.00 fruck 1 227.27

Sourca: T,€nsrErt @npanies in the Philimines. Table 2f: Annual Overhead Costs p€r Vehlcle (flnanclal and economlc, PhP), July 2008 Prlces

Cosls syslem from Highway Planning Manual 1982 (page 33) (for individual vehicles but based on an average of 10 vehicle feet units) multiplied by 4 (infalion at about 7% per year) (no increase from 2004 t0 2005) See abo Table 20 below.

General Operaiion Record Security Water & Office Rental Communi- Yard or Agents & Maint. of Total per Represenlative Accountanl Typists Janilors Vehicle Type Manager Manegsrs Keeper Guards Electricity (PhP 70/sq m) calions Garage Licenses Buildings Year

Passenger Car 9,759 7 tto 2'14 4,441 3,631 2,74'l 13,811 0 0 0 0 49,574

Public Utility 0 0 0 0 0 0 o 0 0 0 0 0 0

Goods Utility 0 0 0 0 o o o 0 0 0 o 0

Small Bus 0 0 0 0 0 0 0 0 0 0 0 0 0

Large Bus 6,769 6,154 4,333 3,621 2,OOO 2,354 2,43'l 641 0 2,856 0 982 4,6 t5 36,756

Truck 25,769 15,692 o 0 o 2,000 4,446 1,377 10,000 0 60,685 sourE€: Tliarc,ptt @mo€nbs in tlre Philipgittcs. Table 29: Time Costs per PeBon (drivor in passenger car and passongers in motor-tricycle, car, pasaenger utility and bus) (financlaland sconomic, PhPl, July 2008 Prices. Seo also Tabl. 19 b€lon

Gross Nalional Producl (GNP) 2004 in curent prices (PhP million) 7,245,323

Employmenl (persons in million) by July 2004 34.6

Average Incom€ per Employed PeBon per year in 2008 209,536

Average Incom€ per Employed Person per hour in 2008 105

1)1 NSCB, National Actounts Ac@unts ,. GNP & < by Ex@nditurc 2) NSO at website www.cansus.gov.ph

Table 2h: Passenger Tim6 Cost per Percon (PhP), July 2008 Prices

Repr€rentativs Working Tlme Non-Working Tlme Vehiclo Typ. PhP per PeEon+lour PhP psr Porlon+lour

Passenger Car 4t9 't 05 l\rotor-lricycle

Public Utility 105

Bus

Tablo 2i: Cargo Inventory Coats (at 14% interest per annum, financial and economic, PhP), July 2008 Prices

Cargo Cost per metric tons | 15,881

Interest at 14% p.a. 13,90€

Rapru3entatlvs Payload Cergo Co3t Crrgo Co3t Vehicle Typs (mt) (muhour) (muvehiclo-hour)

Goods Utility 0.75 ao< 5.2'l

Rigid Truck, 2-axle 5.00 6.95 34.76

Rigid Truck, $a{6 9.00 aoa 62.5E

Semi-trailer & Treilers with Truck Prime Mover 14.00 6.95 97.34

Cargo Cost per metric tons = 159.8/137.9*100000 1 15, EE1.1 Source: Trensporl companies in the Philippines. Table 2j: Gharacteristics of the Philippine Rspresentative Vehicles, July 2008

Rlgld Rlgld Somi- S€ml- Reprrlentatlv€ Motor- Paasenger Publlc Goods Small uryo Truck Truck Ttallsr Ttallel Traller Traller Vehlcle Typo Trlcycle Car Utilfty Utlllty Bug Bua 2-arle 3-axle 4 arles 5 axlet 4 axles 5 axles

PCSE, n< 1.0 1.2 1.0 1.4 1.5 1.4 1.6 1.8 1.8 1.8 1.8

No. of Wheels e 4 4 4 4 6 6 '10 14 18 14 18

No. of Axles 2 2 2 4 5 4

Tire Type bias radial radial bias bias bias bias bias bias bias bias bias

Base No. of Recaos 2.O 1.3 2.O 2.O 2.O 1.3 a-, 1.7 1.7 1.7 1.7 1.7

Retread Cost (o/o of new) 30 30 30 30 30 30 30 30 30 30 30 30

Annual Vehid+ Kilometers 25,000 17,500 60,m0 25,0m 70,000 80,000 50,000 50,000 60,000 60,000 40,000 40,000

Annual Working Hours 1,200 500 2,400 1 ,500 1 ,800 2,200 1,500 1,500 1,800 1 ,800 't,500 1,500

Average Life of Vehicle 12 15 12 12 12 15 15 6 6 o I 8

Private Use (Yo of total) 20 90 20 20 0 0 0 0 0 0 0

Passengers p€r Vehicleb 2.5 2.75 12 '15 45 0 0 0 0 0 0

Wort-related Trips (o/o of total) 15 20 20 20 20 20 0 0 0 0 0 0

ESALF. 0 0 0 0.01 0.01 1.2 1.7 10.0 '12.5 7.6 5.0 5.5

Operating Weight (mt, GVvUo 0.3 1.3 2.0 12 19 42 54 60 25 30 requircd every tO ye{s. Nc/e: Vehide types E-1 2 arc basicdny bougtt as ra@Nitbned units at low r'ices aN the liletimes ate therelore rclatively low. ' Passenger Car Spa@ Equivaled. o tnchding driver. " Eguivaleld Standad Axle Load ffio( (sowcf,.: DA IH, TAS). o GVW. goss l/€,hkle weight (sowc€: DPWH, TAS). Table 2k: Economic Unit Costs of Philippine Vehicle Componenta, July 2008

Rigid Rigid Semi- Semi- Representative Motor- Passenger Public Goods Small Large Truck Truck Trailer Trailer Trailer Trailer Vehicle Type Tricycl€ Car Utility Utility Bus Bus z-a$e 3€xle 4 axles 5 axles 4 axles 5 odes

New Vehicle Price. excl. Tires. PhP 58,938 747,643 360,741 619,035 647,505 1 ,650,438 900,443 ffi4,776 1 ,233,712 1,501,987 695,716 703,259

New Tire Price, PhP 505 2,414 1,882 3,402 6,385 ,t ? o70 13,624 12,5U 12,850 15,186 12,554 12,984

Fuel. PhP D€r liter 51.1 44.2 39.7 39.7 39.7 39.7 39.7 39.7 39.7 39.7 39.7 39.7

Lubricating Oil, PhP per Liter 179 275 275 zta 176 176 176 176 176 176 176 176

Mainienance Labor, PhP per hour 69 69 OY 69 ov 69 ov OY OY OY ov 69

Crew Wages, PhP per Hour oz.cu 0 56.65 64.15 140 140 227 .27 227 .27 227 .27 227.27 227 .27 227 .27

Annual Overheads, PhP 0 49,574 0 0 0 36,756 60,685 60,685 60,685 60,685 60,685 60,685

Annual lnterest (% per annum) 't4 14 14 14 14 14 14 14 '14 14 14 '14

Passengor Working Time, PhP/Hour 105 419 105 105 105 105 0 0 0 0 0

Passenger Non-Working Time, PhP/Hr zo 105 zo zo zo zo 0 0 0 0 0 0

Cargo Inventory Costs, PhP per Hour 0 0 0 5.2 0 0 35 97 97 97

Source of intercst: Banking seclor. Annex 8 SUMMARY OF ECONOMIC EVALUATION BASE DATA & RESULTS SUMMARY OF ECONOMIC EVALUATION BASE DATA AND RESULTS

SURFACE SURFACE ECOM)MIC EVALUATPI{ RESULTS RdAll/ SECllOlt LOCATto0i LEMiT}I TotrlAADT 'ROJFCI (lsn ) TypC tRl Type Condltbo lRl itPr/ NPl'/C E|RR (*)

1. Butuan€agiayan da Oo-lligan Ro.d 21.23 2.5 1371.3t0 23.863 112.2 (Mi..nl5 Odcnt l Scc, 1.1 1473+5fl - 1424+M 0.€ PCCP Fah 4.6 PCCP Fan 4.0 21136 Exefip{ion 1424iffi - 1427+ffi L*'o o,*n 3.00 PCCP 8ad 4.4 PCCP 4.6 2113/J 20.696 3.34 50.4 1.3 1427+(ffi - 1427+524 0.52 PCCP Fair 5.6 PCCP 8ad 2113a 26.531 4.71 72.9 1.4 1427+524 - 1434+7@ 7.19 PCCP 4.7 PCCP 4.7 2113a 103.9e6 10.509 82.6 1.5 1434+700 - 1435+Om 0.x AC Bad 4.0 AC 4.0 29880 184.307 42.43 194.4 1.6 r.85+O@ - 1436+0@ r.00 AC 32 AC Fair 3.2 29880 566.373 44.5€6 m7.a 111 1436+000 - l€?+00O 1.00 AC Good 4.7 AC Good 3.0 296€0 E)€m9tbn 1.12 1,137+000 - 1€7+28 0.78 PCCP Feir 6.0 PCCP Bad 6.0 ?3644 42.550 6.O33 70.6 1.13 1.{37+n8 - 1438+500 o.72 PCCP Good 3.8 PCCP Good 3.8 23644 Exemption 1.14 1438+500 - 1444+750 6.2€ PCCP 4.2 PCCP Fair 48009 141.895 54.5

2. lloilo4.pir (O|d Rouh 37.m 2-g 30t0.560 17.166 87-03 1 8'360 - 22+000 3.6.4 AC 3.0 AC 3.0 3703 136.912 5.088 37.7 2.2 22+000 - 23+Crn 1.m AC 8ad 2.6 AC 2.6 3319 x.g7 4.E49 45.3 2.3 23+000 - 45+692 2..69 AC AC 3.7 3021 732.518 5.210 54.8 2.4 45+692 - 46+983 1X PCCP Fan 7.4 PCCP gad 7.4 3724 12.980 28( 34.1 2.5 46+983 - 55+960 898 AC 33 AC 3.3 73s4 541.296 15. t62 12.O

B.u.ng-8.gub Ro.d 3r.tt 2-g 1305.890 6.180 r13.3 3.1 258+920 - 267+000 La LJnion/Bengu€l 8.0€ AC Falr 2.9 AC Fair 6735 20.@2 7.3€g 49.3 3.2 267+000 - 268+000 1.@ AC Good 20 AC Good 2.O Exemption 3.3 268+(fi - 27(m 2.60 AC Fair 2.5 AC Fair 94.161 6.146 52.8 3.5 Z7O+ffi - 272+1@ 1.5C AC Bad AC Bad 4.5 6/35 3.919 5.,1S 51.0 3.6 272+16 -n4.ffi 1.90 AC Good 2.9 AC Good 673:; Exemption 274+W -m+(fr 3.m PCCP Fair 6.9 PCCP 19.175 2.5m 46.3 3.8 2Tt+W - 28a+6fi 11.65 PCCP Felr 7.3 PCCP 7.3 6735 54.164 3.005 3.9 284+650 - 28E+73) 0.08 Bad 13.5 Bad 13.5 ml 6.584 5.5,{O 7A.1 3.10 284+n0 - 298+070 Lv PCCP 7.1 PCCP 7.1 3660 96.416 0.843 25.8

1, Olong.po€uqallon R( 146.28 849,300 4377 39.4 4.1 126+341 - 128+4tl ill'*,o 2.11 PCCP PCCP 5.6 1234 -1.396 -0.308 8.0 4.2 124+$4 - 124+*2 13t & 2nd Enginq 0.53 PCCP Oood 5.3 PCCP Gmd 1234 Ex€mptjon 4.3 1n+92 - 132+7U OiBtri:t 3.80 PCCP 4.9 PCCP 4.9 1ZU n.696 4.275 8.6 1321784 - 133+2@ 0.€ PCCP Good 3.3 PCCP Good 3.3 1734 Exemdion 4.5 133+2@ - 137+531 4.ft PCCP 4.8 PCCP 4.8 1Z34 -2.m3 4.671 -2.5 4.6 1371531 - 164+000 m.47 AC Good 2.2 AC Good 123r' E)(emption 4.7 164a0@ - 166+000 2.m AC 3.4 AC 3.4 t2u 12.m4 1.119 n.o 48 166+000 - l@'5(x) 3.50 AC 2.5 AC 1?34 8.696 0.690 21.5 4.9 169+500 - 169+921 o.42 AC cood 2.5 AC Good 1A Etemplion 4.10 1691921 - 170+812 o.a9 AC AC 1234 -1.34i) 4.421 4.11 170+412 - 172+OE 1.21 AC Good AC Good 1* Exemption 4.12 172+OX - 174+$7 2.4 AC 1.9 AC 1.9 1234 E.U7 3.427 34.6 4.13 174+457 - 176+Al 1.82 AC G@d 2.1 AC Good 123 Exemption 4.14 176+n1 - 177+7$ |.1|€ AC 2.5 2616 50.719 8.315 51.3 4.r5 17l+758 - 176+185 0.43 AC Good 2.1 AC Good 2616 Ex€mdion 4.'t6 178+la5- 178+700 0.51 AC 2.6 AC 2.6 2616 17.76S E.4tr) 52.1 4.17 178+ru - 179+3m 0.64 Oood 3.3 AC Good m16 Exemptbn 4.18 179+300 - 179+8"84 0.5€ AC 4.2 AC 4.2 2616 25.523 7.Om 42.9 4.19 t79+884 - 180+992 1.11 AC Good 2.2 AC Good 2616 Exa'ndtm 4.m 18N92 - 1E6+886 5.89 AC B6d AC 2618 34.e12 8.315 51.3 4.21 186+886 - 18Sl2O3 AC Good 2.1 AC Good 2.1 2616 Et6mplioo 4.22 1e€+2tt3 " 191+191 1.99 AC 2.4 AC 2.6 2616 m.333 8.45:' 52.1 4.23 191+191-191+5O5 0.31 AC Good 20 AC Good 2.O 2616 Exemdion 4.24 | 91 +505 - I 94+7Ss 3.25 AC 2.8 AC 2.4 ml6 117.521 4.773 53.8 194+755-19&|955 1.4 Good 2.4 AC Good 2.4 26r6 b€fiptkxi 4.^ 1 5+$5 - 197+000 1.(X AC 2.1 AC 2616 33.621 9.020 96.8 4.n 197+000-197+306 0.31 AC Good t.9 AC Good 1.9 2616 Exemption 4.m I 97+308 - 201 +7/g AC 2.3 AC 2616 15.696 9.312 58.8 I 4.n 2O1 +r/9 - 2)3+030 1.24 AC Good 2.1 AC Good 2616 EErnptlon 4.30 26+(m - 204+340 1.31 PCCP 1.9 PCCP 1.9 2618 Ercmptkrn 4.31 2O4+3O - 204+91 1 0.5, AC Good 1.6 AC Good 1.6 470o Exemplion 4.32 m4+911 - 204+490 I 1.5€ AC 2.2 AC 470o 74.550 10.195 89.4 4.33 m6+490 - 208+979 2.4 AC Good AC Good 3.5 4700 Exemption 4.U 208+979 - 21 &690 I 1.71 AC 2.4 AC 2.4 470o 83.120 s.384 72.1 4.35 2r O|@0 - 21 3+25S 2.57 G@d t.E AC Good La 47@ E)€mption 4.5 2'l 3+250 - 214adx) 1.3 1.8 AC t.8 47@ d2.U2 10.m4 86_9 4.37 214+ffi - 214+W 0.3€ Good 2_4 AC M 2.4 470o E)(empllon 4.38 214+900 - 21 6+000 1.1C AC t9 AC 1.9 47m 51.1@ 10.051 96.7 I 4.39 216+000 - 21 6+ru 0.7c AC Oood 2.O AC Good 2.O 2045 Ex€mption 4.4 214+7@ -217+T7O 1.07 AC 1.8 AC t.8 2045 9.135 2.82 u.2 217+nO -214+t'35 1.07 AC Good 1.9 AC Good 1.9 2045 Ercrnpllon

4.42 218+t$-21lffi I 2.14 AC AC 3.7 20{€ 2.Q4 1.m:l n.7 4.€ 21+W-z+ffi 1.6€ AC Good 1.9 AC Good t.9 zxs Ex€mptbn ziffi-?23+& I o.74 AC t.6 AC 1.8 20.45 4.317 2.82 u.2 4.45 Z+&-23+59 0.15 AC Good 1.3 AC Good 1.3 2045 Exemplbn 4.$ 23+W -24+€fr 0.95 AC 2.O AC 2.0 2045 8.382 2.62 34.9 I 0_50 AC Gdod AC 2S 20/t5 SUMMARY OF ECONOMIC EVALUATION BASE DATA AND RESULTS

SURFACE SURFACE ECOM)Ii.IIC E\IALUATIOI{ RESULTS PROJECT ROAOi SECTION LOCATION LE GTH Tot I AADT llru) Typ. tRl Typ. Conditlon lRl Nn /c E|RR {i6} 4.rro 1.41 AC 2.4 2.4 2045 12.601 2.m3 31.9 4.,19 m+415 -nA+443 2.43 AC Good 2.2 AC Good 2_2 20,6 Eremdlon 4.50 m+843 -Z3o+7cfi 1.86 AC 2.4 AC 2.4 2045 17.673 2.305 32.9 4.51 m+7(n -82+675 1.98 AC Good 1.E AC Good 1.6 20{5 Exemplion 4.52 2!2+675 - 233+W o.42 AC 1.7 AC 1.7 2045 3.3e9 2.81 36.5 4.53 23:]+0S8 - 233+570 o.47 AC Good 2.1 AC Good 2.1 2045 Exemption 4.54 23+570 - 24ol4a6 6.C2 AC 2.3 AC 2.3 m45 61.658 2.163 31.6 455 2{o+& -?so+7n 10.24 AC Good t9 Good 1.9 m45 Exemption 4.56 2fl+7 -251+ffi 1.0€ AC '1.7 AC 1.7 2045 9.060 2.34i' 3.4 +57 251 +8m - 252+306 0.51 AC Good 1.5 AC Good 1.5 2045 b(emption 4.4€ 252+?fi -84+422 2.52 AC 1.6 AC 1.6 1&97 14.964 2.191 32.3 4.59 2g44An. - if2+270 7.45 AC Good 2.1 AC Good 2.1 1897 Exemptlon 4.m 252+270 - 263+000 0.73 AC 1.8 AC 1.8 1897 4.643 2.M1 {.2 4.61 263+0m - 26?+000 1m AC Good 17 AC Good 1.7 1497 Elemption 4.62 264i00O - 266€37 2.U AC 2.2 AC 2.2 1897 12.152 2.106 n.6 4.63 m+97 -271+6m 4.68 AC Good 2.2 AC Good 1897 EremFliort

Dapologoroquiot Cit! Road 49.89 136.500 14,f12 a1r 5.1 1798+000 - 17g9+rm Zamboanga del Nol 1.@ AC 3.1 3.1 2545 7.241 1.2t6 18.8 5.2 I 79S+000 - 1 8O1 +0oo 2.m AC Good 26 AC Good 2545 Exemption

5.3 I 8O1 +000 - 1 8O1 +2m 0.20 AC 2.6 AC Fali 2.6 2545 1.962 |.993 24.3 5.4 18O1+2O0 - 1806+214 4.Ol AC G@d 1.9 Good 19 E)€mp{on 1805+214 - 1813+m3 7.79 AC Good 2.8 AC F.ll 2.4 1757 Exempaion 5.6 1 8r 3+@3 - I a24+Om 11.m AC Good 1.9 AC Good 1.9 1943 Exemption 5.7 1824+000 - 1825+300 1.31 AC Fair 1.6 AC Fat 1.6 1943 {.106 -o.043 9.3 5.8 1825+300-1826+000 0.70 AC Good 1.9 AC Good 1.9 3811 Eremption 1826+000 - 1827+rrn 1.O0 AC 1.3 AC Falr 1.3 3811 34.U7 9.393 u.4 5.r0 1827+@0-1a$+200 620 AC Good 1.7 AC Good 1.7 3€11 aemptjon 5.1'l 18i3+200 - 18iB+5m 0.30 AC Fair 3.7 AC Fair 3811 17.175 10.958 5.12 183+5m-1839+mO AC Good 1.7 Good 1.7 3811 E)(ernption 5.13 183|000 - 1847+7m 8.70 AC 2.3 AC Feir 2.3 3811 241.@4 6.277 €.6 514 1U7+7@ - 1U7+493 0.19 PCCP 3.3 PCCP Fei 3At I 4.011 34.5

8. Bulidnoncotabdo R( 47.81 t1.290 0.160 22r 'ad 6.1 1@8+000 - 1608+600 North Cotabdto 0.d) AC Faaf 3.5 AC Falr 3.5 3016 8.626 2.509 31.4 6.2 1m6+600 - 1m8+Em 1st EngineerirE Oi€ 0.20 AC B.d 6.7 AC Bed 3015 5.66 l.Sll 31.7 6.3 1m€+600 - 1612+22 3.,t8 AC Fear 2.4 AC Fir 2.4 3016 44.473 2.& &.5 6.4 1412+2n - 1614+M 1.72 PCCP 5.4 PCCP Fair 3016 1.616 0.r94 14.1 6.5 1 61 4+CrD - 1 615+900 1.$ PCCP Good 6.2 PCCP Good 6.2 3016 Ex6mption 6.6 1615+900 - 1617+000 1.10 PCCP Faar 6.0 PCCP 6.0 3016 3.@8 0.583 24.O 4.7 1 61 7+000 - I 619+000 2.6 PCCP Good 8.0 PCCP Good 6.0 3016 Exemption 6.8 1 61 9+m0 - 1 6mam0 1.m PCCP PCCP Feir 7.2 3016 7.79 1.6rcl2 379 16:0+@0 - 1620+944 094 PCCP Good 6.6 PCCP Good 2.4 3015 Exemdirr .t 6.10 16m+944 - 162+1W t6 AC Good 2.4 AC G€.d 2.4 3016 Eremption 611 1622+1m - 1651+00O 28.90 PCCP Fair 5.4 PCCP 5.4 3016 24.171 0.173 r7.8 6.12 1 651 +000 - 1 631+0m 3.00 PCCP Good 4.7 PCCP Good 4.7 3016 Exemption 6.13 1 654+m0 - 1 &55+61 0 1.61 PCCP Falr 4.6 PCCP 4.6 3016 -1.795 4226 11.0

7. Palocadger.orrrc Itord ?jz-ae 0e.fio 0,437 2aa 7.1 91 5+1 90 - 917+0fi) Leyte lC Engg. Dir L80 AC 5.5 Fair &71 72.8€6 5.906 53.5 7.2 91 7+0@ - Sr +560 r45€ PCCP 5.1 PCCP 5.1 4971 47.859 o.7x m.2 7.3 931 +560 - 93+150 1.59 AC Good AC Good 4688 Exemption 7.4 933+1 50 - 938+079 4.93 4.6 PCCP 4.6 2819 6.805 -o.304 9.7

8. D. Mrh.dika Ro{d (lll.rn{aval Highway 14.86 10,20 26.{1 26.3 8.1 919+500 - 934+3m Leyte lst Eng'g. Dil 14.86 PCCP 5.4 PCCP Fai/Bad 5.4 4971 ro.240 26.941 25.3

,. Drn4u.r. orth Ro. d (M.njuyod- Lr Ubcrtd) 68.23 206.9n 0.31€ 19.7 50+742 - 1 08+967 27.il PCCP F6ir 4.O n7a -182..r@ 4.452 8.6 1.36 AC Feir 7.5 ?978 31.595 1.e93 n.3 16.9€ AC 6.0 ?97a 4.d24 o.Q7 15.4 12.3€ PCCP,/AC U br jmprv 44 n7a Ercmplion

10. Ounagurta ilod|r Ro6 (L! Libcd.d- Velbh.nnolo) {1.5{ l00.tao 0.0rt 16.t 108+S€7 - 1so+s23 10.82 PCCP Fair 4.O 2974 185.301 0.551 20.6 2.9 PCCP 7.5 2€7A 73.524 o.o27 15.{ AC 6.0 n7a 65.135 0.320 19.3 1.8€ PCCP/AC Undar lmprv 44 n7a E-x€mdlon

11. gdu.n.C.g.y.n d. Oo.llig.n Ro.d (Agu..n dcl tlorte Scc 36,30 ,8.330 0tt8 tg.8 1n2+91O - 12@+A I 20.6{ PCCP 1490 98.830 0.456 19.€ 12.6 PCCP G@d ?t€ r49o b(emplion RESULT OF ECONOMIC EVALUATION AND SENSITIVITY ANALYSIS Lot l.l - Baueng€agulo Road

SGE AR|O 1: D€C1€a3€ tn Tramc SCENARIO 2: 2 Y]!. Dolry In BASE CASE Growth Rrte3 bv 50% lmDlem€ntrtlon SCENARIO 3: 20tg Co.t Overrun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOIAL NET TOTAL TOTAL NET YEAR cosTS BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 212.74 o.o0 -212.7e 212.76 0.00 -212.76 0.00 0.00 0.0c 255.32 0.00 -255.32 2013 E3.'t 1 58.34 -24.7e 83.11 20.74 €2.36 0.00 0.00 0.0c oo 7'l 58.34 -41.38 2014 57.97 u.76 6.7e 57.97 32.10 -25.87 319.14 0.00 -319.14 69.56 u.76 15.2A 2015 33.12 110.35 77.23 33.12 13.O2 9.90 124.6 58.34 -66.32 39.75 110.35 70.60 2016 2,.59 143.45 120.ffi 22.59 62.92 40.32 86.95 u.76 -2.19 27.'l'l 143.45 116.34 2017 0.02 174.19 174.17 0.02 77.96 77.U 49.68 110,35 60.67 0.03 174.19 174.17 q 2018 6.79 211.92 205.12 b_ aY 104.95 ot ta 33.89 113.15 't 09.56 {4 21'1.92 203.7'l 201 I 0.02 261.76 2s'1.74 136.83 136.81 0.03 174.19 '174.16 0.03 2s1.76 1.74 2020 0.02 325.2'l 325.19 0.02 179.41 179.38 't 0.19 211.92 201.73 0.03 325.21 325.19 2021 0.s5 410.72 409.77 0.95 236.55 235.60 0.03 26 t.76 2s1.73 1.14 4'1o.72 409.58 2022 0.02 496.12 496.09 0.02 291.90 291.87 0.03 325.21 325.'t8 0.03 4%.12 496.09 2023 2.4'l 571.40 571.99 2.4'l u2.25 339.84 1.42 410.72 409.29 2.89 574.40 57'1.5'l 2021 11.52 659.17 647.65 11.52 397.38 385.86 0.03 496.12 ,f96.08 13.82 659.17 645.35 m25 48.64 210.15 691.5'l ,18.64 457.03 408.39 3.62 574.40 570.79 58.36 710.15 681.78 m8 o.2a 833.38 833_10 o.28 /199.75 199.17 17.28 659.17 641.89 0.34 833.38 833.04 m27 0.08 921.17 921.09 0.08 55't.25 551.18 72.95 710.15 667.19 0.09 921.17 921.08 2028 68.60 1010.49 941.84 68.66 622.48 554.23 o.42 833.38 832.96 82.39 10 t 0.49 928.10 O7 2029 0.02 1109.84 'I ,109.82 0.o2 A6A 658.94 0.12 92't.'t7 92't.06 0.03 1 t09.84 1t09.81 2030 6.79 't192.10 1,185.30 6.79 706.01 699.2 102.98 1010.49 907.51 8.15 1192.'lO 1 't 83.9.1 2031 0.02 124037 1,280.35 o.o2 751.U 751.62 0.03 'I 109.84 1109.81 0.03 1280.37 128/).U 2032 10.'t 9 1192.10 1 181.9'l 2033 0.03 1240.37 1280.U

EIRR 13.62 EIRR 28.51 EIRR 33.77 EIRR 38.8,4 NPV 1,305.89 NPV 567.85 NPV 860.77 NPV 1,238.88 Blc 9.33 Btc 3.72 B/C 4.45 B/C

NPV/C 6.189 NPV/C '1.962 NPV/C 2.617 NPV/C 4.455 RESULT OF ECONOMIC EVALUATION AND SENSITIVITY ANALYSIS Lot 1.2 - Olongapo€ugallon Road

SCENARIO 1: Decr€aro in TrafrIc SCENARIO 2: 2 Y]!. Dolay in BASE CASE Growth Rates bv 50% lmplementation SCENARIO 3: 20% Co3t Overrun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 3.90 4.O2 -3.92 3.90 -o.o2 -3.92 0.00 0.00 0.00 4.68 -0.02 -4.74 20'13 8.32 -26.06 26.32 4.69 -21.ffi 0.00 0.00 0.00 31.58 0.26 -31.32 2014 83.63 1.U -81.99 83.63 't6.12 -67.52 0.00 -5.85 '100.36 1.64 -98.72 2015 140.84 8.98 -131.86 140.84 28.89 -11't.94 39.48 0.26 -39.22 169.01 8.98 -160.02 20't6 125.52 36.08 -E9./t4 125.52 40.50 -85.02 '125.45 1.64 -123.81 '150.62 36.08 -114.5,{ m17 4.79 64.89 60.'t 0 4.79 29.O7 21.28 2't1.26 8.98 -202.27 6,1.89 59.14 2018 18.63 112.23 93.60 't8.63 66.61 47.98 188.28 36.08 -152.20 22.* 1'12.23 89.E8 2019 o.21 166.54 166.33 0.21 100.44 '100.22 7.19 'rn 64.89 ^'f 0.25 166.54 166.29 2020 o.21 221.8 221.37 0.21 139.28 139.07 27.95 112.23 u.29 0.25 22'1.58 221.33 2021 287.41 287.U 0.37 '185.25 184.88 o.32 '166.54 '166.23 o.44 247.41 286.97 2022 o.21 3-t1.26 371.04 0.21 242.81 242.60 0.32 221.58 221.26 o.25 37'1.26 371.00 2023 1.73 472.89 471.15 1.73 31 1.63 309.90 0.55 247.4'l 286.86 2.08 472.89 470.81 2024 2.29 580.64 578.35 2.29 382.53 380.23 o.32 371.26 370.94 2.75 580.64 577.E9 2025 0.69 @r.98 664.29 0.69 43s.38 1U.70 2.60 472.E9 470.29 0.82 664.98 664.16 20?6 o.71 71E.E3 718.',t3 0.7'l $7.62 ,166.91 3.44 580.6,1 577.21 0.85 71E.E3 717 .59 2027 2.24 766.07 763.63 2.24 495.45 493.2'l '|.03 664.98 663.95 2.69 766.07 763.38 2024 2.AA 8't8.62 815.75 2.88 czo.u.t 523.15 1.06 7'18.83 717.77 3.45 818.62 815.17 202€ 2.U 875.81 873.47 2.U 558.66 556.32 3.36 766.07 762.71 2.81 875.81 873.01 2030 27.23 937.69 910.47 27.23 601.20 573.97 4.31 818.62 E14.31 32.67 937_69 905.02 2031 11.91 '1oo7.43 995.53 11.91 635.95 624.05 3.51 875.81 872.31 11.29 1007.43 993.14 2032 40.84 937.69 896.85 2033 '17.86 1007.43 oao q7

EIRR 39.63 EIRR 33.65 EIRR 31.73 EIRR 35.9t NPV E49.30 NPV 491.51 NPV 553.,f5 NPV 802.35 Btc 12.49 BIQ 9.00 3.47 B/C 10.03

NPV/C 8.677 NPV/C 6.035 NPV/C 1.804 NPV/C 0.812 RESULT OF ECONOi,IIC EVALUATION AND SENSITIVITY ANALYSIS Lot 2.la - Palo4arigan-Ormoc Road

SCENARIO 1: Dac|le3e in Trettic SCEI,IARIO 2: 2 Yl.|3. Delay in BASE CASE Growdr R.t 3 bv 50% lmDlemontation SCENARIO 3: 20'6 co3t ov..run TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR cosTs EENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosrs BENEFITS BENEFITS 2012 10.35 0.00 -'10.35 10.35 0.00 -10.35 o.o0 0.00 0.00 12.42 0.00 -12.42 2013 0.04 3.24 3.24 0.04 0.53 0.49 0.00 0.00 0.00 0.04 3.24 3.20 2014 116.88 3.89 -'t 12.98 116.88 25.09 -91.78 15.52 0.00 -15.52 140.25 3.89 -136.36 ,t 2015 0.00 27.83 27.42 0.00 16.00 15.99 0.06 3.24 4a 0.00 27.43 27.42 2016 0.00 29.75 29.75 0.00 17.2E 17.27 175.32 af|o -171.42 0.00 29.75 29.75 2017 0.00 31.90 31.90 0.00 14.71 14.71 0.00 27.43 27.82 0.00 'll on 31.90 2018 0.00 34.36 34.36 0.00 20.6 20.36 0.00 29.75 29.75 0.00 34.36 34.36 2019 0.00 37.15 37.14 0.00 22.24 22.23 0.00 31.90 31.90 0.00 37.15 s7.14 2020 0.@ 40.45 40.45 0.00 24.47 24.47 0.00 34.36 34.36 0.00 40.45 40.45 2021 0.00 44.26 44.26 0.00 27.O5 27.O5 0.00 37.15 37.14 0.00 44.26 14.26 2022 0.00 48.69 ,18.69 0.00 30.05 30.05 0.00 40.45 40.45 0.00 48.69 4E.69 2023 0.00 53.6E 53.67 0.00 33.42 33.41 0.00 44.26 44.25 0.00 53.68 53.67 2024 10.31 59.42 49.1 | 10.31 39.49 29. 18 0.00 /r{1.69 48.69 12.37 59..12 47.O5 2025 0.00 69.74 69.73 0.00 44.26 44.26 0.00 53.68 53.67 0.00 69.74 2026 0.00 8r.82 81.82 0.00 52.47 52.47 15.47 59.42 43.95 0.00 81.82 81.82 2027 0.00 90.08 90.08 0.00 57.85 57.85 0.00 69.74 69.73 0.00 90.08 90.08 2024 0.00 93.37 93.37 0.00 59.74 59.74 0.00 81.82 81.82 0.00 93.37 93.37 2029 0.00 96.85 96.85 0,00 61.74 61.74 0.00 90.08 90.08 0.00 96.E5 96.84 2030 0.00 100.56 100,56 0.00 63.88 63.88 0.00 93.37 93.37 0.00 '| 00.56 100.56 203'l 0.00 104.53 104.53 0.00 66.17 66.17 0.00 96.85 96.E4 0.00 104.53 104.52 2032 0.00 100.56 100.56 2033 0.00 104.53 104.52

EIRR n.8 EIRR EIRR n.a2 EIRR 25.22 NPV 99- 10 NPV 40.E2 NPV 41.83 NPV E,I.5E Btc 2.24 B/C 1.61 B/C '1.45 B/C 1.85

NPV/C 0.937 NPV/C 0..t55 NPV/C NPV/C o.636 RESULT OF ECONOMIC EVALUATION AND SENSITMTY ANALYSIS Lot 2.1b - D.ang ilahr.like Road (Uloan-ilrval Highway)

SGENARI9 l: t}.crlaae ln Traffic SCENARIO 2: 2 Yr3, Oolay in BASE CASE GroMh Rrto3 bv 50% lmDlementation SCENARIO 3: 20% Co3t Ovenun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR co9Ts BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 0.01 0.oo -0.01 0.01 0.00 -0.01 0.00 0.00 0.00 0.02 o.o0 -0.02 2013 0.01 -0.12 -0.13 0.01 -0.10 -0.11 0.00 0.00 0.00 o.o2 -o.12 -0.14 2014 0.0'l -0.28 -0.29 0.01 -0.22 -0.23 o.o2 0.00 0.02 -o.28 2015 0.01 -o.44 -0.,1€ 0.01 -0.35 -0.36 0.02 -o.14 o.o2 -o.44 -o.46 2016 0.01 -0.62 -0.63 0.0'l -0.49 -0.50 o.o2 -0.28 -0.30 o.o2 -0.62 -0.63 2017 0.01 -0.E1 -o.42 0.01 -0.63 -0.64 0.02 -o.44 -0.46 0.02 -0.81 -0,82 2018 0.01 -1.00 -'1.o2 0.01 -0.78 0.02 -0.64 0.02 -1.00 -.t.o2 20r9 0.01 -1.21 -'1.23 0.01 -0.94 -0.95 0.02 -0.81 -o.82 o.o2 -1.21 -1.23 2020 0.01 -1.14 -'1.45 o.01 -1.11 o.02 -1.00 -'1.02 0.02 -1.44 -1.45 2021 0.01 -1.68 -1.69 0.0'l -1.28 -1.30 0.02 -'1.21 -'1.23 0.02 -1.68 -1.69 2022 0.01 -1.93 -1.94 0.01 -'t.47 -1.4E 0.02 -1.44 -1.46 0.02 -1.93 -1.94 2023 89.11 -2.19 -91.30 E9.11 19.82 €9.29 133_66 -1.6E -135.34 106.93 -2.19 -109.13 2024 0.00 32.08 32.08 0.00 22.15 22.'15 0.00 -1.93 -1.93 0.00 32.08 32.08 2025 0.00 33.,t8 33.48 0.00 23.U 23.O4 0.00 -2.19 -2.19 0.00 33.4E 33.48 2026 0.00 34.96 34.96 0.00 23.97 23.97 0.00 32.0E 32,08 0,00 34.96 34.96 2027 0.00 36.53 36.53 0.00 24.97 24.97 0.00 33.48 33.48 0.00 ta <,1 2028 0.00 38.21 34.21 0.00 26.03 26.03 0.00 34.96 34.96 0.00 34.21 8.21 2029 0.(n 40.01 40.01 0.00 27.16 27.16 0.00 36.53 36.53 0.00 40.01 40.01 2030 0.00 41.93 41.93 0.00 28.37 28.37 0.00 34.21 3A.21 0.00 41.93 41.93 2031 0.00 44.00 44.00 0.00 29.68 29.68 0.00 40.01 40.01 0.00 44.00 44.00 2032 0.00 41.93 41.93 2033 0.00 .f4.00 .t4.00

EIRR EIRR 22.15 EIRR I I .69 EIRR 21.54 NPV 10.24 NPV 5.39 NPV (4.66) NPV 6.90 B/C 36.59 Bl/C 24.O2 0.68 24.fi

NPV/C 26.941 NPV/C 17.413 NPV/C (0.127) NPV/C 't7.821 RESULT OF ECONOUIC EVALUATION AND SENSITIVITY ANALYSIS Lot 2.2 - lloilo.C.piz Ro.d (Old Roubl

SGENARIO l: Declta3e in Traftic SCENARIO 2: Z Yrt. Delay in BASE CASE Growth Rste3 bv 50% lmolementation SCEI,IARIO 3: 20% Co3t Orrerrun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTA NET YEAR cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 u.12 o.00 -54.12 u.12 0.(x) -54.12 o.o0 0.00 0.00 64.94 0.00 -64.9{ 20'13 46.5€ 27.23 -19.33 {6,56 20.27 -26.29 0.00 0.00 0.00 55.87 27.23 -28.4 2011 179.10 53.21 -125.89 't 79.10 67.57 -111.53 81 .18 0.00 -81 .18 214.92 53.21 -161.71 2015 o.22 109.98 109.76 o.22 66.36 66.14 69.84 27.23 -42.61 o.26 109.98 109.72 ,| 2016 4.86 226.61 2't1.73 14.88 159.r8 144.30 268.65 53.21 -215.44 't7.8 226.61 206.75 2017 o.21 fig.77 509.56 0.21 370.29 370.08 0.33 't 09.9E 109.65 o.25 s09.77 509.52 2018 0.21 794.20 793.99 0.21 578.00 577.79 22.32 226.61 2U.29 0.25 791.20 793.95 2019 o.21 951.12 953.91 0.21 690.53 690.32 0.32 509.77 509.46 0.25 954.12 o('t a? 2020 27.41 1039.62 1,012.21 27.41 753.19 725.78 0.32 794.20 793.89 32.89 1039.62 1006.73 2021 o.21 1099.76 '1,099.55 0.21 786,48 786.27 o.32 954.12 953.81 0.25 1099.76 1099.51 2022 2.U 1158.53 1,155.69 2.84 824.19 821.35 41.12 1039.62 998.51 3.4'l 1 15E.53 1'155.13 2023 0.76 1226.19 't,225.13 0,76 E66.36 865.60 0.32 1099.76 1099.44 0.91 1226.'t9 1225.28 2024 ,16.5,t 12E6.73 1,240.19 {6.54 914.76 86,8.22 4.26 'ilta 42 1154.2? 55.85 1286.73 1230.89 2025 2.35 '1361.41 1,359.06 2.35 950.28 947.93 1.'14 12?6.19 '1225.O5 2.42 1361.41 1358.59 2026 o.21 1426.52 1,426.31 o.21 988.71 988.50 69.81 1286.73 't216.92 o.25 't426.52 1426.21 2027 o.32 1486.07 't,485.75 o.32 't023.'t2 1022.80 1361 .41 1357.89 0.38 '1486.07 1485.69 2028 0.,f9 15U.87 1,534.38 0.,19 10/.9.77 1049.28 0.32 1426.52 1426.21 0.59 1534.87 1534.29 2029 r 66.00 158,1.91 I,4't 8.91 166.00 1120.80 954.80 0.48 1486.07 1485.59 199.20 1584.91 't 385.71 2030 27.61 1661.69 1,634.08 27.6'l 1123.93 1096.32 0.74 1534.87 153/..14 33.13 1661.69 1628.55 2031 0.48 1729.29 1,728.81 0.48 '1154.85 249.OO 1584.91 1335.91 0.58 1729.29 1724.7'l 2032 1661.69 1661.69 2033 1729.29 1729.29

EIRR 87.83 EIRR 71.81 EIRR 69.29 EIRR 7492 NPV 3,096.56 NPV 2,139.28 NPV 2,084.85 NPV 3,048.61 8VC 23.70 B/C 17.29 Btc '13.25 Er/C 18.51

NA//C 17.'t 65 NPV/C 12.297 NPV/C 9.831 NPV/C 't3.228 RESULT OF ECONOMIC EVALUATION AND SENSINUTY ANALYSIS Lot 2.3 - Dumaguelo North Road (Manjuyod - La Llbert|d)

scENARt(,1: DOGlratO tn Tratnc SGENAR|O Z: Z Y'!. Oa||y In BASE CASE Grcwth R!te3 bv 50% lmDl€mgntatlon SCENARIO 3: 20% Cost Overrun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR cosTs BENEFITS BENEFITS cosTS BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 549.10 0.00 -649.10 649.10 o.o0 €49.10 o.o0 0.00 0.0c 714.92 0.o0 -lta.92 2013 0.m 57.90 57.90 0.00 28.95 28.95 0.00 0.00 0.0c 0.00 57.90 57.90 2014 0.00 85.15 85.15 0.00 11.U 4'l.u 973.66 0.00 -973.6€ 0.00 85.15 85.15 2015 0.m 110.30 '110.30 0.00 5'1.74 51.74 0.00 57.90 57.9C 0.00 110.30 '| 10.30 2016 0.0c 1r6.94 116.94 0.00 53.17 53.47 0.00 85.15 0.00 I 16.94 116.94 2017 0.00 't21.41 121.41 0.00 55.45 55./t6 0.00 110.30 110.30 0.@ 124.11 121.11 m18 0.00 133.40 133.40 0.00 57.94 57.94 0.00 116.94 116.94 0.00 133.40 133.40 2019 0.00 141.93 141.9s 0.00 60.16 60.16 0.00 121.11 124.41 0.00 1,11.93 141.93 m20 0.00 149.37 149.37 0.00 61.83 61.83 0.00 133.,10 133.40 0.00 1,19.37 't19.37 m21 0.00 156.65 156.65 0.00 63.29 63.29 0.00 141.93 '1,t1.93 0.00 156.65 '| 56.65 202 -215.23 157.32 102.55 -215.23 61.82 307.(X 0.00 149.37 't 49.37 -291.27 157.32 451.59 2023 0.00 179.97 179.97 0.00 69.40 69.40 0.00 156.65 156.65 o.o0 '179.97 't79.97 2021 0.00 191.59 '191 .59 0.00 72.10 72.'tO -367.84 157.32 525.16 0.00 191.59 191.59 m25 0.00 204.36 2U.6 0.00 75.05 0.00 179.97 179.97 0.00 204.36 20.1.36 202s 0.00 218.45 218.15 0.00 78.27 78.27 0.00 191.59 191.59 0.00 218.45 214.45 2027 0.00 2U.15 2U.15 0.00 81.85 81.85 0.00 204.. 2U.# 0.00 2U.15 2U.'t5 2024 0.00 251.60 251.60 0.00 85.78 85.78 0.00 21a.$ 218.45 0.00 251.60 251.60 20?9 0.00 271.'t6 271.16 0.00 90. t2 w.12 0.00 2U.15 234.15 0.00 271.16 271.16 2030 0.00 292.74 292.74 0.00 .42 94.82 0.00 251.60 251.60 0.00 292.74 292.74 2031 0.m 316.50 3t6.50 0.00 99.90 99.90 0.00 271.16 271.16 0.00 3r5.50 316.5{) 2032 0.00 292.74 292.74 m33 0.00 3 t6.50 316.50

EIRR 19.66 EIRR a.7a EIRR t,r.t 6 EIRR | 7.03 NFV 205.30 NPV (2'12.87) NPV (38.23) NPV 102.96 B/C 1.18 B/C 0.54 B/C 0.82 B/C 1.00 NPV/C 0.316 NPV/C (0.328) NPV/C (0.03e) NF\//C o.132 sl 3.68 4.24 SI 3.72 SV 27.'t6 23.57 SV 26.87 RESULT OF ECONOMIC EVALUATION AND SENSINVIW ANALYSIS Lot 2.4 - Dumaguab orth Ro.d (1,, Llb€dad-Vallhe]mo3ol

S(jENARIO 1: DOCr€ttO tn I rrmc SCENARIO 2: 2 Y]!. Dehy In BASE CASE GrcYvth R.t.3 bv 50% lmplementetlon SCENARIO 3: 20% Co3t Overrun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR cosTs BEI{EFITS BENEFITS cosTs BEI'IEF|TS BEI'|EF|TS cosrs BENEFITS BENEFITS cosTs AENEFITS BENEFITS 2012 1 ,161.O3 0.00 1 161.O3 1 161.03 0.00 -1',tE1.O3 0.00 0.00 0.00 1417.24 0.00 -1417.24 2013 0.0c 58.19 58.'t S 0.00 29.10 29.10 0.00 0.00 0.00 0.00 ta to 58.1S 2011 0.00 69.38 69.38 o.o0 33.80 1,771.55 o.o0 -'t771.55 0.00 69.38 69.3€ 2015 0.00 85.39 85.3€ 0.00 40.49 40.49 0.00 58.19 58. 19 0.00 85.39 85.39 2016 0.00 117.31 117.3'l 0.00 53.97 53.97 0.00 69.38 ao at 0.00 117.31 1'17.31 m17 0.00 161.85 161.85 0.00 72.OO 72.O0 0.00 85.39 .'C.JY 0.00 161.85 't 61.85 2018 0.00 197.62 '197.62 0.00 85.13 85.13 0.00 't'17.31 117.31 0.00 197.62 197.62 2019 0.00 220.6 220.68 0.00 92.U 92.54 0.00 161_85 161.85 0.00 220.@ 20.68 2020 0.00 211.A2 211.a2 0.00 98.71 94.74 0.00 197.62 't97.62 0.00 21't.82 241.42 2021 0.00 258.41 258.41 0.00 102.81 102.81 0.00 220.68 220.6 0.00 258.41 258.41 202 0.00 ffi.u 266.34 0.00 103.33 103.33 0.00 241.42 211.42 0.00 266.34 266.31 2023 -877.13 253.16 I r30.29 -877.13 95.12 972.25 0.00 258.41 254.41 -1052.56 253.'t 6 1305.72 2021 0.00 303.41 303.41 0.00 112.'t7 112.17 0.00 266.34 266.34 0.00 303.4'l 303.41 2025 0.00 318.31 318.31 0.00 114.83 114.83 .1.315.70 253.16 't 568.86 0.00 3'18.3'l 318.31 2026 0,00 333.72 333.72 0.00 117.45 117 .45 0.00 303.41 303.41 0.00 333.72 339.72 m27 0.00 3,f9.52 349.52 0.00 119.96 '| 19.96 0.00 318.3'l 3't 8.31 o.o0 3/.9.52 349.52 m2a -303.90 9.12 668.32 -303.90 121.92 125.42 0.00 333.72 333.72 -364.68 36,4.42 729.10 2029 0.00 392.82 392.42 0.00 124.27 '128.27 0.00 349.52 349.52 0.00 392.82 392.82 2030 0.00 413.82 413.82 0.00 '131.71 131.7'l -455.85 364.42 420.27 0.00 413.42 113.42 2031 0.00 435.91 435.91 0.00 135.23 135.23 0.00 392.82 392.82 0.00 il35.9l 435.91 2032 0.00 4't3.82 413.82 2033 0.00 /135.91 435.91

EIRR | 6.26 EIRR 8.51 EIRR 12.42 EIRR t 4.43 NPV 't 09.54 NPV (452.82) NPV (232.79) NPV (57.43) B/C 0.9€ Btc 0.48 B/C 0.69 Blc 0.83 NPV/C 0.093 NPV/C (0.383) NPV/C (0.131) NA//C (0.0,11) sl 10.78 SI 13.25 sl '13.53 SV 9.28 SV ,.tc SV 7.39 RESULT OF ECONOIIIIC EVALUATION AND SENSITIVITY ANALYSIS Lot 3.1 - Dipologoroqubta Road

SCENARIO l: DocFaa3o ln Tramc SCENARIO 2: 2 YrS. Del.y In BASE CASE Growth R!te3 bv 50% lmDlom€ntrtion SCENARIO 3: 2096 Co3t Overrun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 0.05 -0.01 -0.06 0.05 -0.01 -0.06 0.oo o.oo 0.00 0.06 -0.01 -0.07 2013 1.39 -0.02 -1.41 1.39 o.25 -1.14 0.00 0.00 0.00 1.67 -0.02 -1.69 2011 8.14 0.30 -7.U 8.14 1RA -6.28 0.08 0.00 -0.08 9.77 0.30 -9.,tG 2015 38.78 1.21 -37.57 38.78 8.68 -30.10 2.09 4.02 .16.54 1.21 45.32 2016 1.4S 8.61 7 .'12 1.49 0.oo 4.17 '12.21 0.30 -11.91 '1.79 8.61 6.82 2017 0.05 11.U 11.79 0.05 7.76 7 .71 5A.17 1.21 -56.96 0.06 11.U 1't.78 2018 4.51 15.26 10.75 4.5r 11.33 6.82 2.24 8.61 6.37 5.41 15.26 9.84 2019 0.05 20.67 20.62 0.05 14.31 14.26 0_08 1't.u 11.77 0.06 20.67 20.61 2020 26.70 26.65 0.05 14.42 14.77 6.77 15.26 8.49 0.06 26.70 26.64 2021 5.83 35.16 29.33 5.83 26.39 20.56 0.08 20.67 20.59 7.00 28.16 2022 0.09 46.44 ,16.35 0.09 33.24 33.15 0.08 26.70 26.03 0.'t 1 $_44 46.34 2023 o.28 s9.57 59.29 0.28 42.6 42.58 8.75 35.16 26.41 0.34 59.57 59.23 2024 0.07 75.27 75.20 0.07 54.16 54.09 o.14 $.44 .16.31 0.08 75.27 75.18 2025 0.32 93.34 93.02 0.32 67.09 6.77 0.42 59.57 59.15 0.38 93.34 92.96 2026 5.88 113.91 '108.03 5.88 82.93 0.t l 75.27 75.16 7.06 113.91 106.85 2027 39.65 '136.25 96.60 J9.OC 106.80 67.15 0.48 93.34 92.86 47.54 136_25 88.67 202E nnn '173.95 '173.87 0.0E '122.U 122.5 8.82 113.9'l 105.09 0.10 173.95 173.85 2029 0.08 195.62 195.54 0.08 137.19 't37 .11 59.4E 136.25 76.77 0.10 195.62 195.52 2030 0.07 202.99 202.92 0.07 141.75 141.68 o.12 173.95 r73.83 0.08 202.99 202.91 2031 0.08 20t33 [email protected] 0.0E 145.57 '145.49 o.'12 195.62 195.50 0.10 209.33 209.24 2032 0.1'l 202.99 202.49 2033 o.12 209.33 209.2'l

EIRR ,t I .39 EIRR 38.25 EIRR 32.89 EIRR 37 36 NPV 135.50 NPV 92.06 NPV 88.23 NPV 127.97 Blc B/C 19.64 Bta 3.77 Btc 18.2€

NPV/C 16.712 NPV/C 14.113 NPV/C 2.103 NPV/C 13.091 RESULT OF ECONOMIC EVALUATION AND SENSITIVITY ANALYSIS Lot 3.2 - Bdu.n€.g.yrn de Om-lligEn Road (MEaml3 Oriental Sectionl

SCEI{ARIO 'l: Decrsa3e tn Trafiic SCENARIO 2: 2 Yr:. oelay in BASE CASE Growth Rrt33 bY 50% lmplomentatlon SCENARIO 3: 20% cost overrun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 57.5€ 0.00 -57.59 57.59 0.00 -57.59 0.00 o.o0 0.00 69.11 0.00 -ttv. 11 2013 0.00 39.40 39.40 0.c() 19.70 19.70 0.00 0.00 0-00 0.00 39.40 39.40 2014 0.00 51.98 51.98 0.00 25.43 25.43 86.39 0.00 €6.39 0.00 5t.98 51.98 2015 0.00 0.00 40.o2 40.o2 0.00 39.40 39.40 0.00 83.78 2016 o.00 13i1.49 't33.49 o.00 62.04 62.M 0.00 51.98 51.96 0.00 133.49 133.49 2017 0.00 193.64 193.64 0.00 E7.37 E7.37 0.00 83.7E 83.78 0.00 193.64 193.64 2018 0.00 243.32 243.32 0.00 123.65 123.6s 0.00 133.49 133.49 0.00 283.32 283.32 2019 0.00 416.29 416.29 0.00 171.5 '174.6 0.00 193.64 193.6/t 0.00 416.29 416.29 2020 0.00 514.85 514.85 0.00 209.11 209.11 0.00 2E3.32 283.32 0.00 514.65 514.85 2021 0.00 529.80 529.80 0.00 210.15 210.15 0.00 416.29 4'16.29 0.00 529.80 529.80 2022 0.00 538.07 538.07 0.00 204.25 204.25 0.00 514.85 514.85 0.00 538.07 53E.07 2023 0.00 519.81 519.81 0.00 't95.89 195.89 0.00 529.80 529.80 0.00 519.81 519.81 2024 0.00 492.51 492.51 0.00 181.48 't81.48 0.00 538.07 538.07 0.00 492.51 492.51 2025 0.00 487.81 487.41 0.00 175.88 175.88 0.00 519.81 519.81 0.00 4E7.81 487.81 2026 0.00 500.10 500.10 0.00 175.92 175.92 0.00 492.5'l 492.51 0.00 500.10 500.10 2027 0.00 512.77 512.77 0.00 176.05 't 76.05 0.00 447.41 487.81 0.00 512.77 512.77 2024 0.00 5'17.72 517.72 0.00 173.39 173.39 0.00 500.10 500.10 0.00 517.72 517.72 2029 0.00 524.59 524.59 0.00 171.71 171.71 0.00 512.77 512.77 0.00 524.55 524.59 2030 o.00 551.68 551.68 0.00 176.49 176.49 0.00 517.72 517.72 0.00 551.68 551.68 2031 0.00 577.37 577.37 0.00 179.97 179.97 0.00 524.59 524.59 0.00 577.37 577.37 2032 0.00 551_68 551.68 2033 0.00 577 .37 577.37

EIRR 112.22 EIRR 70.73 EIRR a7.62 EIRR t00.17 NPV 1,374.39 NPV 517.65 NPV 1,020.30 NPV 1,364.37 B/C 24.67 Btc 9.83 Er/c 16.45 Bic 20.56 NPV/C z.t.aKr5 NPV/C 8.988 NPV/C 11.8't0 NPV/C 19.741 sl 't.69 sl 1.18 o.o7 SV 59.32 SV 85.09 sv 1,473.14 RESULT OF ECONOMIC EVALUATION AND SENSITIVITY ANALYSIS Lot 3.3 - Butuan-C.gEyan d. Orc-lligrn Road (Agu3an del Norte S6ction)

SCENARIO 1: Decneaao in Tralfic SCENARIO 2: 2 Yrs. Delay in BASE CASE Growth Rate3 bv 50% lmplementation SCENARIO 3: 20% Co3t Overun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR cosTs BENEFITS BENEFITS cosTs BENEFITg BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 216.(x' o.q) -2 t6.09 216.09 0.00 -216.09 0.00 0.00 o.o0 259.31 o.oo -259.31 2013 0.00 't9.23 '19.23 0.00 9.61 9.61 0.00 0.00 0.00 0.00 19.23 19.23 2014 0.00 22.O5 22.O5 0.00 10.80 10.80 324.13 0.00 -324.13 0.00 22.05 22.05 20't5 0.00 24.98 24.98 0,00 11.96 11.98 0.00 '19.23 19.23 0.00 24.98 24.98 2016 0.00 28.O7 28.O7 0.00 13.18 13.16 0.00 22.05 22.05 0.00 24.07 28.07 2017 0.00 31.35 31.35 0.00 14.41 '14.41 0.00 24.98 24.98 0.00 31.35 31.35 2018 0.00 v.u 34.94 0.00 15.72 15.72 0.00 24.O7 24.07 0.00 34. 34.94 2015 0.@ 3E.98 38.98 0.00 17.15 17.15 0.00 3't.35 31.35 0.00 38.98 38.98 2020 0.00 43.51 43.51 0.00 18.71 18.71 0.00 34.94 34.94 0.00 43.5't 43.51 2021 0.00 48.58 48.58 0.00 20.4'l 20.41 0.00 38.98 38,98 0.00 48.58 48.58 2022 0.@ u.29 54.29 0.00 22.28 22.28 0.00 43.51 43.51 0.00 54.29 54.29 2023 0.00 60.72 0.00 24.9 24.U 0.00 48.58 48.58 0.00 @.72 o,u.I z 2024 0.00 6E.00 68.00 0.00 26.62 0.00 54.29 54.29 0.00 68.00 68.00 2025 0.00 76.25 76.25 0.00 29.'t3 29.13 0.00 60.72 60.72 0.00 76.25 76.25 2026 0.@ 85.57 0.00 31.89 31.89 0.00 68.00 6E.00 0.00 85.57 85.57 2027 0.00 96.23 9€.23 0.00 34.97 34.97 0.00 76.25 76.25 0.00 96.23 96.23 m28 0.00 108.44 108.44 0.00 38.41 38.41 0.00 85.57 85.57 0.00 108.44 108.44 2t29 0.00 120.60 120.60 0.00 41.73 41.73 0.00 96.23 96.23 0.00 120.60 120.60 2030 0.00 124.&4 124.U o.o0 43.65 43.65 o.oo 104.44 108.14 o.oo 124.44 124.84 2031 0.00 133.30 133.30 0.00 44.30 44.30 0.00 120.60 120.60 0.00 133.30 133.30 2032 0.00 't28.U 12A.U 2033 0.00 '133.30 '133.30

EIRR 19.60 EIRR as1 EIRR 1421 EIRR I6.90 NPV 98.63 NPV (93.86) NPV (43.94) NPV 30.30 EVC 1.05 B/C 0.43 Btc u.o! B/C 0.86 NPV/C 0.456 NPV/C (0.434) NPV/C (0.136) NPV/C o.'t'17 sl a

SGENAR|O 1: DeCrcrs€ tn Taatnc SCEiIARIO 2: 2 Yr3. Dolry in BASE CASE Growth R.tes bv 50% lmplomontation SCEI.IARIO 3: 20% CoEl Overrun TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET TOTAL TOTAL NET YEAR cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS cosTs BENEFITS BENEFITS 2012 1.2n 0.(rc -1.25 1.29 0.00 -1.4 o.o0 0.00 0.00 't.54 o.ql -1.54 2013 3.72 0.19 -3.53 3.72 0.64 -3.08 0.00 0.00 0.00 1.17 0.19 -1.28 2014 219.33 0.32 -219.O2 2'19,33 44.74 -174.59 1.93 0.00 -1.93 263.20 o.32 -42.48 2015 0.01 35.73 0.01 18.77 '18.76 0.19 -5.39 0.01 35.73 35.72 2016 21.20 37.51 16.3{ 24.fi 3.15 329.00 o.32 -328.68 25.+5 37.51 12.6 2017 0.01 12.11 12.13 0.01 2'25 2.24 0.02 35.73 35.71 0.01 42.11 42.13 20'18 0.01 45.51 45.50 0.01 21.44 24.43 31.81 37_51 0.01 45.51 45.50 20't9 0.01 49.43 19.42 0.01 27.O0 26.99 o.o2 42.'14 42.13 0.01 49.43 49.4'l m20 0.01 54.13 u.12 0.0'l 30.13 30.12 0.02 /15.51 45.50 0.01 54.13 54.12 2!21 0.01 59.91 59.8S 0.01 34.01 34.00 0.02 49.43 49.41 0.01 59.91 59.89 m2 0.01 67.13 67.12 0.01 38.90 38.89 0.02 54.13 u.12 0.01 67.13 67.12 2023 0,01 75.67 75.66 0.01 44.66 ,14.65 0.02 59.91 5q ao 0.01 75.67 75.66 m21 L38 85.66 84.23 1.38 51.64 50.26 o.o2 67.13 67.1 1 1.65 85.66 84.01 2025 0.04 97.62 97.58 0.(N 59.33 59.29 0.02 75.67 75.65 0.0,1 97.62 97.57 202F, o.21 I 10.55 110.34 o.21 67.88 67.67 2.6 85.66 83.60 o.25 1r0.55 t lo.30 2027 21.22 126.40 105.18 21.22 ea to 62.37 0.05 97.62 97,56 25.46 126.40 r00.93 2028 0.01 116.2 146.21 0.01 90.62 90.61 0.3't 'fi0.55 110.24 0.01 146.22 146.21 2029 3.06 '158.00 1U.U 3.66 98.79 95.13 31.83 125.40 91.57 4.40 158.00 153.61 2030 0.01 16,f.34 16.1.33 0.01 101.30 101.29 0.02 1$.22 146.21 0.01 1&t.34 16/1.33 2031 0.01 170.62 170.61 0.01 |M.75 101.74 5.50 158.00 152.51 0.01 170.62 170.61 2032 0.02 164.34 164.33 2033 0.02 170.62 170.60

EIRR 22.35 EIRR 16.71 EIRR 15.63 EIRR I9. t,l NPV 91.29 Nnr' 16.50 NPV NPV 58.98 B/C 1.62 B/C 1.14 B/C Btc 1.33

NPV/C 0.469 NPV/C 0.106 NPV/C 0.036 NPV/C o.252 Annex 9 ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK (EARF) Road Sector Institutional Development and Investment Program (RSIDIP)

ANNEX 9 : ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK (EARF)

A. Introduction

1. The environmental assessment and review procedures are formulated to serve as a guide in the procedure of assessing the existing environmental condition of the proposed road projects, in the identification of the potential impacts during the pre- construction, construction and operation phases of the project, and in the preparation of the environmental management and monitoring plan. Guidelines on the review of the assessment reports is similarly designed to evaluate the completeness of the document, if issues and concerns are well addressed and its compliance with the prescribed presentation of required information. 2. The EARF will be applied for the proposed improvement of selected roads under Tranches 2 and 3 of the Road Sector Improvement Project (RSIP). The EARF was developed based on the procedures stipulated in the Government’s Department of Environment and Natural Resources (DENR) and ADB Environmental Guidelines and Policy of 2003.

B. Overview of Type of Road Projects to be Assessed

3. Tranches 2 and 3 roads are national thoroughfares recommended for asset preservation and improvement. The project will consist of approximately twenty two (22) road projects which entail individual road sites that have been provisionally selected for upgrading situated in the three large islands of the Philippines namely: Luzon, Visayas and Mindanao. 4. Table 1 provides a list of the 22 roads that have been provisionally identified for upgrading. Their selection was based on their condition and their potential contribution for economic development and the Government’s social equity policy. This provisional selection covers 1,555.018 kilometres of road. 5. Due to the fact that the roads that will be selected for upgrading are all existing roads, the most significant adverse effects associated with the location, design and operation of the road have already been occurred. The potential environmental impacts of significance will occur during the construction phase. The construction work will typically consist of: • Excavation and disposal of unsuitable materials from road substrate, shoulders and cuttings; • Placement and compaction of road base; • In some cases parts of the road will be widened which will require removal of vegetation directly adjacent to the road; • In other parts the roads will be raised to prevent flooding; • Existing bridges will either be sealed or replaced; and, • The construction of new culverts and extension of existing culverts to improve drainage and reduce erosion damage.

KEI in association with SKI and DCCD Annex 9-1 Road Sector Institutional Development and Investment Program (RSIDIP)

6. Typical roads will be improved from poor/bad condition of the asphalt or concrete pavement to PCCP/ACP reconstruction and AC overlay with replacement of some bridges. Based on preliminary engineering inventory of the proposed subproject sites, none will have major alignment deviations. Construction materials such as sand, gravel, and quarry/borrow material will be sourced from the surrounding areas and brought to the site. 7. Post-construction impacts of the road upgrade that have been identified are associated with improved access such as: • increased traffic volumes; • possible increases in agricultural activity in the areas; and, • increased temporary (tourism) and permanent population densities. 8. In addition, social impacts associated with outside influences on rural communities such as: • the erosion of traditional cultural values and practices; • rural to urban migration and possible increases in crime such as drug trafficking. 9. The increase in impervious surfaces due to the sealing of the road combined with increased traffic densities could also have an impact on water quality, although this is more likely to be offset by improvements in drainage systems surrounding the road.

C. Country’s Environmental Assessment and Review Procedures

1. Environmental Assessment

10. In the country, the Philippine Environmental Impact Statement System (PEISS) established through Presidential Decree (PD) 1586 in 1978 sets a systematic EIA System and the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR) is mandated as the lead agency in the implementation of the System. 11. The DENR’s Department Administrative Order 2003-30 along with its Revised Procedural Manual of August 2007 contains more detailed guidelines and procedures in the implementation of the Philippine EIS System. The basic DENR policy governing the implementation of the Philippine EIS system is articulated in Section 1.0, Article I of DAO 2003-30: “Consistent with the principles of sustainable development, it is the policy of the DENR to implement a system-oriented and integrated approach to the EIS system to ensure a rational balance between socio-economic development and environmental protection for the benefit of present and future generations.” 12. Consistent with the ADB’s Environmental Guidelines and Policy of 2003, the EIA study shall determine the environmental impacts of the project and shall provide recommendations/guidance at various stages of the project cycle. DENR Administrative Order 2003-30 serves as guide in the determination of what group the project belongs and the corresponding level of assessment required. Projects are classified into three (3) major groups presented as follows:

 13. Group I (ECPs): ECPs in either ECAs or NECAs – Environmentally Critical Projects in either Environmentally Critical Areas or Non-Environmentally Critical Areas. These projects require the proponent to submit ‘Environmental Impact

KEI in association with SKI and DCCD Annex 9-2 Road Sector Institutional Development and Investment Program (RSIDIP)

Statement’ (EIS) report to secure ‘Environmental Clearance Certificate’ (ECC) from DENR’s Environment Management Bureau (EMB). List of ECPs and ECAs are presented in Table 2.

 14. Group II (NECPs): NECPS in ECAs – Non Environmentally Critical Projects in Environmentally Critical Areas. These projects require proponent to submit either ‘Initial Environmental Examination’ (IEE) Report or ‘Project Description Report ‘(PDR) based on the size of the project (see Table 2) to secure either ECC or ‘Certificate of Non Coverage’ (CNC).

 15. Group III (Non Covered Projects): NECPs in NECS – Non-Environmentally Critical Projects in Non-Environmentally Critical Areas. PDR required to be submitted for Enhancement Mitigation Projects for confirmation of benign nature of proposed activity, and CNC is required to be secured. All other projects shall be at the option of the proponent to prepare a PDR as a basis for CNC, should the proponent opt to secure one. A Project Grouping Matrix was designed to facilitate the determination of EIA Report types needed.

Table 2: List of ECPs and ECAs

A. List of ECPs - As declared by Proclamation No. 2146 (1981)

1. Heavy Industries – Non-ferrous Metal Industries, Iron and Steel Mills, Petroleum and Petro-chemical Industries including Oil and Gas, Smelting Plants

2. Resource Extractive Industries – Major Mining and Quarrying Projects, Forestry Projects (logging, major wood processing projects, introduction of fauna (exotic animals) in public and private forests, forest occupancy, extraction of mangrove products, grazing), Fishery Projects (dikes for/ and fishpond development projects)

3. Infrastructure Projects – Major Dams, Major Power Plants (fossil-fueled, nuclear fueled, hydroelectric or geothermal), Major Reclamation Projects, Major Roads and Bridges

- As declared by Proclamation No. 803 (1996)

4. All golf course projects

B. List of ECA Categories - As declared by Proclamation No. 2146 (1981)

1. All areas declared by law as national parks, watershed reserves, wildlife preserves, sanctuaries

2. Areas set aside as aesthetic potential tourist spots

3. Areas which constitute the habitat of any endangered or threatened species of Philippine wildlife (flora and fauna)

4. Areas of unique historic, archaeological, or scientific interests

5. Areas which are traditionally occupied by cultural communities or tribes

6. Areas frequently visited and/or hard-hit by natural calamities (geologic hazards, floods, typhoons, volcanic activity, etc.)

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7. Areas with critical slopes

8. Areas classified as prime agricultural lands

9. Recharged areas of aquifers

10. Water bodies characterized by one or any combination of the following conditions: tapped for domestic purposes; within the controlled and/or protected areas declared by appropriate authorities; which support wildlife and fishery activities

11. Mangrove areas characterized by one or any combination of the following conditions: with primary pristine and dense young growth; adjoining mouth of major river systems; near or adjacent to traditional productive fry or fishing grounds; areas which act as natural buffers against shore erosion, strong winds and storm floods; areas on which people are dependent for their livelihood.

12. Coral reefs characterized by one or any combination of the following conditions: With 50% and above live coralline cover; Spawning and nursery grounds for fish; Act as natural breakwater of coastlines

16. A typical Environmental Impact Assessment (EIA) Report has the following substantive contents:

i) Project Description, including its location, scale and duration, rationale, alternatives, phases and components, resource requirements, manpower complement, estimate of waste generation from the most critical project activities and environmental aspects, project cost

ii) Baseline Environmental Description (of the land, water, air and people), focused on the sectors and resources most significantly affected by the proposed action

iii) Impact Assessment, focused on significant environmental impacts (in relation to pre-construction, construction/development, operation and decommissioning stages), taking into account cumulative, unavoidable and residual impacts;

iv) Environmental Management Plan, specifying the impacts mitigation plan, areas of public information, education and communication, social development program proposal, environmental monitoring plans (with multi-sectoral public participation for EIS-based projects) and the corresponding institutional and financial requirements/ arrangements.

2. Environmental Review

17. Section 4 of P.D. 1586 states that “No person, partnership or corporation shall undertake or operate any such declared environmentally critical project or area without first securing an ECC issued by the President or his duly authorized representative, which is DENR”. 18. To secure said ECC, the required EIA Report will be prepared by the Proponent or Consultant Based on Section 3.0 of P.D. 1586, all EIA Reports should be submitted to the National Environmental Protection Council or NEPC (now DENR, through Executive Order No. 192) for review and evaluation. The review of the EIA Reports by the Environmental Impact Assessment (EIA) Section of the DENR-EMB is guided by three

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(3) general criteria: (1) that environmental considerations are integrated into the overall project planning, (2) that the assessment is technically sound and proposed environmental mitigation measures are effective, and (3) that the EIA process is based on a timely, informed and meaningful public participation of potentially-affected communities. 19. Review of EIA Reports normally entails an EMB procedural screening for compliance to minimum requirements specified during Scoping, followed by a substantive review of either composed third party experts commissioned by EMB as the EIA Review Committee for PEIS/EIS-based applications, or DENR/EMB internal specialists, the Technical Committee, for IEE-based applications. EMB evaluates the EIARC recommendations and the public’s inputs during public consultations/hearings in the process of recommending a decision on the application. The EIARC Chair signs EIARC recommendations including issues outside the mandate of the EMB. The entire EIA review and evaluation process is summarized in the Review Process Report (RPR) of the EMB, which includes a draft decision document.

D. Specific Procedures to be used for Subprojects under the Sector Loan

1. Responsibilities and Authorities

20. The implementation relative to the construction or improvement of the proposed subproject roads is the responsibility of the DPWH. Environmental studies and processing of the corresponding permits or certificates is performed by the DPWH- ESSO Personnel or Consultants. The required report is submitted to the DENR thru its Environmental Management Bureau (EMB) who is responsible in the review of the submitted document. Decision is made whether the permit or clearance application is approved or denied. 21. During the project implementation, an Environmental Unit (or the ESSO) is formed by the Proponent or DPWH to monitor the implementation or compliance with the conditions provided in the Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) including the Environmental Management and Monitoring Plan (EMMP). Representatives from the Local Government Units, the DENR-EMB, the Provincial Environment and Natural Resources Office, the Community Environment and Natural Resources Office, Department of Health, NGOs and other agencies are sometimes invited by the Proponent to join during monitoring of the subproject. 22. In the preparation of Tender Documents, it is also the responsibility of the Proponent to check if the environmental requirements and the corresponding responsibility of the Contractor are included. The Contractor, on the other hand is responsible in the implementation of the EMMP. A detailed EMMP will be submitted by the contractor to the proponent for approval before the construction commenced. Monitoring and management of the upgraded road during the operation phase will be the responsibility of DPWH.

2. Environmental Criteria of Project Selection 23. Based on DAO 2003-30, the type of EIA Report to be prepared for a road project will be based on Table 3 shown below which is applicable only to new subproject.

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Table 3: Project Type/Size and the EIA Report Required

EIA Report Type Required/Decision Document

Group 1 Group II Group III Project size Project Type Environment Initial Project parameter al Impact Environmental Description Statement Examination (IEE Report (PDR)/ (EIS)/ ECC Report IERR or IEC CNC Checklist IECC)/ ECC Bridges and Length >= 10 km >=80m but <=10 Regardless of viaducts new km length for foot construction bridges; < 80m for other bridges

Roads, new Length with no >= 20km >= 2 km but <20km < 2 km construction and critical slope widening or (including RO- or or RO facilities) Length with critical slope >=10km >=2km but <10km

Tunnels and Length >=10 km < 1 km sub-grade roads and railways

24. For existing road project proposed for asset preservation or improvement, a Project Description Report (PDR) is necessary in the application/processing of Certificate of Non-Coverage (CNC) which is required by most lending institutions. In the case of ADB, an Initial Environmental Examination (IEE) is necessary.

3. Procedures for Environmental Assessment of Road Projects 25. This section provides the procedure in conducting environmental assessment of road projects. To facilitate the work and the processing of environmental clearance required, a Procedural Manual for DENR DAO 2003-30 which is self-explanatory was designed.

 Environmental classification (if necessary), Table 2 provides the list of Environmentally Critical Projects (ECPs) and Environmentally Critical Areas (ECAs) which is used as guide to determine the required study and the DENR Clearance to be secured by the Proponent.

 Specific of free limits as appropriate  Preparation of initial environmental examinations (IEEs)

26. The Revised Procedural Manual for DAO 2003-30 provides flowcharts both for IEE- Based ECC applications and CNC for projects where ECC is not required. CNC is likewise not necessary for existing roads. The proponent, on the other hand, may opt to secure CNC. Format of the IEE Report and the Project Description Report (PDR) are also presented below:

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Flowchart for IEE-Based ECC Applications

Source: Revised Procedural Manual for DAO 2003-30 NOTES

1.0 Informal Scoping 1.0 The Proponent may opt to request EMB (option of the CO/RO to scope the IEER. In the scoping Proponent) meeting, the Proponent and EMB jointly fill out the Scoping Checklist. The accomplished form may be signed by both parties to serve as the official TOR of the IEER.

2.0 EIA Study and Report 2.0 THIS STEP IS WHOLLY WITHIN THE Preparation PROPONENT’S CONTROL. Proponent undertakes the IEE Study. DENR-EMB personnel may clarify procedural and technical matters on the EIA process but is not allowed to take part in the EIA study or in the preparation of the report.. To facilitate preparation of the IEE, the EMB provides an IEE Checklist for new road projects. The IEE Report Outline on the other hand is presented below. The Revised Procedural Manual for DAO 2003-30 also provide templates for the Impacts Management Plan, Environmental Monitoring Plan and pro-forma Sworn Statements of Accountability of Proponent and Preparers. EIA Report Review and 3.0 Evaluation 3.1  Proponent submits to EMB one (1) copy of the IEER or IEEC, together with the filled out Procedural Screening Checklist 3.1 Procedural Screening (may use Annex 2-7a as template) for the IEER submission.

 For IEER: Within three (3) days from receipt by EMB of the IEER, the Screening Officer validates the procedural screening done by the Proponent.

 For the IEEC: Within one (1) day from receipt of the report, the Screening 3.2 Setting up the Review Officer validates the completeness of the Fund IEEC to ensure the information is sufficient to make a decision on the application. 3.3 Submission of Procedurally-accepted  Non-conforming document will be Application Documents returned. If conforming, Proponent will be instructed to pay the filing fee and then show the receipt to the EMB Case

Handler to initiate the substantive review of the document.

3.2 For the IEER, the Review Fund is estimated by the EIAMD and signed off by the EIAMD

RO Chief. The Proponent with the DENR- EMB Fund Manager then enters into a MOA. The manual also presents the guidelines for

setting up the Review Fund. 3.3 # OF COPIES OF EIA REPORT REQUIRED TO BE SUBMITTED

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IEER IEEC

Steps 4.0 to 6.0 5 Hard + 5 Hard + 1 CD START OF 1 CD EMB-CONTROLLED MAXIMUM WORKDAYS DENR/EMB REVIEW DURATION REVIEW PROCESS IEER IEEC

60 30 4.0 Substantive Review NOTE #1: ONLY THE TOTAL REVIEW DURATION and RESPONSE PERIOD OF PROPONENT TO AIs ARE 4.1 Inviting EMB Reviewers CONTROLLED BY EMB. The rest of the timelines and Distribution of EIA within the review process is provided FOR Reports GUIDANCE and PLANNING PURPOSES only. NOTE #2: Day 1 of the official processing period is reckoned on the day of the Proponent’s show of receipts of the filing fee (and Review Fund for IEER), together with the required number of reports, to the EMB Case Handler.

4.2 Review Proper by EMB 4.1 PRESCRIBED WORKDAYS for EMB TO Case Handler or with DISTRIBUTE EIA REPORTS EMB/DENR reviewers IEER IEEC

5 5

Should the EMB Case Handler decide to review the IEER with a team, the Case 4.2.1 1st Review by EMB Handler may invite reviewers from CH or with Review EMB/DENR personnel with mandates on the Team (RT) key issues of the applications (e.g., water, air, hazardous waste from PCD; Solid waste

from the NSWMS; mining issues from the MGB; forestry issues from the FMB; etc). For IEER, an external expert may be additionally invited depending on the criticality of the issue involved and absence of internal expertise.

4.2.2 Site Visit (SV), 4.2 PRESCRIBED WORKDAYS for EIA REVIEW Public Consultation PROPER* (PC) IEER IEEC 35 15 4.2.3 2nd/3rd EMB CH Review or Meeting *Note: The Review Proper duration is with Review Team inclusive of a maximum of two (2) (RT) Additional Information (AIs), and maximum of three (3) Review Team meetings/exchange of communication, Site Visits/Public Consultation up to Submission of Review Process Report by the EMB Case Handler.

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4.2.4 Submission of 4.2.1 The EMB Case Handler may review Review Process the EIA Report solely or with the Report (RPR)/ Draft assistance of EMB/DENR Reviewers. Recommendation The reviewers may individually Document by EMB review the EIA Reports and fill up CH the Pro-forma Additional Information (AI) Request for submission during the 1st Review Mtg or in an equivalent activity (i.e. routing the AI request to the EMB CH within a specific timeline). The EMB CH serves as the Chair of the Review Team. Should a meeting be held, the RT deliberations are discussed 5.0 Endorsement of with the Proponent. The pending AIs Recommendation are then consolidated by the EMB CH for transmittal to the Proponent at the earliest possible time. 4.2.2 PUBLIC PARTICIPATION DURING REVIEW PROPER 6.0 Sign-off/Issuance of IEER IEEC Decision Document

Option SV Option of EMB of EMB

Option PC Option of EMB of EMB

Note #1: No Public Hearing is required. Should the EMB require a public consultation, the response to the AI raised during the 1st Review Team 7.0 Transmittal of ECC to Meeting shall be responded to within five Concerned GAs/LGUs (5) working days from the date of the Public Consultation. Note #2: Timelines of SV/PC are included in the Review Proper duration. 4.2.3 NO. OF WORKDAYS FOR SUBMISSION OF RESPONSE* BY PROPONENT FOR EVERY AI IEER IEEC 1st 7 7 AI 2nd 7 7 AI

*NOTE #1: Responses must include response to issues raised by the stakeholders and EMB during the site visit or public consultation. NOTE #2: NON-SUBMISSION OF THE AI WITHIN THE PRESCRIBED TIMEFRAME WOULD MEAN STOPPAGE OF THE REVIEW PROCESS and AUTOMATIC RETURN OF IEER/IEEC TO THE PROPONENT, WHO IS GIVEN SIX (6) MONTHS TO RESUBMIT WITHOUT HAVING TO PAY PROCESSING and OTHER FEES.

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4.2.4 The RPR/Recommendation Document shall be prepared and submitted by the EMB CH to the EIAMD Review Section Chief/EIAM Division Chief at the latest within five (5) days from receipt of the EIARC Report. The EIARC Chair signs Annex B of the ECC which relays relevant EIA Findings and Recommendations to the Proponent on issues both within the EMB/DENR mandate and those within the jurisdiction of other concerned GAs/LGUs. The RPR and its approval as well as clearance on Decision Document for release to Endorsing Authority are included in the Review Proper duration.

ESTIMATED WORKDAYS for EMB TO ENDORSE DECISION 5.0 DOCUMENT

IEER IEEC

10 5 EIAMD RO EIAMD RO Division Endorsing Division Chief Authority Chief ESTIMATED WORKDAYS TO SIGN-OFF and ISSUE DECISION 6.0 DOCUMENT IEER IEEC 10 5 Deciding EMB RO EMB RO Authority Director Director

NOTE #1: If no decision is made within the specified timeframe, the ECC application is deemed automatically approved and the approving authority shall issue the ECC within five (5) working days after the prescribed processing timeframe has lapsed. NOTE #2: Prior to the release of the ECC, Proponent shall submit to the EMB one (1) hard copy and 2 e-files of the FINAL IEE REPORT, integrating all AIs. (Not applicable for IEE Checklists) NOTE #3: The Proponent signs the Sworn Statement of Full Responsibility on ECC Conditions prior to the official release of the ECC. 7.0 EMB transmits the ECC to concerned GAs and LGUs with mandate on the project for integration of recommendations into their decision-making process.

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Flowchart for CNC Application

Source: Revised Procedural Manual for DAO 2003-30

NOTES 1.0 Project 1.0 THIS STEP IS WHOLLY Description WITHIN THE PROPONENT’S (PD) Report CONTROL. Proponent Preparation undertakes the EIA Study, with or without the assistance of an EIA Preparer. DENR-EMB personnel may clarify procedural and PD Report technical matters on the EIA process but is not allowed to take 2.0 Review and Evaluation part in the EIA study or in the preparation of the report. Annex 2.1 Procedural 2-16 presents the PD Report Screening outline/content.

2.1 Proponent submits to EMB one (1) hard copy of the PD Report. Within one (1) day from receipt of the report, the Screening Officer

validates the completeness of the Steps 2.0 to PD report to ensure the 4.0 information is sufficient to make a decision on the application. Non- conforming document will be START OF EMB- returned. If conforming, the REGULATED Proponent will be instructed to REVIEW pay the filing fee and then show TIMELINE the receipt to the EMB Case Handler to initiate the processing of the document. 2.2 Substantive

Review MAXIMUM REVIEW DURATION FOR ALL PDRs IN EMB CO or EMB RO: 15 WORKING DAYS 2.2.1 Review Proper by EIAMD Case NOTE #1: ONLY THE TOTAL REVIEW DURATION and Handler RESPONSE PERIOD OF PROPONENT TO AIs ARE CONTROLLED BY EMB. The rest of the timelines within the review process is provided FOR 2.2.2 Optional Site GUIDANCE and PLANNING Visit (SV) PURPOSES onl 2.2 WORKDAYS FOR REVIEW PROPER BY EMB CH FOR ALL PDRs AT EMB CO or EMB RO: Eight (8) WORKING DAYS OR LESS

The EMB Case Handler solely reviews the • application.

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2.2.3 Draft • SITE VISIT IS AT THE Recommendatio OPTION OF EMB FOR ALL PD REPORTS AT EMB CO and RO n Document by EMB CH Note #1: No Public Hearing or Public Consultation is required. Note #2: Timelines of the Site Visit are included in the 8-workday review duration by the EMB CH. 3.0 Endorsement of Recommendation Note #3: Annex 2-1a may be used for documenting observations during Site Visit. 2.2.3 Recommendation shall be prepared and submitted by the EMB CH to the EIA Division Chief within two (2) working days from last activity. Annex 2-31 presents the standard CNC format and Sign-off/ content. The clearance for release of the 4.0 EMB CH’s Recommendation to the Issuance of Endorsing Authority is included in the 8- Decision workday review duration. Document ESTIMATED 3 WORKDAYS for EMB 3.0 CO or EMB RO TO 5.0 Transmittal of ENDORSE DECISION CNC Document DOCUMENT

Endorsing CO: EIAMD CO Chief Authority RO: EIAMD RO Chief ESTIMATED 4 WORKDAYS for EMB CO 4.0 or EMB RO TO SIGN-OFF and ISSUE DECISION DOCUMENT

CO: EMB CO Deciding Director Authority RO: EMB RO Director

NOTE: If no decision is made within the specified timeframe, the CNC application is deemed automatically approved and the approving authority shall issue the CNC within five (5) working days after the prescribed processing timeframe has lapsed.

5.0 EMB transmits through Annex 2- 30b the CNC to concerned DENR office, other GAs and LGUs with mandate on the project for integration of recommendations into their decision-making process.

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Format of the Initial Environmental Examination (IEE) Report

NOTE: REFER TO ANNEX 2-7a (EIS SCOPING AND PROCEDURAL SCREENING CHECKLIST) AS BASIS FOR DETERMINING SIMILAR OR EQUIVALENT SPECIFIC CONTENTS/ REQUIREMENTS OF EACH SECTION Executive Summary 1) Brief Project Description 2) Brief Summary of Project’s IEE Process 3) Summary of Baseline Characterization 4) Summary of Impact Assessment and Environmental Management Plan 5) Summary of Environmental Monitoring Plan

DRAFT MAIN IEER

1. BASIC PROJECT INFORMATION

2. DESCRIPTION OF THE PROJECT’S IEE PROCESS -

2.1. Terms of Reference of the IEE Study (if scoping was done with EMB) 2.2. IEE Team 2.3. IEE Study Schedule 2.4. IEE Study Area 2.5. IEE Methodology

3. PROJECT DESCRIPTION 3.1. Project Location, Area, ECA category (if applicable) 3.2. Project Rationale 3.3. Project Development Plan, Process/Technology and Project Components 3.4. Description of Project Phases (Activities/Environmental Aspects, Associated Wastes and Built-in Pollution Control Measures)

3.4.1. Pre-construction/ Pre-operational phase 3.4.2. Construction/Development phase 3.4.3. Operational phase 3.4.4. Abandonment phase 3.5. Manpower Requirements 3.6. Project Cost 3.7. Project Duration and Schedule 4. BASELINE ENVIRONMENTAL CONDITIONS, IMPACT ASSESSMENT AND MITIGATION 4.1. The Land (Discuss only relevant modules or modules likely to be affected by project impacts) - Land use, Pedology, Geology, Geomorphology, Terrestrial biology 4.2. The Water (Discuss only relevant modules or modules likely to be affected by project impacts – Hydrology, Oceanography, Water Quality, Freshwater Biology, Marine Biology 4.3. The Air - ((Discuss only relevant modules or modules likely to be affected by project impacts - Meteorology, Air Quality, Noise 4.4. The People

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5. ENVIRONMENTAL MANAGEMENT PLAN 5.1. Impacts Management Plan 5.2. Emergency Response Policy and Generic Guidelines (if applicable) 5.3. Environmental Monitoring Plan Note: Attach under this section the filled out Project Environmental Monitoring and Audit Prioritization Scheme (PEMAPS) Questionnaire in Annex 2-7d of the RPM 5.4. Institutional Plan for EMP Implementation

6. BIBLIOGRAPHY/REFERENCES

7. ANNEXES 7.1. Scoping Checklist (optional, since Scoping is not required for IEEs) 7.2. Original Sworn Accountability Statement of Proponent 7.3. Original Sworn Accountability Statement of IEE Preparer 7.4. Baseline Study Support Information

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Format of Project Description (PD) Report

Table of Contents

1 BASIC INFORMATION ON PROJECT and PROPONENT

2 PROJECT DESCRIPTION 2.1 Project Location and Area (at the minimum, shown in an official NAMRIA topographic or nautical map (whichever type is applicable and of appropriate scale); Show title, legend, scale, project location and political boundaries (from sitio/barangay to region); indicate any known ECA category encompassing the project area 2.2 Project Rationale – state need for & purpose of the project., particularly

environmental enhancement or mitigation purpose of the project 2.3 Project Development Plan, Process and Components - Attach tentative/option of Physical Plan/Site Development Map being considered at the FS stage; briefly describe process/technology; list/describe and indicate project components (facilities/infrastructures, other single projects supporting the main project) on the topographic map 2.4 Description of Project Phases - For Group II and III non-covered projects: focus on activities and processes which may cause residual impacts; For Unclassified/Unlisted/New Technology Projects: focus on critical activities

and processes per phase which place a demand on local resource uses and which generate emissions, effluent, hazardous waste, solid waste, other wastes) 2.4.1 Operational phase – For Unclassified/Unlisted/New Technology Projects: Specifically present if processes and substances to be used are listed and fall within the limits covered by Environmental Risk Assessment as enumerated in Section C of Annex 2-7a of the Revised Procedural Manual ) 2.4.2 Abandonment phase

2.5 Project Emissions/Effluent/ Hazardous Waste/Solid Waste/Other Wastes - Present integrated summary of types of wastes (residual for Group III non-covered projects) ; estimate waste generation rate; identify built-in waste management measures and facilities planned or committed to be built into the project design 2.6 Manpower - Present manpower requirements per project phase; specify expertise needed; nature & estimated number of jobs available for men; nature and number of jobs available for women; specify strategy and tentative scheme for sourcing locally from host and neighboring LGUs and those from outside 2.7 Project Cost

2.8 Project Duration and Schedule

3 OVERVIEW/GENERIC DESCRIPTION OF THE BASELINE ENVIRONMENT (4 pages – on land, water, air, people) – focus on the environmental components and factors likely to be affected by the project’s impacts; only secondary data or qualitative environmental description is necessary

4 ENVIRONMENTAL MANAGEMENT PLAN (3 pages - focused only on the residual management scheme on the relevant land, water air & people module)

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5 ANNEXES (3-6 pages) 5.1 Original Sworn Accountability Statement of Proponent (Use Annex 2-21 of

RPM) 5.2 Photos or plates of proposed project site, cumulative/residual impact areas and surrounding communities (N, S, E, W of the project; key sectoral features - land, water, air, people)

 Preparation of environmental impact assessments (EIAs) The corresponding report to be prepared when full blown environmental impact assessment is required is the Environmental Impact Statement , the outline of which is presented below:

EIS OUTLINE

NOTE: REFER TO ANNEX 2-7a (EIS SCOPING AND PROCEDURAL SCREENING CHECKLIST) FOR SPECIFIC CONTENTS/REQUIREMENTS OF EACH SECTION

Project Fact Sheet

Table of Contents

Executive Summary 1) Brief Project Description 2) Brief Summary of Project’s EIA Process 3) Summary of Baseline Characterization 4) Summary of Impact Assessment and Environmental Management Plan 5) Summary of Environmental Monitoring Plan 6) EMF and EGF Commitments

DRAFT MAIN EIS

BASIC PROJECT INFORMATION

4 DESCRIPTION OF THE PROJECT’S EIA PROCESS

4.5. Terms of Reference of the EIA Study 4.6. EIA Team 4.7. EIA Study Schedule 4.8. EIA Study Area 4.9. EIA Methodology 4.10. Public Participation

PROJECT DESCRIPTION 4.11. Project Location and Area 4.12. Project Rationale 4.13. Project Alternatives

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4.14. Project Development Plan, Process/Technology Options and Project Components 4.15. Description of Project Phases (Activities/Environmental Aspects, Associated Wastes and Built-in Pollution Control Measures) 4.15.1. Pre-construction/ Pre-operational phase 4.15.2. Construction/Development phase 4.15.3. Operational phase 4.15.4. Abandonment phase 4.16. Manpower Requirements 4.17. Project Cost 4.18. Project Duration and Schedule BASELINE ENVIRONMENTAL CONDITIONS, IMPACT ASSESSMENT AND

MITIGATION 4.19. The Land (Discuss only relevant modules) 4.19.1. Land Use and Classification 4.19.2. Pedology 4.19.3. Geology and Geomorphology 4.19.4. Terrestrial Biology 4.20. The Water (Discuss only relevant modules) 4.20.1. Hydrology & Hydrogeology 4.20.2. Oceanography 4.20.3. Water Quality 4.20.4. Freshwater Biology 4.20.5. Marine Biology 4.21. The Air (Discuss only relevant modules) 4.21.1. Meteorology 4.21.2. Air Quality and Noise 4.22. The People

8. ENVIRONMENTAL RISK ASSESSMENT (WHEN APPLICABLE)

9. ENVIRONMENTAL MANAGEMENT PLAN

9.1. Impacts Management Plan 9.2. Social Development Framework 9.3. IEC Framework 9.4. Emergency Response Policy and Generic Guidelines Abandonment /Decommissioning /Rehabilitation Policies and Generic 9.5. Guidelines

9.6. Environmental Monitoring Plan 9.2.1. Self-Monitoring Plan 9.2.1. Multi-sectoral Monitoring Framework 9.2.1. Environmental Guarantee and Monitoring Fund Commitment 9.7. Institutional Plan for EMP Implementation

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10. BIBLIOGRAPHY/REFERENCES

11. ANNEXES 11.1. Scoping Checklist 11.2. Original Sworn Accountability Statement of Proponent 11.3. Original Sworn Accountability Statement of Key EIS Consultants 11.4. Proof of Public Participation 11.5. Baseline Study Support Information 11.6. Impact Assessment and EMP Support Information NOTE: The EIA review process will advise DOH if the project will pose a significant public health risk to the environment, e.g. public health may be affected if the wastes/discharges are direct contributors to the leading causes of mortality/morbidity in the DIA, regardless of environmental management measures. To assist EMB on its review, DOH shall coordinate with the DENR-EMB on the declaration of Health Sensitive Projects and Health Sensitive Areas. Until such time, DOH shall review EHIA independently of the EIA Process, consistent with the DENR-DOH MOA on EHIA. Further, workers’ HIA component of the EHIA is recommended to be coordinated by DOH with DOLE for the latter’s consideration in its requirement of an Occupational Health and Safety Program from the Proponent.

 27. Requirements for environmental management plans The environmental management plans details the prevention, mitigation, compensation, contingency and monitoring measures to enhance positive impacts and minimize negative impacts and risks of a proposed project or undertaking. Results are presented using the format above. The level of effort, amount of analysis, comprehensiveness, and level of detail are to be guided by nature of the project and the significance of the potential impacts.

 28. Requirements for public consultation and information disclosure Public consultation is only required for projects with significant impacts. The DENR does not require it in the Improvement of the proposed subproject roads which are already in place. During the project implementation, however, traffic management plan if necessary will be prepared by a Traffic Engineer which should be presented to the Local Government Units, Transport Associations and other concerned agencies for approval.

 29. Review of environmental assessment reports by government environmental Agencies The DENR Review Process is presented above.

 30. Review of environmental assessment by ADB regional departments and RSDD as necessary, and For sector loans, a review of environmental assessment by ADB Regional Departments will be conducted based on ADB Environmental Assessment Guidelines 2003.

 31. Monitoring environmental performance-reporting on environmental assessment activities On the part of the proponent, an Environmental Unit will be organized to closely monitor the project impacts and the efficiency of the mitigating measures employed. The guide to be used in the conduct of monitoring and the system of

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reporting the environmental performance is through the use of the Self Monitoring Report format provided in Revised Procedural Manual for DENR AO 2003-03. Status of compliance by the proponent with the conditions required by DENR shall likewise be included.

E. Confirmation that Environmental Assessment and Review Procedures conforms to ADB’s Environmental Policies

32. The Philippine Government’s existing Initial Environmental Examination (IEE) and the Environmental Impact Assessment (EIA) procedure generally conform with the ADB’s environmental framework. 33. The environmental assessment and review procedures of ADB for the subproject road upgrade under the sector loan conform with the existing DENR procedures. 34. The procedures conform closely with the ADB’s Environmental and Social Safeguard policies, specifically in the requirements for structured consultation, they are a component of a poverty reduction intervention, place greater emphasis on monitoring and compliance with environmental requirements during project implementation, and are structured as an ongoing process rather than a one-time event.

F. Staffing Requirements and Budget 35. An important up-front cost will be the establishment of DPWH-EMU in the district and Regional Offices to be supervised by ESSO and the training of its staff in EIA, IEE and MIS. This will be achieved with the use of consultants in on the job training. The DPWH will need to assign at least one person initially and subsequently two people, to staff the EMU and be responsible for environmental matters within the department. 36. The budget needed for the completion of a single subproject IEE will be 1.0 person- month of environmental specialist input and 0.5 of a technical specialist. At least two field visits to each subproject road, plus at least one public consultation at which project information and maps need to be distributed, and a presentation for government agencies, NLTB and other stakeholders, are necessary. Therefore adequate travel and per diem budgets must be provided.

KEI in association with SKI and DCCD Annex 9-19