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Clark Area Municipal Development Project

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Completion Report Project Number: 29082 Loan Number: 1658 August 2006 Philippines: Clark Area Municipal Development Project CURRENCY EQUIVALENTS Currency Unit – peso(s) (P) At Appraisal At Project Completion (31 October 1998) (8 November 2005) P1.00 = $0.0246 $0.0182 $1.00 = P40.60 P54.99 ABBREVIATIONS ADB – Asian Development Bank BAC – Bids and Awards Committee BCDA – Bases Conversion Development Authority CAMDP – Clark Area Municipal Development Project CDC – Clark Development Corporation CRU – community relations unit CSEZ – Clark Special Economic Zone DENR – Department of Environment and Natural Resources DILG – Department of the Interior and Local Government DPWH – Department of Public Works and Highways DOF – Department of Finance EA – Executing Agency EIRR – economic internal rate of return FIRR – financial internal rate of return GFI – government financial institution IA – Implementing Agency ICC – investment coordinating committee IEE – initial environmental examination IRA – internal revenue allotment LBP – Land Bank of the Philippines LGU – local government unit MDFO – Municipal Development Fund Office NEDA – National Economic and Development Authority O&M – operation and maintenance PAG – project advisory group PIU – project implementation unit PMO – project management office PMS – project management support PPMS – project performance monitoring system PPTA – project preparatory technical assistance PSC – project supervisory committee RRP – report and recommendation of the President SLA – subloan agreement SLF – sanitary landfill SPA – subproject agreement SWM – solid waste management TWG – technical working group NOTES (i) The fiscal year (FY) of the Government of the Philippines ends on 31 December. (ii) In this report, “$” refers to US dollars. Vice President C. Lawrence Greenwood, Jr., Operations Group 2 Director General R. Nag, Southeast Asia Department (SERD) Director S. Lateef, Social Sectors Division, SERD Team leader S. Durrani-Jamal, Project Specialist (Education), SERD Team member R. G. V. Alvarez, Assistant Project Analyst, SERD CONTENTS Page BASIC DATA i MAP vii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 4 C. Project Costs 5 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 7 G. Conditions and Covenants 8 H. Consultant Recruitment and Procurement 8 I. Performance of Consultants, Contractors, and Suppliers 9 J. Performance of the Borrower and the Executing Agency 9 K. Performance of the Asian Development Bank 10 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness in Achieving Outcome 10 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 12 E. Health, Safety, and Environment Impacts 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons Learned 13 C. Recommendations 15 APPENDIXES 1. Project Framework 16 2. Project Outputs 18 3. Cost Breakdown by Project Component 23 4. Revisions in Loan Allocations 24 5. Project Implementation Schedule 27 6. Chronology of Events 29 7. Institutional, Financial, and Operational Action Plan 35 8. Organization Chart for Project Implementation 38 9. Status of Compliance with Loan Covenants 39 10. Financial and Economic Evaluation 46 11. Reports on LGUs’ Revenues and Receipts 52 12. PCR Rating Criteria 55 BASIC DATA A. Loan Identification 1. Country Philippines 2. Loan Number 1658 3. Project Title Clark Area Municipal Development Project 4. Borrower Republic of the Philippines 5. Executing Agency Department of the Interior and Local Government 6. Amount of Loan $24.3 million 7. Project Completion Report Number 29082 B. Loan Data 1. Appraisal – Date Started 6 July 1998 – Date Completed 24 July 1998 2. Loan Negotiations – Date Started 12 November 1998 – Date Completed 20 November 1998 3. Date of Board Approval 15 December 1998 4. Date of Loan Agreement 1 March 1999 5. Date of Loan Effectiveness – In Loan Agreement 28 June 1999 – Actual 28 June 1999 – Number of Extensions 0 6. Closing Date – In Loan Agreement 30 June 2005 – Actual 8 November 2005 – Number of Extensions none 7. Terms of Loan – Interest Rate variable – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Terms of Relending (Municipal Development Fund Office) – Interest Rate 14% (later reduced to 9%) – Maturity (number of years) 12 – Grace Period (number of years) 3 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 1 December 1999 8 November 2005 71 months Effective Date Original Closing Date Time Interval 28 June 1999 30 June 2005 72 months Effective Date Actual Closing Date Time Interval 28 June 1999 8 November 2005 76 months ii b. Amount ($) Last Net Original Revised Amount Amount Amount Undisbursed Category Allocation Allocation Canceled Available Disbursed Balance 01 Civil Works 01A DPWH 558,000 528,078 29,922 528,078 528,078 0 01B Angeles 4,624,000 0 4,624,000 0 0 01C Bamban 260,000 0 260,000 0 0 01D Capas 1,000,000 0 1,000,000 0 0 01E Concepcion 5,000 0 5,000 0 0 01F Mabalacat 7,000 0 7,000 0 0 01G Magalang 3,000 0 3,000 0 0 01H San Fernando 364,000 0 364,000 0 0 01I Tarlac 4,521,000 0 4,521,000 0 0 02 Equipment and Materials 02B Angeles 1,157,000 0 1,157,000 0 0 02C Bamban 57,000 179,612 116388 179,612 179,612 0 02D Capas 57,000 0 57,000 0 0 02E Concepcion 36,000 0 36,000 0 0 02F Mabalacat 108,000 455,377 32,622 455,377 453,182 2,195 02G Magalang 65,000 146,429 13,571 146,429 145,474 955 02H San Fernando 937,000 0 937,000 0 0 02I Tarlac 911,000 0 911,000 0 0 03 Consulting Services 1,903,000 1,099,742 803,258 1,099,742 1,068,644 31,098 04 Interest during Construction 3,784,000 1,017,000 2,767,000 1,017,000 956,897 60,103 05 Unallocated 3,943,000 0 3,943,000 0 0 Total 24,300,000 3,426,238 20,873,761 3,426,238 3,331,887 94,351 10. Local Costs (Financed) - Amount ($ million) 2.0 - Percentage of Local Costs 34% - Percentage of Total Cost 28% C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 15.6 1.3 Local Currency Cost 26.2 5.9 Total 41.8 7.2 iii 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower-Financed 17.5 3.8 ADB-Financed 24.3 2.4 Other External Financing 0.0 0.0 Total 41.8 6.2 IDC Costs Borrower-Financed 3.8 0.0 ADB Financed 0.0 0.9 Other External Financing - 0.0 Total 3.8 7.2 ADB = Asian Development Bank, IDC = interest during construction. Note: Numbers may not sum precisely because of rounding. 3. Cost Breakdown by Project Component ($ million) Appraisal Estimate Actual Component Foreign Local Total Foreign Local Total A. Physical Infrastructure 1. Roads and Bridges a. San Felipe Bridge 0.1 0.4 0.4 b. Mabiga Bridge 0.0 0.2 0.2 c. Hensonville Bridge 0.0 0.7 0.7 d. Friendship Bridge 0.0 2.0 2.0 Subtotal (A1) 2.9 11.2 14.1 0.1 3.3 3.4 2. Drainage and Flood Control 2.0 4.6 6.6 0.0 0.0 0.0 3. Solid Waste Management a. Mabalacat 0.0 0.5 0.5 b. Magalang 0.0 0.1 0.1 c. Bamban 0.0 0.2 0.2 Subtotal (A3) 6.2 5.2 11.4 0.0 0.8 0.8 4. Incremental Administration 0.0 3.1 3.1 0.0 0.7 0.7 Subtotal (A) 11.1 24.1 35.2 0.1 4.8 4.9 B. Capacity Building 1. Institutional Development Program 0.0 0.6 0.6 0.0 0.1 0.1 2. Consulting Services 0.8 1.5 2.3 0.2 1.0 1.2 Subtotal (B) 0.8 2.1 2.9 0.2 1.1 1.3 C. Interest during Construction 3.7 0.0 3.7 0.9 0.0 0.9 Total 15.6 26.2 41.8 1.3 5.9 7.2 iv 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with PMS Consultants March 1999 March 2002 Detailed Engineering Design Completion March 1999 November 2002 Civil Works Advertisement July 1999 July 2000 Contract Award October 1999 August 2003 Completion of Works March 2002 September 2004 Equipment Advertisement July 1999 December 2000 Contract Award October 1999 September 2002 Delivery June 2000 June 2005 Capacity Building January 1999– August 2003– Training December 2002 June 2005 January 1999– January 2003– Project Management Support December 2001 June 2005 Project Review Midterm June 2002 September 2003 Completion December 2005 April 2006 PMS = project management support. Note: Please refer to Appendix 5 for the detailed schedule of subproject implementation. 5. Project Performance Report Ratings Implementation Period Ratings Development Implementation Objectives Progress From 1 January 1999 to 30 November 2000 Satisfactory Satisfactory From 1 December 2000 to 28 February 2001 Satisfactory Partly Satisfactory From 1 March 2001 to 31 March 2003 Satisfactory Satisfactory From 1 April 2003 to 31 July 2003 Partly Satisfactory Satisfactory From 1 to 31 August 2003 Partly Satisfactory Highly Satisfactory From 1 September 2003 to 31 July 2004 Satisfactory Highly Satisfactory From 1 August 2004 to 8 November 2005 Satisfactory Satisfactory v D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Datea Persons Person-Days of Membersb Loan Appraisal 6–21 July 1998 6 78 a, b, c, l, m, n Inception 9 August–3 September 2 26 a, k 1999 Loan Review 14–23 February 2000 4 32 a, d, k, l Loan Review 2–13 October 2000 3 26 d, e, l Loan Review 5 February–6 April 2001 3 19 d, f, g Loan Review 5 November– 3 25 d, k, o 14 December 2001 Midterm Review 16 September 2002– 3 43 h, k, o 28 February 2003 Loan Review 26 November– 2 12 h, k 22 December 2003 Loan Review 22 September– 2 10 g, k 8 October 2004 Loan Review 4–8 July 2005 2 10 i, k Project Completion Reviewc 28 April–15 June 2006 3 28 j, k, p Note: a Missions were fielded intermittently.
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