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The World Bank Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1382 PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized IN THE AMOUNT OF US$40.7 MILLION AND A PROPOSED LOAN FROM THE CLEAN TECHNOLOGY FUND IN THE AMOUNT OF US$23.9 MILLION TO THE REPUBLIC OF THE PHILIPPINES FOR THE METRO MANILA BRT - LINE 1 PROJECT Public Disclosure Authorized February 23, 2017 Transport and ICT Global Practice East Asia and Pacific Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Public Disclosure Authorized Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective July 28, 2016) Currency Unit = Philippine Peso (PHP) US$1.00 = 47.2 PHP FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AFC Automatic Fare Collection ATC Area Traffic Control AUV Asian Utility Vehicle BAC Bids and Awards Committee BAU Business as Usual BP Bank Procedures BRT Bus Rapid Transit BRTSM BRT System Manager CCTV Closed Circuit TV COA Commission on Audit CTF Clean Technology Fund DA Designated Account DBM Department of Budget and Management DBP Development Bank of the Philippines DED Detailed Engineering Design DENR Department of Environment and Natural Resources DOTr Department of Transportation DPWH Department of Public Works and Highways DTS Detailed Technical Study EDSA Epifanio de los Santos Avenue EE Energy Efficiency EIRR Economic Internal Rate of Return EMA External Monitoring Agent ESIA Environment and Social Impact Assessment ESMP Environment and Social Management Plan EST Environmentally Sustainable Transport GDP Gross Domestic Product GHG Greenhouse Gas GoP Government of the Philippines IA Implementing Agencies IBRD International Bank for Reconstruction and Development IFRs Interim Financial Reports i ITS Intelligent Transport System IVE International Vehicle Emissions LGUs Local Government Units LRT Light Rail Transit LRTA Light Rail Transit Authority LTFRB Land Transportation Franchising and Regulatory Board MMDA Metro Manila Development Authority MRT Metro Rail Transit MtCO2e Metric Ton Carbon Dioxide Equivalent NESTS National Environmentally-Sustainable Transport Strategy NMT Non-Motorized Transport NPMO National Program Management Office NSC National Steering Committee OP Operational Policy PAP Project-Affected Persons PDO Project Development Objective PHP Philippine Peso PIP Project Implementation Plan PIU Project Implementation Unit PM Particulate Matter POM Project Operations Manual pphpd passenger per hour per direction PPP Public-Private Partnership PT Public Transport PUBs Public Utility Buses PUJs Public Utility Jeepneys PUVs Public Utility Vehicles RE Renewable Energy ROW Right-of-Way SBD Standard Bidding Document SMP Social Management Plan SOE Statement of Expenditure TESDA Technical Education and Skills Development Authority TSC Technical Support Consultant VKM Vehicle Kilometers VSL Variable Spread Loan Regional Vice President: Victoria Kwakwa Country Director: Mara Warwick Senior Global Practice Director: Jose Luis Irigoyen Practice Manager: Almud Weitz Task Team Leader: Vickram Cuttaree Co-Task Team Leader: Victor Dato ii PHILIPPINES Metro Manila BRT - Line 1 Project TABLE OF CONTENTS I. STRATEGIC CONTEXT ............................................................................................................. 1 A. Country Context .................................................................................................................. 1 B. Sectoral and Institutional Context ....................................................................................... 1 C. Higher Level Objectives to which the Project Contributes ................................................. 5 II. PROJECT DEVELOPMENT OBJECTIVES .......................................................................... 5 A. PDO ..................................................................................................................................... 5 B. Project Beneficiaries............................................................................................................ 5 C. PDO Level Results Indicators ............................................................................................. 6 III. PROJECT DESCRIPTION ...................................................................................................... 6 A. Project Components ............................................................................................................ 6 B. Project Financing ................................................................................................................. 7 1. Lending instrument ...............................................................................................................................................7 2. Project Cost and Financing ................................................................................................................................7 C. Lessons Learned and Reflected in the Project Design ........................................................ 8 IV. IMPLEMENTATION ................................................................................................................ 9 A. Institutional and Implementation Arrangements ................................................................. 9 B. Results Monitoring and Evaluation ................................................................................... 10 C. Sustainability ..................................................................................................................... 11 V. KEY RISKS AND MITIGATION MEASURES .................................................................. 11 VI. APPRAISAL SUMMARY ..................................................................................................... 13 A. Economic and Financial Analyses .................................................................................... 13 B. Technical ........................................................................................................................... 13 C. Financial Management ...................................................................................................... 16 D. Procurement....................................................................................................................... 16 E. Social (including Safeguards) ........................................................................................... 17 F. Environment (including Safeguards)................................................................................. 18 G. World Bank Grievance Redress ........................................................................................ 20 Annex 1: Results Framework and Monitoring .............................................................................. 21 Annex 2: Detailed Project Description ............................................................................................. 32 Annex 3: Implementation Arrangements ........................................................................................ 39 Annex 4: Implementation Support Plan .......................................................................................... 55 Annex 5: Economic and Financial Analysis .................................................................................... 57 Annex 6: Clean Technology Fund ..................................................................................................... 62 Annex 7. Summary of Environment and Social Impact Assessment ........................................ 78 iii PAD DATA SHEET Philippines Metro Manila BRT Line 1 Project (P132401) PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC 0000009381 Report No.: PAD1382 Basic Information Project ID EA Category Team Leader(s) P132401 A - Full Assessment Vickram Cuttaree Victor Dato Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 01-Jul-2017 30-Jun-2022 Expected Effectiveness Date Expected Closing Date 01-July-2017 30-Nov-2022 Joint IFC No Practice Regional Vice Senior Global Practice Director Country Director Manager/Manager President Almud Weitz Jose Luis Irigoyen Mara Warwick Victoria Kwakwa Borrower: Republic of the Philippines Responsible Agency: Department of Transportation Contact: Anneli Lontoc Undersecretary, Department of Transport Telephone No.: (63-2) 723-1507, 727-7960 [email protected] Project Financing Data(in USD Million) [ X ] Loan [ ] IDA Grant [ ] Guarantee [ ] Credit [ ] Grant [ X ] Other Total Project Cost: 109.41 Total Bank 64.60 Financing: iv Financing Gap: 0.00 Financing Source Amount Borrower 44.81 International Bank for Reconstruction and Development 40.70 Clean Technology Fund 23.90 Total 109.41 Expected Disbursements (in USD Million) Fiscal Year 2017 2018 2019 2020 2021 2022 IBRD Annual 0.00 5.50 17.00 13.00 2.70 2.50 Cumulative 0.00 5.50 22.50 35.50 38.20 40.70 CTF Annual 0.00 5.20 14.80 1.50 1.45 0.95 Cumulative 0.00 5.20 20.00 21.50 22.95 23.90 Institutional Data Practice Area (Lead) Transport & ICT Contributing Practice Areas Cross Cutting Topics [ X ] Climate Change [ ] Fragile,
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