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Third Airports Development Project (Southern Philippines)

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Third Airports Development Project (Southern Philippines) Completion Report Project Number: 28270 Loan Number: 1536 October 2007 Philippines: Third Airports Development Project (Southern Philippines) CURRENCY EQUIVALENTS Currency Unit – peso (P) At Appraisal At Project Completion 15 August 1997 5 Sep 2005 P1.00 = $0.034 $0.018 $1.00 = P29.762 P56.230 ABBREVIATIONS ADB – Asian Development Bank AFTN/AIS – aeronautical fixed telecommunication network and airport information system ATO – Air Transportation Office BIMP– – Brunei–Indonesia–Malaysia–Philippines–East ASEAN Growth EAGA Area DND–AFP – Department of National Defense–Armed Forces of the Philippines DOF – Department of Finance DOTC – Department of Transportation and Communications EIB – European Investment Bank ICAO – International Civil Aviation Organization LAR – land acquisition and resettlement LARP – land acquisition and resettlement plan LGU – local government unit NAIA – Ninoy Aquino International Airport PBAC – Prequalification Bidding and Awards Committee PCR – project completion report PIU – project implementation unit PQER – prequalification evaluation report VOPEC – variation orders and price escalation committee WEIGHTS AND MEASURES oC – degree Celsius ha – hectare m – meter GLOSSARY airside – Airside of an airport means all infrastructure except the terminal building and its facilities. apron – The defined area of the airport used for refueling, parking, maintenance, and the loading and unloading of passengers, mail, and cargo. barangay – The smallest political unit into which cities and municipalities in the Philippines are divided. international airport – An airport with customs services available so that nonstop services to an airport in another country can be authorized. landside – Landside of an airport means the terminal building, parking area, and other related facilities like coolers, water tower, etc. navaid – Navigational aid, for example, instrument landing system (ILS) or very high frequency omni (VOR). terminal – A general term for an airport building used for passenger services. tower – Air traffic control (ATC) communications facility located at an airport; usually the tallest structure with an unobstructed view of the entire airport. NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars. Vice President C. Greenwood, Jr., Operations 2 Director General A. Thapan, Southeast Asia Department (SERD) Director J. Cooney, Infrastructure Division, SERD Team leader S. Date, Transport Specialist, SERD Team member A. Samoza, Associate Project Analyst, SERD CONTENTS Page BASIC DATA ii MAP vi I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 3 C. Project Costs 4 D. Disbursements 4 E. Project Schedule 4 F. Implementation Arrangements 6 G. Conditions and Covenants 6 H. Consultant Recruitment and Procurement 6 I. Performance of Consultants, Contractors, and Suppliers 7 J. Performance of the Borrower and the Executing Agency 7 K. Performance of the Asian Development Bank 7 III. EVALUATION OF PERFORMANCE 7 A. Relevance 7 B. Effectiveness in Achieving Outcome 8 C. Efficiency in Achieving Outcome and Outputs 8 D. Preliminary Assessment of Sustainability 8 E. Impact 8 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 8 A. Overall Assessment 8 B. Lessons Learned 8 C. Recommendations 8 APPENDIXES 1. Project Framework 10 2. Chronology of Events 16 3. Project Outputs: Planned and Actual 20 4. Appraisal and Actual Project Costs 21 5. Projected and Actual Disbursements 22 6. Project Implementation Schedule 23 7. Status of Compliance with Loan Covenants 24 8. Land Acquisition and Resettlement 34 BASIC DATA A. Loan Identification 1. Country Republic of the Philippines 2. Loan Number 1536-PHI 3. Project Title Third Airports Development Project (Southern Philippines) 4. Borrower Republic of the Philippines 5. Executing Agency Department of Transportation and Communications 6. Amount of Loan $93,000,000.00 (original) $12,157,965.00 (revised) 7. Project Completion Report PCR: PHI 999 Number B. Loan Data 1. Appraisal – Date Started 21 April 1997 – Date Completed 15 May 1997 2. Loan Negotiations – Date Started 18 August 1997 – Date Completed 21 August 1997 3. Date of Board Approval 16 September 1997 4. Date of Loan Agreement 21 January 1998 5. Date of Loan Effectiveness – In Loan Agreement 21 April 1998 – Actual 11 November 1998 – Number of Extensions 4 6. Closing Date – In Loan Agreement 31 May 2003 – Actual 5 September 2005 – Number of Extensions 2 7. Terms of Loan – Interest Rate London interbank offered rate-based (Floating) – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Terms of Relending (if any) Not applicable – Interest Rate – Maturity (number of years) – Grace Period (number of years) – Second-Step Borrower iii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 01 March 1999 27 October 2004 68 months Effective Date Original Closing Date Time Interval 11 November 1998 31 May 2003 54 months b. Amount ($) Last Net Original Revised Amount Amount Amount Undisbursed Categorya Allocation Allocation Canceledb Available Disbursed Balance 01 28,382,000 0 28,382,000 0 0 0 02 29,757,000 0 29,757,000 0 0 0 03 9,820,000 7,963,920 1,856,080 7,963,921 7,963,921 0 04 12,682,000 4,194,045 8,487,955 4,194,045 4,194,045 0 05 12,359,000 0 12,359,000 0 0 0 Total 93,000,000 12,157,965 80,842,035 12,157,965 12,157,965 0 a 01 = civil works, 02 = equipment and vehicles, 03 = consulting services, 04 = interest and commitment charges, 05 = unallocated b 1st partial cancellation $73,000,000 (31 May 2003) and 2nd partial cancellation $7,842,034.96 (5 September 2005) 10. Local Costs (Financed) - Amount ($) 0.0 - Percent of Local Costs 0.0 - Percent of Total Cost 0.0 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actuala Foreign Exchange Cost 114.00 12.15 Local Currency Cost 53.00 13.53 Total 167.00 25.68 a As of loan closing date, includes total ADB disbursements for consulting services and interest and/or commitment charges. 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 41.00 13.53 ADB Financed 80.30 7.96 European Investment Bank Financing 29.00 0.00 Total 150.30 21.49 IDC Costs Borrower Financed 4.00 0.00 ADB Financed 12.70 4.19 European Investment Bank Financing 0.00 0.00 Total 16.70 4.19 ADB = Asian Development Bank, IDC = interest during construction. iv 3. Cost Breakdown by Project Component ($ million) Component Appraisal EstimateActual A. Base Cost 1. Parts I-IV: Airport Improvements 91.10 13.40a 2. Part VII: Communication and Navigation Equipment 12.20 0.00 3. Part VIII: Crash, Fire, and Rescue 12.30 0.00 4. Part IX: Consulting Services 11.30 8.09 Subtotal (A) 126.90 21.49 B. Contingencies 1. Physical 12.80 0.00 2. Price 10.60 0.00 Subtotal (B) 23.40 0.00 C. IDC and other Charges 16.70 4.19 Total 167.00 25.68 a Costs incurred by Borrower for site acquisition, project-affected families relocation, and Project administration 4. Project Schedule Item Appraisal Actual Estimate Date of Contract with Consultants Detailed Design and Construction Supervision January 1998 15 December 1999 Project Monitoring (ICAO) January 1998 20 May 2001 Completion of Engineering Design January 1999 November 2000 Civil Works Contract Date of Award December 1999 No contracts awarded Completion of Work August 2002 No contracts awarded Equipment and Supplies Dates First Procurement January 1999 No contracts awarded Last Procurement February 2002 No contracts awarded Completion of Equipment Installation November 2002 No contracts awarded Start of Operations Completion of Tests and Commissioning November 2002 No contracts awarded Beginning of Start-Up December 2002 No contracts awarded Project Monitoring February 1998- June-October 2001 November 2001 Sector Restructuring and HRD July 1998- No contracts awarded February 1999 Training July 1998- No contracts awarded December 1999 Other Milestones 17 December 2003: Approval of first extension of loan closing date to 31 May 2004, major change in scope, and partial loan cancellation of $73 million effective 31 May 2003 3 November 2004: Approval of second extension of loan closing date to 30 October 2004 5 September 2005: Closing of Loan Account HRD = human resource development, ICAO = International Civil Aviation Organization. v 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress 31 December 1998 – 30 November 1999 Satisfactory Satisfactory 31 December 1999 – 30 November 2000 Satisfactory Partly Satisfactory 31 December 2000 – 31 May 2004 Partly Satisfactory Partly Satisfactory 30 June 2004 – 31 January 2006 Partly Satisfactory Satisfactory D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Missiona Date Persons Person-Days of Membersb Fact-Finding 3-14 February 1997 4 40 2a, c, d Appraisal 21 April-15 May 1997 7 78 2a, c, d, e, j, k Special Loan Administration 15-16 July 1999 2 4 a, d Loan Review 7, 24 February 2000 2 4 a, b Loan Review 13-16 November 2000 1 4 a Loan Review 25-27 June 2001 4 8 c, e, h, i Special Project Administration 23-25 May 2002 2 6 c, e Special Project Administration 31 May 2002 2 2 c, e Special Project Administration 4-5 June 2002 2 4 c, e Loan Review 2-16 October 2002 2 14 c, e Project Completion Reportb 6 March 2007 3 7 c, f, l 30 April 2007 a a – engineer, b – financial analyst, c – transport/project specialist , d – economist, e – social development/resettlement specialist, f – project analyst, g – operations officer, h – country portfolio manager, i – country director, j – counsel, k – programs officer, l – staff consultant of e above. b The project completion report was prepared by Shihiru Date, Transport Specialist/Mission Leader; A. Samoza, Associate Project Analyst; and social development/resettlement specialist staff consultant o o 119 00'E Basco 125 00'E Babuyan Channel o BATANES 122 00'E o o 21 00'N 21 00'N Itbayat ILOCOS NORTE BATANES APAYAO PHILIPPINES Basco Laoag CAGAYAN Sabtang THIRD AIRPORTS o 122 00'E DEVELOPMENT PROJECT ABRA Tuguegarao KALINGA (SOUTHERN PHILIPPINES) ILOCOS SUR MT.
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