Technical Assistance Consultant’s Report
Project Number: 45296-005 November 2018
Republic of the Philippines: Davao Public Transport Modernization Project
Prepared by: GHD Pty. Ltd. Makati City, Philippines
For Department of Transporation
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents
Asian Development Bank ADB TA-8941 PHI: Davao Public Transport Modernization Project (45296-005) Final Report
November 2018
Table of contents
ABBREVIATIONS ...... iii 1. Introduction...... 1 1.1 Background ...... 1 1.2 Scope of Work ...... 1 1.3 Purpose of the Final Report ...... 1 2. Background ...... 2 2.1 Public Transport Services in Davao ...... 2 2.2 Project Rationale ...... 2 2.3 Parties Involved ...... 3 2.4 Terms of Reference for the PPTA Team ...... 4 2.5 Review of Past Studies and Assistance ...... 4 3. Project Design and Technical Details ...... 10 3.1 Proposed Concept ...... 12 3.2 System Overview ...... 13 3.3 Bus Hierarchy ...... 14 3.4 Bus Fleet ...... 20 3.5 Bus Design and Branding ...... 21 3.6 Supporting Systems ...... 22 3.7 Facilities ...... 24 3.8 Civil Works ...... 26 3.9 Personnel Requirements ...... 28 3.10 Franchising and Managing DavaoBus ...... 28 3.11 Transitional Considerations ...... 29 3.12 Project Implementation Organizations: Roles and Responsibilities ...... 29 3.13 Costs and Financing ...... 30 4. Approach and Methodology ...... 33 4.1 Concept Design ...... 33 4.2 Financial ...... 35 4.3 Environmental ...... 36 4.4 Social ...... 37 4.5 Franchising ...... 39 4.6 Capacity Assessment ...... 40 5. Deliverables ...... 41 5.1 Inception Report ...... 41 5.2 Background Review and Proposed Public Transport Modernization Plan ...... 41 5.3 Economic and Financial Assessments, Project Financing Arrangements, and Procurement Plan ...... 41 5.4 Risk Assessment and Risk Management Plan ...... 42
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5.5 Environmental Assessment Review Framework ...... 42 5.6 Initial Environmental Examination ...... 42 5.7 Climate Risk and Vulnerability Assessment ...... 42 5.8 Resettlement and Indigenous Peoples Framework ...... 43 5.9 Resettlement and Indigenous Peoples Plan ...... 43 5.10 Due Diligence Report for Facilites ...... 43 5.11 Application for Certificate Precondition with National Commission on Indigenous Peoples Draft ...... 43 5.12 Gender Action Plan ...... 43 5.13 Social Development Program ...... 44 5.14 Stakeholder Engagement and Communications Plan ...... 44 5.15 Capacity Assessment Paper ...... 44 5.16 Outreach Report ...... 44 5.17 Project Administration Manual ...... 45 5.18 Implementation Schedule ...... 45 6. Conclusion...... 46
Table index
Table 3-1: Proposed MetroDavao Bus Routes ...... 14 Table 3-2: DavaoInter Routes ...... 16 Table 3-3: DavaoFeeder Routes ...... 18 Table 3-4: DavaoLocal Routes ...... 19 Table 3-5: Typical Bus Specifications for use in Davao PT Modernization ...... 21 Table 3-6: Design mock-ups for DavaoBus ...... 21 Table 3-7: Details of the facilities and their locations ...... 25 Table 3-8: Organizations and Roles ...... 29 Table 3-9: Summary Financing Plan ...... 31 Table 3-10: Cost Estimates by Expenditure Category ...... 31
Figure index
Figure 3-1: Layout of a Typical Bus Depot ...... 24 Figure 3-2: Project Implementation Structure ...... 30
Appendices
Appendix A – Terms of Reference for PPTA
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ABBREVIATIONS
ADB Asian Development Bank AFCS Automatic Fare Collection System BRT Bus Rapid Transit CAP Capacity Assessment Paper CBD Central Business District CCTV Closed-circuit television CDA Cooperative Development Authority CDIA Cities Development Initiative for Asia CLUP Comprehensive Land Use Plans CP Certificate of Precondition CPTS Comprehensive Public Transport Strategy CRVA Climate Risk and Vulnerability Assessment CTTMO City Transport and Traffic Management Office DCOTT Davao City Overland Transport Terminal DENR Department of Environment and Natural Resources DO Department Order DOTr Department of Transportation DPWH Department of Public Works and Highways DSUT Davao Sustainable Urban Transport DSWD Department of Social Welfare and Development EARF Environmental Assessment and Review Framework EIA Environmental Impact Assessment EMP Environmental Monitoring Plan ESMP Environmental and Social Management Monitoring Plan ETS Electronic Ticketing Payment System FGD focus group discussions FIRR Financial Internal Rate of Return FMA Financial Management Assessment FPIC Free Prior Informed Consent GAP Gender Action Plan GPS Global Positioning System HPBS High Priority Bus System ICB International Competitive Bidding ID identification IEE Initial Environmental Examination IGDD Integrated Gender and Development Division IP Indigenous People IPRA Indigenous Peoples Rights Act ITS Intelligent Transport System JICA Japan International Cooperation Agency KII key informant interviews km kilometres
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LGU Local Government Unit LIBOR London interbank offered rate LPTRP Local Public Transport Route Plan LRT Light Rail Transit LTFRB Land Transportation Franchising and Regulatory Boards LTO Land Transportation Office MMDA Metropolitan Manila Development Authority NCB National Competitive Bidding NCCC New City Commercial Corp NCIP National Commission on Indigenous Peoples O/D Origin/Destination OCR Ordinary Capital Resources PAGASA Philippine Atmospheric, Geophysical and Astronomical Services Administration PAM Project Administration Manual PEISS Philippine Environmental Impact Statement System PHP Philippine peso PPTA Project Preparatory Technical Assistance PUJ Public Utility Jeepney PUV Public Utility Vehicles REA Rapid Environmental Assessment RIPF Resettlement and Indigenous Peoples Framework ROW right-of-way SDP Social Development Program SPS Safeguard Policy Statement SPS Stated Preference Survey TA Technical Assistance TOR Terms of Reference UNDP United Nations Development Programme WACC Weighted Average Cost of Capital
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The project scope, implementation phasing, schedule are still being discussed and will be further reviewed and revised.
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1. Introduction
1.1 Background
The Government of the Republic of the Philippines is requesting the Asian Development Bank (ADB) to help finance a project that will deliver a modern public transport system for the City of Davao. The project aims to provide the city with an attractive, efficient, and affordable public transport system that will support inclusive economic growth for the city’s inhabitants. Strong economic growth in Davao has resulted in rapidly growing demand for travel across the expanding urban area, which is primarily based on a low-rise, low-density urban model. Public transport services are failing to keep up with changes in travel demand in terms of both geographical coverage area and operating hours. The government recognizes that upgrading and improving the operational efficiency of the urban transport system is an urgent priority if it is to realize sustained economic growth. Improved public transport systems are required that serves the whole urban area, matches passenger demand to public transport service supply, and provides a suitable and reliable mode of transport for the city. To this end, the government, through its National Environmentally Sustainable Transport Strategy, has sought help from development partners to modernize urban transport. The government approached ADB to provide assistance to Davao City, as ADB provided previous support under a policy advisory technical assistance (TA) project, known as the Davao Sustainable Urban Transport Project. This assistance laid the groundwork, and subsequently ADB funded a Project Preparatory Technical Assistance (PPTA) project to prepare a project for ADB financing. This report is a summary of the outputs of this PPTA project.
The following outputs are envisaged for the project: (i) an improved public transport system; (ii) institutional capacity strengthened; and (iii) a social development program delivered.
1.2 Scope of Work
The key objective of this PPTA was to assist the government and ADB in preparing the necessary information, studies and reports required to support a proposed ADB loan for public transport modernization in Davao City. The scope of work included: (a) building on previous work undertaken in Davao on public transport reform, and (b) undertaking the necessary project development due diligence associated with ADB PPTA activities. This included all necessary due diligence requirements for the government and the ADB to properly assess the proposed loan, including technical, economic, financial, governance and safeguards evaluations, and provide documentation covering these aspects.
1.3 Purpose of the Final Report
The purpose of the final report is to provide a summary of the project prepared by the PPTA team for the loan based on the terms of reference, and present the methodologies, approach and summaries of deliverables submitted to ADB.
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2. Background
2.1 Public Transport Services in Davao
The modernization of public transport services in the Philippines has been a major topic of discussion by transport practitioners and policymakers for several decades. For the past 60 years, jeepneys remain to be one of the most popular forms of public transport in the country due to its affordability and availability despite not being able to meet many safety and environmental standards. Over the years, the jeepney, which was based on the jeep commonly used for personal transport during the 1940’s, has been developed for passenger carriage by extending the frame and using an array of parts and engines available in the local market. Today, jeepneys comprise a truck frame with a locally manufactured body powered by an imported, used diesel engine. Within Davao City, traditional jeepney services are also augmented by filcabs, which are small modern pick-up trucks modified to carry passengers. These two vehicle types provide the backbone of passenger transport services within Davao City, as buses are virtually non-existent for intra-city services. While jeepneys commonly carry 18 passengers, filcabs are smaller vehicles with a capacity for about 12 passengers. Both vehicle types have a rear entry for passengers. The franchising system for the said modes of transport is based on a 1936 law of public carriage and has not been adapted to meet the changed circumstances of modern travel, such as the increased demand for mobility and passenger transport services that brought about a large increase in the number of public utility vehicles particularly in urban areas. The method of franchising does not require a “service” to be operated and vehicles, which are primarily privately owned, do not operate on any timetable. As a result, there are difficulties with route shortcutting and jeepneys operating illegally on routes different to their franchise, which subsequently bring about rigorous competition for passengers, low quality of services, and traffic congestion in busy central districts and commercial areas. The general outcome is that, not only are public transport services considered to be of poor quality, but also the large number of vehicles are not operated economically, nor do they use resources efficiently. There are urban areas that are left unserved and existing public transport services adversely influence traffic capacity, adding to congestion and affecting the mobility of people throughout the urban area.
2.2 Project Rationale
The proposed project will deliver a modern, highly prioritized public transport operating system for Davao city, providing an attractive, efficient, and affordable mode of transport that will support inclusive economic growth for all the city’s inhabitants. Strong economic growth in Davao has resulted in rapidly growing travel across the expanding urban area, which is primarily based on a low-rise, low-density urban model. Urban residents’ per capita incomes are increasing and they are demanding greater requirements for mobility, which translate to more efficient, affordable, secure and safe public transport services. Public transport services, which account for around 80 percent of trips, are failing to keep up with changes in travel demand in both geographical coverage area and operating hours. A public transport system that serves the whole city, matches passenger demand to public transport service supply, and provides a suitable and reliable mode of transport for the city is required and considered an urgent priority if the city is to realize sustained economic growth.
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The government recognizes that upgrading and improving the operational efficiency of urban transport systems is an urgent priority if it is to realize sustained economic growth. To this end, the government, through its National Environmentally Sustainable Transport Strategy, has sought help from development partners to modernize urban transport. The government approached ADB to provide assistance to Davao City to determine the best mode of public transport for the city. Previous support was provided under a policy advisory TA project, the Davao Sustainable Urban Transport Project. This assistance determined that a high priority bus system is the best mode for the city. This work laid the groundwork for the PPTA project to design a modern bus system including performance-based franchising arrangements, extension of the service coverage area and hours of operation, and traffic management improvements to prioritize bus services at critical points across the network. The proposed bus project will improve public transport operations by providing coverage of the full urban area and cater for the growth in travel demand at the cities expanding edges. The proposed project will include a hierarchy of interconnected bus services covering the core network along major arterial roads as well as an extensive network of feeder services covering the urbanized area. The lack of good quality public transport infrastructure will be addressed through traffic management improvements, supported by an efficient and responsive intelligent transport system (ITS), to prioritize bus services along the core network of around 137 kilometers (km) and feeder routes covering an additional 489 route-km, together with associated passenger infrastructure and bus terminal/depot facilities. The proposed project includes institutional strengthening to support the establishment, management and oversight of the new franchising mechanisms; as well as an inclusive social development program to support those currently employed in the sector during the transition to, and implementation of, a modern public transport system. The National Government and Davao City Government have shown strong commitment to improve their management of the public transport system and the city is amending its Comprehensive Transport and Traffic Code to strengthen support for stronger legal and regulatory framework for public transport system operations. Davao City is an IBM smarter city, and has developed a Public Safety and Security Command Center that integrates several city operations into a single system. The public transport improvements will augment the overall good management of the city that Davao is seeking and support safety and security through increased Closed-circuit television (CCTV) coverage and provision of lighting at major bus stops. The Project supports the programmatic approach to assistance provided by ADB to the Philippines. The Project will provide sustainable public transport operational improvements, a focus area of the ADB Strategy 2020 Midterm Review. It is also a focus area of the Sustainable Transport Initiative Operation Plan with urban transport as one of the key pillars for ADB operations in the sector. The Project is thus very well aligned with ADB’s strategic areas, as well as those for the sector.
2.3 Parties Involved
The proposed project is being developed by: Department of Transportation (DOTr) as the executing agency
City Government of Davao as the implementing agency
Asian Development Bank (ADB) as the lending agency
The other parties involved are:
Land Transportation Franchising and Regulatory Boards (LTFRB)
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Department of Public Works and Highways (DPWH)
Land Transportation Office (LTO)
It was agreed that the proposed new bus system will initially be developed and introduced by DOTr with support from the City Government of Davao. DOTr will establish a project office in Davao City to implement the project and oversee all civil works and construction. Once operational, the City Government of Davao will manage the new bus system.
2.4 Terms of Reference for the PPTA Team
The key objective of the assignment was to assist the government and ADB in preparing all necessary information and studies required to support a proposed loan for public transport modernization in the City of Davao. The scope of services built on previous work undertaken in the city on public transport reform and involved the necessary project development due diligence associated with ADB PPTA work. The services undertaken during the PPTA included all necessary due diligence requirements for the government and ADB to assess the proposed ensuing loan. These included the need for technical; economic and financial; governance; poverty and social; and safeguards evaluation and documentation.
The Terms of Reference described the loan project as a core bus network along major arterial roads interconnecting with an extensive network of feeder services, or feeder routes covering the entire urbanized area. The lack of public transport infrastructure was to be addressed through localized traffic management improvements to prioritize bus services along the core network of around 110 km and feeder routes covering an additional 400 route-km, together with associated passenger infrastructure and bus terminal facilities. Traffic management improvements should be kept, as much as possible, within the existing road network alignment right of way. Institutional strengthening to support the proposed new franchising mechanisms as well as a social development program to support transport operators in the transition to a modern transport systems were to be included in the ensuing loan. The development of suitable financing arrangements for fleet upgrades that will provide suitable vehicle stock to meet demand were also to be studied. Appendix A provides a copy of the PPTA Terms of Reference.
2.5 Review of Past Studies and Assistance
The public transport situation in Davao has been subject to a number of different studies over the past decade. ADB has provided three technical assistance grants, which together have: a) Undertaken general and detailed assessments of public transport.
b) Collected various transport and traffic data.
c) Identified various technical options for public transport modernization. d) Assessed the technical and legal basis for public transport franchising in the Philippines. e) Provided proposals for adopting a modern public transport system that will serve all residents of the city in the future and provide the required backbone for passenger movement throughout the urban area. The ADB-supported studies have been augmented by a number of additional assessments that have considered future traffic movements in the city. Japan International Cooperation Agency (JICA) assisted studies for a new city bypass route and proposals for construction of a new coastal road linking the south of the city to the city center have been conducted. While these studies examined traffic, traffic growth and movements in the city area, the studies did not involve modernization of the public transport system. More recently, specific studies have assessed the possibility of implementing and operating bus rapid transit (BRT) and light rail
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transit (LRT) systems in the central area. These studies have been promoted and undertaken by private sector entities, keen to supply transport systems to the city. These projects have focused only on a core central area with a limited transit length of about 12 to 15 km. Unfortunately, these studies have similar conclusions to those conducted by ADB, in that they demonstrated that BRT and LRT are currently premature – as passenger flows are forecast to be insufficient in the medium term to make these systems sustainable without providing a large subsidy.
2.5.1 ADB TA 7243-REG: Implementation of Asian City Transport --- Promoting Sustainable Urban Transport in Asia Project
The initial assistance from ADB was part of a regional technical assistance program designed to assess sustainable urban transport in Asian cities. Three cities, one of which was Davao were selected under TA 7243-REG: Implementation of Asian City Transport – Promoting Sustainable Urban Transport in Asia (TA 7243 REG). The primary focus of the study was to ascertain the overall transport needs for the city under the assumption that it would encompass an environmentally sustainable strategy at the core of its development agenda. In this respect, the sustainable approach examined the possibility of encouraging greater adoption of an inclusive, affordable, safe and low-carbon urban transport future. The basis of the work focused on the formulation of a strategic vision, improvement of public transport services and identification of ancillary infrastructure to support public transport.
The study of public transport routes identified five key deficiencies, namely:
An excessive number of Public Utility Vehicles (PUV) routes. Significant duplication of routes.
Low vehicle productivity and occupancy rates.
Poor route identification on individual PUVs. A lack of designated stops.
Remedial actions included suggestions to combine similar routes and remove circuitous paths, reduce the number of routes entering the central area, undertake traffic-engineering improvements to facilitate shorter routes, introduce color-coded routes for easy recognition by passengers, improve the system of vehicle dispatch to reduce waiting times, and eliminate illegal operators. The study also promulgated the potential introduction of a 12 km mass transport system, possibly a bus rapid transit, along specific avenues and boulevards. Indicative findings suggest a considerable annual operating net loss even without including costs of physical infrastructure or interest charges. The study concluded that further detailed feasibility studies would need to be undertaken to determine the most suitable transit system and its optimal timing.
The key areas for support identified include the improvement of physical infrastructure, traffic management and pedestrian controls, regulation and policy measures, and control of PUV services. It was also considered important that PUV services are integrated with those relating to tricycle and pedestrian management to facilitate more efficient people movements. Overall, the suggested actions called for an institutional structure that is able to prepare and implement a public transport plan, manage traffic, enforce regulations and assess the transport policy needs of the city.
2.5.2 Davao Sustainable Urban Transport Project
The Davao Sustainable Urban Transport Project (DSUT) was designed to examine the urban transport situation in the city, and identify the priority needs for the public transport sector that
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would cater to the future needs of access and mobility of city residents. The primary work of the study, which was undertaken in 2013, focused on the: (i) review of urban and transport plans; (ii) review of existing public transport; and (iii) preparation of a comprehensive transport strategy. The primary conclusions of the review of the existing public transport situation revealed a number of important shortcomings, namely: a. Inadequate network coverage – While the existing public transport services provided a reasonable coverage in the central business district and along the coastal roads, many areas inland were poorly served. b. Inappropriate vehicle types – In terms of road space, fuel efficiency and environmental terms, the fleet is an inefficient means of catering to passenger flows especially on the main routes. c. Complex route network – Many of the routes overlap, especially on the main core routes, causing a high number of public transport vehicles to accumulate in the central area. d. Highly fragmented transport industry – Many routes were operated by a small number of vehicles often operating between specific subdivisions and the city centre. The main thrust of the transport industry has been the welfare and livelihood of individual drivers and operators, rather than the provision of a public service. e. Weak planning and regulatory framework – Responsibilities in the sector are spread across several national and local agencies with limited coordination. The lack of enforcement in both route regulation and on-road driving behaviour, and a major focus on managing traffic rather than public transport, have combined to undermine the provision of efficiently operated and managed public transport services. f. Inadequate supporting infrastructure – Little emphasis has been given to the provision and management of infrastructure required to support basic public transport services. In general, transport policy often advocates greater space for private vehicles rather than public transport, and similarly too much emphasis is placed on moving vehicles rather than people.
The study found that to operate a public transport system that is responsive to passenger needs and operates efficiently, effectively, safely, securely, and provides accessible transport services to all residents of the urban area will require action to be taken in each of these component parts of the transport system. The Comprehensive Public Transport Strategy (CPTS) recommended a number of integrated actions and reforms to be undertaken in several areas. The primary elements of the strategy included:
a. Transport operations – improvements including network coverage, service levels, vehicle type and integration between different passenger modes.
b. Supporting infrastructure and facilities – upgrading including public transport terminals, passenger and pedestrian facilities, and public transport corridor management.
c. Contracting, franchising and financial management arrangements – focusing on the procurement and regulation of services and equitable distribution of costs and revenues.
d. Institutional and organizational arrangements – focusing on developing the ability of the City of Davao administration to plan, develop, monitor and manage the strategic public transport network on a day-to-day basis – in conjunction with national
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government partner agencies and working within the context of wider urban transport policies and reforms. e. Social impacts and capacity development needs – focusing on actions and programs to mitigate any adverse impacts of the public transport reform process, and supporting organizations and individuals who are involved in its implementation.
Initial work in assessing the social impacts identified: Shared concern among stakeholders on the poor state of public transport in the city.
Openness to improvements in the system but some concerns on the livelihood impact of transport providers, affordability of an improved system, and maintenance of transparency and accountability of involved government agencies.
A need to continue stakeholder engagement in public transport strategy development at the local level rather than the current practice of it being the responsibility of national government.
2.5.3 Managing the Cities in Asia: Davao Sustainable Urban Transport Project
The primary purpose of this TA was to provide continued support to the local government of Davao City to develop its approach to the modernization and improvement of its public transport system. The main objectives of the TA were to:
Conduct transport and traffic surveys to help build up the transport planning database of the city. Conduct a social impact survey to help the city properly address the short and medium term effects that are likely to directly impact transport providers and users by the introduction of a new public transport system. Continue the development of the associated legal and franchising mechanisms and processes that are required to support public transport reforms.
Traffic surveys and transport modelling
Several transport and traffic surveys were conducted to help build the transport planning database of the city. The various traffic and transport surveys not only provided an up to date inventory of the public transport system and its infrastructure facilities in the city, but also provided a profile of typical transport providers and users. These databases were subsequently used in the development of the transport model that was prepared to undertake public transport planning analysis and evaluation of the alternative public transport options being considered under the study.
Social Impacts and stakeholder participation
The study also undertook a survey of public transport providers and conducted stakeholder consultations. Most jeepney transport providers surveyed were males. Females were predominantly operators or conductors. The study found that the average age of transport providers is 38 years old, and half have had other jobs prior to their involvement in public transport. Roughly, 20 percent are members of transport organizations. Providers are from many ethnic groups (Cebuano being the most common) and have average family sizes (4 to 6 members). Only 20 percent have an employed spouse. The average total household monthly income bracket is PHP 8,000 to PHP 19,999, and the majority of respondents own their house and land. Franchise holders across six routes stated that they earned more money than they spent, however, in 17 routes expenses exceeded income.
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Jeepneys often do not have fixed starting and end points, nor do many use terminals. The report highlights that variation in the minimum and maximum route lengths could indicate that respondents cut trips. The study found that the majority of providers perceive the effects of a high priority bus system to be negative. Many do not feel there is a need to increase the capacity of the public transport system, however, they generally agree that traffic management is a priority for the city. Livelihood loss and income reduction are the primary negative effects perceived among respondents. These negative perceptions tend to relate to providers’ social and economic situation, as well as other factors, including their membership within a transport organization.
With regard to mitigation measures, providers are open to changing to non-transport related economic activities, particularly through access to capital to start a new business or assistance to seek alternative jobs. Providers also expressed an interest in securing scholarships for students affected by a loss in family income. They are open to being employed in the new bus system; however, transferring to an underserved route is the least favoured mitigation measure.
Recommended mitigation measures
Key mitigation measures recommended in the report include the following:
Engage all stakeholders;
Develop effective communication messages and programs;
Establish a grievance mechanism; Develop diverse livelihood restoration measures;
Provide psychological support;
Ensure mitigation measures consider gender; Build the capacity of City of Davao in mainstreaming social impacts.
Development of regulatory reform measures
With respect to regulatory reform, the report prepared a draft Department Order (DO) for DOTr. This document was intended to ease the transition from the existing public transport system to the proposed new one. At the completion of the study, the DOTr had agreed to the draft in principle and were also supportive of the plan for Davao to be considered as a pilot of the new public transport planning framework. In addition, DOTr had drafted their internal DO with the intention of preparing a general document that could be replicated in other local government units (LGUs). It was considered sufficiently flexible to be adjusted to meet the individual planning requirements of any LGU.
2.5.4 Other studies
Since the completion of the Cities Development Initiative for Asia (CDIA) study in early 2015, a number of other studies of the city’s public transport have been undertaken. In 2015, a study by the Korean private sector examined the possibility of implementing a monorail system primarily linking the airport with the central business district. The proposal was to implement the monorail under the Public-Private-Partnership approach between the private sector entities and the city government. However, the proposal required a significant subsidy which the city government was unable to support. As a consequence, the proposal has currently been withdrawn.
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More recently, in January 2017, a Chinese private entity proposed to examine the possibility of another monorail option and likely to use the same routing. The project proponents claim that the system they intend to utilize is significantly cheaper than other systems and would be viable. To increase its viability the proponents are proposing to use the system to carry freight in the evening period, and also use the system to provide tourist night time tours of the city. The proponents have yet to commence work on the technical aspects of the proposal.
In January 2017, the JICA assisted Davao City Infrastructure Development Plan and Capacity- Building project held its initial organizational meeting. This 14 month study prepared an urban infrastructure development plan for the city, which covers land use, roads, urban transportation, water supply and solid waste management. It included an assessment of the city’s transport infrastructure needs over the short term (2022), medium term (2030) and long term (2045). In this respect, it prepared a hierarchical and functional road network to serve future urban areas and connect the City of Davao to rural areas and other economic centers in Mindanao. In addition, a public transport system, particularly a suitable mass transit system, was proposed for the target planning years. As the proposal is overlapping with the preparation of the proposed bus system, the PPTA team have discussed the potential overlap with the Davao authorities and have also had meetings with the JICA team.
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3. Project Design and Technical Details
The proposed project will deliver a modern, highly prioritized public transport operating system for Davao city, providing an attractive, efficient, and affordable mode of transport that will support inclusive economic growth for all the city’s inhabitants.1 It will improve public transport operations by providing coverage of the full urban area and cater for the growth in travel demand at the cities expanding edges. The proposed project will include a hierarchy of interconnected public transport services covering the core network along major arterial roads as well as an extensive network of feeder services covering the entire urbanized area. The lack of good quality public transport infrastructure will be addressed through traffic management improvements, supported by an efficient and responsive ITS, to prioritize bus services along the core network of around 137 km and feeder routes covering an additional 489 route-km, together with associated passenger infrastructure and bus terminal/depot facilities.
The proposed project includes institutional strengthening to support the establishment, management and oversight of the new franchising mechanisms; as well as an inclusive social development program to support those currently employed in the sector during the transition to, and implementation of a modern public transport system.
ADB intends to provide funding for the proposed project through an ADB Ordinary Capital Resources (OCR) loan with government counterpart financing. The DOTr will be the executing agency and the Davao City Government will be the implementing agency. Impact and outcome
The proposed project impact will be more efficient movement of people. Its outcome will be a modern and efficient public transport system in Davao City developed. Outputs
The proposed project will have three outputs: (i) public transport system improved; (ii) institutional capacity strengthened; and (iii) social development program delivered. Output 1: Public Transport System Improved. The public transport system improvements will include a 4-tier hierarchical bus operating system. The highest tier (MetroDavao) will form the core services connecting all the major commercial centers along five routes with high frequency (less than 5-minute headways during peak periods), all-day services, with bus stops spaced from 800-1,000 meters and 400m in the central business district (CBD). The routes will be given the maximum bus priority measures. The next tier (DavaoInter) will operate in high frequencies (5 to 10-minute headways) running along eight routes mostly in the CBD and along corridors leading to the CBD. The next tier, DavaoFeeder, will provide regular all-day services that link to the top tier MetroDavao services. This tier will consist of nine routes. The final tier (DavaoLocal) will provide services to the more remote and rural areas of the city and road network. All day regular services will be provided in this tier operating at a 10 to 15-minute headway along seven routes as rural connecter services. The bus vehicles will be correctly sized to meet demand. Buses for the highest tier will have a capacity of up to 110 passengers and proposed to be articulated2 buses. The middle tier will operate standard bus vehicles with a capacity of around 65 passengers. The rural services will have a capacity of 20-30 passengers. All bus vehicles will be accessible for people with disabilities and low floor.
1 The project is included in ADB. 2015. Country Operations Business Plan: Philippines, 2015–2017. Manila. 2 The type of buses need to be furthered reviewed and studied.
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The proposed bus system network will include traffic management improvements, with an efficient and responsive ITS system, to prioritize bus services. New traffic signals will be introduced in the city’s traffic control system, and existing signals will be adjusted to allow bus priority and triggering of green phases. Dedicated bus lanes will be provided along the core routes. New bus stops will have shelters, lighting, CCTV, and passenger information. Pedestrian crossing facilities and improvements to sidewalks will be provided around new bus stops to improve accessibility of the system. New franchising arrangements will be introduced utilizing performance-based contracts and automated monitoring of service provisions. Franchises will be issued to meet passenger demand, by route, headway, coverage area, and time of day. Public transport routes will cover the entire city and services will utilize a single operating system with smart ticketing and fare collection technology. It is proposed that the number of service contracts for the franchising arrangements are kept to a minimum, preferably two to three contracts. It is proposed that the public transport rationalization plan prepared for the project be adopted as the Local Public Transport Route Plan (LPTRP) and submitted to LTFRB who will review and if acceptable issue a notice of compliance and recommend for adoption to the city as an ordinance. The proposed franchising arrangement is for the Davao City Government to act as the Public Transport Manager and enter into contract with PUV operators who will secure franchises from LTFRB. Through the provision of bus priority measures, rationalization of the number of PUVs and improved traffic management, overall, citywide travel times will be reduced by 40 percent within the city, with the average individual receiving a 27 percent reduction in travel time. Operation of a bus system requires well-trained drivers and operators. Currently there is no well-managed driver training system for bus drivers. The proposed project will establish a driver training center to train and certify the 2,360 drivers required to operate the new bus system. Post start-up, the facility will be used to train bus drivers on provincial and regional routes as well as periodic renewal of certificates. The center is expected to become the model for bus driver training nationwide. Output 2: Institutional Capacity Strengthened. The proposed institutional capacity strengthening program will provide support to plan, implement, regulate, and monitor public transport system operations, including training of staff from the Davao City Government, LTFRB, LTO and DOTr.
The capacity development program comprises two components. The first will provide resources for technical training and will cover multiple types of training including attendance at short courses, delivery of courses to transport and other specialists needed to deliver transport infrastructure and services, attendance at technical workshops and knowledge events and participation in short term education courses. The second focus is to build the capacity of the Davao City Transport and Traffic Management Office (CTTMO). This organization has been recently strengthened by creation of divisions to cover transport planning and traffic engineering. Recruitment of candidates to fill plantilla positions is now underway. Provision of technical experts and specialists will be provided to both initiate start-up work programs and processes and provide the knowledge and skills needed by staff. Output 3: Social Development Program Delivered. The proposed social development program will provide support for transitioning current public transport providers and those employed in the sector during the transition and implementation of a modern public transport system in Davao. This Social Development Program (SDP) seeks to build the capacity of the affected people to absorb the shocks caused by the project. The SDP has three major objectives: (i) to mitigate the impact of project-induced economic and social impacts on the Public Utility Jeepney (PUJ) sector; (ii) to help the PUJ sector not only to cope with the expected impacts but to build their
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capacity to improve their lives; and (iii) to protect the PUJ sector and their dependents from other risks which may happen such as lifecycle risks, illness, and death and social risks such as loss of status and dysfunctional behavior and actions which may arise from this loss. The SDP is aligned with ADB’s Social Protection Policy. The program has six components, including (i) social preparation, (ii) opt-in/entry support to gain employment in the new bus system, (iii) opt- out or exit/retrenchment support for those who choose not to participate in the new bus system, (iv) technical education and skills development, (v) livelihood restoration through capital funding, (vi) health and micro-insurance, and (vi) emergency assistance.
3.1 Proposed Concept
In light of findings from previous studies and assistance grants, the PPTA sought to prepare a project for an ADB loan that followed from previous recommendations that found that the most appropriate mode of transport fit for the context of Davao City is the High Priority Bus System (HPBS).
The result of the PPTA work is the concept design of DavaoBus, comprising a hierarchy of interconnected bus services along major arterial roads, as well as an extensive network of feeder services covering the entire urbanized area. Bus types depend on the configuration of the roads and the passenger flow within the route/tier. In general, larger buses (articulated buses3) are designed to operate on long-haul high capacity routes serving high population density locations, while the smaller vehicles (standard and smaller buses) will be used for feeder and local services where passenger flows are lighter and population densities are low. When operational, the public transport system will comprise 29 bus routes, divided into four tiers according to the levels of demand: MetroDavao: The MetroDavao services will connect all major commercial centres in the city with each other, providing the backbone passenger service required to meet the mobility and accessibility needs of the population. Services will be operating all- day at high frequencies, with bus stops situated around the CBD and routes given maximum priority measures for buses.
DavaoInter: The DavaoInter services will be designed to connect the inner urban areas directly to the Davao CBD. Similar to MetroDavao, this bus tier will operate at high frequencies with routes mostly along the CBD and along corridors leading to the CBD. DavaoFeeder: The DavaoFeeder services will be designed to link smaller centres and area of more dispersed populations to the MetroDavao services. Buses from this tier will provide services to the more remote and rural areas of the city and road network and will operate in a slightly lower frequency compared to the MetroDavao and DavaoInter tiers.
DavaoLocal: The DavaoLocal services will be designed to link the many outer rural areas of the city to the main transport system at integrated terminals within the centre of the network system.
Buses for the highest tier will have a capacity of up to 110 passengers (articulated buses4), while buses from the middle tier will accommodate a capacity of around 65 passengers. The rural services will have a capacity of 20-30 passengers. All bus vehicles will be accessible for people with disabilities (i.e. low floor).
3 . The type of buses need to be furthered reviewed and studied. 4 same as Footnote 3
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The proposed bus system network will include an efficient and responsive ITS to prioritize bus services. New traffic signals will be introduced in the city’s traffic control system, and existing signals will be adjusted to allow bus priority and triggering of green phases. Dedicated bus lane will be provided along core routes. New bus stops will have shelters, lighting, CCTV, and passenger information. Pedestrian crossing facilities and improvements to sidewalks will be provided around new bus stops to improve accessibility of the system. New franchising arrangements will be introduced utilising performance-based contracts and automated monitoring of service provisions. Franchises will be issued to meet passenger demand, by route, headway, coverage area, and time of day.
3.2 System Overview
Currently, all 120 public utility jeepney routes converge in the central business district, which results in a concentration of passengers forced into the city to change routes. The PPTA team used a base network design approach to analyse the current types of services and demand, and in turn adopted three design principles:
1. Provide an all day high capacity service along the core roads in the city.
2. Provide feeder services that connect to these high capacity services on the core roads with local bus stops to ensure good accessibility.
3. Provide routes that deliver a service which is between the feeder services and high capacity services on the core roads. As a result, the PPTA team developed an integrated tiered network to support various daily trip origins and destinations taking into account passenger demand. The integrated network comprises a 4-tier system, within a decentralised network that provides 12 interchange locations, thereby allowing passengers to avoid the congestion in the city. The tiers are referred to as:
MetroDavao
DavaoInter(mediate) DavaoFeeder
DavaoLocal The all-day high capacity services on the core roads are referred to as the MetroDavao bus service while the connecting services have been developed to link with adjacent urban areas termed DavaoFeeder, and the more remote services are termed as DavaoLocal services. The in-between routes have been developed as DavaoInter(mediate). Further details on these tiers are described below. The PPTA team proposed that the overall system be called ‘DavaoBus’.
3.2.1 Route numbering
Route numbering is not applied on an ad hoc basis but as part of a well-designed system. It is based on geography and hierarchy, with the following application commonly adopted in other cities:
Routes are numbered based on a clockwise from north approach;
Panabo/Bunawan routes start with a 1;
Inner area routes start with a 2; Toril routes start with a 3;
Inner north routes start with a 4;
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Calinan routes start with a 5;
Outer north routes start with a 6;
MetroDavao routes are labelled M1 to M5 based on geography; DavaoInter routes are two digit routes X1 to Xn where X is based on the geography and n is an increment for that area; DavaoFeeder routes are X01 to X0n where X is geography and n is an increment for that area; and
DavaoLocal routes are X91 to X9n where X is geography and n is an increment for that area.
3.3 Bus Hierarchy
The bus hierarchy has been designed to interlink bus services to best support and facilitate passenger movements within and across the entire Davao metropolitan area.
3.3.1 MetroDavao
This tier provides the core bus services of the entire system, and uses main roads that link major commercial centres to the central business district. It provides high frequency, all day services, acting as the backbone passenger service. The main locations served include Toril, Ulas, Matina Aplaya, Davao City CBD, Lanang, Sasa, Buhangin, Davao International Airport, Mintal, Tugbok, Calinan, Bunawan and Panabo (Table 3-1). During peak hours, buses will operate at 5-minute headways while outside the peak periods, 10-minute headways are planned. Overnight services are anticipated at 20-minute headways. With the build-up of business process outsourcing industries in the city, there will be an increasing demand for night time services and the frequency of services will be monitored and adjusted to reflect changing demands.
Bus stop spacing is planned to be at a distance of 800-1000 meters, except in the CBD area, where bus stops will be spaced at a distance of 400 meters. It is planned that the MetroDavao services will have continuous bus priority at traffic lights and in sections dedicated bus lanes, to minimize trip times. Bus stops will interconnect MetroDavao buses with other bus tiers, to provide optimum convenience for passenger movements.
Table 3-1: Proposed MetroDavao Bus Routes
Route From To Via Locations Served Lasang Davao-Agusan Road Bunawan J.P. Laurel Avenue Tibungco R. Castillo St. Panabo Roxas Panacan M1 Lapu-Lapu St. City Avenue Sasa Port Santa Ana Avenue Agdao C.M. Recto Avenue Ateneo de Davao University Roxas Avenue City Center Matina Aplaya Road Matina Aplaya MacArthur Highway SM Ecoland Quimpo Boulevard Davao City Hall Quezon Boulevard City Center Matina M2 Bunawan Pichon St. Ateneo de Davao University Aplaya C.M. Recto Avenue Magsaysay Park Roxas Avenue Santa Ana Port Quezon Boulevard Bajada Leon Garcia St. Buhangin
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Route From To Via Locations Served Dacudao Avenue Davao City International Bajada Flyover Airport Buhangin-Cabantian-Indangan Road Panacan C.P. Garcia Highway Tibungco Airport Terminal Entry Road Bunawan Airport Terminal Exit Road C.P. Garcia Highway Davao-Agusan Road Bago Aplaya Puan Ulas Matina Crossing New City Commercial Center Davao-Cotabato Highway (NCCC) Mall Bago MacArthur Highway Bankerohan M3 Sasa Port Aplaya Quirino Avenue City Center J.P. Laurel Avenue G-Mall Victoria Plaza Abreeza Mall Bajada SM Lanang Sasa Port Davao-Cotabato Highway MacArthur Highway Toril Quimpo Boulevard Puan San Pedro St. Ulas M4 Toril SM Lanang C.M. Recto Avenue Matina Crossing Santa Ana Avenue SM Ecoland Lapu-Lapu St. City Center Cabaguio Avenue SM Lanang J.P. Laurel Avenue Calinan Tugbok Mintal Davao-Bukidnon Highway Ulas Santa Ana MacArthur Highway M5 Calinan Matina Crossing Avenue Quirino Avenue NCCC Mall Santa Ana Avenue Bankerohan City Center Santa Ana Port
3.3.2 DavaoInter
The second tier is designed to connect inner city areas directly to the CBD, as many of these areas are too close to require passenger interchange locations. These services will also be high frequency during peak hours, operating at a 10-minute headway, and reducing to a 15-minute headway during off-peak periods. It is proposed that overnight services will operate with a 30- minute headway. The main locations served include Talomo Proper, Bangkal, Matina, Bankerohan, City Centre, Tugbok, Mintal, Catalunan Grande, Mandung, Tagatto, Waan, Santa Ana Port, Magtuod, Langub, Srine Hills, Acacia, Indangan, Buhangin, Cabantian, Panacan, Sasa, Agdao and Bajada (Table 3-2).
Bus stop spacing will be approximately 400 m, with some bus priority measures where these routes share MetroDavao corridors. High capacity buses using standard regular 12 m length vehicles will be used for DavaoInter services.
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Table 3-2: DavaoInter Routes
Route From To Via Locations Served Talomo Proper Talomo Road Bangkal MacArthur Highway Matina Aplaya Central Park Avenue Ecoland Subdivision Cordillera Road Davao City Overland Matina Aplaya Road Transport Terminal Ecoland Drive (DCOTT) Talomo Sta. Ana Avenue Maya St. Bankerohan 21 Proper (via SM Lanang) Guillermo Torres St. City Center MacArthur Highway G-Mall Quirino Highway Victoria Plaza J.P. Laurel Avenue Abreeza Mall R. Castillo St. Bajada Lapu-Lapu St. SM Lanang Sta. Ana Avenue Agdao Public Market Sta. Ana Port C. Villafuerte St. Davao-Bukidnon Highway Calinan Mintal Road Tugbok Catalunan Grande Road Mintal C.P. Garcia Highway 31 Calinan Roxas Avenue Catalunan Grande Matina Pangi Road Matina Pangi MacArthur Highway SM Ecoland Quimpo Boulevard City Center Quezon Boulevard Roxas Avenue
Mandug Road Waan Road Mandug Magtuod-Tugbok Road First Mindanao Business and C.P. Garcia Highway Industrial Park F.S. Dizon Road Davao City Hall (via Deca Homes Tigatto 41 Mandug J.P. Laurel Avenue Waan) Waan F. Torres St. El Rio Vista Pichon St. Victoria Plaza C.M. Recto Avenue Davao City Hall San Pedro St. City Center San Pedro Ext.
Gap Farming Resort NCCC Mall C.P. Garcia Highway Bankerohan Ma-a Road Davao City Hall MacArthur Highway City Center 42 Ma-a Sasa Pichon St. G-Mall C.M. Recto Avenue Victoria Plaza J.P. Laurel Avenue Abreeza Mall R. Castillo St. Bajada SM Lanang Sasa Port
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Route From To Via Locations Served
Magtuod Langub Langub Road Shrine Hills/Jack’s Shrine Hills Road Ridge MacArthur Highway 43 Langub Magsaysay Park GSIS Subdivision Quirino Avenue NCCC Mall Ponciano St. Bankerohan Magsaysay Avenue City Center Magsaysay Park
Buhangin-Cabantian-Indangan Road Cabantian Road Cabantian-Mamay Road Acacia Mamay Road Indangan J.P. Laurel Avenue Buhangin Cabaguio Avenue 61 Acacia Davao City Hall Cabantian Lapu-Lapu St. SM Lanang Santa Ana Avenue City Center Ponciano St. Davao City Hall San Pedro St. Iñigo St. Pichon St. C.M. Recto Avenue
Mandug Road Buhangin C.P. Garcia Highway Davao International Airport Terminal Entry Road Airport Airport Terminal Exit Road Panacan Roxas Avenue (via C.P. Garcia Highway 62 Buhangin Proper Sasa Port Airport) J.P. Laurel Avenue Agdao R. Castillo St. Santa Ana Port Leon Garcia St. Magsaysay Park Quezon Boulevard City Center Roxas Avenue
Mandug Road Buhangin-Lapanday Road Mandug Dacudao Avenue First Mindanao Lapu-Lapu St. Business and Davao City Hall (via Santa Ana Avenue Industrial Park 63 Mandug Buhangin) Ponciano St. Deca Homes Tigatto San Pedro St. Buhangin Iñigo St. Bajada Pichon St. City Center C.M. Recto Avenue
3.3.3 DavaoFeeder
The third tier is designed to transport passengers from the smaller urban centres and areas of dispersed populations to the MetroDavao services operating on the core roads. DavaoFeeder services will provide regular services with bus stops paced at 400 m intervals. There will be 10- minute headway during peak periods and 15-minute headways during the off-peak hours, with less frequency overnight.
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The locations to be served by the DavaoFeeder services are Bunawan, Tibungco, Panacan, Acacia, Indangan, Sasa, Mahayag, Lasang, Lizada, Toril, Dumoy, Bago Gallera, Bago Oshiro, Sto. Nino, Mintal, Crossing Bayabas, Matina, Bangkas Heights, Baliok, Catalunan, Pequeno, Tacunan, Matina Biao, Calinan, Wangan, Tagakpan, Manambulan, Angalan, Cabantian, and Buhangin (Table 3-3).
Table 3-3: DavaoFeeder Routes
Route From To Via Locations Served Bunawan-San Isidro Road San Isidro Davao-Agusan Highway Davao Bunawan C.P. Garcia Highway 101 San Isidro International Tibungco Airport Terminal Entry Airport Panacan Road Davao International Airport Airport Terminal Exit Road Bunawan Bunawan-Mahayag- Mahayag Acacia Road Acacia 102 Bunawan Sasa Port Malagamot Road Indangan Davao-Agusan Highway Panacan J.P. Laurel Avenue Sasa Port Km 18 Crossing Eliong Tibungco Road Acacia 103 Tibungco Panacan Bunawan-Mahayag- Acacia Road Indangan Malagamot Road Panacan Saavedra St. Fish Port Access Road M. Guardian St. Lizada Dumoy Road Toril Davao-Cotabato Dumoy Highway Puan 201 Toril Mintal Bago Gallera-Bago Bago Gallera Oshiro-Sto. Niño Road Bago Oshiro San Francisco St. Sto. Niño Golden Shower St. Mintal Davao-Bukidnon Deca Homes Mintal Highway Mintal Road Fish Port Access Road Saavedra St. Lizada Davao-Cotabato Toril Highway Crossing Bayabas Libby Road Baliok Davao-Cotabato 202 Toril Fish Port Ecoland Highway Puan MacArthur Highway Bangkal Tulip Drive Matina Crossing Ecoland Drive Ecoland Subdivision Eco West Drive Sm Ecoland
Manambulan-Tagakpan Bangkas Heights Road Baliok 203 Bangkas Mintal Libby Road Dumoy Baliok-Dumoy Road Puan
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Route From To Via Locations Served Davao-Cotabato Ulas Highway Catalunan Pequeño Davao-Bukidnon Mintal Highway Davao-Bukidnon Catalunan Pequeño Highway Mintal Mintal Road Tacunan Tacunan Road 301 Mintal Calinan Matina Biao De Lara St. Biao Escuela Davao-Bukidnon Highway Biao Joaquin Calinan Poblacion Davao-Bukidnon Highway Villafuerte St. Calinan Poblacion Kalye Apeke Wangan Calinan-Wangan Road Subasta Wangan-Subasta- Tagakpan 302 Calinan Mintal Tagakpan Road Manambulan Manambulan-Tagakpan Angalan Road Tugbok Tagakpan-Angalan Mintal Road Catalunan Pequeño Davao-Bukidnon Highway Cabantian Road Buhangin-Cabantian- Cabantian Indangan Road Buhangin Proper C.P. Garcia Highway Matina Pangi 601 Cabantian Matina Aplaya Matina Pangi Road Matina Aplaya Matina Aplaya Road Ecoland Subdivision Ecoland Drive SM Ecoland Eco West Drive
3.3.4 DavaoLocal
The fourth tier is designed to link the outer rural areas of the city to the bus system at integrated bus terminals in subcenter locations. They will provide regular services, with both bus stops provided at many locations approximately every 400 m, and hail-and-ride for less populated sections of the routes. The DavaoLocal bus services are expected to serve Sibulan, Baracatan, Binugao, Sirawan, Toril, Bayabas, Eden, Catigan, Bato, Tagurano, Lumondao, Tamugan, Calinan, Carmen, Cadalian, Baguio, Malagos, Lacson, Lamanan, Inayangan, Unapan, Daliaon, Camansi, Alambre, Lubogan, Crossing, Bayabas, Toril, Tugbok, Biao Guianga, Biao Escuela, and Magtuod (Table 3-4).
Table 3-4: DavaoLocal Routes
Route From To Via Locations Served Inawayan-Baracatan Road Sibulan Davao-Cotabato Highway Baracatan Saavedra St. Binugao 291 Baracatan Eden De Guzman St. Sirawan Dumoy Road Toril Davao-Cotabato Highway Bayabas Bayabas-Eden Road Eden
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Route From To Via Locations Served Sirawan-Catigan Road Catigan Davao-Cotabato Highway Sirawan Saavedra St. Toril 292 Catigan Tagurano Agton St. Bayabas Davao-Cotabato Highway Bato Bayabas-Eden Road Tagurano Bayabas-Bato-Tagurano Road Lumondao Davao-Bukidnon Highway Marilog Proper 293 Lumondao Calinan C. Villafuerte St. Tamugan Calinan Poblacion Carmen Cadalian Calinan-Baguio Road Baguio Proper Davao-Bukidnon Highway Malagos 294 Carmen Inayangan Barangay Lacson Road Calinan Calinan-Paquibato Road Lacson Lamanan Inayangan
Tambobong Tambobong Road Unapan 295 Tambobong Calinan Davao-Bukidnon Highway Tamugan C. Villafuerte St. Lacson Calinan Poblacion Daliaon Plantation-Camansi Road Daliaon Plantation Camansi-Alambre Road Camansi Alambre-Lubogan Road Alambre 391 Daliaon Plantation Toril Davao-Cotabato Old Road Lubogan Agton St. Crossing Bayabas Andaya St. Toril Tugbok Biao Road Biao Guianga 691 Tugbok Waan Magtuod-Tugbok Road Biao Escuela Magtuod
3.4 Bus Fleet
The PPTA team recommends articulated, standard and smaller buses for the DavaoBus services. Each of the vehicle types are designed to perform a different role in the bus system, with the larger buses designed to operate on long-haul, high capacity routes serving high population density locations. The smaller vehicles will provide feeder and local services where passenger flows are lighter and population densities are low. In determining the type and size of the buses required for DavaoBus, the PPTA team considered the passenger capacity of each vehicle type, access for people with mobility issues, demand by time of the day, and road design and geography. A comparison was also made between the merits of different fuel types (refer to Chapter 10 of the Background Review and Proposed Public Transport Modernization Plan). Recommended vehicle specifications are described in Table 3-5.
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Table 3-5: Typical Bus Specifications for use in Davao PT Modernization
Attribute Articulated Standard Smaller
Length (metres) 18.5 12-12.5 8.9
Width (metres) 2.9 2.9 2.2
No of passengers 3 x bifold 2 x bifold 1 x bifold doors
Wheelchair access Front door Front or rear Front
Ramp Yes Yes Yes
Luggage carrier Front Front Next to driver
Seats 64 44 20
Standing room 46 21 0
Ticketing Integrated electronic Integrated electronic Integrated electronic
Information display Yes Yes No
Audio information Yes Yes No
Airconditioning Standard Standard Standard DavaoInter DavaoFeeder To be used on DavaoMetro DavaoFeeder DavaoLocal
The PPTA team determined the fleet size by consolidating the number of in-service buses and making an allowance for additional buses to support the system. It considered the bus frequency to support passenger demand together with the impacts of operational requirements such as traffic congestion and rest breaks. The Background Review and Proposed Public Transport Modernization Plan outlines the methodology and specifics, nonetheless, the proposed DavaoBus system will require a total of 994 buses wherein 219 are articulated, 524 are regular, and 219 are small buses.
3.5 Bus Design and Branding
Design mock ups for the proposed MetroDavao, DavaoInter, DavaoFeeder and DavaoLocal bus fleet is displayed in Table 3-6, nonetheless the PPTA team recommends that a competition be held to provide sample designs that best represent the city and its residents.
Table 3-6: Design mock-ups for DavaoBus
MetroDavao DavaoInter
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DavaoFeeder DavaoLocal
3.6 Supporting Systems
3.6.1 Integrated land use transport planning
The PPTA team recommends that an integrated land use transport plan or otherwise called a traffic and transport master plan be developed for Davao City. The purpose is to set the strategic direction for the planning and management of the transport system, and outline the priorities for infrastructure, transport modes (cycling and walking included) and access within the City. It will allow the city to prioritize investments and address key issues such as road and parking management, road corridor management and property access. The Background Review and Proposed Public Transport Modernization Plan provides a recommendation on what should be included in the integrated land use transport plan/master transport plan.
3.6.2 Fare calculations
A key feature of a modern public transport system is the integration of tickets between routes. This can be achieved either through free transfers (single fare system) or end-to-end journey charging based on a distance or zonal system. This allows passengers to transfer between buses and support the overall system (with different stopping patterns and destinations) to achieve their ultimate destination without additional fares. Currently, Davao City public transport services operates on a cash-based system where users pay for each individual vehicle ride. This can result in a passenger who has to use a tricycle and two jeepneys having to pay three minimum fares and a distance-based amount. The Background Review and Proposed Public Transport Modernization Plan provides an overview of the different fare systems to be considered for DavaoBus. The PPTA team recommends that a single ticketing system with a zonal-based fare system be considered, due to the geography of the metropolitan area. This will allow integration between routes and fare payments, so that passengers will not need to pay the minimum fare again if they change buses.
3.6.3 Electronic ticketing system
The PPTA team also recommends the use of an electronic ticketing payment system (ETS). The key benefits of using an ETS are (i) efficient bus operations, (ii) revenue protection, and (iii) enhanced transport planning. As many residents of Davao City have low incomes and work within a cash-based economy, the system must enable payment methods that enable low values to be stored on the cards and do not require the use of credit cards for automatic top-up of the value on the card. Many residents of the city have pre-paid mobile phones, with recharge cards being bought at major shops, local kiosks and stores. This system is highly applicable to the ETS for Davao City. Centralized payment processing will require back-of-house banking, onboard readers, Global Positioning System (GPS) or beacon-based tracking of bus vehicles, and other features depending on the specific system selected during the detailed design phase.
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3.6.4 Intelligent transportation systems and bus priority
ITS are recommended to be added to the traffic signalling system of the city to prioritize buses operating on core routes in specific sections to decrease the amount of travel time for passengers. The PPTA team recommends a system that focuses on a signal priority system for DavaoBus rather than a pre-emption system, as it is a less disruptive option. Capacity building for the enforcers and technical personnel involved in traffic management will also be implemented as one of the components of the project. It is also recommended that active bus priority signals be used over passive bus priority signals. Passive bus priority signals are traffic signals that are triggered by a bus passing by (or sitting on) a detector. These signals are used to allow buses to turn left from the kerbside lane, jump a queue or perform other unusual manoeuvers. Active bus signals are combined with bus tracking systems to provide either absolute priority or to support timetable, travel time and travel speed reliability.
3.6.5 Bus-only lanes
The PPTA team recommend that traffic signals that prioritize buses be combined with bus lanes for the DavaoBus system. Given that six-lane road widths predominate in Davao City, it is recommended that the bus only lanes be located on the second of the three lanes, so as to allow property access by cars and other vehicles and parking outside of peak periods. In 4-lane stretches, the kerbside lane is proposed to be adopted.
3.6.6 Management support systems
Technology is also recommended for: (i) tracking buses via GPS and wifi/phone systems to enable real-time information on their location, (ii) managing the maintenance, fuel usage, expenditures and vehicle lifecycle of the fleet, (iii) using the data from the electronic fare collection system within software programs designed to facilitate transport planning and modelling, and (iv) timetabling and scheduling. The Background Review and Proposed Public Transport Modernization Plan provides some recommendations on the software programs that could be used for DavaoBus.
3.6.7 Customer information systems
Customer information systems allow passengers to plan journeys, be informed along the course of their journey and be able to understand the public transport system. This includes published timetables and printed/electronic maps to advanced trip planning through the use of Apps for smart phones and interchange announcements on buses. Information can be conveyed to customers in three ways (i) static format (such as printed timetables), (ii) dynamic format to provide updates on services and changes to routes, and (iii) real-time information that is integrated with bus tracking systems to provide in-transit, accurate information. The PPTA team proposes the following specifications for DavaoBus:
1. Prior to commencing journey
Trip planning
Real-time issues
2. At bus stops and interchanges
Metro Davao
– Real time bus information displays – Interactive maps and timetables DavaoInter
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– Real time bus information via overhead display – Static maps and timetable DavaoFeeder and Davao Local – Static maps and timetables 3. On bus
Metro Davao – Real time bus information displays – Route interchange and major destination announcements – Delay announcements DavaoInter, DavaoFeeder and Davao Local
– Route interchange and major destination announcements – Static maps and timetable
3.6.8 System management
The PPTA team provides some recommendations in the Background Review and Proposed Public Transport Modernization Plan regarding requirements, maintenance and inspections of the fleet and supporting infrastructure and systems, the management of contracts with bus operators and timetable planning and scheduling.
3.7 Facilities
The PPTA team identified that six depots, three terminals and a bus driver training facility is required for the proposed DavaoBus system. The bus depots are large in size where up to 200 buses can be stored, cleaned and maintained, and as they are often the starting point for drivers on their shifts, also have training and administration offices as part of the complex. Three large depots primarily designed to support MetroDavao and DavaoInter services and three smaller depots to support the outer DavaoFeeder and DavaoLocal services are recommended. These depots have sizes ranging from 3 to 4 hectares depending on the location. A general modern depot configuration is shown in (Figure 3-1).
Figure 3-1: Layout of a Typical Bus Depot
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The large depots are recommended to be located near major sub-centres while the smaller depots at the midpoint of the three MetroDavao corridors and in locations near DavaoFeeder and DavaoLocal routes. The depots may be co-located with terminals. Interchange terminals will integrate services between out-of-city provincial services and DavaoBus services. These are to be located on the three main arterial roads leading out of the city at Bunawan on the northern peripheral, Toril on the southern peripheral and Calinan on the western peripheral. At each of these locations, the interchange terminal will be provided within or in close proximity to the depot sites. A training facility is also proposed at the Calinan terminal and/or depot site. The depots, terminals and training centre will not be located in Ancestral Domain areas. Table 3-7 provides details of the facilities locations and specifics.
Table 3-7: Details of the facilities and their locations
Subproject Type Land Area Barangays (ha) Outer Terminal, depot and bus drivers’ Roughly Barangay Calinan Poblacion and Northwest training centre 5.0 Barangay Riverside Talomo River Depot and hectares located in Calinan District, and Terminal Small depot to support the outer Barangay Malagos, within Baguio (Calinan) DavaoFeeder and DavaoLocal Depot: 3.0 District. services Terminal: Terminal for the inter-provincial 1.0 buses to interchange with the Training city buses, and a bus driver Facility: 1.0 training school/facility (DTF) Outer Combined large depot and Roughly Barangay Bunawan Proper within Northeast terminal 5.0 ha Bunawan district Depot and Terminal Large depot to support Depot: 4.0 (Bunawan) MetroDavao and DavaoInter Terminal: Terminal for the inter-provincial 1.0 buses to interchange with the city buses Outer Combined small depot and Roughly Barangay Crossing-Bayabas, Barangay Southwest terminal 4.0 ha in Lizada and Barangay Daliao, within Toril Depot and total District Terminal Small depot to support the outer (Toril) DavaoFeeder and DavaoLocal Depot: 3.0 services Terminal: Terminal for the inter-provincial 1.0 buses to interchange with the city buses Inner Large depot Roughly Barangay Panacan, Bunawan District Northeast 4.0 ha Depot Large depot to support (Panacan) MetroDavao and DavaoInter Inner West Large depot Roughly Barangay Catalunan Pequeño and Depot 4.0 ha Barangay Catalunan Grande in Talomo (Catalunan Large depot to support District and Barangay Bago-Oshiro, Pequeno) MetroDavao and DavaoInter Barangay Mintal and Barangay Sto Niño in Tugbok District Inner Small depot Roughly Barangay Cabantian within Buhangin North 3.0 ha district. Depot Small depot to support the outer (Buhangin) DavaoFeeder and DavaoLocal services Depot facilities include administration block, bus maintenance facility, maintenance bays, parts storage, fuelling and bus washing facility, general vehicle parking (uncovered), bus parking (covered including circulation). Bus Terminal facilities include loading/unloading areas (covered), passenger waiting room, office building, comfort room and amenities, and food stalls.
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The process of land acquisition for these facilities may trigger physical and economic displacement, permanent damage to structures, crops and trees, and loss of land use in areas where IPs/ICCs may abound. The facilities are expected to be located on sparsely inhabited land outside of the central business district and high population density locations. Anticipated environmental and social impacts, which are considered to be reversible, include: (i) During construction –vegetation removal, soil erosion, generation of noise, spoils, wastes, dusts and gaseous emissions, decreased air quality; and (ii) During operation – increase in noise, increase in vehicles on road and associated safety issues, generation of wastes and gaseous emissions, and decreased air quality.
3.8 Civil Works
A range of road-related and passenger-related minor civil works is recommended.
3.8.1 Bus stops
It will be important to have stops located at convenient spacing and close to origin and destinations. Roughly 850 bus stops are needed on existing right of way (ROW). The stops of the MetroDavao route (232 locations) will comprise waiting shelters, seats and re-paved sidewalk. DavaoInter routes with a total of 616 bus stops will have similar facilities. Feeder and Local routes will be provided on a case-by-case basis depending on the need for passenger shelter. The locations of the stops have only been broadly identified using both maps and field observations. The exact locations will be determined during detailed design and it is possible that locations will be adjusted due to physical or other limitations of the location. At this stage it is not envisaged to require substantial movement of vendors or infrastructure to accommodate a bus stop shelter. Ambulant vendors may be impacted during civil works and may be relocated to another location. Roughly 8,000 signs will also be required to be installed, including signs indicating the station ID and information about the bus stop and services, pedestrian crossing, and no crossing signs) within ROW. The signs are estimated based on the number of bus stops.
3.8.2 Bus lanes
The use of bus lanes will provide greater assurance that bus services will be subject to less traffic congestion. Bus lanes are initially planned to be imposed only on the MetroDavao core roads. For easy recognition and reminder for motorists, appropriate lane marking identifiable to the DavaoBus system will be applied along the designated lanes. This will entail 21 km of green asphalt laid on existing road surfaces. Green asphalt overlay in combination with reflectorized “Bus Only” marking on the road surface is designed to notify drivers of private vehicles of the bus lane and of bus stops. The green asphalt is a 20-meter overlay every 200 meters in the bus lane and will also be used at each bus stop location. It is estimated that a total of 90,000 square meters of green asphalt overlay will be required throughout the bus network.
3.8.3 Zebra pedestrian crossings
Zebra crossings will be needed at or near bus stops where there are not overpasses in areas in the CBD and high density locations. An estimated 425 existing and new zebra crossings will be created/updated using thermoplastic paint on the existing road surface.
3.8.4 Traffic signals
To aid in the flow of traffic, new traffic signal lights are recommended to be installed at 35 junctions on bus routes with significant traffic volumes. Locations have been proposed, however will be finalised during the detailed engineering design phase.
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3.8.5 Pedestrian overpasses
Based on the existing road network, it is envisaged that eight new pedestrian overpasses will need to be installed. This is anticipated to be located within existing ROW, and no land acquisition is anticipated at the tentative locations proposed for an overpass installed for the project. However, detailed analysis of pedestrian movements will be undertaken during the detailed engineering to determine the need for and exact location of pedestrian facilities such as overpasses.
3.8.6 Traffic calming measures
To augment the management of pedestrians in street crossings, traffic calming devices will also be considered. Roughly, 12 traffic tables are needed to be installed (bus-friendly speed humps). These are designed to slow traffic, ease pedestrian movements and enhance road safety at key locations.
3.8.7 Pedestrian midblock signals
Pedestrian midblock signals is recommended in areas where there may be safety concerns for pedestrians crossing the road in high speed locations. It is anticipated that two midblock pedestrian signals are needed to be installed.
3.8.8 Pedestrian barriers and fences
Barriers will help to discourage pedestrians crossing at unsafe and restricted sections of the roads. It is estimated that 3.5 km of pedestrian barriers and guardrails will be needed for the project. Barriers should be durable, permanent, highly visible and easy to maintain. The exact locations of guardrails and barriers have yet to be determined and this will be part of the detailed pedestrian surveys and movement analysis. The locations will all be located in busy commercial areas and are required for road safety purposes to channel pedestrian movements to safe road crossing locations. They also prevent drivers from ad hoc parking along busy streets.
3.8.9 Road pavement improvements
It is not envisaged to rehabilitate major stretches of road and buses will use the existing road network the bulk of which is in good condition. However, there are a small number of locations with deteriorated pavement surfaces due to both poorly rehabilitated surface repair following utility provision, poor quality construction and defects attributable to environmental factors such as flooding. Resources are provided under the project to undertake spot improvements where deteriorated surface conditions warrant. The project will provide resources to cover approximately 27,000 square meters of road rehabilitation which amounts is less than 0.5% of the length of the bus network. This activity is not anticipated to have any impacts on external factors such as environment or social impacts and will not require any additional ROW.
3.8.10 Sidew alks
To improve accessibility of the buses by pedestrians, spot clearing and repair of sidewalks on existing ROW is recommended. Sidewalks are an important component of a bus system as bus passengers need to walk to and from bus stops to access the system. The allocation of 16,000 square meters of sidewalks under the project will provide short lengths of sidewalk linking bus stops to the pedestrian network at various locations. In most instances, these will be less than 50 meters in length and provide improved access to the bus network especially for persons with disabilities and less abled individuals. They will also add to road safety conditions by providing even surfaced walkways, and separate people from vehicles through the provision of a kerb structure. The location of additional sidewalk length will be determined during the detailed
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design stage when bus stop locations are fixed and the need for additional sidewalk length is revealed.
3.8.11 Geometric improvements
It is anticipated that there may be a need to make geometric improvements, although these are relatively minor improvements, including parabolic turning radii on some corners and islands, in roughly 32 locations. The need to widen or adjust junctions will be determined when the traffic signal and bus priority systems are examined. It is not envisaged that there is a requirement to improve many junctions and this will only be considered where it will make a significant improvement to the operation of the bus system or improve general traffic flow. Resources are being provided under the project to cover these unforeseen requirements. These improvements will be implemented within the existing ROW but where conditions warrant and where space is available additional ROW will be considered. The above estimates were itemised by a transport engineer in the PPTA team to give an indication to the size of the consulting team and budget required during the implementation phase of the project. The exact locations of these supporting infrastructure has not been identified, although in some cases problem areas have been identified as needing improvements (see Background Review and Proposed Public Transport Modernization Plan).
3.9 Personnel Requirements
The management of the bus system will require the development of staffing capacity within the Davao City Government and the bus operator. This will require skilled contract management staff, bus and traffic planners and engineers, and bus operations staff. The employment numbers required by the bus system is determined by the number of buses, levelling of ticketing enforcement and traffic management, and other functions such as administration and marketing. It includes bus drivers, mechanics, body builders, bus washers and cleaners, refuellers, administration, management and security, transport planners, roving ticket inspectors, traffic enforcers, ticketing and bus tracking system support staff, and additional allowance for staffing.
3.10 Franchising and Managing DavaoBus
The PPTA team assessed the most suitable method for implementing the DavaoBus system based on Philippine national laws and project requirements, by providing options and evaluating these based on established criteria. The recommended option envisages that DavaoBus will be managed by a Public Transport Management Unit, headed by a Public Transport Manager, within the City Enterprises Office of the Davao City Government. The Public Transport Manager manages the bus operations in accordance with the contract that each bus operator enters into with the Davao City Government. One important task of the Public Transport Manager is the monitoring of bus operation to ensure adherence with performance standards and to record the extent of service, in vehicle-km, rendered by each operator. Each bus operator will be paid by the Davao City Government Finance Department based on the recommendation of the Public Transport Manager. The main funding source is the amount generated through the collection of fares via an Automatic Fare Collection System (AFCS) and deposited into a chosen branch of the Land Bank. The accounts will be properly audited by independent auditors. A Bus Management Team, comprising of a consulting firm contracted by the Davao City Government, will provide technical assistance to the Public Transport Management Unit. The selection and franchising of bus operators will be a competitive tender process undertaken by the Davao City Government. Selected bus operators must then apply for a franchise from the LTFRB. Davao City Government will enter into a management contract with each of the selected public transport operators able to obtain a franchise. An important contractual provision will cover operating standards, such as service schedules and maintenance standards of
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vehicles. A system of penalties may be incorporated in the contract to ensure that operators adhere to performance specifications.
3.11 Transitional Considerations
The PPTA team have outlined a number of transitional considerations that need to be taken into account when implementing the project design. These include technology implementation, driver training program (including the establishment of a bus driving training and testing center and training vehicles), driver accreditation, operational set-up for infrastructure construction and traffic management phases, and staging of the bus system. This discussion is detailed in the Background Review and Proposed Public Transport Modernization Plan.
3.12 Project Implementation Organizations: Roles and Responsibilities
There are a number of implementation partners for the proposed project. Table 3-8 describes these organizations and their roles and responsibilities, although this is still being discussed between DOTr and ADB. Figure 3-2 provides the initial proposed implementation structure. The implementation plan is also still being discussed between DOTr and ADB at the time of writing, and as a result has not been included in this report.
Table 3-8: Organizations and Roles
Project Implementation Organizations Management Roles and Responsibilities Borrower Department of Finance National and Regional Development Plan and Program National Economic Development Coordinator Authority (NEDA) Public Investment Evaluator and Programmer Program and Project Monitor (by conducting program/project evaluation and on-site reviews and consultations) Executing agency Department of Transportation Approve procurement plans, procurement actions such as bid (DOTr) evaluation and contract awards. Approve working drawings, design documents, engineering designs and cost estimates. Carry out consultant selections for detailed design and construction supervision consultants. Procure civil works contracts. Obtain necessary environmental approval(s) from DENR and other relevant agencies/organizations prior to award of civil works contracts. Secure technical and safeguard approvals for all civil works prior to contract award. Project implementing office Project Management Office PMO) - Ensure that Project implementation complies with DOTr Government environmental policies and regulations, ADB safeguard policy and provisions of the EMP included in the IEEs cleared by ADB. Ensure that Project implementation complies with Government social policies and regulations, ADB safeguard policy and provisions of the RIPF and RP cleared by ADB. Plan, implement and monitor all land acquisition and other resettlement related activities. Ensure that environmental protection and mitigation measures in the EMP and provisions of the RIPF and RP are incorporated in the detailed design, additional safeguard documents are prepared (as needed) and included in bid documents, implemented and monitored. Submit disbursement projections, request budgetary allocations for counterpart funds. Ensure implementation of the Gender Action Plan (GAP)
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Project Implementation Organizations Management Roles and Responsibilities Ensure compliance with Government policies and loan covenants Implement social development plan (SDP). Implement the grievance redress mechanism. Provide support for land acquisition and resettlement (LAR) Davao City Government activities and income restoration measures. Provide support for the social development plan (SDP) Provide support for the grievance redress mechanism. Provides financing ADB Project preparation Implementation monitoring ADB = Asian Development Bank. Sources: Government, ADB
Figure 3-2: Project Implementation Structure
3.13 Costs and Financing
The project is estimated to cost $253.93 million. Detailed cost estimates by expenditure category and by financier are included in the Project Administration Manual (PAM).5 The government has requested a regular loan of million from ADB’s ordinary capital resources to help finance the project. The loan will have an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility; a commitment charge of 0.15% per year (the interest and other charges during implementation to be capitalized in the loan); and such other terms and conditions set forth in the draft loan agreement.
The summary financing plan is in Table 3-9. ADB will finance the expenditures in relation to civil works, project implementation consultants, and capacity development.
5 Project Administration Manual (accessible from the list of linked documents in Appendix 2).
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Table 3-9: Summary Financing Plan
Amount Share of Total Source ($ million) (%)
Asian Development Bank
Ordinary capital resources 106.63 43.64
Government 136.58 56.16
Total 243.21 100.00
Source: Asian Development Bank
3.13.1 Cost Estimates Preparation
The costs include the preliminary cost estimates for civil works, ITS, depots and terminals, stakeholder engagement and communications plan, resettlement/land acquisition cost, institutional strengthening and capacity development, training, consulting services, social development program and physical and price contingencies. Table 3-10 provides a detailed cost estimate by expenditure category. Further details can be found in the Economic and Financial Assessment, Project Financing Arrangements and Procurement Plan.
Table 3-10: Cost Estimates by Expenditure Category
Foreign Local Total % of Total Item Currency Currency Cost Base Cost ($ million) A. Investment Costs 1. Civil Works 23.90 15.93 39.84 18.3% 2. Intelligent Transport System (ITS) 12.32 0.00 12.32 5.7% 3. Depots and Terminals 36.88 24.59 61.46 28.3% 4. Stakeholder Engagement and Communications Plan 0.00 4.69 4.69 2.2% 5. Resettlement/ Land Acquisition Cost 0.00 19.94 19.94 9.2% 6. Institutional Strengthening and Capacity Development 0.00 0.44 0.44 0.2% 7. Training 1.97 1.97 3.93 1.8% 8. Consulting Services 8.70 21.87 30.58 14.1% 9. Social Development Program 0.00 43.94 43.94 20.2% Subtotal (A) 83.77 133.37 217.14 100.0%
B. Contingencies 1. Physical 2.51 4.00 6.51 3.0% 2. Price 3.13 9.74 12.87 5.9% Subtotal (B) 5.65 13.74 19.39 8.9%
C. Financial Charges During Implementation 1. Interest During Construction 6.22 0.00 6.22 2.9% 2. Commitment Charges 0.46 0.00 0.46 0.2%
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Foreign Local Total % of Total Item Currency Currency Cost Base Cost Subtotal (C) 6.69 0.00 6.69 3.1%
Total Project Cost (A+B+C) 96.10 147.11 243.21 112.0% a Includes taxes and duties of $24.64 million to be financed by the government. b In mid-2017 prices. c Includes cost of audit for the duration of the project. d Physical contingencies computed as a percentage, 10% of base cost. Price contingencies computed based on ADB forecast international and domestic inflation rates applied to foreign exchange and local currency costs. e The Loan will have a 30-year term including a grace period of 7 years, followed by straight-line principal repayment, an annual interest rate determined in accordance with ADB’s London Interbank rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year, and a maturity premium of 0.20% and such other terms and conditions set forth in the loan agreement. The interest charges will be capitalized. Sources: PPTA consultants
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4. Approach and Methodology
The Davao Public Transport Modernization Project involved developing the concept design and operational model for the HPBS, determining the infrastructure and procurement requirements and undertaking the due diligence requirements for an ADB loan.
4.1 Concept Design
The proposed design and detailed assessment of requirements for modernising public transport in Davao was included in the Background Review and Proposed Public Transport Modernization Plan. It was based on interrelated factors comprising network design considerations, network design objectives, and HPBS features. The plan provides the technical basis of the project by providing a review of the existing public transport system gathered through secondary data, mapping, and ‘ground-truthing’ at site. In preparing the plan, the PPTA team examined the need for supporting systems, such as technologies required to manage and operate a modern bus system and considerations for potential fare systems.
4.1.1 Network design considerations
The concept design of the new bus system took into account the requirements of both specific customers and the ability of the system to support travel. The considerations included:
Customer focus. A customer-focused system uses modern transport planning principles to identify where customers want to travel to and from, and the time of day of their journey. It involves designing a network that supports safe, reliable and comfortable travel in a high quality environment. Accessibility. Accessibility consists of access for people with mobility issues (elderly and persons with disabilities) as they will need to be provided facilities to enable them to load the bus and access the transport system. In addition, access to services (e.g. schools, hospitals, commercial centres) is facilitated by providing an integrated bus network and careful placement of bus stops that connects people to these services.
Sustainability. Sustainability comprises the environmental and financial components of the project. The environmental sustainability of the project was assessed through an environmental and social impact assessment, with the findings and mitigation and management plans reported in the Initial Environmental Examination (IEE). The financial sustainability of the proposed bus system was also assessed through an analysis of capital and operational costs.
Geography. The geography of Davao influenced the design of the proposed system as population settlements along some of the key geographical features of Davao result in dense population away from the core network.
Population density. Population density has a strong influence on network design as a well-designed bus service involves a network with a high passenger turnover and connects people to local destinations rather than remote destinations.
4.1.2 Network design objectives
The network design objectives of the system were organised by prioritising customer focus, rather than just covering the most common trips and popular routes. The key network design objectives are to: Maximise service coverage- provides close access to homes of passengers through the use of a connected network that minimises convolution and distortion of routes.
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Maximise connectivity- provide connectivity at many points to create a web of services that can connect customers between a multitude of destinations without having to travel through a central hub. Provide system simplicity- having a small number of routes with various frequencies and geographic and hierarchy numbering. Improve travel times- by combining infrastructure (e.g. traffic signals, traffic bus lanes) and service design (e.g. consolidation of bus stops, route hierarchy with different stop spacings).
4.1.3 High priority bus system features
The HPBS was determined to be the most suitable mode of transport for Davao City according to previous studies. It is a form of BRT system that provides many of the benefits of a dedicated ROW without the significant cost associated with the infrastructure of a full BRT. Features of the HPBS include customer focus, improved travel times, an integrated network, priority infrastructure, vehicles and a ticketing system. Vehicle type, vehicle capacity and fuel types have been considered in the design of the proposed bus system.
Fleet specification
The type and composition of the fleet and the number of vehicles required for each bus route considered parameters such as the volume of passengers to be carried and the nature and condition of the road network. Once the types of available vehicles were assessed, complementary parameters relating to the vehicle type and utilisation were also examined and, in certain cases, prioritised.
Supporting systems
To support the implementation of the system, an integrated land use transport plan (traffic and transport master plan) was developed for Davao to examine the existing situation within Davao City and relate where people live and work and how it supports the economy of the city. Guidance for transport modes within the City was based on a review of the national, regional, and local policy framework. In addition, the plan also involved stakeholder and community engagement to understand the drivers of development, travel demand, and attitudes towards the various modes of transportation, freight and parking. Research regarding different fare systems, technologies, bus priority systems and system support infrastructure was also conducted.
Route rationalisation
An origin/destination (O/D) matrix based on household interview surveys served as the basis for determining the public and private demands for the bus network. The number of buses required to supply trips on each link within the transport system, subsequently, was based on an Emme model developed to assign possible patrons to the bus network. The bus network assignment was based on a least cost/time basis, with no interchange penalties and ignoring service frequency or access. The proposed route travel times were developed using car travel speeds by time of day from Google Traffic Data.
Route infrastructure
To support efficient bus operations, provision of bus land, construction of bus stops, use of supporting pedestrian facilities, provision of additional integrated traffic signals, improved traffic management measures, and widespread use of information systems were incorporated under the project scope. Field inspection and review of data from the CTTMO provided considerable evidence of issues faced and the status of infrastructure in relation to the said considerations.
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Franchising and management plan
The Franchising and Management Plan of the Davao Public Transport System involved a review of the Philippine Franchising System, a formulation and evaluation of franchising options, and the preparation of an implementation plan. Evaluation criteria for the different franchising options include consistency with the existing legal framework, ability to specify service standards, method of payment of contractors, feasibility of implementing an area-wide AFCS, and ability to handle subsidy. Considering that the proposed system would deviate from LTFRB’s Omnibus Franchising Guidelines, the preparation of the implementation plan entailed identifying courses of action to put the project’s legal framework in place.
System costs
Unit costs used in road infrastructure (i.e. bus stops, bus fleets, and various ITS systems) were based on detailed estimates of items from a typical scaled drawing, prices stated by various government agencies (e.g. DPWH, Metropolitan Manila Development Authority (MMDA)), other various infrastructure projects, and references from outside the Philippines for special items.
4.2 Financial
The Economic and Financial Assessments, Project Financing Arrangements, and Procurement Plan presents and details the financial aspects of the proposed Davao Public Transport Modernization Project. Analysis on the economic and financial feasibility of the project included a financial management assessment (FMA) of the key agencies involved in the execution and implementation of the project. In addition, the tentative packaging of contracts was used as a basis to create a procurement plan for the different works during the project proper.
4.2.1 Economic analysis
The economic analysis was conducted in accordance with ADB’s Guidelines for the Economic Analysis of Projects and considers “with project” and “without project” scenarios over a 25-year period. These scenarios were based on estimated capital costs from concept designs prepared from the transport plan. These capital costs, inclusive of physical contingencies in constant 2018 prices, were converted into economic costs by subtracting all transfer payments (including taxes and duties) and applying the appropriate conversion factors. Demand forecasts were used in the economic analysis to quantify the estimated annual economic benefits from the project such as vehicle operating cost savings, travel time savings and reduction in greenhouse gas emissions.
4.2.2 Financial analysis
The financial due diligence was undertaken in accordance with ADB’s Guidelines on Financial Management and Analysis of Projects and considers two scenarios for the Davao Public Transport Modernization Project:
Scenario 1: All components. The first scenario considers all components of the project financed by the government and the private sector. Components to be financed by the government include civil works, the ITS, depots and terminals, the stakeholder engagement and communications plan, resettlement/land acquisition, institutional strengthening and capacity development, training, consulting services, and the social development program. On the other hand, the bus fleet renewal will be financed by the private sector. Scenario 2: Bus fleet renewal component only. The second scenario considers that the bus fleet renewal for all DavaoBus routes will be owned and operated by the
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private sector. This scenario looks at the profitability of the bus system operations from the point of view of the bus operators. The various components of the project were identified through comprehensive research and extensive discussions with proponents, stakeholders and other parties that may be involved directly or indirectly in the project preparation. The financial internal rate of return (FIRR) was calculated and compared with the weighted average cost of capital (WACC).
4.2.3 Financial management assessment
The FMA was prepared in accordance with ADB’s Financial Management Technical Guidance Note: Financial Management Assessment May 2015 (the Note). The FMA covers the DOTr as the executing agency of the project and the Davao City LGU as the implementing agency.
The FMA of the DOTr was undertaken on March 2017 under the Infrastructure Preparation and Innovation Facility (RRP PHI: 50288). Although the role of Davao City in terms of funds flow is limited to the Social Development Program SDP component of the project, an FMA was also prepared for the Davao City LGU as the implementing agency of the project. Preparation activities for the FMA of the DOTr and Davao City LGU included: (a) interviews with staff; (b) providing the FMA Questionnaire and getting their response; (c) review of other related project documentation; and (d) review of ADB’s ongoing experience with government agencies.
4.2.4 Procurement plan
The preliminary Procurement Plan was based on the tentative packaging of contracts for the various components of the project and identification of necessary consultancy services. It was established from a review of the scope of works and relevant ADB guidelines by concerned experts of various disciplines.
The Procurement Plan was prepared with mode of procurement for International Competitive Bidding (ICB) and National Competitive Bidding (NCB) in accordance with the local laws and ADB’s Procurement Guidelines (April 2015, as amended from time to time). The tentative contract packages were designed to attract both international and national contractors, with each contract nominated based on mostly the scope of works and estimated cost allocation. Selection guidelines and terms of reference (TOR) for the following consultancy services were also prepared: (1) project management, (2) social development, (3) design and supervision (civil works/ traffic signal), and (4) franchising, bus contracting, and management.
4.3 Environmental
The Environmental Assessment and Review Framework (EARF) was prepared to guide the screening, initial impact assessment, required institutional arrangements, and categorisation of the project. It was prepared based on ADB’s Safeguard Policy Statement (SPS) OF 2009, and the Philippine Government’s Environmental Impact Statement Law (PD 1586) and its implementing rules and regulations (DAO 2003-30). Details and requirements on the various steps to be undertaken during the project impact assessment were determined by recognizing and categorizing the different subproject components and its anticipated environmental impacts. Steps undertaken and the responsibilities of parties involved in addressing the concerns and grievances of affected persons and the implementation of the project were established in the EARF.
It was determined that the various subprojects of the Davao Transport Project requires an IEE to describe the potential impacts, formulate mitigation measures, prepare institutional requirements, and develop an Environmental Monitoring Plan (EMP) for the project. The IEE involved the conduct of baseline studies and a series of public consultations to evaluate existing site conditions, assess impacts, and identify mitigation measures. Environmental components
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likely to be affected by different phases or environmental aspects of the project were assigned respective management and monitoring plans. In addition, the IEE also reviewed the national and local legal and institutional framework within which the environmental assessment was carried out, and identifies project-relevant international environmental agreements to which the country is a party of. A CRVA was also prepared to identify the potential impacts of climate change on the proposed project, recommend mitigation measures, monitoring activities, and reporting requirements to ensure that potential impacts are addressed. The CRVA involves a review of secondary data from Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) and Comprehensive Land Use Plans (CLUP) on the meteorology and climate, topography, existing land use and natural drainage system of the project area. A risk assessment of the various effects of climate change on the project area was computed using the United Nations Development Programme (UNDP) risk assessment framework and compared to a composite risk map developed by Manila Observatory and Department of Environment and Natural Resources (DENR). A climate risk assessment and management response matrix was prepared for the climate risks identified as threats to the health and safety of the community and the environment.
4.4 Social
4.4.1 Resettlement and Indigenous Peoples
The Resettlement and Indigenous Peoples Framework (RIPF), Resettlement Action Plan and Due Diligence Report were prepared to address physical and economic displacement from land acquisitions and civil works relating to the project. The RIPF provides the policy framework that covers both involuntary resettlement and indigenous peoples under the ADB SPS and relevant Philippine laws and procedures. Principles established in the RIPF will guide the preparation of social safeguards and planning documents that will be updated, prepared and implemented during the project. The RIPF was developed through a review of relevant Philippine laws, city regulations, and ADB Policies on the resettlement and indigenous peoples. A review on secondary data regarding the composition of Indigenous People (IPs) in the affected areas was also conducted. The obligations of the executing (DOTr) and implementing agency (Davao LGU) are also detailed in the document. A Resettlement Action Plan was also prepared that focused on the land-related impacts resulting on civil works and facilities. A Due Diligence Report outlined the options for land acquisition for the facilities. All of the land acquisition, resettlement and IP safeguard documents were prepared based on extensive consultation with key stakeholders and representatives of project affected persons. Both primary and secondary data also informed the development of the documents.
A draft for the application on certificate precondition with the National Commission on Indigenous Peoples was also prepared as one of the requirements stated by the RIPF as mandated under the Indigenous Peoples Rights Act (IPRA) and ADB SPS. The report was developed based on the identification of impacts and concerns raised by indigenous peoples and affected communities through a consultation workshop. Specific components of the project that will have an impact on ancestral domain areas were also identified and given suggestions for proper mitigating measures. The report aims to aid the National Commission on Indigenous Peoples (NCIP) in the evaluation for the issuance of the certificate precondition.
4.4.2 Women and vulnerable groups
The Gender Action Plan (GAP), which contains information about the implications of the project to women and vulnerable groups, was developed through a mixed methods approach, which
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combines quantitative and qualitative methodologies. The GAP was developed closely through desk review of related literature such as: Reports of previous ADB transport TAs in Davao City and GAPs in similar ADB projects
News articles and other written documents on the peace and order situation and the state of affairs of the women sector and vulnerable groups in Davao City Relevant national laws, department orders, and city ordinances on gender and development
Passenger charters of bus companies in Singapore and Dublin, Ireland Secondary data gathering was done with the regional office of the Cooperative Development Authority (CDA) on the gender composition of membership in PUJ transport cooperatives, including the gender profile of cooperative representatives. Primary data gathering was done with Davao City government offices such as the Integrated Gender and Development Division (IGDD), the CTTMO and the City Enterprise Office. The exercise gathered data on gender composition of the staff, including temporary or casuals, internal and external (client relations), gender policies, gender budgets and programs, especially in relation to public transport. The databases obtained by the PPTA team include the 2017 database of LTFRB operators and the Department of Social Welfare and Development’s (DSWD) results from their household targeting survey. Gender-related data from these sources were processed and analysed. The GAP also made use of the Stated Preference Survey (SPS) conducted by the transport team for data on willingness and ability to pay of male versus female commuters for savings in travel time and other improvements, which are anticipated to result from the HPBS.
In addition, three consultations attended by various groups were also facilitated by the PPTA team on women’s and related issues:
1. Special needs: Vulnerable groups such as the elderly, indigenous peoples, religious groups, youth, and differently-abled people.
2. Gender in transport: Spouses or partners of public transport operators, public market vendors, young women professions, city councillor on women, Muslim women, collegiate students, young workers, and differently abled women. A separate focus group discussions (FGD) was conducted with the spouses and female PUJ transport operators. 3. Validation: IGDD office of the Davao City Government for validation on the outputs of the workshops.
Key informant interviews were also conducted with the CDA on gender provisions and was attended by a city councillor on consumer groups in Davao, and female members and workers of farmer cooperatives on transport issues in the agricultural third district of Davao City.
4.4.3 Social Development Program
The SDP was developed especially for the PUJ sector (operators, drivers, and auxiliary workers), as this sector will be directly affected by adverse impacts of the project such as loss of livelihood and income due to the phasing out of jeepneys in intra-city Davao routes. In a similar manner as the GAP, it combines both quantitative and qualitative methodologies through a mixed methods approach. Instead of women and vulnerable groups, however, literature reviews and consultations were conducted for PUJ-related groups such as PUJ cooperative officials, operators and drivers. Focus group discussions were administered specifically for jeepney
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drivers-operators. Key informant interviews with relevant city and national government officials who are potential providers of services (e.g. technical education, micro-insurance, emergency employment) were also conducted. Surveys regarding socio-economic awareness, knowledge, and attitudes were also administered to around a thousand PUJ drivers attending the CTTMO orientation for PUV drivers.
4.4.4 Stakeholder Engagement and Communication Plan
The Stakeholder Engagement and Communication Plan is a strategy that cuts across the different components of the project, especially in programs that involve key people such as the social development people. The development of the document utilized resources from the previous studies on sustainable urban transport in Davao. Previously established contacts and engagements with the City Government offices and other stakeholders (i.e. women groups and public transport providers) served as the foundation on which activities conducted under the project was built. The City Government of Davao, through the Office of the City Administrator, Project Technical Working Group, and City Information Office, provided key input and content leadership in the development of the Stakeholder Engagement and Communication Plan. The document was subject to periodic adjustment and fine-tuning to respond to new information arising from project activities and directions from the project-governing bodies.
4.5 Franchising
The Franchising and Management Plan of the Davao Public Transport System involved a review of the Philippine Franchising System, a formulation and evaluation of franchising options, and the preparation of an implementation plan. Review of Philippine Franchising System and previous studies– The Philippine Franchising System, basically based on the Public Service Act passed in 1936, was reviewed. Recommended franchising reforms of previous studies, particularly past ADB-funded studies, were likewise reviewed to benchmark feasible franchising reforms.
Formulation of options for franchising and management – Five options had been generated based on the combination of public transport network coverage and three types of franchising options. The options were: 1. Davao City as operator through service contracts for all public transport network tiers. 2. Davao City as operator through service contracts for Tier 1 and existing franchising system for all other tiers. 3. Existing franchising system for all tiers. 4. Davao City as manager with operators securing franchises from LTFRB for all tiers. 5. Davao City as operator for Tier 1 and as manager for all other tiers. Evaluation of options– Each of the five options had been evaluated based on established criteria leading to the selection of the preferred option. Evaluation criteria included consistency with the existing legal framework; ability to specify service standards; method of payment of contractors; feasibility of implementing an area-wide AFCS; and ability to handle subsidy. Option 4 was chosen as the preferred option.
Preparation of implementation plan– The preparation of the implementation plan entailed identifying courses of action to put its legal framework in place considering that the proposed system would depart from a number of provisions of the Omnibus Franchising Guidelines pursuant to DOTr DO No. 2017-011. An organization set-up
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for the Davao City Government had been recommended to handle effectively the preferred public transport franchising and management system.
4.6 Capacity Assessment
The ability of local institutions to have the knowledge and tools to assess transport issues and make correct decisions is essential for the proposed project to be successful. Since the City of Davao has not had the responsibility for managing its public transport system, the proposed project will necessitate new skills and knowledge in these areas. As such, a capacity assessment of the implementing agency and the development of a capacity development program is an integral component in the management of the proposed project. The methodology in developing the Capacity Assessment Paper was as follows: Identification of scope of capacity development – The technical areas wherein capacity development could be required were determined. Primary areas of focus were transport and traffic planning, traffic signal systems, and franchising and bus management. Institutional capacity assessment – This entailed capacity assessment of the CTTMO, the key player of the proposed reforms and its staffing and logistical support. A training needs assessment survey on the competency of technical staff was carried both in 2015 and 2017, the latter being designed to update the earlier survey.
Formulation of program – This followed the institutional assessment. The formulated program consists of staff recruitment, formal training, on-the-Job training, and procurement of tools and equipment.
Preparation of Implementation Plan – This step entailed identification of a suitable training organization, and preparation of cost estimates and implementation schedules6 of capacity development components. The implementation plan is still being discussed between DOTr and ADB.
6 The project scope, implementation phasing, schedule are still being discussed and will be further reviewed and revised.
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5. Deliverables
5.1 Inception Report
The Inception Report gives a brief documentation on the background of the study by presenting a summary of the start-up activities and review of past studies and technical assistance grants in relation to the proposed project. In addition, it also presents the implementation of the project by detailing the project deliverables, work plan, and staffing schedule. Start-up activities included the mobilisation of consultants, initial meetings and an inception workshop conducted from December 2016 to February 2017. Among the main outcomes of the start-up activities included the consensual support for the proposed project, establishment of Steering and Technical Committees, designation and set-up of a project office, and participation of key stakeholders from both public and private organizations. The Inception Report confirmed the approach and methodology to be undertaken for the PPTA, and feedback was sought on this approach from key stakeholders at the Inception Workshop.
5.2 Background Review and Proposed Public Transport Modernization Plan
The Background Review and Proposed Public Transport Modernization Plan presents information on the current state of public transport services in Davao and details the specifics of the modernization plan. It exhibits the different modes of transportation available in the city, estimates public transport capacity and demand, describes the core road network of Davao, presents issues on traffic and pedestrian management, and analyses existing travel demand. The modernization plan provides a description of the approach used to underpin the design of the bus network. It also details the proposed bus hierarchy required to service passenger movement, the parameters used to identify the type and number of buses required to meet passenger transport demand and other aspects. There are also chapters examining the need for supporting systems such as technologies required to manage and operate a modern bus system, considerations for potential fare systems, and supporting systems relating to both infrastructure and management. Identified routes, subsequent infrastructure requirements, franchising and management plans, and overall system costs were summarised in the plan.
5.3 Economic and Financial Assessments, Project Financing Arrangements, and Procurement Plan
This report discusses the macroeconomic and sectoral context, project option analysis, economic analysis, financial analysis, financial management assessment, project-financing arrangements and the procurement plan of the project.
The financial and economic analysis situates the proposed public transport system for Davao in a macroeconomic and sectoral context. It presents the viability of the project in light of different scenarios such as financing by the government and/or the private sector and computes fare prices that would make the project feasible and economically viable. Project financing arrangements per expenditure category, financier, outputs, and year were also included in the report. The financial management assessment, on the other hand, determines the financial management capacity and project management experience of the City Government of Davao. Interventions required to strengthen its capacity to implement the project in accordance with ADB policies and procedures were also recommended in the report. The Procurement Plan indicates the methods, thresholds, review procedures of goods, and tentative contract packages for contractors and consulting services. National competitive
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bidding guidelines, an outline for the TOR with consulting firms, an indicative list of packages to be financed by ADB, and the proposed packages to be implemented under non-ADB financing are also included in the document which should be updated every 18 months or when changes need to be reflected.
5.4 Risk Assessment and Risk Management Plan
The Risk Assessment and Risk Management Plan provides an impact rating and mitigation measures on risks that could possibly be brought about by government inputs, public financial management, procurement, corruption, project implementation and sustainability. Among the risks considered to have a high impact rating include limited management personnel with procurement and financial management experience and knowledge of ADB guidelines, limited procurement capacity, unfamiliarity of the private sector with the concept of contracting public transport service, and objections from existing public transport operators.
5.5 Environmental Assessment Review Framework
The EARF for the project is developed to ensure that selected subprojects to be financed under the proposed project are designed to avoid or minimise negative environmental and social effects, and identify any negative impacts, and develop and implement appropriate mitigation measures as part of the subproject design and implementation. It was prepared to guide the screening, initial impact assessment, required institutional arrangements and project categorisation. The document details the Environmental Impact Assessment (EIA) requirements for subprojects, which include passenger and road-related civil works, and the construction of bus depots, terminals, and training facilities. These projects were categorised to be either Category B or Category D according to the Philippine Environmental Impact Statement System (PEISS) project classifications and will require an ADB rapid environmental assessment (REA) for all subprojects prior to the development of an IEE if required.
5.6 Initial Environmental Examination
The IEE reviews policy framework, describes the baseline environment, identifies anticipated environmental impacts, lists potential mitigation measure and project alternatives, and provides an Environmental and Social Management Monitoring Plan (ESMP). The report includes a detailed assessment of the different project phases and identifies entities responsible for implementing the management and monitoring plans.
5.7 Climate Risk and Vulnerability Assessment
The CRVA reviews the international and national climate change modelling and emission scenarios, assesses the existing environment and historical trends in climate conditions in the project area; identifies potential impacts of climate change on the proposed project, and recommends mitigation measures, monitoring activities, and reporting requirements to ensure that potential impacts are addressed. A climate risk assessment and management response matrix details the different hazards and threats to the construction and operational phases of the project induced by changes in climate such as increase of temperature, increase and decrease of seasonal precipitation, sea level rise, and strong winds. Some of the proposed mitigation measures include upgrading road design to accommodate traffic, using concrete pavement, designing drainage systems, implementing an erosion sediment control, designing structures according to the National Building Code of the Philippines, conducting regular road maintenance, and maintaining tree buffer zones.
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5.8 Resettlement and Indigenous Peoples Framework
The RIPF has been prepared to guide the overall preparation of all future social safeguards and documents for involuntary resettlement and indigenous peoples under the ADB SPS and relevant Philippine laws and procedures. Although the project will utilize existing roads, there will be minor civil works that will require land acquisition for supporting facilities, which may trigger physical and economic displacement where indigenous peoples may abound. The RIPF includes a policy framework, details on the social safeguards principles for the project, and guidelines in screening for and minimising adverse impacts. Guidelines on conducting the social assessment for both resettlement and indigenous peoples planning are also included in the report.
5.9 Resettlement and Indigenous Peoples Plan
This RIPP combines the Resettlement and Indigenous Peoples issues and is developed based on the Government's policies and ADB’s SPS allowing for Involuntary Resettlement and Indigenous Peoples issues to be addressed in a single document. It describes the anticipated social impacts of the project, the socio-economic profile of the affected areas, consultations completed to prepare the plan, a grievance redress mechanism, legal and policy framework, compensation, assistance and entitlements, budget, institutional arrangements, and monitoring and evaluation arrangements.
5.10 Due Diligence Report for Facilites
A Due Diligence Report was prepared to assess the potential impacts of land acquisition for the construction of permanent facilities for the project, specifically depots, terminals and a drivers’ training centre. The report describes the facilities and land acquisition requirements, and initial research on potential locations that could be considered, and their social and environmental impacts.
5.11 Application for Certificate Precondition with National Commission on Indigenous Peoples Draft
One of the key principal requirements for project locations within ancestral domains is the consent of affected IP communities through the Certificate of Precondition (CP) or Free Prior Informed Consent (FPIC). This application provides information aiding the evaluation of the NCIP on the application for Certificate Precondition by detailing the advantageous and disadvantageous impacts of the project on IP communities. Among the identified impacts on IP communities include changes in existing land use, restriction in the amount of goods that can be carried in the new bus system, discrimination of public transportation services, replacement of existing jeepney services, faster travel times, and the requirement of assistance to support the introduction of the electronic fare system.
5.12 Gender Action Plan
The GAP is a requirement for loan processing and approval by the ADB. The report consists of two parts: (1) a summary of the gender analysis conducted during this study and technical assistance grants, and (b) the GAP, which addresses the findings of the gender analysis. The summary of the gender analysis includes a review of secondary literature, related laws and city ordinances, and workshop results. Findings show that the negative impacts of the project will be largely felt by families dependent on the income earned from PUJs, while positive impacts of the project will be felt largely by different groups of commuters who will benefit from the proposed bus scheme. The GAP, which aims to mitigate the negative gender impacts and enhance the
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benefits of the project, includes actions towards the concerns of women and other vulnerable groups throughout the course of the project.
5.13 Social Development Program
The report on the SDP presents a background on the perceived social impacts of the project by profiling the sector largely affected by the negative impacts of the project (i.e. PUJ sector), and studying relevant government policies. More importantly, it aims to propose a plan that seeks to (a) develop and present options for transport providers willing and able to participate in the DavaoBus project, and (b) facilitate exit from the PUJ industry by mitigating the negative impacts of such exit on the livelihoods and income of those displaced. The SDP has seven primary components, which include strategies on program implementation and management, compensation for direct income losses due to the project, transitional assistance (e.g. emergency livelihood), technical education and skills development, livelihood start-up and enterprise movement, social protection, and social preparation and life skills development. Program implementation and management is applicable to those participating in the DavaoBus project, whereas the remaining six components are relevant to those exiting the PUJ industry.
5.14 Stakeholder Engagement and Communications Plan
The Stakeholder Engagement Plan identifies stakeholders and their roles, details the engagement strategy, and designates who is responsible for managing the stakeholders. The Communications Plan, on the other hand, contains examples of concerns and initial responses from stakeholders during consultations, which may become the basis for core messages and campaign taglines that could be used. In addition, the document also includes the proposed mechanisms and budget for stakeholder engagement and the implementation of the communications plan. Public transport stakeholders were put into different categories and the communications plan targets these stakeholders, with the aim of generating support for public transport modernization in Davao as part of Byaheng Du30, and to harness support for the implementation of the DavaoBus system. In addition, the document also details audience- specific messages, means and timing, based on the behaviour desired of the target audience.
5.15 Capacity Assessment Paper
The Capacity Assessment Paper (CAP) aims to assess the technical skills and capacity of administration personnel to adequately manage transport problems. City Administration personnel, according to earlier research, had limited skills in the field of transport planning and traffic management. As such, the CAP develops a program that capacitates and equips core technical staff and various agencies through the conduct of a series of workshops at various stages of the project. The technical areas where capacity development is required include traffic and transport planning, traffic signal systems, and franchising and bus management. In addition, staff from the Davao City Government will also be required to undergo formal training in technical areas of the project.
5.16 Outreach Report
The Outreach Report documents the outreach activities conducted for the project. Outreach and stakeholder engagement activities during the technical assistance included project meetings, key informant interviews (KII), FGDs, public consultations, and workshops conducted with government agencies, the private sector, public utility jeepney industry, non-government organisations, various community organisations vulnerable groups, and other stakeholders. There were more than 95 stakeholder engagement activities carried out during the PPTA study.
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5.17 Project Administration Manual
The PAM describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and the ADB. The PAM includes references to all available templates and instructions through linkages to relevant URLs. The document details the implementation plans, project management arrangements, financing and procurement plan, and a summary of the other key documents discussed in the previous sections.
5.18 Implementation Schedule
The project scope, implementation phasing, schedule are still being discussed and will be further reviewed and revised.
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6. Conclusion
The key objective of this PPTA was to assist the government and ADB to prepare all necessary information and studies required for the proposed ADB loan for public transport modernization in Davao. The proposed project, as conceptually designed by the PPTA team based on the terms of reference, aims to provide the city with an attractive, efficient, and affordable public transport system that will support inclusive economic growth for the city’s inhabitants.
The scope of work of the included: (a) building on previous work undertaken in Davao on public transport reform, and (b) undertaking the necessary project development due diligence associated with ADB PPTA activities. This included all necessary due diligence requirements for the government and the ADB to properly assess the proposed loan, including technical, economic, financial, governance and safeguards evaluations, and provide documentation covering these aspects.
A series of reports, whose methodologies and summaries are presented in this document, were prepared specifically for this purpose. These reports include: Inception Report: summarizes start-up activities and reviews previous technical assistance grants. Background Review and Proposed Public Transport Modernization Plan: reviews current state of public transport services in Davao and details the specifics of the modernization plan. Economic and Financial Assessments, Project Financing Arrangements, and Procurement Plan: evaluates the financial viability of the project and presents tentative contract packages for contractors and consulting services. Risk Assessment and Risk Management Plan: provides impact rating and mitigation measures from the project in general. Environmental Assessment Review Framework: guides the screening, initial impact assessment, required institutional arrangements, and project categorization. Initial Environmental Examination: describes the baseline environment, identifies anticipated environmental impacts and mitigation measures. Climate Risk and Vulnerability Assessment: identifies potential impacts of climate change on the project and recommends mitigation measures. Resettlement and Indigenous Peoples Framework: guides future social safeguards and documents for involuntary resettlement and indigenous peoples. Resettlement Action Plan: plans to reduce and mitigate land acquisition and resettlement related impacts caused by the proposed project. Due Diligence Report on Facilities: provides an assessment of the impacts of acquiring land for the proposed project. Application for Certificate Precondition: details the advantages and disadvantages of the project on indigenous communities. Gender Action Plan: analyzes and presents mitigation measures for gender-related issues arising from the project. Social Development Program: analyzes and presents mitigation measures for the sector largely affected by the negative impacts of the project.
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Stakeholder Engagement and Communications Plan: identifies roles and responsibilities of stakeholders, presents concerns and initial responses from stakeholders during consultations. Capacity Assessment Paper: assesses the technical skills and capacity of administration personnel to manage transport problems. Outreach Paper: a record of the outreach activities conducted for the project.
Project Administration Manual: describes the essential administrative and management requirements.
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Appendices
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Appendix A – Terms of Reference for PPTA
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PPTA Consultants Terms of Reference
A. Project Background
1. The Government of the Philippines has requested assistance from the Asian Development Bank (ADB) to prepare a project for future potential lending that will deliver a modern public transport operating system for the City of Davao. The project aims to provide the city with an attractive, efficient, and affordable public transport system that will support inclusive economic growth for the city’s inhabitants.
2. Strong economic growth in Davao has resulted in rapidly growing demand for travel across the expanding urban area, which is primarily based on a low-rise, low-density urban model. Public transport services, which account for around 80% of trips, are failing to keep up with changes in travel demand both in geographical coverage area and operating hours. The government recognizes that upgrading and improving the operational efficiency of the urban transport system is an urgent priority if it is to realize sustained economic growth. A public transport system is required that serves the whole city, matches passenger demand to public transport service supply, and provide a suitable and reliable mode of transport for the city. A key to the project’s success is to establish a public transport system that is established to serve passengers, and ensures acceptable performance measures for operators. The proposed project must have full political support, follow legal requirements for public transport service operations and address any social aspects that might arise from the transition to a modern public transport operating system.
3. The government, through its National Environmentally Sustainable Transport Strategy (Presidential Administration Order No. 254, Urban Transport Program for Highly Urbanized Cities: Metro Manila, Cebu, and Davao) has sought to modernize urban transport. ADB has provided support to Davao under a policy advisory technical assistance (PATA 8195): Davao Sustainable Urban Transport Project. The TA laid the ground work for the creation of an enabling environment for a modern, efficient, and affordable public transport system in Davao, including plans and franchising mechanisms to improve the integration of the public transport system, widen the network coverage area, and deliver more efficient transport services.
4. The proposed ensuing loan will include three outputs: (i) public transport system improvement; (ii) institutional strengthening and social development program; and (iii) public transport fleet renewal. A core network along major arterial roads interconnecting with an extensive network of feeder services, or feeder routes covering the entire urbanized area. The lack of public transport infrastructure will be addressed through localized traffic management improvements to prioritize bus services along the core network of around 110 kilometers (km) and feeder routes covering an additional 400 route-km, together with associated passenger infrastructure and bus terminal facilities. Traffic management improvements should be kept, as much as possible, within the existing road network alignment right of way. Institutional strengthening to support the proposed new franchising mechanisms; as well as a social development program to support transport operators in the transition to a modern transport systems will be included in the ensuing loan. The Project also includes the development of suitable financing arrangements for fleet upgrades that will provide suitable vehicle stock to meet demand.
B. Objectives of the Assignment and Scope of Services
5. The key objective of the assignment is to assist the government and ADB in preparing all necessary information and studies required to support a proposed loan for public transport modernization in the city of Davao.
6. The scope of services will build on previous work undertaken in the city on public transport reform and undertake the necessary project development due diligence associated with ADB Project Preparation Technical Assistance (PPTA) work. The services to be undertaken during the PPTA, will include all necessary due diligence requirements for the government and ADB to assess the proposed ensuing loan. These include the need for: technical; economic and financial; governance; poverty and social; and safeguards evaluation and documentation. The assignment will assist ADB and the government in the preparation of all necessary loan documentation for the proposed transport modernization program in Davao City, following the latest requirements of ADB loan documents.
C. Outputs of the Assignment
7. The firm will report to the ADB project officer through the assignment team leader. The firm will prepare the following outputs under the assignment, details of the deliverables are provided in section E. The assignment team leader will have overall responsibility for all the outputs and deliverables and should work closely with other team members in the preparation of deliverables. The assignment deliverables include the following key areas: a) Project overview and details: background and sector assessment of public transport in Davao City, the project rational, and information on each of the three project outputs to a sufficient level of detail to provide the basis of discussion and agreement on the proposed loan and also to substantiate the required information in the proposed loan documentation. b) Economics and finance: economic and financial assessment of the project suitable for ADB evaluation criteria, financial assessment of the proposed loan implementation agencies, and project financing arrangements including financing and investment plans by output and financiers. c) Procurement and Implementation: draft bidding documents for public transport improvements, localized physical traffic management improvements, franchising mechanism and bidding procedures, social and capacity development training program and fleet renewal financial bidding documents. The deliverable should also include information on the proposed loan implementation arrangements, legal basis for franchising mechanisms, and details of the procurement plan. d) Social development: passenger engagement mechanisms and passenger charter, social development and livelihood restoration program for affected existing operators, communication plan for implementation and monitoring, gender action plan, and a summary poverty reduction and social strategy. e) Capacity development: training program and implementation arrangement for city officials in the planning, operation and monitoring of public transport operations. f) Safeguards: all necessary environmental (IEE and EMP), and resettlement (RP) documentation as required for project implementation. g) Risk assessment: an assessment of key project risks and associated mitigation measures.
D. Key expertise required
8. Proposing entities will determine the number and the nature of the experts they will require to achieve the objectives of the contract, in accordance with their proposed approach and methodology and to ensure the output deliverables are prepared to an agreeable standard. However, ADB requires a minimum of 4 key experts, listed below, where one of the international experts will be expected to act as the team leader and the national transport planner as the defined deputy team leader. Proposing entities shall clearly indicate in their technical proposal who will be their team leader.
a) Public transport specialist b) Financial expert c) Social development specialist d) Transport planner/deputy team leader
9. The public transport specialist (international1, minimum 8 person-months, intermittent) will be responsible for preparing the project information and in defining the details of the core and feeder service routes and services, together with the associated passenger infrastructure and terminal facilities to meet passenger demand. This work will also identify and prepare localized traffic management improvements along the core network. Phasing of implementation for the core network and feeder routes will be considered. The work will also include public transport network development and integrated ticketing system requirements. The work will also include the capacity development program for government officials, including phasing and implementation arrangements for the proposed loan. The specialists should work closely with both the financial and social key expert in the preparation of the social development program, franchising arrangements and fleet renewal program. All work will be carried out to a level that will allow ADB to prepare loan documentation and will include cost estimates, implementation arrangements, including bidding documents and engineering arrangements. The public transport specialist should have a minimum of 15 years relevant experience, preferably with 3-4 years’ experience in the Philippines working on donor financed projects.
10. The financial/franchising expert (international, minimum 4 person-months, intermittent) will define suitable franchising arrangements and discuss/agree these with government. The legal requirements of the franchising mechanisms and the relationship with the fleet renewal program for the core and feeder routes should be prepared by the expert and incorporated into suitable franchise bidding documents. The financial/franchising expert should have a minimum of 10 years relevant experience, preferably with 3 to 4 projects in the area of public transport modernizations and/or performance based franchising mechanisms development and implementation.
11. The social development expert (national, 9 person-months, intermittent) will be responsible for undertaking stakeholder meetings and consultations with the bus owners, operators and relevant transport associations. They will devise suitable livelihood programs for inclusion in the loan for any operators that are affected under the modernization program. They will also be responsible for the public aware campaign and passenger outreach consultations. They should develop a passenger charter and agree with government the role of passengers in the monitoring of performance based contracts under the new public transport franchise arrangements. They should also ensure that the passenger requirements are incorporated in to
1 International experts must have international experience on similar type of project but can be a national of the country, in this case Philippine nationals. the project design. The expert will be responsible for the communication plan, gender action plan and the summary poverty reduction and social strategy. The social development expert should have a minimum of 10 years relevant experience, preferably with experience working with civil society groups and organizations and have undertaken consultation exercises on donor financed projects. Expertise in the development of livelihood restoration programs would also be beneficial.
12. Transport planner/deputy team leader (national, 9 person-months) will assist in all aspects of the PPTA delivery and document preparation. They will act as the key liaison with government at the national and local level. They will also provide technical inputs on transport planning relating to the core and feeder route network definition and development, including minor engineering and traffic management improvements. They will work with other key experts and team members to ensure consistency of approach and integrated documentation for the ensuing loan discussions and agreements. The transport planner expert should have a minimum of 10 years relevant experience, preferably with experience working with donor organizations. Expertise in the development of public transport reform, or urban transport planning programs would also be beneficial.
E. Non-Key expertise
13. In addition to the above mandatory key experts, shortlisted firms are expected to provide non-key experts to ensure all aspects of the work can be undertaken and all deliverable sand reports prepared. Except for admin staff, the firm's Team Composition and Personnel Schedule shall reflect the names and inputs of the proposed non-key experts. CVs of those non-key experts must be submitted. The CVs of non-key experts will not be scored, but will be evaluated on a pass/fail basis, based on the merits of the CV against the proposed position/task assignment for each expert. The credentials of non-key experts as well as the design of the team as a whole (including the appropriateness of the level of inputs (Home, Field, Total) will be taken into account in the evaluation of Quality of Approach and Work Plan and Personnel Schedule criteria.
F. Key timeline/milestones for output deliverables and reporting requirements
14. As a performance (output) based TOR the outputs of the assignment are the reports and deliverables for the project. The consulting entity will produce the following deliverables and reports in English language:
Submission Report/Deliverable Frequency Hard Electronic Timing Recipient copies Submission Report/Deliverable Frequency Hard Electronic Timing Recipient copies 1. Inception report: Once 3 E-mail 4 weeks after DOTr, • Review of background commencement of Davao documentation services (start of City and • Review of Davao city January 2017) ADB urban transport system, policy, planning and operations • Initial assessment of project and key areas for agreement with government • Critical decisions required for project approval and timeframe for approval • PPTA implementation and staffing schedule 2. Project background and details Once 0 E-mail Within 4 months DOTr, of proposed loan outputs after the Davao • Project background and commencement of City and development, including the services (end ADB relevant government of March 2017) sector strategies • Davao City urban transport sector assessment including major issues, constraints, challenges, opportunities, reforms, strengths, and risks • Project rational • Technical details of the project outputs: (i) public transport improvements (ii) institutional strengthening and social development program (iii) public transport fleet renewal program • Proposed loan implementation arrangements 3. Economic and financial Once 0 E-mail Within 5 months DOTr, assessment: after the Davao • Macroeconomic and commencement of City and Sector Context the services (end ADB • Project option analysis of April 2017) • Economic cost-benefit analysis • Project financial analysis Submission Report/Deliverable Frequency Hard Electronic Timing Recipient copies • Financial management assessment of relevant government agencies 4. Project financing arrangements Once 0 E-mail Within 5 months DOTr, and procurement plan: after the Davao • Financing plan with cost commencement of City and estimates by output and the services (end ADB financier together with of April 2017) annual cost and financial requirements • Ensuing loan fund flows • Ensuing loan implementation arrangements and schedule • Procurement capacity assessment of relevant government agencies • Procurement plan and relevant terms of reference for project implementation • Draft bidding documents for public transport improvements, fleet renewal, localized physical traffic management improvements, and franchising mechanism 5. Risk assessment: Once 0 E-mail Within 6 months DOTr, • Summary of key risks and after the Davao mitigating measures commencement of City and the services (end ADB of May 2017) 6. Safeguard documentation Once 3 E-mail Within 6 months DOTr, • Environmental reports, after the Davao including IEE, EMP, etc commencement of City and • Resettlement documents the services (end ADB • Relevant project of May 2017) monitoring requirements 7. Capacity development and Once 0 E-mail Within 7 months DOTr, social program: after the Davao • Summary poverty commencement of City and reduction and social the services (end ADB strategy of June 2017) • Social development and livelihood restoration program • Passenger engagement mechanism and passenger charter Submission Report/Deliverable Frequency Hard Electronic Timing Recipient copies • Capacity development training program and implementation arrangements • Stakeholder communication strategy • Gender action plan • Relevant project monitoring requirements 8. Draft consultant’s report Once 0 E-mail Within 8 months DOTr, • Including all key aspects of after the Davao the project preparation commencement of City and activities as outlined above the services (end ADB in deliverables 2 to 7 of July 2017) • Documentation of meetings, workshops, discussions and agreements reached with government 9. Final consultant’s report Once 3 E-mail Within 9 months DOTr, • As above (deliverable 8, after the Davao with amendments to commencement of City and address comments the services (end ADB received on the draft of August 2017) report
G. Duration and location(s) of assignment
15. The project preparatory TA will be implemented over a period of nine months, between start of December 2016 and end of August 2017. The assignment will be undertaken in both field (Davao) and home office. Sufficient time inputs should be provided for in the field to allow the necessary level of interaction with both the City of Davao and the Department of Transportation and Communications.
16. The government will assign relevant counterpart staff to the project on a permanent or part-time basis, as required, as part of the formulation of the project management office for project preparation and implementation. Counterpart staff should include a project management unit (PMU) head, planning officer, finance officer, highway engineer, Land Transportation Office officer, and a Land Transportation Franchising and Regulatory Board officer.
17. ADB will select and engage the consulting firm in accordance with ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). ADB will use the quality- and cost-based selection (ratio 90:10 to emphasize quality and technical aspects rather than cost) with simplified technical proposal to select the consulting firm. The consulting firm will be responsible for the administration of workshop training, seminars and conferences, and any surveys under the project preparatory TA. Equipment and assets purchased under the work will adhere to ADB's Procurement Guidelines (2015, as amended from time to time), and TA Disbursement Handbook (May 2010) and upon completion of the project, the assets will be turned over to the implementing agency.
H. Assignment Payment schedule
18. The assignment will be paid on a pure lump sum payment basis. Payments will be made upon receipt and approval by the ADB assignment team leader of key deliverables as detailed in section E. Payment will be made as follows: a) Mobilization payment in December 2016, 10% of total lumpsum payment b) Inception report (report/deliverable No.1) in January 2017, 10% of total lumpsum payment c) Project background and details of proposed loan outputs (report/deliverable No. 2) in March 2017, 10% of total lumpsum payment d) Economic and financial assessment together with project financing arrangements (report/deliverable Nos. 3 and 4) in April 2017, 10% of total lumpsum payment. e) Risk assessment together with safeguard documentation (report/deliverable Nos. 5 and 6) in May 2017, 10% of total lumpsum payment f) Capacity development and social program (report/deliverable No. 7) in June 2017, 10% of total lumpsum payment g) Draft Final report (report/deliverable No. 8) in July 2017, 10% of total lumpsum payment h) Final report, (report/deliverable No. 9) in August 2017, 30% of total lumpsum payment
I. Preparation of the Proposal
19. Proposing entities are requested to prepare a detailed description of how they propose to deliver on the outputs of the contract in the section of their proposal called “Approach and Methodology”. In this narrative, entities should be explicit in explaining how they will achieve the outputs and defined deliverable, and include details of what staff and staff inputs will comprise the project team, including key and non-key experts. Entities must also describe their experience in the Philippines and in the implementation of public transport reform.
20. Only one curriculum vitae (CV) must be submitted for each key and non-key expert included in the proposal. Only the CVs of key experts will be scored as part of the technical evaluation of proposals. The CVs of non-key experts will be marked on a pass or fail basis by ADB. All positions under the contract, both key and non-key experts, must be included and budgeted for in the financial proposal.
Disclaimer
This Report has been prepared by GHD Pty Ltd for ADB and may only be used and relied on by ADB for the purpose agreed between GHD and ADB as set out in Contract Number 128987-S52907 between ADB and GHD Pty Ltd.
GHD Pty Ltd otherwise disclaims responsibility to any person other than ADB arising in connection with this Report. The services undertaken by GHD Pty Ltd in connection with preparing this Report were limited to those specifically detailed in the Report and are subject to the scope limitations set out in Contract Number 128987-S52907.
The opinions, conclusions and any recommendations in this Report are based on information/comments provided by ADB as well as stakeholders in this project and information reviewed at the date of field visits and report preparation. GHD Pty Ltd has no responsibility or obligation to update this Report to account for events or changes occurring subsequent to the date that the Report was prepared.
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