Journal of the Eastern Asia Society for Transportation Studies, Vol. 8, 2010 Institutional Spillover Effects of Infrastructure Investment Funded by Foreign Aid: Evidence from a Road Construction Project in Manila Hironori Kato Crispin Emmanuel D. Diaz Associate Professor Associate Professor Department of Civil Engineering School of Urban and Regional Planning Graduate School of Engineering University of the Philippines University of Tokyo Diliman, Quezon City 7-3-1, Hongo, Bunkyo-ku, Tokyo 1101, Philippines 113-8656 Japan Telefax: +63-2-9206854 Fax: +81-3-5841-7451 E-mail:
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[email protected] Marie ONGA Master’s Student Department of Civil Engineering Graduate School of Engineering University of Tokyo 7-3-1, Hongo, Bunkyo-ku, Tokyo 113-8656 Japan Fax: +81-3-5841-8506 E-mail:
[email protected] Abstract: This paper empirically identifies institutional spillover effects, i.e. the influence of one institution's actions, indirectly or unintentionally, on the actions of another institution, that resulted during the implementation of the Circumferential Road No. 3 construction project in Manila, Philippines which was funded by foreign aid. The paper shows an analysis of the mechanism of the effects, based on an examination of the behavioral process of the main actors - the donor, the recipient, the consulting company, and local organizations. First, the paper looked at the project purposes, processes, and outcomes based on relevant literature and interviews with local stakeholders. Then, focusing on a key event, institutional spillovers effects were identified. These spillover effects were examined through a process that identified the major actors, their motivations, available actions and strategies.