REPUBLIC OF THE PHILIPPINES DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS (DPWH) PREPARATORY SURVEY FOR EXPRESSWAY PROJECTS IN MEGA MANILA REGION CAVITE LAGUNA EXPRESSWAY PROJECT (Laguna Section) FINAL REPORT MAIN TEXT NOVEMBER 2012 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) CTI ENGINEERING INTERNATIONAL CO., LTD MITSUBISHI RESEARCH INSTITUTE, INC. ORIENTAL CONSULTANTS CO., LTD EI METROPOLITAN EXPRESSWAY CO., LTD JR(先) 12-156 CALAX EXCHANGE RATE June 2012 1PhP= 1.86 Japan Yen 1US$=42.7Philippine Peso 1US$= 79.7 Japan Yen Central Bank of the Philippines LOCATION MAP OF CALAX LOCATION MAP OF CALAX TABLE OF CONTENTS Executive Summary 1 BACKGROUND OF CALAX PROJECT...................................................................................... S-1 2 NECESSITY OF CALAX PROJECT ............................................................................................ S-1 3 OBJECTIVE OF CALAX PROJECT ............................................................................................ S-2 4 ALIGNMENT STUDY OF LAGUNA SECTION OF CALAX .................................................... S-3 4.1 Review of the 2006 FS ........................................................................................................... S-3 4.2 Selection of the Beginning Point of Laguna Section (Connection Point of Cavite and Laguna Section).................................................................. S-4 4.3 Alignment Alternatives of CALA .......................................................................................... S-5 4.4 Viaduct along Laguna Blvd. ................................................................................................... S-9 4.5 Mamplasan Interchange Connection....................................................................................... S-9 5 TRAFFIC DEMAND FORECAST .............................................................................................. S-12 5.1 Existing Traffic Volume ....................................................................................................... S-12 5.2 Existing Travel Speed .......................................................................................................... S-12 5.3 Toll Rate vs. Revenue .......................................................................................................... S-12 5.4 Traffic Assignment ............................................................................................................... S-15 6 SCOPE OF THE PROJECT ......................................................................................................... S-18 6.1 Outline of CALA Laguna Section Project ........................................................................... S-18 6.2 Design Standard ................................................................................................................... S-18 6.3 Typical Roadway Section .................................................................................................... S-19 7 PROJECT COST (Confidential)................................................................................................... S-22 8 ECONOMIC EVALUATION (Confidential) ............................................................................... S-23 8.1 Assumption and Indicators of Economic Analysis (Confidential)........................................ S-23 8.2 Results of Economic Analysis (Confidential)....................................................................... S-23 8.3 Project Sensitivity (Confidential) ......................................................................................... S-23 9 PPP SCHEME............................................................................................................................... S-24 9.1 PPP Modalities Studied ........................................................................................................ S-24 9.2 Results of Financial Analysis of PPP Modalities (Confidential) .......................................... S-26 10 RISK MATRIX ........................................................................................................................... S-30 11 ENVIRONMENTAL AND SOCIAL CONSIDERATION........................................................... S-36 11.1 Assessment of Environmental Impact, Mitigation Measures and Monitoring .................... S-36 11.2 RAP Implementation ............................................................................................................ S-41 12 PROJECT IMPLEMENTATION.................................................................................................. S-46 12.1 Implementation Schedule ..................................................................................................... S-46 12.2 Civil Work Contract Packaging ........................................................................................... S-48 12.3 Procurement Plan ................................................................................................................. S-48 12.4 Organizational Structure ...................................................................................................... S-48 12.5 Financial Plan (Confidential)................................................................................................ S-48 13 OPERATION AND EFFECT INDICATORS .............................................................................. S-53 Main Text CHAPTER 1 INTRODUCTION ............................................................................................................1-1 1.1 BACKGROUND AND BRIEF HISTORY OF THE PROJECT ............................................1-1 1.1.1 Background of the Project ............................................................................................1-1 1.1.2 Brief History of the Project...........................................................................................1-1 1.2 OBJECTIVES OF THE PROJECT ........................................................................................1-2 1.3 THIS REPORT .......................................................................................................................1-2 CHAPTER 2 ROAD SECTOR OVERVIEW ........................................................................................2-1 2.1 PHILIPPINE DEVELOPMENT PLAN (2011 – 2016)..........................................................2-1 2.2 ROAD DEVELOPMENT GOALS........................................................................................2-2 2.3 BRIEF HISTORY OF EXPRESSWAY PPP PROJECTS IN THE PHILIPPINES.................2-3 2.4 MASTER PLAN ON HIGH STANDARD HIGHWAY NETWORK ....................................2-4 2.5 CURRENT ROAD INFRASTRUCTURE SECTOR AND ITS DEVELOPMENT PLAN RELATED TO THE PROJECT ....................................................2-6 2.6 PAST AND FUTURE PLAN OF OTHER DONOR’S PROJECT RELATED TO PPP POLICIES.............................................................................2-7 2.7 RELATION BETWEEN OTHER ODA LOAN PROJECTS .................................................2-8 2.8 LESSON AND COUNTERMEASURE FROM THE SIMILAR PAST PROJECT.............2-10 2.9 DPWH ORGANIZATION AND CURRENT O& M COMPANY.......................................2-17 CHAPTER 3 SOCIO-ECONOMIC CONDITION OF THE PROJECT AREA ....................................3-1 3.1 SOCIO-ECONOMIC CONDITIONS....................................................................................3-1 3.1.1 Physical Profile.............................................................................................................3-1 3.1.2 Demographic Trend ......................................................................................................3-1 3.1.3 Economic Trend............................................................................................................3-5 3.1.4 Per Capita GDP and GRDP ..........................................................................................3-6 3.1.5 Employment..................................................................................................................3-6 3.2 REGIONAL DEVELOPMENT PLAN..................................................................................3-7 3.3 MANUFACTURING COMPANIES IN THE PROJECT INFLUENCE AREA..................3-13 3.3.1 Japanese firms in the Philippines and the Project Area...............................................3-13 3.3.2 Economic Zones in the Project Area...........................................................................3-13 3.3.3 Types of Factories Located in Economic Zones .........................................................3-14 CHAPTER 4 TRAFFIC STUDY............................................................................................................4-1 4.1 PRESENT TRAFFIC CONDITION.......................................................................................4-1 4.1.1 Type of Surveys Carried Out ........................................................................................4-1 4.1.2 Traffic Volume ..............................................................................................................4-1 4.1.3 Hourly Variation of Traffic Volume ..............................................................................4-3 4.1.4 Traffic Composition......................................................................................................4-8 4.1.5 Travel Speed Survey .....................................................................................................4-9