Technical Assistance Consultant’s Report Project Number: 45296 December 2013 Republic of the Philippines: Davao Sustainable Urban Transport Project (Financed by the Japan Fund for Poverty Reduction) Prepared by Halcrow Philippines Manila, Philippines For the Department of Transportation and Communications and the City of Davao 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. CURRENCY EQUIVALENTS (as of 30 November 2014) Currency Unit – Peso (P) P1.00 = $0.022 $1.00 = P44.95 ABBREVIATIONS ADB – Asian Development Bank BOT – build-operate-transfer BR T – bus rapid transport CPC – Certificate of Public Convenience CPCN – Certificate of Public Convenience and Necessity CTTC – Comprehensive Transport and Traffic Code CTTMB – City Transport and Traffic Management Board CTTMB – City Transport and Traffic Management Office CLUP – Comprehensive Land Use Plan CPDO – City Planning and Development Office CPTS – Comprehensive Public Transport Strategy DCOTT – Davao City Overland Transport Terminal DEO – D istrict Engineering Office DPWH – Department of Public Works and Highways DOTC – Department of Transportation and Communication GIS – geographic information system GOCC – government owned and controller corporation HPBS – highly prioritized bus system JICA – Japan International Cooperation Agency JV – joint venture km2 – square kilometer LGC – local government code LGU – local government unit LRT – light rail transit LTFRB – Land Transportation Franchising and Regulatory Board LTO – Land Transportation Office NESTS – National Environmentally Sustainable Transport Strategy NTPF – National Transport Policy Framework PATA – policy and advisory technical assistance PPP – public-private partnership PWD – persons with disability RTPD – Road Transport Planning Division TM C – Traffic Management Center TMCB – Traffic Management and Control Board TRD – Transportation Regulation Division TWG – Technical working group NOTE In this report, "$" refers to US dollars unless otherwise stated. TAHI -8195 P : Davao Sustainable Urban Transport Final Report December 2013 TA -8195 PHI: DAVAO SUSTAINABLE URBAN TRANSPORT PROJECT Final Report FOREWORD This document is the Draft Final Report of TA-8195 PHI: Davao Sustainable Urban Transport Project. It consists of five parts: an Executive Summary and four individual reports representing successive stages of the consultants’ work: Part A: Executive Summary Part B: Project Context & Overview Part C: Review of Urban and Transport Plans Part D: Review of Existing Public Transport Part E: Comprehensive Public Transport Strategy Part B is taken from information contained in the Inception Report (March 2013), while Parts C to E are based on reports first published in April 2013, June 2013 and August 2013, respectively. Although all of these reports have been reviewed in the light of latest information, prior to their inclusion in this Final Report, no attempt has been made to update the basic information and data sources quoted. The documents therefore remain relevant to the date on which they were first published. In addition, the Comprehensive Public Transport Strategy has been extended to include further consideration of the requirements for phased project implementation, capacity development programs, and other follow-on activities to support the proposed public transport reform process. Each part of the report has its own table of contents for ease of reference. Dec ember 2013 TA -8195 PHI: DAVAO SUSTAINABLE URBAN TRANSPORT PROJECT Final Report Part A: Executive Summary December 2013 Executive TA -8195 PHI: DAVAO SUSTAINABLE URBAN TRANSPORT PROJECT Summary Contents 1 Background and Context 1 1.1 Project Context 1 1.2 Davao City 1 1.3 Stakeholder Identification 3 1.4 PATA Outputs and Achievements 3 2 Analysis of Existing Public Transport Situation 4 2.1 Introduction 4 2.2 Conclusions 4 2.2.1 Inadequate network coverage 4 2.2.2 Inappropriate vehicle types 6 2.2.3 Complex route network 6 2.2.4 Highly fragmented transport industry 7 2.2.5 Weak planning and regulatory framework 7 2.2.6 Inadequate supporting infrastructure 8 3 Comprehensive Public Transport Strategy 9 3.1 Introduction 9 3.2 Developing a Public Transport Reform Process 9 3.3 Ensuring Sustainability and Inclusivity 9 3.4 Stakeholder Involvement, Expectations and Feedback 9 3.5 Elements of the Strategy 10 3.5.1 Transport operations and network structure 10 3.5.2 Infrastructure provision and management 12 3.5.3 Procuring services and appropriate service standards 13 3.5.4 Institutional and legislative framework 14 3.5.5 Need for capacity development 14 3.5.6 Managing social impacts 15 4 Mitigating Project Risks 16 4.1 Introduction 16 4.2 Stakeholder Participation 16 4.3 Project Risk Mitigation 16 5 The Way Forward 20 5.1 Introduction 20 December 2013 Page i Executive TA -8195 PHI: DAVAO SUSTAINABLE URBAN TRANSPORT PROJECT Summary 5.2 Tasks 20 5.2.1 Reform of institutional arrangements 20 5.2.2 Continued urban transport policy formulation 20 5.2.3 Development and application of routine procedures 20 5.2.4 Preparation of a public transport plan 21 5.2.5 Preparation and phased implementation of component projects 21 5.2.6 Design of social support systems 21 5.2.7 Continuing stakeholder involvement and capacity development 21 December 2013 Page ii Executive TA -8195 PHI: DAVAO SUSTAINABLE URBAN TRANSPORT PROJECT Summary 1 Background and Context 1.1 Project Context The Policy and Advisory Technical Assistance (PATA) that is the subject of this report was conducted in Davao City between March and November 2013. It is part of a continuing effort to introduce public transport improvements to highly urbanised cities such as Davao. Previous work in this area has included a study by NCTS in early 2000, which made recommendations on improving public transport in the city and, more recently, the Asian Development Bank (ADB) supported Promoting Sustainable Urban Transport in Asia Project, which included Davao as one of its three case study cities. Completed in July 2011, this study recommended the urgent modernisation of Davao’s public transport system and operations. As such, it has provided an important basis for the current PATA. In addition, the Government of the Philippines has developed a National Environmentally Sustainable Transport Strategy (NESTS), under Presidential Order No. 254 of 2011, which includes Davao as one of the focus cities. Following the present work, it is anticipated that further feasibility study of specific investment components of the overall public transport reform process will be undertaken, leading to their subsequent implementation. 1.2 Davao City Located in the Davao Region (Region XI), in south-east Mindanao, Davao City is the third largest city in the Philippines, in terms of population, and is one of the country’s ‘highly urbanised’ cities. It is surrounded by the provinces of Davao Del Sur, to the south, Davao Del Norte, to the north and east, and Cotabato, to the west. The City has an unusually large land area amounting to some 2,444 km2. However, only about 15% of this is scheduled for urban development and the area that is currently built up is even less (about 10%). Most of this development is in the south and east of the city on land bordering the Gulf of Davao, and on either side of the Davao River. The remaining areas further north and west are either reserved for agriculture (67%) or forest/conservation (18%). The main commercial heart of the city (the CBD or Poblacion District) is located on the east bank of the Davao River. However, in recent times, other sub-urban centres have begun to develop in Toril (to the south-west), Calinan (to the north-west) and Bunawan (to the north-east) – leading to an increasingly multi-polar urban structure. Elsewhere, much of the urban area is given over to large, sprawling low-rise residential developments of the type that is particularly difficult to serve effectively with public transport. Between 2000 and 2010 the city’s population increased from 1.147 million to 1.449 million – an average annual growth rate of about 2.4%. The current Comprehensive Land Use Plan (CLUP) anticipates that this rate of growth will continue and that by 2018 (i.e. 5 years from now) the population will have increased to around 1.777 December 2013 Page 1 Executive TA -8195 PHI: DAVAO SUSTAINABLE URBAN TRANSPORT PROJECT Summary million. This represents a need to accommodate an additional 328,000 people over the 8-year period – equivalent to more than 75,000 households, or more than 9,300 households a year. It is anticipated that about 90% of the expected population growth will be concentrated in just 38 of the 182 barangays in the city, and that much of the new development will be in new low-rise sub-divisions to the north, and inland of the present built-up area (Figure 1). Figure 1: Davao City Barangays Most Affected by Population Growth Source: Project Team analysis December 2013 Page 2 Executive TA -8195 PHI: DAVAO SUSTAINABLE URBAN TRANSPORT PROJECT Summary 1.3 Stakeholder Identification The main stakeholders in the City’s public transport system include: • City officials (legislative, executive and technical); • officials of transport-related national government agencies and their regional offices (Department of Transportation and Communications [DOTC], Land Transportation Franchising and Regulatory Board [LTFRB], Land Transportation Office [LTO], Department of Public Works and Highways [DPWH]) – primarily the regulators of much of the public transport system and the national road network; • public transport providers (owners, operators, drivers); and • public transport users (members of civil society groups, special advocacy groups and the business community). Each group has its own interest in the public transport system, which may be in conflict with that of others. Nevertheless, the public transport reform process will need to acknowledge, and seek to reconcile, these different interests. It is also apparent that no one group has a monopoly over the transport system.