Philippines: Road Improvement and Institutional Development Project

Sovereign Project | 41076-044

Summary

The project will result in improved accessibility of transport infrastructure and services. The outcome of the project will be more effective management by the Department of Public Works and Highways (DPWH) of the road network in the project areas. The project outputs include (i) periodic maintenance of nine national roads in the west coast of Luzon, the Visayas, and Mindanao; (ii) detailed engineering design of roads to be maintained or improved under the project and future projects; and (iii) strengthening institutional capacity in the road subsector.

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Project Name Road Improvement and Institutional Development Project
Project Number 41076-044
Country Philippines
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2836-PHI: Road Sector Improvement and Institutional Development Project
Ordinary capital resources US$ 62.00 million
Loan 8267-PHI: Road Sector Improvement and Institutional Development Project
OPEC Fund for International Development US$ 30.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description The project will result in improved accessibility of transport infrastructure and services. The outcome of the project will be more effective management by the Department of Public Works and Highways (DPWH) of the road network in the project areas. The project outputs include (i) periodic maintenance of nine national roads in the west coast of Luzon, the Visayas, and Mindanao; (ii) detailed engineering design of roads to be maintained or improved under the project and future projects; and (iii) strengthening institutional capacity in the road subsector.
Project Rationale and Linkage to Country/Regional Strategy

An efficient road subsector is crucial for the Philippines' economic growth and poverty reduction. An Asian Development Bank (ADB) analysis of roads in the Philippines and other countries found that roads are critical as social arteries for the delivery of government services, penetration of ideas and cultures, and dissemination of technology to the people.

The Philippine Development Plan 2011- 2016 envisions a safe, secure, efficient, viable, competitive, dependable, integrated, environmentally sustainable, and people-oriented Philippine transportation system. It specifies six activities necessary to achieve this overall objective: (i) adopt a comprehensive long-term national transport policy; (ii) develop strategic transport infrastructure, and maintain and manage transport infrastructure assets; (iii) develop an integrated multimodal logistics and transport system; (iv) separate the regulatory and operation functions of transport and other concerned agencies; (v) comply with safety and security standards; and (vi) provide links to bring communities into the mainstream of progress and development. The project will contribute to achieving the plan's objective by helping to maintain and manage transport infrastructure assets, and to strengthen the institutional capacity of DPWH, one of the primary agencies in the transport sector.

The project supports the key objective of ADB's strategy for the Philippines of helping the country achieve high, inclusive, and sustainable growth. The project has been included in the ADB lending program to assist in improving the investment climate and expanding private sector development through the scaling up of infrastructure investments and supporting policy reforms. The project is also fully consistent with ADB''s Strategy 2020 through its focus on improving the delivery of infrastructure services as well as investing in physical assets. The project supports ADB''s transport sector strategy for the Philippines by focusing on maintaining existing roads and improving institutional capacity in the subsector.

Impact Improved accessibility of transport infrastructure and services
Project Outcome
Description of Outcome DPWH manages the road network in the project area more effectively
Progress Toward Outcome DED consultants contract signed in December 2014 and mobilized in January 2015
Implementation Progress
Description of Project Outputs

National roads on the west coast of Luzon, in the Visayas, and in Mindanao periodically maintained

Detailed engineering design of selected roads to be maintained or improved under the project and future projects

DPWH operations in the road sector are strengthened

Project completed on time and within budget

Status of Implementation Progress (Outputs, Activities, and Issues)

Periodic maintenance for Bauang-Baguio Road (30.978 km) and Iloilo-Capiz Road (27.01 km) commenced in August 2013, and Olongapo-Bugallon Road (65.549 km) in December 2013. Palo-Carigara road i Leyte commenced i January 2014 This is a total of 158 km (or about 46% of the planned 340 km).

Ongoing periodic maintenance on 4 road sections.

Detailed engineering design consultants' contract signed in December 2014

DPWH is proposing to cancel the ICD component on Institutionalization of Road Maintenance and Management System, component on Enhancement of the Traffic Recording Analysis System (TARAS)/Improvement of Road Safety Audit (RSA) System, the ICD component on Enhancement of the Traffic Recording Analysis System (TARAS)/Improvement of Road Safety Audit (RSA) System, ICD component on Development and Installation of Project Management Information System (PMIS), the ICD component on Technical Assistance for Environmental and Social Safeguards/Gender Mainstreaming in Infrastructure Development. This was submitted to NEDA and is awaiting approval.

2 goods contracts on IT Facilities (G-10) and Communications Network (G-11) have been awarded. Delivery is 100% for IT facilities (computer and software for 47 DEOs). For G-11, his is about 90% complete.

Out of 10 civil works contracts, 4 contracts have been awarded and have commenced construction.

Bids for 3 contract packages in Mindanao has been opened and are under evaluation.

Construction Supervision consultants have been recruited and have commenced services. Detailed Engineering consultants for 3 civil works contracts and for the next project have been recruited and have commenced services .

Since the actual cost of 4 civil works contracts already procured exceeded the estimates during processing, it is anticipated that the total project cost as estimated will be exceeded if procurement of the remaining contracts are continued. Preliminary estimates from DPWH reveal a revised total project cost of $165.68 million for the same scope. However, for the planned project reconfiguration, revised total project cost is estimated at $155.63 million. DPWH has conveyed that it will shoulder the cost overruns.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The IEE conducted for the Project has not identified any major environmental concerns given that all the proposed civil works are only asset preservation of existing pavement and are located within the existing right-of-way (ROW).
Involuntary Resettlement The Project will have no resettlement impact as it only involves periodic maintenance of the existing pavement.
Indigenous Peoples Surveys of the project roads covered indicate that no indigenous peoples specific actions or plan is required.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Jeffrey M. Miller
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Dept. of Public Works & HighwaysPCO-SRP@COMPASS.COM.PHDPWH Building
Bonifacio Drive, Port Area
Manila, Philippines
Timetable
Concept Clearance 10 Jun 2009
Fact Finding 05 Jun 2011 to 18 Jun 2011
MRM 09 Sep 2011
Approval 15 Dec 2011
Last Review Mission -
Last PDS Update 31 Mar 2015

Loan 2836-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2011 12 Mar 2012 20 Jul 2012 30 Jun 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 62.00 15 Dec 2011 28.22 0.00 46%
Counterpart 38.00 Cumulative Disbursements
Cofinancing 0.00 15 Dec 2011 11.27 0.00 18%

Loan 8267-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Oct 2009 20 Jul 2012 17 Sep 2012 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 0.00 09 Oct 2009 0.00 17.92 60%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 30.00 09 Oct 2009 0.00 6.07 20%
Title Document Type Document Date
Road Improvement and Institutional Development Project Procurement Plans Apr 2014
Road Improvement and Institutional Development Project Project/Program Administration Manual Oct 2012
Loan Agreement for Road Improvement and Institutional Development Project Loan Agreement (Ordinary Resources) Mar 2012
Road Improvement and Institutional Development Project Summary Poverty Reduction and Social Strategies Nov 2011
Road Improvement and Institutional Development Project Project/Program Administration Manual Nov 2011
Road Improvement and Institutional Development Project Reports and Recommendations of the President Nov 2011

Evaluation Documents

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