Philippines: Road Improvement and Institutional Development Project

Transport - Road transport (non-urban)

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.

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

All 10 civil works contracts for Periodic maintenance have been awarded and only 3 contracts have not commenced as of March 2017. 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 in Leyte commenced in January 2014. ADB approved the award for 3 contract packages in Mindanao on 15 June 2015. Works commenced in December 2015. The last three civil works contracts were awarded during the 4th quarter of 2016.

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). G-11 is likewise completed.

Construction Supervision consultants have been recruited and have commenced services.

Detailed engineering design consultants' contract signed in December 2014, and they mobilized in January 2015.

DPWH proposed 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 approved by NEDA on 19 May 2015 and the Certificate of confirmation was sent to ADB on 11 August 2015l. These deletions were approved on 24 Nov 2015.

Due to the delayed award of the last contracts, the loan closing date has been extended to 30 June 2018

Since the actual cost of 4 civil works contracts already procured exceeded the estimates during processing, it was anticipated that the total project cost as estimated will be exceeded if procurement of the remaining contracts are continued. 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 agreed that government will shoulder the cost overruns.