Philippines : Improving Growth Corridors in Mindanao Road Sector Project
The project will improve an estimated 280 kilometers (km) of national primary, secondary, and tertiary roads in Mindanao. The improvements will include paving earth roads, replacing damaged road sections, widening existing roads, adding surface overlays, and replacing and strengthening bridges. The project roads will be designed with features to strengthen resilience to climate change. Among the structural and non-structural features included are elevated pavement levels, enhanced slope protection, and improved maintenance of drainage structures. Road safety on these roads will be improved through road safety community awareness campaigns. The project will finance detailed engineering for improvement of another 300 km of national highways in Mindanao, to be implemented under future projects. The Government will determine the roads for which the detailed design will be prepared. The design will incorporate features to strengthen resilience to climate change.
Project Details
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Project Officer
Shim, Chaorin
Southeast Asia Department
Request for information -
Country/Economy
Philippines -
Sector
- Transport
| Project Name | Improving Growth Corridors in Mindanao Road Sector Project | ||||
| Project Number | 41076-048 | ||||
| Country / Economy | Philippines |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Transport / Road transport (non-urban) |
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| Gender | |||||
| Description | The project will improve an estimated 280 kilometers (km) of national primary, secondary, and tertiary roads in Mindanao. The improvements will include paving earth roads, replacing damaged road sections, widening existing roads, adding surface overlays, and replacing and strengthening bridges. The project roads will be designed with features to strengthen resilience to climate change. Among the structural and non-structural features included are elevated pavement levels, enhanced slope protection, and improved maintenance of drainage structures. Road safety on these roads will be improved through road safety community awareness campaigns. The project will finance detailed engineering for improvement of another 300 km of national highways in Mindanao, to be implemented under future projects. The Government will determine the roads for which the detailed design will be prepared. The design will incorporate features to strengthen resilience to climate change. The project will improve the institutional capacity of DPWH to make management of the transport sector more efficient and contribute to improved operations of the transport sector in Mindanao and nationwide. Strengthening of DPWH's institutional capacity will take place in regional offices and in headquarters. Training in multi-year planning carried out exclusively in DPWH regional offices, while the new human resource database system integrating all DPWH operations will be made operational in all DPWH offices. Making the new online system for budgeting and fiscal monitoring operational and the provision of support in supervising regional planning will take place in DPWH headquarters. |
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| Project Rationale and Linkage to Country/Regional Strategy | The road subsector is the most important transport subsector in the Philippines. The national road network comprises 29,630 kilometers (km), or 14% of the total road network and includes the main trunk roads, the national primary arterial roads, and national secondary roads. An efficient road subsector is crucial for the Philippines' economic growth and poverty reduction. Despite its importance to the national economy, the road subsector has not received adequate funding. Expansion or improvement of the network has been limited in recent years, and many roads deteriorate prematurely due to inadequate maintenance. Government funding for the road network has been increasing in recent years; however, about 23% of the national road network is in poor condition and in need of rehabilitation. This contributes to the rising number of road accidents in the Philippines. The increasing impact of climate change, particularly flooding, is having a negative effect on the road network. The road network in Mindanao is less developed than the national network. While 82% of the national roads in Luzon and 89% in Visayas are paved, only 70% of the national roads in Mindanao are paved. Mindanao is the second largest island in the Philippines, with a population of more than 20 million people. Despite being rich in natural resources, Mindanao has the highest poverty incidence of the Philippines' three island groups (Luzon, Visayas, and Mindanao), with a rate of 36.2%. This is largely because of civil conflict and low economic growth. Despite significant development has occurred in recent years, a number of infrastructure targets in the government's Mindanao 2000 plan were not achieved, due to the lack of coherent plans, inadequate government financial resources, and underinvestment, especially by the private sector due to perceptions of the civil conflict. The government, Japan International Cooperation Agency, the World Bank, and the Australian Agency for International Development have completed or are now implementing national or provincial road improvement projects in Mindanao. However, a large part of the road network in Mindanao remains in need of improvement. Mindanao plays a key role in the Philippines' participation in regional cooperation initiatives. It comprises most of the Philippine territory in the Brunei DarussalamIndonesiaMalaysiaPhilippines East ASEAN Growth Area (BIMP-EAGA) Greater Sulu Sulawesi Corridor. The project is aligned with Strategic Pillar I (Enhancing connectivity within BIMP-EAGA as well as with other regions outside of BIMP-EAGA) of the BIMP-EAGA Implementation Blueprint, 20122016. Improving roads in Mindanao will support the development of agribusiness, ecotourism, and logistics, contributing to the development of the Greater Sulu Sulawesi Corridor. The project supports the Government of the Philippines' priorities for improvement of the country's road network and development of Mindanao. It also supports the key objective of ADB's strategy for the Philippines of helping the country achieve high, inclusive, and sustainable growth. The project is 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 regional cooperation and integration by contributing to the implementation of the ASEAN Highway and BIMP-EAGA Priority Infrastructure Projects. It supports ADB's Sustainable Transport Initiative by addressing climate change and road safety, and it is included in ADB's Philippines Transport Sector Assessment, Strategy, and Road Map |
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| Impact | Economic and physical linkages in Mindanao strengthened (Mindanao Strategic Development Framework 2010-2020. National Economic and Development Authority |
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| Project Outcome | |
|---|---|
| Description of Outcome | Efficiency and safety of selected sections of the road transport network in Mindanao improved |
| Progress Toward Outcome | Overall project implementation progress is 46.66% with elapsed time of 72.06% as of 30 September 2022. The Construction Supervision Consultant (package CS) was mobilized in May 2019 while the External Monitoring Consultant was mobilized in November 2020. The activities under these contracts are ongoing.For Output 1, the estimated progress in each of the 10 ongoing civil works contract as of 25 September 2022 were the following: PR-06, 100%; PR-07, 95.41%; PR-09, 86.94%; PR-08, 45.98%; PR-09a, 23.82%; PR-12, 44.96%; PR-13, 47.01%; PR 01a, 3.68%; Tawi-Tawi Bridge No. 1, 1.67%; and Tawi-Tawi Bridge No. 3, 0.34%.For the recruitment of the FS/ DED consultant which will prepare the DED of candidate subprojects for possible financing under Output 1, ADB provided no objection to Submission 3 Financial Proposal Evaluation and Overall Ranking on 4 July 2022. Contract negotiations with the first-ranked has concluded and notice of award was issued to the consultant on 22 September 2022.The procurement of Tawi-Tawi Bridge No. 2 is scheduled for Q4 2022. Due diligence to include this subproject for financing under this loan was completed on 14 October 2022. The IEE was disclosed on 19 October 2022 while the RIPP is expected to resubmitted for ADB's further review by 21 October 2022. |
| Implementation Progress | |
| Description of Project Outputs | 1. Selected sections of road transport network in Mindanao improved. 2. Detailed engineering design for improvement of roads in other projects completed. 3. Institutional capacity of DPWH in multi-year planning, fiscal accountability and human resource management strengthened. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Not yet started. ADB provided no objection to Submission 3 Financial Proposal Evaluation and Overall Ranking on 4 July 2022. Contract negotiations has concluded and notice of award was issued on 22 September 2022.DPWH published the request for EOI on 3 August 2022 and extended the EOI submission date thrice: 17 August 2022, 31 August 2022 and 14 September 2022. The submission 1 is being prepared.Consultant recruitment is ongoing.No online system installed yet. DPWH submitted a proposal to change the ICD 2 Fiscal Accountability contract package from consulting services to goods through their letter of 21 June 2022. ADB issued no objection to DPWH's proposal on 20 September 2022. Bidding document is being prepared. Target procurement commencement is in Q4 2022.ADB approved a minor change implementation arrangements on 10 September 2021 which changed the ICD-3 Human Resources contract package from consulting services to goods. DPWH is still preparing the bidding document for this contract package. DPWH met with PPFD on 19 September 2022 to be clarified on some matters regarding bidding document preparation. Target procurement commencement is in Q4 2022.No online system installed yet. Procurement of IT goods and services yet to commence in Q4 2022.No system installed yet. Procurement of IT goods and services yet to commence in Q4 2022.Not yet dueOngoing.OngoingOngoingOngoing. Overall project implementation progress is 46.66% with elapsed time of 72.06% as of 30 September 2022. The Construction Supervision Consultant (package CS) was mobilized in May 2019 while the External Monitoring Consultant was mobilized in November 2020. The activities under these contracts are ongoing.For Output 1, the estimated progress in each of the 10 ongoing civil works contract as of 25 September 2022 were the following: PR-06, 100%; PR-07, 95.41%; PR-09, 86.94%; PR-08, 45.98%; PR-09a, 23.82%; PR-12, 44.96%; PR-13, 47.01%; PR 01a, 3.68%; Tawi-Tawi Bridge No. 1, 1.67%; and Tawi-Tawi Bridge No. 3, 0.34%.For the recruitment of the FS/ DED consultant under Output 2 which will prepare the DED of candidate subprojects for possible financing under Output 1, ADB provided no objection to Submission 3 Financial Proposal Evaluation and Overall Ranking on 4 July 2022. Contract negotiations with the first-ranked has concluded and notice of award was issued to the consultant on 22 September 2022.The procurement of Tawi-Tawi Bridge No. 2 is scheduled for Q4 2022. Due diligence to include this subproject for financing under this loan is ongoing. The final IEE was submitted to ADB on 3 October 2022 and will be disclosed once cleared. The RIPP was submitted to SDSS for review on 4 October 2022.Not yet due. ADB provided no objection to Submission 3 Financial Proposal Evaluation and Overall Ranking on 4 July 2022. Contract negotiations with the first-ranked firm has concluded and notice of award was issued on 22 September 2022. |
| Geographical Location | Province of Zamboanga Sibugay, Province of Zamboanga del Norte, Zamboanga Peninsula |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | A |
| Indigenous Peoples | B |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The IEE conducted for the Project has not identified any major environmental concerns given that all civil works use existing road alignment and are located within the existing right-of-way (ROW). As this is a sector loan project, a separate IEE is to be prepared for each identified core and non-core subproject. An IEE will be prepared for any new subproject that will be added in the future. These IEEs will be the basis for preparing the environmental management plan to address and mitigate localized construction-related environmental impacts. To date, the IEE for the 3 current core subprojects, 5 non-core subprojects and 3 Tawi-Tawi bridges are approved and disclosed. |
| Involuntary Resettlement | To ensure compliance with the ADB SPS, DPWH endorsed the Resettlement and Indigenous Peoples Framework (RIPF) to guide the overall sector project particularly in the preparation of the Resettlement and Indigenous Peoples Plan (RIPP) for each subproject. These RIPPs are based on the detailed engineering design and reflect the actual number of affected people and corresponding losses. As this is a sector loan project, new subprojects are expected to be added anytime during the project implementation period. An RIPP will have to be prepared and approved for each additional subproject. As such, the total number of affected households, structures and trees under the project cannot be accurately determined at this time but is expected to increase as new subprojects are added. To date, the RIPP for the 3 current core subprojects, 5 non-core subprojects and 2 Tawi-Tawi bridges are approved and disclosed. |
| Indigenous Peoples | In identifying affected indigenous peoples, DPWH shall utilize key procedures in the DPWH Updated Social and Environment Management Systems (SEMS) Manual of Operations in (i) determining the presence of IPs or existence of ancestral domain in potential project areas; (ii) obtaining Voluntary Solicitation or Initiation from Indigenous Peoples; (iii) the Field-Based Investigation (FBI); (iv) obtaining the Free, Prior and Informed Consent (FPIC); and (v) preparing the social safeguards document/plan or using the National Commission on Indigenous Peoples (NCIP) terminology, the Indigenous People's Action Plan (IPAP). Central to screening is the FBI to be conducted by the NCIP to ascertain the presence of IPs/ICCs and ancestral domains. As this is a sector loan project, the total number of affected IPs cannot be determined at this time as it is envisaged new subprojects will be added during the project implementation period. To date, the RIPP for the 3 current core subprojects, 5 non-core subprojects and 2 Tawi-Tawi bridges are approved and disclosed. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The overarching objectives of the Stakeholder Communication Strategy include ensuring regular and proactive information sharing with affected communities, and developing community support for the project. Pursuant to the requirements of ADB's Public Communication Policy, this will be done by:(i)Identifying a primary focal point within DPWH for regular communication with affected people and other stakeholders, as well as broader communication responsibilities (i.e., media relations);(ii)Ensuring that relevant project information is delivered to stakeholders in a culturally appropriate, gender-sensitive, and timely manner to raise awareness of the project's scope, benefit and impacts, and to foster acceptance and understanding of the project;(iii)Ensuring that accurate and timely feedback from stakeholders is obtained;(iv)Enabling an efficient and regular two-way flow of information between project implementers and stakeholders, with information sharing and consultative mechanisms established;(v)Involving and working with local leaders to help foster understanding and acceptance of the project;(vi)Ensuring the timely full disclosure of all required documents;(vii)Monitoring the implementation of the Stakeholder Communication Strategy throughout the project, ensuring corrective actions are taken where needed. |
| During Project Implementation | Face-to-face, community-level discussions and meetings will be regularly conducted with project affected persons and other stakeholders along the road to ensure they are aware of project developments and have meaningful opportunities to share their perspectives and concerns. Multiple communication channels will be utilized to ensure project affected persons and other stakeholders receive adequate notice of discussions and meetings. Channels will include information sharing through local authorities, as well as a project Facebook and website.For all communication, consultation and outreach activities, gender sensitive and culturally appropriate information, education and communication (IEC) materials will be developed (i.e., leaflets) to ensure all stakeholders, including the poor, vulnerable and low-literacy groups, clearly understand key project components, benefits and impacts. The Project Information Booklet (PIB) will indicate how stakeholders can get in touch with project implementers. Information in the PIB will also be shared through other culturally appropriate communication channels, including face-to-face meetings. A project FAQ will be developed and disseminated.An agreed-upon system will be put in place by DPWH's communication focal point to ensure stakeholder feedback is shared with relevant project staff, and considered as the project is implemented. This will include the establishment of project phone hotline numbers to receive inquiries and concerns, as well as regularly (at least monthly) two-way communications between designated DPWH communication focal points and communities along the highway. Inquiries and concerns will be logged. Key stakeholders will subsequently be informed how their feedback was shared, and what actions were taken based on the feedback.Information, education and outreach on key project components, including consultation and Grievance Redress Mechanism requirements, will also be conducted with community leaders and local officials to ensure they understand the project, its importance, and their responsibilities.DPWH's communication focal point will be responsible for implementing and monitoring all communication activities, including information dissemination and disclosure, and ensuring regular contact with affected people and other interested stakeholders. |
| Business Opportunities | |
|---|---|
| Consulting Services | Recruitment will follow Guidelines on the Use of Consultants by ADB and its Borrowers (March 2013). |
| Procurement | Procurement will follow ADB Procurement Guidelines (April 2015). |
| Responsible ADB Officer | Shim, Chaorin |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Transport and Communications Division, SERD |
| Executing Agencies |
Dept. of Public Works & Highways |
| Timetable | |
|---|---|
| Concept Clearance | 16 Dec 2013 |
| Fact Finding | 01 Feb 2016 to 30 Jun 2017 |
| MRM | 05 Sep 2017 |
| Approval | 14 Dec 2017 |
| Last Review Mission | - |
| Last PDS Update | 24 Nov 2022 |
Loan 3631-PHI
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 14 Dec 2017 | 10 Jan 2018 | 23 Mar 2018 | 30 Jun 2024 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 503.00 | Cumulative Contract Awards | |||
| ADB | 380.00 | 25 Apr 2023 | 208.21 | 0.00 | 55% |
| Counterpart | 123.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 25 Apr 2023 | 112.24 | 0.00 | 30% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Philippines: Improving Mindanao's Roads
A new ADB loan is supporting the Philippine government to strengthen road networks and spur economic development in Mindanao, the country’s second-largest island with more than 20 million people.Building Roads in Mindanao, Philippines, to Build Peace and Prosperity
$380-million loan will help improve 280 km of national roads and bridges in Mindanao, Philippines, expanding access to social services and economic opportunities in one of the country’s poorest regions.ADB $380 Million Loan to Improve Roads in Mindanao, Philippines
ADB's Board of Directors has approved a $380 million loan to help the Philippine government strengthen the road network and spur economic development in Mindanao.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Consulting Services for the Preparation of Feasibility Studies and Detailed Engineering Design of Roads and Bridges Projects under the IGCMRSP | Loan 3631 | 24 Nov 2022 | Oriental Consultants Global Co., Ltd JV with Pacific Rim Innovation and Management Exponents, Inc. and Korea Engineering Consultants Corp. and in association with Woodfields Consultants, Inc., KGC Partners Co., and Oriental Consultants Philippines | 20-2 Nishishinjuku, 3-chome, Shinjuku-ku, Tokyo 163-1409 Japan | Dept. of Public Works & Highways | 10,173,105.42 | 8,771,817.18 |
| PR01a: Gutalac-Baliguian Alternative Road, Zamboanga del Norte | Loan 3631 | 11 Jul 2022 | China Wuyi Co., Ltd. | 4th Floor Commodore Bldg., 422 Arquiza St., Ermita, Manila | Dept. of Public Works & Highways | 15,311,086.54 | 13,552,900.82 |
| Bridge No. 1, Nalil-Sikkiat Bridge | Loan 3631 | 11 Jul 2022 | China Wuyi Co., Ltd. | 4th Floor Commodore Bldg., 422 Arquiza St., Ermita, Manila | Dept. of Public Works & Highways | 16,008,577.00 | 14,156,105.98 |
| Bridge No. 3, Malassa-Lupa Pula Bridge, Tawi-Tawi, BARMM | Loan 3631 | 11 Jul 2022 | Vicente T. Lao Construction / China Wuyi Co., Ltd. (Consortium) | Unit 18V Legaspi Tower 300, Roxas Blvd. corner P. Ocampo, Malate, Manila | Dept. of Public Works & Highways | 22,398,601.71 | 19,245,671.96 |
| PR-09A, GUICAM BRIDGE, ZAMBOANGA SIBUGAY | Loan 3631 | 22 Jan 2021 | TIANYUANCONSTRUCTION GROUP CORPORATION / | SALCEDO ST., SAN LORENZO, MAKATI, PHILS CHINA CHINA,PEOPLE'SREP.OF | Dept. of Public Works & Highways | 22,146,720.58 | 18,914,646.92 |
| PR-13, SIAY - GAPOL ROAD, ZAMBOANGA SIBUGAY | Loan 3631 | 22 Jan 2021 | QINGDAO MUNICIPAL CONSTRUCTION GROUP CO., LTD | TIGUMA DISTRICT, PAGADIAN CITY, PHILS CHINA CHINA,PEOPLE'SREP.OF | Dept. of Public Works & Highways | 23,089,293.63 | 19,719,661.66 |
| PR-12, CURUAN - SIBUCO ROAD, ZAMBOANGA DEL NORTE | Loan 3631 | 22 Jan 2021 | M. ABUBAKAR CONSTRUCTION AND ENGINEERING, INC | TM KALAW AVE COR CORTADA ST., ERMITA MANILA, PHILIPPINES PHILIPPINES | Dept. of Public Works & Highways | 34,895,673.08 | 29,803,028.08 |
| PR-08, R.T. LIM - SIOCON ROAD, ZAMBOANGA SIBUGAY AND ZAMBOANGA DEL NORTE | Loan 3631 | 22 Jan 2021 | CHINA WUYI CO., LTD. | 422 ARQUIZA ST, ERMITA, MANILA, PHILS CHINA CHINA,PEOPLE'SREP.OF | Dept. of Public Works & Highways | 40,815,825.74 | 34,859,198.67 |
| CONSULTANCY SERVICES TO UNDERTAKE THE EXTERNAL MONITORING OF THE RESETTLEMENT AND INDIGENOUS PEOPLES PLAN | Loan 3631 | 25 Nov 2020 | LICHEL TECHNOLOGIES, INC | PRESTIGE TOWER CONDOMINIUM ORTIGAS CENTER, PASIG CITY PHILIPPINES | Dept. of Public Works & Highways | 1,190,706.81 | 1,074,867.31 |
| PR-09 LUTIMAN-GUICAM-OLUTANGA ROAD, ZAMBOANGA SIBUGAY K1759 967.17 - K1798 666.33 | Loan 3631 | 27 Dec 2018 | SINO ROAD AND BRIDGE GROUP CO LTD/M. ABUBAKAR | CHINA CHINA,PEOPLE'SREP.OF | Dept. of Public Works & Highways | 18,642,308.25 | 16,061,846.12 |
| PR-07 TAMPILISAN-SANDAYONG ROAD, ZAMBOANGA DEL NORTE K1981 490.00 - K1999 065.86 | Loan 3631 | 27 Dec 2018 | MAC BUILDERS/FIAT CONSTRUCTION SERVICES JV | BRGY SABER, MARAWI CITY, PHILIPPINES PHILIPPINES | Dept. of Public Works & Highways | 11,746,364.23 | 10,120,436.39 |
| PR-06 ALICIA-MALANGAS ROAD, ZAMBOANGA SIBUGAY K1769 648 - K1793 751.43 | Loan 3631 | 27 Dec 2018 | CHINA GEO-ENGINEERING CORP/ESR CONS & DEV COR | CHINA CHINA,PEOPLE'SREP.OF | Dept. of Public Works & Highways | 24,856,871.39 | 21,416,191.49 |
| CONSULTING SERVICES FOR THE CONSTRUCTION SUPERVISION OF THE CONSTRUCTION OF ROADS AND BRIDGES | Loan 3631 | 07 May 2019 | RENARDET S.A IN JV WITH DESIGN SCIENCE | UNIT 2315 CITYLAND CONDOMINIUM, HV DELA COSTA ST. SALCEDO VILL, MAKATI SWITZERLAND | Dept. of Public Works & Highways | 9,367,761.31 | 8,408,693.07 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Improving Growth Corridors in Mindanao Road Sector Project: Procurement Plan | Procurement Plans | Dec 2022 |