Philippines: Infrastructure Preparation and Innovation Facility

Sovereign Project | 50288-001

A technical assistance loan is proposed as the financing modality. The Project will directly support DPWH and DOTr to deliver more effective and more innovative infrastructure projects. The key benefits include: (i) effective identification, analysis, and planning for infrastructure gaps, especially roads, urban transport, urban water, sanitation, and flood management; (ii) addressing critical constraints such as resettlement processes and inadequate access to international knowledge, best practices, innovation, and technology; and (iii) implementation management of sophisticated public infrastructure projects with international expertise to supplement national expertise and resources. The Project will also help address key operational areas for ADB through gap analysis and support for country system development in key areas such as: (i) land acquisition; (ii) procurement; and (iii) start-up delays.

Project Details

  • Project Officer
    Kimura, Shuji
    Southeast Asia Department
    Request for information
  • Country/Economy
    Philippines
  • Modality
    • Loan
  • Sector
    • Transport
Project Name Infrastructure Preparation and Innovation Facility
Project Number 50288-001
Country / Economy Philippines
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3589-PHI: Infrastructure Preparation and Innovation Facility
Ordinary capital resources US$ 100.00 million
Loan 3886-PHI: Infrastructure Preparation and Innovation Facility (Additional Financing)
Ordinary capital resources US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development / Rural flood protection

Transport / Road transport (non-urban) - Transport policies and institutional development - Urban public transport

Gender Equity and Mainstreaming No gender elements
Description A technical assistance loan is proposed as the financing modality. The Project will directly support DPWH and DOTr to deliver more effective and more innovative infrastructure projects. The key benefits include: (i) effective identification, analysis, and planning for infrastructure gaps, especially roads, urban transport, urban water, sanitation, and flood management; (ii) addressing critical constraints such as resettlement processes and inadequate access to international knowledge, best practices, innovation, and technology; and (iii) implementation management of sophisticated public infrastructure projects with international expertise to supplement national expertise and resources. The Project will also help address key operational areas for ADB through gap analysis and support for country system development in key areas such as: (i) land acquisition; (ii) procurement; and (iii) start-up delays.
Project Rationale and Linkage to Country/Regional Strategy

The current administration under the Ten-Point Socioeconomic Agenda aims to ramp up public infrastructure projects such as national roads, expressways, bridges, airports, subways, and railways. Public spending on infrastructure is expected to reach 7% of gross domestic product (GDP) by 2022 or approximately $14.5 billion annually, from the current level of 3.4% of GDP in 2016. To materialize the goals of infrastructure investment, the government requested the Project from the Asian Development Bank (ADB) to help the two key agencies responsible for national public infrastructure projects, namely DPWH and DOTr, conduct pre-investment activities which will in turn help accelerate the Investment Coordination Committee review and approval process and ensure timely, high-quality procurement and implementation.

To enhance national capacity, additional access to international sources of innovation, expertise, advice, and best practices would enable DPWH and DOTr to incorporate expertise and innovation in project formulation and implementation. An ADB-funded Project and its international procurement systems would facilitate DPWH and DOTr access to required specific technologies, international expertise, and innovation, complementing and building on nationally available expertise. The Project will help DPWH and DOTr to more effectively execute and implement public infrastructure projects by accelerating the due diligence stages, detailed engineering designs, and the bidding process preparation.

The Project is included in the Country Operations and Business Plan 2017 2019. It contributes to the inclusive economic growth and environmentally-sustainable growth agenda of the Midterm Review of Strategy 2020.

Impact Infrastructure development accelerated.
Project Outcome
Description of Outcome Delivery and quality of public infrastructure projects improved
Progress Toward Outcome The outcome indicators include: (a) Project approval time reduced to at most 10 months; (b) Project start-up time shortened to at most 18 months; and (c) $30 billion of public infrastructure investment approved by NEDA's Investment Coordination Committee (ICC) and procured with ADB support. The lowest approval time was 12 months for Samal Island-Davao City Connector(SIDC) project. 14.7 months on average for the three approved projects which IPIF has supported from the beginning, (EDSA Greenways Aug18-Jan20 (17 months), SIDB Nov18-Nov19 (12 months), Bataan Cavite Interlink Bridge Nov18-Jan20 (15 months). As of 10 September 2021, $26.1 billion of projects supported by IPIF have been approved by NEDA ICC (North South Commuter Rail $14 billion, Metro Manila Subway $7 billion, Mindanao Rail $1.6 billion, Bataan-Cavite Interlink Bridge $3 billion, EDSA Greenways $0.1 billion).
Implementation Progress
Description of Project Outputs

Road and bridge projects prepared.

Water projects prepared.

Rail, public transport, port, and airport projects prepared.

Project management capacity of the government improved.

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

Output 1. Three contracts have been awarded. The consultant, Arup, has completed the project identification and planning (PIP) phase in October 2018. In the PIP phase, Arup scoped out the projects, prioritized those that are likely to be feasible and implementable within the government's term, and scoped out the next phase of study so that it can be readily engaged. Seven subprojects were identified by the consultant and approved by DPWH for further study under IPIF. DPWH instructed Arup to carry out (i) feasibility study (FS) for 4 projects, i.e. Laguna Lakeshore Road Network Project (LLRN), Samal Island Davao City Connecter Project (SIDC), Bataan Cavite Interlink Bridge Project (BCIB), and North Eastern Luzon Expressway Project (NELEX), (ii) pre-FS of 2 projects, i.e. Sorsogon Samar Link Bridge Project and Bohol-Leyte Lin Bridge Project, and (iii) one transport study, Transport Link Study for Central Visayas. As of 31 August 2021, most of the works are completed and there are some remaining works for LLRN, SIDC and NELEX. The expected completion of the woks is in October 2021. As of 31 August 2021, the detailed design engineering (DED) for Metro Manila Bridges is more than 90% completed and expected completion is in April 2022. The DED for BCIB is more than 20% completed and expected completion will be in September 2022. The recruitment if consulting services for DED for LLRN and independent checking engineer (ICE) for BCIB are ongoing. Awarding are expected in 2021.

Output 2. One contract has been awarded. The consultant was tasked to prepare for six river basins (Apayao-Abulug, Abra, Jalaur, Agus Buayan-Malungon, and Tagum-Libuganon), (i) initial project identification; (ii) flood control master plans (iii) FS, (iv) DED, and (v) bidding documents for selected projects within these river basins. As of 10 September 2021, the initial project identification and the flood control master plan for all six river basins have been completed. The FS for 3 river basins (Abra, Agus and Tagum-Libuganon) are completed, and FS for the remaining 3 river basins (Apayao-Abulug, Jalaur, and Agus Buayan-Malungon) are ongoing and will be completed in December 2021. Following the FS, DPWH will include DED, preparation of bidding documents and tender support as subprojects under the framework contract through contract variations (VO). DPWH will issue the first VO in September 2021 for three river basins for which FS are completed, and another VO in February 2022 for the remaining three basins. Expected completion is December 2023. DPWH plans to procure two contract packages under L3886, i.e. (i) master planning/FS/DED for Allah, Ilog-Hilabangan, and Aklan river basins; and (ii) master planning/FS/DED for Agno, Mag-Asawang Tubig, and Cadac-an (estimated amount: $33.89 million). They will be advertised in October 2021.

Output 3. One contract has been awarded. The consultants were tasked to provide various support large and complex transport projects under various subsectors. DOTr have included various type of the supports for Mindanao Railway, North South Railway Project, Metro Manila Subway, Subic Clark Railway, South Long Haul, MRT-3, Luzon Railways, Common Station, Davao High Priority Bus System, EDSA Greenways, Cebu BRT, New Cebu International Container Port and Mindanao Central Airport. DOTr plans to recruit three consultants for Metro Rail Transit, Line 4, (MRT-4), and recruitment of the DEDC for MRT-4 is ongoing. The DEDC contract will be signed in September/October 2021.

Output 4. The allocation for this output has not been utilized yet. This output aims to (i) support gender design features and gender targets in project preparation, (ii) prepare manuals for project preparation activities in DPWH and DOTr, (iii) provide trainings for project planning and preparation to staff in DPWH and DOTr, and (iv) provide training and project implementation support provided. Item (i) and (iv) are being achieved under the consulting services under output 1, 2 and 3 and the individual consultants mobilized under the TA grant are supporting implementation of the projects. For Item (ii), the detailed needs are being discussed with DPWH and DOTr. Regarding item (iii), the Government use the TA grant for training of Staff and unlikely to use the Loan funds.

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project focus is on improving public system management and providing consulting services to support in the preparation of infrastructure projects for DPWH and DOTr. As such, it is not expected to have any direct adverse social and environmental impacts or to impact indigenous people. The project's environmental safeguard category is classified as category C.
Involuntary Resettlement The project's social safeguard category is classified as category C for involuntary resettlement.
Indigenous Peoples The project's social safeguard category is classified as category C for indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design The fact finding mission was held during 24 February- 14 March 2017 with respective government agencies: Department of Finance (DOF), National Economic and Development Authority (NEDA), Department of Public Works and Highways (DPWH), Department of Transportation (DOTr).
During Project Implementation A steering committee (SC), chaired by DOF, has been created to support the implementation of the TA Loan. The SC has been meeting regularly since January 2018 and the latest on 10 September 2021. The SC members include NEDA, DPWH, DOTr, and Department of Budget and Management (DBM).
Business Opportunities
Consulting Services

All consultants were recruited according to ADB's Guidelines on the Use of Consultants (March 2013, as amended from time to time). Three consulting packages has been advertised in 2nd quarter 2017, following Quality-Based Selection (QBS) to ensure highest possible standard of services. Advance action was undertaken by ADB on behalf of the Government. The consultants mobilized in Q2 2018. DPWH and DOTr will administer and manage the contracts.

The need for individual consultants packages will be reviewed.

The following firm consultants were mobilized in Q2 2018.

Output 1 Roads and Bridges (DPWH): Ove Arup & Partners Hong Kong Ltd. (UKG)

Output 2 Water/Flood Management (DPWH): Egis Eau (France), Inclam (Spain), Korea Engineering Consultants Corp. (Korea)

Output 3 Transportation (DOTr): Ove Arup & Partners Hong Kong Ltd. (UKG)

Procurement There is no procurement of goods and works under the Project, procurement of office equipment and furniture for the consultants will be carried out by the consultants under their contract in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Kimura, Shuji
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Department of Finance
DOF Building
Bangko Sentral ng Pilipinas Complex
Roxas Blvd., Manila, Philippines
Timetable
Concept Clearance 11 Jan 2017
Fact Finding 24 Feb 2017 to 14 Mar 2017
MRM 13 Jun 2017
Approval 27 Oct 2017
Last Review Mission -
Last PDS Update 28 Sep 2021

Loan 3589-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Oct 2017 08 Nov 2017 01 Feb 2018 30 Jun 2022 30 Jun 2023 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 164.06 Cumulative Contract Awards
ADB 100.00 17 Jun 2022 98.37 0.00 98%
Counterpart 64.06 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 50.23 0.00 50%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

Loan 3886-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2019 13 Dec 2019 18 Feb 2020 30 Jun 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 241.68 Cumulative Contract Awards
ADB 200.00 17 Jun 2022 128.02 0.00 64%
Counterpart 41.68 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 17.85 0.00 9%
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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Infrastructure Preparation and Innovation Facility: Procurement Plan Procurement Plans Mar 2022
Infrastructure Preparation and Innovation Facility: Department of Transportation Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Nov 2021
Infrastructure Preparation and Innovation Facility: Department of Public Works and Highways Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Nov 2021
Infrastructure Preparation and Innovation Facility (Additional Financing): Updated Project Administration Manual Project/Program Administration Manual Sep 2021
Loan Agreement (Ordinary Operations) for Loan 3886-PHI: Infrastructure Preparation and Innovation Facility - Additional Financing Loan Agreement (Ordinary Resources) Dec 2019
Infrastructure Preparation and Innovation Facility (Additional Financing): Project Administration Manual Project/Program Administration Manual Nov 2019
Infrastructure Preparation and Innovation Facility (Additional Financing): Report and Recommendation of the President Reports and Recommendations of the President Nov 2019
Loan Agreement for Loan 3589-PHI: Infrastructure Preparation and Innovation Facility Agreements Nov 2017
Infrastructure Preparation and Innovation Facility: Report and Recommendation of the President Reports and Recommendations of the President Oct 2017
Infrastructure Preparation and Innovation Facility: Project Administration Manual (As of Board Approval) Project/Program Administration Manual Oct 2017
Infrastructure Preparation and Innovation Facility: Concept Paper Concept Papers Jan 2017
Infrastructure Preparation and Innovation Facility: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jan 2017

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Manila Rail Transit Line 4 - Shadow Operator Consultant Firm - Consulting Closed 01 Apr 2022 21 Apr 2022
Consulting Services for Preparing Flood Risk Management Projects in Allah, Ilog-Hilabangan and Aklan River Basins Firm - Consulting Closed 11 Jan 2022 23 Feb 2022
Consulting Services for Preparing Flood Risk Management Projects in Agno River Basin, Mag-Asawang Tubig and neighboring river basins, and Cadac-an River Basin Firm - Consulting Closed 11 Jan 2022 23 Feb 2022
MRT 4 - Independent Checking Engineer Firm - Consulting Closed 13 Oct 2021 22 Oct 2021
Detailed Engineering Design Consultant for Laguna Lakeshore Road Network Project Firm - Consulting Closed 14 Oct 2020 06 Nov 2020
Detailed Architectural and Engineering Design Consultant Firm - Consulting Closed 21 Jul 2020 04 Aug 2020
Detailed Engineering Design Consultant for Bataan-Cavite Interlink Bridge Project Firm - Consulting Closed 23 Dec 2019 24 Jan 2020
Samal Island-Davao Connector (SIDC) Project Detailed Engineering Design Consultant Firm - Consulting Closed 25 Oct 2019 23 Nov 2019
Detailed Engineering Design Consultant Firm - Consulting Closed 04 Apr 2019 08 May 2019
Road and bridge consultant firm to support DPWH with project preparation activities Firm - Consulting Closed 30 Jun 2017 29 Aug 2017
Transportation consultant firm to support DOTr with project preparation activities Firm - Consulting Closed 30 Jun 2017 29 Aug 2017
Water (flood control) consultant firm to support DPWH with project preparation activities Firm - Consulting Closed 30 Jun 2017 29 Aug 2017

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 Independent Checking Engineer of Bataan-Cavite Interlink Bridge Project Detailed Engineering Design Loan 3886 11 May 2022 Ove Arup & Partners Hong Kong Ltd. | Level 5, Festival Walk, 80 Tat Chee Avenue, Kowloon Tong, Hong Kong, China Department of Finance 2,808,067.00 2,808,067.00
Laguna Lakeshore Road Network - Phase 1 Detailed Engineering Design and Procurement Loan 3886 06 Dec 2021 CTI Engineering International Co., Ltd. (CTII) in JV with CHODAI, OCG and NEC and in association with Angel Lazaro and Associates International, DCCD Engineering Corporation, TCGI Engineers and KRC Environmental Services | S&L Building, 1500 Roxas Boulevard, Ermita, Manila Department of Finance 38,003,179.28 37,865,699.43
DEDC Detailed Architectural and Engineering Design Consultant Loan 3886 22 Oct 2021 IDOM, Consulting, Engineering, Architecture, S.A.U. | Avda. Zarandoa 23, 48015 Bilbao, Vizcaya, Spain Department of Finance 29,000,000.00 28,967,696.00
CONSULTING SERVICES FOR THE DETAILED ENGINEERING DESIGNOF BATAAN-CAVITE INTERLINK BRIDGE(BCIB) UNDER IPIF-AF Loan 3886 10 Nov 2020 T.Y. LIN INTERNATIONAL JV | 345 CALIFORNIA ST, SUITE 2300 SAN FRANCISCO, CALIFORNIA, USA UNITED STATES Department of Finance 59,098,082.06 59,098,082.06
OUTPUT 3:TRANSPORTATION CONSULTING FIRM TO SUPPORT DOTR WITH PROJECT PREPARATION ACTIVITIES. LINK WITH PCSS NO. 0002 Loan 3589 09 Nov 2020 OVE ARUP & PARTNERS HONG KONG LTD. | LEVEL 5, FESTIVAL WALK, 80 TAT CHEE KOWLOON TONG, KOWLOON, HONG KONG UNITED KINGDOM Department of Finance 9,610,000.00 9,610,000.00
CONSULTING SERVICES TO UNDERTAKE DED FOR 3 PRIORIT Y BRIDGES CROSSING PASIG-MARIKINA RIVER & MANGGAHA N FLOODWAY BRIDGES CONSTRUCTION PROJECT Loan 3589 23 Jul 2020 DASAN CONSULTANTS CO., LTD (JV) WITH KUNHWA | 15 SONG-RO, 30-GIL, SONGPA-GU, SEOUL 15800 KOREA, REPUBLIC OF Department of Finance 3,867,870.11 3,402,931.10
OUTPUT 2: WATER (FLOOD CONTROL) CONSULTING FIRM TO SUPPORT DPWH WITH PROJECT PREPARATION ACTIVITIES Loan 3589 30 Apr 2018 EGIS EAU JV W/ EGIS INTL, EGIS STRUCTURES, | 889, RUE DE LA VIELLE POSTE, 34965, MONTPELLIER CEDEX 2, FRANCE Department of Finance 31,360,000.00 28,250,000.00
OUTPUT 3:TRANSPORTATION CONSULTING FIRM TO SUPPORT DOTR WITH PROJECT PREPARATION ACTIVITIES Loan 3589 23 Apr 2018 OVE ARUP & PARTNERS HONG KONG LTD. | LEVEL 5, FESTIVAL WALK, 80 TAT CHEE AVE. KOWLOON TONG, KOWLOON, HONG KONG UNITED KINGDOM Department of Finance 35,500,000.00 25,557,112.00
OUTPUT 1: ROAD AND BRIDGE CONSULTANT FIRM TO SUPPORT DPWH WITH PROJECT PREPARATION ACTIVITIES Loan 3589 27 Mar 2018 OVE ARUP & PARTNERS HONG KONG LTD. | LEVEL 5, FESTIVAL WALK, 80 TAT CHEE AVE. KOWLOON TOON, KOWLOON, HK UNITED KINGDOM Department of Finance 47,540,000.00 23,000,000.00

Procurement Plan