(On-site evaluation: April 2006)

Ex-Post Monitoring for Completed ODA Loan Projects
Evaluator:

Miyoko Taniguchi

Project Name:

Republic of the Philippines: “Metro Manila Interchange Construction Projects (I) (II) (III)”(L/A No. PH-P102, PH-P116, PH-P165)

Loan Outline
Loan Amount/Disbursed Amount:

Loan Agreement:
Loan Completion:
Ex-Post Evaluation:
Executing Agency:

Total: 6,839 million yen/5,603 million yen
Phase 1: 2,304 million yen/2,276 million yen
Phase 2: 1,663 million yen/1,512 million yen
Phase 3: 2,872 million yen/1,815 million yen
Phase 1 – February 1990, Phase 2 – July 1991, Phase 3 – August 1995
Phase 1 – May 1998, Phase 2 – October 1998, Phase 3 – June 2000
FY 2001
Department of Public Works and Highways (DPWH), Republic of the Philippines

Project Objective
By converting intersections of circumferential roads and major radial roads into interchanges in the capital Manila, this project aims toattempt to handle increasing traffic volume and relieve congestion, and thereby contribute to improvements in the functioning of road traffic
in the metropolitan Manila.
Consultants: Katahira & Engineers Inc., Pacific Consultants International (Japan)
Contractors: J.H. Pahara Con (Philippines) and others
Item

At time of Ex-post Evaluation

At time of Ex-post Monitoring

1

Effectiveness &ImpactEffectivenessCompared to the time of ex-post evaluation, traffic
volume in the area of the Pasay-Ayala interchange isincreasing. However, travel time is shorter and average
travel speed has increased, so the project is contributing
to relieve congestion. At other interchanges(Nagtahan-Magsaysay, Shaw-Boni) traffic volume
decreased, travel time decreased, and average travel
speed increased. One can say that effectiveness has been
secured to a certain extent.

Phase 1, Phase 3(1) Traffic volume trend(a) EDSA (Circumferential Road 4) – Pasay, Ayala twolevel interchanges
As shown in Table 1 below, total volume of traffic inflow(annual average daily traffic volume (vehicles/day))exceeded forecasts at both locations. It can be said that the
project is effectively handling increasing traffic volume.

Table 1: EDSA–Pasay, EDSA–Ayala Interchanges
Volume of Total Traffic Inflow(Vehicles)

Phase 1, Phase 3(1) Traffic volume trend
Since the time of the ex-post evaluation, traffic
management work has been transferred from DPWH to theMetropolitan Manila Development Authority (MMDA),
and MMDA also holds the traffic volume data. However,part of the data was lost when authority was transferred, so
this survey was unable to obtain data on 2001-2003 traffic
volume from MMDA.
(a) EDSA (Circumferential Road 4) – Pasay – Ayala
two level interchanges
The traffic management system was changed in 2001 andunified into one traffic cycle system. Table 1 below shows
total volume of traffic inflow at both interchanges (annual
average daily traffic volume (vehicles/day)). Althoughtraffic volume in 2004 exceeded volume in 2000, traffic
congestion is relieved as shown below, so the project canbe said to have also effectively handled increased traffic
volume since 2000.
2

Location

2000

EDSA–Pasay
Interchange

Forecast

106,000

Actual135,322

EDSA–Ayala
Interchange

Forecast

88,000

Actual130,039

Source: Forecasts from JBIC appraisal documents, actual values from

Table 1: EDSA–Pasay, EDSA–Ayala Interchanges
Total Volume of Traffic Inflow(Vehicles)
Total Volume of
LocationYear
Traffic Inflow
2000
265,361(See the left table)
EDSA–Pasay–Ayala
Interchanges
2004
321,273
Source: 2000 actual values from DPWH, 2004 actual values from MMDA data

DPWH data(b) Nagtahan (Circumferential Road 2) – Magsaysay Threelevel interchange
Figure 1 below shows traffic volume from before project
implementation until the time of ex-post evaluation (mostrecent data is from 1999). Traffic volume before project
implementation is far exceeded post-implementation. Also,
the number of registered vehicles approximately doubled
through the 1990s in metropolitan Manila. The project iseffectively handling dramatic growth in traffic volume atthese crossing points.

Figure 1: Nagtahan – Magsaysay Interchange
Volume of Total Traffic Inflow (Vehicles/Day)(b) Nagtahan (Circumferential Road 2) – Magsaysay Threelevel interchange
The traffic volume of 57,126 vehicles (according to
MMDA data) at this location in 2005 (most recent data),
was far below the approximately 150,000 or more vehicles
shown in Figure 1 (page 4, left column) at the time of
ex-post evaluation. According to interviews at the MMDA
Planning Office, the main reason for reduced traffic
volume was vehicle users changing their means oftransport to Light Rail Transit (LRT), which began service
in that area. LRT line 2 (which began service in 2003) runs
along the Magsaysay interchange, and two facilities arelocated a few meters from the train stations. LRT line 2
had about 30,000 average daily users in 2004. According
to interviews at the National Center for Transportation
Studies of the University of the Philippines, other reasonsfor decreased traffic volume at that interchange included:i) introduction of traffic management schemes (one way
traffic, etc., ii) development of nearby cities outside
metropolitan Manila, iii) development of other major
3

circumferential roads such as Road C-3 (some vehicles use
Valenzuela Street, which was widened).

Number of vehicles
180,000
160,000

Project
complete 1992

Total traffic
inflow volume(No. of vehicles)

140,000
120,000
100,000

2010 traffic
volumeforecast

80,00060,00040,0002000 traffic
volumeforecast

20,000
1990

1993

1994

1995

1996

1997

1998

1999

Source: DPWH
Note: No data for 1991, 1992

(2) Relief of congestion• Travel time: According to interviews with road users, an
80% majority of people replied that travel time had
decreased.
• Waiting time: There was dramatic improvement at bothinterchanges, with the National Research Council’s
indicative criteria rising from “F” (60 or moreseconds/vehicle) to “B” (5.1 to 15 seconds/vehicle).

(2) Relief of congestion• Travel time: A survey was done in which users of the
Ayala–Pasay interchange road were interviewed (380people) at the time of this field survey. 68% of people
responded that travel time had decreased, and 18% that
there had been no change. On the other hand, in aninterview survey of users of the Nagtahan–Magsaysay
interchange road (120 people), all respondents indicatedthat travel time had decreased. However, this is not only
due to the project, but is also caused by an overall decreasein traffic volume.
• Average travel speed: Data on waiting times which was
obtained at the time of ex-post evaluation was not
obtainable this time, so a travel time survey was performed
for this survey. Comparing travel speed on the flyover ofthe Ayala-Pasay interchange before project implementation
with current levels, speed increased at peak times from 10
km/hour (from feasibility study data) to 15 km/hour.
4Averagepeak-time
travelspeed
atthe
Nagtahan–Magsaysay interchange was also compared withthat before project implementation. This had also increased
from 10 km/hour (from feasibility study data) to 30
km/hour. Major congestion was not observed outside ofpeak times at these locations. Thus it can be said that theseinterchanges are contributing to relief of congestion.
In this way, the project handled increased traffic volume inmetropolitan Manila. It was positioned as one of the
projects in an integrated traffic plan with the goal ofrelieving traffic congestion. It is thought to havecontributed to achieving that goal.

Phase 2
(1) Traffic volume trend(a) EDSA (Circumferential Road 4)–Shaw Boulevard, andBoni Avenue interchanges
Traffic volume trend from 1994 to 1999
• EDSA–Shaw interchange (flyover): Traffic volume isdecreasing on EDSA, and increasing on Shaw. Still, total
volume of traffic inflow is 354,405 vehicles/day.
(Confirmed 1999 data)

Phase 2
(1) Traffic volume trend(a) EDSA (Circumferential Road 4)–Shaw Boulevard, andBoni Avenue interchanges• EDSA–Shaw interchange (flyover) (completed in 1998):
Overall traffic volume was 354,405 vehicles/day shortly
after the interchange was completed in 1999. Volume
decreased to 156,014 in 2005. This is much lower than theforecast 433,318 vehicles/day (setting the 2005 forecast
value midway between the forecasts for 2000 and 2010)(see table 2). This is mainly because the volume of traffic
entering EDSA decreased. According to interviews at the
MMDA Planning Office and at the National Center forTransportation Studies of the University of the Philippines,
traffic volume decreased because MRT (Metro RailTransit) line 3 opened along EDSA in 1999, and many
vehicle users switched their means of transport. There wasan average of about 380,000 daily users in 2005. Also,5other causes mentioned were the development of
Circumferential Road 5 (C-5) which parallels EDSA, andincreased options for routes for people moving from
northern metropolitan Manila to its southern area, such as
the opening of Kalayaan Avenue from C-5 towards MakatiCity. Furthermore, in addition to the project, traffic
management also brought changes in traffic flow which
can be said to have contributed to distribution of traffic,
similar to in Phase 3.
Table 2: EDSA–Shaw Blvd. Total Volume of Traffic Inflow
Location
2005
EDSA-Shaw Blvd.

Forecast

433,318 vehicles

Actual

156,014 vehicles

Sources: Forecast from JBIC appraisal documents, actual from MMDA data

• EDSA–Boni Avenue crossing: Traffic volume isdecreasing on EDSA, and increasing on Boni Avenue by
the amount passing through the Boni Avenue underpass,which was opened to traffic. Still, total volume of traffic
inflow is 405,730 vehicles/day. (Confirmed 1997 data)• EDSA–Boni Avenue crossing: Traffic volume at the Boniinterchange underpass site decreased to a count of 22,168
vehicles/day at the time of this survey, compared to 91,790
vehicles/day in 1998. The survey technique applied was a
traditional traffic volume survey method (manual countmethod). Another reason may be that Boni interchange
It can be said that, “By completing the project, changes parallels Shaw interchange, so that traffic volume
arose in traffic flow, and the volume of traffic to EDSA decreased for the same reason that it decreased near Shaw
decreased, improving the situation.”interchange, as noted above.

(2) Relief of congestion(According to the “Impact Study on Transport Projects in
Metro Manila”) The average delay time at the
EDSA-Shaw crossing (seconds/vehicle) would have been
2.0 if there had been no project. It became 0.3 with the(2) Relief of congestion• Travel time: In the interview survey performed with road
users who utilize the Shaw interchange, an overall
majority of 67% replied that travel time had decreased,
and 25% said that there had been no change. On the other6project in place, so it can be said that traffic flow hand, in an interview survey of road users utilizing theimproved.
Boni interchange, 81% of respondents replied that travel
time had decreased. However, this is not only due to theproject, but can be said to have been also caused by adecrease in overall traffic volume, as described above.
• Average travel speed: According to the travel speed
survey which was carried out, average travel speed at peaktimes near Shaw interchange increased to 25km/hour,rising from 10km/hour before project implementation(according to feasibility study data). On the other hand, at
the Boni interchange site, the average travel speed from
Mandaluyong towards Shaw Boulevard increased to
20km/hour, rising from 10km/hour before project
implementation. Boni interchange is part of thecircumferential road which is 1km away from the Shawinterchange (flyover), so it can be said that the function ofboth interchanges is connected to the relief of congestion.

7

Impact(Overall impact of phases 1, 2, and 3)(1) Improvement of the functioning of city road traffic• In an interview survey (of 98 people), about 50%
replied that traffic flow, the “congestion situation,” etc.,
had improved.
• About 60% replied that the overall traffic situation had
improved (i.e. replied there was an orderly traffic flow
when asked “whether traffic flow was becoming
rectified”).
• About half of all responses can be thought to relate somepositive impact of the project for improvement of thetraffic situation.

(2) Environmental impact• According to a simulation in another survey, the “Impact
Study on Transport Projects in Metro Manila,” the project
resulted in smoother vehicle flow, reducing the discharge
rate of gas fumes (which vary with speed). This reduced
the volume of exhaust fumes emitted, which would
suppress the future advance of air pollution. This was incomparison to if the project had not been implemented.

(1) Improvement of the functioning of city road traffic• According to an interview survey of road users (of 380
people), 77.8% responded that there was improved traffic
flow which had, for example, an “effect on travel time.”• 97.1% of all responses related to a beneficial effect ofthe project for improvement of the traffic situation. Thosereasons (multiple responses) were: i) The project wasconnected to improvement of service of the traffic system(70.5%), ii) Contributed to economic development of theregion (35.5%), iii) Lessened negative impacts on theenvironment (17.4%).
• 89.2% of all responses were related to beneficial effectsof the project on traffic routes or behavior. Of these, 10.3%
responded that through this project, access to transport had
improved, and they had changed residence due toincreased employment opportunities. This trend wasespecially seen near Boni interchange.
(2) Environmental impact• According to the Department of Environment andNatural Resources’ quarterly air monitoring surveys(carried out at seven locations in metropolitan Manila
since the second half of the 1980s), the air pollution
situation is improving. This results from congestion relief
by interchanges, a reduced volume of gasoline pollutant
emissions, higher vehicle fuel efficiency, and so on.
• This survey used software developed by MMUTIS(Metro Manila Urban Transportation Integration Study), toperform an environmental simulation. The results of thestudy showed that the project resulted in smoother vehicle
8

flow, reducing the discharge rate of exhaust fumes (whichvary with speed). This reduced the volume of exhaust
fumes produced, and is therefore connected to limiting air
pollution. As noted above, the interview survey of road
users also had responses that air pollution impact was
reduced.
(3) Technology transfer• Advanced construction technology was applied, so it canbe said that there was a technology transfer effect for staffof the Philippine company in charge of construction work.

(3) Technology transfer
After this project was implemented, the Department of
Public Works and Highways used technology acquired inthis project when interchange projects were implemented
at EDSA–Quezon (flyover, underpass), C-5–Boni–Serrano(flyover, underpass), and C-5–Ortigas (flyover). Thus it isthought that there was a transfer effect.

Sustainability
Compared to the time of ex-post evaluation, no serious
worsening of the maintenance situation has appeared,
and the project continues to prove sustainable. On theother hand, budget allocations for maintenance offacilities are shrinking, so it could be said thatsustaining the maintenance situation into the future is aremaining issue.
(1) Technical capacity
The National Capital Region (NCR) District Officeparticipates in actual maintenance work. Also, theRegional Offices have secured several engineers andcontract workers, so serious staff shortages were notespecially evident. In addition, privatization ofmaintenance work is increasing.

(1) Technical capacity
Under Executive Order 366 of October 2004, a
rationalization plan associated with the promotion ofprivatization is in progress in all Philippine government
departments. DPWH is also subject to this plan. Regarding
the bureau which performs maintenance itself, five to six
engineer staff and contract laborers have been secured ateach Regional Office until now, so serious staff shortages
are not evident (however, drastic staff reductions are9planned through the rationalization plan which is to be
implemented in 2006). The number of contract laborers
participating in maintenance will decrease, but engineer
staff numbers will increase. This is to strengthen the ability
to supervise and inspect work contracted to privatecompanies, and raise the quality of maintenance bydecreasing the number of retained contract laborers(through privatization of maintenance), and increasing thenumber of staff engineers. Privatization will be promotedeven more through this rationalization. The Administrative& Manpower Management Service provides periodic
training for field engineers on maintenance (specifying
maintenance needs, formulating plans, etc.).
(2) Structural organization
The Bureau of Maintenance (BOM) handles planning andbudget related work. NCR participates in actual
maintenance related work. NCR has seven Regional
Offices.
•
Phases 1 & 3: North Metro Manila District
Engineering Office (NMED) is in charge of the
Nagtahan–Magsaysay crossing. The Second Metro
Manila District Engineering Office (SMED) is incharge of EDSA–Pasay–Ayala.
•Phase 2: First Metro Manila District Engineering
Office is in charge of both the EDSA–Shaw, and theBoni Avenue crossings.

(2) Structural organization• The following organizations currently participate inmaintenance work on interchanges: i) DPWH (Bureau of
Maintenance, DPWH/NCR District Offices, DPWH
Regional Offices), ii) MMDA (Traffic Operations Center,
Traffic Engineering Center, Planning Office), iii) Road
Board.
• The DPWH Bureau of Maintenance rates the roadsituation once every six months (previously once every
quarter), and sets the maintenance budget allocation foreach District Office. District Offices and Regional Officesof DPWH had carried out all maintenance of roadinterchanges, but most maintenance and traffic
management of roads (mainly national roads) in
metropolitan Manila was transferred to MMDA in 2002.
From that time onwards DPWH work was limited topreventative maintenance, such as small-scale repairs ofroad surfaces. MMDA carries out other periodic
10maintenance work on light signals, drainage, road surface
indicators, cleaning, etc. Large scale maintenance andrepair is often carried out through special projects, etc.
• Through the rationalization plan mentioned above, theplan was to eliminate the Bureau of Maintenance of
DPWH, but part had already been transferred toIntegrative Planning Service, and the 158 regular staff
were to be reduced to 89 people this year (2006). The plan
is to reduce by half the number of maintenance group staff
in each District Office.
(3) Financial status• In 2000, Republic Act Number 8794 introduced a Motor
Vehicle User’s Charge1 as a source of special funds formaintenance. This tax is collected every year by the Land
Transportation Office, then approved by the Road Board,and disbursed via the government’s Department of Budget
Table 2: Actual Maintenance Expenses of NCR(Unit: Million pesos) and Management to the DPWH for operation andmaintenance expenses for national roads 2 . Initially, theYear1995 1996 1997 1998 1999 2000
maintenance budget was to be composed of this tax
Maintenance157.8 162.7 171.7 149.8 164.7 179.9
expensecollection added to the General Fund. But, actually, the• Regarding maintenance expenses, fiscal year budgets are budget allocation was cut from the General Fund, and only
generally being allocated as initially planned, and large funds collected by this tax are allocated for maintenance.
delays are not seen in implementing the budgets.
Thus it cannot be said that the budget for maintenanceexpenses is sufficient.
• Of the 2005 DPWH overall maintenance budget (about
5.6 billion pesos), 40% was for regular maintenance suchas simple road surface repairs, and 60% was allocated toperiodic maintenance, such as large budget rehabilitations.
(3) Financial status• The following table shows the regular maintenanceportion of maintenance expenses from 1996 to 2000 (timeof the ex-post evaluation).

1
Motor Vehicles Users Charge: In the 2005 budget, 83% was allocated to the Special Road Support Fund (for national roads), 5% to the Special Local Road Fund, 8% to the Special Vehicle Pollution Control Fund (toreduce air pollution), 4% to the Special Road Safety Fund (for traffic safety). Three funds were allocated to DPWH, and pollution control to the Department of Transportation and Communications.
2
Historically, operation and maintenance expenses were provided for from the General Fund based on the General Appropriations Act, which is deliberated and renewed in Congress each year.

11• The regular maintenance expenses of NCR from 2001 to
2005 are as shown below. As noted above, overall
maintenance expenses show a decreasing trend because
expenditures for road maintenance expenses were cut fromthe General Fund.
Table 3: NCR Actual Maintenance Expenses(Unit: Million pesos)(4) Operation and maintenance (Situation of outputs andtheir operation and maintenance)• Part is performed under contracts signed with privatecompanies (contractor system), and part is done by NCR
itself (direct management system). Private companies arein charge of 70% overall, and NCR Regional Offices are in
charge of the remaining 30% of maintenance.
• Under the initiative of DPWH, the Bureau of
Maintenance monitors the situation of operation andmaintenance. The table below shows the maintenancesituation of roads and bridges.

Table 3: Situation of Roads and Bridges Under NCR Jurisdiction

Year

2001

2002

2003

2004

2005

Maintenanceexpenses

202.9

180.1

171.7

124.8

104.6

(4) Operation and maintenance (Situation of outputs andtheir operation and maintenance)• Same as at the time of ex-post evaluation; the ratio of thecontractor system to direct management system is 70:30. It
was confirmed that the plan is to raise the contractor
system to 90% in the future.
• Also the same as at the time of ex-post evaluation,
regarding monitoring by the Bureau of Maintenance(BOM), the maintenance situation of roads and bridges
was checked, as shown in the following table. According
to this survey, the maintenance situation has been goodsince FY20013. On the other hand, as described above,
maintenance expenses are decreasing, so the “good” ratio
is showing a declining trend.
Table 4: Situation of Roads and Bridges Under NCR Jurisdiction

Year
Good

1996
66.1%

1997
69.2%

1998
48.3%

1999
56.5%

2000
77.0%

Year
Good

2001
95.0%

2002
95.2%

2003
92.8%

2004
N/A

2005
73.9%

12

Fair
Poor

26.2%
0.8%

26.8%
1.2%

45.4%
36.3%
3.8%
1.5%
Source: DPWH

16.5%
0.4%
BOM data• “Good” roads and bridges increased in 2000. Also, aroads and bridges database is being created and updated
through World Bank aid, and great efforts are being madein maintenance.

Lessons Learned,
Recommendations,
Information Resources
and Monitoring
Methods(1) Follow up on
lessons learned andrecommendations madein the ex-post
evaluation report or inlater evaluations(2) Proposals forsecuring sustainability,
and instructions given
at time of ex-postmonitoring

Fair
Poor

5.0%
0.01%

5.0%
0.0%

7.2%
N/A
0.0%
N/A
Source: DPWH

24.4%
1.7%
BOM data• In February 2006, DPWH surveyed the situation of
structures including interchanges. The survey results show
damage levels4(above): Magsaysay flyover was 30, EDSA
Shaw flyover was 49, EDSA Boni underpass was 40,
EDSA Ayala underpass was 43. Thus, serious damage was
not found.
Restructuring of operation and maintenance structure,
as a result of implementation of rationalization plan as
indicated above, may affect the sustainability of the
project in the future. Maintenance work should be done
based on secure budgets, and some kind of
improvement plan should be considered.

(1) There were no lessons learned or recommendations at (1) None in particular.
the time of ex-post evaluation.

(2) Proposals for securing sustainability• Regarding road maintenance: while privatization
proceeds on the one hand, budget allocations formaintenance are shrinking. As was also indicated from theroad user interview survey, there is insufficient roadmaintenance. Furthermore, the departments in charge arebeing reorganized in the rationalization plan, so the impact
of structure changes is also a concern. To secure13sustainability, it is necessary to ensure a budget for regular
maintenance, and that both MMDA and DPWH carry out
effective maintenance.

14