Mid-Term Review

JBIC ODA Loan project Mid-Term Review 2006

Evaluator: Asahi Ltd. (Teruo Kawakami)Time of Mid-Term Review Field Survey: January 2007
Project Title: The Republic of the Philippines “Urgent Bridges Construction Project for Rural Development” (PH-P231)[Loan Outline]
Loan Amount/Contract Approved Amount/Disbursed Amount: 18,488 million yen/7,433million yen/1,116 million yen (As of the end of September 2006)
Loan Agreement: March 2002 (5 years after L/A signing)
Original Project Completion Date: July 2007
Revised Project Completion Date: July 2009
Loan Expiry Date: September 2009
Executing Agency: Department of Public Works and Highways (DPWH)
Operation and Maintenance Agency: Department of Public Works and Highways (DPWH)
Selection Criteria for Mid-Term Review: Special Yen Loan
[Project Objective]
The objective of this project is to replace or construct a total of 201 bridges on national roads in major local cities all over the country with the aim of ensuring safe andefficient distribution, thereby supporting the development of regional economies.
Consultant: Katahira & Engineering International (Japan)
Contractor: Package III: JV of Toyo Construction Co., Ltd. (Japan) and Tobishima Corporation (Japan)1Mid-Term Review[Mid-Term Review Result]
Item
Relevance

Ex-ante Evaluation (at the time of appraisal)(March 2002)(1) National policy level· In the Medium-Term Development Plan (2001-2004), one of the
major objectives of the development of the transport sector was to“support the social development policy of the Philippines by providing
safe and reliable transportation service”. In order to achieve thisobjective, a goal was set to increase the ratio of permanent bridges toall bridges on national roads to 95% by 2004 (the ratio was 89% as of2000).

Result of mid-term review and ex-post evaluation results asestimated at time of mid-term review(1) National policy level· In the Medium-Term Development Plan (2004-2010), connecting
each region with the transport and communication networks that help
develop new economic opportunities, reduce the transportation costand improve access to social services was mentioned as an issue to be
tackled for development. In the Medium-Term Investment Plan
(2006-2010), the infrastructure improvement plan occupied 59% of
the investment plan and 52% of the infrastructure improvement planis occupied by the transport sector, of which 43% is allocated to roads
and bridges. These facts indicate that the development of the transport
sector, particularly improvement of roads and bridges, remains animportant issue in this country.

(2) Policy level· In the medium-term infrastructure plan for road and water control
projects by DPWH, 66% of the total amount of the infrastructure
improvement plan for 2001-2004 was allocated to roads and bridges.

(2) Policy level· In the medium-term infrastructure plan for road and water control
projects by DPWH, 82% of the total amount of the infrastructure
improvement plan for the period after 2005 is allocated to roads andbridges.

· According to the national bridge survey conducted by DPWH in 1994,
302 bridges were seriously damaged and 1,717 bridges were
emergency bridges. Based on this result, the request for urgent
construction of these bridges was made to JBIC.

(3) Planning level· There remained many dilapidated simple emergency bridges andpermanent bridges were also aging, breaking down, and deteriorating
2· DPWH is currently working on a new road and bridge planning
process. Under the new planning process, asset conservation is
integrated into network development, based on which designation,
identification, priority order determination, and cost estimation ofeach road/bridge project are planned to be conducted within theframework of the annual budget.
(3) Planning level· Of the initially selected 201 bridges, 42 bridges were excludedMid-Term Review

Effectiveness(Impact)

due to factors such as lack of adequate maintenance, increase inoverloaded vehicles and traffic volume and the effects of natural
disasters. With disasters like frequent typhoons prevalent, the road
network was also in danger of severance as bridges were washed away
or collapsed. Therefore, in order to establish a safe and efficientregional road network, replacement of emergency bridges withpermanent ones in the road network was necessary along with thepaving of unpaved roads. The bridges to be covered by the project wereselected from the list of 887 bridges submitted by DPWH using theflow chart to determine whether each bridge meets the requirements
such as needs, benefits, technology and the present state. As a result,
201 bridges were selected as appropriate to be covered by the project.

because of overlapping with other projects and 2 bridges were
excluded because of substantial increase in the cost. Instead, 38
bridges were added to make the total of bridges covered by thisproject 195, at present. The newly added 38 bridges were selected by
DPWH from those meeting the requirements of having no public
safety problem, being located on the national road, not overlappingwith other projects, having a traffic volume of over 50 vehicles perday, within 1 hour of the nearest city, having an access road of at least
6 meters, and in good condition. In this way, relevance of the projectis maintained. Although EIRR has not been calculated for these 38
bridges, they all satisfy the screening criteria for the bridges to becovered by this project, according to the executing agency that
selected them (DPWH-PMO-F/S).

(1) Operation and Effect Indicators
1. Quantitative effects
Sample bridges to be monitored (10 bridges) were selected as shown
below taking into account the current type of bridge, bridge length,
geographical distribution and data availability. According to the letterfrom JBIC addressed to DPWH dated February 6, 2002 (proposal on
the bridges to be monitored), EIRRs for these 10 bridges were all over
15%.

(1) Operation and Effect Indicators
1. Quantitative effects(1) Monitoring Indicators
Of the 10 bridges that were selected for monitoring at the time ofappraisal, 2 bridges were excluded from the project as a result ofreview: Laoang (VIII) (due to more than expected increase in cost)and Embarcadero (VI) (due to overlapping with other project). These2 bridges need to be excluded from the list of bridges for monitoring.
The Pantal Bridge is planned to be constructed in an urban area aspart of the new bypass road now under construction as mentioned in 2
below and therefore, in light of the purpose of constructing thisbridge, the monitoring indicators shown on the left are consideredinappropriate in measuring the effects. (For those bridges to be newly
constructed including this bridge, it is advisable to include the timeand cost saving resulting from congestion reduction as monitoring
indicators.) For the evaluation of achievement levels of themonitoring indicators agreed at the time of appraisal, a system for

Indicator

Bridge（Region）

Traffic
volume(vehicles/day)Bangcag(CAR)
Amburayan(I)Pantal(I)Quirino(I)At
present(2001)
1,172
6,443
NA
6,443

Target(7 years after
completion)
2,170
11,932
NA
11,9323

Mid-Term Review

Periodoftraffic
interruption
due to bridge
collapse(days)

Detouring
distanceinthe event ofbridgedestruction(km)

Reduction in
traveling
distance to a
local city inthe event of

Mabbang2(II)Payapa(IV-A)
Rangas3(V)Embarcadero(VI)Laoang(VIII)
Malitbog(X)Bangcag(CAR)
Amburayan(I)Pantal(I)Quirino(I)
Mabbang2(II)Payapa(IV-A)
Rangas3(V)Embarcadero(VI)Lao-ang(VIII)
Malitbog(X)Bangcag(CAR)
Amburayan(I)Pantal(I)Quirino(I)
Mabbang2(II)Payapa(IV-A)
Rangas3(V)Embarcadero(VI)Lao-ang(VIII)
Malitbog(X)Bangcag(CAR)
Amburayan(I)Pantal(I)Quirino(I)
Mabbang2(II)

370
1,250
685
1,460
420
285
315
730
NA
730
30
158
397
332
730
60
84.5
NA
NA
NA
20.0
NA
15.0
13.5
NA
NA
NA
NA
NA
NA
NA

685
2,315
1,269
1,926
778
528
0
0
NA
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2.41
NA
NA
NA
0.57
4

measuring these indicators needs to be established. DPWH iscurrently working to enhance the project evaluation capability of theregional offices through the training. It is necessary to urge thePlanning Service, etc. to make it possible to measure the evaluation
indicators of this project by the time of ex-post evaluation.
(2) Traffic Volume
A field survey was conducted for the bridges of Amburayan andQuirino that are planned to be replaced. According to the measuringof one-way traffic volume per minute on the road between
Amburayan and Quirino that was conducted for three times between
3:00 p.m. and 4:00 p.m., 13 to 23 vehicles passed on the road per
minute. Based on this result, the one-way traffic volume per hour isestimated at 800 to 1,300 vehicles. Since the above survey was
conducted during busy hours, these data cannot be directly used toestimate the traffic volume per day. Still it seems that the traffic
volume near Amburayan and Quirino Bridges increased from that asof 2001 (Annual Average Daily Traffic (AADT): 6,443 vehicles).

Mid-Term Review

bridgedestruction(hours)Payapa(IV-A)
Rangas3(V)Embarcadero(VI)Lao-ang(VIII)
Malitbog(X)

NA
NA
NA
NA
NA

NA
0.43
0.39
NA
NA

2. Qualitative effects
1) Regional development
Through the improvement in convenience and safety of bridges, theproject would help promote the interchange of people and goods andachieve efficiency improvement, cost reduction and safety
improvement of transport, thereby contributing to the development ofregional economy. It was also expected to contribute to poverty
reduction in connection with the improvement of the majority of target
bridges.

2. Qualitative effects
1) Regional development
The expansion of bridge width and relaxation of vehicle weight limits
are expected to help increase the interchange of people and goods andthus promote regional development. The following data are only for
information because GRDP is available only for each Region and it isdifficult to explain the causal link between the implementation of the
project and GRDP.
Region
CAR
I
II
III
IV-A
IV-B
V
VI
VII
VIII
XI

5

GRDP (at 1985 prices) (million pesos)
2002
2005
25,23327,35831,20336,18322,31023,604
94,226
102,456
135,137
150,870
27,91533,73929,452
34,41973,04588,18772,49685,94423,373
26,85347,09555,845Mid-Term Review

XIII
14,33015,509(Source: 2006 Philippine Statistical Yearbook)2) Effect on poverty reduction
In the F/S, 105 bridges out of 201 target bridges were specified as“bridges for poverty reduction” where the rate of poverty among thebeneficiaries of the project exceeds that among the national population(estimated to be 24.9% as of 1997). However, as the bridge code usedin the list is not used for the data on the bridges covered by the project,
it is not known which bridges are the bridges for poverty reduction.

3) Environmental impact
With respect to the environmental impact of this project such as theimpact on soil, water quality, residence and houses, adequate measureswould be taken in the design and construction. Monitoring was planned
62) Effect on poverty reduction
Since no bridge has been completed, the actual effect is unknown. It
is expected that as the transport of agricultural products to the market
is facilitated and the transportation time for people and goods issubstantially reduced, economic conditions will improve and as aresult poverty will be reduced. The data for reference relating topoverty reduction are presented below (only for the provinces
relevant to Package III).
Province
Ratio of Poor Households (%)
1997
2000
Pangasinan
33.5
30.9
Cavite8.0
10.2
Batangas
25.6
25.9
Laguna12.3
8.6
Quezon36.5
34.1
Occ.Mindoro
34.0
41.4
Ori.Mindoro
34.4
43.1
Camarines S.
43.7
42.6
Sorsogon
42.1
41.4
Albay
43.2
39.6
Catanduanes
41.3
44.7
The
28.1
28.4
Philippines(The Philippine Countryside in Figures – 2002 Edition)3) Improvement of living conditions of local residents

Mid-Term Review

to be conducted by the consultant and necessary recommendation andmeasures would be carried out. Therefore, no problem was expected.

4) Land acquisition and resident relocation
Resident relocation was expected to be necessary (for 168 households
in total) for the work of some (29) bridges. Careful consideration would
be given in the detailed design so that resident relocation can be
avoided as far as possible. Should relocation be determined necessary,
while due consideration would be given so that residents would be
relocated within or to the same or adjacent Barangay as far as possible,
appropriate steps would be taken in accordance with relevant laws of
the Philippines and JBIC guidelines, and appropriate monetarycompensation would be provided based on market prices.

· The Pantal Bridge (380m long) which is currently underconstruction in Dagupan City is to form a part of theDawel-Pantal-Lucao Road (under construction), a bypass roadrunning through Dagupan City. Dagupan City is one of the core cities
in Pangasinan Province with a population of 130,000 and isdeveloping with fisheries such as aquaculture industry as the mainindustry. With the completion of the bypass road, vehicles heading for
Manila from Pangasinan Province can take a bypass through Dagupan
City and, consequently, saving of traveling time and cost as well as
reduction of traffic congestion in the city are expected.
4) Environmental impact
The ECCs for 26 bridges that had not been obtained at the time ofappraisal have been obtained. For the Pantal Bridge underconstruction at the time of mid-term review, noise control measures
were considered because the construction work is conducted near theurban district (commercial district). However, as the construction
work is not conducted after 7:00 p.m. at the request of residents, nocomplaint has been made by residents so far. Noise control measures
including construction hour restriction to daytime are necessary for
the Panamitan and Malamok Bridges that are to be constructed indensely built-up areas, though ECCs for these bridges areunnecessary because the total length is less than 50m.
5) Land acquisition and resident relocation
Land acquisition is necessary for 10 bridges in CP-I, 19 bridges in
CP-II, 27 bridges in CP-III, and 40 bridges in CP-IV. With respect to
CP-II and CP-IV, negotiation is under way for all bridges. As for
CP-III for which the project is being carried out, land acquisition has
been completed for one bridge (Pantal), the payment process is under
way for 18 bridges, and rights have been waived for 8 bridges. These

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Mid-Term Review

procedures are taking time because of the delay in the submission of
the certificates of ownership and the negotiation of the land price. In
most construction sites, those residents who need to be relocated own
the substitute land and there is no need to provide the substitute land
for relocation. In the case of the Pantal Bridge, however, thesubstitute land was provided to illegal occupants.
(2) Factors which may influence the effectiveness and impact:nothing in particular(3) Factors which may influence the sustainability· The new road and bridge planning process mentioned in the sectionof relevance is expected to have a positive impact by improving
efficiency of the operation and maintenance of bridges.
Information for reference[Efficiency](1) Outputs(1) Outputs· Replacement or construction of 201 bridges (to be implemented in 4
packages)· Consulting services: 1,165M/M in total

8(1) Outputs·Replacement or construction of 195 bridges (to be implemented in 4
packages)
At the stage of detailed design, 36 bridges on the list were changed
to other bridges due to overlapping with other projects or the
problem of public safety, 2 bridges in Northern Samar were changed
to one other bridge in the vicinity due to the substantial cost
increase, and 2 bridges in Cebu were changed to one other bridge
due to overlapping with other domestic projects. In addition, 4 otherbridges were excluded due to overlapping with other projects. In
total, the number of bridges decreased by 6. The number of bridges
to be repaired, replaced and constructed and the number of bridges
by span length are presented below.
Number of Bridges to be Repaired, Replaced and Constructed
Total
RepairReplacement Construction

Mid-Term Review

195

165

23

Number of Bridges by Span Length
Total
~20m
~40m ~100m
195

100

77

9

7

100m~
9

· With respect to the Amburayan Bridge (535m long) which is
subject to monitoring, the widening of the bridge is expected toprevent congestion caused by alternate passing of large-sized
vehicles. However, there is a movement by local residents
demanding preservation of the existing bridge, which was initiallyplanned to be removed. If the existing bridge is destroyed by flood,the new bridge could be damaged, reducing the effect of theconstruction of the bridge. Close attention should be paid to how theexecuting agency will deal with this issue.
(2) Project period
March 2002 – July 2007 (65 months)(2) Project period
March 2002 –July 2009 (89 months)(scheduled)(137% of the planned
period)Amount of consulting services necessary for completion as
estimated at the time of mid-term review: 1,862M/M (160% of theplanned amount)
The construction work for Package III started in April 2006 and thecontractors of Package I were selected in January 2007. As for
Package II (the construction period is scheduled for 24 months
starting June 2007) and Package IV (the construction period isscheduled for 24 months starting July 2007), they are in the9Mid-Term Review

procurement process. The project implementation is delayed because
tendering for the initially planned Packaged I-A failed and that theapproval for the procurement procedure for all ODA Loan projects
involving DPWH as the executing agency was suspended until the
VAT issue concerning the Second Magsaysay Bridge was settled.
(3) Project cost
21,750 million yen (ODA Loan portion: 18,488 million yen)
(2) Results of Special Yen
Loan Satisfaction Survey(3) Project cost
21,750 million yen (ODA Loan portion: 18,488 million yen)

A. Initial expectations and current opinions of the executing agency, etc. concerning the objectives of the special ODA loan (economic stimulus,
job creation, private sector investment environment, productivity improvement)
1. Initial expectations of the executing agency, etc.:· Project to promote economic growth in economically stagnant areas· High expectation as a project that provides funds for areas that have difficulty procuring funds from the private sector· Catalyst for growth in the areas that need government assistance and infrastructure substantially· Great expectation for transfer of outstanding, state-of-the-art technology from Japan (NEDA)
2. Current views of the executing agency, etc.: Views held during the project implementation
3. Views of the existing agency, etc. on STEP loan: High expectations for STEP loan, which places importance on support for infrastructure
projects
B. Views on the special ODA loan procedures (originating in Japan, simplifying the procedure, enhancing competitiveness, evaluation ofbidding companies)· Desire easing of the rigid application of the Japan origin provisions.
· Desire application of Japan’s origin standards to different projects with different degrees of rigidity. Also, with a view to transferring Japan’s
outstanding technologies to the borrowing countries, is it possible to develop a pilot project where corporate bidders are limited to JV of
Japanese companies and local companies?
· Desire expansion of the opportunity for the local companies/consultants to participate in as main contractors for the purpose of promoting
economic activities between donor countries and borrowing countries.
· Indirect costs of large Japanese companies are high. Formation of consortiums by medium-sized companies should be encouraged.
10Mid-Term Review· Leasing of inexpensive construction machines by local subcontractors should be used.
· Each Japanese company that participated in PQ and tendering has excellent technical and financial capacity satisfying the strict requirements ofprequalification.
C. Evaluation of the consultants and contractors by the executing agency
Highly satisfied with the contractors from which procurement has been completed to date
D. Evaluation of the executing agency by the consultants and contractors· No particular evaluation was made which is due to the special yen loan.
E. General overview of the special yen loan system· Tender failed when the bidding prices tendered exceeded the predetermined price. Thus, implementation of the project is significantly delayed.
In similar cases of the Special Yen Loan in the future, it seems necessary to improve procurement procedure by introducing the system of joint
contracting with local companies or relaxing the Japanese-origin requirement to allow flexible adjustment of tender prices.
Lessons Learned
Recommendations

andIndicators set for use attime of ex-post evaluation

Monitoring
The monitoring indicators agreed on with the executing agency at the time of appraisal were determined supposing that bridges would be
repaired or replaced. However, the Pantal Bridge which is included for monitoring is to be newly constructed and therefore is inappropriate forthe monitoring. Considering that the 7 bridges to be constructed including the Pantal Bridge are long span bridges and require huge costs, it isadvisable to conduct a survey of the present values and the target values of major operation and effect indicators such as the traveling time, cost,etc. for all those bridges, if possible.
Traffic volume (vehicles/day)
Traffic volume (vehicles/day)
Period of traffic interruption due to the bridge collapse (days)
Period of traffic interruption due to the bridge collapse (days)
Detouring distance in the event of bridge destruction (km)Detouring distance in the event of bridge destruction (km)Reduction in traveling distance to a local city in the event of bridge Reduction in traveling distance to a local city in the event of bridge
destruction (hours)
destruction (hours)

11