Philippines - Fourth Highway Project

Document of r X V The World Bank 0 - I FOR OFFICIAL USE ONLY Report No. P-2468-PH REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF THE PHILIPPINES FOR A FOURTH HIGHWAY PROJECT February 22, 1979 This document hus a resicted distribution and my be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Pesos (P) US$1.00 - P 7.40 P 1.00 - Us$0.135 WEIGHTS AND MEASURES Metric Systez Metric British/US equivalent 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 mile (mi) 1 square kilometer (sq km) 0.386 square mile (sq mi) 1 kilogram (kg) - 2.205 pounds (lb) 1 metric ton (m ton) - 1.1 US short tons (sh tons) - 0.98 British long tons (lg ton) ABBREVIATIONS AND ACRONYMS AADT Annual Average Daily Traffic BCM Bureau of Construction and Maintenance BOE Bureau of Equipment IATCTP Inter-Agency Technical Committee on Transport Planning MB Ministry of the Budget MLGCD Ministry of Local Government and Community Development MPH Ministry of Public Highways MPWTC Ministry of Public Works, Transportation and Communications NDP Net Domestic Product NEDA National Economic and Development Authority NTSS National Transport System Study PNR Philippine National Railways PPA Philippine Port Authority PPDW/MPH Planning and Project Development Office of the MPH PPDO/KPWTC Planning and Project Development Office of the MPWTC PTS Philippine Transport Survey SMQCS Soils and Materials Quality and Control Service UNDP United Nations Development Program USAID United States Agency for International Development VPD Vehicles Per Day FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY PHILIPPINES FOURTH HIGHWAY PROJECT Loan and Project Summary Borrower: Republic of the Philippines Amount: $100 million Terms: 20 years, including 5 years of grace, with interest at 7% per annum. Proiect Description: The project is designedi to (a) improve high priority major and connecting feeder roads; (b) upgrade maintenance and restoration procedures and operations of the Ministry of Public Highways (MPH); (c) train staff of the Ministries of Public Highways and Local Government and Community Development (MLGCD); and (d) strengthen planning, administrative, engineer- ing and maintenance capabilities of the provincial highway authorities. Construction and improvement of 345 km of national roads would result in a reduction in vehicle opera- ting costs. The six feeder roads totalling 63 km wrould help develop relatively isolated regions with dense populations (Negros and Cebu) and with potential for new rural settlements (Mindanao). The five-year road maintenance program is expected to yield considerable savings in vehicle operating costs for the entire network. The main risk in the proposed project concerns the quality of the implementation performance of MPH in carrying out the road restoration and maintenance programs. MPH's performance in this regard has improved significantly over the last year; the project provides for organizational changes, technical assistance and training and agreed action programs which should help to ensure that performance continues to improve. Estimated Cost: Local Foreign Total ------------ $ million ---------- Construction and Improvement of Roads National roads 20.0 24.1 44.1 Feeder roads 1.6 1.9 3.5 Road Maintenance and Restora- tion Program Construction of workshops 30.4 9.0 39.4 Procurement of equipment 2.4 24.9 27.3 Procurement of parts and components 0.4 4.1 4.5 Road restoration works 21.0 - 9.0 30.0 Weighbridges 0.2 0.6 0.8 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Local Foreign Total ------------ $ million Soils and materials testing equipment 0.0 0.4 0.4 Training 0.1 0.2 0.3 Consultancy services 3.7 6.6 10.3 Total Base Costs 79.7 80.8 160.5 Physical contingencies 8.0 8.1 16.1 Price con:ingencies 14.3 11.1 25.4 Land acquisition 3.0 0.0 3.,0 Total Project Costs 105.0 100.0 205.0 Financing Plan: Bank Government Total ---------- $ million