Philippines - Manila Urban Development Project

Docwumt of The World Bank FOR OFFMCUAL USE ONLY Report No. 6141 PROJECT COMPLETION REPORT PHILIPPINES MANILA URBAN DEVELOPMENT PROJECT (LOAN 1272T/1282-1-PH) April 11, 1986 Projects Department East Asia and Pacific Regional Office This document has a restricted disttibution 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.  ABBREVIATIONS BDC Bliss Development Corporation DBP Development Bank of the Philippines DPH Department of Public Highways DPWTC Department of Public Works, Transportation and Communications GOP Government of Philippines GSIS Government Service Insurance System HSDC Human Settlements Development Corporation HSRC Human Settlements Regulatory Commission MERALCO Manila Electrical Authority MHS Ministry of Human Settlements MMA Metropolitan Manila Area MMC Metropolitan Manila Commission MPWH Ministry of Public Works and Highways MWSS Metropolitan Waterworks and Sewerage System NCSO National Census and Statistical Office NEDA National Economic Development Authority NHA National Housing Authority NHC National Housing Corporation NHMFC National Home Mortgage Finance Corporation PNB Philippine National Bank SSS Social Security System TFDDO Tondo Foreshore Dagat-Dagatan Development Office WEIGHTS AND MEASURES 1 meter (m) = 39.37 inches (in) 1 square meter (sq m) = 10.8 square feet (st ft) 1 cubic meter (cu m) = 35.3 cubic feet (cu ft) 1 kilometer (km) = 0.62 mile (mi) 1 square kilometer (sq km) = 0.386 square mile (sq ml) 1 centimeter (cm) = 0.39 inch (in) 1 square centimeter (sq cm) = 0.155 square inch (sq in) 1 hectare (ha) = 10,000 square meters (sq m) or 2.47 acres (ac) 1 liter (1) = 1.057 quarts liquid or 0.25 US gal- lon (gal) or 0.908 quart dry (qt) 1 liter per capita per day (lpcd) = 0.26 US gallon per capita (gcd)  FOR OMCIAL USE ON*L THE WORLD BANK Washington. DC 20433 U.S A. OMe n DlvttewrelhfA Opuatu~ Ewakii April 11, 1986 MFMORANDUM TO THE EXECUTIVR DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Philippines Manila Urban Development Project (Loan 1272T/1282-1-PH) Attached, for information, is a copy of a report entitled "Pro.ject Completion Report on Manila Urban Development Project (Loan 1272T/1282-1-PH) prepared by the East Asia and Pacific Regional Office. Under the modified system for project performance auditing, further evaluation of this project by the Operations Evaluation Department has not been made. '~~~~~~~~~~ Attachment This document has a restricted distribution and may be used by recipients only in the performnace of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  FOR OFF!CIAL USE ONLY IHILIPPINES MANILA URBAN DEVELOPMENT PROJECT (Loan 1272T/1282-1-PH) * PROJECT COMPLETION REPORT Table of Contents Page No. PREFACE DATASHEET *.................................................. i BASIC DATA SHEET .......... HIGHLIGHTS . ......... iii I. INTRODUCTION A. Sectoral Context 1 B. Conditions Leading to the Project ...................... 2 c. Principal Report Sources 2 II. PROJECT IDENTIFICATION, PREPARATION AND APPRAISAL A. Origin and Background 2 B. Preparation and Appraisal 4 C. Project Objectives 4 D. Project Description 5 III. MAJOR RESULTSC 7............... 7 IV. PROJECT IMPLEMENTATION AND COST A. Start-Up 14 B. Implementation Schedule 14 C. Costs 18 D. Disbursements 20 V. FINANCIAL ASPECTS A. Development Ctsts 20 B. Sale Prices/Affordabilityc..... 23 C. Cost A loain26 D. Tenure, Sales and Colllections... 26 E. Infrastructure Turnover and Maintenance**#*************** 29 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 - Page No. VI. INSTITUTIONAL PERFORMANCE AND DEVELOPMENT A. National Housing Authority (NHA) ........................ 29 B. Ministry of Public Works and Highways (MPWH) ............. 34 C. Metropolitan Waterworks and Sewerage System (MWSS) ...... 34 D. The Role of TondoCommunity.............................. 35 E. Performance of Contractors and Consultants............... 36 F. Performance of the Bank ............... ........... . 36 VII. ECONOMIC RE-EVALUATION .............. 37 VIII. CONCLUSIONS A. Achievement of Objectives.......................,........ 39 B. Loan Covenants................... ................... ..... 40 C* Lessons41.......,.. 41 ANNEXES A. Principal Report Sources.. ..................... ........ .. 46 B. Comparison of Appraisal and Current Project Costs........ 48 C. Schedule of Disbursements ......... * * * .......... . 51 D. Compliance with Loan Covenants ........................... 52 E. Traffic Management Component............................. 53 F. Computerized Traffic Signals in Bangkok and Manilao....... 56 Go Studies 56 H. Housing Agencies in the Philippines................... .. 57 I. NHA Organization 1975-1980 .. ..... 59 J. Development Cost/Monthly Charge .. . ...... .6......2......* 62 K. Cost Allocation. ................. .. . .. ..... 64 L. Turnover (Resales) Among Tondo Residents................. 67 M. Borrower's Cmet .............................. 69 FIGURES Figure 1 - Implementation Schedule - Expected and Actual ..... 15 Figure 2 - Disbursement Profile.............................. 21  PHILIPPINES MANILA URBAN DEVELOPMENT PROJECT (Loan 1272T/l2a2--7Z) PROJECT COMPLETION REPORT Preface This report presents the results of a review of the Manila Urban Development Project which was implemented pursuant to a Loan of US$32.0 mil- lion (including a US$10.0 million Third Window Intermediate Term Loan) to the Government of the Republic of the Philippines. The Loan covered the estimated foreign exchange costs of the project and was in part onlent to executing agencies on the same terms as the Bank Loan and in part passed on as equity contributions. The balance of the project costs (US$33.03 million estimated at appraisal) was to be provided by the National Housing Authority (NHA) (US$19.17 million), by the Metropolitan Water Works and Sewerage System (MWSS) (US$0.26) and by Government (US$13.6 million). The Loan was approved on May 27, 1976, and became effective on December 9, 1976, five months later. The original closing date of September 30, 1981 was extended to September 30, 1983. Further extension to December 31, 1985 was required after a supplemental loan of US$10.5 million, including the capitalized front-end fee of $26,185, was made in March 1984, (under the Bank's Program of Special Assistance to Member Countries 1983-84) to help finance cost overruns for the major roads and bridges component. At the time of the preparation of the Project Completion Report (PCR), all project components were complete except for the major roads and bridges component which was delayed because of right-of-way and foundation problems. These problems have been resolved and construction is being carried out satisfactorily. Savings are expected due to two devaluations which occurred after approval of the Supplemental Loan. Attached is the PCR prepared by the Urban and Water Supply Division of the East Asia and Pacific Regional Projects Department (AEPUW). The PCR is based on the Bank's files and information supplied by the implementing agen- cies, by consultants and by a project completion report prepared by the National Housing Authority, the Ministry of Public Works and Highways (MPWH) and the Traffic Engineering and Management (TEAM) Office. In accordance with the revised project performance reporting pro- cedures this report has been read in the Operations Evaluation Department (OED) but the project was not audited by OED staff. The draft Completion Report was sent to the Borrower for comments. Comments received have been reflected (where appropriate) in the text or footnoted.  - U1 - PIMJC7 CO)LtflO8 RIPDl? S51C DAtA SNtt Ptl.v6trOs - 2an.lp Urban ftvlo~nt Pro1ct (Loan 1272-t1/122-1-PR) Aprtatial Acttul oM *gmttion ter nt *0tt4t. total Project cost (USS stilta) 60.0 91.8 cost oUftrOm (U)33 LoOv/C?tdtt inont (C ooltilton' O. Sapp1rnaternto" *aa Datellae4 . . dx C anc tlad to Ibutdtwo to atenoao Satet cofatorn _ U7 U** S prrotttan of Tie Ow rru (S)-75 T ) teooat Otto d Won 0)2- tFntttattoal P.rt*tu& S4tt2ytoto" physted/S9tz tapct Uttafteton CcSln __EA7v __ s L ni fll fl n17 n78 n7z7 n8D rTl F"2 F3 W- tz85 Apptatal *stl nts (S$ sUttion) 8.25 ___ 2 1 .00 (31.00) t.o3220 I14 Cc-al (USt dlilton) + o .I 9 . 3 13 69 + ) -23 It 24 a 3:.36-