Philippines - Fourth Highway Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 8053 PROJECT COMPLETION REPORT PHILIPPINES FOURTH HIGHWAY PROJECT (LOAN 1661-PH) SEPTEMBER 7, 1989 Infrastructure Operations Division Country Department II Asia Regional Office This document has a restricted distribution and ma.y be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  *. S COUaR nXCWNGR NTE-S Name of Currency (Abbreviation) PESO (P) Appraisal Year Average (1979): Exchange Rate US$1 - 7.40 Intervening Year Average (1980-87) Exchange Rate US$1 - 14.86 Completion Year Average (Jan. 1988) Exchange Rate US$1 - 20.85 AORONYMS ClAP - Construction Industry Authority of the Philippines DPWH - Department of Public Works and Highways MPH - Ministry of Public Highways MPWH - Ministry of Public Works and Highways HLGCO - Ministry of Land Government and Community Development MOT - Ministry of Transport MPWTC - Ministry of Public Works, Transportation and Communication PI) Presidential Decree SAP - Special Action Program FISCAL YEAR OF BORROWER January 1 - December 31  vo omnIL r woNY THE WORLD BANK Washmton. D.C. 20433 U.S.A. @si DV@tEVQ6F OpliaSaW 0vmaaS-wwa1 September 7, 1989 MEHORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECTs Project Completion Report on Philippines Fourth HinhWaY Pro1ect (Loan 1661-PH) Attached, for information, io a copy of a report entitled ft?roject Completion Report on Philippines - Fourth Highway Project (Loan 1661--PH)" prepared by the Asia Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attacbment This document ha a ested dlsrbuion and may be Wed by recpiefW Only in 21W PufOMancO o oftirofiiW duties. It conwato may not otbemise be disied withot Word Dank auodoatls  FOR OFFICIAL USE ONLY I r~WI Zsn nA PlOJT (LO 1661-PH Table of Contents ) ~~~~~~~~~~~~~~~~~~~~Pagg No. PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BASIC DATA SHEET .ii EVALUATION SUMMARY . . . . . . . . . . . . . . . . . . . . . . . iv 1. PROJECT BACKGROUND. . . . . . 1 2. PROJECT FORMUIATION. 2 Project Identification. 2 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Description . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Project Appraisal and Loan ProcessLng ... . . . . . . . . . . 3 3. PROJECT IMPLEMENTATION .... . . . . . . . . . . . . . . . . 4 Revisions to the Project . . . . . . . . . . . . . . . . . . . 4 Overview of Implementation . . . . . . . . . . . . . . . . . . 4 Project Progress by Component . . . . . . . . . . . . . . . . . 5 Project Costs and Financing . . . . . . . .. . . . . . . . . . . 8 Loan Disbursement . . . . . . . . . . . . . ......... . 9 Compliance with Loan Covenants . . . . . . ......... . 9 4. INSTITUTIONAL PERFORMANCE . . . . . . . . . . . . . . . . . . . 9 The Ministry of Public Highways . . . . . . . . . . . . . . . . 9 The Role of the Bank . . . . . . . . . . . ......... . GO 5. ECONOMIC RE-EVALUATION .11 National Roads . . . . . . . . . . . . . . . . . . . . . . . . 11 Feeder Roads . . . . . . . . . . . . . . . . . . . . . . . . . 12 6. CONCLUSIONS .12 TABLES 1. Actual and Expected Project Implementation . . . . . . . . . . 13 2. Actual and Estimated Project Costs . . . . . . . . . . . . . . . . 16 3. Estimated and Actual Accumulated Disbursement . . . . . . . 17 4. Compliance with Loan Covenants . . . . . ........ . , 18 5. National Roads: Present and Projected Traffic . . . . . . . . . . 21 6. National Roacs: Actual and Estimated Rates of Return . . . . . 22 7. National Roads: Vehicle Operating Costs . , * . . . . . . . . 23 8. Feeder Roads: Present and Projected Traffic . . . ,. *. . . . . . 34 9. Feeder Roads: Actual and Estimated Rates of Return . . . . . . . 35 lO.Feeder Roads: Vehicle Operating Costs . *. . . . . . , , . . . 36 MAPS IBRD 12320R3 and IBRD 21861 This document has a restricted distribution and may be used by recipients only in the performnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  PHILIPPINES FOURTH HIGHWAY PROJECT (LN. 1661-PH) PROJECT COMPLETION REPORT PREFACE This is the Project Completion Report (PCR) for the Fourth Highway Project, for which Loan 1661-PH was approved on March 6, 1979 for the sum of US$100.0 million. Loan closing was originally scheduled for December 31, 1983, but was extended to June 30, 1987. An amount of US$0.4 million was cancelled and the last disbursement took place on January 21, 1988. The PCR was prepared by the Infrastructure Operations Division, Country Department II, of the Asia Regional Office and is bused on a draft report prepared by the Department of Public Works and Highways; the Staff Appraisal Report; the Loan Agreement; supervision reports; correspondence between the Bank and the Borrower; and internal Bank memoranda. This PCR was read by the Operations Evaluation Department (OED). The draft PCR was sent to the Borrower on July 3, 1989, for comments by August 21, 1989, but none were received.  - ii - PHILIPPINES FOURTH HIGHWAY PROJECT (LN 1661-PH) PROJECT COMPLETION REPORT RASIC DATA S KE PROJECT DATA Appraisal Actual Estimte Total Project Cost (US$ Million) 205.0 193.7 Cost Underrun (%) 5 5Z Loan Amount (US$ Million) 100.0 99.6 Disbursed - 99.6 Cancelled .4 Repaid to _ Outstanding to - - Date of Physical Completion 12/31/82 12/31/87 /a Proportion Completed by Above Date (%) 100.0 Proportion of Time Overrun (%) 73.7 Economic Rate of Return (%) 25% 20S /b Financial Performance Satisfactory Satisfactory Institutional Performance Satisfactory Satisfactory OTHER PROJECT DATA Original Plan Revised Actual First Mention in Files or Timetable - - 10/18/74 Government's Application Negotiations 01/22/79 Board Approval 03/06/79 Loan Agreement Date 03/09/79 Effective Date 06/12/79 07/15/79 06/15/79 Closing Date 12/31/83 06/30/85 06/30/86 06/30/87 Borrower Republic of the Philippines Executing Agency Department of Public Works & Highways Fiscal Year of Borrower January 1 - December 31 Follow-on Project Name Rural Roads I Loan Number Loan 1860-PH Amount (US$ Million) US$60.0 million Loan Agreement Date June 13,1980 (sff Boke Pupprisll .1 .4 .16.0 - - - - - - - - - - 29.6 Apprnioo-I - - - 8.8 29.8 - - - - - - - - - 2.1 Nfetimtl - - - 10.8 - - - - - - - - - 16.8 Supervision - - - .2 9.1 17.8 12.0 0.9 18.8 6.6 6.0 2.8 8.2 79.7 other - - .2 .9 .1 - 0.0 - - - - - - 1.1 TOTaL .1 .4 .1 5.3 n1.0 4.1 0.3 17.5 0.0 0.0 10.0 6.6 0.0 3.6 8.3 31.2  - iii - MISSION DATA No. of No. of Man- Date of Mission Sent by TOR Month/Yr Weeks People weeks Report