The World Bank Report No: ISR13919 Implementation Status & Results Philippines National Roads Improvement and Management (APL) Phase 2 (P079935) Public Disclosure Copy Operation Name: National Roads Improvement and Management (APL) Phase Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 29-Aug-2014 2 (P079935) Country: Philippines Approval FY: 2008 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Department of Public Works and Highways Key Dates Board Approval Date 13-May-2008 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 31-Oct-2011 Last Archived ISR Date 29-Oct-2013 Effectiveness Date 16-Apr-2009 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 23-Dec-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Program goal is the establishment of road management arrangements which ensure the upgrading and preservation of the National Road System (NRS) in an environmentally, socially and financially sustainable manner. The development objective for Phase 2 is: Improved operation, organizational effectiveness and fiduciary control in the management and financing of the national road system, to enhance road user satisfaction in the project areas and efficiency and integrity in the use of financial resources. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost A.1 National Road Improvement 238.50 A.2 Road Asset Preservation 280.80 A.3 Maintenance Engineering Services 2.80 Public Disclosure Copy B.1 Optimization of Business Process improvements 47.10 B.2 Corporate Effectiveness and Integrity 7.50 B.3 Strategic Road Sector Reform 1.20 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Page 1 of 14 The World Bank Report No: ISR13919 Implementation Status Overview Overall project implementation is satisfactory: (i) all the 10 road improvement contracts are substantially complete; (ii) all the four (4) Long Term Performance Based Maintenance contracts are under implementation and progressing well; (iii) Year 1 Preventive Maintenance Program have been completed. Under Year 2 Program, 3 contract packages have been completed and 6 are under implementation. Detailed Engineering Designs and preparation of bidding documents for Year 3 (16 contracts) and Year 4 (18 contracts) are Public Disclosure Copy underway DPWH will award all the Year 3 by September 2014 and Year 4 contracts by November 2014. The implementation of these contracts would slip beyond the current closing date of December 2014. All the ICD initiatives are progressing well. The mission noticed, during various presentations made by DPWH, significant progress on many areas including Electronic Project Life Cycle, New Government Accounting System, and Executive Information System, Bridge Management System, updating of road inventory data-base, design standards and procedures both for roads and bridges, road safety, and improvement of planning processes. The component when fully implemented and institutionalized will lead to many major reforms in DPWH. Locations Country First Administrative Division Location Planned Actual Philippines Western Visayas Zarraga Philippines Ilocos Villasis Philippines Mimaropa Victoria Philippines Western Visayas Valladolid Philippines Calabarzon Valenzuela Philippines Not Entered Tiaong Philippines Western Visayas Tangalan Philippines Autonomous Region in Muslim Mindanao Sultan Kudarat Philippines Davao Sulop Philippines Mimaropa Socorro Philippines Ilocos Sison Philippines Western Visayas Sigma Public Disclosure Copy Philippines Not Entered Sariaya Philippines Western Visayas Sapi-an Philippines Cagayan Valley Santa Teresita Philippines Davao Santa Cruz Philippines Central Luzon San Simon Philippines Central Luzon San Manuel Page 2 of 14 The World Bank Report No: ISR13919 Country First Administrative Division Location Planned Actual Philippines Western Visayas San Enrique Public Disclosure Copy Philippines Mimaropa Roxas Philippines Ilocos Rosario Philippines Ilocos Rosales Philippines Calabarzon Quezon City Philippines Northern Mindanao Quezon Philippines Western Visayas Pulupandan Philippines Ilocos Pozorrubio Philippines Western Visayas Pototan Philippines Not Entered Plaridel Philippines Soccsksargen Pikit Philippines Soccsksargen Pigcawayan Philippines Western Visayas Passi Philippines Not Entered Pasig Philippines Autonomous Region in Muslim Mindanao Parang Philippines Davao Pantukan Philippines Central Luzon Paniqui Philippines Calabarzon Pagsanjan Public Disclosure Copy Philippines Not Entered Pagbilao Philippines Autonomous Region in Muslim Mindanao Pagalungan Philippines Davao Padada Philippines Soccsksargen Province of North Cotabato Philippines Western Visayas Nabas Philippines Central Luzon Moncada Philippines Soccsksargen "M""lang Page 3 of 14 The World Bank Report No: ISR13919 Philippines Soccsksargen Midsayap Philippines Davao Matanao Public Disclosure Copy Philippines Soccsksargen Matalam Philippines Central Luzon Marilao Philippines Not Entered Marikina City Philippines Mimaropa Mansalay Philippines Western Visayas Mambusao Philippines Davao Malita Philippines Western Visayas Malinao Philippines Western Visayas Malay Philippines Autonomous Region in Muslim Mindanao Malabang Philippines Soccsksargen Makilala Philippines Western Visayas Makato Philippines Autonomous Region in Muslim Mindanao Province of Maguindanao Philippines Caraga Madrid Philippines Davao Maco Philippines Davao Mabini Philippines Central Luzon Mabalacat Philippines Davao Lupon Public Disclosure Copy Philippines Calabarzon Luisiana Philippines Not Entered Lucban Philippines Not Entered Lopez Philippines Soccsksargen Libungan Philippines Caraga Lanuza Philippines Davao Koronadal Page 4 of 14 The World Bank Report No: ISR13919 Philippines Western Visayas Kalibo (Provincial Capitol Site) Philippines Soccsksargen Kabacan Public Disclosure Copy Philippines Davao Jose Abad Santos Philippines Western Visayas Ivisan Philippines Western Visayas Ibajay Philippines Not Entered Gumaca Philippines Central Luzon Guiguinto Philippines Mimaropa Gloria Philippines Central Luzon Gerona Philippines Western Visayas Dumarao Philippines Western Visayas Duenas Philippines Western Visayas Dingle Philippines Western Visayas Dao Philippines Northern Mindanao Dancagan Philippines Western Visayas Cuartero Philippines Caraga Cortes Philippines Calabarzon Cavinti Philippines Caraga Carrascal Philippines Caraga Carmen Public Disclosure Copy Philippines Central Luzon Capas Philippines Caraga Cantilan Philippines Not Entered Candelaria Philippines Central Luzon Calumpit Philippines Not Entered Calauag Philippines Mimaropa Calapan Page 5 of 14 The World Bank Report No: ISR13919 Philippines Autonomous Region in Muslim Mindanao Calanogas Philippines Calabarzon Cainta Public Disclosure Copy Philippines Cagayan Valley Province of Cagayan Philippines Mimaropa Bongabong Philippines Central Luzon Bocaue Philippines Ilocos Binalonan Philippines Mimaropa Bansud Philippines Davao Bansalan Philippines Western Visayas Banga Philippines Western Visayas Banga Philippines Davao Banaybanay Philippines Central Luzon Bamban Philippines Western Visayas Balete Philippines Western Visayas Bago City Philippines Not Entered Atimonan Philippines Ilocos Aringay Philippines Central Luzon Apalit Philippines Calabarzon Antipolo Philippines Western Visayas Altavas Public Disclosure Copy Philippines Ilocos Agoo Philippines Davao Municipality of Don Marcelino Results Project Development Objective Indicators Page 6 of 14 The World Bank Report No: ISR13919 Indicator Name Core Unit of Measure Baseline Current End Target Indicator One: Administrative Efficiency - Text Value NCB goods: 12 months NCB: 5.33 mos (170 calendar NCB: 6 months Project delivery time reduced ICB: 15 months days) ICB: 12 months Public Disclosure Copy Consultant: 8 months Consultant: 9 months Date 18-Aug-2009 31-Mar-2014 31-Dec-2014 Comments Indicator Two: Sustainability of financing for Text Value >40% 60% >60% NRS asset management - Increased cost Date 30-Apr-2008 10-Oct-2013 31-Dec-2014 recovery from road users Comments The MVUC collected is being increased. The proposal for the increase has been endorsed by the Cabinet Economic Cluster and submitted to the President. The actual status will be reviewed during the next mission. Indicator Three: Value for money - Medium- Text Value Not available no data 5% reduction term average cost of preserving national paved Date 31-Dec-2014 roads reduced Comments Indicator Four: Road user Satisfaction with Text Value 59.5 % Actual status will be available >60% road condition of paved National Road System after the road user (NRS) satisfaction surveys planned in future but there is a perception that the road user satisfaction is increasing due to various measures such as allocation of funds by DPWH Public Disclosure Copy on the basis of the priorities established through the Pavement management System, and improved transparency in decision making. Date 18-Aug-2009 31-Mar-2014 31-Dec-2014 Comments The clients' perception has improved with the policies in DPWH. These include Page 7 of 14 The World Bank Report No: ISR13919 issuances of Department Orders (DOs) & Special Orders(SOs) and Memorandum: Public Disclosure Copy a) DO # 3 s. 2014- Reconstitution of Training Oversight Committee b) DO # 4 s. 2014: Increased Limits of Delegated Authority to Regional Directors to Approve Plans, Program of Work & Approve Budget for Contracts of Locally-Funded Projects c) DO # 6 s. 2014 Amended Human Resources Omnnibus Levels of Authorities of DPWH Officials d) DO # 11 s. 2014-Design Standards for Tourism & Farm to Market Roads e) DO # 15 s. 2014- Revocation of DO # 53 s.2013-Regarding Additional Documents for the Processing ofPayments for Civil Works Projects f) DO # 18 s.2014: Revoking D.O. # 97 s.2013, Disallowing Public Disclosure Copy Bid Securing Declaration as Bid Security g) DO # 29 s. 2014-Creation of an Interim Geospatial Information Administration Unit h) DO # 30 s. 2014- Re- issuance of DO # 87, s. 2013, Page 8 of 14 The World Bank Report No: ISR13919 of Five (5) Specialized Clusters to Comprise the New Organizational Structure of the Unified Project Public Disclosure Copy Management Office (UPMO) pursuant to EO # 366 s. 2004 i) DO # 32 s.2014- Strategic Performance Management System j) DO # 33 s. 2014- Reconstitution ofComplaints, Validation and Investigation Committee (CVIC) k) DO # 35 s. 2014- Guidelines in the Evaluation of Candidates for Appointment to 1st and 2nd Level Positions in DPWH l) DO # 37 s. 2014- Implementation of GPPB Res. # 20-2013 on the Non- Acceptance of Credit Line Certificate as an Alternative to the Prospective Bidders’ Computation of Net Financing Contracting Capacity m) SO # 9 s.2014- Reconstitution of the Composition of the Hearing Officers and Prosecutors in Public Disclosure Copy the Conduct of Formal Hearing of Administrative Casesthat Originated from the CVIC. n) SO # 10 s. 2014- Reconstitution of the DPWH Central Office Grievance Committee Page 9 of 14 The World Bank Report No: ISR13919 o) SO # 57 s. 2014- Reconstitution of the DPWH Committee on Gender & Development Public Disclosure Copy p) SO # 58 s. 2014- Reconstitution of the Placement Committee forUPMO q) Memo 097.7- Supplemental Guidelines on the Implementation of the Expanded Modified Direct Payment Scheme (ExMDPS) for allFunds r) Memo 097.9: Guidelines on the Payment/Payee (Internal & External) thru the Implementation of the ExMDPS forall Funds s) Unnumbered Memo, Supreme Court decision declaring unconstitutional the 2013 PDAF Article Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component A1: National roads are upgraded to Text Value 0 km added by the Project to 295 kms paved from gravel or At least 280 km added by paved roads at acceptable standards NRS paved road length deteriorated PCC project to NRS paved road length Public Disclosure Copy Date 31-Dec-2008 31-Mar-2014 31-Dec-2014 Comments The end project target is already exceeded. Component A1: National arterial paved roads Text Value 52% (11,039 km) of 55% of NRS paved 55% of NRS are maintained in good condition NRS paved length length are in fair paved length are in fair condition condition or better are in fair or better ; and (a) condition or 21,006 km better; (a) At committed under least 635 km preventive committed Page 10 of 14 The World Bank Report No: ISR13919 maintenance under annually preventive maintenance; and at least Public Disclosure Copy 680 km committed under Long Term Performance Based Maintenance Program. Date 06-Dec-2012 31-Dec-2014 Comments Component A2: Improved road asset Text Value Stage one completed. (a) 69% of the (a) At least 80 management of NRS by DPWH Pilot and testing of annual road percent of the new applications program of DPWH annual road is evaluated by program of technical and DPWH is economic criteria evaluated by through the use of DPWH technical and economic planning criteria application. through (b) NCB works in the use of 12 months DPWH (c) Financial planning audits timely and applications adverse by 2012 opinions reduced (b) NCB by 50% works/goods (d) < 30% within 9 (e) Road, bridge months. and traffic data in (c) Financial RBIA kept current audits timely Public Disclosure Copy on less than 90% and adverse paved NRS opinions network through reduced by 50% (d) Cost and time over-runs reduced to less than 30% of contract terms Page 11 of 14 The World Bank Report No: ISR13919 in 70% of works contracts under Project Public Disclosure Copy (e) Road, bridge and traffic data in RBIA kept current on at least 90% paved NRS network Date 06-Dec-2012 31-Dec-2014 Comments Component B: Streamlined and effective Text Value Functional and (a) (a) Functional and corporate structure and processes in place to structural Rationalizat structural improve service delivery, accountability and reorganization of ion plan reorganization of integrity DPWH is not adopted for DPWH operational operational Regional (b) Improved (b) Slow document and District compliance with processing time Offices document (c) Road user (b) Track processing time appreciation of system in standards: 96% DPWH place to improvement Performance: no data follow the (c) Road user (d) Average margin document appreciation of of bid award over processing DPWH official reduced: performance estimate is around 18% 86.2% improved by at least (e) Independent improveme 10 integrity rating of nt (PGS percent DPWH: No data march (d) Average margin 2012) of bid award over (c) official Public Disclosure Copy Appreciatio estimate less than 10% n of DPWH (e) Independent performanc integrity rating of e improved DPWH from grade improved by 10% B (2008 report) to grade A (2009 report) Page 12 of 14 The World Bank Report No: ISR13919 (d) < 12% (e) 2009 Report Card Integrity Public Disclosure Copy level of department – Grade F; Sincerity in fighting Corruption – Grade B Date 06-Dec-2012 31-Dec-2014 Comments Component B: Road Funds performance Text Value (a) Preparation of (a) (a) Updated IRR and improved; and Strategic sector reform plan is Operating Procedures Operating Operating Procedures developed and adopted ready for Manual of Road Procedure Manual of Road implementation inNRIMP3 Board underway. Manual Board adopted (b) Limited revenue adopted. (b) Expanded base for Road Funds (b) In revenue base for (c) Road Sector progress Road Funds Reform Plan and new (c) Policy adopted Road Management and (c) Road Sector Model under procedures Reform Plan and new preparation have been Road improved to Management Model institute adopted by Road internal Board and DPWH controlsfor approvals and release of funds. Policy and procedures have been Public Disclosure Copy improved to institute internal controls for approvals and release of funds. Date 06-Dec-2012 31-Dec-2014 Comments Data on Financial Performance (as of 30-Jul-2014) Page 13 of 14 The World Bank Report No: ISR13919 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P079935 IBRD-75520 Effective 13-May-2008 24-Oct-2008 16-Apr-2009 31-Dec-2012 31-Dec-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P079935 IBRD-75520 Effective USD 232.00 232.00 0.00 103.10 128.90 44.00 Disbursement Graph Key Decisions Regarding Implementation DPWH has requested project restructuring with two year extension of the loan closing date to support post-Yolanda reconstruction efforts through design and supervision of local Public Disclosure Copy infrastructure works and preparation of maps for local road network in Mindanao. DPWH has also identified further activities within the scope of the current project mainly to consolidate its ongoing initiative on asset preservation, road safety, and institutional capacity development during the proposed two year extension period. Restructuring History Level two Approved on 18-Dec-2012 Related Projects There are no related projects. Page 14 of 14