Construction/Rehabilitation/Concreting of Buli – Bayan – San Isidro – Mahaba – San Roque –...

Construction/Rehabilitation/Concreting of Buli Bayan San Isidro Mahaba San Roque Tagbilaong Farm to

Market RoadFEASIBILITY STUDYMunicipality of Marihatag

Province of Surigao del SurPhilippine Rural Development Project

TABLE OF CONTENTS

TITLEPAGE

Title Pagei

Table of Contentsii

List of Tablesiv

List of Figuresv

List of Annexesvi

Executive Summaryvii

Provincial Background

Location and Demographics1

Economy3

Agriculture and Rural Development Sectors

3

Project Identification and Prioritization Profile

E-VSA Maps and Statistics

4

Value Chain Summary7

Abaca Production System

9

Processing10

Trading and Marketing10

The Sub-Project: The Road Influence Area

Sub-Project Objectives11

Geographic Boundaries11

Relative Distance to Growth and Commercial Centers12

Demographics

13

Economy and Land Use13

Off-Farm and Non-Farm Employment14

Poverty Incidence15

Market Analyses

Supply Side15

Demand Side16

Generated Traffic Volume17

Diverter/Attracted Traffic17

Technical Analysis

Horizontal Road Alignment Analysis17

Vertical Road Alignment Analysis18

Drainage/Hydraulic Analysis18

Soil and Foundation Analysis20

Proposed Sources and Location of Borrow Pits, Quarries and Construction Materials20

Items of Work and Cost21

Operational Analysis22

Social Analysis

Project Beneficiaries23

Indigenous Cultural Community/Indigenous Peoples (ICC/IP)24

Site and Right-of-Way Acquisition24

Damage to Standing Crops, Houses and/or Properties24

Physical Displacement of Persons24

Economic Displacement of Persons25

Environmental Analyses

Natural Habitat29

Physical/Cultural Resources

30

Terrain, Soil Types and Rainfall30

Hazard/Risk Assessment32

Flooding Potential32

Landslide Potential33

Mitigation Measures34

Status of Environmental Clearance IEE34

Environmental Issues and Mitigation Measures34

Financial Analyses

Project Investments

34

Economic Benefits35

Vehicle Operating Cost (VOC) Savings

35

Savings in Output and Input Hauling36

Benefits from Time Saved

36

Expansion of Productive Lands36

Benefits in Reduced Post Harvest Losses36

Economic Feasibility37

Sensitivity Analysis

37

Conclusions and Recommendations

Conclusions38

Recommendation38

Annexes39

LIST OF TABLES

TABLE NO.TITLEPAGE NO.

A1Population, Area, and Density by municipalities in Surigao del Sur, 20101

A2Land Classification by Municipality in Surigao del Sur3

A3Land Use, Surigao del Sur3

B1E-VSA result for abaca, Province of Surigao de Sur5

B2Area. Volume of production, and yield of abaca, Caraga, 2009-20136

B3Abaca production in the Philippines ranked according to volume, 20118

B4Top 10 abaca producing provinces in the Philippines, 20139

C1Distance to Poblacion and mode of transport by barangay13

C2Demographic composition by barangay13

C3Average Total and Per Capita Income14

C4Off-farm and Non-farm employment14

C5Poverty Incidence 15

D1Existing road network with the RIA16

D2Length and status of difference water forms16

D3Traffic count Bayan-San Isidro-Mahaba16

E1Twelve-year rainfall data from Hinatuan, Surigao del Sur19

E2Proposed hydraulic structures for the segment of the road19

E3Source materials for the proposed road segment Mararag-San Pedro-San Isidro FMR20

E4aCost estimate for the Buli-Tagbilaong FMR road component21

E4bCost estimate for the Buli-Tagbilaong FMR bridge component22

E4cSummary of cost estimate for the Buli-Tagbilaong FMR22

G2Environmental and Social Issues and Mitigation Measures/ Environmental and Social Management Plan26

I1Computation of Economic Cost of Subproject35

I2Sensitivity of EIRR to the prices of abaca and cost of transport37

I3Sensitivity of BCR to the prices of abaca and cost of transport38

LIST OF FIGURES

FIGURE NO.TITLEPAGE NO.

A1Map of Surigao del Sur1

B1E-VSA map of abaca commodity, Surigao del Sur3

B2Breakdown of abaca production in the Philippines by island group, 20137

B3Flow of abaca fibers from Marihatag and other parts of Mindanao11

C1Geographic Boundaries of Marihatag12

C2Road Network Map of the Municipality of Marihatag12

C3Geo-tagging of abaca and other processing centers15

E1Bayan-Mahaba-San Isidro route in blue and Buli-Tagbilaong (San Isidro) in red.18

G1Organizational chart for operations23

H1General land use map of Municipality of Marihatag30

H2Slope map of Municipality of Marihatag30

H3Average monthly rainfall days and precipitation in Marihatag31

H4General land use suitability map of Municipality of Marihatag32

H5Flood map,of Municipality of Marihatag33

H6Rain induced landslide map of Municipality of Marihatag33

H7Earthquake induced landslide map of Municipality of Marihatag34

LIST OF ANNEXES

ANNEXTITLEPAGE NO.

G1aMinutes of consultation with the Datus of Manobo39

G1bMinutes of public consultation with the residents41

G2Environmental Issues and Mitigation Measures 43

I1Computation of Economic Cost of Subproject47

I2Investment and Maintenance Costs48

I3aAnnual Road Maintenance Unit Cost49

I3bAnnual Maintenance Cost50

I4aBenefits Vehicle Operating Costs (VOC) Savings51

I4bVehicle Operating Cost Savings for particular year53

I5aBenefits Savings in Output Hauling54

I5bBenefits Savings in Input Hauling57

I6Benefits Savings in travel time for commuters60

I7Benefits of newly cultivated agricultural land (abaca)62

I8Benefits Reduction in Post-Harvest Losses64

I9Economic Analysis66

I10aSensitivity Analysis68

I10bSensitivity Analysis (20-year period)70

Executive SummaryA.Project Title:Construction/Rehabilitation/Concreting of Buli Bayan San Isidro Mahaba San Roque - Tagbilaong Farm to

Market Road

B.Project Location:Brgys. Bayan, San Isidro and Mahaba, Marihatag, Surigao del Sur

C.Project Category

(rehabilitation or new construction):Construction/Rehabilitation/Concreting Farm to Market Road

D.Project Scale/Dimension:Approx. 16.67 Kms

E.Project Proponent:Municipality of Marihatag thru the Provincial Local Government Unit

F.Implementing Unit:Provincial LGU of Surigao del Sur

G.Total No. of Barangays of the Municipalities:12

H.Mode of Implementation:Contract

I.Road Influence Area (RIA):2,359 hectares (Major Crops)

BarangayNo. of has.Crop

Bayan223Abaca

214Coconut

285Rice

Mahaba541Abaca

391Coconut

15Rice

San Isidro350Abaca

311Coconut

29Rice

Total2,359

Value Chain Commodity: Abaca

JProject Beneficiaries within the RIA:

Population : 4,969

Male- 2,542, Female-2,427

No of Households: 956

Farming HH: 4,532

K.Total Project Cost and:P221,660,000.00

Cost SharingWB Loan Proceeds: Php ______

GoP : Php ______

:PLGU Equity: Php ______

L.

M.Economic Viability Indicators

Conclusion and Recommendations:

:ENPV: PhP 264,992 (see EFA template)

EIRR: 22.08 (see EFA template)

BCR: 3.21 (see EFA template)

Value Chain Commodity: Abaca

The project is found feasible because it is technically and economically viable also on its marketing and operational view point. It has an EIRR of 22.08 and its benefit against cost ratio is 3.21.

A. Provincial Background

i. Location and Demographics

Surigao del Sur was originally inhabited by Mamanuas and Manobos, which was officially declared as a province by virtue of R.A 2786 enacted in June 19,1960. The province was formerly part of Region XI but was declared part of the recently created Region 13 or the CARAGA Region. The province is bounde by Surigao del Norte to the North, Agusan del Sur and Agusal Del Norte to the West, Davao Oriental to the South and to the east, the Pacific Ocean. The estimated annual income of the province at the time of its creation was about PhP300,000; however by the 1980s, the province was reclassified as a first class province owing to its annual income which reached to about PhP727,817,648.

Figure A1. Map of Surigao del Sur

The province was originally composed of 13 municipalities. As of 2010, the province is now composed of 19 municipalities.

Table A1. Population, Area, and Density by municipalities in Surigao del Sur, 2010City/MunicipalityPopulation (2010)Area (ha.)Density

(/Sq.km.)

(2010)

Bayabas7,7793,366231

Cagwait18,89916,518114

Cantilan30,23116,851179

Carmen10,28715,91965

Carrascal16,52928,59258

Cortes15,54112,963120

Table A1. ContinuedCity/MunicipalityPopulation (2010)Area (ha.)Density

(/Sq.km.)

(2010)

Lanuza11,85724,20949

Lianga28,90524,027120

Madrid14,88818,99078

Marihatag17,92532,68955

San Agustin20,65524,38585

San Miguel36,28757,93863

Tago33,99328,435120

Tandag City (capital)52,11423,593221

District I315,890328,47596

Barobo43, 66322,576193

Bislig96, 57842,264229

Hinatuan38, 73131,523123

Lingig31, 54447,93466

Tagbina34, 81240,99885

District II245,328185,295132

Surigao del Sur561,218513,770109

Among the two (2) districts of Surigao del Sur, District 1 which comprises 13 municipalities and 1 city has slightly higher population (315, 890) than District 2 (245, 328) which consists of 4 municipalities and 1 city. Bislig City of District 2 has the highest population which accounts for 96, 578 followed by Tandag City (District 1) with a population of 52, 114. Meanwhile, the municipalities of Carmen and Bayabas are ranked as the least populous place in the province with population of 15, 541 and 7, 779, respectively.

The largest municipalities/cities in the province in terms of land area are the following: San Miguel which occupies 57, 938 ha, Carrascal with 28, 592 ha and Tago with 28, 435 ha for District 1 and the municipalities of Lingig with 47, 934 ha, city of Bislig with 42, 264 ha, and Tagbina with 40, 998 ha for District 2.

The provincial average for the population density is at 109. The municipality of Bayabas which is the smallest in terms of area and population has the highest density of 231 followed by the two cities, Tandag with density of 221 and Bislig at 229. More than half of the municipalities/cities significantly exceeded the provincial average. The municipalities with lowest densities are Lanuza, Marihatag, and Carrascal.

ii. Economy

Table A2. Land Classification by Municipality in Surigao del SurCity/MunicipalityArea (has.)

A & DForestlandTotal

Barobo11,280422,576

Bayabas1,8721,4943,366

Bislig City18,98523,27942,264

Cagwait4,03712,48116,518

Cantilan7,0149,83716,851

Carmen2,90913,01015,919

Carrascal4,49524,09728,592

Cortes4,6638,30012,963

Hinatuan20,03511,48831,523

Lanuza3,27120,93824,209

Lianga3,35720,67024,027

Lingig12,56735,36747,934

Madrid6,57512,41518,990

Marihatag6,37326,31632,689

San Agustin4,19120,19424,385

San Miguel16,76741,17157,938

Tagbina23,17017,82840,998

Tago11,08117,35428,435

Tandag5,90217,69123,593

Surigao del Sur168,544333,934513,770

The municipality of Tagbina ranks 3rd in the largest area next to San Miguel and Lingig and also ranks the highest in terms of A&D land with 23, 170 hectares. Next is Hinatuan with identified A&D land of 20, 035 ha followed by Bislig City with 18, 895 A&D land. The municipality of Barobo which ranks next has relatively larger area for A&D (11, 280 ha) compared to its forestland (4 ha).

iii.Agriculture and Rural Development SectorsTable A3. Land Use, Surigao del SurLand UseArea (has.)

Agricultural Lands

Palay20,645

Corn3,214

Fruits2,551

Non-food industrial crops105,715

Vegetables

Table A3. ContinuedLand UseArea (has.)

Production Forest

With tenurial instrument (TLA, IFMA, CBFM, ISF etc.)246,990

Open access untenured81,398

CADT

Protection Forest

Watershed Areas

Proclaimed Watershed (6)43,628

Critical watershed234,003

Key Biodiversity areas

Proposed landscape and seascape102,458

Proposed critical habitat3,911

Marine Protected Areas3,061

Mining Areas (as of June 2009)

Approved MPSA)

Approved exploration permit

Approved operating contract

Approved special mines permit

Approved sand and gravel

Non-food industrial crops constitute majority of the agricultural land use in the province at 105, 715 hectares. For palay production, 20, 645 hectares is being utilized. Other crops produced are corn and fruits. The largest area in the province is devoted to production forest with tenurial instrument recorded at 246, 990 hectares followed by critical watershed areas with 234, 003 hectares. For the key biodiversity areas, 102, 458 hectares is designated for proposed landscape and seascape while 3, 911 hectares for proposed critical habitat. Marine protected area has the smallest area noted among the different land uses.

B. Project Identification and Prioritization Profilei. E-VSA Maps and Statistics One of the guidelines set forth under PRDP in formulating the competitiveness strategy for certain commodity involves developing the commoditys value chain upgrading strategy. Should an intervention be indicated like enterprise development or farm-to-market road, in any segment of the VCA, the location best suited for the intervention shall be determined through the expanded vulnerability and suitability Analysis or E-VSA tool (Source: PRDP I-PLAN OM). E-VSA is a science-based tool used by PRDP in prioritizing areas of investment in any given province or municipality for certain commodity(ies) with competitive advantage. By competitive advantage means that the prioritized commodity, e.g. abaca has considerable volume of production and large extent of hectarage that can generate a commodity-based enterprise that has significance in local or global market. E-VSA plays a significant role in identifying which areas to invest and what commodity will be supported by PRDP funds under I-REAP or I-BUILD subprojects.

As per E-VSA result, amongst the 19 municipalities in Surigao del Sur, the municipality of Marihatag is 4th in the ranking. This means that Marihatag is eligible for PRDP intervention in support to abaca (see Table B1, Figure B1).

Figure B1. E-VSA map of abaca commodity, Surigao del Sur

Table B1. E-VSA result for abaca, Province of Surigao del SurMunicipalityNumber of Farmers(15%)Volume of Production (Mt)(15%)Area Planted (Ha)(10%)Poverty Incidence (10%)VSA Rank(50%)Composite IndexE-Vsa Rank

Tago18762028583880.575371

San miguel15146025915170.568722

Bislig city1339029243430.551083

Marihatag15680240750120.548284

San agustin964350139650100.479315

Lingig759015054990.457446

Tagbina45604544810.455367

Lanuza9748595035170.45098

Cagwait88912162539160.428059

Lianga543010533760.4109810

Barobo5901344620.378511

Hinatuan350634440.3679412

Tandag743047026150.3584613

Bayabas100203950.339814

Madrid00033110.3095115

Carmen40435130.3088916

Cortes5006836180.2989217

Carrascal5902233190.2893318

Cantilan00026140.2879319

Surigao del Sur is the largest abaca producing province in the region and in Mindanao. In 2013, the province accounted for 65% of the regions abaca output (Abaca VCA, 2014). The province has been supplying abaca as raw material for pulp production, specialty papermaking, cordage production, and handicrafts to Cagayan de Oro City, Davao, and the Bicol region (Phil FIDA, 2005). The top 5 leading producers of abaca in the province are Tago, San Miguel, Bislig, Marihatag, and San Agustin. Table 2 shows the production of abaca in Caraga region.

Table B2. Area, volume of production, and yield of abaca, Caraga, 2009-2013Indicators20092010201120122013Annual % Growth Rate

CARAGA

Volume5,861.196,058.646,030.785,965.035,827.89-0.11%

Area Planted9,920.0011,780.0010,949.009,911.0010,437.001.04%

Average Yield0.590.510.550.600.56-1.10%

Agusan del Norte

Volume542.56548.08508.36529.17521.24-0.79%

Area Planted3,250.003,250.002,500.001,625.001,620.00-10.03%

Average Yield0.170.170.200.330.3218.55%

Agusan del Sur

Volume1,369.531,392.861,509.561,505.161,674.054.45%

Area Planted3,190.003,230.003,229.003,186.003,236.000.29%

Average Yield0.430.430.470.470.524.10%

Surigao del Norte

Volume25.4222.6017.6110.708.10-13.63%

Area Planted360.00300.00220.00100.0081.00-15.50%

Average Yield0.070.080.080.110.108.32%

Surigao del Sur

Volume3,923.684,095.103,995.253,920.003,624.50-1.52%

Area Planted3,120.005,000.005,000.005,000.005,500.0015.26%

Average Yield1.260.820.800.780.66-9.52%

Source: BAS/PSA, Abaca VCA, 2014

Caraga region (where Surigao del Sur is one of the significant sources of raw material) is one of the regions in the country with a robust abaca industry. As of 2014, the region posted an average production volume of 5,828 MT and has a total production area of 10,437 hectares (Abaca VCA, 2014). It is home of 3,439 abaca producers whose farm holdings average from 1.0 to 3.5 hectares. The region has 44 licensed abaca traders and 4 fibercraft makers. The industry generates a total of 27,448 jobs. Direct dependents include abaca farmers, classifiers/sorters, manufacturers, traders, exporters and hundreds of fiber craft processors (PhilFIDA data, 2005). This suggests the importance of abaca to the farmers in Surigao del Sur in general and Marihatag in particular. This also indicates how important the commodity is in terms of its contribution to the economy of the province/municipality. The commodity has essentially provided steady income to farmers, which redound to substantial revenue to the province. It is to be noted that abaca together with coconut and rice is among the top three leading crops in Surigao del Sur (LGU Marihatag 2011).One of the development agenda of the regional industry cluster is to make Caraga as the production and processing hub in the country. With this goal, the industry cluster will capitalize on its strategic location, as it is adjacent to Region 10, home to the worlds biggest abaca pulping plant.

To realize this goal, the cluster will work on the expansion of production areas from 10,437 hectares at present, to 25,000 by 2020 and increase yield from 0.56 MT/hectare at present to 2.0 MT/hectare in the near future (PhilFIDA no date). This is where Surigao del Sur, particularly Marihatag plays a significant role in the abaca industry. A key ingredient to boost the abaca production in the province is to improve farm to market roads. ii. Value Chain Summary In 2012, the world production of abaca reached up to 77.9 thousand metric tons (MT) and the Philippines accounted for 83% of the world production. The second largest abaca producing country is Ecuador, where abaca is grown on large estates and production is increasingly mechanized. In the Philippines, the abaca sector consists mainly of smallholders. Philippine abaca has nine grades for each type of cleaning compared to the five grades of Ecuador. As such, Philippine abaca presents a wider spectrum of quality choices and answers the various needs of different manufacturers like the handicraft, cord and papermaking industries (Source: VCA 201). The Philippines during the pre-war era ranked first in worlds abaca fiber production, in fact we are the only abaca producing nation in the world until the 1920s (Baroa and Severa, n.d.). In the Philippines, This commodity has a strong economic relationship with resource-constrained farmers situated in the forestlands and in marginal uplands. In fact, abaca is the source of income of most of the marginal farmers in the uplands ever since. Abaca or the Manila Hemp is considered as the champion of the fiber industry in the international community. This is endemic and indigenous to the countrys warm, wet climate and it has been flourishing on Philippine soil for centuries, long before the Spaniards came to the Philippines. Caraga and Davao are among the leading abaca producing regions in the country.

Source: Abaca VCA, 2014Figure B2. Breakdown of abaca production in the Philippines by island group, 2013

Abaca is cultivated in 138,369 hectares in 2013. Collectively, Mindanao accounted for 34% of the area planted to abaca (Figure 2). Total national production was reported at 64,952 MT with the highest production in Bicol Region at 24,078 MT followed by Eastern Visayas with 16,597 MT. Three of the six regions in Mindanao namely: Davao Region, Caraga, and ARMM are among the top 5 abaca producing regions in the Philippines. Mindanao regions accounted for 34% of the total production (Source: VCA, 2014).

The national average yield in 2013 was 470 kilograms per hectare. The top 3 high yielding regions are ARMM (620 kg/ha), Caraga (560 kg/ha), and Davao Region (550 kg/ha). Bicol Region ranks 4th in terms of average yield. The average yield for the whole Mindanao is higher by 4% than the national average at 490 kilograms per hectare (Source: VCA, 2014). Table 3 presents the abaca production in the Philippines whereby Caraga ranks 4th overall in terms of volume of production and area planted.

Table B3. Abaca production in the Philippines ranked according to volume, 2011RegionVolume (MT)Area (Ha)Yield (MT/ha)% to RP Vol

PHILIPPINES64,952138,3690.47100%

Bicol Region24,07844,5090.5437.07%

Eastern Visayas16,59736,2370.4625.55%

Davao Region7,26913,1870.5511.19%

Caraga5,82810,4370.568.97%

ARMM4,9748,0670.627.66%

Northern Mindanao2,2445,3810.423.45%

Western Visayas1,7416,5300.272.68%

Soccsksargen9545,9240.161.47%

Zamboanga Peninsula5901,9650.300.91%

Central Visayas4153,3250.120.64%

Mimaropa1211,4340.080.19%

Central Luzon1135430.210.17%

Calabarzon153310.050.02%

CAR134990.030.02%

Source: Abaca VCA, 2014The number one abaca-producing province in the Philippines is Catanduanes with the highest yield at 820 kilograms per hectare. Abaca farms in Catanduanes are among the first who have achieved a Rainforest Alliance Certification on Sustainable Farming. With its high volume, lead firms tend to focus more on Catanduanes especially in connection with the achievement of the Rainforest Alliance certification. Northern Samar and Leyte ranked second and third, respectively. Six (6) provinces from Mindanao comprised the rest of the top 10 abaca producing provinces in the country (see Table B4).

The Value Chain Analysis (VCA) for abaca conducted by PRDP in 2014 revealed that in Caraga region, Surigao del Sur ranked 4th among the top producing provinces in the country, only next to Leyte. Table 4 shows the area and volume of abaca production in Surigao del Sur.

The value chain analysis (VCA) conducted by PRDP also revealed that the province of Surigao del Sur plays an important role in boosting the abaca industry because it is one of the top producing abaca provinces in the country. Also, abaca has a niche in the overall agricultural development in the province.

Table B4. Top 10 abaca producing provinces in the Philippines, 2013ProvinceVolume (MT)Area (Ha)Average Yield (MT/ha)

Catanduanes20,09224,6220.82

Northern Samar7,43412,0330.62

Leyte4,83311,9700.40

Surigao del Sur3,6255,5000.66

Davao Oriental3,4846,4220.54

Sulu3,1965,2500.61

Davao del Sur3,0676,2450.49

Southern Leyte2,4985,6210.44

Lanao del Sur1,6962,4750.69

Agusan del Sur1,6743,2360.52

Other Provinces12,97152,0340.25

Legend:Mindanao Provinces

Source: BAS/PSA, abaca VCA 2014

iii. Abaca Production System

As the major focus of the of the road infrastructure project, abaca is grown to about 2,227 hectares in the municipality of Marihatag, which ranks as the third most dominant crop in the municipality. In the Municipality, abaca production is primarily small holders. The average land area devoted to the production of the crop is about 1,189 hectares. However, in terms of the cropping system, most of the abaca growers are planting the crop as an intercrop to main crops like coconut and other agro-forest crops. While there are those who plant abaca as a monocrop, the frequency is very few.

iv. Processing

In terms of processing, there are two levels that abaca farmers process raw abaca into fibers ready for the market. The small producers, owing to the smallness of scale, can only process abaca using manual stripping techniques. Consequently, the fiber processed is coarse by nature and are referred to in the market as Laguras.

However, this type of fiber is considered low grade and are therefore valued lower in the market place.

The larger farmers who can afford motorized abaca stripping machines are able to produce the finer grade referred to as S1 (S derived from the phrase spindle-strip derived referring to the grading system for abaca fiber), which is valued with a premium price in the market.

v. Trading and Marketing

In the Municipality of Marihatag, there is only one large buyer of abaca fiber. Farmers sell their abaca fiber in bales transported generally by habal habal at a cost of about PhP3 per kilogram during summer but could be as high as PhP5 per kilogram during the rainy season.

The Integrator buys the fiber from the farmers and upon generating sufficient volume, transport the produce to Davao or Cagayan de oro City (Figure B3). There are small buyers in some of the major producing areas in the municipality like in Barangay Mahaba who also procures fiber from small farmers and pass it on to Integrators in the neighboring municipalities like San Agustin. However, the quality of the fiber is sensitive to proper storage. If marketing is delayed, the price of fiber goes down by about 30% due to reduction in quality.

Figure B3 outlines the flow of abaca fibers from Marihatag and abaca fibers from the other parts of Mindanao.

Figure B3. Flow of abaca fiber from Marihatag and from other parts of Mindanao

C. The Sub-Project: The Road Influence Areai. Sub-Project Objectives

The general objective of the project is to improve the welfare of the farmers in the road influence area (RIA). Specifically, the sub-project aims to:

i.a.reduce post harvest losses in transporting the products;

i.b.reduce transportation cost;

i.c.increase economic activities in the RIA;

i.d.minimize physical injuries to commuters using the hazardous habal-habal; and

i.e.provide better access to markets and other amenities in the central business districts.

ii. Geographic Boundaries

Marihatag as one of the 19 municipalities of Surigao del Sur is bounded in the north by the municipalities of Tago and Cagwait and by the province of Agusan del Sur to the West. To the south lies the municipality of San Agustin and to the east, the municipality is bounded by the Pacific Ocean.

Figure C1. Geographic boundaries of Marihatag

Marihatag is still a third class municipality with a 2015 equivalent income of about PhP40 Million. The municipality is composed of 12 Barangays as home to about 17,926 persons spread across an area of about an estimated land area of about 312.5sqaure kilometers. The estimated total land area of the municipality is roughly 34,250 hectares. More than 90 percent of the land are is spread between agriculture (41.7%) and forestry which accounts for roughly 49.33 percent. Built-up areas only accounts for 5.21 percent of the total land area of the municipality. The remaining areas are swamps and mangroves.

The proposed farm to market road will affect 3 of the 12 Barangays of the municipality of Marihatag. The 16.67 - kilometer road concreting project will traverse Barangays Bayan, San Isidro and Mahaba.

iii. Relative Distance to Growth and Commercial Centers

Figure C2. Road Network Map of the Municipality of MarihatagThe distances of the Barangays influenced by the proposed farm to market roads to the Poblacion ranges from 3.65 kilometers for Bayan and 18.68 for Mahaba. San Isidro is about 11.63 kilometers from the poblacion. While a few four wheel vehicles pass through the Bayan San Isidro Mahaba segment, most of the commuters passing through the road use habal habal for their transport needs.

Table C1. Relative distance to poblacion and mode of transport by barangayBarangayDistance to PoblacionMode of Transport

Bayan3.65 kmsHabal Habal

San Isidro11.33 kmsHabal-Habal

Mahaba18.68 kmsHabal-Habal

iv. Demographics

The proposed road segment will affect about 4,969 persons distributed across the three Barangays. San Isidro has the most number of people in the RIA at roughly 2,029 followed by Bayan with an estimated population of about 1,974. Mahaba has the lowest population at 966 persons. By gender, there are more male than female members of the population affected by the proposed road construction. In total, there are about 2,542 male members of the population compared to about 2,427 for the female members. Across Barangay, the distribution fallows the same pattern as the general population, that is, the most number are from San Isidro followed by Bayan and the lowest number is from Mahaba.

Table C2. Demographic composition by barangayBarangaySexTotal

MaleFemale

Bayan 1,0049701,974

Mahaba499467966

San Isidro 1,0399902,029

Total2,5422,4274,969

Source: Marihatag CBMS, 2009v. Economy and Land Use

Average total income among the population in the RIA was estimated at PhP 61,492.00; however, the range is as high as PhP 68,920.00 for the population in Mahaba to as low as PhP 54,259.00 for the households coming from San Isidro. The average annual income for Bayan households is PhP 65,306.00. On a per capita basis, the average income ranges from PhP 11,657.00 for San Isidro and about PhP 15,751.00 for Bayan. In Mahaba, the average income per capita is about PhP 14,568.00.

Table C3. Average Total and Per Capita IncomeBarangayAverage Total IncomeAve Per Capita Income

Bayan65,306.0015,751.00

Mahaba68,920.0014,568 .00

San Isidro54,259.0011,567.00

Total61,492.0013,851.00

vi. Off-Farm and Non-Farm Employment

The Barangays affected by the propose road segment are still predominantly agricultural. Out of the 1,126 employed persons, about 946 were engaged in the agricultural sector.

Table C4. Off-farm and Non-farm employmentEmployment by sector

Barangay

Sector codeBayanMahabaSan IsidroTotal

Agriculture mining and Forestry353210383946

Fishing336

Manufacturing10414

Electricity, Gas and Water Supply11

Construction91616

Wholesale and Retail Trade, Vehicle Repair20112051

Hotel and Restaurants11

Transportation, Storage & Communication1231631

Public Administration and Defense991533

Education5128

Health and Social Work314

Other community, Social or Personal Action66

Private Households with Employed Persons369

Total4312384571,126

The next three significant sector include trading, public service and transportation. The rest of the employment sectors include construction and manufacturing.

The geo-tagging exercise done by the team validated the argument for a focus on abaca as the main commodity to be supported by the road project. Along the Mahaba San Isidro segment alone, there are five abaca processing centers. In the same segment, one finds a copra processing center and in the Bayan Mahaba segment is the nursery for cacao serving the beneficiaries for the cacao production program initiated by the LGU with the support form the government and an international chocolate making company.

Figure C3. Geo-tagging of abaca and other processing centers

vii. Poverty Incidence

Marihatag is a very poor municipality as indicated by the poverty incidence based on the proxy means test. In all barangays in the municipality, the poverty incidence is more than fifty percent. It is even more pronounced in the barangays in the RIA. In Bayan, the incidence of poverty is about 83.32 percent for 236 total number of households, 72.76 percent for 124 households in Mahaba o and in San Isidro, the poverty incidence is 77.11 affecting 214 households.

Table C5. Poverty IncidenceBarangayPoverty IncidenceSum of Poor HH

Bayan83.32236

Mahaba72.76124

San Isidro77.11214

D. Market Analyses

i. Supply Side

The total length of roads within the Road Influence Area is about 17.00 kilometers (Table D1). Across the Barangays affected by the proposed segment, all roads were constructed with only gravel materials. Mahaba has the longest road network with a total of about 10.90 gravel roads. Both Bayan and San Isidro have about 3.20 and 2.90 kilometers of gravel road networks, respectively.

Table D1. Existing road network with the RIABarangayT Y P ETotal

GravelConcrete

Bayan3.203.20

Mahaba10.9010.90

San Isidro2.902.90

Total17.0017.00

The existing road segment connecting Bayan, Mahaba and San Isidro is an all-weather gravel road. The route to San Isidro could be shorter via Mararag and San Pedro but the unpassable bridge in that road segment prohibits commuters to San Isidro from using that path. In the Bayan-Mahaba-San Isidro segment, there are two existing bridges: Tulay ng Pangulo with an estimated span of about 24 linear meters and RCDG bridge with an estimated span of roughly 18 linear meters.

Table D2. Length and status of difference water formsCreek/RiverLength (Linear Meter)Status

Tulay ng Pangulo24 lmExisting

RCDG18 lmExisting

ii.Demand Side

Based on a two-day average of the tally of all vehicles passing through the proposed road segment, the modal type of vehicle entering the section is motorcycle either as personal service vehicle or as habal-habal. The total number of motorcycle passing through the section was 393; 265 as personal service vehicle and 128 as habal-habal. The total number of passenger was estimated at about 778 and about 208 cargo items.

Table D3. Traffic count Bayan-Mahaba-San IsidroBayan-San Isidro-Mahaba

TYPENumberPassengerCargo

MOTORCYCLE

Service26540641

Habal-habal128372167

SERVICE VEHICLE

Jeep5350

Car421956

TRUCKS

6 wheels34108201

More than 6 wheels1542107

TOTAL4891,158522

Cargoes are either transported by habal-habal, trucks or jeeps. It can be noticed that only few jeepneys and trucks serve the area (less than 3%). This supports the claim that in the current set-up, transporting the goods is costlier (by habal-habal). When the road becomes operational, there is a projected increase in cargo-loaded vehicles by two-fold. Consolidators and traders are expected to use more fuel-efficient vehicles and collection point is expected to relocate in the upland farm if there is access road in the area.

a. Generated Traffic Volume

Generated traffic volume includes the current road use in addition to the average growth of the number of vehicle. The growth in number of vehicle is assumed to be 2.4% every 5 years. This growth in vehicle use is attributed to population growth and an increased travel demand of the populace due to decreased travel time. Aside from the generated traffic volume, the total traffic volume will also be increased by the addition of Diverted/Attracted Traffic.

b. Diverted/Attracted Traffic

The current mode of transporting abaca fiber to the consolidator is by the use of habal-habal with wings. With only a capacity of 300 kg, the current trips generated from these is quite high. With the realization of the project, this number is not expected to reduce. Although there will be added trip generated by jeeps and trucks, the switching modes is less likely in the next 2 years because the trucks and jeeps only serve the consolidators.

There is still available potential are for crop farming in the area. The road network will help to attract investors to do farming in the area. Moreover, the increased farming activity in the area will generate a rise in vehicle demand due to increased volume of farm produce. Consolidators in the community are also expected to transfer their collection station nearer the farms.

E. Technical Analysis

i. Horizontal Road Alignment Analysis

The proposed FMR starts at station 2 + 852, at the Buli, Bayan-National Highway Junction, Bayan, Marihatag, Surigao del Sur. It runs west from Buli to Brgy. San Isidro community where the existing road splits in two paths. The proposed road will follow the south route from San Isidro community all the way west towards the barangay of Mahaba. The road will run northward hence, traversing the Marihatag River and reaching Sitio San Roque and will follow the east-northeast direction and end in the junction of another proposed road segment of Mararag-San Pedro-San Isidro FMR.

Figure E1. Bayan - San Isidro - Mahaba route in blue and Buli-Tagbilaong (San Isidro) in red.

The proposed segment will include two (2) existing bridges and four (4) bridges to be constructed. The bridges to be constructed will traverse Marihatag River and several of its tributaries. The bridges are to be construction at Sta 13 + 866 over Marihatag River, Sta 14 + 207, Sta 17 + 403, and Sta 18 + 185. This will also include construction of four (4) box culverts of varying sizes to accommodate water crossing from small creeks.

The road will be five (5) meters wide with provision of drainage on any of the side as necessary in the area as discussed in the preceding section.

ii. Vertical Road Alignment Analysis

The terrain starts flat from the starting point up to the end of San Isidro community, where it starts to become rolling and undulating. The terrain will follow a rolling profile until it reaches the community of Brgy. Mahaba. From Brgy. Mahaba until it ends in Tagbilaong, the profile is generally hummocky to rolling.

iii. Drainage/Hydraulic Analysis

The twelve-year rainfall data from Hinatuan, Surigao del Sur was used as the primary data for calculation of drainage requirements. Based from Table E1 the rainfall monthly total ranges from 42.1mm to 1596.4mm. The climate in Surigao del Sur is either Type 2 or Type 4 with no pronounced dry season. Peak month is recorded in January while the low month is observed during September.Table E1. Twelve-year rainfall data from Hinatuan, Surigao del Sur

To accommodate the volume of water in the catchment area, the proposed segment of the road will have provision for drainage canal. This is to protect the subsoil surface from being infiltrated by unnecessary water. Currently, rainfall runoff is only drained through natural drainage from porous soil surface and side ditches of the road. Table E2 summarizes the proposed hydraulic structures for the segment.

Table E2. Proposed hydraulic structures for the segment of the roadStationDescriptionLength (m)Remarks

Road-side drainage

--RCPC 1 x 0.90m diameter100Outfall for Buli drain going to river

2 + 852Open Canal Trapezoidal, 0.3m base & 0.6m top by 0.6m high on one side4,394

Table E2. ContinuedStationDescriptionLength (m)Remarks

7 + 246Open Canal Trapezoidal, 0.3m base & 0.6m top by 0.6m high on both sides660San Isidro community


11 + 466Open Canal Trapezoidal, 0.3m base & 0.6m top by 0.6m high on both sides451Mahaba community


13 + 866Bridge--Marihatag River

13 + 911Open Canal Trapezoidal, 0.3m base & 0.6m top by 0.6m high on both sides296San Roque community


Drainage Structure crossing the road

15 + 1691 x 0.9m diameter RC pipe7

16 + 3040.5m x 0.8m box culvert7







iv. Soil and Foundation Analysis

Visual soil investigation reveals a clayey type of soil with granular gravel on top up to Sitio San Roque. The soil type after Sitio San Roque is generally clayey for 2 kilometers and then clayey with granular gravel up to the end of the road segment. A detailed investigation of soil sample is recommended to be conducted by the PEO for further analysis.

v. Proposed Sources and Location of Borrow Pits, Quarries and Construction Materials

The main quarry source for the segment is Marihatag River, Mahaba, Marihatag, SDS. Source of construction materials such as cement and steel bars is from Tandag City, SDS. Table E3 summarizes the sources of material for the proposed road segment.Table E3. Source materials for the proposed road segment of Bayan-Mahaba-San Isidro FMRType of MaterialSource and LocationDistance to Project Site (km)Cost

Selected backfill materialMahaba, Marihatag, SDS2--

Fine aggregatesMarihatag River, San Isidro, Marihatag, SDS8850

Coarse aggregatesMarihatag River, San Isidro, Marihatag, SDS8950

BouldersMarihatag River, San Isidro, Marihatag, SDS6850

vi. Items of Work and CostThe following table outlines the itemized cost for the construction of the road segment along Bayan, Mahaba, and San Isidro, Marihatag, Surigao del Sur.Table E4a. Cost estimate for the Buli-Tagbilaong FMR road componentScope of Work (Direct Cost)% wtQuantityUnit of MeasureUnit CostAmount

Mobilization and Demobilization1.85% 1.00 lot 2,090,088.40 2,090,088.40

Clearing and Grubbing0.27% 33,340.00 sq.m. 9.00 300,060.00

Surplus Common Excavation2.63% 13,160.00 cu.m. 225.00 2,961,000.00

Structure Excavation0.06% 112.00 cu.m. 622.50 69,720.00

Embankment1.38% 4,450.00 cu.m. 350.00 1,557,500.00

Sub-grade Preparation2.22% 100,020.00 sq.m. 25.00 2,500,500.00

Aggregate Base Course10.91% 10,002.00 cu.m. 1,230.00 12,302,460.00

Portland Cement Concrete Pavement (200mm thick)70.40% 21,004.20 cu.m. 3,778.00 79,353,867.60

Reinforcing steel bars (Grade 36) for Box Culvert0.07% 1,282.00 kg 65.00 83,330.00

Structural Concrete Class AA (fc' = 28MPa)0.05% 13.44 cu.m. 4,500.00 60,480.00

Lean Concrete0.01% 3.65 cu.m. 3,500.00 12,775.00

RCPC 0.90m dia. Class II0.43% 128.00 l.m. 3,788.00 484,864.00

Cleaning Pipe Culvert in place0.04% 156.00 l.m. 270.00 42,120.00

Grouted Riprap0.89% 270.00 cu.m. 3,705.00 1,000,350.00

Metal Guardrail3.77% 4,325.00 l.m. 983.00 4,251,475.00

Thermoplastic pavement markings1.55% 16,670.00 l.m. 105.00 1,750,350.00

Center-line reflector separator3.46% 16,670.00 pc 234.00 3,900,780.00

TOTAL100.00% 112,721,720.00

Table E4b. Cost estimate for the Buli-Tagbilaong FMR bridge componentBridge for construction 115.00 l.m. 450,000.00 51,750,000.00

Table E4c. Summary of cost estimate for the Buli-Tagbilaong FMRLengthDirect CostIndirect CostTotal CostCost per km

w/o bridge16.67 km 112,721,720.00 39,194,344.69 151,916,064.69 9,113,141.25

w/ bridge16.67 km 164,471,720.00 57,188,280.00 221,660,000.00 13,296,940.61

Based on the summary table, presented in Table E4c, the Bayan Mahaba San Isidro FMR Segment has a total length of 16.67 km amounting to Php 221,660,000.00 including the construction of the four new bridges.

F. Operational Analysis

The proposed sub-project to construct the 13.3 kilometer concrete road through Bayan, Mahaba and San Isidro will be implemented by the Provincial Government. Specifically, the project will be implemented through the Provincial Project Management Implementing Unit (PPMIU) within the framework of the Intensified Building Up and Logistics for Development (I-BUILD) and under the direct control of the Provincial Engineering Office.

Through a series of consultations with the local government executives (LCEs), the municipal development officer (MPDO), the Municipal Agriculture Officer (MAO) as well as some member of the Non-Governmental Organizations (NGOs), Peoples Organizations (POs) and farmer-representatives, the project site was identified. The process was done within the broader framework of the Provincial Commodity Investment Plan (PCIP).

Further, the prioritization of the specific commodity was done through the Expanded Vulnerability and Suitability Analysis (E-VSA). This criterion was supplemented by other parameters including the role of the commodity in the value chain, proportion of area planted, volume of production, an poverty incidence. This identification process was validated by Provincial Support Office of the Philippine Rural Development Project (PSO-PRDP) and the Regional Project Coordinating Office of PRDP and in consultation with the PPMIU.

Based on the results of the prioritization process, the survey was conducted by the PPMIU through the Provincial Engineering Office including the hydrologic and geologic test, detailed engineering design and program of works. At the same time, the Regional Office of the Department of Agriculture with the support of the Provincial and the Municipal Agricultural Office conducted geo-tagging. A team of experts was engaged to conduct the feasibility of the sub-project with the following components: technical, social, environmental, and economic.

The Municipal Engineering Office and the Provincial Engineering Office will do project maintenance jointly. While immediate and minor maintenance work can be done independently by the municipal engineering office, major repairs will have to be done with the support of the provincial engineering office.Figure F. Organizational chart for operations

G. Social Analysis

i. Project Beneficiaries

The target beneficiaries of the proposed farm-to-market road are the residents engaged in abaca, coconut, and rice production of Barangays Bayan, San Isidro and Mahaba. The total population number of beneficiaries is 4,969 (Male- 2,542 and Female- 2,427).

The public consultation was coursed through the chairpersons of the concerned barangays. This was held last 8 January 2015 at attended by 38 people (Male- 25 and Female 13) (please refer to Annex G1). The consultation serves as a venue for the residents to be heard of their concerns and to inform the local government unit of their stance about the project.

Overall, the residents have expressed their support and commitment to the project. The major concerns shared by the residents during the consultation are as follows:

a. A resident reported that in Barangay Mahaba there will be few houses that will obstruct the proposed arm-to-market road.

The facilitator explained that before the construction the local government unit would discuss with the concerned farmers on how the affected households will be compensated. Mayor Alan Pelenio, who was again present during the consultation, seconded the facilitators response.

b. There will also be coconut trees and other crops that will be affected once the construction will start. The question is will the farmers will receive compensation?

As with the earlier public consultation, the response was that there will be a discussion between the affected households and the municipal government for compensation.

c. If the project will be approved, will it continue even if the current Mayor will no longer be the Mayor in 2016?

The facilitator explained that once the project is approved, it will continue to be implemented regardless of who the Mayor will be. Mayor Alan Pelenio added that the project will be implemented by the Provincial Government that will provide the equity of PhP80 million.

ii. Indigenous Cultural Community/Indigenous Peoples (ICC/IP)

The datus together with the other Manobos joined the consultation in the barangay. Similar with the other residents of barangay, they have expressed their support and commitment for the realization of the project.

A datu from Sitio San Roque who joined the Engineering Team of the Municipality, which performed the survey for two weeks informed the group that his house and the shed will be affected by the farm-to-market road. He is, however, willing to move his house and shed.

iii. Site and Right-of-Way AcquisitionThe proposed site is concreting of existing barangay road with a total length of 17 kilometers. A public consultation was held and attended by 38 residents of the barangay. The SES team representative discussed the proposed project and emphasized the residents support is needed especially the execution of deed of donations/waiver of rights by the affected area. The response of the residents was very positive, since portion of the road exists, though not in good condition, they are very willing to move their house or have their trees cut.

Two weeks before the consultation, a Survey Team conducted the actual measurements of areas affected by the project. The survey team is still finalizing the list of households, other infrastructure, and crops and trees that might be affected because of the road construction.

iv. Damage to Standing Crops, Houses and/or Properties

There will be few houses and one shed that will be affected by the road right of way. There will also be coconut and forest trees that will be affected. This is due to that fact that the road is partly being used for a long time while portion is just a trail and another portion was an old logging road.

v. Physical Displacement of PersonsMajority of the persons living within the proposed sub-project influence area are farmers. Nearly all of them have their permanent dwelling in the area. Few houses in Barangay Mahaba and one in Sitio San Roque will be affected but as discussed earlier discussions with the owners will be held before the construction start.vi. Economic Displacement of Persons Initial results of the survey and as discussed during the public consultation, the construction of the farm-to-market road will not displace the economic activities of the residents. Those who attended the consultation believe that there will be more economic activities since the transportation of inputs as well the agricultural production would be faster and the perceived cheaper transportation cost will encourage more farmers to directly market their produce in the barangay for higher price.

Table G1. Environmental and Social Issues and Mitigation Measures/Environmental and Social Management PlanIssue (Potential Impact)AssessmentMitigation MeasureSchedule/Duration of Mitigation MeasureInstrument of Implementation (POW, Contract, IDP, or O&M Plan)Responsi-ble Unit

Soil erosion and sedimentation management

1. Temporary increase in sedimentation during construction[ ] Topography of the road alignment necessitate massive earthmoving and cutting of clayey or loose topsoil

[ ] Cut materials will consist mainly of hard rocks and are unlikely to generate significant sediments[ ] Earthmoving/ cutting of slopes to be done during dry months [ ] Proper disposal and compaction of spoils

[ ] No measures requiredDED/POW;

ContractContractor/Assigned Project Engr

2. Landslide/ erosion of exposed road sides resulting in sedimentation of waterways[ ] The road will traverse a mountainous area necessitating deep cuts on mountainsides, particularly between station___ and ___, etc. (Please see DED for deep cuts and stations.)

[ ] The exposed slopes will likely consist of highly erodible loose materials.

[ ] The cut slopes will be hard materials that would resist erosion.

[ ] The road passes through a relatively benign terrain, cuts will be minimal.

[ ] The rehabilitation work does not involve additional road cuts.[ ] Include slope protection works at the following stations:

____________________

____________________

____________________

(specify the type/s of slope protection to be applied at each section

Consult with the Municipal Engineer:

[ ] Bioengineering with geomat and cover crop

[ ] Fast growing shrub species

[ ] Riprap

[ ] Gabions

[ ] Terracing

[ ] Concrete protection wall

[ ] OthersDED/POW

Or (if budget does not permit)

LGU Commitment LetterContractor/Assigned Project Engr

Water quality management

3. Inadequate drainage resulting in flooding or ponding[ ] The road will block runoff, resulting in flooding on one side of the road during rainy days.

[ ] Drainage issues unlikely[ ] Installation of cross drain between station

_________ and _________ DED/POW


4. Potential contamination of surface and groundwater with oil/grease[ ] Waste oil and grease from equipment could contaminate surface water

[ ] There will be no significant amount of waste oil/grease[ ] Proper handling and disposal of waste oil and greaseContractContractor/Assigned Project Engr

5. Potential contamination with human waste

[ ] Construction workers would be temporarily housed in a base camp

[ ] Workers would be locals and are expected to go home to their respective houses after work[ ] Set up adequate latrine/toilet facility at the base camp

ContractContractor/Assigned Project Engr.

6. Potential increased use of pesticides due to intensification of cash crop production in the areaFarmers are not applying fertilizer nor chemicals in their crops.

Farmers use the abaca wastes from the stripping machine to fertilize their crops.No mitigation measure needed

Air quality management

7. Potential disruption of traffic flow[ ] The access road and/or segments to be rehabilitated is vital to daily activities of the residents and farmers and need to be kept open to traffic during construction

[ ] The construction will not affect daily movement of residents and farmers[ ] Keep the road open to traffic flow and minimize disruptions along the access road and/or construction area; Provide adequate warning signs and traffic personnel when necessary;

[ ] Undertake regular maintenance measures on the passable portions of the roads

[ ] No measures needed

8.. Potential dust/mud nuisance during construction

[ ] Roads could become powdery during dry days and muddy during rainy days of the construction period

[ ] Access road and/or the construction/ rehabilitation works passes through a populated area

[ ] Access road and/or construction/ rehabilitation does not pass through any populated area[ ] Undertake sprinkling of road (including access roads) during dry days, and filling up of potholes during rainy days, especially in residential areas

[ ] Set up speed limits for vehicles, especially within residential areas

[ ] No action requiredContractContractor/Assigned Project Engr

Noise and vibration

9. Noise from construction vehicles, asphalt plants, and blasting operation and equipment[ ] Noise associated with construction of FMR could increase.[ ] Proper maintenance of construction vehicles and equipmentle

[ ] Posting of warning signs in High Noise Area

[ ] Fit tertiary crushers with rock lining to act as natural sound insulator

[ ] maintain natural vegetation, where possible, ,to act as natural buffer

[ ] Select locations for quarrying and mixing operations areas that are not near the vicinity of housing areas

Ecology management (flora & fauna)

10. Potential acceleration of denudation of the upland/hilly areas due to intensification of crop production[ ] The proposed road will connect to the market upland/hilly areas where farmers are currently practicing erosive farming techniques. The road could help accelerate the denudation of the upland/hillsides rendering them unproductive in a few years.

[ ] the road connects only lowland farms to the market[ ] DA to coordinate with LGU for the introduction of sustainable upland farming systems in the area

[ ] No measure requiredCapacity Building Plan;

O & M PlanOCA

11. Potential increase in encroachments of human activities into the nearby public forest[ ] The proposed road will improve human access to the nearby public forest, resulting in increased slash and burn cultivation, illegal logging and poaching.

[ ] The proposed road does not improve access to public forest[ ] Coordinate with DENR for the enactment of ordinance deputizing the local community to enforce forestry laws

[ ] No measure required

Capacity Building Plan;

O & M Plan

City ENRO

Culture and resources

12. Resources The proposed site that will be concreted is an existing road

There will be no IPs affected or displaced

No measures needed

Entitlement Form 1 and 2, CNO from NCIP Minutes of the ConsultationMLGU

13. IP/ICC Existence of IP Household/land owners - Consulted separately before the preparation of the Feasibility Study Concerns are addressed in the Feasibility StudyAttendanceMLGU

14. Issue on conflict resolution in the project implementation Conflict resolution on project implementation shall be lodged through PRDPs Grievance Redress Mechanism Province of Agusan del Sur has yet to put in place the Grievance Redress Mechanism GRM must be instituted before the project implementation EO/Resolution creating the GRM structure and Mechanism MLGU, PLGU, RPCO, MPSO, NPCO

15. Issue on land for the project site and its corresponding Deed of Donation Potential damage to/displacement of properties/structures along the road

Site traverse by the road are privately owned

- Negotiate with landowner for the coconut trees and other crops that will be cut/damaged

- Will secure land use permit from DENR

The Deed of Sale, quit claim and land use permit will be secured Deed of Sale, quit claim and land use permit MLGU

16. Demolition and Reconstruction of affected Structures Removal of temporary structure like fences in RROW Properly inform the residence before the demolition

Demolish /move the fence for RROW Before and During the implementation Minutes/ AttendanceMLGU/ BLGU

17. Cutting of Trees Minimal damage of fruits and trees in RROW Prior to removal, properly informed the owner

- Fruit bearing trees should be cut after harvesting the fruits

Before and During the implementation Minutes/Documentation/ Attendance MLGU/ BLGU

Employment and Employment Condition

18. Local employment Construction will provide local employment opportunities

Hiring priority shall be given to qualified local residents; Implement I-BUILD Manual on local hiring During construction and operation POW, Contract and Payroll Contractor, PLGU

19. Hazard to health and safety of workers and nearby residents Hazard and accident prone activity during construction - Standard, safety and proper procedures employed during construction

Installation of warning signs and safety devices

Always Wear safety tool/gear during operation

Practice good housekeeping Provision of medical/health insuranceContractor and PG should always follow the Safety operation procedure during construction and operation Manual of Operations, ESMP to include SSS, Philhealth contributions Contractor

H. Environmental Analyses

i. Natural Habitat

The site of the proposed Bayan San Isidro Mahaba FMR with bridge component is within A & D lands and will not traverse any declared forest area or any protected area for flora and fauna. The FMR project will traverse Marihatag River and Cagtoog River and may have a temporary erosion and sedimentation impact during construction. Based on the land use map (Fig. H1), lands within the road influence area (RIA) are planted to crops such as falcata, abaca, coconut, rice, fruit trees, banana, and corn. About 100 trees (50% of which is coconut and the other half, fruit trees) along the roadside will be affected by the proposed FMR project. Other vegetation growing along the roadside that may be affected includes grass, abaca, bananas, and falcate. There are no reported wildlife or endangered species seen within the RIA.

Figure H1. General land use map of Municipality of Marihatagii. Physical/Cultural Resources

There are no known physical or cultural sites that will be affected by the proposed FMR. A few houses and a drying shed located along the proposed FMR construction/rehabilitation/concreting may be affected.

iii. Terrain, Soil Types and Rainfall

The terrain of the proposed project site varies from 0 to18 percent slope in Barangays Bayan and San Isidro and from 18 to 50 percent in Mahaba as indicated in Fig. H2 (municipal slope map).

Figure H2. Slope map of Municipality of Marihatag

The proposed project site and its influence area has a clayey soil type, in particular, the Matho clay and Bantog clay, which are prone to rain-induced erosion/landslide posing risks to accidents to commuters as well as potential damages to crops, particularly during heavy rainy days.

Surigao del Sur has a Type 2 or 4 climate with no pronounced wet season. Marihatag has at least 5 to 12 rainy days per month from November to May and at least 4 days the rest of the year. Fig H3 shows the average monthly rainfall days and precipitation in Marihatag based on 2000-2012 data (Source: http://www.worldweatheronline.com/Marihatag-weather-averages/Surigao-Del-Sur/PH.aspx).

Figure H3. Average monthly rainfall days and precipitation in Marihatag

The general land use suitability map, given the terrain, soil type and rainfall pattern in the area of influence of the proposed project is shown in Figure H4. Bayan has the highest land area within the RIA planted to rice, confirming its suitability for rice production. Mahaba, with a slope varying from 18-50% is suited for production forest, and is evidenced by the estimated 2,134 ha planted to falcata, 541 ha to abaca, and 391 ha to coconut. San Isidro is suited to plantation forest as evidenced by the presence of 826 ha of falcate, 350 ha of abaca, and 311 ha of coconut. The proposed construction/rehabilitation/concreting of Bayan - San Isidro - Mahaba FMR is expected to facilitate the production, transport, marketing and future expansion of these production areas.

Figure H4. General land use suitability map of Municipality of Marihatag

iv. Hazard/Risk Assessment

Maps of areas susceptible to flood and rain- and earthquake induced landslide in the Municipality of Marihatag were generated based on the assessment and mapping conducted by the Mines and Geosciences Bureau (MGB) in Region XIII (Figures H5 to H7; MGB-RXIII, 2013). Areas with potential for flooding and erosion/landslide in the road influence area are highlighted below. Annex G2 presents the Environmental Assessment and Management Plan summarizing these issues and other minor environmental issues together with proposed mitigation measures.

a. Flooding Potential

Based on MGBs assessment, Brgy. Bayan and part of San Isidro are susceptible to flooding. Puroks Kamansi and Nangka in Brgy. Bayan are highly susceptible to flooding (i.e., likely to experience flood heights greater than 1.0 meter and/or flooding of more than three days) due to overflows of the Marihatag River. Purok Mangga in Brgy. Bayan is also susceptible to moderate flooding particularly those areas near the Kandiisan Creek and Marihatag River. In Brgy. Mahaba, only Puroks San Roque and Palompon, are highly susceptible to flashfloods. Portions of Purok Loknodon in Brgy. Mahaba which are located near Marihatag River are also prone to flashflood.

Figure H5. Flood map of Municipality of Marihatagb. Landslide Potential

Based on the MGB assessment, within Brgy. Bayan, Puroks Avocado and Bayabas have generally low landslide susceptibility rating with moderate susceptibility in portions near the slope. Purok Durian in Brgy. Bayan also has a low susceptibility to landslide with high portions prone to rockfall. In San Isidro, two out its six Puroks are assessed as moderately susceptible while the rest have low susceptibility to landslide. In Brgy. Mahaba, areas with high susceptibility to landslides include Puroks Rambutan, Kalamanse, Lansones, and Palonpon. For Puroks San Roque and Locnodon, their susceptibility to landslides range from low to moderate. Landslides maybe caused by heavy rains or earthquakes (Figures H6 and H7).

Figure H6. Rain induced landslide map of Municipality of Marihatag

Figure H7. Earthquake induced landslide map of Municipality of Marihatag

c. Mitigation Measures

For the proposed mitigation measures to minimize the potential for soil erosion/landslide and flooding for the proposed construction/rehabilitation/concreting of Bayan - San Isidro - Mahaba, please see Environmnetal Impact Mapping (Annex G2).

v. Status of Environmental Clearance IEE

The necessary environmental clearance required for the proposed project will be processed by the Municipal Environmental and Natural Resources Officer.

vi. Environmental Issues and Mitigation Measures

Please see Annex G2, which summarizes the environmental issues and mitigation measures/Environmental Management Plan following the Department of Agricultures Template for Farm-to-Market Roads.I. Financial Analyses

i. Project InvestmentsThe total investment requirement for the 16.67 kilometer proposed farm to market road along Bayan Mahaba - San Isidro route in Marihatag, Surigao del Sur is about PhP 221,660,000.00. The bulk of the project expense is accounted for by the cost of materials at PhP 114.9 Million. Direct cost is about PhP 35 Million and Overhead plus contractors profit is roughly PhP 41.4 Million. Taxes and other engineering design expenditures account for PhP 22 Million.

Table I1. Computation of Economic Cost of SubprojectFinancial Cost (current prices)Conversion factor/TaxEconomic Cost

Materials /a 121,913,000.00 12%/h110,209,352.00

Equipment /b 33,249,000.00 33,249,000.00

Labor:

Skilled 5,541,500.00 5,541,500.00

Unskilled 6,649,800.00 0.6 /c 3,989,880.00

Subtotal Labor12,191,300.009,531,380.00

Total Base/Direct Cost167,353,300.0019,062,760.00

Overhead, Contingencies and Miscellaneous (OCM) /d15,516,200.0012%/h13,853,750.00

Contractor's Profit /e11,083,000.0011,083,000.00

Total (Base/Direct Cost+OCM+CP)193,952,500.0043,999,510.00

Taxes /f17,732,800.000.00

FS and DED Preparation+ Engineering Supervision /g9,974,700.0012%/h8,905,982.14

Total Cost221,660,000.00259,426,114.14

Yearly maintenance cost is pegged at PhP 28,908 per kilometer for concrete Portland Cement Concrete Pavement (PCCP). Fixed costs including vegetation control, cleaning and repair of culverts, and clearing side ditches account for PhP 19,280.00 and replacement of climatic loss of gravel is about PhP 9,628. Hence, the annual maintenance cost of the road segment is about PhP 353,334.00.

ii. Economic Benefits a. Vehicle Operating Cost (VOC) Savings

The argument behind savings in vehicle operating cost (VOC) is fairly straightforward. Any incremental improvement in road condition will reduce operating cost of any vehicle passing through the road segment.

Based on the average of a two-day tally of vehicular traffic in the road segment, the savings on vehicle operating cost were estimated for motorcycles, cars and trucks (See Table xx). The total yearly saving on vehicle operating costs was estimated at PhP 19,171,808.00 (See Annex Table I4). The bulk of this savings is for motorcycles used as habal-habal, which was roughly PhP 10,621,663.00. The remainder was distributed between cars and trucks. The traffic of both types of vehicles was fairly infrequent, ostensibly due to the road conditions.

b. Savings in Output and Input Hauling

Depending on the weather condition the cost of transporting farm products to the market ranges from 2 to 6 pesos per kilogram. The huge benefit after the concreting of the road segment will be the reduction in the cost of transporting farm output. Based on the major crops produced in the RIA such as abaca, coconut, and rice, the estimated annual savings in hauling output is about PhP 6.1 Million (Annex Table I5). The largest amount of savings is from rice which was estimated at PhP 3.8 Million, for copra, the saving is PhP 1.01 Million. For abaca, the savings was estimated at PhP1.3 Million.

Benefits are also derived from hauling inputs such as fertilizers and other inputs for the major crops grown in the RIA. For the three major crops, the annual savings from hauling farm inputs was PhP 129,722. Similarly, the highest saving was drawn form rice inputs, which was estimated at PhP 94,200. Yearly savings from hauling inputs for abaca production was PhP 29,659 and for hauling coconut inputs, the annual savings was PhP5,862.

c. Benefits from Time Saved

Improvements in road conditions also benefits the population within the RIA in terms of the travel time saved. Monetizing the value of time allows the analyses to incorporate this saving into the overall benefits of the project. Based on the current population and on the assumption that there a certain proportion of the population that is active and further, that there is still a proportion of the active population that travels, the estimated value of time saved traveling an improved road system was about PhP 1.04 Million annually (Annex Table I6).

d. Expansion of Productive Lands

One of the main constraints to increasing agricultural production in the countryside is poor road infrastructures. Hence, the concreting of the proposed road segment will increase the land utilization in terms of both intensity and expansion of cultivated lands. In the RIA, the dominant crop being planted by the population is Abaca. Consequently, one of the benefits identified is the expansion of lands palanted to abaca. Annex Table I7 shows the estimated expansion and the benefits of the increases in production. Assuming a benchmark of 300 hectares, a five percent yearly increase in area planted, a benchmark of PhP 42 per kilogram of raw abaca fiber (S1), and a ten percent yearly increase in the price of abaca, the estimated benefits range from PhP 2.1 Million in the first year to about a Billion pesos in the 20th year.

e. Benefits in Reduced Post Harvest Losses

Road conditions also affects the post- harvest losses of the farmers produce: the better is the road condition, the lower is the post-harvest losses. Based on the production of the three major crops planted in the RIA and on the assumption that the reduction in post-harvest losses is about one percent, the estimated annual benefit from the reduction of post-harvest losses is about PhP 16.3 Million (Annex Table I8).iii. Economic Feasibility

Discounting the stream of benefits against the stream of costs for twenty years, the construction of the 16.67 kilometers of road along Bayan - San Isidro - Mahaba at a cost of about PhP 221 Million could generate an Economic Internal rate of return of about 24.75 percent and a Benefit cost ratio of about 2.65.

iv. Sensitivity Analysis

The returns to any investment will have to be evaluated on how sensitive the project is towards exogenous fluctuations on key critical parameters. The returns will not be very sensitive to changes in cost because the expenditure is done in the beginning and that cost variabilities can be avoided with proper design. The viability of the project will also depend upon the timely realization of the project gains and this is also ensured with proper planning. Hence,, conventional sensitivity analyses is done on the critical exogenous variables, which are beyond the control of project planning and management. This would involve economic variables such as factor and product prices.

Based upon the nature of the RIA and the focal enterprise, which is abaca production, the economic viability of the project would be sensitive to the difference between the pre project price of transporting produce from the RIA to the marker and the projected transport cost post project completion as well as the farm gate price of abaca in the context of the expansion area for abaca production. Table I2 shows the sensitivity of the EIRR to the changes in the pre-project cost of transporting products from the farm to the market and the price of the farm gate price of abaca fiber. If the cost of hauling goes to as low as PhP 4 and at the same time the price of abaca fiber goes as low as PhP 20, then the EIRR goes down to 20.33. Conversely, if the price of abaca fiber goes up to as high as PhP 70 and at the same time the cost of hauling goes as high as PhP 12, then the EIRR goes up to about 30.31.

Table I2. Sensitivity of EIRR to the prices of abaca and cost of transport.Transport

Cost per KgPrice of Abaca per kg

203040506070

420.3322.4124.0925.5026.7427.84

621.1123.1224.7526.1327.3528.44

821.9023.8425.4326.7827.9829.04

1022.7124.5926.1327.4528.6229.67

1223.5425.3426.8428.1329.2730.31

Similarly, the BC ratio is subjected to sensitivity analyses with respect to changes in the cost of hauling farm produce to the central business district and the price of abaca fiber. If the cost of hauling goes to as low as PhP 4 and at the same time the price of abaca fiber goes as low as PhP 20, then the BCR goes down to 1.80. Conversely, if the price of abaca fiber goes up to as high as PhP 70 and at the same time the cost of hauling goes as high as PhP 12, then the EIRR goes up to about 4.06.

Table I3. Sensitivity of BCR to the prices of abaca and cost of transport.Transport

Cost per KgPrice of Abaca per kg

203040506070

41.802.192.572.963.353.73

61.882.272.653.043.433.81

81.962.352.743.123.513.90

102.052.432.823.213.593.98

122.132.522.903.293.684.06

At the base scenario of transport cost at PhP 6 and price of abaca fiber at PhP 40, the EIIR and BCR are 24.75 and 2.65, respectively. The following list of Detailed Tables of Economic Financial Analysis Templates are hereby attached to ensure the validity of the computations presented:

1. Table 1. Computation of Economic Cost of sub-project

2. Table 2. Investment and Maintenance Costs

3. Table 3a Annual Maintenance Unit Costs

4. Table 3b Annual Maintenance Cost

5. Table 4. Benefits-Vehicle Operating Cost

6. Table 5a Benefits-savings in Output Hauling

7. Table 5b Benefit Saving in Input Hauling

8. Table 6. Benefits Savings in Travel Time for Commuters

9. Table 7. Benefits-Newly Cultivated Agricultural land (Optional)

10. Table 8. Benefits-Reduction in Post-Harvest Losses

11. Table 9. Economic Analysis

12. Table 10. Sensitivity Analysis

J. Conclusions and Recommendation

i. ConclusionsThese results show that constructing the road segment across Bayan, San Isidro and Mahaba is technically, socially, environmentally and economically feasible.

ii. Recommendation

It is therefore recommended that construction of the proposed road project will be initiated as soon as possible. It is noted, that the feasible scenario is also anchored on the assumption that efforts will have to be done on the part of the other government agencies like the Department of Agriculture, LGU and the other development agencies of government to converge in the area to promote the expansion of abaca production which has been validated to be suitable and are acceptable to the farmers in the RIA.

ANNEXES

Annex G1. Minutes of consultation with the Datus of Manobo

Annex G1. Continued

Annex G1b. Minutes of public consultation with the residents

Annex G1b. Continued

Annex G2. Environmental Issues and Mitigation Measures Issue

(Potential Impact)

Assessment

Mitigation

Measure

Schedule/ Duration of the Mitigation Measures

Instrument of Implement-ation (POW, Contract, IDP, or O&M Plan)ReaResponsible Unit

Soil erosion and sedimentation management

1. Temporary increase in sedimentation during construction[x] Topography of the road alignment will necessitate massive earthmoving and cutting of clayey or loose topsoil

[x] Cut materials will consist mainly of hard rocks and are unlikely to generate significant sediments[x] Earthmoving/ cutting of slopes to be done during dry months [ x] Proper disposal and compaction of spoils15 days after NTPDED/POW;


2. Landslide/ erosion of exposed road sides resulting in sedimentation of waterways[x] The road will traverse a mountainous area necessitating deep cuts on mountainsides, in certain stations.

[x] The exposed slopes will likely consist of highly erodible loose materials.

[x] Include slope protection works at the following stations:

Puroks Lansones and Santol, Brgy. San Isidro

Sitio San Roque, Brgy. Mahaba

The following types of slope protection will be applied, as deemed appropriate:

Bioengineering with geomat and cover crop; Planting of fast growing shrub species; Riprap; Gabions; Terracing; Concrete protection wallDED/POW


Water quality management

1. Inadequate drainage resulting in flooding or ponding[x] The road will block runoff, resulting in flooding on one side of the road during rainy days[x] Installation of cross drains, particularly in the Brgy site in Brgy. San Isidro

DED/POW


2. Potential contamination of surface and groundwater with oil/grease[x] There will be no significant amount of waste oil/grease[x] Proper handling and disposal of waste oil and greaseDuring the construction periodContractContractor/Assigned Project Engr

3. Potential contamination with human waste[x] Some construction workers would be temporarily housed in a base camp

[x] Workers would be locals and are expected to go home to their respective houses after work[x] Set up adequate latrine/toilet facility at the base campDuring the construction periodContractContractor/Assigned Project Engr.

4. Potential increased use of pesticides due to intensification of cash crop production in the area[x] There is an on-going IPM program of DA in the service area

[x] DA to continue to support IPM program

Capacity Building Plan;

O & M PlanOMA

Air quality management

1. Potential dust/mud nuisance during construction

[x] Roads could become powdery during dry days and muddy during rainy days of the construction period

[x] Access road and/or the construction/ rehabilitation works passes through a populated area[x] Undertake sprinkling of road (including access roads) during dry days, and filling up of potholes during rainy days, especially in residential areas

[x] Set up speed limits for vehicles, especially within residential areasDuring the construction periodContractContractor/Assigned Project Engr

Noise and vibration

1. Potential increase in noise from construction vehicles and blasting operation and equipment [x] Noise associated with construction of FMR will comply with environmental standards. [x] Properly maintain construction vehicles and equipment to reduce excessive noise

[x] Post warning signs in any High Noise Area and limit entry of workers in the area

[x] Locate quarrying and mixing operations away from populated areasDuring the construction periodContractContractor/ Assigned Project Engineer

Ecology management (flora and fauna)

1. Potential acceleration of denudation of the upland/hilly areas due to intensification of crop production[x ] The proposed road will connect to the market upland/hilly areas where farmers are currently practicing erosive farming techniques.

[x] The road connects lowland farms to the market[x ] DA to coordinate with LGU for the introduction of sustainable upland farming systems in the area

Capacity Building PlanOMA

2. Potential increase in encroachments of human activities into the nearby public forest[x] The proposed road will not improve access to the nearby public forest.[ x] Coordinate with DENR for the enactment of ordinance deputizing the local community to enforce forestry lawsCapacity Building Plan

MENRO

Annex Table I1. Computation of Economic Cost of SubprojectFinancial Cost (current prices)Conversion factor/TaxEconomic Cost

Materials /a 121,913,000.00 12%/h110,209,352.00

Equipment /b 33,249,000.00 33,249,000.00

Labor:

Skilled 5,541,500.00 5,541,500.00

Unskilled 6,649,800.00 0.6 /c 3,989,880.00

Subtotal Labor12,191,300.009,531,380.00

Total Base/Direct Cost167,353,300.0019,062,760.00

Overhead, Contingencies and Miscellaneous (OCM) /d15,516,200.0012%/h13,853,750.00

Contractor's Profit /e11,083,000.0011,083,000.00

Total (Base/Direct Cost+OCM+CP)193,952,500.0043,999,510.00

Taxes /f17,732,800.000.00

FS and DED Preparation+ Engineering Supervision /g9,974,700.0012%/h8,905,982.14

Total Cost221,660,000.00259,426,114.14

a/ Assumption: 80% is purchased from market

b/ Assumption: 100% is base cost (no taxes)

c/ Conversion factor for unskilled labor = 0.6

d/ OCM is 12% of base cost if subproject cost is PhP 5 mln below; 9% if PhP 5 mln to PhP 50 mln; 7% if PhP 50 mln to PhP 150 mln; 6% if above PhP 150 mln

e/ Contractor's Profit is 10% if project cost is PhP 5 mln below; 8% otherwise

f/ Taxes is 12% of total mark-up value

g/ FS and DED preparation is 5% of base cost; Engineering supervision is 5% of base cost

h/ 12% represents tax from respective costs

Annex Table I2. Investment and Maintenance CostsCostsUnit0123456789

Investment

Total economic valuecalc259,426,114

Total (Investment)259,426,114---------

Operating

Maintenancecalc353,334353,334353,334353,334353,334565,334353,334353,334353,334

Total (Operating)353,334353,334353,334353,334353,334565,334353,334353,334353,334

Total Inputs259,426,114353,334353,334353,334353,334353,334565,334353,334353,334353,334

Annex Table I2. ContinuedCostsUnit1011121314151617181920

Investment

Total economic valuecalc

Total (Investment)-----------

Operating

Maintenancecalc353,334353,334565,334353,334353,334353,334353,334353,334565,334353,334353,334

Total (Operating)353,334353,334565,334353,334353,334353,334353,334353,334565,334353,334353,334

Total Inputs353,334353,334565,334353,334353,334353,334353,334353,334565,334353,334353,334

a/ Periodic maintenance is approximately +60 of annual maintenance and is undertaken every six yearsAnnex Table I3a. Annual Road Maintenance Unit CostUnit cost (per 1 km)

FinancialConversion factorsEconomic

Gravelled road

Fixed cost:19,280 11,568

Vegetation control a/7,180 0.6 4,308

Cleaning and repair of culverts a/5,066 0.6 3,040

Clearing side ditches a/7,034 0.6 4,220

Climatic loss of gravel28,883 28,883

Total48,163 40,451

Portland Cement Concrete Pavement (PCCP)

Fixed cost:19,280 11,568

Vegetation control a/7,180 0.6 4,308

Cleaning and repair of culverts a/5,066 0.6 3,040

Clearing side ditches a/7,034 0.6 4,220

Climatic loss of gravel b/9,628 9,628

Total28,908 21,196

a/ Assumption is 100% of labor cost

b/ Only 2m (out of 6m for gravel shoulders)

Annex Table I3b. Annual Maintenance CostCostsUnit12345678910

Road length

Gravelled roadkm - - - - - - - -

Portland Cement Concrete Pavement (PCCP)km16.67 16.67 16.67 16.67 16.67 16.67 16.67 16.67 16.67 16.67

Unit Maintenance cost

Gravelled roadPhP

Portland Cement Concrete Pavement (PCCP)PhP21,196 21,196 21,196 21,196 21,196 21,196 21,196 21,196 21,196 21,196

Annual Maintenance cost

Gravelled roadPhP0 0 0 0 0 0 0 0 0 0


Subtotal Annual Maintenance costPhP353,334353,334353,334353,334353,334353,334353,334353,334353,334353,334

Capital maintenance every 6th year a/PhP00000 212,000 0000

Total Annual Maintenance costPhP 353,334 353,334 353,334 353,334 353,334 565,334 353,334 353,334 353,334 353,334

Annex Table I3b. ContinuedCostsUnit11121314151617181920

Road length

Gravelled roadkm - - - - - - - - - -

Portland Cement Concrete Pavement (PCCP)km16.67 16.67 16.67 16.67 16.67 16.67 16.67 16.67 16.67 16.67

Unit Maintenance cost

Gravelled roadPhP


Annual Maintenance cost

Gravelled roadPhP0 0 0 0 0 0 0 0 0 0


Subtotal Annual Maintenance costPhP353,334353,334353,334353,334353,334353,334353,334353,334353,334353,334

Capital maintenance every 6th year a/PhP0212,000 00000212,000 00

Total Annual Maintenance costPhP353,334 565,334 353,334 353,334 353,334 353,334 353,334 565,334 353,334 353,334

a/ Appr. +60% of annual maintenance costAnnex Table I4a.Benefits Vehicle Operating Costs (VOC) SavingsBenefitsUnit12345678910

Motorcycles

Total number d/unit993 993 993 993 993 1,017 1,017 1,017 1,017 1,017

Number of trips per daytrip/day2 2 2 2 2 2 2 2 2 2

Number of days in operation day/year288 288 288 288 288 288 288 288 288 288

VOC Difference /aPhp

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