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EXECUTIVE SUMMARY
PROJECT DESCRIPTION
Upon the request of the Department of Public Works and Highways (DPWH), the United States
Agency for International Development (USAID), thru the Advancing Philippine Competitiveness
(COMPETE) Project, engaged the Consultant to provide Services for the Feasibility Study for the
Laguna Lakeshore Expressway- Dike Project (hereinafter called the Project).
The Project aims to provide a high-standard highway-cum-dike that will facilitate traffic flow and
mitigate flooding in the western coastal communities along Laguna Lake, from Bicutan/Taguig in
Metro Manila through Calamba to Los Baos in Laguna. The Project is intended to be implemented
under a Public-Private Partnership (PPP) scheme.
The proposed Laguna Lakeshore Expressway- Dike Project consists of the following components:
1.
2.
Reclamation Component
The proposed reclamation component of the Project is to finance the construction of the entire
project through proceeds from the sale of part of the reclaimed lands. This project component is
an amended reclamation proposal which was previously subjected to detailed feasibility study
by then Public Estates Authority (PEA) and now Philippine Reclamation Authority or PRA.
The proposed reclamation component will have an initial 300 hectares up to maximum of 700
hectares coverage, as indicated by the results of the feasibility study stage.
SOCIO-ECONOMIC ANALYSIS
The government is optimistic that the country will continue to have brighter economic prospects for
the year 2014. This would require concerted efforts from various government agencies and LGU
officials. The NSCB (Agri-business sector) listed down several recommendations to reduce poverty
and increase competitiveness of the countrys economy such as: (1) creation of at least 2 millions of
jobs in the agriculture sector; (2) rehabilitation/repair of existing irrigation system and other
infrastructure facilities; (3) promotion of off-and-non-farm enterprises including agri-processing in
the agribusiness lands to increase and stabilize rural income.
ADB projected that the countrys GDP is estimated to recover to 4.8% in 2012 and 5.0% in 2013
(after 3.7% in 2011). In ADBs report released on 11 April 2012, it stated that increased public
spending, investment, and private consumption will lift growth in the Philippines over the next 2
1-1
FINAL REPORT
years. However, long-standing structural weaknesses will remain an obstacle to reaching the
governments 7-8% economic growth target.
The CALABARZON region has great potentials to boost its economic growth and sustain its efforts
in generating more employment opportunities in the succeeding years due to presence of industrial
companies, and other business establishments. It has also vast tracts of land that could be utilized for
expansion of industrial/business centers.
The DOT is optimistic that the number of tourist arrivals in the country will continue to steadily
increase in 2014, with the concerted efforts that it has been undertaking with other government
agencies and private sector. The United Nations World Tourism Organization (UNWTO) projected
that, international travelers will nearly double in size in the succeeding years. Increase of tourist
arrivals is expected in the country in 2013 and onwards. The target of the DOT is 4.6 million tourist
arrivals in the country by 2013.
It is also expected that there will be an increase in subdivisions or residential communities existing in
the project areas or real estate business in the project areas due to improved road networks.
Considering the rapid population growth in the project areas due to presence of industrial estates and
commercial/business centers, it is expected that demands for housing units would be higher.
Migration is fast in the project areas, and brighter economic growth in the areas is one of the key
factors that could attract people from adjacent areas in Laguna or NCR to move to Laguna province.
Increase in business investors and boost in tourism industry in the Project Area will redound to
providing more employment opportunities for households. Small and medium-scale businesses in the
region/provinces will increase once the proposed projects are implemented and completed. More
commercial establishments will be established, and households will have the brighter prospects for
increase in income.
With all these positive socio-economic indicators observed, the development and implementation of
the proposed PPP Projects is worthy of consideration.
TRAFFIC ANALYSIS
The results of the traffic analysis undertaken for the Project suggest that the implementation of the
Proposed Projects will exhibit promising and encouraging results in terms of traffic diversion,
generation and development since the alignments of the toll way sections will traverse an area where
land expansion for mixed development could be possible, the tourism industry and its accompanying
and related business activities could grow and spread even to the remote communities of the Project
areas, while flooding, traffic congestion and existing insufficient traffic network system could be
resolved effectively.
The results of the traffic analysis indicate that the traffic volume along the proposed Project Area will
increase significantly with varying magnitude as the proposed line traverses from its interface with the
Proposed C6 Tollway in Bicutan up to its terminus in Los Baos, Laguna.
The projected traffic volume for the Project for the year 2020 at toll rate of PhP7.00 per kilometer is
presented in the following table.
Projected Traffic Volume
Segment
Bicutan to San Pedro IC
Vehicle
Class 1
Class 2
Class 3
Total
Class 1
Class 2
Year 2020
33976
9250
3853
47080
39301
10700
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FINAL REPORT
Class 3
Total
Class 1
Class 2
Class 3
Total
Class 1
Class 2
Class 3
Total
Class 1
Class 2
Class 3
Total
4457
54457
21003
5718
2382
29103
9788
2665
1110
13562
16422
4471
1863
22756
From the results of the traffic projection and considering the DPWH standard to require widening
once the traffic volume to capacity ratio reaches 0.6, the Project will require six (6) lanes ultimate
development. The Table below shows the projected traffic volumes along the different segments of
the existing roadways located within the Project Influence Area and those of along the Proposed PPP
Projects.
Without the
Project
% Impact
183908
161645
-12%
181415
162439
-10%
Southwoods to Carmona
154999
132700
-14%
Carmona to Greenfields
150269
130885
-13%
112974
103018
-9%
152236
145378
-5%
Eton to Cabuyao
138770
133682
-4%
Cabuyao to Canlubang
136499
133682
-2%
Canlubang to Calamba
133146
132827
0%
83239
81603
-2%
89145
72410
-19%
66477
52338
-21%
42899
36789
-14%
47204
28389
-40%
Cabuyao to Canlubang
53136
50124
-6%
Canlubang to Calamba
41863
38279
-9%
48030
25637
-47%
Road Section
South Luzon Expressway
There will be an average of 12% or around 20,000 vpd reductions in traffic volume along the South
Luzon Expressway from Alabang to Greenfields area in Mamplasan, Bian while there will be an
average of 4% or 2000 vpd reduction from Bian to Calamba, all in Laguna.
Along the Manila South Road or National Road, average traffic volume reduction is 18% or around
15,000 vpd from Alabang to Sta. Rosa while a remarkable 40% or around 19,000 vpd reduction in
traffic volume along the segment, Sta. Rosa to Cabuyao. Along the Calamba to Los Baos
Expressway, there will be a significant 47% or around 23,000 vpd reduction in traffic volume along
the existing National Road.
With the planned development of around 7,000 hectares of land at Canlubang and Silang areas, the
developers have indicated the need to expand the South Luzon Expressway from three (3) lanes to
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FINAL REPORT
four (4) lanes each direction. The LLED, on the other hand, will serve proposed land development
along its corridor.
TECHNICAL DUE DILIGENCE
The technical due diligence undertaken for the Project included the conduct of supplemental
topographic and bathymetric surveys and soil investigations. The topographic and bathymetric
surveys were undertaken to establish the location of the proposed expressway dike in terms of
horizontal and vertical alignment along the lake offshore and shoreland areas while the soil
investigation was conducted to determine the capacity of the existing soil formation to accommodate
future horizontal and vertical developments.
From the results of the soils investigations and from those that were undertaken during the business
case studies, the foundation system for the vertical structures and waterway and expressway travelway
structures should be installed with piles, preferably bored piles with length from 20 meters to 30
meters.
In identifying material sources for the construction of the proposed project components specifically
the fill materials for the reclamation development and expressway- dike, the results of previous
comprehensive soil exploration in Year 1991 were referred to inasmuch as the scope covered almost
the entire Laguna Lake area. The previous material source exploration indicated positive results and
from the findings, it was estimated that around 220 million cubic meters of sands and fill materials
exist along the areas identified. As of the moment, the locations of potential source of fill materials
have yet to be exploited such that these materials are still available for use in the proposed
reclamation project. It is intended that all materials will be sourced from the vicinity of the Project
area preferably within the Lake to minimize disturbance to communities that will be affected by the
transport of materials which could come from other areas. Furthermore, the system of sourcing
materials from the Lake area is the most economical as compared to transporting them by trucks from
inland sources as the latter will eventually damage existing pavements and create traffic congestion
along the routes.
The hydrologic analysis of the Project area as well the hydraulic analysis and design of the required
structures for the expressway- dike and flood control system reveal that the height of the lake water
will increase by 0.01 meter if the proposed reclamation development and expressway dike will be
installed inside the Laguna Lake area while maintaining the Lake water level with pumping facilities
at Elev. 12.5 between the shoreland and expressway dike. This will result in a maximum of 0.08meter increase in the level of the Lake water. These observations will require the provision of sixteen
(16) waterway openings where sluice gates will be installed while eight (8) regulation ponds will be
provided beside the pump stations along the lakeshore expressway dike. The flood control system was
designed at a 60- year return period in accordance with the Master Plan for Flood Control and
Management in Metro Manila while the reclamation development and expressway dike components
were designed with a minimum finished grade elevation of 15.20 meters or one (1) meter above the
identified maximum flood level of 14.20 meters at 100 Year return period.
From the results of the technical due diligence supported by field surveys and investigations, the other
components of the expressway dike were developed to include the pavement structure component,
Interchanges and link roads, rest areas and appurtenant traffic safety devices.
The proposed reclamation development will entail a project cost of PhP 57.9 Billion while the
expressway- dike to include the flood control system will cost PhP 64.9 Billion, both at 2013 prices.
Construction will take six (6) years after a design period of one (1) year.
BUSINESS DEVELOPMENT OPTIONS
Research made on the current real property trend in Metro Manila indicates encouraging results.
Interviews with large real estate developers also reveal positive results as far as the market trend on
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FINAL REPORT
real estate development and selling are concerned. The continuous rise in real estate development
could be attributed to the steady expansion of the Philippine economy despite of damages sustained
by some parts of the country due to severe climatic phenomenon and other natural disasters that have
occurred in the country recently. With continuous population growth as well as continuing growth in
the per capita income buoyed by increasing overseas employment and remittance, increase in real
estate demand could be anticipated.
Based on its location and development in the Projects vicinity, the proposed LLED Reclamation
landform shall consist of seven (7) reclaimed islands, each of which shall be of approximately one
hundred hectares (100.0 has.) in surface area and located within distinct city waters i.e., two (2)
islands for Taguig City, one (1) island for Paraaque City and four (4) islands for Muntinlupa City.
The 700.0 has. gross reclamation area is to be approved by the LLDA, but that can still be increased if
it fulfills the requirements set by the LLDA in consideration of possible impact areas i.e. the current
total LLED gross reclamation area of 700.0 has. must fully comply with pre-set LLDA conditions.
While it is desirous for the intended 700.0 has. LLED reclamation development not to directly
compete with other large developments in the MMA, the following basic types of development must
be fully planned for (and possibly be designated as the primary development magnets or
centerpieces), to wit:
1.
2.
3.
4.
high-density residential;
business/ office/ commercial;
transportation- or transit-oriented developments; and
leisure, recreational and selected indoor/ outdoor recreational or entertainment facilities.
The LLED Reclamation structure will be a combination of geometric and curvilinear RROW and
pedestrian corridor patterns linking the various LLED Reclamation development clusters. The
curvilinear road system is preferred to a gridiron development pattern to create better vistas and
variegated viewing experiences of both the remaining natural and the proposed built environments.
The RROWs strive to maximize lot frontages or face the esplanades across and along the water edge.
At least four (4) main bridges, excluding possible outdoor mall bridges (solely for pedestrians) shall
link the 5 islands. A ferry terminal can be introduced in the island at Muntinlupa City which shall host
the main CBD.
To initially gauge the acceptability of the proposed project, a preliminary market sounding was
undertaken with a number of potential investors, developers, toll operators, and financial institutions
The results of the preliminary market sounding indicate that while the proposed development of the
reclamation project is acceptable from the viewpoint of the prospective proponents and investors,
there are, likewise reservations expressed in terms of technical, marketability and environmental
aspects. There were reclamation projects implemented around the country but mostly located near the
seashore. First of its kind, a pioneering project around an existing lake, which is considered as
environmentally critical location and being administered by a number of local government officials
with differing opinions and perspectives, the Project will face some serious and tough challenges
during development and implementation stages.
The proposed project is envisioned as a high end development similar to the Bonifacio Global City
and Makati CBD such that the lots to be generated by the land development will be offered at an
initial selling price of PhP 55,000.00 to 75,000.00 per square meter, which when subjected to
financial analysis would produce encouraging results for the prospective developers to consider.
ECONOMIC EVALUATION
Road infrastructure projects, such as the one being analyzed, yield a multitude of benefits to the users
of both the new and the existing road network which cannot be quantified in the financial analysis.
This includes stimulation of inter-regional development, reduction in traffic congestion, savings in
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FINAL REPORT
vehicle operating expense, savings in travel time, improvement in traffic safety and savings due to
avoided flooding.
The economic evaluation used is in accordance with the methodology for economic feasibility studies
for road infrastructure projects of the Philippine Government. The analysis employs the with- and
without-the-project approach. The economic internal rate of return (EIRR) is the principal quantitative
tool used for measuring the projects economic feasibility and is complemented by the net present
value (NPV) of the project and the benefit-cost ratio.
Financial investments and operating costs are converted into economic values by excluding transfer
payments such as taxes and applying a shadow price to all foreign exchange components and to the
cost of labor. The project evaluation period considered is thirty (30) years. The total economic cost of
the project is estimated at PhP 121,974 million, the breakdown of which is presented by Table 6.1.
Table 6.1: Total Economic Cost, In PhP Million
Cost Items
1. Project Construction
2. Detailed Design
3. Construction supervision
4. Independent consultant
5. Agency supervision
6. Physical Contingency
7. Land Acquisition
Grand Total
Expressway-Dike
56,398
1,484
1,484
990
143
2,820
2,154
65,473
Reclamation
49,145
1,345
1,345
897
1,146
2,623
56,502
Total
105,543
2,830
2,830
1,886
1,289
5,443
2,154
121,974
The main economic benefits from the Project will be in the form of (a) reductions in vehicle operating
costs (expressed in Net Present Value, of PhP5,071 million) due to faster travel speeds and (b) savings
in travel time (expressed in Net Present Value, of PhP8,653 million), likewise due to faster travel
speeds. The Project also includes a flood control component which is designed to reduce if not to
eliminate flooding within low-lying areas close to the Laguna Lake. Due to the flood control
component of the Project, economic benefits will also be generated in the form of (a) reduction in
flood damages on properties (estimated at PhP 6,007 million per year and an NPV of PhP 20,017
million including indirect benefits), and (b) increase in land productivity in the affected area due to its
protection from flooding (estimated at about PhP 31,200 million at the start of the Project operation
period, or a Present Value of PhP 10,199 million). The Reclamation Component will provide the land
spaces which will generate significant benefits to the regional and national economy. These economic
benefits are provided in terms of the value-added from the productivity of the new land created by the
reclamation (considering the schedule of sales of the reclaimed land (initially at PhP 55,000 per
square meter) over the 15-year period, the Present Value of the yearly land productivity values is PhP
118,825 million).
The economic benefit for the project was computed based on 2013 base and constant prices. The
computation used the traffic forecast using PhP7.00 base toll when the project is completed.
The expressway-dike was evaluated independently (without the reclamation component) and the
results of the evaluation suggest that the expressway-dike by itself is economically viable with an
EIRR of 15.20%.
The results of the evaluation further indicates, that when taken as a whole project, the expresswaydike and the reclamation component, project is considered economically viable with an EIRR of
27.20%.
ES - 6
FINAL REPORT
Sensitivity tests performed on the Project reveal that even at the worst scenario of 20% increase in
costs and a simultaneous 20% decrease in benefits, the LLEDP would still remain economically
feasible at 19.00% EIRR.
FINANCIAL EVALUATION
As a revenue-generating public sector project, the projects financial viability is measured by its
computed financial internal rate of return (FIRR). The project is considered financially viable if its
FIRR is at least equal to the cost of capital used to implement it. Costs and revenues used in the
calculation of the FIRR are in current prices for them to be comparable to the cost of capital, also
expressed in current prices. The computed FIRR will indicate the commercial viability of the project
and will specify whether or not the project needs government financial support.
The evaluation is anchored on the premise that the project will be implemented and operated through
a PPP scheme, particularly under the Build-Transfer-Operate (BTO) arrangement.
The estimated investment requirement for the expressway-dike is PhP 83.369 billion. This includes
right- of- way (ROW) acquisition costs and allowances for price increase due to inflation. On the
other hand, the estimated total investment requirement for the land reclamation component of the
project is PhP 74.624 billion. These amounts incorporate cost of physical and price contingencies, as
well as allowances for price increase due to inflation.
These cost components are expected to be financed by the private sector, excluding 50% of the cost of
the Independent Consultant which will be financed by the Government. The private funds will be
sourced from investors equity and from borrowings, with an assumed equity-loan mix of 30%-70%,
which is the usual current practice.
The project has both operating and maintenance costs and non-operating expenses. Operating and
maintenance costs for the Expressway Dike include the cost of personnel services, repair and
maintenance of the expressway, floodgates and inland channel, the cost of utilities, administrative and
other miscellaneous expenses. For the reclamation component, the operating and maintenance costs
include the marketing cost and transfer cost, which incorporates the cost of transferring land titles.
Marketing cost is assumed to be at 10% of sales, while transfer cost is estimated at 7% of sales. These
costs are first estimated in 2013 prices and are converted to current prices by assuming an annual
inflation rate of 5%. These costs are first estimated in 2013 prices and are converted to current prices
by assuming an annual inflation rate of 5%.
Revenues from expressway dike operation will mainly be generated from toll fees. These are
calculated based on projected vehicle traffic volumes and proposed toll rates, which correspond to
PhP 7.00 per kilometer for Class 1 vehicles in Year 2020 inflated at the rate of 5% per year until Year
2022, start of operation. Aside from this, other sources of revenues will be from commercial areas that
will be made available for food and service concessioners. On the other hand, revenues from the land
reclamation component will then mainly be generated from land sales, which will start at PhP 55,000
per square meter but expected to increase by about Php11,786 annually, until the lot price reaches
four times its original value in 2033 PhP 220,000, based on the result on the results of the market
study conducted for the Project.
The results of the financial evaluation performed for the proposed Expressway- Dike component
alone indicate a low equity IRR of 7.04%, which suggests that the implementation of the proposed
Project will not be financially viable unless financial support is provided. For the reclamation
component, the equity IRR is 32.6% with NPV of PhP 24.92 Billion. Considering Concessionaire
and Governments investment, the Project equity IRR is 19.93%, which shows that earnings from
this component could support the development works of the Expressway Dike. Evaluating the Project
as a whole, the Equity IRR is 18.95%.
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FINAL REPORT
A stakeholders analysis was performed and the results indicate that each stakeholder will have high
Equity IRR and NPV as presented hereafter.
Stakeholders Analysis
LLDA/PRA (net of
remittance to National
Treasury, with
assumed water rights
value)
Concessionaire
National
Government
10,946,714,214
136,880,235,284
5,111,777,533
9,277,079,075
18.95%
56.63%
19.96%
91.76%
LGUs
Ground
Subsidence
Liquefaction
High intensity earthquakes
cause ground subsidence
Potential occurrence of
liquefaction
triggered
rhythmic pounding during
driving
Geology
Ground
Subsidence
Liquefaction
High intensity earthquakes
cause ground subsidence
and
Duration and
Type of Impacts
Intensity
of Impacts
Long-term,
Negative
Significant
Short-term,
Negative
Significant
Long-term,
Negative
Significant
Long-term,
Negative
Significant
will
soil
by
pile
and
will
Mitigation/Enhancement Measures
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FINAL REPORT
Impacts
Duration and
Type of Impacts
Intensity
of Impacts
Water Quality
Increased siltation / water
column turbidity
Freshwater Ecology
Plankton communities
Increase in turbidity in the water
column would slightly increase
the mortality rates among fish
larvae/juveniles including other
planktonic organisms
Freshwater Ecology
Soft
Bottom
Benthic
Communities
Complete
smothering
and
burying of all benthic organisms
at the footprint of the
expressway road dike project
and reclamation area.
Fishes and Invertebrates
Increased siltation and turbidity
would cause adult fish to
Mitigation/Enhancement Measures
aerial photographs for terrain features relevant
to subsidence and fissures.
Undertake surface investigation to include
mapping of geologic and soil units, fissures,
faults or other geologic structures, geomorphic
features and surfaces, deformation of engineered
structures due to land subsidence or earth
fissures both on and beyond the site as
appropriate; and
Undertake subsurface investigation.
Below
ground soil improvement techniques include but
not limited to: vertical drains, sand compaction
piles, and the lime/cement deep mixing method.
Above ground soil improvement techniques
shall include MSE embankments, granular or
sand compaction piles, vertical drains, and the
lime/cement deep mixing method, piling and
micro piling, replacement of unsuitable material
including sand compaction piles, rod (vibro)
compaction, sand drains and preloading
Long-term,
Negative
Significant
Short-term,
Negative
Significant
Short-term,
Negative
Adverse/
Significant
Short-term,
Negative
(Localized)
Minimal
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FINAL REPORT
Impacts
migrate to other suitable areas.
Smaller species that are unable
to migrate would chronically
exposed to high turbidity may
suffocate as their gills become
clogged with sediments
Fish Capture Fishery
Disruption of fishing activities
on some fisherfolks
Duration and
Type of Impacts
Intensity
of Impacts
Mitigation/Enhancement Measures
populations (clam, snail, shrimp)
Short-term,
Negative
Negligible
Short-tern,
Negative
Minimal
Long-term,
Negative
Significant
Short-term,
Negative
Minimal
Possible
increase
in
the
concentration levels of SO2 and
NO2 due to exhaust gas
emissions
from
various
construction
vehicles,
equipment, and machineries
Short-term,
Negative
Minimal
Short-term,
Negative
Minimal
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FINAL REPORT
Impacts
Duration and
Type of Impacts
Intensity
of Impacts
The People
SECTOR: LANDOWNER,
STRUCTURE OWNERS
(Direct)
Loss of land to be acquired for
widening of access roads going to
and from the expressway dike
Increase in value of remaining
land due to advantage of frontage
SECTOR: FISH CAGE
OPERATORS (Direct)
Loss of fish cage structures along
the belt where expressway dike
will be constructed
SECTOR: LESSEES OF
SHORELAND AREAS (Direct)
Loss of residential /commercial/
recreational structures of LLDA
Lessees along the shoreland areas
Mitigation/Enhancement Measures
at permissible level;
High noise generating construction activities
will be undertaken during the daytime only to
minimize noise disturbance to nearby
residential and other noise sensitive receptors
areas;
Construction areas must be enclosed with metal
sheets to contain noise within the site and
maintain noise level at permissible limit; and
PMS of the construction equipment and
machineries will be strictly complied with to
ensure that these are in good working
conditions at all times
Long-term,
Negative
Low
Long-term,
Negative
High
Long-term,
negative
Low
Short-term,
negative
High
Long-term,
Negative
High
Long-term,
Negative
High
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FINAL REPORT
Impacts
Loss of fishing grounds in the
Taguig-Muntinblupa area due to
the reclamation project
The People
Loss of income due to reclamation
of land in Taguig and Muntinlupa
Duration and
Type of Impacts
Long-term,
Negative
Intensity
of Impacts
High
Long-term,
Negative
High
Mitigation/Enhancement Measures
FOR TAGUIG & MUNTINLUPA FISHER
FOLKS:
Provision of alternative livelihood such as the
construction of a fish port and cold storage
facility, in between Taguig and Muntinlupa.
Port shall be managed and operated by a
Cooperative consisting of displaced fisher folks
of Taguig and Muntinlupa
Short-term,
negative
High
Operational Phase
Land Use and Classifications
Informal Settlements
Once the inland from Taguig to
Muntinlupa, which is roughly 120
ha (12 km x 100 m) dry up, the
area would be prone to
encroachment
Long-term,
Negative
Significant
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FINAL REPORT
Hydrology
Reduced flooding along the
western urban corridor of Laguna
Lake
Freshwater Ecology
Fishes and Invertebrates
Embankment structure of the of
expressway dike which is made up
of rock boulders will enhancement
aquatic habitat in the lake
Long-term,
Positive
Significant
Long-term,
Positive
Significant
Long-term,
Positive
Significant
Long-term,
Negative
High
DPWH
DPWH, by virtue of its mandate under the Administrative Code of 1987, Title V Public
Works and Highways, can undertake on its own the planning, design, construction, maintenance
or operation of infrastructure projects such as but not limited to highways, flood control and
water resource development systems, except those specialized projects undertaken by
Government corporate entities.
2.
3.
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FINAL REPORT
amended under Executive Order No. 654, including but not limited to the functions to reclaim
land, to develop, manage and dispose of lands, buildings, estates and other forms of real
property arising from reclamation; to provide, operate and administer infrastructure facilities
and services on the above mentioned reclaimed properties and to authorize through the rules of
public bidding, reclamation projects by other entities.
4.
Based on the mandate of each respective agency involved either in the development, implementation
or regulation of infrastructure projects, the Proposed Laguna Lakeshore Expressway Dike Project
could be implemented as follows;
Project Implementation Arrangements
The Project may be implemented either directly by the national government through the DPWH
and/or the LLDA and the PRA; or through Public-Private-Partnership or under a Joint Venture
Arrangement. Considering the limitations of the national government to fund the Project entirely
through direct government appropriations, the Project may have to secure loan financing or
development assistance for certain project components, such as the dike/flood control structure and
the road sub-base foundation, and to encourage the private sector to finance viable aspects of the
project most especially the reclamation component, including the development of the road network
and surface and the required safety structures along the entire length and area of the project road.
Implementation through the Public Private Partnership is allowed under RA 6957 as amended by
R.A. No. 7718, which authorizes the financing, construction, operation and maintenance of
infrastructure projects by the private sector. The law itself recognizes the indispensable role of the
private sector as the main engine for national growth and development and provide the most
appropriate incentives to mobilize private resources for the purpose of financing the construction,
operation, and maintenance of infrastructure and development projects normally financed and
undertaken by the Government.
Contractual Agreement Structure
The Project under this Contract Package will be carried out within the PPP framework in accordance with
the Build-Operate-Transfer (BOT) Law (Republic Act or RA No. 6957, as amended by RA No. 7718) and
its Implementing Rules and Regulations (IRR). In particular, the DPWH, with supporting agreements
with the Laguna Lake Development Authority (LLDA) and the Toll Regulatory Board (TRB), will bid
out and implement the Project using the BTO contractual arrangement or modality for the ExpresswayDike Component, and BOO or BT arrangement for the Reclamation Component. See Annex 10.1 for
draft Memorandum of Agreement among the DPWH, LLDA and PRA, Annex 10.2 for draft
Memorandum of Agreement among the DPWH, TRB and CMMTC (C6 Phase 2 proponent), Annex 10.3
for draft Memorandum of Agreement between DPWH and TRB, and Annex 10.4 for the Draft
Transaction Documents (Invitation to Bid, Instructions to Bidders, Minimum Performance Standards and
Specifications and the Concession Agreement).
JF Cancio & Associates
in Assoc. with FDCCE&A, CO. & PROCONSULT ENGINEERS, CO.
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FINAL REPORT
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