PROJECT STUDY

GENERAL INFORMATION:
Name of Proponent : OLIVIA DIAO LIM
Address of Proponent: Barangay Opao, Dapitan City
Type of Project
: Sand and Gravel Project
Project Site
: Barangay Opao, Dapitan City
Initial Project Cost
: [P] 500,000.00
PROJECT DESCRIPTION:
The project is quarrying of sand and gravel. The project site was duly
covered by an Environmental Compliance Certificate, duly issued by the
Department of Environment and Natural Resources, Regional Office No. IX,
Zamboanga City. In it, the extraction of sand and gravel in the applied area
shall not exceed the rate of 3,800 MT per annum covering an area of 38,703
square meters. The project site is located at the Dapitan River, Barangay
Opao, Dapitan City. The area surrounding the river is devoted to agriculture
and planted with coconut trees. There is no aesthetic and human interest on
the area nor man-made facilities and activities except for this proposal for
sand and gravel concession.
LOCATION:
The project area is located along the Dapitan River at Barangay Opao,
City of Dapitan, Province of Zamboanga del Norte. It is approximately 18
(18) kilometers from Dapitan City. The site is accessible by any means of
land transportation passing thru the Dipolog-Ozamis National Highway and
thru an unpaved access road. It would take one hour more or less to reach
the area by land transport starting from Dipolog City. Based on the Sketch
Plan, Corner 1 of the area applied is defined by Geographic Coordinated of 8
32 19.0North Latitude and 123 28 40.60East Longitude (Please refer to
the attached survey plan).
FEATURES:
A. River characterization:
The proposed area of operation is a portion of Dapitan River. It is located on
a flat topography, which is on the flood plain where wide river channels can
be found along its course.
The river current is in turbulent flow with an average stream velocity of 3
m/sec. The average width of the river in downstream and upstream end
boundary is 65 meters and maximum in both riverbank embankment is 1.50
meters.
B. Description of the Deposit:
The sand and gravel deposit is composed of different sizes from 0.40 mm
40 cm. It has an approximate composition of 35% boulders, 45% gravel and
20% sand. The deposit is remnant of volcanic rocks and minor floats of
sedimentary rocks. Based on the present configuration of the river, the
average thickness of the sand and gravel deposit is 1.0 meters.

C. Type of Materials:
The lithology of the area is underlain by broad gravel deposits, mostly headsized boulders. The types of materials are mostly terrace gravel deposits of
loosely unconsolidated materials coming from the upstream.
D. Drainage:
The drainage system in the area is attributed to creeks and gullies
contributing to the Dapitan River. It is characterized by dendritic pattern
characteristics of a mlange formation.
E. Geohazard:
In terms of flooding, the areas susceptibility to landslide is classified as very
low to moderate. Areas under this category are usually inundated only
during prolong and extensive rainfall or extreme weather conditions. This
project would help control flooding by dredging or excavating sag materials
at the center of the river, thereby preventing water run off by confining its
flow at the center of the river. River bank protection shall be done by piling
up of boulders in both embankments.
F. Adjacent Lot Description:
The adjacent lot is agricultural land planted with coconut, variety of fruit
trees and other fast growing trees. The area is covered with organic
materials that are prone to mass movement where the water is the main
loosening agent.
G. Resource Sustainability:
The resource available is computed using the straight computation method
by assuming that around 1 meter of deposit is evenly spread throughout the
applied property. The estimated volume is then computed as shown:
Area applied

= 38,703.00 square meters

Approximate Thickness of SAG deposit

=0.8 m.

Assume Waste of 10% of the total volume

Volume of Quarry Material Available
x 90%

=Area x depth of excavation

Volume of Quarry Materials Available

0.80 m. X 0.90

= 38,703.00 sq. m. X

= 27,886.00 Cu. Meters

THE PROPOSAL:
The main objective of the project is to provide construction materials to
meet the demands for various infrastructure projects, both from the private
and the government sector. Second, is to provide employment opportunities
to the people, with special preference to the residents of Barangay Opao,
Dapitan City; Third, Income Generation for LGUs, namely, the Province of

Zamboanga del Norte, the City of Dapitan and Barangay Opao, in terms of
the Extraction Fee that may be collected, to be divided among them at a
ratio of 30:30:40, respectively. On top of this, the National Government will
likewise benefit from the project in terms of the National taxes that shall be
imposed and collected thereon, namely, Excise Tax, Percentage Tax and
Income Tax. Certain fees are likewise charged by the provincial government,
namely, Filing Fee, Site Verification Fee, Cost of Delivery Receipts, etc.
The project has an area of 33,798 square meters bounded as follows:
On
On
On
On

the
the
the
the

North: by the Dapitan River

East : by Private Lands
South : by the Dapitan River
West : by Private Lands

TECHNICAL ASPECT:
The primary product of the project is sand and gravel, mostly headsized boulders. Depending on the demand of the market, labor force, as well
as the weather condition, the rate of production varies. Based upon a study,
there are peak and lull season depending upon the demand for the SAG
materials by external users, particularly contractors of government projects.
Based on experience the months of November and December are likely the
peak season where there is a great demand for SAG Materials considering
that its the end of the calendar year where government funds for contracted
projects are released.
The extension, cannot in any way affect the environmental condition of
the river-ecosystem considering that there are certain conditions of the ECC
that must be met. Moreover, extraction activities are done at limited duration
and that from time to time quarried area are replenished through the natural
action of the river currents.
The area is isolate and no private houses could be seen in the vicinity.
Only towering coconut trees, bamboo species could be seen along both
embankments of the project. It is for the reason that the proponent is
confident that it will not create any social problem to the community, like
pollution and noise.
QUARRYING /LOADING
A. Production Method:
River quarrying is carried out using Heavy Equipment. However,
manual quarrying may also be used to afford livelihood opportunity to the
local residents. Quarried SAG Materials are are then put to designated
stockpile of the ISAG proponent where screening and processing are done to
segreggate the types of materials that would be available for sale to
customers.
B. Personnel Schedule :

Total manpower of the project is 8, excluding those who are engaged

as quaristas and service contractors, if needed. Except for highly technical
positions, local residents are given priority preference of employment.
GENERAL MANAGER
(Olivia D. Lim)

Pollution Control Officer

& Safety Officer
(Brigido Lim)

Quarry Section

Secretary/Liaison
(Olivia D. Lim)

Production/Processing
Section

One (1) Buckhoe

Operator
(Vacant)

One (1) Loader

Operator
(Vacant)

One (1) Crusher

Operator

One (1) Crusher

Operator
(Vacant)

Admin Section/Sales

Disbursing/Accounti
ng
(Vacant)

Target volume per day

day

20 cubic meters per

I. EXTRACTION AND LOADING:

A. Personnel required: (Schedule 1)
Position No. of Men x Rate/Day x Work Week x Months = Total Cost/Yr.
Foreman 1
31,200.00
Laborers 10
48,000.00

x [P] 130

12

= [P]

x [P] 100

12

= [P]

Total Labor Cost

[P] 79,200.00

B. Supplies and Materials: (Schedule 2)

Materials

Quantity

Unit Price

Shovel
20 pcs.
Cement Sacks
500 pcs.
Total Supplies and Materials

P 160.00
P 5.00

Total Cost
[P] 3,200.00
[P] 2,500.00
[P] 5,700.00

2. ROAD REHABILITATION: (Schedule 3)

Regravelling of Road (Mixed sand and Gravel)
3. SITE DEVELOPMENT: (Schedule 4)
Activity

No. Of Men

Tree Planting
5,000.00

Materials

Estimated Cost

150 Assorted Seedlings

[P]

(Bamboo, Gemlena)
PROJECTED ANNUAL INCOME STATEMENT
Gross Sales/Receipts,

(8,000 cu. m. x [P] 50.00)

[P] 400,000.00

Less: Direct Operating Expenses:

1. Labor Cost (Schedule 1)
[P] 79,200.00
2. Supplies and Materials (Schedule 2)
[P] 5,700.00
3. Road Rehab/Maintenance (Schedule 3)
[P] 40,000.00
4. Transportation Expense (Oil and Gasoline)
[P] 50,000.00
5. Site Development Expense (Schedule 4)
[P] 5,000.00
6. Toll Expense (Private roads)
[P] 40,000.00
219,900.00
Net Operating Income
[P]
180,100.00
Less: Direct Taxes d Charges
1. Tax on Sand and Gravel 8,000 cu. m. x [P] 15.00
[P]
120,000.00
2. Excise Tax
2% x [P] 150.00 x 8,000
24,000.00
3. Fees and Charges
2,000.00
Net Income before Income Tax
[P]
34,100.00
MARKET VIABILITY:
The product (sand and gravel) extracted from the project site will be
used to supply the very high demand for construction materials to support
the on-going projects of both the public and the private entities mostly
coming from Dapitan City, Dipolog City and the municipalities of La Libertad,
Rizal and Sibutad, all of the province of Zamboanga del Norte. Regular
customers who will buy in a small volume of SAG materials are those who are
in the business of making hollow blocks. Special customers, meaning, those
who buy in big volumes are contractors of government projects, like the
Montao Realty Development Corporation and the Capili Construction, all
based in Dipolog City.
ENVIRONMENTAL PROFILE:

The project site has no land use except that it is ideal for sand and
gravel concession. Being a river, there are no existing birds and land animals
on the area. During the rainy season the elevation of water in the riverbank
is approximately 1.0 meter and 0.30 meters during the dry season. The
average width of the river during rainy season is more or less 35 meters and
20 meters during dry season.
The type of soil near the project site is mostly mountain soil,
undifferentiated. The terrain is flat leveled to moderate rolling.
No built up areas in the vicinity. Most of the social amenities and
service facilities are located at the heart of Barangay Opao, which is
approximately 800 meters far from the project site.
The barangay is not flood-proned area. During heavy rains, there is no
record that the water overflowed from the riverbanks. Upon inspection by
Environmental Specialist Jun Berberio of the environmental Management
Bureau, sediments caused by big volume of head-sized boulders at the
center of the river channel, thus avoid possible overflowing of water.
Moreover, without those boulders removed it causes water channels to
become shallower thus the tendency to flood.
SOCIO-ECONOMIC PROFILE:
The project site is isolate from the populated area of the barangay. It is
located about 800 meters far from poblacion area. Majority of the people of
barangay Opao are engaged in farming, mostly coco-land, intercropped with
corn. The population of the barangay has somewhat been reduced due to
migration to Manila or abroad, precisely to look for employment
opportunities. There is less opportunity for non-farm livelihood projects in the
barangay. At least, this project of the proponent could help provide
employment for the jobless in the said barangay.
PREDICTION AND ASSESSMENT OF ENVIRONMENTAL IMPACT:
The project helps to provide income, employment and improves the
road condition in the locality. Dust generation during operation is minimal.
This is due to the fact that the extracted sand and gravel are immediately
transported, wet. Screening of and stockpiling of aggregates shall also be
undertaken away from the riverbed to prevent siltation of the river water.
Quarrying shall also be undertaken at the center of the river channel. The
quarried-out areas are usually replenished with new layers of sand and
gravel carried by the natural current of the river.
The mitigating measures herein proposed by the proponent, are
envisioned to avert any negative environmental impact, in terms of
biodiversity and soil conservation. The social impact of the project is more of,
but not limited to, the promotion of employment, livelihood and enterprise
opportunities for the people in the barangay.
MITIGATING MEASURES:
1. TREE PLANTING ACTIVITES:

Planting of appropriate trees like Gmlena, bamboo, mahogany are

made along the riverbanks to prevent soil erosion and help contain floods. If
mortality occurs replanting shall be done immediately. Tree planting is one of
the vegetative measures to control erosion. An annual budget for this activity
is earmarked at [P] 5,000.00 Pesos, to answer for the cost of the materials,
labor and for its maintenance, to ensure the growth of the trees.
2.

ROAD MAINTENANCE:

Roads, leading to the quarry site is shall be improved. If not, widened,

gravelling is necessary for the convenience of the users. Good access road is
essentially a major ingredient to this type of project. An annual budget of [P]
40,000.00 Pesos will be earmarked for the purpose.
3.

RESTORATION OF QUARRIED AREAS:

Restoration of quarried areas is always done in this kind of activity to

prevent accident of equipment from falling on deep areas causing major
damage. Thus, extraction activities are made in uniform grade. Quarrying
activities are done in al limited duration so as to have the quarried areas
replenished through the action of the river currents. There is not much to be
restored in the project site, since only, since only manual labor is employed
for the extraction of sand and gravel.
In worst cases, contour rock walling may also be adopted on the
embankments to prevent soil erosion. This is done by putting piles of stones
and rocks along the contour or embankment of the river channel. These
structures are reinforced with gas on the upslope and with trees or shrubs.
This technique is very much applicable in the project site where rocks and
stones are abundant.
Done, this 1st day of April, 2005, at barangay Dampalan, Dapitan City,
Philippines.

NOEL W. RECAMARA
SAG Proponent

PROJECT STUDY
GENERAL INFORMATION:
Name of Proponent : OLIVIA DIAO LIM

Address of Proponent: Barangay Opao, Dapitan City

Type of Project
: Sand and Gravel Project
Project Site
: Barangay Opao, Dapitan City
Initial Project Cost
: [P] 500,000.00
PROJECT DESCRIPTION:
The project is quarrying of sand and gravel. The project site was duly
covered by an Environmental Compliance Certificate, duly issued by the
Department of Environment and Natural Resources, Regional Office No. IX,
Zamboanga City. In it, the extraction of sand and gravel in the applied area
shall not exceed the rate of 3,800 MT per annum covering an area of 38,703
square meters. The project site is located at the Dapitan River, Barangay
Opao, Dapitan City. The area surrounding the river is devoted to agriculture
and planted with coconut trees. There is no aesthetic and human interest on
the area nor man-made facilities and activities except for this proposal for
sand and gravel concession.
LOCATION:
The project area is located along the Dapitan River at Barangay Opao,
City of Dapitan, Province of Zamboanga del Norte. It is approximately 18
(18) kilometers from Dapitan City. The site is accessible by any means of
land transportation passing thru the Dipolog-Ozamis National Highway and
thru an unpaved access road. It would take one hour more or less to reach
the area by land transport starting from Dipolog City. Based on the Sketch
Plan, Corner 1 of the area applied is defined by Geographic Coordinated of 8
32 19.0North Latitude and 123 28 40.60East Longitude (Please refer to
the attached survey plan).
FEATURES:
A. River characterization:
The proposed area of operation is a portion of Dapitan River. It is located on
a flat topography, which is on the flood plain where wide river channels can
be found along its course.
The river current is in turbulent flow with an average stream velocity of 3
m/sec. The average width of the river in downstream and upstream end
boundary is 65 meters and maximum in both riverbank embankment is 1.50
meters.
B. Description of the Deposit:
The sand and gravel deposit is composed of different sizes from 0.40 mm
40 cm. It has an approximate composition of 35% boulders, 45% gravel and
20% sand. The deposit is remnant of volcanic rocks and minor floats of
sedimentary rocks. Based on the present configuration of the river, the
average thickness of the sand and gravel deposit is 1.0 meters.
C. Type of Materials:
The lithology of the area is underlain by broad gravel deposits, mostly headsized boulders. The types of materials are mostly terrace gravel deposits of
loosely unconsolidated materials coming from the upstream.

D. Drainage:
The drainage system in the area is attributed to creeks and gullies
contributing to the Dapitan River. It is characterized by dendritic pattern
characteristics of a mlange formation.
E. Geohazard:
In terms of flooding, the areas susceptibility to landslide is classified as very
low to moderate. Areas under this category are usually inundated only
during prolong and extensive rainfall or extreme weather conditions. This
project would help control flooding by dredging or excavating sag materials
at the center of the river, thereby preventing water run off by confining its
flow at the center of the river. River bank protection shall be done by piling
up of boulders in both embankments.
F. Adjacent Lot Description:
The adjacent lot is agricultural land planted with coconut, variety of fruit
trees and other fast growing trees. The area is covered with organic
materials that are prone to mass movement where the water is the main
loosening agent.
G. Resource Sustainability:
The resource available is computed using the straight computation method
by assuming that around 1 meter of deposit is evenly spread throughout the
applied property. The estimated volume is then computed as shown:
Area applied

= 38,703.00 square meters

Approximate Thickness of SAG deposit

=0.8 m.

Assume Waste of 10% of the total volume

Volume of Quarry Material Available
x 90%

=Area x depth of excavation

Volume of Quarry Materials Available

0.80 m. X 0.90

= 38,703.00 sq. m. X

= 27,886.00 Cu. Meters

THE PROPOSAL:
The main objective of the project is to provide construction materials to
meet the demands for various infrastructure projects, both from the private
and the government sector. Second, is to provide employment opportunities
to the people, with special preference to the residents of Barangay Opao,
Dapitan City; Third, Income Generation for LGUs, namely, the Province of
Zamboanga del Norte, the City of Dapitan and Barangay Opao, in terms of
the Extraction Fee that may be collected, to be divided among them at a
ratio of 30:30:40, respectively. On top of this, the National Government will
likewise benefit from the project in terms of the National taxes that shall be
imposed and collected thereon, namely, Excise Tax, Percentage Tax and

Income Tax. Certain fees are likewise charged by the provincial government,
namely, Filing Fee, Site Verification Fee, Cost of Delivery Receipts, etc.
The project has an area of 33,798 square meters bounded as follows:
On
On
On
On

the
the
the
the

North: by the Dapitan River

East : by Private Lands
South : by the Dapitan River
West : by Private Lands

TECHNICAL ASPECT:
The primary product of the project is sand and gravel, mostly headsized boulders. Depending on the demand of the market, labor force, as well
as the weather condition, the rate of production varies. Based upon a study,
there are peak and lull season depending upon the demand for the SAG
materials by external users, particularly contractors of government projects.
Based on experience the months of November and December are likely the
peak season where there is a great demand for SAG Materials considering
that its the end of the calendar year where government funds for contracted
projects are released.
The extension, cannot in any way affect the environmental condition of
the river-ecosystem considering that there are certain conditions of the ECC
that must be met. Moreover, extraction activities are done at limited duration
and that from time to time quarried area are replenished through the natural
action of the river currents.
The area is isolate and no private houses could be seen in the vicinity.
Only towering coconut trees, bamboo species could be seen along both
embankments of the project. It is for the reason that the proponent is
confident that it will not create any social problem to the community, like
pollution and noise.
PRODUCTION COST - QUARRYING /LOADING
Target volume per day
day

20 cubic meters per

I. EXTRACTION AND LOADING:

A. Personnel required: (Schedule 1)
Position No. of Men x Rate/Day x Work Week x Months = Total Cost/Yr.
Foreman 1
31,200.00
Laborers 10
48,000.00

x [P] 130

12

= [P]

x [P] 100

12

= [P]

Total Labor Cost

[P] 79,200.00

B. Supplies and Materials: (Schedule 2)

Materials

Quantity

Unit Price

Total Cost

Shovel
20 pcs.
Cement Sacks
500 pcs.
Total Supplies and Materials

P 160.00
P 5.00

[P] 3,200.00
[P] 2,500.00
[P] 5,700.00

2. ROAD REHABILITATION: (Schedule 3)

Regravelling of Road (Mixed sand and Gravel)
3. SITE DEVELOPMENT: (Schedule 4)
Activity

No. Of Men

Tree Planting
5,000.00

Materials

Estimated Cost

150 Assorted Seedlings

[P]

(Bamboo, Gemlena)
PROJECTED ANNUAL INCOME STATEMENT
Gross Sales/Receipts,

(8,000 cu. m. x [P] 50.00)

[P] 400,000.00

Less: Direct Operating Expenses:

1. Labor Cost (Schedule 1)
[P] 79,200.00
2. Supplies and Materials (Schedule 2)
[P] 5,700.00
3. Road Rehab/Maintenance (Schedule 3)
[P] 40,000.00
4. Transportation Expense (Oil and Gasoline)
[P] 50,000.00
5. Site Development Expense (Schedule 4)
[P] 5,000.00
6. Toll Expense (Private roads)
[P] 40,000.00
219,900.00
Net Operating Income
[P]
180,100.00
Less: Direct Taxes d Charges
1. Tax on Sand and Gravel 8,000 cu. m. x [P] 15.00
[P]
120,000.00
2. Excise Tax
2% x [P] 150.00 x 8,000
24,000.00
3. Fees and Charges
2,000.00
Net Income before Income Tax
[P]
34,100.00
MARKET VIABILITY:
The product (sand and gravel) extracted from the project site will be
used to supply the very high demand for construction materials to support
the on-going projects of both the public and the private entities mostly
coming from Dapitan City, Dipolog City and the municipalities of La Libertad,
Rizal and Sibutad, all of the province of Zamboanga del Norte. Regular
customers who will buy in a small volume of SAG materials are those who are
in the business of making hollow blocks. Special customers, meaning, those
who buy in big volumes are contractors of government projects, like the
Montao Realty Development Corporation and the Capili Construction, all
based in Dipolog City.

ENVIRONMENTAL PROFILE:
The project site has no land use except that it is ideal for sand and
gravel concession. Being a river, there are no existing birds and land animals
on the area. During the rainy season the elevation of water in the riverbank
is approximately 1.0 meter and 0.30 meters during the dry season. The
average width of the river during rainy season is more or less 35 meters and
20 meters during dry season.
The type of soil near the project site is mostly mountain soil,
undifferentiated. The terrain is flat leveled to moderate rolling.
No built up areas in the vicinity. Most of the social amenities and
service facilities are located at the heart of Barangay Opao, which is
approximately 800 meters far from the project site.
The barangay is not flood-proned area. During heavy rains, there is no
record that the water overflowed from the riverbanks. Upon inspection by
Environmental Specialist Jun Berberio of the environmental Management
Bureau, sediments caused by big volume of head-sized boulders at the
center of the river channel, thus avoid possible overflowing of water.
Moreover, without those boulders removed it causes water channels to
become shallower thus the tendency to flood.
SOCIO-ECONOMIC PROFILE:
The project site is isolate from the populated area of the barangay. It is
located about 800 meters far from poblacion area. Majority of the people of
barangay Opao are engaged in farming, mostly coco-land, intercropped with
corn. The population of the barangay has somewhat been reduced due to
migration to Manila or abroad, precisely to look for employment
opportunities. There is less opportunity for non-farm livelihood projects in the
barangay. At least, this project of the proponent could help provide
employment for the jobless in the said barangay.
PREDICTION AND ASSESSMENT OF ENVIRONMENTAL IMPACT:
The project helps to provide income, employment and improves the
road condition in the locality. Dust generation during operation is minimal.
This is due to the fact that the extracted sand and gravel are immediately
transported, wet. Screening of and stockpiling of aggregates shall also be
undertaken away from the riverbed to prevent siltation of the river water.
Quarrying shall also be undertaken at the center of the river channel. The
quarried-out areas are usually replenished with new layers of sand and
gravel carried by the natural current of the river.
The mitigating measures herein proposed by the proponent, are
envisioned to avert any negative environmental impact, in terms of
biodiversity and soil conservation. The social impact of the project is more of,
but not limited to, the promotion of employment, livelihood and enterprise
opportunities for the people in the barangay.
MITIGATING MEASURES:

1. TREE PLANTING ACTIVITES:

Planting of appropriate trees like Gmlena, bamboo, mahogany are
made along the riverbanks to prevent soil erosion and help contain floods. If
mortality occurs replanting shall be done immediately. Tree planting is one of
the vegetative measures to control erosion. An annual budget for this activity
is earmarked at [P] 5,000.00 Pesos, to answer for the cost of the materials,
labor and for its maintenance, to ensure the growth of the trees.
2.

ROAD MAINTENANCE:

Roads, leading to the quarry site is shall be improved. If not, widened,

gravelling is necessary for the convenience of the users. Good access road is
essentially a major ingredient to this type of project. An annual budget of [P]
40,000.00 Pesos will be earmarked for the purpose.
3.

RESTORATION OF QUARRIED AREAS:

Restoration of quarried areas is always done in this kind of activity to

prevent accident of equipment from falling on deep areas causing major
damage. Thus, extraction activities are made in uniform grade. Quarrying
activities are done in al limited duration so as to have the quarried areas
replenished through the action of the river currents. There is not much to be
restored in the project site, since only, since only manual labor is employed
for the extraction of sand and gravel.
In worst cases, contour rock walling may also be adopted on the
embankments to prevent soil erosion. This is done by putting piles of stones
and rocks along the contour or embankment of the river channel. These
structures are reinforced with gas on the upslope and with trees or shrubs.
This technique is very much applicable in the project site where rocks and
stones are abundant.
Done, this 1st day of April, 2005, at barangay Dampalan, Dapitan City,
Philippines.

NOEL W. RECAMARA
SAG Proponent