Study on the Project for Construction of Davao-Samal Bridge in

Study on Economic Partnership Projects in Developing Countries in FY2015

Study on the Project for Construction of Davao-Samal Bridge in

Republic of the Philippines

Final Report

February 2016

Prepared for: Ministry of Economy, Trade and Industry

Prepared by: Katahira & Engineers International

Nippon Engineering Consultants Co., Ltd. Nippon Steel & Sumitomo Metal Corporation

Preface

This project summarizes the result of Study on Economic Partnership Projects in Developing Countries in FY

2015 entrusted to Katahira & Engineers International, Nippon Engineering Consultants Co., Ltd., and Nippon

Steel & Sumitomo Metal Corporation.

It is titled Study on the Project for Construction of Davao-Samal Bridge in Republic of the Philippines and

has been carried out in order to assess the feasibility of construction of a Davao-Samal Bridge between Samal

Island and Davao City with a total investment amount of 45 billion Yen.

We sincerely hope this report will contribute to the implementation of the aforementioned project and provide

practical information to the Japanese parties concerned.

February 2016

Katahira & Engineers International

Nippon Engineering Consultants Co., Ltd.

Nippon Steel & Sumitomo Metal Corporation

Pan-P

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Location ofProject Bridge

Dav

ao -

Pan

abo

Roa

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Island GardenCity of SamalDavao City

Circumferential Road

N

0 1 2 3km

Dava

o Int

erna

tiona

l Airp

ort

National Road

Ferry Route

Boat Route for Passenger

Legend

Davao International SeaportSasa Seaport

Davao City

Philippines

Location Map

Davao City

Southeast Asia Mindanao

Samal Island

Perspective

Project Site Photographs (1/3)

Construction Site of the Main Bridge (Davao Side)

Construction Site of the Main Bridge (Samal Side)

Construction Site of the Main Bridge (Pakiputan Strait)

Bridge Approach Road End Point (Samal Side)

Construction Site of Approach Viaduct (Davao-Panabo Road) (NorthSouth)

Construction Site of Approach Viaduct (Davao-Panabo Road) (SouthNorth)

Construction Site of Approach Viaduct (Samal Island)

Construction Site of ApproachViaduct (Samal Island)


Ferry Terminal (Davao Side) Ferry Deck Condition

Vehicle Queue at Ferry Terminal (Davao Side) Vehicle Queue from Ferry Terminal (Samal Side)

Freight Vessel at Sasa International Seaport Truck Boarding on Ferry (Davao Side)

Davao Panabo Road Samal Circumferential Road


Site Visit with Director of DPWH Region XI Commercial Bus Plying the Route from Davao to Samal Island and vice versa via the Ferry

Traffic Condition in Davao City Northern Part of Pakiputan Strait

Public Market in Samal Island Ferry Terminal (Samal Side)

Stakeholders Meeting at DPWH Region XI Office Stakeholders Meeting in Samal Island

List of Abbreviations

Abbreviations Official Name

AASHTO American Association of State Highway and Transportation Officials

ADB Asian Development Bank

ASEAN Association of Southeast Asian Nations

B/C Benefit Cost Ratio

BIMP-EAGA Brunei Darussalam-Indonesia-Malaysia-The Philippines East ASEAN Growth Area

BOD Bureau of Design

BPO Business Process Outsourcing

CAAP Civil Aviation Authority of the Philippines

DBCC Development Budget Coordination Committee

DENR Department of Environment and Natural Resources

DIDP Davao Integrated Development Program

DOF Department of Finance

DOTC Department of Transportation and Communications

DPWH Department of Public Works and Highways

DTI Department of Trade and Industry

ECC Environmental Compliance Certificate

EIA Environmental Impact Assessment

EIRR Economic Internal Rate of Return

EIS Environmental Impact Statement

EMB Environmental Management Bureau

EOJ Embassy of Japan

EPRMP Environmental Performance Report and Management Plan

ESSD Environmental and Social Safeguards Division

FIRR Financial Internal Rate of Return

GDP Gross Domestic Product

GOP Government of Philippines

HWL High Water Level

IEE Initial Environmental Examination

IGACOS Island Garden City of Samal

JBIC Japan Bank for International Cooperation

JETRO Japan External Trade Organization

JICA Japan International Cooperation Agency

Abbreviations Official Name

MPA Marine Protected Area

NA Not Available

NEDA National Economic Development Authority

NPV Net Present Value

NSCB National Statistical Coordination Board, Philippines

ODA Official Development Assistance

OFW Overseas Filipino Workers

PAGASA Philippines Atmospheric, Geophysical and Astronomical Services Administration

PAPs Project Affected Persons

PC Prestressed Concrete

PCDG Prestressed Concrete Deck Girder

PDR Project Description Report

PHP Philippine Pesos

PPA Philippine Port Authority

PPP Public Private Partnership

PS Planning Service

RAP Resettlement Action Plan

RC Reinforced Concrete

ROW Right-of-Way

SBHS Steel for Bridge High Performance Structure

SPSP Steel Pipe Sheet Pile

SRNH Strong Republic Nautical Highway

STEP Special Terms for Economic Partnership

TTC Travel Time Cost

UPMO Unified Project Management Office

VOC Vehicle Operation Costs

WACC Weighted Average Cost Of Capital

Study on Economic Partnership Projects in Developing Countries in FY2015

Study on the Project for Construction of Davao-Samal Bridge in Republic of the Philippines

Table of Contents

Preface

Location Map

Perspective

Project Site Photographs

List of Abbreviation

Table of Contents

Executive Summary

(1) Background and Necessity of the Project ............................................................................................... S-1

(2) Concepts to Determine Scope of Work of the Project ............................................................................ S-2

(3) Outline of the Project ............................................................................................................................ S-13

(4) Evaluation of Environmental and Social Impacts ................................................................................. S-21

(5) Implementation Schedule ..................................................................................................................... S-24

(6) Feasibility of the Project Implementation ............................................................................................. S-25

(7) Technical Advantages of Japanese Companies ..................................................................................... S-26

(8) Project Location Map ........................................................................................................................... S-26

Chapter 1 Overview of the Host Country and Sector

1.1 Economic and Financial Conditions ........................................................................................................ 1-1

1.1.1 Outline ............................................................................................................................................. 1-1

1.1.2 Economic Condition ........................................................................................................................ 1-1

1.1.3 Trade ................................................................................................................................................ 1-4

1.1.4 Financial Conditions ........................................................................................................................ 1-6

1.1.5 Economic Relations with Japan ....................................................................................................... 1-6

1.2 Overview of the Target Sectors of the Project ......................................................................................... 1-9

1.2.1 Current Status of Traffic Infrastructure of Mindanao Island ............................................................ 1-9

1.2.2 Present Road State in Davao and IGACOS ................................................................................... 1-13

1.2.3 Status of Facilities Crossing the Strait ........................................................................................... 1-15

1.3 Overview of the Project Site .................................................................................................................. 1-17

1.3.1 Outline of Davao City and Island Garden City of Samal (IGACOS) ............................................ 1-17

1.3.2 Geomorphology, Geology and Climate ......................................................................................... 1-17

1.3.3 Land Use ........................................................................................................................................ 1-23

1.3.4 Population ...................................................................................................................................... 1-26

1.3.5 Regional Economy ......................................................................................................................... 1-26

1.3.6 Project Site Condition .................................................................................................................... 1-28

Chapter 2 Study Methodology

2.1 Scope of the Study ................................................................................................................................... 2-1

2.1.1 Objective of the Study ..................................................................................................................... 2-1

2.1.2 Traffic Demand Forecast ................................................................................................................. 2-1

2.1.3 Establishment of Design Criteria ..................................................................................................... 2-1

2.1.4 Road and Bridge Planning and Outline Design ............................................................................... 2-1

2.1.5 Environmental and Social Consideration ......................................................................................... 2-1

2.1.6 Construction Planning and Cost Estimation .................................................................................... 2-2

2.1.7 Economic and Financial Analysis .................................................................................................... 2-2

2.1.8 Project Implementation Schedule .................................................................................................... 2-2

2.2 Study Method and Composition of the Study Team ................................................................................ 2-3

2.2.1 Study Flow ....................................................................................................................................... 2-3

2.2.2 Composition of the Study Team ....................................................................................................... 2-3

2.3 Study Schedule ........................................................................................................................................ 2-4

2.3.1 Study Schedule ................................................................................................................................ 2-4

2.3.2 Field Survey Itinerary ...................................................................................................................... 2-4

2.3.3 List of Organizations/Parties Concerned with the Project ............................................................... 2-7

Chapter 3 Justification, Objectives and Technical Feasibility of the Project

3.1 Background and Necessity of the Project ................................................................................................ 3-1

3.1.1 Background of the Project ............................................................................................................... 3-1

3.1.2 Necessity of the Project ................................................................................................................... 3-1

3.1.3 Preceding Studies ............................................................................................................................. 3-1

3.1.4 Related Development Plans ............................................................................................................. 3-2

3.1.5 Expected Effects of the Project Implementation .............................................................................. 3-3

3.1.6 Priority of the Project ....................................................................................................................... 3-3

3.2 Efficient Use of Energy ........................................................................................................................... 3-4

3.3 Result of Studies to Determine the Scope of Work of the Project ........................................................... 3-6

3.3.1 Traffic Demand Forecast ................................................................................................................. 3-6

3.3.2 Natural Conditions ......................................................................................................................... 3-24

3.3.3 Design Conditions ......................................................................................................................... 3-34

3.3.4 Comparison of Alternative Routes ................................................................................................. 3-43

3.4 Overview of the Project Plan ................................................................................................................. 3-52

3.4.1 Outline of the Proposed Project ..................................................................................................... 3-52

3.4.2 Outline Design ............................................................................................................................... 3-58

3.4.3 Construction Planning ................................................................................................................... 3-63

Chapter 4 Evaluation of Environmental and Social Impacts

4.1 Present Environmental and Social Conditions ......................................................................................... 4-1

4.1.1 Present Conditions ........................................................................................................................... 4-1

4.1.2 Future Forecast (Without Project Scenario) ..................................................................................... 4-8

4.2 Expected Environmental Improvement by Implementation of the Project .............................................. 4-9

4.3 Environmental and Social Impacts by Implementation of the Project ................................................... 4-10

4.3.1 Items for Environmental and Social Considerations ...................................................................... 4-10

4.3.2 Comparative Study of Alternatives ................................................................................................ 4-18

4.3.3 Outline of the Discussions with Implementing Organization and Local Stakeholders .................. 4-20

4.4 Legal and Institutional Frameworks for Environmental and Social Impacts ......................................... 4-24

4.4.1 Legal Framework for Environmental and Social Impacts ............................................................. 4-24

4.4.2 Necessity of EIA and Its Procedures .............................................................................................. 4-25

4.4.3 Land Acquisition and Resettlement ............................................................................................... 4-29

4.5 Measures to be taken by the Philippines Side ........................................................................................ 4-34

4.5.1 Environmental Considerations ....................................................................................................... 4-34

4.5.2 Social Considerations .................................................................................................................... 4-34

Chapter 5 Financial and Economic Evaluation

5.1 Estimated Project Cost ............................................................................................................................. 5-1

5.1.1 Base Conditions ............................................................................................................................... 5-1

5.1.2 Construction Cost Estimate ............................................................................................................. 5-1

5.1.3 Project Cost ...................................................................................................................................... 5-2

5.1.4 Operation and Maintenance Cost ..................................................................................................... 5-4

5.2 Preliminary Economic and Financial Evaluation .................................................................................... 5-5

5.2.1 Preliminary Economic Evaluation ................................................................................................... 5-5

5.2.2 Preliminary Financial Evaluation .................................................................................................. 5-15

Chapter 6 Planned Project Schedule

6.1 Implementation Schedule ........................................................................................................................ 6-1

Chapter 7 Implementing Organization

7.1 Outline of the Project Implementing Agency .......................................................................................... 7-1

7.2 Project Implementation Organization ...................................................................................................... 7-2

Chapter 8 Advantages of Japanese Construction Technologies .......................................................................... 1

8.1 Competitiveness of Japanese Construction Technologies in the International Market ............................ 8-1

8.1.1 Characteristics of the Project Site Condition ................................................................................... 8-1

8.1.2 Main Bridge Type ............................................................................................................................ 8-1

8.1.3 Main Pier Foundation Type ............................................................................................................. 8-3

8.1.4 Bridge Structure Schemes without Japanese Construction Technologies ........................................ 8-4

8.2 Construction Material and Equipment procured from Japan ................................................................... 8-5

8.2.1 Major Goods to be Procured from Japan ......................................................................................... 8-5

8.2.2 Major Goods and Services to be Procured from Japan .................................................................... 8-5

Appendix

Appendix 1 Minutes of Stakeholder/Public Consultation Meetings

Appendix 2 Area Status and Clearance of Proposed Samal Bridge

Appendix 3 Details of Negotiation on Requesting to Impose Navigational Clearance at Pakiputan Strait

List of Tables

Table i Assumptions for the Economic Evaluation ..................................................................................... S-3

Table ii Economic Effects of the Construction of Proposed Bridge ............................................................ S-4

Table iii Input Data for Financial Analysis ................................................................................................... S-5

Table iv Tariff Level for Proposed Bridge .................................................................................................... S-5

Table v A Comparison of Alternative Project Bridge Routes ...................................................................... S-8

Table vi Comparison of Bridge Types ........................................................................................................ S-12

Table vii Summary of the Project Cost ........................................................................................................ S-17

Table viii Cost of Goods to be Procured from Japan .................................................................................... S-18

Table ix Results of Economic Evaluation ................................................................................................... S-18

Table x (1) Results of Sensitivity Analysis (Scenario 1: No toll) .................................................................... S-19

Table x (2) Results of Sensitivity Analysis (Scenario 2: Same as Ferry Tariff) .............................................. S-19

Table x (3) Results of Sensitivity Analysis (Scenario 3: 150% of Ferry Tariff) .............................................. S-19

Table xi Results of the Financial Analysis .................................................................................................. S-20

Table xii Estimation of Weighted Average Capital Cost (WACC) ............................................................... S-20

Table xiii Estimation of Weighted Average Capital Cost (WACC) by Type of Loan ................................... S-20

Table xiv Results of Sensitivity Analysis (Real Term) (Scenario 2: Same as Ferry Tariff) .......................... S-21

Table xv Results of Sensitivity Analysis (Real Term) (Scenario 3: 150% of Ferry Tariff) .......................... S-21

Table xvi Outline of Involuntary Resettlement and Land Acquisition ......................................................... S-23

Table xvii Project Implementation Schedule ................................................................................................. S-25

Table 1-1 Outline of the Philippines ................................................................................................................ 1-1

Table 1-2 Economic Indicator in 2008 to 2014 ................................................................................................ 1-2

Table 1-3 GDP by Industry in 2010 to 2014 .................................................................................................... 1-2

Table 1-4 Foreign Trade from 2005 to 2014 .................................................................................................... 1-4

Table 1-5 Current Account (international balance basis) ................................................................................. 1-4

Table 1-6 Export and Import by Major Commodity (custom clearance basis) ................................................ 1-5

Table 1-7 Transition of Export and Import with Japan from 2010 to 2014 (custom clearance basis) ............. 1-6

Table 1-8 National Road Development Situation (2014) ............................................................................... 1-10

Table 1-9 Soil Groups by Topographic Position, Davao City ........................................................................ 1-20

Table 1-10 Climate of Davao City ................................................................................................................... 1-23

Table 1-11 Existing Land Use, Davao City 2011 ............................................................................................. 1-23

Table 1-12 Existing Land Use, IGACOS ......................................................................................................... 1-24

Table 1-13 Agricultural Area Devoted to Crop Production, IGACOS (2006) ................................................. 1-25

Table 1-14 Population Distribution .................................................................................................................. 1-26

Table 1-15 Ratio of GDP for Each Sector ........................................................................................................ 1-26

Table 1-16 Economic Situation of Davao Region ............................................................................................ 1-27

Table 2-1 Member of the Study Team .............................................................................................................. 2-3

Table 2-2 Study Schedule ................................................................................................................................ 2-4

Table 2-3 Schedule of the First Field Survey ................................................................................................... 2-5

Table 2-4 Schedule of the Second Field Survey .............................................................................................. 2-6

Table 2-5 Schedule of the Third Field Survey ................................................................................................. 2-6

Table 2-6 List of the Visited Organizations ..................................................................................................... 2-7

Table 3-1 Project Components Recommended by Previous F/S in 2006......................................................... 3-2

Table 3-2 Estimated amount of Fuel Consumption and Emission of Carbon Dioxide by Idling on 2025 ....... 3-4

Table 3-3 Per-capita Carbon Dioxide Emission Volume and Equivalent Value ............................................... 3-5

Table 3-4 Vehicle and Passenger Traffic by Ferry and Boat ............................................................................ 3-7

Table 3-5 (1) Origin and Destination of Vehicle Traffic between Samal Island to Davao City and

Other Regions (Unit: Vehicle/Day) ................................................................................................ 3-10

Table 3-5 (2) Origin and Destination of Passenger Traffic between Samal Island to Davao City and other

Regions .......................................................................................................................................... 3-10

Table 3-6 (1) Comparison of Traffic Volume between Davao City Samal Island in 2012 and 2015 ................ 3-15

Table 3-6 (2) Comparison of Traffic Volume by Type between Davao City Samal Island in 2012 and 2015 .. 3-15

Table 3-7 Past Trend of GDP (2000-2014) .................................................................................................... 3-16

Table 3-8 Assumed Cases of Future GDP Growth ........................................................................................ 3-18

Table 3-9 Elasticity Value of Traffic Demand ................................................................................................ 3-19

Table 3-10 Growth Rate of Traffic Demand (%) ............................................................................................. 3-20

Table 3-11 Future Traffic Demand of Normal Traffic Using Ferry

(Before Diversion to the Proposed Bridge) ................................................................................... 3-20

Table 3-12 Parameters of Diversion Curve (AASHTO Model) ....................................................................... 3-21

Table 3-13 Alternative Scenarios for Toll Rate of the Proposed Bridge .......................................................... 3-21

Table 3-14 Diversion Rate of the Proposed Bridge Route ............................................................................... 3-22

Table 3-15 Projected Average Daily Traffic Volume (ADT) on the Proposed Bridge

after being Diverted from Ferry (In Case of Scenario 2) ............................................................... 3-22

Table 3-16 Rate of Generated Traffic under Alternative Scenarios ................................................................. 3-23

Table 3-17 Traffic Demand Forecast on Proposed Bridge (Scenario 1: No Toll Charge for the Bridge) ........ 3-23

Table 3-18 Traffic Demand Forecast on Proposed Bridge

(Scenario 2: Toll Charge is the same as the Existing Ferry Tariff) ................................................ 3-24

Table 3-19 Traffic Demand Forecasted on Proposed Bridge

(Scenario 3: Toll Charge is 150 % as High as the Existing Ferry Tariff) ....................................... 3-24

Table 3-20 Climate in Davao ........................................................................................................................... 3-32

Table 3-21 Record of Major Earthquakes ........................................................................................................ 3-34

Table 3-22 Design Speed of Urban Arterial Road of DPWH, AASHTO and JRA Specifications .................. 3-35

Table 3-23 Minimum Radius of Horizontal Curve .......................................................................................... 3-35

Table 3-24 Maximum Gradient ........................................................................................................................ 3-35

Table 3-25 Cross Fall ....................................................................................................................................... 3-36

Table 3-26 Maximum Superelevation .............................................................................................................. 3-36

Table 3-27 Geometric Design Standards for the Project .................................................................................. 3-37

Table 3-28 Alternatives of Cross Section ........................................................................................................ 3-38

Table 3-29 Tide Level List ............................................................................................................................... 3-41

Table 3-30 Concrete Specification ................................................................................................................... 3-42

Table 3-31 Comparison of Alternative Routes ................................................................................................. 3-44

Table 3-32 Comparison of Foundation Types .................................................................................................. 3-45

Table 3-33 Comparison between PC Box Girder and Steel Truss Bridge ........................................................ 3-48

Table 3-34 Approach Viaduct Plan (Types and Spans) .................................................................................... 3-51

Table 3-35 Slope Section Length Limit ........................................................................................................... 3-53

Table 3-36 Approach Viaduct Superstructure Dimensions .............................................................................. 3-60

Table 3-37 Approach Viaduct Substructure Dimensions and Work Quantities ............................................... 3-61

Table 3-38 Approach Viaducts and Davao Interchange ................................................................................... 3-69

Table 4-1 Protected Area of Davao Region ..................................................................................................... 4-2

Table 4-2 Flora of Samal Island ....................................................................................................................... 4-5

Table 4-3 Outline of Involuntary Resettlement and Land Acquisition ............................................................ 4-7

Table 4-4 The Result of Comparative Study .................................................................................................. 4-18

Table 4-5 Meeting with Related Department and Organizations ................................................................... 4-20

Table 4-6 Explanation and Discussion with Local Residents ........................................................................ 4-21

Table 4-7 Important Laws and Manuals of PEISS ......................................................................................... 4-24

Table 4-8 Important Laws and Manuals of PEISS ......................................................................................... 4-24

Table 4-9 Summary of Environmentally Critical Projects (ECPs) ................................................................ 4-26

Table 4-10 Summary of Environmentally Critical Areas (ECAs) .................................................................... 4-26

Table 4-11 Summary of Project Category, EIA Report Types, Decision Documents, Deciding Authorities

and Processing Duration (New and Single Project) ....................................................................... 4-28

Table 4-12 Project thresholds for coverage screening and categorization ....................................................... 4-28

Table 4-13 Relevant Laws on Land Acquisition and Involuntary Resettlement in the Philippines ................. 4-29

Table 4-14 DPWH Department Order and Manuals for Land Acquisition and Resettlement ......................... 4-30

Table 4-15 Estimated compensation policy ..................................................................................................... 4-33

Table 5-1 (1) Summary of the Project Cost (including price contingencies) ......................................................... 5-3

Table 5-1 (2) Summary of the Project Cost (excluding price contingencies) ........................................................ 5-4

Table 5-2 Annual Operation and Maintenance Costs ...................................................................................... 5-5

Table 5-3 Assumptions for the Economic Evaluation ...................................................................................... 5-6

Table 5-4 Economic Effects of the Construction of Proposed Bridge ............................................................. 5-7

Table 5-5 Motorization Rate under Alternative Scenarios ............................................................................... 5-8

Table 5-6 Travel Times for the Without Project and With Project Cases .................................................... 5-9

Table 5-7 Unit Travel Time Cost (TTC) .......................................................................................................... 5-9

Table 5-8 Unit Vehicle Operating Cost (VOC) (2015) .................................................................................... 5-9

Table 5-9 Unit Cost for Ferry and its Facilities.............................................................................................. 5-10

Table 5-10 Ratio of Generated Traffic to Normal Traffic under Alternative Scenarios ................................... 5-10

Table 5-11 Expenditures by Tourists in the Philippines (2015) ....................................................................... 5-11

Table 5-12 Unit Benefit of Tourists in IGCS (2015) ........................................................................................ 5-11

Table 5-13 Results of Economic Evaluation .................................................................................................... 5-12

Table 5-14 (1) Cash Flow of Benefit / Cost Stream (Scenario 1: Toll Free) ......................................................... 5-12

Table 5-14 (2) Cash Flow of Benefit / Cost Stream (Scenario 2: Same as Ferry Tariff) ....................................... 5-13

Table 5-14 (3) Cash Flow of Benefit / Cost Stream (Scenario 3: 150 % of Ferry Tariff) ...................................... 5-14

Table 5-15 (1) Results of Sensitivity Analysis (Scenario 1: Toll Free) ................................................................. 5-15

Table 5-15 (2) Results of Sensitivity Analysis (Scenario 2: Same as Ferry Tariff) ............................................... 5-15

Table 5-15 (3) Results of Sensitivity Analysis (Scenario 3: 150 % of Ferry Tariff) .............................................. 5-15

Table 5-16 Input Data for Financial Analysis .................................................................................................. 5-16

Table 5-17 Tariff Level for Proposed Bridge ................................................................................................... 5-16

Table 5-18 Results of the Financial Analysis ................................................................................................... 5-18

Table 5-19 Estimation of Weighted Average Capital Cost (WACC) ................................................................ 5-18

Table 5-20 Estimation of Weighted Average Capital Cost (WACC) by Type of Loan .................................... 5-19

Table 5-21 Financial Cash Flow of Cost /Revenue (Scenario2) ...................................................................... 5-19

Table 5-22 Results of Sensitivity Analysis (Real Term) (Scenario 2) .............................................................. 5-20

Table 5-23 Results of Sensitivity Analysis (Real Term) (Scenario 3) .............................................................. 5-20

Table 6-1 Project Implementation Schedule .................................................................................................... 6-1

Table 8-1 Major Japanese ODA Bridge Projects Adopted SPSP Foundation Type ......................................... 8-3

Table 8-2 Major Goods to be Procured from Japan ...................................................................................... 8-5

Table 8-3 Major Goods & Services to be Procured from Japan ................................................................... 8-5

List of Figures

Figure i Traffic Demand Forecast on Proposed Bridge by Scenario ............................................................ S-2

Figure ii Traffic Demand Forecast on Proposed Bridge by Trip Purpose ..................................................... S-3

Figure iii Outline Topographical Map ............................................................................................................ S-6

Figure iv Navigation Conditions .................................................................................................................... S-7

Figure v Typical Cross Section ..................................................................................................................... S-7

Figure vi Alternative Routes of the Project Bridge ........................................................................................ S-8

Figure vii Final Route of the Project Bridge ................................................................................................. S-10

Figure viii Profile the Project Road ................................................................................................................ S-14

Figure ix Side View of the Main Bridge ...................................................................................................... S-15

Figure x Side View of the Approach Viaducts ............................................................................................ S-16

Figure xi Location Map ................................................................................................................................ S-27

Figure 1-1 GDP Share by Industries in 2010 to 2014 ........................................................................................ 1-3

Figure 1-2 Population Changes in 2010 to 2015 ............................................................................................... 1-3

Figure 1-3 Financial Condition from 2010 to 2015 ........................................................................................... 1-6

Figure 1-4 Component of Export Classification in 2014 ................................................................................... 1-7

Figure 1-5 Component of Import Classification in 2014 ................................................................................... 1-7

Figure 1-6 Road Network of the Philippines and Region XI ............................................................................ 1-9

Figure 1-7 Davao Bypass Project .................................................................................................................... 1-10

Figure 1-8 Major Ports and Container Terminals in Mindanao Island ............................................................ 1-11

Figure 1-9 Nautical Highways Network in the Philippines (SRNH) ............................................................... 1-12

Figure 1-10 Airports in Mindanao Island .......................................................................................................... 1-12

Figure 1-11 Project Bridge and Its surrounding Roads ..................................................................................... 1-13

Figure 1-12 Topographic Map of Davao City ................................................................................................... 1-18

Figure 1-13 Slope Map of Davao City .............................................................................................................. 1-18

Figure 1-14 Slope Map of IGACOS .................................................................................................................. 1-19

Figure 1-15 Soil Map of Davao City ................................................................................................................. 1-20

Figure 1-16 Soil Suitability of IGACOS ........................................................................................................... 1-21

Figure 1-17 Climate Map of the Philippines ..................................................................................................... 1-22

Figure 1-18 Risk to Typhoons ........................................................................................................................... 1-22

Figure 1-19 Existing Land Use Map, Davao City ............................................................................................. 1-24

Figure 1-20 Existing General land Use Map, IGACOS .................................................................................... 1-25

Figure 2-1 Study Flow ....................................................................................................................................... 2-3

Figure 3-1 Traffic Survey Sites ......................................................................................................................... 3-6

Figure 3-2 (1) Hourly Variation of Vehicle Traffic using Ferry (September, 2015) ................................................ 3-8

Figure 3-2 (2) Hourly Variation of Passenger Traffic using Ferry and Boat (September, 2015) ............................. 3-9

Figure 3-3 Composition of Vehicle Traffic using Ferry (September 2015) ..................................................... 3-10

Figure 3-4 Trip Purpose of Passengers and Vehicle Users .............................................................................. 3-11

Figure 3-5 Waiting Times for Passengers and Vehicle Users .......................................................................... 3-12

Figure 3-6 Willing to Use For Proposed Bridge .............................................................................................. 3-13

Figure 3-7 Willing to Pay for the Proposed Bridge ......................................................................................... 3-14

Figure 3-8 Flow Chart of Traffic Demand Forecast ........................................................................................ 3-16

Figure 3-9 Past Trend of GDP and Multi-Regression Model .......................................................................... 3-17

Figure 3-10 Future Predicted GDP .................................................................................................................... 3-18

Figure 3-11 Outline Topographical Map ........................................................................................................... 3-25

Figure 3-12 Boring Survey Locations ............................................................................................................... 3-26

Figure 3-13 Boring Log (BH-1) ........................................................................................................................ 3-27




Figure 3-17 Boring Log at Davao Panabo Road ............................................................................................ 3-30

Figure 3-18 Risk to Typhoons ........................................................................................................................... 3-31

Figure 3-19 Active Fault in the Southeastern Part of Mindanao ....................................................................... 3-33

Figure 3-20 Navigation Conditions ................................................................................................................... 3-39

Figure 3-21 Aviation Limits .............................................................................................................................. 3-40

Figure 3-22 Cross Section of the River ............................................................................................................. 3-41

Figure 3-23 Alternative Routes of the Project Bridge ....................................................................................... 3-43

Figure 3-24 Final Route of the Project Bridge .................................................................................................. 3-45

Figure 3-25 Approach Viaduct Layout Plan (Davao side) ................................................................................ 3-50

Figure 3-26 Approach Viaduct Layout Plan (Samal side) ................................................................................. 3-50

Figure 3-27 Horizontal Alignment (Davao Side) .............................................................................................. 3-52

Figure 3-28 Horizontal Alignment (Samal Side) ............................................................................................... 3-53

Figure 3-29 Profile of the Project Road ............................................................................................................. 3-54

Figure 3-30 Cross Section of the Main Bridge .................................................................................................. 3-55

Figure 3-31 Cross Section of the Approach Viaduct (Davao Side, Steel Bridge).............................................. 3-55

Figure 3-32 Cross Section of the Approach Viaduct (Davao Side, Concrete Bridge) ....................................... 3-56

Figure 3-33 Cross Section of the Approach Viaduct (Samal Side) .................................................................... 3-56

Figure 3-34 Side View of the Main Bridge ....................................................................................................... 3-56

Figure 3-35 Side View of the Approach Viaduct ............................................................................................... 3-57

Figure 3-36 Cross Section of the Main Bridge (Span Center and Pier) ............................................................ 3-58

Figure 3-37 SPSP Foundation Plan ................................................................................................................... 3-58

Figure 3-38 Approach Viaduct (Along Davao-Panabo Road) ........................................................................... 3-59

Figure 3-39 Approach Viaduct (Main Bridge Approach) .................................................................................. 3-59

Figure 3-40 Outline of SPSP Foundation .......................................................................................................... 3-63

Figure 3-41 Work Procedures of SPSP Foundation ........................................................................................... 3-64

Figure 3-42 Bored Pile Foundation Structure .................................................................................................... 3-65

Figure 3-43 Bored Pile Construction Method ................................................................................................... 3-65

Figure 3-44 Work Procedures of Bored Pilling ................................................................................................. 3-66

Figure 3-45 Erection of Bridge Side Span ......................................................................................................... 3-67

Figure 3-46 Erection of the Bridge Center Span ............................................................................................... 3-68

Figure 3-47 PC Girder Erection ........................................................................................................................ 3-69

Figure 3-48 Producing of PC Hollow Slab ........................................................................................................ 3-70

Figure 3-49 PC Hollow Slab Construction by Stationary Platform ................................................................... 3-71

Figure 4-1 Land Use around Alternatives to the Bridge-building Route ........................................................... 4-1

Figure 4-2 The location of protected areas in Region XI .................................................................................. 4-3

Figure 4-3 Costal and Marine Zoning Map ....................................................................................................... 4-4

Figure 4-4 Distribution of Coral Reef of Babak District ................................................................................... 4-5

Figure 4-5 Environmental Issues Concerning Motor Vehicles .......................................................................... 4-9

Figure 4-6 EIA Procedures in the Philippines ................................................................................................. 4-25

Figure 5-1 Yearly Stream of Project Cost and O/M Cost ................................................................................ 5-17

Figure 5-2 Yearly Stream of Toll Revenue ...................................................................................................... 5-18

Figure 7-1 Organization Chart of DPWH Central ............................................................................................. 7-1

Figure 7-2 Organization Chart of DPWH Region XI ........................................................................................ 7-2

Figure 8-1 Comparison of Yield Strength between SBHS and Conventional Steel

(SBHS has overcome yield point reduction resulted from the plate thickness) ............................... 8-2

Figure 8-2 Reduction of Preheat Control and Welding Pass ............................................................................. 8-2

Figure 8-3 Weld Joints Improve Appearance and Lengthen Painting Life ........................................................ 8-2

Figure 8-4 Conceptual Diagram of Steel Pipe Sheet Pile Well Foundation & Details of the Joints .................. 8-3

Figure 8-5 Stud Welding is Underway in the Steel Pipe Sheet Pile Well Foundation ....................................... 8-4

Figure 8-6 Bridge Structure Scheme without Japanese Construction Technologies ......................................... 8-4

List of Pictures

Picture 1-1 Traffic at Davao-Panabo Road ....................................................................................................... 1-14

Picture 1-2 Construction of Road Widening (Bridge Widening) ...................................................................... 1-14

Picture 1-3 Circumferential Road ..................................................................................................................... 1-14

Picture 1-4 Pavement Work at Circumferential Road ...................................................................................... 1-14

Picture 1-5 Ferry Terminal (Davao Side) ......................................................................................................... 1-15

Picture 1-6 Ferry Terminal (Samal Side) .......................................................................................................... 1-15

Picture 1-7 Ferry in Service .............................................................................................................................. 1-15

Picture 1-8 Situation on Board Including a Regular Bus ................................................................................. 1-15

Picture 1-9 Regular Boat (Sasa Babak) ......................................................................................................... 1-16

Picture 1-10 Boat Resort User Only (Sasa Paradise Island Resort) ................................................................ 1-16

Picture 1-11 Site Condition ................................................................................................................................ 1-29

Picture 3-1 Stud Re-bars welded to SPSP ........................................................................................................ 3-64

Picture 3-2 Unit Assembly & Shop Painting .................................................................................................... 3-66

Picture 3-3 Delivery and Ocean Shipping ........................................................................................................ 3-66

Picture 3-4 Traveler Crane Erection ................................................................................................................. 3-68

Picture 3-5 Example of One-Assembled Block Erection of Steel Bridge ........................................................ 3-70

Picture 3-6 PC Hollow Slab Construction by Movable Platform ..................................................................... 3-71

Executive Summary

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(1) Background and Necessity of the Project 1) Background of the Project

Island Garden City of Samal (IGACOS) and Davao City, between which there is Pakiputan Strait, are located

close to each other. Ferries and boats are the transportation means between Davao City and Samal Island and

availability of which are restricted by the operation schedule as well as the weather thus, giving

inconvenience to the lives of the people, especially those on the island.

In recent years, waiting time for the ferry is too long at peak times because travelers to Samal Island has been

rapidly increasing due to the upsurge development of the island because of the numerous beach resorts and

high class residential areas.

Thus, NEDA approved implementation of the F/S for the Project on January, 2015.

2) Needs for the Project

In 1999, JICA carried out The Study on the Davao Integrated Development Program (DIDP) Master

Planning March 1999, in which it was mentioned that since IGACOS has a high potential for high-grade

residential development, environmental friendly industrial estate, and cultural and financial centers under the

BIMP-EAGA scheme as well as resort development due to its adjacency to Davao City and well preserved

environment, it may be recommendable to connect it to Davao City by a bridge. Also, Davao Gulf Area

Development Plan 2011-2030 aimed at creating employment and wealth by direct effects generated from

promotion of trades and commercial activities to LGUs in Davao Gulf Area, a project (Davao City-Samal

Bridge) is listed in the Programs and Activities of the development plan. Furthermore, Comprehensive

Land Use Plan 2008-2017 is a plan to achieve sustainable modernization leading to improvement plans on

economy, society, infrastructure, environment and local administration in IGACOS considering preserving

the nature and introducing urban facilities, Samal-Davao Bridge was mentioned as an economic

development strategy, improvement of accessibility to enhance economic productivity.

The realization of the project is urgently needed for the access between Samal and Davao by land

transportation because of high development potential of Samal Island, expectation of the rapid progress in

development and securing safety for about 100,000 residents in the island and for about 700,000 tourists.

Considering the state that the number of tourists and travelers who use the ferries are remarkably increasing,

economic loss generated by the waiting time for ferry is increasing year by year. Since the ferries and the

boats, as the means of transport between Davao City and Samal Island will not be able to support the

anticipated continuously increasing traffic in the future, deterioration in convenience for crossing the strait

may put the break on increasing the number of tourists and may decrease the time tourists spend in Samal

Island. That might be a hindrance to the revitalization of the economy due to the increase of employment and

purchasing opportunities utilizing the development potential of Samal Island.

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In this context, the implementation of the bridge project which would take about ten (10) years to complete

would then be very urgent.

(2) Concepts to Determine Scope of Work of the Project 1) Traffic Demand Forecast

The traffic demand between Davao City and Samal Island is made from Normal traffic and Generated

traffic. The normal traffic can be defined as the existing passenger and vehicle traffic which would increase

relatively with the future socio-economic growth, while the generated traffic is defined as the additional

passenger and vehicle traffic which will be brought about with the completion of the proposed Bridge.

Considering that converted traffic volume from ferries and boats depends on toll rate, scenarios of toll are

examined as follows.

Scenario 1: No toll charge

Scenario 2: Toll charge equal to the existing ferry tariff

Scenario 3: Toll charge equal to 150 % as high as the existing ferry tariff

Traffic volume for each scenario on the proposed bridge which consists of the one diverted from ferry plus

the generated traffic are shown below:

Figure i Traffic Demand Forecast on Proposed Bridge by Scenario

Source: The Study Team

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Figure ii Traffic Demand Forecast on Proposed Bridge by Trip Purpose


2) Preliminary Economic and Financial Evaluation

Economic Evaluation:

Table i shows the key assumptions that were explicitly made to conduct the economic analysis.

Table i Assumptions for the Economic Evaluation

Item Condition Remarks

1. Economic Indicators Economic Internal Rate of

Return (EIRR)

Benefit Cost (B/C) Ratio

Net Present Value (NPV)

2. Analysis Period 35 years

30 years after opening to the

public

Start of Construction: 2020

Start of Operation: 2025

3. Social Discount Rate

(Opportunity Cost of Capital)

15% Social discount rate in Philippines by NEDA

SDR will be used to compute B/C ratio and NPV

4. Exchange rate 1PHP = 2.7 JPY As of October 2015

5. Economic Cost Standard Conversion Factor

(SCF) = 0.80

Price contingency is not

considered

Shadow Exchange Factor for Project Economic

Analysis by ADB

Inflation is not considered

6. Salvage Value 0%


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By implementing the proposed bridge, a variety of benefits in the short and long term is expected. Among

these, the following tangible benefits are considered in this study as shown in Table ii.

Table ii Economic Effects of the Construction of Proposed Bridge

Items of Benefits Construction of Bridge Notes

Dire

ct B

enef

it

Savings in Vehicle Operation Cost (VOC)

Savings in Travel Time Cost

(TTC)

Passenger

Cargo

Savings in Transportation Cost

Savings in Operation Cost of Ferry and Launch

Comfort and Convenience (Punctuality, Flexibility, etc.) X

Indi

rect

Ben

efits

Induced Benefits

Impact to the Environment

Regional Development X

Tourism Development X

Note: : Tangible benefit

: Not included in this study

X : Not included items due to intangible benefits


Financial Evaluation:

The financial performance of the proposed bridge project is examined based on the financial cash flow of

the project implementation. The major works for the financial evaluation involve the preparation of the

input data for the financial statements and other necessary external variables such as construction costs,

operation/maintenance costs, revenues and financial parameters. Financial statements usually include cash

flow statement, which consist of cash-inflow and cash-outflow to estimate the annual surplus or deficit

including loan and application of funds.

The major input data for the financial evaluation is shown in Table iii.

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Table iii Input Data for Financial Analysis

Item Condition Notes Construction Schedule 6 years: construction period Construction starts in 2019

Operation starts in 2025 Evaluation Period 30 years after completion Interest Rate Option 1: Yen Loan (STEP) 0.1 %

Option 2: ADB or World Bank 3.0 %

Inflation Rate Inflation is considered at 3.4% Toll Rate See Table iv Toll rate change Existing tariff level of the Ferry and Launch Traffic Volume Traffic demand forecast under 3.3 Construction cost 2015 prices


Table iv Tariff Level for Proposed Bridge

Type of Traffic Ferry Tariff

(PHP)

Alternative Scenarios of Toll Rates of Bridge Scenario 1 (Toll Free)

Scenario 2 (Same as Ferry Tariff)

Scenario 3 (150% of existing Ferry Tariff)

1 M/C, T/C 60 0 60 90 2 C/UV/SUV 250 0 250 380 3 Truck 1050 0 1050 1,580 4 Bus 1050 0 1050 1,580 5 Passenger 12 0 12 18


3) Natural Conditions

a) Topography and Geology

Outline of Topography:

Davao City, which is the largest city in Mindanao, is a port city facing the Gulf of Davao. Samal Island is

located about 1km off the eastern shore of Davao City. The Pakiputan Strait between Davao City and

Samal Island, where the project bridge is proposed, has a maximum depth of about 35 meters, and the

shore on the Davao side has port facilities such as a quay, with deeper water to secure a draft for vessels.

The Samal side has a coral shore, and the sea bottom changes gradually toward the strait. There are many

houses and port facilities which have been built in high density at the site of approach viaduct on the

Davao side, and the ground is flat until the Davao-Panabo road. The location where the viaduct is to be

constructed on the Samal side is inclined higher toward the center of the island. Below is the topographical

map.

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Figure iii Outline Topographical Map


Outline of Geology:

As a result of the boring geological survey at four boring locations, it was revealed that this site has a

foundation of coralline limestone, and that soil and sand have accumulated above it. The bearing layer of

the bridge is considered to be the limestone layer. The strait center of the limestone layer is the deepest

portion with an altitude of -47 meters, and it becomes shallow as it gets closer to the land. Samal is an

island that was created through the upheaval of the limestone layer.

b) Climate

Davao City is protected by the mountain ranges from the Pacific, and is located on the southern side of the

water where typhoons occur, thereby lessening the damages caused by typhoons. According to the

Kppen climate classification, it is classified as Af, tropical rain forest climate. It does not have a rainy

or a dry season, and there is less change in the precipitation, temperature, humidity, and pressure

throughout the year. The temperature ranges from 20 to 35 degrees, and the annual average precipitation is

about 2000mm. Samal Island has hilly terrain, and the climate is similar to that of Davao City.

4) Design Conditions

a) Navigation conditions

The width of the navigational channel is 200m as PPA indicated. The largest vessel (Panamax class) passes

through the central segment of 100m. The vertical navigational clearance of the Panamax class is 57.91m

above HWL, with a margin of 1m.

Location where the

bridge is proposed

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Figure iv Navigation Conditions


b) Aeronautical conditions

The project location is within 4km from Davao Airport runway, and it is subject to aeronautical

restrictions. The height limit is 45m from the runway surface. As the altitude of the runway is 29m, the

altitude limit of the structure is 45+29=74m.

c) Typical Cross Section

Road shoulder width of 2.5m is provided for slow speed vehicles and broken-down vehicles to prevent

slowing down the travel lane speed.

Figure v Typical Cross Section


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5) Comparison of Routes

a) Comparison of Alternative Routes

Alternative routes examined on a topographic map of the project bridge are shown in Figure vi. A

comparison of alternative routes is shown in Table v. As a result of the comparison through a site survey,

alternative routes No.6 and No.7 are selected as the best route for the Project.

Figure vi Alternative Routes of the Project Bridge


Table v A Comparison of Alternative Project Bridge Routes

Route Bridge Length

(m) Road Network Economic

Construction Limit

Site ConditionInvoluntary

Resettlement Evaluation

Davao Samal

1 3,500

Near the intersection of Pan-Philippine highway and Davao-Panabo Road

Bad (the construction cost is high because bridge length is longer than others and resettlement is large.

Aeronautical height limit (74 m) is strict since bridge cross landing route. It is difficult to construct due to structural limit.

Panacan public market, Philippine Naval base-camp (Davao)

Relatively large (more than 20 houses)


Very bad

2 3,200

Connecting with Pan-Philippine highway in Davao side and connecting with circumferential road in Samal side.

Brgy.villarica's Wet market (Samal)

Equipment Depo of DPWH


Very bad

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Route Bridge Length

(m) Road Network Economic

Construction Limit

Site ConditionInvoluntary

Resettlement Evaluation

Davao Samal

3 3,000 Connecting with circumferential road in Samal side.



Very bad

4 2,400 Connecting with inner road in Samal side.

Bad (the bridge height should be elevated then, the approach bridge length gets longer.)

-

Sasa Seaport (To cross over the port, high and long approach bridge is required)

Nothing Nothing Bad

5 1,800

Connecting with Davao-Panabo Road in Davao side and connecting with circumferential road in Samal side.

- Nothing Very few Bad

6 1,800 Connecting with the old airport road

Good (the route length is shorter than others and economical.

- - Very few Small (less than 10 houses)

Good

7 1,800 Connecting with Davao-Panabo Road in Davao side and connecting with circumferential road in Samal side.

- Part of Chevron Depot

Very few Small (less than 10 houses)

Good

8 1,800

It is difficult to construct the bridge due to the submerged electric cable.

Submerged electric cable exists

Small (less than 10 houses)

Very few Bad


b) Final Route of the Project Bridge

Based on the proposed alternative route No.6 and No.7 selected above, the site survey focusing on

confirming the land use to minimize the resettlement was implemented to determine the final route. The

final route is proposed as shown in Figure vii. In the site survey, it was found that resettlement of some

parts of the oil depo would be necessary for both the route No.6 and No.7. The final route was proposed

with a consideration of avoiding that resettlement at the location between the route No.6 and No.7.

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Figure vii Final Route of the Project Bridge


6) Alternatives of the Bridge Type

a) Alternative bridge types for the project bridge

The following six bridge types were compared, and consideration was given to whether they were

applicable. As a result, it was found that the PC box girder bridge and the truss bridge were able to meet

both the aeronautical and the navigational restrictions.

i) PC box girder bridge The applicable maximum span length is 200m, and it satisfies both the aeronautical and the navigational restrictions.

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ii) Truss bridge The applicable maximum span length is 500m, and it satisfies both the aeronautical and navigational restrictions.

iii) Arch bridge

The applicable maximum span length is 500m, and it satisfies the navigational restriction but its arch members violate the aeronautical restriction.

iv) Extradosed bridge

The applicable maximum span length is 250m, and it satisfies the navigational restriction but violates the aeronautical restriction because it requires the main tower for stay cables.

v) Cable-stayed bridge

The applicable maximum span length is 1000m, and it satisfies the navigational restriction but violates the aeronautical restriction because it requires the main tower for stay cables.

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vi) Suspension bridge The applicable maximum span length is 2000m, and it satisfies the navigational restriction but violates the aeronautical restriction because it requires the main tower for suspension cables.

b) Comparison table

Table vi shows the results of comparison between PC bridge type and truss bridge type that satisfy the

aeronautical and the navigational restrictions, including the substructure work and superstructure work.

As a result of comparison, it was evaluated that truss bridge type is the most suitable bridge structure type.

Table vi Comparison of Bridge Types

PC Box Girder Steel Truss Bridge

Constructibility

It is inferior in workability for it needs large scale excavation in the sea before thesteel shell installation of caissons. Moreover , it is necessary to adequate qualitycontrol to ensure the quality of underwater concrete.Cantilever method for construction of superstructure is common. However itrequires a large jetty to the vicinity of the Strait center for equipment carrying.

It is possible to work in the air for the cofferdam by steel pipe sheet pile. Therefore,it is easy to ensure for the workability of excavation and the quality of concrete.Erection of superstructure is a common cantilever erection. In addition, the scale ofthe jetty is smaller than that of the PC box girder.

Construction PeriodSubstructure : 45 monthsSuperstructure : 39 monthsTotal : 84 months

Substructure : 22 monthsSuperstructure : 38 monthsTotal : 60 months

Aeronautical andNavigational Impact

The during caisson construction, it is impossible to construct simultaneously in orderto secure the navigation. Therefore, the construction period is long.The during superstructure construction, construction equipment interferes againstaviation limit . There is a need to further reduce the navigation width for equipmentcarrying.

The steel pipe sheet piles foundation is possible to construction simultaneously whilesecuring the navigation.The during superstructure construction, construction equipment interferes againstaviation limit. However the navigation is not interfered.

MaintenanceRequirement

Re-paint is unnecessary.Although there are few members and there are not many inspection places, it is hardto discover internal abnormalities, and the repair at the time of revealing becomeslarge-scale.

The re-paint of a steel member is necessity (once in about 30 years, 625M.PHP/time).Even if it compares based on a life cycle cost, a truss bridge is moreeconomical than PC box girder.There are many members and there are many inspection places. However, becauseall the members can be seen and checked, maintenance by simple repair is possibleat the slight damage to early.

EnvironmentalImpact

Sea water will greatly be affected by the influence of contamination, because large-scale excavation is required before caisson installation.

Although sea water is affected by the influence of contamination at the time of steelpipe sheet pile placing, overall influence is small due to excavation work in acofferdam.

Aesthetics

There are many bridge piers and a feeling of a blockade of a navigational channelwill be strong.It is a small impact of landmark because it is bad balance of the superstructure andthe substructure scale.

The silhouette of the superstructure gives the open and rhythmical impression due tothe small number of piers.The arch form of superstructure acts as an accent, and it will make a conspicuouslandmark at the strait.

Construction Cost (M.Peso)

Substructure 7,420Superstructure 2,810Total 10,230

Substructure 1,690Superstructure 6,610Total 8,300

Overall Evaluation

Note: : Very Good, : Fare, : Bad, : Very Bad

SteelPipeSheetPileBoredPileSteelPipeSheetPile BoredPileCaisson


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(3) Outline of the Project 1) Design of the Project Bridge

The project is to construct an approximately 1km bridge over the Pakiputan Strait. The main bridge is to clear

the navigational height limit of 58.91m from the highest sea elevation of 1.55m in height and 100m in width.

Furthermore, aeronautical height limit because of Davao Airport forces the main bridge structure to be lower

than 74m in altitude. The bridge approach roads to the main bridge need to be viaducts to connect with

Davao-Panabo Road and Samal Circumferential Road with 6% or less slopes. The total project road length

including the main bridge, approach viaducts and approach roads is approximately 4.4km. As a result of the

comparison of alternative schemes, 3-span steel truss main bridge and PC hollow slab bridge and steel box

girder bridge approach viaducts were proposed. As the typical cross section, 2 lanes of 3.5m wide travel way

and 2.5m wide shoulders for slow speed vehicles and broken-down vehicles are proposed together with 1.5m

wide sidewalk at one side only.

The profile of the project road, the side view of the main bridge and the viaducts are shown in the Figure viii,

ix and x, respectively.

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ce: T

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Figu

re v

iii

Prof

ile th

e Pr

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t Roa

d

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Sour

ce: T

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tudy

Tea

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Figu

re ix

Si

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iew

of t

he M

ain

Bri

dge

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Figu

re x

Si

de V

iew

of t

he A

ppro

ach

Via

duct

s

(To

Dav

ao C

ity)

(To

Pana

bo)

(To

Sam

al Is

land

)

Sour

ce: T

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tudy

Tea

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2) Project Cost

A summary of the project cost is shown in Table vii. The total cost is approximately Yen 44,800 million.

Table vii Summary of the Project Cost

PHP 1Yen 2.719

Cost Items Project Cost

LC (PHP Million)

FC (Yen Million)

Total (Yen Million)

A. YEN LOAN PORTION I) Construction (Base Cost) 3,518.1 23,413.1 32,978.9

Preparation & Mobilization 505.1 1,306.1 2,679.5Main Bridge (Truss) 1,200.4 19,270.2 22,534.1Davao side Approach Viaduct 208.4 799.6 1,366.2Samal side Approach Viaduct 543.9 354.4 1,833.3Davao Interchange 963.5 1,664.2 4,284.0Davao Pedestrian Staircase 20.6 5.0 61.0Davao side Access Road 64.9 12.5 189.0Samal side Access Road 11.3 1.1 31.8

II) Consulting Services (Base Cost) 525.8 1,692.9 3,122.6III) Contingencies 1,497.4 3,189.3 7,260.7

Price contingency for Construction 908.2 656.1 3,125.5Physical contingency for Construction 442.6 2,406.9 3,610.3Price contingency for Consulting Services 114.6 39.7 351.3

Physical contingency for Consulting Services

32.0 86.6 173.6

Total A (I+II+III) 5,541.3 28,295.3 43,362.2

B. PHILIPPINE PORTION a Construction (Base Cost) 50.7 0.0 137.9

Utility Relocation 48.5 0.0 131.9Existing Structures' Removal 2.2 0.0 6.0

b Land Acquisition 135.9 0.0 369.5Acquisition cost of land 126.3 0.0 343.4Compensation for houses & shops 9.4 0.0 25.6Compensation for trees 0.2 0.0 0.5

c Administration Cost (2%) 114.8 565.9 878.0d Import Tax (To be exempted) e VAT (To be exempted) f Contingencies 12.0 0.0 32.6

Price contingency for Construction 6.3 0.0 17.1Physical contingency for Construction 5.7 0.0 15.5

Total B (a+b+c+d+e+f) 313.4 565.9 1,418.0

Grand Total (A+B) 5,854.7 28,861.2 44,780.2


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3) Major Goods to be procured from Japan

The following major goods are necessary to be procured from Japan:

Substructure of the main bridge (i) (ii)

Steel pipe sheet pile (material of SPSP foundation) NS stud bar (material to connect pier footing with SPSP)

Superstructure of the main bridge (iii) (iv)

SBHS steel (main material of the main bridge) Bearings (earthquake-resistant bearings of the main bridge)

Major items of goods and their quantities and amouts to be procured from Japan are shown in Table viii.

These goods account for about 32% of the construction cost.

Table viii Cost of Goods to be Procured from Japan

Goods Specifications Unit QuantityUnit Rate

(Yen Thousand) Amount

(Yen Million)Steel pipe sheet pile 1500, P-P interlock m 3,866 246 951 NS stud re-bar tons 29.6 734 22 Main bridge steel SBHS & other steel tons 15,500 576 8,932

Main bridge bearing Design load 1,200t class nos 4 23,648 95 Design load 5,400t class nos 4 106,330 425

Total amount Japanese goods (1) 10,425 Construction cost (base cost) (2) 32,979 Procurement ratio of Japanese Goods only (3) = (1) / (2) % 31.6%

Note: The proportion of SBHS steel to the total steel quantity is assumed to be approximately 40%.


4) Preliminary Economic and Financial Evaluation

Economic Evaluation:

The economic analysis is made considering the cash flow of benefits and costs during evaluation period

years. The economic indicators of the proposed bridge project are shown in Table ix.

Table ix Results of Economic Evaluation

(NPV: Million Pesos)

Economic Indicators Scenario 1 (No toll)

Scenario 2 (Same as ferry tariff)

Scenario 3 (150% of ferry tariff)

EIRR 18.60% 15.7% 10.0% B/C Ratio 1.36 1.07 0.59 NPV 1868.8 355.3 -2,105.5

Note: The project life of the Proposed Bridge Project is 30 years


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The sensitivity analysis of the economic analysis is considered for the following:

Toll revenue fluctuation (10%)

Project cost fluctuation (10%)

The results of the sensitivity analysis are shown in Tables x.

Table x (1) Results of Sensitivity Analysis (Scenario 1: No toll)

Benefit

Cost -10 % Base +10 %

-10 % 18.6 % 19.9 % 21.2 %

Base 17.4 % 18.6 % 19.8 %

+10 % 16.3 % 17.4 % 18.6 %


Table x (2) Results of Sensitivity Analysis (Scenario 2: Same as Ferry Tariff)

Benefit

Cost -10 % Base +10 %

-10 % 15.7 % 16.9 % 18.1 %

Base 14.8 % 15.7 % 16.8 %

+10 % 13.6 % 15.0 % 15.7 %

Note: Shows that the figure is under 15.0% and unfeasible.


Table x (3) Results of Sensitivity Analysis (Scenario 3: 150% of Ferry Tariff)

Benefit

Cost -10 % Base +10 %

-10 % 10.0% 10.9 % 11.7 %

Base 9.1% 10.0 % 10.8%

+10 % 8.3% 9.2% 10.0 %

Note: Shows that the figure is under 15.0% and unfeasible.


Financial Evaluation:

The results of the financial analysis are tabulated in Table xi. Estimation of Weighted Average Capital Cost

(WACC) are tabulated in Table xii.

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Table xi Results of the Financial Analysis

Scenario1 (No toll)

Scenario 2 (Same as Ferry Tariff)

Scenario 3 (150% of Ferry Tariff)

FIRR (%) NA 4.30 % 0.28 %

Cost Recovery (Yrs.) After operation

NA 18 years No recovery

Note: NA: Not available


Table xii Estimation of Weighted Average Capital Cost (WACC)

Yen Loan

(STEP)

Domestic Loan

(Philippines) GOP Fund Total

a. Construction Cost (Million PHP) 10,576 4,013 446 15,035

b. Composition (%) 70.3% 26.7% 3.0% 100%

c. Interest Rate (%) 0.1% 15% 10% -

d. Inflation Rate (%) - 3.4% 3.4%

e. Real Interest Rate (%) 0.1% 11.22% 6.38%

c. WACC (%) 0.070% 2.99% 0.19% 3.25%

Notes: Foreign currency by Yen Loan, Local currency by Domestic Loan and Government Fund


Table xiii Estimation of Weighted Average Capital Cost (WACC) by Type of Loan

Type of Loan Weighted Average Capital Cost (WACC) Composition of Funds (Example)

Case 1 STEP Loan 3.25%

1) STEP Loan:70%

2) Domestic Loan: 27 %

3) GOP: 3%

Case 2 ADB or WB Loan 6.63%

1) ADB or WB Loan: 50%

2) Domestic Loan: 40 %

3) GOP: 10%

Case 3 PPP 10.74% 1) Domestic Loan: 90 %

2) GOP: 10%


The sensitivity analysis of the financial analysis is considered for:

Toll revenue fluctuation (10%)

Project cost fluctuation (10%)

The results of the sensitivity analysis are shown in Tables xiv and xv.

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Table xiv Results of Sensitivity Analysis (Real Term) (Scenario 2: Same as Ferry Tariff)

Revenue

Cost -10 % Base +10 %

-10 % 4.30 % 4.97 % 5.60 %

Base 3.64 % 4.30 % 4.94 %

+10 % 3.06 % 3.70 % 4.30 %


Table xv Results of Sensitivity Analysis (Real Term) (Scenario 3: 150% of Ferry Tariff)

Revenue

Cost -10 % Base +10 %

-10 % 0.28 % 0.86 % 1.40 %

Base - 0.30 % 0.28 % 0.80 %

+10 % - 0.81 % - 0.25 % 0.28 %


Preliminary Conclusions of Financial / Economic Evaluation

As the results of preliminary economic and financial evaluation, the following preliminary conclusions can

be arrived at:

Based on the results of economic evaluation made, it is concluded that the proposed Bridge Project will

be economically feasible in case of Scenario 1 and Scenario 2.

Based on the results of financial evaluation made, it is concluded that the Proposed Bridge Project may

be financially viable in case of Scenario 2 when the ODA loan such as STEP of Yen Loan will be able to

procure because WACC of 3.25% is lower than FIRR of 4.30%.

However, when ADB or WB loan will be able to procure, the Project may not be financially viable

because WACC of 6.63% is higher than FIRR of 4.30%. It is also said that when PPP scheme will be

procured, the Project may be not financially viable because of higher interest rate of PPP than that of

ADB or WB.

In view therefore, the Government thru DPWH shall request JICA to carry out the detailed feasibility

study for DavaoSamal Bridge Project based on STEP Yen Loan.

(4) Evaluation of Environmental and Social Impacts 1) Project Components Concerned with Environmental and Social Impacts

The outline of the project components