Final FMR - Economic Model - 06242019
Final FMR - Economic Model - 06242019
Final FMR - Economic Model - 06242019
I. INTRODUCTION
A. Provincial Background
The province of Isabela is the second largest province in the Philippines. It has a land area
of 10,655 square kilometers comprising more the 3% of the Philippine territory and almost
40% of the Cagayan Valley region. It is bounded on the north by Cagayan province; on the
west by Kalinga, Mountain Province, and Ifugao; on the south by Nueva Vizcaya, Quirino,
and Aurora; and on the east by the Philippine Sea and the Pacific Ocean. Isabela is a first
class province politically subdivided into six congressional districts. It consists of three cities
and 34 municipalities comprising of 1,055 barangays (www.provinceofisabela.ph).
The province is rich in natural heritage with land, water, marine and biodiversity resources.
These resources have given the province its high potentials turning it into an Agro-
Industrial Economic Zone with its Economic Profile.
i. Demographics
In the 2010 census, the Province has a total population of 1,489,645 where 760,644 or
51% of which are males and 729,001 or 49% are females. With an average household
size of 4 to 5 members, the province has a total of 336,823 households. Of the total
population, 31.77 % are 0-14 years old and 63.9% are 15-64 years old while 4.4% have
ages 65 and above (www.nso.gov.ph).
The province is predominantly rural with 1,265,393 or 85% living in the countryside
while the urban population constitutes 224,252 or 15% of the total population. This means
that developing the rural areas would benefit a larger portion of the population of the
province.
ii. Economy
The economy of Isabela is greatly dependent on its agriculture sector. The agriculture
production area in the province is about 626,614 hectares which is approximately 59.0%
of the total land area. In 2000, the total family income is highly concentrated in
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Agriculture, Fishery and Forestry with 36.0% of the total family income of the province
derived from this industry. This shows that most of the families are involved in
agriculture, fishery and forestry. The average family income in the province was
estimated at Php 113,405.00 with annual expenditure of about Php 90,924.00.
With respect to labor and employment, in the 2010 survey, the Labor Force Participation
of the province is 951,883 with 97.30% employment rate. Region-wise, of the total labor
force of the province, 52.0% are employed in the service sector, 33.0% in agriculture
sector and 15.0% in the industry sector.
Agriculture is the biggest industry in Isabela. It is the country’s top corn producing
province while it ranks second in rice production. A total of 286,319.00 ha and 269,266.00
ha were devoted to rice and corn, respectively. From 2004 to 2014, its average annual rice
production is about 1,091,169.82 metric tons contributing to about 6.6% of the country’s
total rice production. While for corn, the province’ average annual production is about
970,415.36 etric tons which shares 14.5% of the country’s total corn production. For other
crops which include vegetables and fruit trees, in 2013 survey, the total area planted is
about 71,029 hectares with a production of 873,939 metric tons. These crops are either
produced in commercial scale or by backyard farming (www.bas.gov.ph).
The Provincial and Municipal Local Government Units and the Department of
Agriculture implemented various agricultural facilities such as Farm to Market Roads,
irrigation facilities, Multi-purpose Drying Pavements and postharvest facilities in the
province which aim to improve the production and quality of farm products. However, it
is still inadequate to enhance farm productivity and increase rural incomes in the province
of Isabela especially with the onset of disruptive weather phenomena such as El Nino and
La Nina.
The Expanded- Vulnerability and Suitability Assessment (e-VSA) is a science based tool
developed by the Bureau of Soils and Water Management to identify the suitability of
commodity in a certain location/municipality. The results of EVSA will guide the planner
in allocating the government’s investment to support and to uplift the income of the
farmers and players in the value chain. The parameters and their corresponding weight
are as follows: Poverty Incidence with a weight of 0.1, Production Area (in hectares) with
a weight of 0.2, and Production Volume with a weight of 0.2. Table 1 and figure 2 show
the result of e-VSA conducted for Aromatic & Pigmented Rice in the province.
The results show that the municipality of Echague ranked first with New Composite Index
(NCI) of 0.057136. Followed by City of Ilagan (NCI=0.53781), Cauayan City
(NCI=0.5346), Alicia (NCI=0.44709) and San Mateo (NCI=0.42815) respectively as the
Top Five Highest NCI.
The municipality of Dinapigue ranked number 37 in the e-VSA result, but considered a
priority municipality since it is one of the isolated areas of the province that produces
upland rice. The presence of Sierra Madre Mountain Range isolates the municipality from
the established growth centers of the province.
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Municipality of Dinapigue, Isabela
Table 1. Expanded Vulnerability and Suitability Analysis (e-VSA) for Aromatic and Pigmented
Rice,
Province of Isabela, 2018.
TOTAL TOTAL
OLD NEW
POVERTY RAINFED RAINFED IRRIGATED OLD NEW
MUNICIPALITY COMPOSITE COMPOSITE
INCIDENCE LOWLAND UPLAND AREA RANK RANK
INDEX INDEX
AREA AREA
ECHAGUE 17.5 2901.2 608.65 297.58 0.41875 25 0.57136 1
ILAGAN 17.9 2593.25 607.5 451.25 0.3378 30 0.53781 2
CAUAYAN CITY 17.3 1341.74 249 939.93 0.4943 17 0.5346 3
ALICIA 15.2 0 0 1014.97 0.5629 3 0.44709 4
SAN MATEO 12.7 0 0 835.3 0.58325 1 0.42815 5
MALLIG 18.7 135 0 767.33 0.53985 8 0.40955 6
DELFIN ALBANO 16.3 924.8 0 589.8 0.50295 14 0.40323 7
RAMON 18.1 0 0 768.87 0.5412 7 0.40285 8
JONES 12.6 980.36 422.16 95.81 0.4257 24 0.3947 9
QUEZON 24.2 682.5 0 509.65 0.5168 13 0.39391 10
ANGADANAN 17.6 1222.54 45.38 375.98 0.48225 20 0.38919 11
SAN MANUEL 16.2 0 10 675 0.53535 9 0.38657 12
SANTIAGO CITY 15 0 0 798.54 0.4956 16 0.38124 13
ROXAS 15.6 265 0 536.9 0.54325 6 0.38073 14
CABATUAN 14.2 0 0 523.95 0.555 4 0.36954 15
SAN ISIDRO 14.6 70.68 0 424.37 0.56795 2 0.36537 16
NAGUILIAN 19.2 1220.85 50 241.28 0.4265 23 0.3441 17
TUMAUINI 20.3 380.5 105 457.88 0.41815 26 0.34319 18
CORDON 18.6 393.5 0 421.06 0.48275 19 0.34309 19
SANTA MARIA 31.3 435.09 0 155.82 0.5206 12 0.33803 20
BENITO SOLIVEN 23.6 1034 176 96.9 0.4019 27 0.33638 21
SANTO TOMAS 23.4 129 0 279.57 0.5234 11 0.33376 22
GAMU 16.2 372.8 21.8 339.83 0.4765 21 0.32979 23
BURGOS 14 0 0 443.39 0.49245 18 0.32616 24
QUIRINO 15.9 113.5 0 347.13 0.49645 15 0.32176 25
LUNA 10.4 0 0 218.62 0.55325 5 0.31964 26
PALANAN 48.6 1801.41 0 46.37 0.3188 31 0.30939 27
SAN GUILLERMO 27.6 698.95 314.5 87.38 0.30535 32 0.30764 28
SAN AGUSTIN 14.6 1378.75 74 26.9 0.39495 28 0.306 29
REINA MERCEDES 16.2 90 0 137.7 0.52455 10 0.30395 30
SAN MARIANO 30.6 336 215 272.51 0.3042 33 0.29421 31
AURORA 13.1 0 0 222.2 0.445 22 0.26882 32
CABAGAN 19.3 110.8 0 253.37 0.37845 29 0.25226 33
SAN PABLO 24.4 371.25 157 76.15 0.29315 34 0.24081 34
DIVILACAN 45.7 271.08 10 33.61 0.2488 37 0.19287 35
MACONACON 29.3 91.07 0 43.05 0.2603 36 0.17136 36
DINAPIGUE 25.81 41.75 16 19.65 0.2655 35 0.1683 37
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The value chain analyses of Aromatic and Pigmented Rice in Cagayan Valley and Central
Luzon focused on traditional and modern aromatic and pigmented rice varieties in all
ecosystems. Key provinces covered in Cagayan Valley include Cagayan, Isabela, and
Quirino. In Central Luzon, the study covered Nueva Ecija and Tarlac. The two regions
particularly Isabela and Nueva Ecija are among the key sources of popular traditional
varieties in the Luzon and Metro Manila markets such as the Milagrosa, Wagwag, and
Dinorado. Isabela, Nueva Ecija, and Tarlac are among the suppliers of premium rice
brands such as the Dona Maria, Harvester’s, and Jordan Farms.
The aromatic/pigmented rice value chain helps identify the segments that require
intervention or assistance. It was identified that the rugged terrain and steep slopes of
many of the aromatic and pigmented rice producing areas in the province is one of the
major constraints in the timely delivery and marketing of the products. In hilly areas
where paddy fields are terraced, the paddy is transported in panicles or bundles of long
stalks using human or animal power. These traditional methods of transport, which are
related to the harvesting and field drying activities, very often result in high grain losses.
Manual hauling also poses occupational safety and health hazards. Transport cost forms
the bulk of distribution cost. The additional transportation/hauling expenses incurred by
farmers with farms located in areas not accessible by trucks/4-wheel vehicles reduce the
effective “price” farmers receive for their products. Poor farm-to-market road reduces
choice: it results in more limited marketing opportunities, reduced farm-gate prices and
returns to labor and capital, and increased input costs.
From the analysis of the markets and the dynamics within the subsector, the greatest end
market opportunity for the aromatic and pigmented rice subsector lies in supplying the
export market. The short- to medium-term vision for the aromatic and pigmented rice
subsector in Luzon A is to evolve into an industry where smallholders consistently
produce enough rice to fulfil household needs and commercial /surplus production is
substantially increased. Within the next five years, the industry hopes to develop a
commercially driven production, milling, processing, and marketing capacity that can
deliver sufficient volume of rice for export marketing that is cost and quality competitive
relative to competitors and without compromising local food security.
To achieve the vision for the aromatic and pigmented rice industry in the Region
particularly in Isabela such gaps/constraints should be addressed to make the province
more competitive in the Aromatic & Pigmented Rice Industry.
Aromatic rice has a flavour and aroma similar to that of roasted nuts or popcorn. The
natural compound 2-acetyl 1-pyroline (2AP) that gives aromatic rice the characteristic
aroma and flavour is present in all rice, but in the aromatic varieties it is present in much
higher concentrations. On the other hand, Pigmented rice refers to rice varieties with red,
purple, or black color formed by deposits of large amounts of anthocyanin pigments.
Among the pigmented rice, black rice appears to have the highest demand in the
international market. Among the popular black rice varieties grown in Luzon, Galo from
Aurora has the highest crude protein content for both unpolished and polished forms.
In Cagayan Valley, aromatic & pigmented rice varieties are planted in the three
ecosystems namely: irrigated lowland, rainfed lowland, and upland only about 2,061
hectares of the 511,873.41 hectares planted to rice in 2014, were devoted to aromatic and
pigmented rice varieties. Area planted to aromatic and pigmented rice in the region
increased from 1,253.90 hectares in 2012 to 2,061.15 hectares in 2014. Isabela and
Quirino each accounted for 34% of the total hectarage planted to aromatic and pigmented
rice in 2014 while Cagayan and Nueva Vizcaya contributed 23% and 9%, respectively.
In Isabela, the most popular aromatic and pigmented rice is the Pinilisa. It is a mountain-
bred variety grown in upland villages in Jones – Isabela. According to the records from
the local government, the couple Miguel and Felisa Nagasao of Barangay Divinan started
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
propagating the pinilisa variety, whose seeds came from Ilocos Norte, in the early
1900s.The pinilisa variety, which is similar to the traditional rice varieties of Kalinga
(unoy) and Ifugao (tinawon), used to be called pugot but its name was changed to Pinilisa
to honor the Nagasao couple.
The Province is the frontrunner in the region in the production of aromatic and pigmented
rice though only less than 1% of the total area planted to rice. Aromatic and pigmented
rice varieties are generally planted by farmers in upland areas and lowland rainfed areas
Isabela farmers, on the other hand, sell about 80% of their production.
The proposed enterprise to be supported by the subproject is the Aromatic and Pigmented
Upland Rice Production and Marketing Enterprise in the municipality of Dinapigue. The
proposed micro enterprise will be deriving its income from the sale of the product and the
price mark-up per kilo as a result of the direct marketing efforts creating a sustainable
market by forging marketing agreements with the target markets.
1. Increase the annual average income of farmers by selling their produce directly to
enterprise Proponent Group (PG) thereby reducing the intervention of middlemen
and eventually reducing the layers in the value chain and giving better profit for
the farmers
The selected proponent group will sell aromatic/pigmented rice produced by its farmer
members and non-members in the municipality. The PG will buy and consolidate the rice
product to be milled by the existing rice mills in the locality with an agreement. The
products will be dried, cleaned, sorted and packed by the PG ready for marketing. The
PG will adopt quality control measures to ensure quality and attain higher prices for the
product. Thus, farmer-members of the cooperative shall be trained in the adoption of
Good Agricultural Practices (GAP) for aromatic/pigmented rice.
i. Location
The road subproject is connecting four barangays namely Barangays Bucal Sur, Bucal
Norte, Dimalwade and Ayod. Barangay Bucal Sur is almost two kilometres north of
Poblacion while Barangay Ayod, the farthest barangay, is about nine kilometres.
a. Geographic Boundaries
The municipality of Dinapigue is situated between the boundaries Isabela and Aurora
provinces as shown in Figure 3. It is bounded in the north by Palanan; in the west by
Echague, San Guillermo and San Mariano; and in the south by Aurora province. It is
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
virtually land-locked by the Sierra Madre mountain range on the west and the Pacific
Ocean in the east.
The direct road influence area of the subproject is situated on the southern part of the
municipality. The RIA is bounded by the forested area of the municipality on its North,
East and West while it is bounded the south by the Dedekkel Creek.
The seat of government of Dinapigue is about 200 road kilometers from Ilagan, the
Capital Town of Isabela. However, the presence of mountain range isolates the
municipality to the established growth centers of the province. The nearest commercial
center is the municipality of Casiguran in the province of Aurora. With barangay
Digumased as reference point, the municipality of Dinapigue is about 50 kilometers
from this municipality. Other traders also consider Santiago City in Isabela as their
major trading center which is about 100 kilometers travel distance via Aurora –
Quirino National Road.
With respect to the road influence area, the start of the proposed of approximately
8.3 kilometer FMR is 800 meters from the center of commerce in the municipality.
c. Topography
The process of geotagging was initially conducted during the proposal development
by the RPCO 2 and MPMIU. A more thorough geotagging using PRDP Camera was
conducted after validation activities. Shots of the proposed road from the left and right,
front and back were taken every 50 meters. The project starts from end of existing
municipal road in the Poblacion. In this way, products and people from the production
areas will have an easier time in negotiating the almost 8 km road or a portion of it.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
As shown in Figure 4, the existing road network is a primary road providing access to
farmers in transporting their products to Poblacion. It is also an efficient facility to
bring in the basic needs of the constituents coming from trading centers. The municipal
road in Poblacion serves as a conduit of the municipality to the major market like
Santiago City and neighbouring provinces in order to have bigger income.
The FMR design satisfies the location-specific criteria. It addresses basic problems on
accessibility, quality, drainage, etc. Most importantly, being a primary access road, it
provides access for the socio-economic development of the communities.
e. Estimation of RIA
The figure below, with the use of measurement features of Google Earth Pro
software, captures the total RIA of about 3,130 hectares which includes 1,126
hectares of agricultural area, 28 hectares of residential or built-up area and the rest
are grassland, forest, and other land uses.
Figure 5. Satellite image of the proposed FMR delineating the total RIA.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Figure 6. Satellite image of the proposed FMR delineating the major commodities.
The figure above, with the use of measurement features of Google Earth Pro
software, captures about 90 hectares of rice, 49 hectares coconut, 47 hectares of
banana and 60 hectares of corn. The total existing area planted with crops as seen
in the figure is 246 hectares, this is approximately 22% only of the classified
agricultural areas in the four barangays presented in Figure 5. With the road
improvement, there is a possibility that the potential areas will be cultivated. Figure
7 below shows the possible expansion area that can be attributed to road
rehabilitation.
Figure 7. Satellite image of the proposed FMR delineating the potential area.
ii. Demographics
The four barangays covered by the project namely Bucal Sur, Bucal Norte, Dimalwade
and Ayod has a total population of 1,368 with a total household of 379. Table 2 below
shows the breakdown of the municipality’s population per barangay.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The economy of the locality is largely agricultural-based as most people who are
employed are engaged in agriculture. With respect to Forestry, the municipality has a
total forestland area of 92,159 hectares.
In terms of Commerce and Trade, there are existing retail establishments that gives life
to the town’s commercial activities. Most of the establishments are categorized as sari-
sari store and these are distributed in the municipality exclusive of barangay Dimalwade
where there is no business establishment.
Dinapigue is also known to be rich in mineral resources but the extent and specific
location of its mineral reserves is not yet thoroughly explored. This is the reason why
mining companies are prospecting in the area. Even before it became a regular
municipality, mining was already active in the area, which was one of the reasons why
migrants arrived.
The total classified land for agriculture of the municipality is 1542.75 hectares, however
only about 517 hectares are currently devoted for agriculture. Table 3 shows that rice is
the primary crop ever produced by the farmers devoting 252.50 hectares for its
production or 48.88% of the total agricultural area devoted for crop production.
Livestock raised in Dinapigue are cattle, carabao, pig, goat, duck, turkey, dove, goose,
cat, horse and chicken. Native chicken has the most number and this animal is present
almost in all households in the area. Apparently, these backyard animals are raised not
for commercial intents rather for household use.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Dinapigue has a total of 575 square kilometers fishing zone along the Pacific Ocean.
This area is equitably distributed among its barangays except Ayod for its area’s
coverage does not include this body of water. Among the 5 barangays, only Dibulo and
Digumased have regular catch based on the data of the Municipal Agriculture Office.
Operating in the whole municipality is one unit multi-purpose thresher and 5 units rice
mills. The former is also for hire inter-municipal at a rate the same with that of the hand
tractor. The latter situated at barangays Ayod, Bucal Sur and Dibulo mills. Multi-
purpose drying pavements are also available in town but only on selected barangays
while a mechanical dryer can be found in Bucal Sur but it has long been unused because
farmers deemed its operation expenses costly.
From among the six barangays, farmers from barangays Dimalwade and Dibulo are the
ones regularly trading palay. Farmers need not go to buying stations because buyers
coming from neighbouring municipalities particularly in Aurora province are the ones
coming to Dinapigue to purchase palay.
From the 2012 City and Municipal-Level Small Area Poverty Estimates of the
Philippine Statistics Authority, Dinapigue’s poverty incidence was at 25.8%. It has the
7th highest among the 37 municipalities of the province. The high incidence of poverty
is attributable to the isolation of the municipality which results to low agricultural
productivity and income and lack of employment opportunities in the locality.
The long term and overall goal of the project is to increase income and improve quality of life
among residents of the barangays of Bucal Sur, Bucal Norte, Ayod and Dimalwade in the
Municipality of Dinapigue. The specific objectives are:
1. To reduce travel time from the RIA to Poblacion by 50%, from average of 16.25 minutes
to 8.125 minutes, starting year 1 of the project;
2. To increase traffic volume in the RIA by 2% annually for 20 years starting year 1 of the
project;
3. To reduce input/output hauling cost by 20%, from Php 35 per sack to Php 28 per sack,
starting year 1 of the project;
4. To reduce transport losses by 50% starting year 1 of the subproject for 20 years;
Table 4: Existing Roads, Bridges and Transport System in the Road Influence Area-RIA
by road type and classification-Without Project Scenario.
Road Type (in kms)
Road TOTAL
Gravel Earth Concrete
Classification
P NP P NP P NP P NP
Municipal Road 18.760 - 0.160 4.972 23.892
Barangay Road 12.811 - 6.655 19.466
TOTAL 31.571 - 0.160 11.627 43.358
Note: P – Passable NP - Passable
Source: Local Road Inventory Report, Municipal Engineering Office, Dinapigue, Isabela, 2018.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The existing road network in the municipality has an aggregate length of 43.358
kilometers and all are passable. Majority of the roads are gravelled which comprise
72.81% of the total road network while 26.82% are concrete and only 0.37% are earth
road. By administration, only Municipal Road and barangay Road exist in Dinapigue.
Almost fifty five percent are registered as Municipal Road while 45% are considered as
Barangay Road.
The Dibulo to Digumased Municipal Road is the main access of the municipality in
going to other provinces and major trading points outside the municipality. Currently,
vans and busses operates in the municipality which route is the Dinapigue-Santiago City
via Aurora and Quirino provinces and vice versa. However, these vehicles are until
barangay Digumased (Poblacion) only since majority of the roads connecting the
Poblacion to other barangays are gravelled and have limited carriageway that is not
enough for opposing vehicles.
The proposed road is also a Municipal road that connects the four influence barangays
to the market and trading points in Poblacion. This road is a combination of 1.065 km
paved road,7.269 km are gravelled road and 0.16 earth road. The average road width is
about three to six meters.
During the monsoon season, most of the time the barangays in the influence area are
isolated from the Poblacion when Dedekkel creek, Cabulig Creek and Dinapigue River
overflow.
Table 5: Desired Roads, Bridges and Transport System in the Road Influence Area-RIA by
road type and classification – With Project Scenario.
Road Type (in kms)
Road TOTAL
Gravel Earth Concrete
Classification
P NP P NP P NP P NP
Municipal Road 11.651 - - - 12.241 - 23.892 -
Barangay Road 12.811 - - - 6.655 - 19.466 -
TOTAL 24.461 - - - 18.696 43.358 -
Note: P – Passable NP - Passable
Source: Local Road Inventory Report, Municipal Engineering Office, Dinapigue, Isabela, 2018.
Table 5 shows the desired roads by type after PRDP intervention. The total length of the
road will still be the same at 43.358 km. However, there will be an increase of 7.26884
km of concrete municipal road while the 1.065 km existing concrete road will be
removed and replaced to a more durable PCCP.
iv. Desired road network condition in the project influence area vis-à-vis accessibility
of the road to market centers/trading points
The subproject basically involves concrete paving of the road or technically described
as Portland Cement Concrete Pavement (PCCP). It also includes construction of a 200
meters Reinforced Concrete Deck Girder (RCDG) bridge, line drainages, reinforced
concrete box culverts (RCBC) and slope protection and installation of Reinforced
Concrete Pipe Culverts (RCPC). This will significantly improve mobility and enhance
the quality of transport utilities that will ply the road segments, either to or from points
of destination within the project locale. In addition, the four barangays of the
municipality will be passable even during the rainy season.
Concreting of the road will also result to savings from maintenance costs of vehicles of
transport service providers and to farmers who have their own vehicles for transport of
commodities. This improvement will also decrease transport losses that will redound as
additional benefit to farmers in the road influence area. This will ensure that
commodities from the area maintain their freshness upon reaching the market.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Public utility tricycle cater mobility within the municipality. These vehicles have no
definite or respective route. The operator or driver can ferry passengers to any point of
the municipality as long as they have reached their turn in the queue.
With the improvement of the proposed road, the buses and vans going to Santiago City
and vice versa might even reach Barangay Ayod, the farthest barangay of the
municipality.
vi. Demand-Supply Analysis (gap bet. With proj. and without project)
Before PRDP intervention, only26.82% of the total road network of the municipality are
concrete resulting to poor access or link of the Aromatic Pigmented rice to the Poblacion
and other trading centers outside the municipality. With the project scenario, percentage
of concrete road in the municipality will increase up to 43.32%. It willaddress the
problems on accessibility of the road for A/P rice production and other agricultural
products as presented in the Value Chain Analysis taking also into account that the
barangays in the road influence area are isolated during the rainy season.
Out of the total gravelled road segments in the municipality, the proposed segment is
the only access of the majority of the barangays in the municipality. Hence, the segment
is highly prioritized. The whole stretch of 8.334 kilometers existing road will be
improved through widening, construction of bridge and appurtenant structure such as
grouted riprap, RCBC and RCPC.
The improvement of the farm to market road is expected to open opportunity to increase
regular public utility transport and private vehicles to serve the residents of the target
barangays. It will also address the problem of high cost of transporting products to the
trading centers. Further, the improvement of the road access will encourage agricultural
production, increase yield/productivity, and facilitate speedy flow of goods and services
in and out of the barangays.
The improvement of the road into a climate resilient concrete road pavement will
consequently increase the normal traffic volume in the area. The risk to accident
will be minimized and thus will encourage the farmers to frequently use their
vehicles even during rainy season.
The generated traffic volume along the FMR will not increase without the project
scenario. The road users and public transport operators will not be encouraged to
buy or use their vehicles in going to the different due to high vehicle operating
cost and risk to accidents. With the improvement of the road, these problems will
be addressed and likewise reduce travel time. As a result, concreting of the FMR
will increasing vehicle trips per day thus increasing Generated Traffic Volume.
Improved road surface from gravel to a concrete road surface would encourage
traders from other municipalities to go directly in the farms.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Concrete Road Segment would also attract settlement on un-utilized land thus
there is an increase on Development/Induced traffic volume due to increase in
road users to be served by the road.
B. Technical Analysis
The proposed road with bridge subproject connects barangay Bucal Sur, Bucal Norte,
Dimalwade and Ayod to the Poblacion. It starts at the existing paved road in the
Poblacion and ends at the Dinapigue River in Barangay Ayod.
The existing surface type of the subproject is mostly gravelled surface with existing
paved sections. The existing paved roads are dilapidated and are programmed in the
subproject to be removed and replaced.
The existing road width ranges from three to six meters. Majority of the stretch is about
five meters, however on the rolling portions, the road is only 3 to 4 meters wide. While
on the residential areas, the existing road width is about six meters but with inadequate
road shoulder.
The proposed subproject will be a Portland Cement Concrete Pavement with width of 5
linear meter all throughout the stretch of the road. This is based on the computation that
that average daily traffic will be more than 200 vehicles during the project lifespan. The
road will be provided with 1.5 meters gravel surfaced shoulder on both sides where
applicable. These shoulders will have a Cross Slope of 3.0% for drainage purposes.
While on the rolling portions, curb and gutter will be provided to minimize massive cut
and fill and cutting of trees. Likewise, ample road signs will be provided for safety of
commuters. Curve widening by way of widening the concrete pavement and provision
of guard rail were proposed to mitigate the hazards of sharp or blind road curves.
Side slopes for cut and embankments, as far as practicable, shall follow PRDP geometric
design schemes. To minimize erosion on embankments, grouted riprap wall as slope
protection measures shall be provided on heights greater than 1.0 meter.
Majority of the road is flat especially on the residential areas and rolling on some
portions with a maximum grade of more than 18%. To meet the PRDP standards, the
road grade is designed to have a maximum of 12 % and minimum line gradient of 0%
in accordance with the standards as set in the operations manual of the Project. The
designed shall follow the existing grade massive cut and fill. Sharp vertical curves was
designed in accordance with the minimum Length of Vertical Curve (LVC) of 60
meters.
Drainage and hydraulic analysis were carried out in locating and constructing the
adequate drainage structures and components in the sub-project area. As part of the
analysis, Rational Method was used to compute discharge measurements using assumed
run-off coefficient of 0.6 and rainfall intensity of 243.22 mm/hr with 15-year return
period. The Manning’s Equation was used to determine the appropriate size of drainage
structures. The minimum pipe size to be installed will be 910 mm in diameter to conform
to the PRDP I-BUILD Operations Manual.
The Talbot’s Formula was being used to compute required waterway area for the
RCBCs and was compared to waterway area of proposed and existing box culverts.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Refer to the schedule on the plans with their specific locations /Stations and to the
Hydraulic Design Analysis for the details of computations in Feasibility Study Annex
B.
The results of the investigation show that overburden soil deposit was encountered from
30.0 m below the ground surface. Based on the findings from the 7 exploratory
boreholes drilled sand and gravel may be considered representative of the deposits in
the area. Further, shallow foundations for structures consisting of isolated, combined or
continuous footings would be adequate to support the proposed structures. These
footings should have widths not less than 1.0 m and should be founded at least 2.0 m
below the natural ground level. At this depth, a net allowable soil bearing capacity of
100 kPa may be used in proportioning these footings. Isolated footings must be tied
together in least two orthogonal directions by stiff tie beams and grade beams. This is
to counter any lateral displacement if earthquake occurs and to provide rigidity in the
foundation. Using the recommended allowable bearing capacities, a maximum total
settlement of less than 1.0 inch and a differential settlement of less than ¾ inch may be
expected. Due to expected large maximum settlement when shallow foundation is
applied, it is recommended that building with a load exceeding 100 kPa be supported by
micro piles. A relatively higher soil bearing capacity can be generated from the medium
dense sand but this will require to reach the firm strata at least 24.0 m for bored piles
Refer to the Feasibility Study Annex C for the details of the geotechnical analysis
conducted.
v. Structural analysis of pavement thickness, bridge structures and other major structures.
The pavement thickness design was adopted from pavement design analysis using
AASHTO method as contained in the DPWH designed Guidelines Criteria and Standard
considering the latest average daily traffic and Axle. Based on the calculated Cumulative
Equivalent Single Axle Load, and on the assumption that there will be a 2.0% increase
annually of average daily traffic, the pavement thickness was determined to be 0.20 m.
Refer to the Feasibility Study Annexes B for the details of the structural analysis of
pavement thickness.
The bridge component of the project was designed based on the Australian Standard
Design Specifications using the Modelling, Integrated Design and Analysis Software
(MIDAS).
Using the initial findings of the exploration and geologic maps published by the Bureau
of Mines, the following parameters were used for seismic design as required by the
National Structural Code of the Philippines 2015:
A peak ground acceleration of 0.4 g may be expected on site during intense earthquakes.
This is based on the assumption of 500 –year return period on rock site.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The alignment of the bridge was based on the alignment of the proposed farm to market
road. Each footing would be 3m x 3m x1m embedded 1.5 m from the natural grade line.
The columns are 1.2m x 1.2m reinforced concrete with a height of about 6 m. Refer to the
Feasibility Study Annexes D for the details of the bridge design calculations.
Good quality quarry, borrow pits and construction materials for embankment could
be sourced-out within the road influence area. These quarry sites were certified by
the Department of Public Works and Highways Isabela 4th District as qualified source
of construction materials. With respect to other construction materials, these will be
sourced from Casiguran, Aurora, about 50 kilometers from the municipality of
Dinapigue.
The LGU are aware of the negative effect of these instances thus, proper disposal sites
were identified at barangays within the road influence area. These were the low lying
areas of the barangays with written consent from the lot owners.
b. Handling of Materials
Handling of the materials will not be a problem because the existing road is accessible
to vehicles. The existing road serves as an access of the transportation system in the
area. Likewise, the road connecting Dinapigue to the municipality of Aurora is also
an existing road with patches of gravelled road.
The summary of Items of Work for the subproject is shown in Table 6. As shown, the
total Estimated Project cost for the road component of the subproject is Php
122,920,539.40 with a development cost per kilometer of approximately Php 15.2 M.
This is higher compared to the Php 10 M per kilometer parameter cost indicated in
Project’s Operations Manual for rural infrastructure due to provision of structures to
ensure the safety of commuters and environmental sustainability of the subproject.
The bridge component of the project cost to about Php 355,893.91 per linear meter. This
is slightly lower to the Php 5000,000 per l.m parameter cost set by the project due to
non-inclusion of crane way and a detour bridge as a result of subproject appraisal review
(SPAR) conducted.
The project will begin upon approval. The project duration for the road component
estimated about 555 calendar days while the bridge duration is estimated at 540 calendar
days. The total duration for the road and bridge is inclusive of 150 and 145 unworkable
days, respectively. The unworkable days include Saturdays, Sundays and Holidays.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
C. Operational Analysis
The Local Chief Executive of Dinapigue issued Executive Order No. 002, series of 2019
creating the Philippine Rural Development Project – Municipal Project Management
and Implementing Unit (PRDP-MPMIU) which will have the main responsibility in the
planning, preparation, implementation and monitoring of the PRDP subprojects.
Feasibility Study Annex F presents the organizational structure of MPMIU with their
corresponding functions and responsibilities.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The following will be the key roles and responsibilities of the I-BUILD personnel
involve in the construction:
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
c. Materials Engineer
1. Maintain liaison with the PE, the Resident Engineer (RE) and the Contractor’s
representatives as to:
• the construction program
• the approved method of materials distribution, placing, compaction,
protection and
• general compliance with the tests described in the Specifications.
2. Check inventory and calibration of the site laboratory against the equipment
required by the Contractor
3. Instruct and supervise the Contractor’s laboratory staff.
4. Visit the sources of materials supply and manufacturing plants proposed by the
contractor
5. Oversee initial and subsequent periodic tests on all aggregates, cement,
reinforced steel, etc.,
6. Immediately notify the Contractor, the Engineer and the Engineer’s
Representative of any materials which have failed or are considered likely to
fail to comply with the Specifications.
7. Select and oversee tests on concrete mixes, which the Contractor proposes to
use including Job Mix Formulae
8. Carry out initial and periodic checks of all concrete batching, mixing and
transporting equipment including calibration
9. Select and mark, in accordance with the Specification, concrete test specimens
and subsequently witness all site tests carried out on them.
10. Compile and maintain comprehensive records of all concrete placed.
11. Advise the Resident Engineer on approval of admixtures, curing agents etc.
12. Establish, where required by the Specifications, the in-situ properties of ground
beneath existing pavement layers.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
13. Establish in laboratory trials the properties of soil being used in road base
construction, backfilling, etc.
14. Ensure the proper execution by Contractor’s technicians of in-situ density
testing of soils and pavement materials.
15. Supervise whatever other in-situ testing of soils is required by the
Specifications
16. Supervise the Contractor’s testing trials to establish the design concrete mixes
and submit recommendations to the Engineer.
17. Attend to the initial and subsequent periodic checks of all mixing and
transporting equipment for asphalt materials.
Upon the subproject completion, to sustain the project, the Municipal Local
Government Unit (MLGU) of Dinapigue and the four (4) Barangay Government
Unit beneficiaries, will enter into an agreement for the routine and periodic road
maintenance of the farm-to-market road. The MLGU of Dinapigue shall be
primarily responsible for the continuous and proper operation and maintenance of
the subproject. It shall guarantee that the O&M of the subproject will be carried out
in a satisfactory manner as stipulated in the subproject implementation agreement.
The MLGU shall be trained on the correct O&M procedures appropriate for the
specific rural infrastructure by the DA-PRDP.
Barangays Bucal Sur, Bucal Norte, Ayod and Digumased will also be responsible
for the operation and maintenance of the road sections within their respective
administrative jurisdictions. The counterpart of these barangays is 20% of the labor
cost.
The MLGU will allocate necessary annual funds and manpower for the
maintenance work to ensure the sustainability and operation of the sub-project. The
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The total annual cost of the aforementioned maintenance activities would be Php
201,156.61. This includes the cost in equipment and labor only. Twenty percent of
the labor cost will be the counterpart of the barangays covered by the subproject.
Every six years of the project, clearing and grubbing and re-surfacing of the road
shoulder shall be conducted as part of its periodic maintenance. This additional
activity amounts to Php 1,277,950.46 for the whole stretch of the road.
D. Social Analysis
i. Project beneficiaries
The proposed subproject will directly benefit 379 households residing in Barangays
Bucal Sur, Bucal Norte, Dimaluade and Ayod. As to population, the total number of
beneficiaries is 4,494 of which are 2,330 males and 2,164 females. With the presence of
the proposed subproject, the residents will have new opportunities for better education,
economy and entry of new comer to the location.
There are about 216 beneficiaries engaged in agricultural activities and fishing. Many
of them belong to the middle income group in our society.
Population
Barangay Household Male Female
Total
IP Non IP IP Non IP
Bucal sur 166 369 332 701
Bucal Norte 75 146 121 267
Ayod 62 40 116 37 119 312
Dimaluade 76 189 166 355
Total 379 40 820 37 738 1,635
Source: MPDO, Dinapigue, Isabela, 2017.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Both residents and barangay officials overwhelming accepted the said project because
they believe in the far reaching benefits that will improve their agricultural production
and their economics status in life. The beneficiaries do not have any apprehension
during the said meeting instead they were very vocal that they liked the said project.
Thus, all project affected person signed a Certificate of no Objection during the
consultation conducted in favour of the implementation of the subproject.
Another Consultation was made with the 5 Barangays concerned. The consultation
meeting was conducted on May 22, 2019. And attendees are rise up to 511. The same
issues arise and some issues of women are discussed.
A Grievance Redress Mechanism (GRM) was created through an Executive Order No.
07 Series of 2019 dated March 5, 2019 issued by the Municipal Mayor, providing for the
organization, composition, function and duties and responsibilities of the members of the
GRM. The said mechanism will be headed by the Chairman SB-Member-Chairperson on
Committee on Ethics.
This mechanism provides for the feedback or complaint procedure covering the pre-
implementation up to the completion stages of the sub-project. Public awareness
campaigns, trainings and capability building in the implementation of the sub-projects
will be conducted and this shall be spearheaded by the GRM committee.
ROMAR V. CASTILLO
RUTH B. DERIJE
FLORANTE D. RIVERA
Members
There are 183 persons living along the stretch of the project who are considered
Indigenous People. This IP composes of 33 Dumagats and 150 Igorots of which 95 are
male and 88 are female (see SES Annex X): IPs of Dinapigue). The said IP’s have already
adopted the ways of lowlanders because of intermarriage. Their primary source of
livelihood is agriculture and fishing and most of them belong to the high-income and
middle income group in our society. They have no separate development plan instead
they adopt the development plan on their barangay and municipality.
The proposed subproject is not situated inside any Ancestral Domain (AD) neither nor
any member of ICC/IP is being affected along the stretch of the 8.3 kilometer road.
According to the NCIP Administrative Order, Section 15, No.3 s. of 2012 or the Revised
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Guidelines of Free and Prior and Informed Consent (FPIC) and related Processes of 2012,
“When the area is patently and publicly known to be outside any AD or that activity is
determined, after FBI, not to affect an AD, the Regional Director with the concurrence of
the concerned Commissioner, shall issue a Certificate of Non-Overlap of CNO”. If it be
apparent that an AD shall be affected by the proposed project, FBI and FPIC process shall
be mandatory. A letter request for the certification from NCIP. (See SES Annexes__:
Request Letter to NCIP-Certification)
The project was not solicited by the IP’s themselves. They were properly consulted and
informed about the project. They voluntarily accepted the development project.
Agtas Tribe are found in the municipalities of Palanan, Divilacan and portions of
Dinapigue particularly in the portions of Barangay Ayod, Bucal Norte, Bucal Sur and
Digumased.
The proposed subproject has required 8 meters width and a length of 8.3 kilometres. The
detailed engineering designs provide a Portland Cement Concrete Pavement (PCCP) of 5
meters and 1.5 meters road both shoulder with a total of 8 meters formation width.
The proposed subproject involves the rehabilitation of a FMR including its bridge
(Segment 1 and 2), Generally, the sub-project affects some temporary structures and
Trees since that Road Right of Way (RROW) has averaging 14 meters so there will be no
RROW acquisition to made. However, there are 22 PAPs who have listed in the municipal
RROW. See table List of Project Affected Persons (PAP’s).
STATUS MOD
OF E OF MARITA
OWNERS VULNERA
ACQ L
HIP BLE/DISA
UISI STATUS
DVANTA
Leased, TION
GED
TOT Owned as INDIVIDU
PROJECT AL seen in land AREA
ALS
AFFECTED LAN Title/Tax TO BE Donat
List of Affected Married,
PERSONS DHO Declaration, ACQU ion,
(PAPs) LDIN IRED Single,
Comp
GS Single
Heir of the ensati
Parent,
owner in on, Senior
Widowed/
Land Title, Waive Citizen,
Widower
TCT/Tax r PWD
Declaration
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The proposed road is existing municipal road with a right-of-way of 14 meters. There is
no underground utilities like drainage and water system to be affected by the construction.
However, there will be temporary structures and 339 trees within the road right-of-way
to be affected. Also, 10 electric posts along the sub-project will need to be relocated.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Table 11. Number of Temporary Structures Affected by the Right of Way Sample
The project affected families have waived their rights and claims over the affected
temporary structures. However, DENR has conducted inventory of trees to be cut with a
total of 339 Mixed Species. Cutting of affected trees affected will be turned into lumber
and turned over to owner.
There will be no physical displacement of persons. During consultation dialogue with the
beneficiaries and actual ocular survey, there will be no house to be relocated. The
recipients were very interested and willing to support and cooperate for the success of the
said project. They have no demands regarding compensation because the subproject will
not displace them from their present location.
The expected losses resulting from the implementation of the subproject are insignificant
and therefore, will not result to any economic displacement of persons. Instead, it will
improve their mobility. The adverse effect of the subproject on the landholdings affected
is insignificant and negligible compared to the expected benefits like efficiency in the
transport of products and increase in income. There is no Resettlement Plan formulated
since there will be no relocation of houses or economic displacement of persons.
E. Environmental Analysis
i. Natural habitat
The proposed farm to market road is a 8.3 kilometers existing road that traverses trees,
temporary structures, and open grasslands starting from barangay Digumased,Bucal sur,
Bucal Norte, Dimaluade and Ayod. The project site is not within a declared protected
area, thereby no wildlife or endangered and other important species shall be affected. It
has been observed that local birds found in the forested portion of the barangays often
visits the kaingin areas to eat insects in the agricultural crops planted in the area. There
are also tourist spot who is near in the project site.
Location of the Nearest protected area which is Northern Sierra Madre Natural Park is
approximately 21 kilometers away from the Poblacion, wildlife is approximately 15
kilometers away from the Poblacion and Bonsai forest is approximately 18 kilometers
away from the Poblacion of the municipality.
The subproject does not affect any cultural and historical structures, natural features,
landscapes, archaeological sites, structures or monuments, and or physical and cultural
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The topographic of the proposed Subproject have flat terrain. The soil types are clay loam
for rice lands and sandy loam for corn lands.
The clay loam soils are with particles of very small that tends to be heavy because they
are so dense. While this kind of soil is very hard to work with, it can be improved to be a
very good growing medium. When this type of soil is wet, it swells and retains water but
when it dries it shrinks which forms dense clod and cracking the soil surface.
Based on 2018 DOST- PAGASA, peak rainy month is in December-January with an
average monthly rainfall of 243.22mm/hr.
Given the soil types and weather classification, the potential in erosion and
sedimentation is low, although several aspects contribute to the occurrence of soil
erosion such as rainfall, crop rotation/cultivation practices and topography should
be considered.
iv. Hazard/risk assessment (Drainage Situations, Erosion, and Flooding Potential)
There are existing reinforced concrete culverts in the proposed subproject but not good.
Thus, the drainage are proposed to be constructed in the required standard specification.
These proposed structures are for drainage and flash flood mitigation measures.
The project site is not a flood-prone area. This will ensure that the road will not be
submerged and will be passable in times of flash flood particularly during rainy season.
As the area is generally flat to undulating in terrain, erosion problem is minimal. The
erosion problem is foreseen to be encountered in the road sloping side and road
embankment that will cause siltation of drainages and damage of roadway and the PCCP.
As a safeguard, a grouted riprap/side slope protection is proposed to be constructed along
high/deep roadside slopes and protective structures should be provided to the identified
hazard prone area to ensure the safety of the workers and community during
construction. With all these measures proposed to be undertaken, the proposed project
will not adversely affect the drainage situation, erosion, and flooding the area. Rather,
the addition of rows of Culverts is a drainage situation improvement measure.
Most of the influence area of the project already adopt and support
IPM/KASAKALIKASAN strategy to improve harvest. The farmers have attended
trainings through Farmer Field schools to develop their skills for a more productive,
profitable and sustainable crop production system. They continue to adopt the IPM
principles and are partner advocates for a healthy rice, corn and vegetable production.
They now practice the reduced use and frequency of insecticide application to minimize
the effects on the environment.
Risk assessment which includes four issues such as characterization of the biological
control agents, health risks, environmental risks and efficacy must be done in order to
have a better understanding of the life cycle of pests that cause damage to agricultural
crops within the influence area. Once the pest is identified, knowledge of its life cycle
enables the farmers to adopt the appropriate interventions to eradicate the pests.
vi. Status of Environmental Clearances.
The proposed project falls under the Category B which requires an Environmental
Compliance Certificate (ECC). The ECC and the Initial Environmental Examination of
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
the proposed project were secured from the Environmental Management Bureau,
Department of Environment and Natural Resources – Region 02.
A certification from the DPWH –Isabela fourth district Engineering office was secured
stating that the specified quarry materials for the subproject at Dinapigue River Brgy.
Ayod, Bucal Sur, Bucal Norte and Dimaluadi, Dinapigue, Isabela quarry areas that meet
the DPWH standard specification (Please see SES Annexes: DPWH Certificate for
Quarry Materials).
The proposed subproject will not cause substantial damage to the environment, whether
on the green fields or developed sites. Likewise, it is also expected that during the
construction period, some issues will be experienced by the community. It is therefore
important that during the construction, the contractor should observe and consider the
following measures contained in the Environmental & Social Management/Mitigation
Plan (ESMP) and Chance of Archeological/Paleontological Finds Procedure for
Subprojects (Annex H-2). The contractor will be required to prepare a Contractor’s ESMP
and shall submit an approved DOLE Occupational Safety and Health Plan (OSH-Plan).
The contractor will be properly advised on the proper disposal of waste materials during
construction period. A motor pool shall be located away from waterways to avoid
contamination of surface and groundwater with oil/grease. Spillage of oil/grease shall be
minimized and proper handling and disposal of the waste will be strictly observed.
Temporary camps shall be constructed to house workers. Although local workers residing
within the RIA will also be provided with complete toilet facilities.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
There will be no significant effect on the travel, delivery of services and economic
activities within the road influence area during the execution of the subproject because
the contractor will be required to keep the road open and passable during the entire
construction period. To ensure commuters’ and residents’ safety, road directional signs
shall be installed especially along residential areas and school zones. Conspicuous and
reflectorized road signs shall be placed on dangerous stretches of the road in compliance
with LTO rules and regulations.
Dust is expected when construction is done during dry months. Hence, intermittent
watering of ground surface and setting up of speed limits for vehicles will be undertaken
to minimize formation of dust. On the other hand, mud will be properly piled up and
disposed.
Erosion of exposed road sides is expected during rainy days. Proper disposal and
compaction of soils shall be simultaneously implemented during those days.
g. Potential increase in the use of pesticides due to intensification of cash crop production
in the area
Farmers within the RIA are already adopting and practicing the IPM-Kalikasan Approach
of farming. Season-long Farmers Field School are being conducted showcasing, among
others, judicious and responsible use of pesticides. This intervention is undertaken every
cropping season thru a collaborative effort of LGU’s (Municipal and Barangay) and the
Agricultural Training Institute.
h. Local unemployment
Contractor to comply with site selection, operation and abandonment guidelines for quarry
sites. The source of quarry materials is 10 kilometers for embankment requirement and 9
kilometers for sand and gravel away from the project site. Loads of trucks plying the road
should be regulated. Close monitoring shall be implemented. The road to be used by the
haulers from quarry to project site shall be properly maintained by the contractor. Also,
hauling trucks shall be required to place nets on top of their vehicles to ensure that the
materials shall not be littered along the roads reroute to the site. Constant monitoring shall
be done by the Environmental and Natural Resources Officer to ensure that quarry
materials be properly assessed and transported.
Contractor to comply with site selection, operation and abandonment guidelines for
Batching Plants. Temporary batching plant of the contractor will be put up in a secluded
area at barangay Digumased that is away from residence, and from bodies of water to
avoid percolation of chemicals and pollution hazard (noise and air). The workers must
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
use proper personal protective equipment. As much as possible the contractor must to
utilize modern technology to lessen the hazard of pollution. Collection of used cement
bags shall be done to maintain clean environment in the vicinity.
Laborers and local residents will be exposed to increased health and safety risk due to
construction traffic, heavy equipment operation and other hazards at construction sites. The
contractor will be advised to observe standard environmental, health and safety measures
and good housekeeping at the construction sites. Temporary barriers and warning signs
around deep excavations, stockpiles and the like will be installed. Safe storage and handling
of supplies will also be undertaken.
l. Road Safety
With the new concrete pavements, risk of accidents will likely increase as motorists likely
increase their speeds. The contractor will provide road sign in the road segments that will
have deep ravines, blind and dangerous curves, and school zones. Guardrails will also be
installed in segments and curves with deep roadside ravines.
Contractor to comply with site selection, operation and abandonment guidelines for
Burrow Pit requirement.
Contractor to comply with site selection, operation and abandonment guidelines for excess
excavation and or dumping site. A certification was issued by five private lot owner as
dumping site for the excess excavations and other forms of construction wastes.
Construction requires a lot of workers. The total manpower requirement of the construction
is 64 skilled and 89 unskilled workers. The peak manpower requirement of the construction
is 31 skilled and 29 unskilled workers. There is no potential risk or presence of
communicable and endemic diseases in the road influence area. Potential cultural conflict
will not also be present since most of the workers belong to the host community. However,
the increase in labor influx particularly of non-resident or local in the area may have
potential social impacts in the community on health, violence, and abuse, among others.
The contactor shall ensure accountability on the actions of workers towards the community.
A regular orientation/briefing on the following should be done:
a. Proper behavior and values in coordination and communication among the community
particularly on their cultural traditions and practices
c. Prohibition on drug use, appropriate areas for smoking, and control on alcohol
consumption.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
F. Financial Analysis
i. Total Project Cost by Financing Source and Cost Sharing(WB LP, LGU,
Beneficiaries)
a. Direct Cost
The total direct cost of the subproject is estimated at Php147, 169,414.94. Seventy
six and 82/100 percent (76.82%) of this cost comes from the cost of materials while
and remaining cost items include equipment (17.2%) and labor (5.99%).
The price of construction materials also includes freight cost from the province of
Aurora to project site. The 2014 Association of Carriers and Equipment Lessors
(ACEL) rates was used as reference for the equipment cost while the labor rates was
based on the existing labor rates of the province of Isabela.
b. Indirect Cost
The total indirect cost of the subproject amounts to Php46, 929,906.63. This
includes Overhead Contingencies and Miscellaneous (OCM), Contractor’s Profit
and Taxes. The computation of the indirect cost was based on the DPWH
Department Order No. 197, Series of 2016 or the Revised Guidelines in the
Preparation of Approved Budget for the Contract (ABC). However, contrary to the
suggested VAT in the D.O. 197 at 5%, the subproject used 12% of the sum of
Direct Cost, OCM and Profit based on the PRDP Operations Manual of Rural
Infrastructures.
The Office of Sangunian Bayan of Dinapigue had issued Ordinance No. 2019-250 dated
May 27, 2019 authorizing the Municipal Government of Dinapigue to borrow Php
31,200,000.00 with the Land Bank of the Philippines to finance the municipality’s
counterpart in the proposed sub project (See Annex H of Feasibility Study Annexes). The
loan is still on process.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
i. Economic Benefits
Several benefits can be derived from the proposed FMR subproject that can make the
lives of the residents within the RIA particularly the farmer-beneficiaries better and more
comfortable. The following are the quantifiable benefits from the subproject:
1. Savings from Hauling Farm Output – One of the major benefits derived from the
FMR is the savings from hauling farm outputs. Savings from hauling farm outputs is
derived by getting the difference between the average current prevailing cost of
hauling and the projected transport cost “with” the subproject, multiplied by the
volume of farm produce to be marketed.
2. Savings from Hauling Farm Input - Similarly, savings from hauling costs of farm
inputs is calculated by multiplying the difference in the cost of hauling the inputs
“without” and “with” the subproject scenarios, with the volume of farm inputs (e.g.,
fertilizer, seed requirements, etc.).
4. Vehicle Operating Cost Savings - VOC Savings is calculated from the projected
average annual daily traffic data multiplied by the vehicle operating cost difference
(changes in VOC in with and without project scenarios) and the actual road length.
Table 13 shows the average production per hectare of the different crops grown
within the RIA area as well as the corresponding basic farm input requirements.
Majority of the crops planted is rice with total area of 82.5 hectares with an average
production per hectare of 80 sacks per cropping at two croppings per year except in
Barangay Ayod due to the absence of irrigation system. Almost 80% of the produce
are sold in the market since some are used for hold household consumption.
Corn is also one of the commodities planted in the RIA. Almost 100% of the corn
produced are brought to the market. Portions of the corn areas are planted with peanut
as a fallow crop. Similarly, 100% of produced peanuts are sold in the market.
Banana and Coconut both constitutes to about 20% of the existing production area.
These crops were once the major commodities in the municipality however the area
declined due to occurrence of pest and disease in the previous years. About 99% of
the production of these crops are sold in the market.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
The improvement of the road from gravelled to paved will result to ease and a lesser
time in bringing the agricultural inputs and outputs to the farm and market,
respectively, thus the current fare is expected to reduce by 20%. This savings will
result in an increase of income of the farmers within the locality. The estimated
average savings in hauling cost of farm produce and inputs for 20 years are Php
506,541.35 and Php 14,651.70, respectively. (Refer to EFA Table 5a and 5b for the
detailed computation of savings from output and input hauling cost).
The four concerned barangays have a total number of 379 households with a total
population of 1,635 growing at growing at an average rate of 2.24 percent annually.
About 53 percent of the population is economically active. Approximately 84% of
the employed population commutes or use the FMR subproject to get to their jobs.
The commuters in the economically active population within the RIA will benefit
upon concreting of the proposed FMR since there will also be reduction in their travel
time. Table 14 shows the population distribution in the road influence barangays.
A traffic count was conducted in the RIA to project the annual average daily traffic.
Other vehicles outside the RIA that use the FMR especially during the harvest season
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
that were not observed during the conduct of the Traffic Count activity were also
included in projecting the daily traffic.
Table 15 shows that Motorcycle ranks first in the number of vehicles in the locality
owing to its ease of operation. The people in the barangays use their motorcycles
almost every day in going to their farms, to their jobs and to other barangays. Some
households also have kolong-kolong which are being used to haul products and
sometimes used as service vehicles by the households. While Tricycles, the only
public utility vehicle in the RIA also operates almost every day. These vehicle are in
limited number since majority of the household have their own unit of motorcycle
and kolong-kolong. There were also 2 units of trucks observed during the traffic
count activity. These trucks are the service of the mining workers in the municipality.
Cars and vans and other service vehicles are also used by some commuters in going
to their jobs in the Poblacion. Other vehicles which were not observed during the
traffic count activity also ply in the area during the cropping season. Based on the
inventory of the Municipal Planning and Development Office (MPDO), there are
about 30 Kuliglig plying the area during the cropping season. Likewise, combine
harvesters and elf from the Poblacion and other barangays also visit the area during
harvest season. These vehicles are also included in the computation of VOC Savings.
The vehicles using the FMR are expected to increase by 2.0% annually due to the
expected increase in population and production area. More residents will be inclined
to buy their own vehicles and more buyers will be attracted to haul agricultural
products utilizing the all-weather concrete paved road.
The vehicle operators would also benefit upon improvement of the road since
operating cost would be lessen (Refer to EFA Table 4 for the Savings from Reduction
in Vehicle Operating Cost).
Table 15 also shows the capacity and hauling cost of products. Transport costs or fare
vary by the type of vehicle use and distance travelled to bring these commodities to
their destinations. The average fare considering an average distance from within the
influence area is P35/sack. With the large volume of agriculture production in the
locality, considerable savings in hauling costs could be realized if the proposed sub-
project is completed. Approximately 20% of the average hauling cost would be
reduced based on the interview conducted to the operators by the Municipal
Agriculture Office of Dinapigue due to ease and lesser time in transporting the goods.
(Refer to EFA Table 5a and Table 5b for the Savings from output hauling and Input
hauling cost on all crops).
Table 16 shows that with the improved road condition, commuters within the
influence area are able to benefit due to reductions in their travel time using the
proposed FMR. Without the project, average travel time would take about 16.25
minutes from the road influence area to the Poblacion. With the improvement of the
road, travel time is projected to significantly reduce to 8.125 minutes only. An
estimated of 728 commuters are expected to be regularly using the FMR to reach
their jobs. Utilizing the values, there would be about 3,075,386 minutes total time
savings that would be generated
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Table 15. Annual Average Daily Traffic in the Road Influence Area.
Bucal Sur Tora-Tora 2 260 20 2 Php 20 per sack Bucal Sur- 1.1 km
of cargo Poblacion
Motorcycle 152 365 - 2 - Bucal Sur- 1.1 km
Poblacion
Tricycle 5 365 5 Php 20 per person Bucal Sur- 1.1 km
or per sack of Poblacion
cargo
Car/Van 1 260 - 2 - Bucal Sur- 1.1 km
Poblacion
Kuliglig 2 180 - 2 - Bucal Sur- 0.5 km
Poblacion
Kolong- 78 365 5 Php 20 per sack Bucal Sur- 1.1 km
kolong of cargo Poblacion
Bucal Tora-Tora 1 60 20 2 Php 25 per sack Bucal 1.5 km
Norte of cargo Norte-
Poblacion
Motorcycle 63 365 - 2 - House-Farm 0.8 km
Tricycle 3 365 5 2 Php 25 per person Bucal 1.5 km
or per sack of Norte-
cargo Poblacion
Car/Van 5 260 - 2 - Bucal 1.5 km
Norte-
Poblacion
Kuliglig 10 180 - 2 - House-Farm 0.8 km
Kolong- 10 60 5 Php 25 per sack Bucal 1.5 km
kolong of cargo Norte-
Poblacion
Dimaluade Tora-Tora 1 60 20 2 Php 60 per sack Dimaluade- 3 km
of cargo Poblacion
Motorcycle 55 365 - 2 - House-farm 1.5 km
Kuliglig 10 180 - 2 - House-farm 1.5 km
Kolong- 10 60 5 Php 60 per sack Dimaluade- 3 km
kolong of cargo Poblacion
Ayod Motorcycle 66 365 - 2 Php 60 per sack House-Farm 3 km
of cargo
Tricycle 1 365 5 2 Php 60 per person Ayod- 6 km
or per sack of Poblacion
cargo
Car/Van 2 260 - 2 - Ayod- 6 km
Poblacion
Kolong- 17 60 5 2 Php 60 per sack Ayod- 6 km
kolong of cargo Poblacion
Note: 2 units of elf also ply the FMR as service vehicles of mining workers while 3 combine harvesters visit the area
during the harvest season (Municipal Agriculture Office, Dinapigue, Isabela, 2019).
Source: Traffic Count, Municipal Engineering Office, Dinapigue, Isabela, 2019.
Table 16. Average Time of Commuters within the Road Influence Area, 2019.
Barangay Travel time Travel time No. of trips No. of % Share of Average
WOP WP per person travel days Saved Time Daily
(one way, in (one way, in per day for Work Wage Rate
minutes) minutes)
Bucal Sur 5 2.5 2 260 100 250
Bucal 10 5 2 260 100 250
Norte
Dimaluade 20 10 2 260 100 250
Ayod 30 15 2 260 100 250
Average 16.25 8.125
Source: Municipal Engineering Office, Dinapigue, Isabela, 2019.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Naturally, when the condition of the road will be improved, agricultural activities
within the RIA intensify. Based on the Comprehensive Land Use Plan of Dinapigue,
there exist 1,100 hectares devoted for agricultural production in the four barangays.
In the previous years, Dinapigue was one of the major sources of Banana and
Coconut. However, Dinapigue was one of the municipalities infested by crop viruses
that totally devastated these crops. Currently, the municipality is slowly recovering
from the effect of the disease. With the improvement of the road, the mobilization of
the farmers will be improved and thus, speed up the recovery of the coconut and
banana plantations. The road improvement will also encourage buyers to visit area
and will encourage farmers to revitalize their Banana and Coconut production areas
including other rootcrops intercropped with these crops. Table 17 shows the
projected distribution of newly cultivated area per crop in the RIA. It is projected that
the projected expansion area will be met after five years according to the Municipal
Agriculture Office.
Table 17. Newly Cultivated Agricultural Area within the RIA, 2019.
Barangay Crop Potential Land Price (Php/_) Land Production Marketing
for Cultivation Development cost per Ha cost per kg
(Ha) cost per Ha (Php/Ha) (Php/sack)
(Php/Ha)
Bucal Sur Coconut 10 10/pc 20,000 75,000
Banana 10 25/kg 10,000 840,000
Squash 2 20/kg 5,000 61,560 28
Gabi 2 12/kg 21,500 28
Ginger 2 50/kg 61,560 28
Bucal Norte Coconut 10 10/pc 20,000 75,000
Banana 10 25/kg 10,000 840,000
Squash 2 20/kg 5,000 61,560 28
Gabi 2 12/kg 21,500 28
Ginger 2 50/kg 61,560 28
Dimaluade Coconut 5 10/pc 20,000 75,000
Squash 2 20/kg 5,000 61,560 28
Gabi 2 12/kg 21,500 28
Ginger 2 50/kg 61,560 28
Banana 5 25/kg 10,000 840,000
Ayod Coconut 25 10/pc 20,000 75,000
Banana 25 25/kg 10,000 840,000
Squash 2 20/kg 5,000 61,560 28
Gabi 6 12/kg 21,500 28
Ginger 6 50/kg 61,560 28
Source: Municipal Agriculture Office, Dinapigue, 2019.
A good PCCP road always make transhipment of goods easier, more convenient and
faster, hence the good condition of the road contributes in essence to the reduction of
these losses.
Farmer-residents in the RIA will draw benefits from the reduction of transport losses
particularly damages and wastage that usually incurred during the transport and
marketing of their agricultural outputs. Table 18 shows the estimated average
reduction in transport losses of all crops in the RIA. Based on the interview farmer
34
Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Table 19 shows that the Capital Cost of the project is Php 237,508,607.58. This comprises
of total project cost, costs of pre-engineering activities and supervision and safeguard
costs that includes operating expenses in securing permits, waivers and conduct of public
consultations. The annual estimated budget for the operation and maintenance is
computed at Php 201,156.61 covering the costs of vegetation control, declogging of
RCPC/RCBC, cleaning of drainage canal and removal of slides. While on the 6th, 12th and
18th year of the project, an additional of Php1,479,107.08 will be used for clearing,
grubbing and re-surfacing of shoulders as part of its periodic maintenance.
35
Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Using the necessary conversion factors estimated by NEDA, financial cost of the project is
adjusted to economic cost. Table 20 shows the details of this conversion.
a/ Assumption: 60% of material costs has foreign component that is subjected to shadow pricing using a factor of 1.2; 40% is base cost of locally-sourced materials (tax is calculated under 'Taxes')
a/ Note: shadow price of foreign exchange is 20% higher than the official rate
b/ Assumption: 100% of expenses is base cost (tax is calculated under 'Taxes')
c/ Note: Skilled labor includes driver, mason, engineer and the like; 100% base cost (tax is calculated under 'Taxes')
d/ Note: Unskilled labor includes laborer, helper and the like; not subjected to tax
d/ Assumption: Conversion factor for unskilled labor is 0.6 since its value is 60% only of the minimum wage (source: NEDA)
e/ Assumption: OCM is 12% of total direct cost if subproject cost is PhP 5 mln below; 9% if PhP 5 mln to PhP 50 mln; 7% if PhP 50 mln to PhP 150 mln; 6% if above PhP 150 mln
e/ Note: OCM is base indirect cost (tax is calculated under 'Taxes')
f/ Assumption: Contractor's Profit is 10% of total direct cost if project cost is PhP 5 mln below; 8% otherwise
f/ Note: Contractor' Profit is base indirect cost (tax is calculated under 'Taxes')
g/ Taxes is 12% of total mark-up value of materials sourced locally; should not be included in the economic analysis
h/ Note: Pre-engineering activities include FS and DED Preparation
h/ Assumption: Pre-engineering activities are 5% of base direct cost + 12% tax; economic cost, however, should exclude tax
i/ Assumption: Engineering Supervision is 5% of base direct cost + 12% tax; economic cost, however, should exclude tax
j/ Note: Safeguard cost includes operating expenses in securing permits, waivers and conduct of public consultations and activities required by SES Unit.
j/ Assumption: Safeguard cost is 0.5% of base direct cost + 12% tax; economic cost, however, should exclude tax
Source: POW, MEO, Dinapigue, Isabela, 2019.
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Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
Using these conversion factors, the operation and maintenance cost would yield to the
following:
The Project Evaluation criteria used were Net Present Value (NPV). Economic Internal Rate
of Return (EIRR) and the Benefit Cost Ratio. The road project is acceptable and economically
feasible when the following conditions are met:
Economic analysis shows that the project is economically feasible as shown by the following
results. (Refer to EFA Table 9 for the detailed computation).
Parameter Value
Economic NPV @10% (Php'000) 63,804,084.96
EIRR 13.6%
BCR 1.31
A sensitivity analysis is done in case of adverse conditions that may give rise due to high
prices of inputs and /or decrease in benefits. These potentially adverse conditions could
be typhoons or other calamities, global recession, workers strike and or sudden
withdrawal of funds due to unforeseen circumstances.
The results of the sensitivity analysis and that of the normal base scenario are summarized
in Table 23. The table shows that a 30% decrease in benefits would generate unacceptable
values – that is, EIRR, ENPV, and BCR are below the threshold values.
37
Rehabilitation/ Construction of Digumased-Ayod FMR with Bridge
Municipality of Dinapigue, Isabela
i. Conclusions:
Based on the result of the feasibility study, the subproject is found to be viable from the
marketing, technical, operational, social and environmental, financial and economic
viewpoints, therefore the proposed subproject is worth to undertake. The completion of the
subproject is expected to: (i) reduce travel time of the residents by 50% (ii) reduce hauling
cost by 20%; (iii) reduce transport losses by 50%; (iv) increase traffic volume by 2% yearly;
and (v) increase of 120 hectares in production area.
ii. Recommendation:
While positive results are derived from the economic analysis, the below threshold values
based on the result of sensitivity analysis should not be ignored and thus, every activity should
be closely monitored so that all potential benefits that could be derived from the subproject
will be achieved. Likewise there should be an intensive monitoring of the subproject most
importantly from the LGU Engineers during its implementation to minimize delays.
The subproject is highly recommended for implementation to increase income and improve
quality of life among residents of the barangays of Bucal Sur, Bucal Norte, Dimalwade and
Ayod in the Municipality of Dinapigue.
38