Construction/Rehabilitation/Concreting of Buli

Bayan San Isidro Mahaba San Roque

Tagbilaong Farm to
Market Road

FEASIBILITY STUDY

Municipality of Marihatag
Province of Surigao del Sur

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

Philippine Rural Development Project

TABLE OF CONTENTS
TITLE
Title Page
Table of Contents
List of Tables
List of Figures
List of Annexes
Executive Summary
Provincial Background
Location and Demographics
Economy
Agriculture and Rural Development Sectors
Project Identification and Prioritization Profile
E-VSA Maps and Statistics
Value Chain Summary
Abaca Production System
Processing
Trading and Marketing
The Sub-Project: The Road Influence Area
Sub-Project Objectives
Geographic Boundaries
Relative Distance to Growth and Commercial Centers
Demographics
Economy and Land Use
Off-Farm and Non-Farm Employment
Poverty Incidence
Market Analyses
Supply Side
Demand Side
Generated Traffic Volume
Diverter/Attracted Traffic
Technical Analysis
Horizontal Road Alignment Analysis
Vertical Road Alignment Analysis
Drainage/Hydraulic Analysis
Soil and Foundation Analysis
Proposed Sources and Location of Borrow Pits, Quarries and Construction Materials
Items of Work and Cost
Operational Analysis
Social Analysis
Project Beneficiaries
Indigenous Cultural Community/Indigenous Peoples (ICC/IP)
Site and Right-of-Way Acquisition
Damage to Standing Crops, Houses and/or Properties
Physical Displacement of Persons
Economic Displacement of Persons
Environmental Analyses
Natural Habitat
Physical/Cultural Resources
Terrain, Soil Types and Rainfall
Hazard/Risk Assessment
Flooding Potential
Landslide Potential
Mitigation Measures
Status of Environmental Clearance IEE
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Environmental Issues and Mitigation Measures

Financial Analyses
Project Investments
Economic Benefits
Vehicle Operating Cost (VOC) Savings
Savings in Output and Input Hauling
Benefits from Time Saved
Expansion of Productive Lands
Benefits in Reduced Post Harvest Losses
Economic Feasibility
Sensitivity Analysis
Conclusions and Recommendations
Conclusions
Recommendation
Annexes

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LIST OF TABLES

TABLE
NO.

TITLE

PAGE
NO.

A1

Population, Area, and Density by municipalities in Surigao del Sur,

2010
Land Classification by Municipality in Surigao del Sur
Land Use, Surigao del Sur
E-VSA result for abaca, Province of Surigao de Sur
Area. Volume of production, and yield of abaca, Caraga, 2009-2013
Abaca production in the Philippines ranked according to volume,
2011
Top 10 abaca producing provinces in the Philippines, 2013
Distance to Poblacion and mode of transport by barangay
Demographic composition by barangay
Average Total and Per Capita Income
Off-farm and Non-farm employment
Poverty Incidence
Existing road network with the RIA
Length and status of difference water forms
Traffic count Bayan-San Isidro-Mahaba
Twelve-year rainfall data from Hinatuan, Surigao del Sur
Proposed hydraulic structures for the segment of the road
Source materials for the proposed road segment Mararag-San PedroSan Isidro FMR
Cost estimate for the Buli-Tagbilaong FMR road component
Cost estimate for the Buli-Tagbilaong FMR bridge component
Summary of cost estimate for the Buli-Tagbilaong FMR
Environmental and Social Issues and Mitigation Measures/
Environmental and Social Management Plan
Computation of Economic Cost of Subproject
Sensitivity of EIRR to the prices of abaca and cost of transport
Sensitivity of BCR to the prices of abaca and cost of transport

A2
A3
B1
B2
B3
B4
C1
C2
C3
C4
C5
D1
D2
D3
E1
E2
E3
E4a
E4b
E4c
G2
I1
I2
I3

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5
6
8
9
13
13
14
14
15
16
16
16
19
19
20
21
22
22
26
35
37
38

LIST OF FIGURES
FIGURE
NO.
A1
B1
B2
B3
C1
C2
C3
E1
G1
H1
H2
H3
H4
H5
H6
H7

TITLE
Map of Surigao del Sur
E-VSA map of abaca commodity, Surigao del Sur
Breakdown of abaca production in the Philippines by island group,
2013
Flow of abaca fibers from Marihatag and other parts of Mindanao
Geographic Boundaries of Marihatag
Road Network Map of the Municipality of Marihatag
Geo-tagging of abaca and other processing centers
Bayan-Mahaba-San Isidro route in blue and Buli-Tagbilaong (San
Isidro) in red.
Organizational chart for operations
General land use map of Municipality of Marihatag
Slope map of Municipality of Marihatag
Average monthly rainfall days and precipitation in Marihatag
General land use suitability map of Municipality of Marihatag
Flood map,of Municipality of Marihatag
Rain induced landslide map of Municipality of Marihatag
Earthquake induced landslide map of Municipality of Marihatag

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LIST OF ANNEXES

ANNEX
G1a
G1b
G2
I1
I2
I3a
I3b
I4a
I4b
I5a
I5b
I6
I7
I8
I9
I10a
I10b

TITLE
Minutes of consultation with the Datus of Manobo
Minutes of public consultation with the residents
Environmental Issues and Mitigation Measures
Computation of Economic Cost of Subproject
Investment and Maintenance Costs
Annual Road Maintenance Unit Cost
Annual Maintenance Cost
Benefits Vehicle Operating Costs (VOC) Savings
Vehicle Operating Cost Savings for particular year
Benefits Savings in Output Hauling
Benefits Savings in Input Hauling
Benefits Savings in travel time for commuters
Benefits of newly cultivated agricultural land (abaca)
Benefits Reduction in Post-Harvest Losses
Economic Analysis
Sensitivity Analysis
Sensitivity Analysis (20-year period)

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Executive Summary
A.

Project Title

B.

Project Location

C.

Project Category
(rehabilitation or new construction)

Project Scale/Dimension

D.

Constructi
on/Rehabi
litation/C
oncreting
of Buli
Bayan
San Isidro
Mahaba
San
Roque Tagbilaon
g Farm to
Market
Road
Brgys.
Bayan,
San Isidro
and
Mahaba,
Marihatag
, Surigao
del Sur
Constructi
on/Rehabi
litation/C
oncreting
Farm to
Market
Road
Approx.
16.67
Kms

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

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Project Proponent

F.

Implementing Unit

G.

H.

Total No. of Barangays of the

Municipalities
Mode of Implementation

Municipal
ity of
Marihatag
thru the
Provincial
Local
Governm
ent Unit
Provincial
LGU of
Surigao
del Sur
12

Contract

I.

Road Influence Area (RIA)

2,359
hectares
(Major
Crops)
Barangay
Bayan
Mahaba
San Isidro
Total

Value Chain Commodity:

J

K.

Project Beneficiaries within the RIA

Total Project Cost and

Cost Sharing

No. of
has.
223
214
285
541
391
15
350
311
29
2,359

Crop
Abaca
Coconut
Rice
Abaca
Coconut
Rice
Abaca
Coconut
Rice

Abaca
:

Populatio
n : 4,969
Male2,542,
Female2,427
No of
Househol
ds: 956
Farming
HH:
4,532
P221,660,
000.00
WB Loan
Proceeds:

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L.

Economic Viability Indicators

M.

Conclusion and Recommendations

Php
______
GoP :
Php
______
PLGU
Equity:
Php
______

ENPV:
PhP
264,992
(see EFA
template)
EIRR:
22.08
(see EFA
template)
BCR:
3.21 (see
EFA
template)
Value
Chain
Commodi
ty: Abaca
The
project is
found
feasible
because it
is
technicall
y
and
economic
ally
viable
also on its
marketing
and
operation
al
view
point. It
has
an
EIRR of
22.08 and
its benefit
against

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cost ratio
is 3.21.

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A. Provincial Background
i.

Location and Demographics

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

Figure A1. Map of Surigao del Sur

The province was originally composed of 13 municipalities. As of 2010, the province is
now composed of 19 municipalities.
Table A1. Population, Area, and Density by municipalities in Surigao del Sur, 2010
Population (2010)

Area (ha.)

Bayabas

7,779

3,366

Density
(/Sq.km.)
(2010)
231

Cagwait

18,899

16,518

114

Cantilan

30,231

16,851

179

Carmen

10,287

15,919

65

Carrascal

16,529

28,592

58

Cortes

15,541

12,963

120

City/Municipality

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Table A1. Continued

Population (2010)

Area (ha.)

Lanuza

11,857

24,209

Density
(/Sq.km.)
(2010)
49

Lianga

28,905

24,027

120

Madrid

14,888

18,990

78

Marihatag

17,925

32,689

55

San Agustin

20,655

24,385

85

San Miguel

36,287

57,938

63

Tago

33,993

28,435

120

Tandag City (capital)

52,114

23,593

221

District I
Barobo

315,890

328,475

96

43, 663

22,576

193

Bislig

96, 578

42,264

229

Hinatuan

38, 731

31,523

123

Lingig

31, 544

47,934

66

Tagbina

34, 812

40,998

85

District II
Surigao del Sur

245,328

185,295

132

561,218

513,770

109

City/Municipality

Among the two (2) districts of Surigao del Sur, District 1 which comprises 13 municipalities
and 1 city has slightly higher population (315, 890) than District 2 (245, 328) which consists
of 4 municipalities and 1 city. Bislig City of District 2 has the highest population which
accounts for 96, 578 followed by Tandag City (District 1) with a population of 52, 114.
Meanwhile, the municipalities of Carmen and Bayabas are ranked as the least populous
place in the province with population of 15, 541 and 7, 779, respectively.
The largest municipalities/cities in the province in terms of land area are the following: San
Miguel which occupies 57, 938 ha, Carrascal with 28, 592 ha and Tago with 28, 435 ha for
District 1 and the municipalities of Lingig with 47, 934 ha, city of Bislig with 42, 264 ha,
and Tagbina with 40, 998 ha for District 2.
The provincial average for the population density is at 109. The municipality of Bayabas
which is the smallest in terms of area and population has the highest density of 231 followed
by the two cities, Tandag with density of 221 and Bislig at 229. More than half of the
municipalities/cities significantly exceeded the provincial average. The municipalities with
lowest densities are Lanuza, Marihatag, and Carrascal.

ii.

Economy
Table A2. Land Classification by Municipality in Surigao del Sur

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Area (has.)

City/Municipality

A&D

Forestland

Total

Barobo

11,280

22,576

Bayabas
Bislig City

1,872
18,985

1,494
23,279

3,366
42,264

Cagwait

4,037

12,481

16,518

Cantilan

7,014

9,837

16,851

Carmen

2,909

13,010

15,919

Carrascal

4,495

24,097

28,592

Cortes

4,663

8,300

12,963

Hinatuan

20,035

11,488

31,523

Lanuza

3,271

20,938

24,209

Lianga

3,357

20,670

24,027

Lingig

12,567

35,367

47,934

Madrid

6,575

12,415

18,990

Marihatag

6,373

26,316

32,689

San Agustin

4,191

20,194

24,385

San Miguel

16,767

41,171

57,938

Tagbina

23,170

17,828

40,998

Tago

11,081

17,354

28,435

Tandag

5,902

17,691

23,593

168,544

333,934

513,770

Surigao del Sur

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

Agriculture and Rural Development Sectors

Table A3. Land Use, Surigao del Sur
Land Use

Area (has.)

Agricultural Lands
Palay

20,645

Corn

3,214

Fruits

2,551

Non-food industrial crops

105,715

Vegetables

Table A3. Continued

Land Use

Area (has.)

Production Forest
With tenurial instrument (TLA, IFMA, CBFM, ISF etc.)

246,990

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Open access untenured

81,398

CADT
Protection Forest
Watershed Areas
Proclaimed Watershed (6)
Critical watershed
Key Biodiversity areas
Proposed landscape and seascape
Proposed critical habitat
Marine Protected Areas
Mining Areas (as of June 2009)
Approved MPSA)
Approved exploration permit
Approved operating contract

43,628
234,003
102,458
3,911
3,061

Approved special mines permit

Approved sand and gravel

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

E-VSA Maps and Statistics

One of the guidelines set forth under PRDP in formulating the competitiveness strategy for
certain commodity involves developing the commoditys value chain upgrading strategy.
Should an intervention be indicated like enterprise development or farm-to-market road, in
any segment of the VCA, the location best suited for the intervention shall be determined
through the expanded vulnerability and suitability Analysis or E-VSA tool (Source: PRDP
I-PLAN OM). E-VSA is a science-based tool used by PRDP in prioritizing areas of
investment in any given province or municipality for certain commodity(ies) with
competitive advantage. By competitive advantage means that the prioritized commodity, e.g.
abaca has considerable volume of production and large extent of hectarage that can generate
a commodity-based enterprise that has significance in local or global market. E-VSA plays
a significant role in identifying which areas to invest and what commodity will be supported
by PRDP funds under I-REAP or I-BUILD subprojects.
As per E-VSA result, amongst the 19 municipalities in Surigao del Sur, the municipality of
Marihatag is 4th in the ranking. This means that Marihatag is eligible for PRDP
intervention in support to abaca (see Table B1, Figure B1).

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

Table B1. E-VSA result for abaca, Province of Surigao del Sur
Municipality
Tago
San miguel
Bislig city
Marihatag
San agustin
Lingig
Tagbina
Lanuza
Cagwait
Lianga
Barobo
Hinatuan
Tandag
Bayabas
Madrid
Carmen
Cortes
Carrascal
Cantilan

Number
of
Farmers
(15%)
1876
1514
1339
1568
964
759
456
97
889
543
59
35
743
10
0
4
50
59
0

Volume of
Production
(Mt)
(15%)
20
60
0
0
350
0
0
4859
12
0
0
0
0
0
0
0
0
0
0

Area
Planted
(Ha)
(10%)
2858
2591
2924
2407
1396
1505
454
50
1625
1053
134
63
470
20
0
4
68
22
0

Poverty
Incidence
(10%)
38
51
34
50
50
49
48
35
39
37
46
44
26
39
33
35
36
33
26

VSA
Rank
(50%)

Composite
Index

8
7
3
12
10
9
1
17
16
6
2
4
15
5
11
13
18
19
14

0.57537
0.56872
0.55108
0.54828
0.47931
0.45744
0.45536
0.4509
0.42805
0.41098
0.3785
0.36794
0.35846
0.3398
0.30951
0.30889
0.29892
0.28933
0.28793

E-Vsa
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Surigao del Sur is the largest abaca producing province in the region and in Mindanao. In
2013, the province accounted for 65% of the regions abaca output (Abaca VCA, 2014).
The province has been supplying abaca as raw material for pulp production, specialty
papermaking, cordage production, and handicrafts to Cagayan de Oro City, Davao, and the
Bicol region (Phil FIDA, 2005). The top 5 leading producers of abaca in the province are
Tago, San Miguel, Bislig, Marihatag, and San Agustin. Table 2 shows the production of
abaca in Caraga region.
Table B2. Area, volume of production, and yield of abaca, Caraga, 2009-2013
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Indicators
CARAGA
Volume
Area Planted
Average Yield
Agusan del
Norte
Volume
Area Planted
Average Yield
Agusan del
Sur
Volume
Area Planted
Average Yield
Surigao del
Norte
Volume
Area Planted
Average Yield
Surigao del
Sur
Volume
Area Planted
Average Yield

2009

2010

2011

2012

2013

Annual % Growth
Rate

5,861.19

6,058.64

6,030.78

5,965.03

5,827.89

-0.11%

9,920.00

11,780.00

10,949.00

9,911.00

10,437.00

1.04%

0.59

0.51

0.55

0.60

0.56

-1.10%

542.56
3,250.00
0.17

548.08
3,250.00
0.17

508.36
2,500.00
0.20

529.17
1,625.00
0.33

521.24
1,620.00
0.32

-0.79%
-10.03%
18.55%

1,369.53
3,190.00
0.43

1,392.86
3,230.00
0.43

1,509.56
3,229.00
0.47

1,505.16
3,186.00
0.47

1,674.05
3,236.00
0.52

4.45%
0.29%
4.10%

25.42
360.00
0.07

22.60
300.00
0.08

17.61
220.00
0.08

10.70
100.00
0.11

8.10
81.00
0.10

-13.63%
-15.50%
8.32%

3,923.68
3,120.00
1.26

4,095.10
5,000.00
0.82

3,995.25
5,000.00
0.80

3,920.00
5,000.00
0.78

3,624.50
5,500.00
0.66

-1.52%
15.26%
-9.52%

Source: BAS/PSA, Abaca VCA, 2014

Caraga region (where Surigao del Sur is one of the significant sources of raw material) is
one of the regions in the country with a robust abaca industry. As of 2014, the region posted
an average production volume of 5,828 MT and has a total production area of 10,437
hectares (Abaca VCA, 2014). It is home of 3,439 abaca producers whose farm holdings
average from 1.0 to 3.5 hectares. The region has 44 licensed abaca traders and 4 fibercraft
makers. The industry generates a total of 27,448 jobs. Direct dependents include abaca
farmers, classifiers/sorters, manufacturers, traders, exporters and hundreds of fiber craft
processors (PhilFIDA data, 2005). This suggests the importance of abaca to the farmers in
Surigao del Sur in general and Marihatag in particular. This also indicates how important
the commodity is in terms of its contribution to the economy of the province/municipality.
The commodity has essentially provided steady income to farmers, which redound to
substantial revenue to the province. It is to be noted that abaca together with coconut and
rice is among the top three leading crops in Surigao del Sur (LGU Marihatag 2011).
One of the development agenda of the regional industry cluster is to make Caraga as the
production and processing hub in the country. With this goal, the industry cluster will
capitalize on its strategic location, as it is adjacent to Region 10, home to the worlds biggest
abaca pulping plant.
To realize this goal, the cluster will work on the expansion of production areas from 10,437
hectares at present, to 25,000 by 2020 and increase yield from 0.56 MT/hectare at present to
2.0 MT/hectare in the near future (PhilFIDA no date). This is where Surigao del Sur,
particularly Marihatag plays a significant role in the abaca industry. A key ingredient to
boost the abaca production in the province is to improve farm to market roads.
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ii.

Value Chain Summary

In 2012, the world production of abaca reached up to 77.9 thousand metric tons (MT) and
the Philippines accounted for 83% of the world production. The second largest abaca
producing country is Ecuador, where abaca is grown on large estates and production is
increasingly mechanized. In the Philippines, the abaca sector consists mainly of
smallholders. Philippine abaca has nine grades for each type of cleaning compared to the
five grades of Ecuador. As such, Philippine abaca presents a wider spectrum of quality
choices and answers the various needs of different manufacturers like the handicraft, cord
and papermaking industries (Source: VCA 201).
The Philippines during the pre-war era ranked first in worlds abaca fiber production, in fact
we are the only abaca producing nation in the world until the 1920s (Baroa and Severa,
n.d.). In the Philippines, This commodity has a strong economic relationship with resourceconstrained farmers situated in the forestlands and in marginal uplands. In fact, abaca is the
source of income of most of the marginal farmers in the uplands ever since. Abaca or the
Manila Hemp is considered as the champion of the fiber industry in the international
community. This is endemic and indigenous to the countrys warm, wet climate and it has
been flourishing on Philippine soil for centuries, long before the Spaniards came to the
Philippines. Caraga and Davao are among the leading abaca producing regions in the
country.

Source: Abaca VCA, 2014

Figure B2. Breakdown of abaca production in the Philippines by island group, 2013
Abaca is cultivated in 138,369 hectares in 2013. Collectively, Mindanao accounted for 34%
of the area planted to abaca (Figure 2). Total national production was reported at 64,952 MT
with the highest production in Bicol Region at 24,078 MT followed by Eastern Visayas with
16,597 MT. Three of the six regions in Mindanao namely: Davao Region, Caraga, and
ARMM are among the top 5 abaca producing regions in the Philippines. Mindanao regions
accounted for 34% of the total production (Source: VCA, 2014).
The national average yield in 2013 was 470 kilograms per hectare. The top 3 high yielding
regions are ARMM (620 kg/ha), Caraga (560 kg/ha), and Davao Region (550 kg/ha). Bicol
Region ranks 4th in terms of average yield. The average yield for the whole Mindanao is
higher by 4% than the national average at 490 kilograms per hectare (Source: VCA, 2014).
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18

Table 3 presents the abaca production in the Philippines whereby Caraga ranks 4 th overall in
terms of volume of production and area planted.
Table B3. Abaca production in the Philippines ranked according to volume, 2011
Region

Volume (MT)

Area (Ha)

Yield (MT/ha)

% to RP Vol

64,952
24,078
16,597
7,269
5,828
4,974
2,244
1,741
954
590
415
121
113
15
13

138,369
44,509
36,237
13,187
10,437
8,067
5,381
6,530
5,924
1,965
3,325
1,434
543
331
499

0.47
0.54
0.46
0.55
0.56
0.62
0.42
0.27
0.16
0.30
0.12
0.08
0.21
0.05
0.03

100%
37.07%
25.55%
11.19%
8.97%
7.66%
3.45%
2.68%
1.47%
0.91%
0.64%
0.19%
0.17%
0.02%
0.02%

PHILIPPINES
Bicol Region
Eastern Visayas
Davao Region
Caraga
ARMM
Northern Mindanao
Western Visayas
Soccsksargen
Zamboanga Peninsula
Central Visayas
Mimaropa
Central Luzon
Calabarzon
CAR
Source: Abaca VCA, 2014

The number one abaca-producing province in the Philippines is Catanduanes with the
highest yield at 820 kilograms per hectare. Abaca farms in Catanduanes are among the first
who have achieved a Rainforest Alliance Certification on Sustainable Farming. With its high
volume, lead firms tend to focus more on Catanduanes especially in connection with the
achievement of the Rainforest Alliance certification. Northern Samar and Leyte ranked
second and third, respectively. Six (6) provinces from Mindanao comprised the rest of the
top 10 abaca producing provinces in the country (see Table B4).
The Value Chain Analysis (VCA) for abaca conducted by PRDP in 2014 revealed that in
Caraga region, Surigao del Sur ranked 4th among the top producing provinces in the
country, only next to Leyte. Table 4 shows the area and volume of abaca production in
Surigao del Sur.
The value chain analysis (VCA) conducted by PRDP also revealed that the province of
Surigao del Sur plays an important role in boosting the abaca industry because it is one of
the top producing abaca provinces in the country. Also, abaca has a niche in the overall
agricultural development in the province.

Table B4. Top 10 abaca producing provinces in the Philippines, 2013

Province

Volume (MT)

Area (Ha)

Catanduanes
Northern Samar
Leyte
Surigao del Sur

20,092
7,434
4,833
3,625

24,622
12,033
11,970
5,500

Average Yield
(MT/ha)
0.82
0.62
0.40
0.66

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Davao Oriental

3,484

6,422

0.54

Sulu
Davao del Sur
Southern Leyte
Lanao del Sur

3,196
3,067
2,498
1,696

5,250
6,245
5,621
2,475

0.61
0.49
0.44
0.69

Agusan del Sur

1,674

3,236

0.52

Other Provinces
Legend:
Source: BAS/PSA,
abaca VCA 2014

12,971

iii.

52,034
Mindanao Provinces

0.25

Abaca Production System

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

iv.

Processing

In terms of processing, there are two levels that abaca farmers process raw abaca into fibers
ready for the market. The small producers, owing to the smallness of scale, can only
process abaca using manual stripping techniques. Consequently, the fiber processed is
coarse by nature and are referred to in the market as Laguras.
However, this type of fiber is considered low grade and are therefore valued lower in the
market place.
The larger farmers who can afford motorized abaca stripping machines are able to produce
the finer grade referred to as S1 (S derived from the phrase spindle-strip derived referring
to the grading system for abaca fiber), which is valued with a premium price in the market.
v.

Trading and Marketing

In the Municipality of Marihatag, there is only one large buyer of abaca fiber. Farmers
sell their abaca fiber in bales transported generally by habal habal at a cost of about PhP3
per kilogram during summer but could be as high as PhP5 per kilogram during the rainy
season.
The Integrator buys the fiber from the farmers and upon generating sufficient volume,
transport the produce to Davao or Cagayan de oro City (Figure B3). There are small buyers
in some of the major producing areas in the municipality like in Barangay Mahaba who also
procures fiber from small farmers and pass it on to Integrators in the neighboring
municipalities like San Agustin. However, the quality of the fiber is sensitive to proper
storage. If marketing is delayed, the price of fiber goes down by about 30% due to reduction
Construction/Rehabilitation/Concreting of Buli-Bayan-San Isidro-Mahaba-San Roque-Tagbilaong Farm to Market Road

20

in quality.

Figure B3 outlines the flow of abaca fibers from Marihatag and abaca fibers from the other
parts of Mindanao.
Figure B3. Flow of abaca fiber from Marihatag and from other parts of Mindanao
C. The Sub-Project: The Road Influence Area
i.

Sub-Project Objectives
The general objective of the project is to improve the welfare of the farmers in the road
influence area (RIA). Specifically, the sub-project aims to:
i.a.
i.b.
i.c.
i.d.
i.e.

ii.

reduce post harvest losses in transporting the products;

reduce transportation cost;
increase economic activities in the RIA;
minimize physical injuries to commuters using the hazardous habal-habal; and
provide better access to markets and other amenities in the central business districts.
Geographic Boundaries

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

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Figure C1. Geographic boundaries of Marihatag

Marihatag is still a third class municipality with a 2015 equivalent income of about PhP40
Million. The municipality is composed of 12 Barangays as home to about 17,926 persons
spread across an area of about an estimated land area of about 312.5sqaure kilometers. The
estimated total land area of the municipality is roughly 34,250 hectares. More than 90
percent of the land are is spread between agriculture (41.7%) and forestry which accounts
for roughly 49.33 percent. Built-up areas only accounts for 5.21 percent of the total land
area of the municipality. The remaining areas are swamps and mangroves.
The proposed farm to market road will affect 3 of the 12 Barangays of the municipality of
Marihatag. The 16.67 - kilometer road concreting project will traverse Barangays Bayan,
San Isidro and Mahaba.
iii.

Relative Distance to Growth and Commercial Centers

Figure C2. Road Network Map of the Municipality of Marihatag

The distances of the Barangays influenced by the proposed farm to market roads to the
Poblacion ranges from 3.65 kilometers for Bayan and 18.68 for Mahaba. San Isidro is about
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22

11.63 kilometers from the poblacion. While a few four wheel vehicles pass through the
Bayan San Isidro Mahaba segment, most of the commuters passing through the road
use habal habal for their transport needs.
Table C1. Relative distance to poblacion and mode of transport by barangay
Barangay
Bayan
San Isidro
Mahaba

iv.

Distance to Poblacion
3.65 kms
11.33 kms
18.68 kms

Mode of Transport
Habal Habal
Habal-Habal
Habal-Habal

Demographics

The proposed road segment will affect about 4,969 persons distributed across the three
Barangays. San Isidro has the most number of people in the RIA at roughly 2,029 followed
by Bayan with an estimated population of about 1,974. Mahaba has the lowest population at
966 persons. By gender, there are more male than female members of the population
affected by the proposed road construction. In total, there are about 2,542 male members of
the population compared to about 2,427 for the female members. Across Barangay, the
distribution fallows the same pattern as the general population, that is, the most number are
from San Isidro followed by Bayan and the lowest number is from Mahaba.
Table C2. Demographic composition by barangay
Sex
Barangay
Male
Female
Bayan
1,004
970
Mahaba
499
467
San Isidro
1,039
990
Total
2,542
2,427

1,974
966
2,029
4,969

Source: Marihatag CBMS, 2009

v. Economy and Land Use

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

Table C3. Average Total and Per Capita Income

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Barangay
Bayan

Average Total Income

Ave Per Capita Income

65,306.00

15,751.00

Mahaba

68,920.00

14,568 .00

San Isidro

54,259.00

11,567.00

Total

61,492.00

13,851.00

vi.

Off-Farm and Non-Farm Employment

The Barangays affected by the propose road segment are still predominantly agricultural.
Out of the 1,126 employed persons, about 946 were engaged in the agricultural sector.
Table C4. Off-farm and Non-farm employment
Employment by sector
Barangay
Sector code

Bayan

Mahaba

San
Isidro

Total

Agriculture mining and Forestry

Fishing
Manufacturing
Electricity, Gas and Water Supply
Construction
Wholesale and Retail Trade, Vehicle Repair
Hotel and Restaurants
Transportation, Storage & Communication
Public Administration and Defense
Education
Health and Social Work
Other community, Social or Personal Action
Private Households with Employed Persons

353
3
10
1
9
20

210

383
3
4

946
6
14
1
16
51
1
31
33
8
4
6
9

1
11

12
9
5
3
6

3
9
1

6
20
1
16
15
2
1

Total

431

238

457

1,126

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

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

vii. Poverty Incidence
Marihatag is a very poor municipality as indicated by the poverty incidence based on the
proxy means test. In all barangays in the municipality, the poverty incidence is more than
fifty percent. It is even more pronounced in the barangays in the RIA. In Bayan, the
incidence of poverty is about 83.32 percent for 236 total number of households, 72.76
percent for 124 households in Mahaba o and in San Isidro, the poverty incidence is 77.11
affecting 214 households.
Table C5. Poverty Incidence
Barangay
Bayan
Mahaba
San Isidro

Poverty Incidence
83.32
72.76
77.11

Sum of Poor HH
236
124
214

D. Market Analyses
i.

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

Table D1. Existing road network with the RIA

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Barangay
Bayan

TYPE
Gravel
3.20

Concrete
3.20

Mahaba
San Isidro

10.90
2.90

10.90
2.90

Total

17.00

17.00

The existing road segment connecting Bayan, Mahaba and San Isidro is an all-weather
gravel road. The route to San Isidro could be shorter via Mararag and San Pedro but the
unpassable bridge in that road segment prohibits commuters to San Isidro from using that
path. In the Bayan-Mahaba-San Isidro segment, there are two existing bridges: Tulay ng
Pangulo with an estimated span of about 24 linear meters and RCDG bridge with an
estimated span of roughly 18 linear meters.
Table D2. Length and status of difference water forms
Creek/River
Tulay ng Pangulo
RCDG

ii.

Length (Linear Meter)

Status

24 lm
18 lm

Existing
Existing

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

Table D3. Traffic count Bayan-Mahaba-San Isidro

Bayan-San IsidroMahaba
TYPE
Number
Passenger
MOTORCYCLE
Service
265
Habal-habal
128
SERVICE VEHICLE
Jeep
5
Car
42
TRUCKS
6 wheels
34
More than 6 wheels
15
TOTAL
489

Cargo
406
372

41
167

35
195

0
6

108
42
1,158

201
107
522

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

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a. Generated Traffic Volume

Generated traffic volume includes the current road use in addition to the average
growth of the number of vehicle. The growth in number of vehicle is assumed to be
2.4% every 5 years. This growth in vehicle use is attributed to population growth and
an increased travel demand of the populace due to decreased travel time. Aside from
the generated traffic volume, the total traffic volume will also be increased by the
addition of Diverted/Attracted Traffic.
b. Diverted/Attracted Traffic
The current mode of transporting abaca fiber to the consolidator is by the use of
habal-habal with wings. With only a capacity of 300 kg, the current trips generated
from these is quite high. With the realization of the project, this number is not
expected to reduce. Although there will be added trip generated by jeeps and trucks,
the switching modes is less likely in the next 2 years because the trucks and jeeps
only serve the consolidators.
There is still available potential are for crop farming in the area. The road network
will help to attract investors to do farming in the area. Moreover, the increased
farming activity in the area will generate a rise in vehicle demand due to increased
volume of farm produce. Consolidators in the community are also expected to
transfer their collection station nearer the farms.

E. Technical Analysis
i.

Horizontal Road Alignment Analysis

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

Figure E1. Bayan - San Isidro - Mahaba route in blue and Buli-Tagbilaong (San Isidro) in
red.
The proposed segment will include two (2) existing bridges and four (4) bridges to be
constructed. The bridges to be constructed will traverse Marihatag River and several of its
tributaries. The bridges are to be construction at Sta 13 + 866 over Marihatag River, Sta 14
+ 207, Sta 17 + 403, and Sta 18 + 185. This will also include construction of four (4) box
culverts of varying sizes to accommodate water crossing from small creeks.
The road will be five (5) meters wide with provision of drainage on any of the side as
necessary in the area as discussed in the preceding section.
ii.

Vertical Road Alignment Analysis

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

iii.

Drainage/Hydraulic Analysis
The twelve-year rainfall data from Hinatuan, Surigao del Sur was used as the primary data

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

Table E1. Twelve-year rainfall data from Hinatuan, Surigao del Sur

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

Description

Length (m)

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29

Remarks

--

RCPC 1 x 0.90m diameter

100

2 + 852

Open Canal Trapezoidal, 0.3m base &

0.6m top by 0.6m high on one side

4,394

Outfall for Buli drain

going to river

Table E2. Continued

Station
7 + 246

Description
Open Canal Trapezoidal, 0.3m base
0.6m top by 0.6m high on both sides
8 + 906
Open Canal Trapezoidal, 0.3m base
0.6m top by 0.6m high on one side
11 + 466 Open Canal Trapezoidal, 0.3m base
0.6m top by 0.6m high on both sides
11 + 917 Open Canal Trapezoidal, 0.3m base
0.6m top by 0.6m high on one side
13 + 866 Bridge
13 + 911 Open Canal Trapezoidal, 0.3m base
0.6m top by 0.6m high on both sides
14 + 207 Open Canal Trapezoidal, 0.3m base
0.6m top by 0.6m high on one side
Drainage Structure
crossing the road
15 + 169 1 x 0.9m diameter RC pipe
16 + 304 0.5m x 0.8m box culvert
16 + 500 1 x 0.9m diameter RC pipe
16 + 751 0.5m x 0.8m box culvert
16 + 899 0.5m x 0.8m box culvert
17 + 007 0.6m x 1.0m box culvert
17 + 157 1 x 0.9m diameter RC pipe
17 + 374 1 x 0.9m diameter RC pipe

iv.

&

Length (m)
660

&

3,560

&

451

&

1,949

&

-296

&

5,315

Remarks
San Isidro community

Mahaba community

Marihatag River
San Roque community

7
7
7
7
7
7
7
7

Soil and Foundation Analysis

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

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

The main quarry source for the segment is Marihatag River, Mahaba, Marihatag, SDS.
Source of construction materials such as cement and steel bars is from Tandag City, SDS.
Table E3 summarizes the sources of material for the proposed road segment.

Table E3. Source materials for the proposed road segment of Bayan-Mahaba-San Isidro
FMR
Type of Material
Selected backfill
material

Source and Location

Mahaba, Marihatag, SDS

Distance to Project Site

(km)
2

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30

Cost
--

Fine aggregates
Coarse aggregates
Boulders

vi.

Marihatag
River,
San 8
Isidro, Marihatag, SDS
Marihatag
River,
San 8
Isidro, Marihatag, SDS
Marihatag
River,
San 6
Isidro, Marihatag, SDS

850
950
850

Items of Work and Cost

The following table outlines the itemized cost for the construction of the road segment along
Bayan, Mahaba, and San Isidro, Marihatag, Surigao del Sur.
Table E4a. Cost estimate for the Buli-Tagbilaong FMR road component

Scope of Work (Direct

Cost)
Mobilization and
Demobilization

% wt

Quantity

Clearing and Grubbing

Surplus Common
Excavation

0.27%

Structure Excavation

0.06%

Embankment

1.38%

Sub-grade Preparation

2.22%

Aggregate Base Course

Portland Cement
Concrete Pavement
(200mm thick)
Reinforcing steel bars
(Grade 36) for Box
Culvert

10.91%

1.
00
33,340.0
0
13,160.0
0
112.0
0
4,450.0
0
100,020.0
0
10,002.0
0

70.40%
0.07%

Structural Concrete Class

AA (fc' = 28MPa)

1.85%

2.63%

Unit of
Measure
lot

Unit Cost
2,090,088.40

Amount
2,090,088.40

sq.m.

9.00

300,060.00

cu.m.

225.00

2,961,000.00

cu.m.

622.50

69,720.00

cu.m.

350.00

1,557,500.00

sq.m.

25.00

2,500,500.00

cu.m.

1,230.00

12,302,460.00

21,004.2
0

cu.m.

3,778.00

79,353,867.60

1,282.0
0

kg

65.00

83,330.00

cu.m.

4,500.00

60,480.00

cu.m.

3,500.00

12,775.00

l.m.

3,788.00

484,864.00

l.m.

270.00

13.4
0.05%

4
3.

Lean Concrete
RCPC 0.90m dia. Class
II

0.01%
0.43%

65
128.0
0

Cleaning Pipe Culvert in

place

0.04%

Grouted Riprap

0.89%

Metal Guardrail

3.77%

156.0
0
270.0
0
4,325.0
0

Thermoplastic pavement
markings

1.55%

Center-line reflector
separator

3.46%

cu.m.

42,120.00

3,705.00

1,000,350.00

l.m.

983.00

4,251,475.00

16,670.0
0

l.m.

105.00

1,750,350.00

16,670.0
0

pc

234.00

3,900,780.00

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31

TOTAL

100.00%

112,721,720.00

Table E4b. Cost estimate for the Buli-Tagbilaong FMR bridge component
115.
00

Bridge for construction

l.m.

450,000.00

51,750,000.00

Table E4c. Summary of cost estimate for the Buli-Tagbilaong FMR

Length
w/o
bridge
w/
bridge

Direct Cost

Indirect Cost

Total Cost

Cost per km

16.67 km

112,721,720.00

39,194,344.69

151,916,064.69

9,113,141.25

16.67 km

164,471,720.00

57,188,280.00

221,660,000.00

13,296,940.61

Based on the summary table, presented in Table E4c, the Bayan Mahaba San Isidro FMR
Segment has a total length of 16.67 km amounting to Php 221,660,000.00 including the
construction of the four new bridges.
F. Operational Analysis
The proposed sub-project to construct the 13.3 kilometer concrete road through Bayan,
Mahaba and San Isidro will be implemented by the Provincial Government. Specifically, the
project will be implemented through the Provincial Project Management Implementing Unit
(PPMIU) within the framework of the Intensified Building Up and Logistics for Development
(I-BUILD) and under the direct control of the Provincial Engineering Office.
Through a series of consultations with the local government executives (LCEs), the municipal
development officer (MPDO), the Municipal Agriculture Officer (MAO) as well as some
member of the Non-Governmental Organizations (NGOs), Peoples Organizations (POs) and
farmer-representatives, the project site was identified. The process was done within the
broader framework of the Provincial Commodity Investment Plan (PCIP).
Further, the prioritization of the specific commodity was done through the Expanded
Vulnerability and Suitability Analysis (E-VSA). This criterion was supplemented by other
parameters including the role of the commodity in the value chain, proportion of area planted,
volume of production, an poverty incidence. This identification process was validated by
Provincial Support Office of the Philippine Rural Development Project (PSO-PRDP) and the
Regional Project Coordinating Office of PRDP and in consultation with the PPMIU.
Based on the results of the prioritization process, the survey was conducted by the PPMIU
through the Provincial Engineering Office including the hydrologic and geologic test, detailed
engineering design and program of works. At the same time, the Regional Office of the
Department of Agriculture with the support of the Provincial and the Municipal Agricultural
Office conducted geo-tagging. A team of experts was engaged to conduct the feasibility of the
sub-project with the following components: technical, social, environmental, and economic.
The Municipal Engineering Office and the Provincial Engineering Office will do project
maintenance jointly. While immediate and minor maintenance work can be done independently
by the municipal engineering office, major repairs will have to be done with the support of the
provincial engineering office.
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Figure F. Organizational chart for operations

G. Social Analysis
i.

Project Beneficiaries
The target beneficiaries of the proposed farm-to-market road are the residents engaged in
abaca, coconut, and rice production of Barangays Bayan, San Isidro and Mahaba. The total
population number of beneficiaries is 4,969 (Male- 2,542 and Female- 2,427).
The public consultation was coursed through the chairpersons of the concerned barangays.
This was held last 8 January 2015 at attended by 38 people (Male- 25 and Female 13)
(please refer to Annex G1). The consultation serves as a venue for the residents to be heard
of their concerns and to inform the local government unit of their stance about the project.
Overall, the residents have expressed their support and commitment to the project. The
major concerns shared by the residents during the consultation are as follows:
a.
A resident reported that in Barangay Mahaba there will be few houses that
will obstruct the proposed arm-to-market road.
The facilitator explained that before the construction the local government unit
would discuss with the concerned farmers on how the affected households will be
compensated. Mayor Alan Pelenio, who was again present during the consultation,
seconded the facilitators response.
b.
There will also be coconut trees and other crops that will be affected once the
construction will start. The question is will the farmers will receive compensation?
As with the earlier public consultation, the response was that there will be a
discussion between the affected households and the municipal government for
compensation.
c.
If the project will be approved, will it continue even if the current Mayor will
no longer be the Mayor in 2016?
The facilitator explained that once the project is approved, it will continue to be
implemented regardless of who the Mayor will be. Mayor Alan Pelenio added that
the project will be implemented by the Provincial Government that will provide the
equity of PhP80 million.

ii.

Indigenous Cultural Community/Indigenous Peoples (ICC/IP)

The datus together with the other Manobos joined the consultation in the barangay. Similar
with the other residents of barangay, they have expressed their support and commitment for
the realization of the project.
A datu from Sitio San Roque who joined the Engineering Team of the Municipality, which
performed the survey for two weeks informed the group that his house and the shed will be
affected by the farm-to-market road. He is, however, willing to move his house and shed.

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iii.

Site and Right-of-Way Acquisition

The proposed site is concreting of existing barangay road with a total length of 17
kilometers. A public consultation was held and attended by 38 residents of the barangay.
The SES team representative discussed the proposed project and emphasized the residents
support is needed especially the execution of deed of donations/waiver of rights by the
affected area. The response of the residents was very positive, since portion of the road
exists, though not in good condition, they are very willing to move their house or have their
trees cut.
Two weeks before the consultation, a Survey Team conducted the actual measurements of
areas affected by the project. The survey team is still finalizing the list of households, other
infrastructure, and crops and trees that might be affected because of the road construction.

iv.

Damage to Standing Crops, Houses and/or Properties

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

Physical Displacement of Persons

Majority of the persons living within the proposed sub-project influence area are farmers.
Nearly all of them have their permanent dwelling in the area. Few houses in Barangay
Mahaba and one in Sitio San Roque will be affected but as discussed earlier discussions
with the owners will be held before the construction start.
vi.

Economic Displacement of Persons

Initial results of the survey and as discussed during the public consultation, the construction
of the farm-to-market road will not displace the economic activities of the residents. Those
who attended the consultation believe that there will be more economic activities since the
transportation of inputs as well the agricultural production would be faster and the perceived
cheaper transportation cost will encourage more farmers to directly market their produce in
the barangay for higher price.

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Table G1. Environmental and Social Issues and Mitigation Measures/Environmental and Social
Management Plan
Issue (Potential
Impact)
Soil erosion and
sedimentation
management
1. Temporary
increase in
sedimentation
during
construction

2. Landslide/ erosion
of exposed road
sides resulting in
sedimentation of
waterways

Assessment

Mitigation Measure

[ ] Topography of the road

alignment necessitate
massive earthmoving and
cutting of clayey or loose
topsoil
[ ] Cut materials will
consist mainly of hard
rocks and are unlikely to
generate significant
sediments
[ ] The road will traverse a
mountainous area
necessitating deep cuts on
mountainsides, particularly
between station___ and
___, etc. (Please see DED
for deep cuts and stations.)
[ ] The exposed slopes will
likely consist of highly
erodible loose materials.
[ ] The cut slopes will be
hard materials that would
resist erosion.
[ ] The road passes through
a relatively benign terrain,
cuts will be minimal.
[ ] The rehabilitation work
does not involve additional
road cuts.

[ ] Earthmoving/
cutting of slopes to be
done during dry months

Instrument of
Schedule/Duration Implementation
of Mitigation (POW, Contract,
Measure
IDP, or O&M
Plan)

DED/POW;
Contract

Responsi
-ble Unit

Contractor/
Assigned
Project
Engr

[ ] Proper disposal and

compaction of spoils
[ ] No measures
required
[ ] Include slope
protection works at the
following stations:
___________________
_
___________________
_
___________________
_
(specify the type/s of
slope protection to be
applied at each section

Consult with the

Municipal Engineer:
[ ] Bioengineering with
geomat and cover crop
[ ] Fast growing shrub
species
[ ] Riprap
[ ] Gabions
[ ] Terracing
[ ] Concrete protection
wall
[ ] Others

DED/POW
Contractor/
Or (if budget
Assigned
does not permit)
Project
LGU
Engr
Commitment
Letter

Water quality
management
3. Inadequate
[ ] The road will block
drainage resulting in runoff, resulting in
flooding or ponding flooding on one side of the
road during rainy days.
[ ] Drainage issues
unlikely
4. Potential
[ ] Waste oil and grease
contamination of
from equipment could
surface and
contaminate surface water
groundwater with [ ] There will be no
oil/grease
significant amount of
waste oil/grease
5. Potential
[ ] Construction workers
contamination
would be temporarily
with human waste housed in a base camp
[ ] Workers would be
locals and are expected to
go home to their respective

[ ] Installation of cross
drain between station
_________ and
_________

DED/POW
Contract

Contractor/
Assigned
Project Engr

[ ] Proper handling
and disposal of waste
oil and grease

Contract

Contractor/
Assigned
Project Engr

[ ] Set up adequate
latrine/toilet facility at
the base camp

Contract

Contractor/
Assigned
Project Engr.

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houses after work

6. Potential increased
use of pesticides due
to intensification of
cash crop
production in the
area

Farmers are not applying

fertilizer nor chemicals in
their crops.
Farmers use the abaca
wastes from the stripping
machine to fertilize their
crops.

No mitigation
measure needed

[ ] The access road and/or

segments to be
rehabilitated is vital to
daily activities of the
residents and farmers and
need to be kept open to
traffic during construction

[ ] Keep the road open

to traffic flow and
minimize disruptions
along the access road
and/or construction
area; Provide adequate
warning signs and
traffic personnel when
necessary;
[ ] Undertake regular
maintenance measures
on the passable
portions of the roads
[ ] No measures
needed

Air quality
management
7. Potential
disruption of
traffic flow

[ ] The construction will

not affect daily movement
of residents and farmers

8.. Potential
dust/mud nuisance
during construction

[ ] Roads could become

powdery during dry days
and muddy during rainy
days of the construction
period
[ ] Access road and/or the
construction/ rehabilitation
works passes through a
populated area
[ ] Access road and/or
construction/ rehabilitation
does not pass through any
populated area

Noise and
vibration
9. Noise from
construction
vehicles, asphalt
plants, and blasting
operation and
equipment

[ ] Noise associated with

construction of FMR could
increase.

[ ] Undertake
sprinkling of road
(including access
roads) during dry
days, and filling up of
potholes during rainy
days, especially in
residential areas
[ ] Set up speed limits
for vehicles,
especially within
residential areas

Contract

[ ] No action required

[ ] Proper
maintenance of
construction vehicles
and equipmentle
[ ] Posting of warning
signs in High Noise
Area
[ ] Fit tertiary crushers
with rock lining to act
as natural sound
insulator
[ ] maintain natural
vegetation, where
possible, ,to act as
natural buffer
[ ] Select locations for
quarrying and mixing
operations areas that
are not near the
vicinity of housing
areas

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Contractor/
Assigned
Project Engr

Ecology
management (flora
& fauna)
10. Potential
acceleration of
denudation of the
upland/hilly areas
due to
intensification of
crop production

[ ] The proposed road will

connect to the market
upland/hilly areas where
farmers are currently
practicing erosive farming
techniques. The road could
help accelerate the
denudation of the
upland/hillsides rendering
them unproductive in a
few years.
[ ] the road connects only
lowland farms to the
market
[ ] The proposed road will
improve human access to
the nearby public forest,
resulting in increased slash
and burn cultivation,
illegal logging and
poaching.
[ ] The proposed road does
not improve access to
public forest

[ ] DA to coordinate
with LGU for the
introduction of
sustainable upland
farming systems in the
area
[ ] No measure
required

Capacity Building OCA

Plan;
O & M Plan

[ ] Coordinate with
DENR for the
enactment of
ordinance deputizing
the local community
to enforce forestry
laws
[ ] No measure
required

Capacity Building City

Plan;
ENRO

The proposed site that

will be concreted is an
existing road
There will be no IPs
affected or displaced

No measures
needed

Entitlement Form Minutes of the

1 and 2, CNO
Consultation
from NCIP

MLGU

13. IP/ICC

Existence of IP
Household/land owners

Concerns are
addressed in the
Feasibility Study

Attendance

MLGU

14. Issue on conflict

resolution in the
project
implementation

Conflict resolution on
project implementation
shall be lodged through
PRDPs Grievance
Redress Mechanism

- Consulted separately
before the preparation
of the Feasibility
Study
Province of Agusan
del Sur has yet to
put in place the
Grievance Redress
Mechanism

GRM must be
instituted before
the project
implementation

EO/Resolution
creating the GRM
structure and
Mechanism

MLGU,
PLGU,
RPCO,
MPSO,
NPCO

15. Issue on land for

the project site and
its corresponding
Deed of Donation

Potential damage
to/displacement of
properties/structures
along the road
Site traverse by the road
are privately owned

- Negotiate with
landowner for the
coconut trees and
other crops that will
be cut/damaged
- Will secure land
use permit from
DENR

The Deed of Sale, Deed of Sale, quit MLGU

quit claim and
claim and land use
land use permit
permit
will be secured

16. Demolition and

Reconstruction of
affected Structures

Removal of temporary
structure like fences in
RROW

Before and
During the
implementation

Minutes/
Attendance

17. Cutting of Trees

Minimal damage of fruits

and trees in RROW

Properly inform the

residence before the
demolition
Demolish /move the
fence for RROW
Prior to removal,
properly informed
the owner
- Fruit bearing trees
should be cut after
harvesting the fruits

Before and
During the
implementation

Minutes/Documen MLGU/
tation/ Attendance BLGU

11. Potential increase

in encroachments
of human activities
into the nearby
public forest

Culture and
resources
12. Resources

O & M Plan

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MLGU/
BLGU

Employment and
Employment
Condition
18. Local
employment

Construction will
provide local
employment
opportunities

19. Hazard to health

and safety of
workers and
nearby residents

Hazard and accident prone

activity during
construction

Hiring priority shall

be given to qualified
local residents;
Implement I-BUILD
Manual on local hiring
- Standard, safety
and proper
procedures
employed during
construction
Installation of
warning signs and
safety devices
Always Wear safety
tool/gear during
operation
Practice good
housekeeping
Provision of
medical/health
insurance

During
construction and
operation

POW, Contract
and Payroll

Contractor
, PLGU

Contractor and
PG should always
follow the Safety
operation
procedure during
construction and
operation

Manual of
Contractor
Operations, ESMP
to include SSS,
Philhealth
contributions

H. Environmental Analyses

i.

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

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Figure H1. General land use map of Municipality of Marihatag

ii.

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

iii.

Terrain, Soil Types and Rainfall

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

Figure H2. Slope map of Municipality of Marihatag

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The proposed project site and its influence area has a clayey soil type, in particular, the
Matho clay and Bantog clay, which are prone to rain-induced erosion/landslide posing risks
to accidents to commuters as well as potential damages to crops, particularly during heavy
rainy days.
Surigao del Sur has a Type 2 or 4 climate with no pronounced wet season. Marihatag has at
least 5 to 12 rainy days per month from November to May and at least 4 days the rest of the
year. Fig H3 shows the average monthly rainfall days and precipitation in Marihatag based
on 2000-2012 data (Source: http://www.worldweatheronline.com/Marihatag-weatheraverages/Surigao-Del-Sur/PH.aspx).

Figure H3. Average monthly rainfall days and precipitation in Marihatag

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

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

iv.

Hazard/Risk Assessment

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

Flooding Potential

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

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Figure H5. Flood map of Municipality of Marihatag

b.

Landslide Potential

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

Figure H6. Rain induced landslide map of Municipality of Marihatag

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Figure H7. Earthquake induced landslide map of Municipality of Marihatag

c.

Mitigation Measures

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

Status of Environmental Clearance IEE

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

Environmental Issues and Mitigation Measures

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

I.

Financial Analyses

i.

Project Investments
The total investment requirement for the 16.67 kilometer proposed farm to market road
along Bayan Mahaba - San Isidro route in Marihatag, Surigao del Sur is about PhP
221,660,000.00. The bulk of the project expense is accounted for by the cost of materials at
PhP 114.9 Million. Direct cost is about PhP 35 Million and Overhead plus contractors
profit is roughly PhP 41.4 Million. Taxes and other engineering design expenditures
account for PhP 22 Million.
Table I1. Computation of Economic Cost of Subproject

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43

Financial Cost
(current prices)
121,913,000
.00
33,249,000
.00

Materials /a
Equipment /b
Labor:

Unskilled
Subtotal Labor
Total Base/Direct Cost

5,541,500
.00
6,649,800
.00
12,191,300.00
167,353,300.00

Overhead, Contingencies and Miscellaneous

(OCM) /d
Contractor's Profit /e
Total (Base/Direct Cost+OCM+CP)

15,516,200.00
11,083,000.00
193,952,500.00

Skilled

Taxes /f
FS and DED Preparation+ Engineering
Supervision /g
Total Cost

Conversion
factor/Tax
12%

/h

33,249,000.00
5,541,500.00
0.6

/
c

12%

/h

17,732,800.00
9,974,700.00

110,209,352.00

3,989,880.00
9,531,380.00
19,062,760.00
13,853,750.00
11,083,000.00
43,999,510.00
0.00

12%

/h

221,660,000.00

8,905,982.14
259,426,114.14

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

Economic Benefits
a.

Vehicle Operating Cost (VOC) Savings

The argument behind savings in vehicle operating cost (VOC) is fairly

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

b.

Savings in Output and Input Hauling

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44

Depending on the weather condition the cost of transporting farm products to the
market ranges from 2 to 6 pesos per kilogram. The huge benefit after the concreting
of the road segment will be the reduction in the cost of transporting farm output.
Based on the major crops produced in the RIA such as abaca, coconut, and rice, the
estimated annual savings in hauling output is about PhP 6.1 Million (Annex Table
I5). The largest amount of savings is from rice which was estimated at PhP 3.8
Million, for copra, the saving is PhP 1.01 Million. For abaca, the savings was
estimated at PhP1.3 Million.
Benefits are also derived from hauling inputs such as fertilizers and other inputs for
the major crops grown in the RIA. For the three major crops, the annual savings
from hauling farm inputs was PhP 129,722. Similarly, the highest saving was drawn
form rice inputs, which was estimated at PhP 94,200. Yearly savings from hauling
inputs for abaca production was PhP 29,659 and for hauling coconut inputs, the
annual savings was PhP5,862.
c.

Benefits from Time Saved

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

Expansion of Productive Lands

One of the main constraints to increasing agricultural production in the countryside

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

Benefits in Reduced Post Harvest Losses

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

Economic Feasibility

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

45

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

Sensitivity Analysis

The returns to any investment will have to be evaluated on how sensitive the project is
towards exogenous fluctuations on key critical parameters. The returns will not be very
sensitive to changes in cost because the expenditure is done in the beginning and that cost
variabilities can be avoided with proper design. The viability of the project will also depend
upon the timely realization of the project gains and this is also ensured with proper planning.
Hence,, conventional sensitivity analyses is done on the critical exogenous variables, which
are beyond the control of project planning and management. This would involve economic
variables such as factor and product prices.
Based upon the nature of the RIA and the focal enterprise, which is abaca production, the
economic viability of the project would be sensitive to the difference between the pre
project price of transporting produce from the RIA to the marker and the projected transport
cost post project completion as well as the farm gate price of abaca in the context of the
expansion area for abaca production. Table I2 shows the sensitivity of the EIRR to the
changes in the pre-project cost of transporting products from the farm to the market and the
price of the farm gate price of abaca fiber. If the cost of hauling goes to as low as PhP 4 and
at the same time the price of abaca fiber goes as low as PhP 20, then the EIRR goes down to
20.33. Conversely, if the price of abaca fiber goes up to as high as PhP 70 and at the same
time the cost of hauling goes as high as PhP 12, then the EIRR goes up to about 30.31.
Table I2. Sensitivity of EIRR to the prices of abaca and cost of transport.
Transport
Cost per
Kg
4
6
8
10
12

Price of Abaca
per kg
20
20.33
21.11
21.90
22.71
23.54

30
22.41
23.12
23.84
24.59
25.34

40
24.09
24.75
25.43
26.13
26.84

50
25.50
26.13
26.78
27.45
28.13

60
26.74
27.35
27.98
28.62
29.27

70
27.84
28.44
29.04
29.67
30.31

Similarly, the BC ratio is subjected to sensitivity analyses with respect to changes in the cost
of hauling farm produce to the central business district and the price of abaca fiber. If the
cost of hauling goes to as low as PhP 4 and at the same time the price of abaca fiber goes as
low as PhP 20, then the BCR goes down to 1.80. Conversely, if the price of abaca fiber
goes up to as high as PhP 70 and at the same time the cost of hauling goes as high as PhP 12,
then the EIRR goes up to about 4.06.
Table I3. Sensitivity of BCR to the prices of abaca and cost of transport.
Transport
Cost per
Kg
4

Price of
Abaca per kg
20
1.80

30
2.19

40
2.57

50
2.96

60
3.35

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

46

70
3.73

6
8
10
12

1.88
1.96
2.05
2.13

2.27
2.35
2.43
2.52

2.65
2.74
2.82
2.90

3.04
3.12
3.21
3.29

3.43
3.51
3.59
3.68

3.81
3.90
3.98
4.06

At the base scenario of transport cost at PhP 6 and price of abaca fiber at PhP 40, the EIIR
and BCR are 24.75 and 2.65, respectively. The following list of Detailed Tables of
Economic Financial Analysis Templates are hereby attached to ensure the validity of the
computations presented:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Table 1. Computation of Economic Cost of sub-project

Table 2. Investment and Maintenance Costs
Table 3a Annual Maintenance Unit Costs
Table 3b Annual Maintenance Cost
Table 4. Benefits-Vehicle Operating Cost
Table 5a Benefits-savings in Output Hauling
Table 5b Benefit Saving in Input Hauling
Table 6. Benefits Savings in Travel Time for Commuters
Table 7. Benefits-Newly Cultivated Agricultural land (Optional)
Table 8. Benefits-Reduction in Post-Harvest Losses
Table 9. Economic Analysis
Table 10. Sensitivity Analysis

J. Conclusions and Recommendation

i.

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

ii.

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

ANNEXES
Construction/Rehabilitation/Concreting of Buli-Bayan-San Isidro-Mahaba-San Roque-Tagbilaong Farm to Market Road

47

Annex G1. Minutes of consultation with the Datus of Manobo

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

48

Annex G1. Continued

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

49

Annex G1b. Minutes of public consultation with the residents

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

50

Annex G1b. Continued

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

51

Annex G2. Environmental Issues and Mitigation Measures

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

52

Issue
(Potential
Impact)

Assessment

Mitigation
Measure

Schedule/ Instrument
Duration of
of
the
ImplementMitigation ation (POW, Responsib
Measures Contract,
le Unit
IDP, or
O&M Plan)

Soil erosion and

sedimentation
management
1. Temporary
increase in
sedimentation
during
construction

[x] Topography of
the road alignment
will necessitate
massive
earthmoving and
cutting of clayey
or loose topsoil
[x] Cut materials
will consist mainly
of hard rocks and
are unlikely to
generate
significant
sediments
2. Landslide/
[x] The road will
erosion of
traverse a
exposed road
mountainous area
sides resulting in necessitating deep
sedimentation of cuts on
waterways
mountainsides, in
certain stations.
[x] The exposed
slopes will likely
consist of highly
erodible loose
materials.

Water quality
management
1. Inadequate
drainage
resulting in
flooding or
ponding

[x] The road will

block runoff,
resulting in
flooding on one
side of the road

[x] Earthmoving/
15 days
DED/POW; Contractor
cutting of slopes to be after NTP Contract /Assigned
done during dry
Project
months
Engr
[ x] Proper disposal and
compaction of spoils

[x] Include slope

protection works at the
following stations:
Puroks Lansones and
Santol, Brgy. San Isidro
Sitio San Roque, Brgy.
Mahaba
The following types of
slope protection will be
applied, as deemed
appropriate:
Bioengineering with
geomat and cover crop;
Planting of fast
growing shrub species;
Riprap; Gabions;
Terracing; Concrete
protection wall
[x] Installation of
cross drains,
particularly in the
Brgy site in Brgy. San
Isidro

DED/POW Contractor
Contract
/Assigned
Project
Engr

DED/POW Contractor
Contract /Assigned
Project
Engr

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

53

Issue
(Potential
Impact)

2. Potential
contamination
of surface and
groundwater
with oil/grease
3. Potential
contamination
with human
waste

Assessment

during rainy days

[x] There will be
no significant
amount of waste
oil/grease

[x] Some
construction
workers would be
temporarily
housed in a base
camp
[x] Workers would
be locals and are
expected to go
home to their
respective houses
after work
4. Potential
[x] There is an onincreased use of going IPM program
pesticides due to of DA in the service
intensification of area
cash crop
production in the
area
Air quality
management

Mitigation
Measure

Schedule/ Instrument
Duration of
of
the
ImplementMitigation ation (POW, Responsib
Measures Contract,
le Unit
IDP, or
O&M Plan)

[x] Proper handling

and disposal of waste
oil and grease

During the
constructi
on period

Contract

Contractor
/Assigned
Project
Engr

[x] Set up adequate

latrine/toilet facility at
the base camp

During the
constructi
on period

Contract

Contractor
/Assigned
Project
Engr.

[x] DA to continue to
support IPM program

Capacity
OMA
Building
Plan;
O & M Plan

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

54

Issue
(Potential
Impact)

1. Potential
dust/mud
nuisance
during
construction

Assessment

Mitigation
Measure

Schedule/ Instrument
Duration of
of
the
ImplementMitigation ation (POW, Responsib
Measures Contract,
le Unit
IDP, or
O&M Plan)

[x] Roads could

become powdery
during dry days
and muddy during
rainy days of the
construction
period
[x] Access road
and/or the
construction/
rehabilitation
works passes
through a
populated area

[x] Undertake
sprinkling of road
(including access
roads) during dry
days, and filling up of
potholes during rainy
days, especially in
residential areas
[x] Set up speed limits
for vehicles,
especially within
residential areas

During the
constructi
on period

Contract

Contractor
/Assigned
Project
Engr

[x] Noise
associated with
construction of
FMR will comply
with
environmental
standards.

[x] Properly maintain During the

construction vehicles
constructi
and equipment to
on period
reduce excessive noise
[x] Post warning signs
in any High Noise
Area and limit entry
of workers in the area
[x] Locate quarrying
and mixing operations
away from populated
areas

Contract

Contractor
/ Assigned
Project
Engineer

[x ] The proposed
road will connect
to the market
upland/hilly areas

[x ] DA to coordinate
with LGU for the
introduction of
sustainable upland

Noise and
vibration
1.
Pot
ential
increase in
noise from
constructi
on
vehicles
and
blasting
operation
and
equipment
Ecology
management
(flora and
fauna)
1. Potential
acceleration of
denudation of
the upland/hilly

Capacity
Building
Plan

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

55

OMA

Issue
(Potential
Impact)

areas due to
intensification
of crop
production

2. Potential
increase in
encroachments
of human
activities into
the nearby
public forest

Assessment

where farmers are

currently
practicing erosive
farming
techniques.
[x] The road
connects lowland
farms to the
market
[x] The proposed
road will not
improve access to
the nearby public
forest.

Mitigation
Measure

Schedule/ Instrument
Duration of
of
the
ImplementMitigation ation (POW, Responsib
Measures Contract,
le Unit
IDP, or
O&M Plan)

farming systems in the

area

[ x] Coordinate with
DENR for the
enactment of
ordinance deputizing
the local community
to enforce forestry
laws

Capacity
Building
Plan

MENRO

Annex Table I1. Computation of Economic Cost of Subproject

Financial Cost
(current prices)
Materials /a

121,913,000.00

Conversion
factor/Tax
12%

/
h

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

56

110,209,352.00

Equipment /b
Labor:
Skilled
Unskilled
Subtotal Labor
Total Base/Direct Cost
Overhead, Contingencies and Miscellaneous
(OCM) /d
Contractor's Profit /e
Total (Base/Direct Cost+OCM+CP)
Taxes /f
FS and DED Preparation+ Engineering
Supervision /g
Total Cost

33,249,000.00

33,249,000.00

5,541,500.00
6,649,800.00
12,191,300.00
167,353,300.00
15,516,200.00
11,083,000.00
193,952,500.00

5,541,500.00
0.6

/
c

12%

/
h

12%

/
h

17,732,800.00
9,974,700.00

13,853,750.00
11,083,000.00
43,999,510.00
0.00

221,660,000.00

a/ Assumption: 80% is purchased from market

b/ Assumption: 100% is base cost (no taxes)
c/ Conversion factor for unskilled labor = 0.6
d/ OCM is 12% of base cost if subproject cost is PhP
5 mln below; 9% if PhP 5 mln to PhP 50 mln; 7% if
PhP 50 mln to PhP 150 mln; 6% if above PhP 150
mln
e/ Contractor's Profit is 10% if project cost is PhP 5 mln below; 8%
otherwise
f/ Taxes is 12% of total mark-up value
g/ FS and DED preparation is 5% of base cost; Engineering supervision is 5% of base cost
h/ 12% represents tax from respective costs

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

57

3,989,880.00
9,531,380.00
19,062,760.00

8,905,982.14
259,426,114.14

Annex Table I2. Investment and Maintenance Costs

Costs

Unit

Investment
Total economic value

calc

Total (Investment)

259,426,114
259,426,114

353,334

353,334

353,334

353,334

353,334

565,334

353,334

353,334

353,334

353,334

353,334

353,334

353,334

353,334

565,334

353,334

353,334

353,334

353,334

353,334

353,334

353,334

353,334

565,334

353,334

353,334

353,334

Operating
Maintenance

calc

Total (Operating)
Total Inputs

259,426,114

Annex Table I2. Continued

Costs

Unit

10

11

12

13

14

15

16

17

18

19

20

Investment
Total economic value

calc

Total (Investment)

353,334

353,334

565,334

353,334

Total (Operating)

353,334

353,334

565,334

353,334

Total Inputs

353,334

353,334

565,334

353,334

353,334

353,334

353,334

565,334

353,334

353,334

353,334

353,334

353,334

565,334

353,334

353,334

353,334

353,334

353,334

565,334

353,334

353,334

Operating
Maintenance

calc

353,3
34
353,3
34
353,3
34

a/ Periodic maintenance is approximately +60 of annual maintenance and is undertaken every six years

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

58

Annex Table I3a. Annual Road Maintenance Unit Cost

Unit
cost
(per 1
km)
Financial
Gravelled road
Fixed cost:
Vegetation control a/
Cleaning and repair of culverts a/
Clearing side ditches a/
Climatic loss of gravel
Total

19,280
7,180
5,066
7,034
28,883
48,163

Portland Cement Concrete Pavement

(PCCP)
Fixed cost:
Vegetation control a/
Cleaning and repair of culverts a/
Clearing side ditches a/
Climatic loss of gravel b/
Total

19,280
7,180
5,066
7,034
9,628
28,908

Conversion
factors

0.6
0.6
0.6

0.6
0.6
0.6

Economic

11,568
4,308
3,040
4,220
28,883
40,451

11,568
4,308
3,040
4,220
9,628
21,196

a/ Assumption is 100% of labor cost

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

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

59

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

60

Annex Table I3b. Annual Maintenance Cost

Costs
Road length

Unit

10

Gravelled road

km

1
6
.
6
7
Portland Cement Concrete Pavement (PCCP)

km

Unit Maintenance cost

Gravelled road

PhP

16.67

16.67

16.67

16.67

16.67

16.67

16.67

16.67

21,196

21,196

21,196

21,196

353,334
353,334

353,334
353,334

353,334
353,334

353,334
353,334

2
1
,
1
9
6
Portland Cement Concrete Pavement (PCCP)

PhP

21,196

21,196

21,196

21,196

PhP

Annual Maintenance cost

0
Gravelled road

3
5
3
,
3
3
4
Portland Cement Concrete Pavement (PCCP)
Subtotal Annual Maintenance cost

PhP
PhP

353,334
353,334

353,334
353,334

353,334
353,334

353,334
353,334

3
5
3
,

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

61

3
3
4
2
1
2
,
0
0
0
Capital maintenance every 6th year a/

PhP

5
6
5
,
3
3
4
Total Annual Maintenance cost

PhP

353,334

353,334

Unit

11

13

353,334

353,334

353,334

353,334

353,334

353,334

Annex Table I3b. Continued

Costs
Road length
Gravelled road
Portland Cement Concrete Pavement (PCCP)

14
-

15
-

17
-

18

16.67

16.67

16.67

16.67

16.67

16.67

16.67

16.67

Unit Maintenance cost

Gravelled road
Portland Cement Concrete Pavement (PCCP)

PhP
PhP

21,196

21,196

21,196

21,196

21,196

21,196

21,196

21,196

Annual Maintenance cost

Gravelled road
Portland Cement Concrete Pavement (PCCP)
Subtotal Annual Maintenance cost
Capital maintenance every 6th year a/

PhP
PhP
PhP
PhP

0
353,334
353,334
0

0
353,334
353,334
0

0
353,334
353,334
0

0
353,334
353,334
0

0
353,334
353,334
0

0
353,334
353,334
212,000

0
353,334
353,334
0

0
353,334
353,334
0

62

20

km
km

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

19
-

Total Annual Maintenance cost

PhP

353,334

353,334

353,334

353,334

353,334

565,334

353,334

353,334

a/ Appr. +60% of annual maintenance cost

Annex Table I4a.Benefits Vehicle Operating Costs (VOC) Savings

Benefits

Unit

10

Motorcycles
Total number d/
Number of trips per day
Number of days in operation
VOC Difference /a
Road length
Subtotal (Motorcycles)

unit
trip/day
day/year
Php
km
Php

993
2
288
1.11
16.67
10,621,663

993
2
288
1.11
16.67
10,621,663

993
2
288
1.11
16.67
10,621,663

993
2
288
1.11
16.67
10,621,663

993
2
288
1.11
16.67
10,621,663

1,017
2
288
1.11
16.67
10,876,583

1,017
2
288
1.11
16.67
10,876,583

1,017
2
288
1.11
16.67
10,876,583

1,017
2
288
1.11
16.67
10,876,583

1,017
2
288
1.11
16.67
10,876,583

Service vehicle
Total number f/
Number of trips
Number of days in operation
VOC Difference /a
Road length
Subtotal (Car/Vans)

unit
trip/day
day
Php
km
Php

47
2
288
7.578
16.67
3,419,877

47
2
288
7.58
16.67
3,419,877

47
2
288
7.58
16.67
3,419,877

47
2
288
7.58
16.67
3,419,877

48
2
288
7.58
16.67
3,501,954

49
2
288
7.58
16.67
3,586,001

49
2
288
7.58
16.67
3,586,001

49
2
288
7.58
16.67
3,586,001

49
2
288
7.58
16.67
3,586,001

49
2
288
7.58
16.67
3,586,001

Trucks
Total number g/
Number of trips
Number of days in operation
VOC Difference /a
Road length
Subtotal (Truck)

unit
trip/day
day
Php
km
Php

49
1
288
21.81
16.67
5,130,267

49
1
288
21.81
16.67
5,130,267

49
1
288
21.81
16.67
5,130,267

49
1
288
21.81
16.67
5,130,267

49
1
288
21.81
16.67
5,130,267

50
1
288
21.81
16.67
5,253,394

50
1
288
21.81
16.67
5,253,394

50
1
288
21.81
16.67
5,253,394

50
1
288
21.81
16.67
5,253,394

50
1
288
21.81
16.67
5,253,394

19,171,808

19,171,808

19,171,808

19,171,808

19,253,885

19,715,978

19,715,978

19,715,978

19,715,978

19,715,978

Total

PhP

a/ Data provided by the

DPWH
b/ 1 month=24 operating days
x 12 months/year
Growth rates of the ff vehicles
increase every 5 years:

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

63

(Source of data: PEO 14-Hour

traffic 2014)
d/ Motorcycle
f/ Service Vehicle/passenger utility'
g/ Truck

2.4%
2.4%
2.4%

Annex Table I4a. Continued

Benefits

Unit

11

1
2

13

14

15

16

17

18

19

20

Motorcycles

Total number d/
Number of trips per day

Number of days in operation

unit
trip/day

day/year

1,041

1
,
0
4
1

1,041

1,041

1,041

288

2
8
8

288

288

288

1.11

1.11

1.11

16.67
11,137,621

16.67
11,137,621

VOC Difference /a

Php

1.11

Road length
Subtotal (Motorcycles)

km
Php

16.67
11,137,621

1
.
1
1
1
6
.
6
7

16.67
11,137,621

1
1
,
1
3
7
,

1,066

1,066

1,066

1,066

1,066

288

288

288

288

288

1.11

1.11

1.11

1.11

1.11

16.67
11,404
,924

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

64

16.67
11,404,924

16.67
11,404,924

16.67
11,404,924

16.67
11,404,924

6
2
1
Service vehicle

Total number f/

unit

49

4
9

49

49

50

50

50

50

50

52

Number of trips

trip/day

288

2
8
8

288

288

288

288

288

288

288

288

7.58

7.58

7.58

7.58

7.58

7.58

7.58

7.58

16.67

16.67

16.67

16.67

16.67

3,672,
065

Number of days in operation

day

VOC Difference /a

Php

7.58

Road length

km

16.67

7
.
5
8
1
6
.
6
7

Php

3,586,001

3
,
5
8
6
,
0
0
1

3,586,001

3,586,001

3,672,065

Total number g/

unit

51

5
1

51

51

51

Number of trips

trip/day

Subtotal (Car/Vans)

16.67

16.67

16.67

3,672,065

3,672,065

3,672,065

3,760,195

53

53

53

53

53

Trucks

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

65

Number of days in operation

day

288

2
8
8

288

288

288

288

21.81

21.81

21.81

16.67

16.67

16.67

288

288

288

288

21.81

21.81

21.81

21.81

VOC Difference /a

Php

21.81

Road length

km

16.67

2
1
.
8
1
1
6
.
6
7

5,379,475

5
,
3
7
9
,
4
7
5

5,379,475

5,379,475

5,379,475

5,508,
583

5,508,583

5,508,583

5,508,583

5,508,583

20,103,098

2
0
,
1
0
3
,
0
9
8

20,103,098

20,103,098

20,189,162

20,585
,572

20,585,572

20,585,572

20,585,572

20,673,702

Subtotal (Truck)

Total

Php

PhP

16.67

21.81

a/ Data provided by the

DPWH
b/ 1 month=24
operating days x 12

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

66

16.67

16.67

16.67

16.67

months/year
Growth rates of the ff
vehicles increase every
5 years:
(Source of data: PEO
14-Hour traffic 2014)
d/ Motorcycle
f/ Service Vehicle/passenger utility'
g/ Truck

2.4
%
2.4
%
2.4
%

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

67

Annex Table I4b. Vehicle Operating Cost Savings for particular year
Vehicle
Operating
Cost savings
for
particular
year= the
difference
in VOCs for
the surface
type with
and without
project x
projected
annual
average
daily traffic
per vehicle
type x
actual road
length

Surface Condition

V
e
h
i
c
l
e
T
y
p
e
Car/Van

Paved
Good (A)
Very Bad (B)
Gravel
Good (C)
Very Bad (D)
Vehicle Operating Cost Difference
Paved (B-A)
Gravel (D-C)
Gravel-Paved (D-A)

Jeepney

Mcycle

Tricycle

Bus

Truck

7.807
12.670

6.483
11.199

1.034
4.372

2.705
8.048

10.441
20.867

13.182
26.253

9.010
15.385

7.588
14.934

1.093
2.148

2.879
8.395

13.164
28.013

16.609
34.990

Car/Van
4.863
6.375
7.578

Jeepney
4.716
7.346
8.451

Mcycle
3.338
1.055
1.114

Tricycle
5.343
5.516
5.690

Bus
10.426
14.849
17.572

13.071
18.381
21.808

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

68

Annex Table I5a. Benefits Savings in Output Hauling

Benefits
Hauling cost
Current hauling cost /b
Estimated hauling cost
Hauling cost saving
Hauling cost saving /c

Unit
6
Php/kg
Php/kg
Php/kg
Php/kg

6
2
4
4

6
2
4
4

6
2
4
4

6
2
4
4

6
2
4
4

Average production per hectare per year /e

kg.

300

300

300

300

300

Area planted

ha

1114

1114

1114

1114

1114

Total output

kg.

334,200

334,200

334,200

334,200

334,200

% of harvest brought to provincial road/poblacion d/

kg.

100%

100%

100%

100%

100%

Total volume of harvest marketed

kg.

334,200

334,200

334,200

334,200

334,200

Subtotal savings in hauling cost

Php

1,336,800

1,336,800

1,336,800

1,336,800

1,336,800

8
6
2
4
4

10

6
2
4
4

6
2
4
4

300

300

1114

1114

334,200

334,200

100%

100%

334,200

334,200

1,336,800

1,336,800

Abaca

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

69

3
0
0
1
1
1
4
3
3
4,
2
0
0
1
0
0
%
3
3
4,
2
0
0
1
,
3
3
6
,
8
0
0

Copra
Average production per hectare per year /f

kg

275

275

275

275

275

Area planted

ha

916.00

916.00

916.00

916.00

916.00

Total output

kg

251,900

251,900

251,900

251,900

251,900

% of harvest brought to provincial road/poblacion

100%

100%

100%

100%

100%

Total volume of harvest marketed

kg

251,900

251,900

251,900

251,900

251,900

Php

1,007,600

1,007,600

1,007,600

1,007,600

1,007,600

Subtotal savings in hauling cost

2
7
5
9
1
6.
0
0
2
5
1,
9
0
0
1
0
0
%
2
5
1,
9
0
0
1
,
0
0
7
,
6
0
0

275

275

916.00

916.00

251,900

251,900

100%

100%

251,900

251,900

1,007,600

1,007,600

3,400

3,400

314

314

Rice
Average production per hectare per year /h

kg

3,400

3,400

3,400

3,400

3,400

Area planted

ha

314

314

314

314

314

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

70

3,
4
0
0
3
1
4

Total output

kg

1,067,600

1,067,600

1,067,600

1,067,600

1,067,600

% of harvest brought to provincial road/poblacion

90%

90%

90%

90%

90%

Total volume of harvest marketed

kg

960,840

960,840

960,840

960,840

960,840

Subtotal savings in hauling cost

Php

3,843,360

3,843,360

3,843,360

3,843,360

3,843,360

Banana
Average production per hectare per year /i
Area planted
Total output

kg.
ha
kg.

% of harvest brought to provincial road/poblacion d/

0%

0%

0%

0%

0%

kg.
Php

Total volume of harvest marketed

Subtotal savings in hauling cost

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

71

1,
0
6
7,
6
0
0
9
0
%
9
6
0,
8
4
0
3
,
8
4
3
,
3
6
0

0
%
-

1,067,600

1,067,600

90%

90%

960,840

960,840

3,843,360

3,843,360

0%

0%

Total Savings in Hauling Output (all crops)

Php

6,187,760

a/ Barangay Anolingan-Anislagan
b/ from the barangay to provincial road via
carabao cart/manual hauling
c/ 1 sack = 50kgs
d/ % of harvest brought to provincial road,
Source: 2014 Municipal Agriculture Office
Report
Rubber = 100%
Banana = 90%
Coconut = 100%

6,187,760

6,187,760

6,187,760

6,187,760

6,
1
8
7,
7
6
0

6,187,760

6,187,760

Abaca = 100%
Rice = 90%

assumption: after the project 20%

reduction on passenger fare.

Annex Table I5a. Continued

Benefits
Hauling cost
Current hauling cost /b
Estimated hauling cost
Hauling cost saving
Hauling cost saving /c
Abaca
Average production per hectare per year /e
Area planted
Total output
% of harvest brought to provincial road/poblacion d/
Total volume of harvest marketed
Subtotal savings in hauling cost

Unit
6
Php/kg
Php/kg
Php/kg
Php/kg

11

12

14

16

6
2
4
4

6
2
4
4

6
2
4
4

6
2
4
4

6
2
4
4

6
2
4
4

6
2
4
4

6
2
4
4

kg.
ha
kg.
kg.
kg.
Php

300
1114
334,200
100%
334,200
1,336,800

300
1114
334,200
100%
334,200
1,336,800

300
1114
334,200
100%
334,200
1,336,800

300
1114
334,200
100%
334,200
1,336,800

300
1114
334,200
100%
334,200
1,336,800

300
1114
334,200
100%
334,200
1,336,800

300
1114
334,200
100%
334,200
1,336,800

300
1114
334,200
100%
334,200
1,336,800

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

72

17

18

19

20

Copra
Average production per hectare per year /f
Area planted
Total output
% of harvest brought to provincial road/poblacion
Total volume of harvest marketed
Subtotal savings in hauling cost

kg
ha
kg
%
kg
Php

275
916.00
251,900
100%
251,900
1,007,600

275
916.00
251,900
100%
251,900
1,007,600

275
916.00
251,900
100%
251,900
1,007,600

275
916.00
251,900
100%
251,900
1,007,600

275
916.00
251,900
100%
251,900
1,007,600

275
916.00
251,900
100%
251,900
1,007,600

275
916.00
251,900
100%
251,900
1,007,600

275
916.00
251,900
100%
251,900
1,007,600

Rice
Average production per hectare per year /h
Area planted
Total output
% of harvest brought to provincial road/poblacion
Total volume of harvest marketed
Subtotal savings in hauling cost

kg
ha
kg
%
kg
Php

3,400
314
1,067,600
90%
960,840
3,843,360

3,400
314
1,067,600
90%
960,840
3,843,360

3,400
314
1,067,600
90%
960,840
3,843,360

3,400
314
1,067,600
90%
960,840
3,843,360

3,400
314
1,067,600
90%
960,840
3,843,360

3,400
314
1,067,600
90%
960,840
3,843,360

3,400
314
1,067,600
90%
960,840
3,843,360

3,400
314
1,067,600
90%
960,840
3,843,360

Banana
Average production per hectare per year /i
Area planted
Total output
% of harvest brought to provincial road/poblacion d/
Total volume of harvest marketed
Subtotal savings in hauling cost

kg.
ha
kg.
%
kg.
Php

0%
-

0%
-

0%
-

0%
-

0%
-

0%
-

0%
-

0%
-

Total Savings in Hauling Output (all crops)

Php

6,187,760

6,187,760

6,187,760

6,187,760

6,187,760

6,187,760

6,187,760

6,187,760

a/ Barangay Anolingan-Anislagan
b/ from the barangay to provincial road via
carabao cart/manual hauling
c/ 1 sack = 50kgs
d/ % of harvest brought to provincial road,
Source: 2014 Municipal Agriculture Office
Report
Rubber = 100%
Banana = 90%
Coconut = 100%

Abaca = 100%
Rice = 90%

assumption: after the project 20%

reduction on passenger fare.

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

73

Annex Table I5b. Benefits Savings in Input Hauling

Benefits
Hauling cost
Current hauling cost /b

Php/hill

Estimated hauling cost

Php/hill

Hauling cost saving

Current hauling cost /c
Estimated hauling cost
Hauling cost saving

Php/hill
Php/sack
Php/sack
Php/sack

Abaca
Mineral fertilizer d/
Total number of hills/ha e/
Area planted

Unit

hills/ha
hills/ha
ha

Total No. of Hills

hills

Subtotal savings in hauling cost

Php

Copra
Mineral fertilizer d/
Total number of hills/ha e/
Area planted

hills/ha
hill/ha
ha

Total No. Of Hills

hills

Subtotal savings in hauling cost

Php

Rice
Mineral/Organic fertilizer d/
Seeds
Total number of sacks e/
Area planted
Total fertilizer and seeds
Subtotal savings in hauling cost

sack/ha
sack/ha
sack/ha
ha
sack
Php

0.32

0.32

0.32

0.32

0.32

0.256

0.256

0.256

0.256

0.256

0.064

0.064

0.064

0.064

0.064

120
60
60

120
60
60

120
60
60

120
60
60

120
60
60

1
416
1114

1
416
1189

1
416
1189

1
416
1189

1
416
1189

463424

494624

494624

494624

494624

29,659

31,656

31,656

31,656

31,656

2
100
916

2
100
924

2
100
924

2
100
924

2
100
924

91600

92400

92400

92400

92400

5,862

5,914

5,914

5,914

5,914

4
1
5
314
1570

4
1
5
200
1000

4
1
5
200
1000

4
1
5
200
1000

4
1
5
200
1000

94,200

94,200

94,200

94,200

94,200

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

74

8
0.32
0.25
6
0.06
4
120
60
60

1
416
1189
4946
24
31,6
56

2
100
924
9240
0
5,91
4

4
1
5
200
1000
94,2
00

10

0.32

0.32

0.256

0.256

0.064

0.064

120
60
60

120
60
60

1
416
1189

1
416
1189

494624

494624

31,656

31,656

2
100
924

2
100
924

92400

92400

5,914

5,914

4
1
5
200
1000

4
1
5
200
1000

94,200

94,200

Banana
Mineral/Organic fertilizer d/
Total number of hills/ha e/
Area planted
Total No. of Hills
Subtotal savings in hauling cost

Total

hill/ha
hill/ha
ha
hill
Php

Php

129,722

131,770

131,770

131,770

131,770

131,
770

131,770

131,770

a/ Influence area covering the barangay

b/ from the barangay to provincial road via carabao cart/manual hauling
hauling cost per hill= Php 0.32
c/ hauling cost per sack= Php 100.00
d/ Mineral Fertilizer, Source: Municipal Agriculture Office report 2014
e/ Seed or Hill Requirement/ha, Source: Municipal Agriculture Office report
2014

Annex Table I5b. Continued

Benefits
Hauling cost
Current hauling cost /b
Estimated hauling cost
Hauling cost saving
Current hauling cost /c
Estimated hauling cost
Hauling cost saving
Abaca
Mineral fertilizer d/
Total number of hills/ha e/
Area planted

11

Unit

12

14

16

17

18

19

20

Php/hill
Php/hill
Php/hill
Php/sack
Php/sack
Php/sack

0.32
0.256
0.064
120
60
60

0.32
0.256
0.064
120
60
60

0.32
0.256
0.064
120
60
60

0.32
0.256
0.064
120
60
60

0.32
0.256
0.064
120
60
60

0.32
0.256
0.064
120
60
60

0.32
0.256
0.064
120
60
60

0.32
0.256
0.064
120
60
60

hills/ha
hills/ha
ha

1
416
1189

1
416
1189

1
416
1189

1
416
1189

1
416
1189

1
416
1189

1
416
1189

1
416
1189

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

75

Total No. of Hills

Subtotal savings in hauling cost

hills
Php

494624
31,656

494624
31,656

494624
31,656

494624
31,656

494624
31,656

494624
31,656

494624
31,656

494624
31,656

Copra
Mineral fertilizer d/
Total number of hills/ha e/
Area planted
Total No. Of Hills
Subtotal savings in hauling cost

hills/ha
hill/ha
ha
hills
Php

2
100
924
92400
5,914

2
100
924
92400
5,914

2
100
924
92400
5,914

2
100
924
92400
5,914

2
100
924
92400
5,914

2
100
924
92400
5,914

2
100
924
92400
5,914

2
100
924
92400
5,914

Rice
Mineral/Organic fertilizer d/
Seeds
Total number of sacks e/
Area planted
Total fertilizer and seeds
Subtotal savings in hauling cost

sack/ha
sack/ha
sack/ha
ha
sack
Php

4
1
5
200
1000
94,200

4
1
5
200
1000
94,200

4
1
5
200
1000
94,200

4
1
5
200
1000
94,200

4
1
5
200
1000
94,200

4
1
5
200
1000
94,200

4
1
5
200
1000
94,200

4
1
5
200
1000
94,200

Banana
Mineral/Organic fertilizer d/
Total number of hills/ha e/
Area planted
Total No. of Hills
Subtotal savings in hauling cost

hill/ha
hill/ha
ha
hill
Php
131,770

131,770

131,770

131,770

131,770

131,770

131,770

131,770

Total

Php

a/ Influence area covering the barangay

b/ from the barangay to provincial road via carabao cart/manual hauling
hauling cost per hill= Php 0.32
c/ hauling cost per sack= Php 100.00
d/ Mineral Fertilizer, Source: Municipal Agriculture Office report 2014
e/ Seed or Hill Requirement/ha, Source: Municipal Agriculture Office report
2014

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

76

Annex Table I6. Benefits Savings in travel time for commuters

Benefits

Unit

Population number
Population growth rate
Projected population
Estimated % of ec.active population
Estimated number of ec.active
population
% commuters in ec.active population
Estimated number of commuters
Number of one way trips per day
Number of working days c/
Total number of trips for all commuters
Time saving for commuters /a
Total time saving in min
Total time saving in days /b
Share of saved time used for work
Net total time saving in days
Average labor cost
Labor cost (economic)

4,969

70%

2.90%
5,261
70%

2.90%
5,414
70%

2.90%
5,571
70%

person

3,478

3,683

3,790

3,900

%
person
trip/day
w.day
trip
min/trip

20%
696
2
288
400,700
10
4,007,00
2
8,348
50%
4,174
200
250

20%
737
2
288
424,278
10

20%
758
2
288
436,582
10

20%
780
2
288
449,243
10

4,242,778

4,365,818

4,492,427

8,839
50%
4,420
200
120

9,095
50%
4,548
200
120

9,359
50%
4,680
200
120

530,347

545,727

561,553

min
w.day
%
w.day
PhP/w.day
PhP/w.day

Time saving value

person
%
person
%

PhP

1,043,49
0

2
5.
7,
0
4
,
2
08
02
2
48
16
0
4
,
9
5,
04
2,
10
2
5
7

a/ 20min before and 10 min after subproject

b/ 60 min x 8 working hours = 480 min
c/ 1 month = 22 working days x 12 months/yr

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

77

10

2.90%
5,899
70%

2.90%
6,070
70%

2.90%
6,246
70%

3.15%
6,443
70%

4,129

4,249

4,372

4,510

20%
826
2
288
475,677
10

20%
850
2
288
489,471
10

20%
874
2
288
503,666
10

20%
902
2
288
519,531
10

4,756,766

4,894,712

5,036,659

5,195,313

9,910
50%
4,955
200
120

10,197
50%
5,099
200
120

10,493
50%
5,247
200
120

10,824
50%
5,412
200
120

594,596

611,839

629,582

649,414

d/ average labor cost within road influence area

e/ no.of one way trips per day increase in 2 trip/day after
implementation

Annex Table I6. Continued

11

Benefits

Population number
Population growth rate
Projected population
Estimated % of ec.active population
Estimated number of ec.active
population
% commuters in ec.active population
Estimated number of commuters
Number of one way trips per day
Number of working days c/
Total number of trips for all commuters
Time saving for commuters /a
Total time saving in min
Total time saving in days /b
Share of saved time used for work
Net total time saving in days
Average labor cost
Labor cost (economic)

Time saving value

12

14

15

3.15%
6,646
70%

3.15%
6,855
70%

3.15%
7,294
70%

3.15%
7,523
70%

4,652

4,798

5,105

5,266

20%
930
2
288

20%
960
2
288

20%
1,021
2
288

20%
1,053
2
288

535,897

552,777

588,151

606,678

10

10

10

10

5,358,966

5,527,773

5,881,508

6,066,775

11,165
50%
5,582
200
120

11,516
50%
5,758
200
120

12,253
50%
6,127
200
120

12,639
50%
6,320
200
120

669,871

690,972

735,188

758,347

1
6

3
7.
7,
0
5
,
2
01
,2
2
8
6
2
1
0
6
,
1
53
60
2,
01
2
7
8

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

78

17

18

19

20

3.15%
8,005
70%

3.15%
8,257
70%

3.15%
8,517
70%

3.15%
8,785
70%

5,603

5,780

5,962

6,150

20%
1,121
2
288

20%
1,156
2
288

20%
1,230
2
288

645,500

665,833

10

10

6,455,002

6,658,334

13,448
50%
6,724
200
120

13,872
50%
6,936
200
120

20%
1,192
2
288
686,80
7
10
6,868,0
72
14,308
50%
7,154
200
120

806,875

832,292

858,50
9

708,442
10
7,084,416
14,759
50%
7,380
200
120
885,552

a/ 20min before and 10 min after subproject

b/ 60 min x 8 working hours = 480 min
c/ 1 month = 22 working days x 12 months/yr
d/ average labor cost within road influence area
e/ no.of one way trips per day increase in 2 trip/day after
implementation

Annex Table I7. Benefits of newly cultivated agricultural land (abaca)

Benefits

Unit

10

Newly cultivated agr. land

ha

200

210

252

302.4

362.88

435.456

522.5472

627.05664

752.467968

902.9615616

Average production per

hectare per year

kg

300

315

330.75

347.2875

364.6518
75

382.8844688

402.0286922

422.1301268

443.2366331

465.3984648

Total Output

kg

66,150.00

83,349.00

105,019.74

132,324.8
7

166,729.34

210,078.97

264,699.50

333,521.37

420,236.92

44.00

48.40

53.24

58.56

64.42

70.86

77.95

85.74

94.32

2,910,600.00

4,034,091.60

5,591,250.96

7,749,473
.83

10,740,770.72

14,886,708.22

20,632,977.60

28,597,306.95

39,635,867.44

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

315,000.00

378,000.00

453,600.00

544,320.0
0

653,184.00

783,820.80

940,584.96

1,128,701.95

1,354,442.34

13,230.00

16,669.80

21,003.95

26,464.97

33,345.87

42,015.79

52,939.90

66,704.27

84,047.38

378,230.00

444,669.80

524,603.95

620,784.9
7

736,529.87

875,836.59

1,043,524.86

1,245,406.23

1,488,489.73

Output Price (farm gate) b/

PhP/kg

Output value

PhP

Land Dev. Cost/Ha /a

PhP

Production Cost/Ha

PhP

Marketing cost
Total Cost

PhP/kg
Php

60,0
00.0
0
40.0
0
2,40
0,00
0.00
30,0
00.0
0
200,
000.
00
3,00
0.00
233,
000.
00

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

79

Net Benefit

2,16
7,00
0.00

Php

2,532,370.00

3,589,421.80

5,066,647.01

7,128,688
.85

10,004,240.86

14,010,871.63

19,589,452.74

27,351,900.73

38,147,377.71

a/ may vary according Region

b/ at 15php/kg (1 sack = 50kg)

Annex Table I7. Continued

11

12

ha

1083.553874

1300.264649

1560.317578

1872.381094

2246.857313

2696.228776

3235.474531

3882.569437

4659.083324

5590.899989

kg

488.668388

513.1018074

538.7568978

565.6947427

593.9794798

623.6784538

654.8623765

687.6054953

721.9857701

758.0850586

Total Output

kg

529,498.52

667,168.14

840,631.86

1,059,196.14

1,334,587.14

1,681,579.79

2,118,790.54

2,669,676.08

3,363,791.86

4,238,377.75

Output Price
(farm gate) b/

PhP/k
g

103.75

114.12

125.54

138.09

151.90

167.09

183.80

202.18

222.40

244.64

Output value

PhP

54,935,312.27

76,140,342.80

105,530,515.1
2

146,265,293.9
6

202,723,697.4
2

280,975,044.6
3

389,431,411.86

539,751,936.8
3

748,096,184.4
5

1,036,861,311.65

PhP

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

50,000.00

PhP

1,625,330.81

1,950,396.97

2,340,476.37

2,808,571.64

3,370,285.97

4,044,343.16

4,853,211.80

5,823,854.16

6,988,624.99

8,386,349.98

PhP/k
g

105,899.70

133,433.63

168,126.37

211,839.23

266,917.43

336,315.96

423,758.11

533,935.22

672,758.37

847,675.55

Benefits
Newly cultivated
agr. land
Average
production per
hectare per year

Land Dev.
Cost/Ha /a
Production
Cost/Ha
Marketing cost

Unit

13

14

15

16

17

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

80

18

19

20

Total Cost

Php

1,781,230.52

2,133,830.60

2,558,602.74

3,070,410.87

3,687,203.40

4,430,659.12

5,326,969.90

6,407,789.37

7,711,383.36

9,284,025.53

Net Benefit

Php

53,154,081.75

74,006,512.20

102,971,912.3
8

143,194,883.0
9

199,036,494.0
3

276,544,385.5
1

384,104,441.9
5

533,344,147.4
6

740,384,801.0
9

1,027,577,286.12

a/ may vary according Region

b/ at 15php/kg (1 sack = 50kg)

Annex Table I8. Benefits Reduction in Post-Harvest Losses

Benefits

Unit

16,710,000

16,710,00
0

16,710,000

23

23

1%

10

16,710,000

16,710,00
0

16,7
10,0
00

16,710,000

16,710,000

23

23

23

23

23

23

1%

1%

1%

1%

1%

1%

3,843,300

3,843,300

3,843,300

3,843,300

3,843,300

1%
3,84
3,30
0

3,843,300

3,843,300

12,595,000

12,595,00
0

12,595,000

12,595,000

12,595,00
0

12,5
95,0
00

12,595,000

12,595,000

27

27

27

27

27

27

27

27

1.0%
3,400,650

1.0%
3,400,650

1.0%
3,400,650

1.0%
3,400,650

1.0%
3,400,650

1.0%
3,40

1.0%
3,400,650

1.0%
3,400,650

Abaca
Total volume of harvest marketed
Price of harvest marketed /b
Estimated reduction in post-harvest losses
Subtotal savings in reduction of post-harvest
losses

kgs.
Php/k
g
%
Php

Copra
Total volume of harvest marketed
Price of harvest marketed /b
Estimated reduction in post-harvest losses
Subtotal savings in reduction of post-harvest

kgs.
Php/k
g
%
Php

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

81

0,65
0

losses
Rice
Total volume of harvest marketed
Price of harvest marketed /b
Estimated reduction in post-harvest losses
Subtotal savings in reduction of post-harvest
losses
Banana
Total volume of harvest marketed
Price of harvest marketed /b
Estimated reduction in post-harvest losses
Subtotal savings in reduction of post-harvest
losses

kgs.
Php/k
g
%

48,042,00
0

48,042,000

48,042,000

48,042,00
0

48,0
42,0
00

48,042,000

48,042,000

19

19

19

19

19

19

19

19

1%

1%

1%

1%

1%

1%

1%

9,127,980

9,127,980

9,127,980

9,127,980

9,127,980

1%
9,12
7,98
0

9,127,980

9,127,980

15

15

15

15

15

15

15

15

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

1.0%

50

50

50

50

50

50

50

50

1.0%
-

1.0%
-

1.0%
-

1.0%
-

1.0%
-

1.0%
-

1.0%
-

1.0%
-

16,371,930

16,371,93
0

16,371,930

16,371,930

16,371,93
0

16,3
71,9
30

16,371,930

16,371,930

Php

kgs.
Php/k
g
%
Php
kgs.
Php/k
g
%
Php

Total Savings in Post Harvest Losses (all crops)

a/ Influence
area covering
the barangay
b/ Market
prices,
Source: 2014
Municipal
Agriculture
Office Report

48,042,000

Php

c/ Estimated

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

82

Reduction
in
postharvest
losses with
project =
3% (MAO,
2014)

Annex Table I8. Continued

Benefits
Abaca
Total volume of harvest marketed
Price of harvest marketed /b
Estimated reduction in post-harvest losses
Subtotal savings in reduction of post-harvest
losses
Copra
Total volume of harvest marketed
Price of harvest marketed /b
Estimated reduction in post-harvest losses
Subtotal savings in reduction of post-harvest
losses
Rice
Total volume of harvest marketed
Price of harvest marketed /b
Estimated reduction in post-harvest losses
Subtotal savings in reduction of post-harvest
losses
Banana
Total volume of harvest marketed
Price of harvest marketed /b
Estimated reduction in post-harvest losses

Unit

11

kgs.
Php/k
g
%

16,710,000

13

1
6

14

15

16,710,000

16,710,000

16,710,000

23

23

23

23

1%

1%

1%

1%

Php

3,843,300

3,843,300

3,843,300

3,843,300

kgs.
Php/k
g
%

12,595,000

12,595,000

12,595,000

12,595,000

27

27

27

27

1.0%

1.0%

1.0%

1.0%

Php

3,400,650

3,400,650

3,400,650

3,400,650

kgs.
Php/k
g
%

48,042,000

48,042,000

48,042,000

48,042,000

19

19

19

19

1%

1%

1%

1%

Php

9,127,980

9,127,980

9,127,980

9,127,980

kgs.
Php/k
g
%

15

15

15

15

1.0%

1.0%

1.0%

1.0%

1
5
1
.

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

17

18

19

20

1 16,710,000
6
2
23
3
1
1%
%
3 3,843,300
,

16,710,000

16,710,000

16,710,000

23

23

23

1%

1%

1%

3,843,300

3,843,300

3,843,300

1
2
2
7
1
.
3
,

12,595,000

12,595,000

12,595,000

12,595,000

27

27

27

27

1.0%

1.0%

1.0%

1.0%

3,400,650

3,400,650

3,400,650

3,400,650

48,042,000

48,042,000

48,042,000

19

19

19

1%

1%

1%

9,127,980

9,127,980

9,127,980

15

15

15

15

1.0%

1.0%

1.0%

1.0%

4 48,042,000
8
1
19
9
1
1%
%
9 9,127,980
,

83

Subtotal savings in reduction of post-harvest

losses

Total Savings in Post Harvest Losses (all crops)

a/ Influence
area covering
the barangay
b/ Market
prices,
Source: 2014
Municipal
Agriculture
Office Report

Php

kgs.
Php/k
g
%
Php

50

50

50

50

50

50

50

50

1.0%
-

1.0%
-

1.0%
-

1.0%
-

5
0
1
.-

1.0%
-

1.0%
-

1.0%
-

1.0%
-

Php

16,371,930

16,371,930

16,371,930

16,371,930

16,371,930

16,371,930

16,371,930

16,371,930

1
6

c/ Estimated
Reduction in
postharvest
losses with
project =
3% (MAO,
2014)

Annex Table I9. Economic Analysis

Graveling of farm-to-market road
Inputs (Php'000)
Investment
Total economic value
Total (Investment)

0
259,426.1

10

259,426.1

353.3

353.3

353.3

353.3

565.3

353.3

353.3

353.3

353.3

353.3

353.3

353.3

565.3

353.3

353.3

353.3

Operating
Maintenance
Total (Operating)

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

84

35
3.
3
35
3.
3

259,426.1

353.3

353.3

353.3

353.3

565.3

353.3

19,171.8

19,171.8

19,171.8

19,253.9

19,716.0

19,716.0

6,187.8

6,187.8

6,187.8

6,187.8

6,187.8

6,187.8

129.7

131.8

131.8

131.8

131.8

131.8

1,043.5

530.3

545.7

561.6

577.8

594.6

2,167.0

3,589.4

5,066.6

7,128.7

10,004.2

14,010.9

16,371.9

16,371.9

16,371.9

16,371.9

16,371.9

16,371.9

45,072

45,983

47,476

49,636

52,990

57,013

44,718

45,630

47,122

49,282

52,424

56,660

Total Inputs
Incremental Benefits (Php'000)

VOC savings

Savings in output hauling costs

Savings in input hauling costs
Savings in travel time for commuters

Savings in New Cultivated Agri. Land

Savings in Reduction of Post-harvest
losses
Total Incremental Benefits

275,545

Net Incremental Benefits

Economic NPV @15% (Php'000)
EIRR
BCR

NPV of Project Benefits

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

85

35
3.
3
8
19
,7
16
.0
6,
18
7.
8
13
1.
8
61
1.
8
19
,5
89
.5
16
,3
71
.9
62
,6
09
62
,2
55

353.3

353.3

10

19,716.0

19,716.0

6,187.8

6,187.8

131.8

131.8

629.6

649.4

27,351.9

38,147.4

16,371.9

16,371.9

70,389

81,204

70,036

80,851

NPV of Project Costs

Annex Table I9. Continued

Graveling of farm-to-market road
Inputs (Php'000)
Investment
Total economic value
Total (Investment)
Operating
Maintenance
Total (Operating)
Total Inputs
Incremental Benefits (Php'000)
VOC savings
Savings in output hauling costs
Savings in input hauling costs
Savings in travel time for commuters
Savings in New Cultivated Agri. Land
Savings in Reduction of Post-harvest losses
Total Incremental Benefits

11

13

14

15

1
6

17

18

19

20

calc

353.3
353.3
353.3

353.3
353.3
353.3

353.3
353.3
353.3

353.3
353.3
353.3

3
53
53
5

353.3
353.3
353.3

565.3
565.3
565.3

353.3
353.3
353.3

353.3
353.3
353.3

Unit

11
20,103.1
6,187.8
131.8
669.9
53,154.1
16,371.9
96,619

13
20,103.1
6,187.8
131.8
712.7
102,971.9
16,371.9
146,479

14
20,103.1
6,187.8
131.8
735.2
143,194.9
16,371.9
186,725

15
20,189.2
6,187.8
131.8
758.3
199,036.5
16,371.9
242,675

1
62
06
,1
73
82
71
63
2

17
20,585.6
6,187.8
131.8
806.9
384,104.4
16,371.9
428,188

18
20,585.6
6,187.8
131.8
832.3
533,344.1
16,371.9
577,453

19
20,585.6
6,187.8
131.8
858.5
740,384.8
16,371.9
784,520

20
20,673.7
6,187.8
131.8
885.6
1,027,577.3
16,371.9
1,071,828

96,265

146,126

186,371

242,322

3
2

427,835

576,888

784,167

1,071,475

Unit
calc

Net Incremental Benefits

Economic NPV @15% (Php'000)

346,265.72

EIRR

24.75%

BCR

2.38

NPV of Project Benefits

624,170.8

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

86

261,786.2

NPV of Project Costs

Annex Table I10a. Sensitivity Analysis

Scenarios

49,636

57,
01
3

10

Incremental Benefits

base scenario

benefits +10%
benefits +20%
benefits +30%
benefits -10%
benefits -20%
benefits -30%
benefits delayed 1 year
benefit delayed 2 years
No benefits of new agr.land

45,072

45,983

47,476

Project Costs
base scenario
costs +10%
costs +20%
costs +50%
benefits delayed 1 year
benefit delayed 2 years

0
0

Net Incremental Benefits

base scenario
costs +10%
costs +20%
costs +50%

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

87

62,609

70,389

81,204

benefits +10%
benefits +20%
benefits + 30%
benefits -10%
benefits -20%
benefits -30%
benefits delayed 1 year
benefits delayed 2 years
No benefits of new agr.land
a\ Discount rate

15%

Annex Table I10a. Continued

Scenario
s
Increment
al
Benefits
base
scenario
benefits
+10%
benefits
+20%
benefits
+30%
benefits
-10%
benefits
-20%
benefits
-30%
benefits
delayed 1
year
benefit
delayed 2
years
No
benefits of
new
agr.land

11

13

14

15

16

18

19

20

Presen
t Value
(PV)

96,619

146,479

186,72
5

242,67
5

320,604

577,453

784,520

1,071,82
8

#N/A

Project

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

88

Costs
base
scenario
costs
+10%
costs
+20%
costs
+50%
benefits
delayed 1
year
benefit
delayed 2
years
Net
Increment
al
Benefits
base
scenario
costs
+10%
costs
+20%
costs
+50%
benefits
+10%
benefits
+20%
benefits +
30%
benefits
-10%
benefits
-20%
benefits
-30%
benefits
delayed 1
year
benefits
delayed 2
years

EIRR

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

89

ENP
V a/

BCR

No
benefits of
new
agr.land
a\
Discount
rate

Annex Table I10b. Sensitivity Analysis (20-year period)

Costs Increase
Sensitivity Analysis
( 20-year period)

Increase of Benefits

Delay of Benefits
-

+10%

+20
%

+10%

+20
%

-10%

EIRR
ENPV (000'PhP)
BCR

Construction/Rehabilitation/Concreting of Bayan-Mahaba-San Isidro Farm to Market Road

90

-20%

3
0
%

1 year

2 years