Services for the Feasibility Study for the Laguna Lakeshore Expressway- Dike Project (y

FINAL REPORTFeasibility Study of Laguna Lakeshore Expressway- Dike (LLEDP) EXECUTIVE SUMMARY PROJECT DESCRIPTION Upon the request of the Department of Public Works and Highways (DPWH), the United States Agency for International Development (USAID), thru the “Advancing Philippine Competitiveness (COMPETE) Project”, engaged the Consultant to provide Services for the Feasibility Study for the Laguna Lakeshore Expressway- Dike Project (hereinafter called the Project). The Project aims to provide a high-standard highway-cum-dike that will facilitate traffic flow and mitigate flooding in the western coastal communities along Laguna Lake, from Bicutan/Taguig in Metro Manila through Calamba to Los Baños in Laguna. The Project is intended to be implemented under a Public-Private Partnership (PPP) scheme. The proposed Laguna Lakeshore Expressway- Dike Project consists of the following components: 1. Laguna Lakeshore Expressway- Dike The Laguna Lakeshore Expressway Dike is a high speed highway facility that will run from the proposed terminus of C6 Phase 2 Expressway Project in Taguig until it reaches the area of Los Banos in Laguna. It has a length of 47.00 kilometers, to be installed at an average of 500 meters from the shoreline of Laguna Lake, farthest along the cove areas while maintaining an almost straight alignment and complying with high standard highway specifications. Further, the proposed expressway will be used to integrate a flood control system across the flood prone areas located along the shoreland of Laguna Lake. The flood control system consists of the expressway dike itself, which will serve as a barrier to deter the rising water of Laguna Lake from flowing onto the shoreland areas and a pumping system that will maintain the level of water along the shoreland at its lowest and keep it flood free even during heavy rains and strong typhoons. 2. Reclamation Component The proposed reclamation component of the Project is to finance the construction of the entire project through proceeds from the sale of part of the reclaimed lands. This project component is an amended reclamation proposal which was previously subjected to detailed feasibility study by then Public Estates Authority (PEA) and now Philippine Reclamation Authority or PRA. The proposed reclamation component will have an initial 300 hectares up to maximum of 700 hectares coverage, as indicated by the results of the feasibility study stage. SOCIO-ECONOMIC ANALYSIS The government is optimistic that the country will continue to have brighter economic prospects for the year 2014. This would require concerted efforts from various government agencies and LGU officials. The NSCB (Agri-business sector) listed down several recommendations to reduce poverty and increase competitiveness of the country’s economy such as: (1) creation of at least 2 millions of jobs in the agriculture sector; (2) rehabilitation/repair of existing irrigation system and other infrastructure facilities; (3) promotion of off-and-non-farm enterprises including agri-processing in the agribusiness lands to increase and stabilize rural income. ADB projected that the country’s GDP is estimated to recover to 4.8% in 2012 and 5.0% in 2013 (after 3.7% in 2011). In ADB’s report released on 11 April 2012, it stated that “increased public spending, investment, and private consumption will lift growth in the Philippines over the next 2 JF Cancio & Associates in Assoc. with FDCCE&A, CO. & PROCONSULT ENGINEERS, CO. 1-1 and households will have the brighter prospects for increase in income.6 million tourist arrivals in the country by 2013.00 per kilometer is presented in the following table. It has also vast tracts of land that could be utilized for expansion of industrial/business centers. Projected Traffic Volume Segment Bicutan to San Pedro IC San Pedro to Binan IC JF Cancio & Associates in Assoc. The target of the DOT is 4. long-standing structural weaknesses will remain an obstacle to reaching the government’s 7-8% economic growth target”. Increase of tourist arrivals is expected in the country in 2013 and onwards. TRAFFIC ANALYSIS The results of the traffic analysis undertaken for the Project suggest that the implementation of the Proposed Projects will exhibit promising and encouraging results in terms of traffic diversion. the tourism industry and its accompanying and related business activities could grow and spread even to the remote communities of the Project areas. international travelers will nearly double in size in the succeeding years. Small and medium-scale businesses in the region/provinces will increase once the proposed projects are implemented and completed. and brighter economic growth in the areas is one of the key factors that could attract people from adjacent areas in Laguna or NCR to move to Laguna province. CO. The United Nations World Tourism Organization (UNWTO) projected that. However. traffic congestion and existing insufficient traffic network system could be resolved effectively.2 . & PROCONSULT ENGINEERS. The projected traffic volume for the Project for the year 2020 at toll rate of PhP7. Migration is fast in the project areas. it is expected that demands for housing units would be higher. With all these positive socio-economic indicators observed. The results of the traffic analysis indicate that the traffic volume along the proposed Project Area will increase significantly with varying magnitude as the proposed line traverses from its interface with the Proposed C6 Tollway in Bicutan up to its terminus in Los Baňos.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT years. CO. It is also expected that there will be an increase in subdivisions or residential communities existing in the project areas or real estate business in the project areas due to improved road networks. while flooding. The CALABARZON region has great potentials to boost its economic growth and sustain its efforts in generating more employment opportunities in the succeeding years due to presence of industrial companies. and other business establishments. Vehicle Class 1 Class 2 Class 3 Total Class 1 Class 2 Year 2020 33976 9250 3853 47080 39301 10700 ES . Considering the rapid population growth in the project areas due to presence of industrial estates and commercial/business centers. the development and implementation of the proposed PPP Projects is worthy of consideration. generation and development since the alignments of the toll way sections will traverse an area where land expansion for mixed development could be possible. The DOT is optimistic that the number of tourist arrivals in the country will continue to steadily increase in 2014. More commercial establishments will be established. Increase in business investors and boost in tourism industry in the Project Area will redound to providing more employment opportunities for households. with the concerted efforts that it has been undertaking with other government agencies and private sector. Laguna. with FDCCE&A. Along the Manila South Road or National Road. Without the Project With the Project % Impact Alabang to Susana Heights 183908 161645 -12% Susana Heights to Southwoods 181415 162439 -10% Southwoods to Carmona 154999 132700 -14% Carmona to Greenfields 150269 130885 -13% Greenfields to Sta. CO.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT Class 3 Total Class 1 Class 2 Class 3 Total Class 1 Class 2 Class 3 Total Class 1 Class 2 Class 3 Total Binan IC to Sta. Rosa while a remarkable 40% or around 19. Rosa (CALAX) Sta. CO. Along the Calamba to Los Baňos Expressway. all in Laguna. Rosa IC to Calamba IC Calamba to Los Banos 4457 54457 21003 5718 2382 29103 9788 2665 1110 13562 16422 4471 1863 22756 From the results of the traffic projection and considering the DPWH standard to require widening once the traffic volume to capacity ratio reaches 0.000 vpd reduction in traffic volume along the existing National Road. there will be a significant 47% or around 23. Tomas 83239 81603 -2% Alabang to San Pedro 89145 72410 -19% San Pedro to Binan 66477 52338 -21% Binan to Sta. Rosa 112974 103018 -9% Sta. ES . Cruz – Famy Road Calamba to Los Baňos There will be an average of 12% or around 20.3 . Rosa to Eton 152236 145378 -5% Eton to Cabuyao 138770 133682 -4% Cabuyao to Canlubang 136499 133682 -2% Canlubang to Calamba 133146 132827 0% Calamba to Sto.000 vpd reductions in traffic volume along the South Luzon Expressway from Alabang to Greenfields area in Mamplasan.000 hectares of land at Canlubang and Silang areas.000 vpd reduction in traffic volume along the segment. With the planned development of around 7. the Project will require six (6) lanes ultimate development. Rosa to Cabuyao. & PROCONSULT ENGINEERS. Rosa 42899 36789 -14% Sta.6. Sta. Rosa to Cabuyao 47204 28389 -40% Cabuyao to Canlubang 53136 50124 -6% Canlubang to Calamba 41863 38279 -9% 48030 25637 -47% Road Section South Luzon Expressway Manila South Road Calamba-Sta. Biňan while there will be an average of 4% or 2000 vpd reduction from Biňan to Calamba.000 vpd from Alabang to Sta. average traffic volume reduction is 18% or around 15. the developers have indicated the need to expand the South Luzon Expressway from three (3) lanes to JF Cancio & Associates in Assoc. The Table below shows the projected traffic volumes along the different segments of the existing roadways located within the Project Influence Area and those of along the Proposed PPP Projects. with FDCCE&A. TECHNICAL DUE DILIGENCE The technical due diligence undertaken for the Project included the conduct of supplemental topographic and bathymetric surveys and soil investigations. the locations of potential source of fill materials have yet to be exploited such that these materials are still available for use in the proposed reclamation project. The topographic and bathymetric surveys were undertaken to establish the location of the proposed expressway dike in terms of horizontal and vertical alignment along the lake offshore and shoreland areas while the soil investigation was conducted to determine the capacity of the existing soil formation to accommodate future horizontal and vertical developments.4 . From the results of the soils investigations and from those that were undertaken during the business case studies. & PROCONSULT ENGINEERS. The LLED. From the results of the technical due diligence supported by field surveys and investigations. Construction will take six (6) years after a design period of one (1) year.9 Billion while the expressway. This will result in a maximum of 0.FINAL REPORT Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project four (4) lanes each direction. preferably bored piles with length from 20 meters to 30 meters. ES . both at 2013 prices.5 between the shoreland and expressway dike.dike to include the flood control system will cost PhP 64. rest areas and appurtenant traffic safety devices. CO. The flood control system was designed at a 60. the results of previous comprehensive soil exploration in Year 1991 were referred to inasmuch as the scope covered almost the entire Laguna Lake area. In identifying material sources for the construction of the proposed project components specifically the fill materials for the reclamation development and expressway.20 meters at 100 Year return period. the system of sourcing materials from the Lake area is the most economical as compared to transporting them by trucks from inland sources as the latter will eventually damage existing pavements and create traffic congestion along the routes. CO. Interchanges and link roads. on the other hand.dike and flood control system reveal that the height of the lake water will increase by 0. These observations will require the provision of sixteen (16) waterway openings where sluice gates will be installed while eight (8) regulation ponds will be provided beside the pump stations along the lakeshore expressway dike. BUSINESS DEVELOPMENT OPTIONS Research made on the current real property trend in Metro Manila indicates encouraging results. The hydrologic analysis of the Project area as well the hydraulic analysis and design of the required structures for the expressway.01 meter if the proposed reclamation development and expressway dike will be installed inside the Laguna Lake area while maintaining the Lake water level with pumping facilities at Elev. the other components of the expressway dike were developed to include the pavement structure component.20 meters or one (1) meter above the identified maximum flood level of 14. 12. The proposed reclamation development will entail a project cost of PhP 57. It is intended that all materials will be sourced from the vicinity of the Project area preferably within the Lake to minimize disturbance to communities that will be affected by the transport of materials which could come from other areas. As of the moment. the foundation system for the vertical structures and waterway and expressway travelway structures should be installed with piles. will serve proposed land development along its corridor.dike. with FDCCE&A.08meter increase in the level of the Lake water. it was estimated that around 220 million cubic meters of sands and fill materials exist along the areas identified. Furthermore. Interviews with large real estate developers also reveal positive results as far as the market trend on JF Cancio & Associates in Assoc.year return period in accordance with the Master Plan for Flood Control and Management in Metro Manila while the reclamation development and expressway dike components were designed with a minimum finished grade elevation of 15.9 Billion. The previous material source exploration indicated positive results and from the findings. ECONOMIC EVALUATION Road infrastructure projects.0 has. & PROCONSULT ENGINEERS. the current total LLED gross reclamation area of 700. The RROWs strive to maximize lot frontages or face the esplanades across and along the water edge. CO.. CO. ES . developers. each of which shall be of approximately one hundred hectares (100.000. 3. The 700. This includes stimulation of inter-regional development. business/ office/ commercial. To initially gauge the acceptability of the proposed project. With continuous population growth as well as continuing growth in the per capita income buoyed by increasing overseas employment and remittance. While it is desirous for the intended 700. The LLED Reclamation structure will be a combination of geometric and curvilinear RROW and pedestrian corridor patterns linking the various LLED Reclamation development clusters.0 has. The proposed project is envisioned as a high end development similar to the Bonifacio Global City and Makati CBD such that the lots to be generated by the land development will be offered at an initial selling price of PhP 55. two (2) islands for Taguig City. there are. marketability and environmental aspects. savings in JF Cancio & Associates in Assoc. The continuous rise in real estate development could be attributed to the steady expansion of the Philippine economy despite of damages sustained by some parts of the country due to severe climatic phenomenon and other natural disasters that have occurred in the country recently. a preliminary market sounding was undertaken with a number of potential investors.00 per square meter.0 has. At least four (4) main bridges.5 . gross reclamation area is to be approved by the LLDA. the Project will face some serious and tough challenges during development and implementation stages. to wit: 1.or transit-oriented developments. the proposed LLED Reclamation landform shall consist of seven (7) reclaimed islands.e. First of its kind. such as the one being analyzed. toll operators. excluding possible outdoor mall bridges (solely for pedestrians) shall link the 5 islands. which is considered as environmentally critical location and being administered by a number of local government officials with differing opinions and perspectives.000. There were reclamation projects implemented around the country but mostly located near the seashore. likewise reservations expressed in terms of technical. and leisure. high-density residential. recreational and selected indoor/ outdoor recreational or entertainment facilities. Based on its location and development in the Project’s vicinity. a pioneering project around an existing lake. which when subjected to financial analysis would produce encouraging results for the prospective developers to consider. transportation.00 to 75. reduction in traffic congestion. increase in real estate demand could be anticipated. 2. with FDCCE&A. yield a multitude of benefits to the users of both the new and the existing road network which cannot be quantified in the financial analysis.e.FINAL REPORT Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project real estate development and selling are concerned. The curvilinear road system is preferred to a gridiron development pattern to create better vistas and variegated viewing experiences of both the remaining natural and the proposed built environments. LLED reclamation development not to directly compete with other large developments in the MMA. the following basic types of development must be fully planned for (and possibly be designated as the primary development magnets or centerpieces).) in surface area and located within distinct city waters i. A ferry terminal can be introduced in the island at Muntinlupa City which shall host the main CBD. must fully comply with pre-set LLDA conditions.0 has. but that can still be increased if it fulfills the requirements set by the LLDA in consideration of possible impact areas i. and financial institutions The results of the preliminary market sounding indicate that while the proposed development of the reclamation project is acceptable from the viewpoint of the prospective proponents and investors. one (1) island for Parañaque City and four (4) islands for Muntinlupa City. 4. Construction supervision 4. The analysis employs the with. These economic benefits are provided in terms of the value-added from the productivity of the new land created by the reclamation (considering the schedule of sales of the reclaimed land (initially at PhP 55.830 2.473 Reclamation 49. The expressway-dike was evaluated independently (without the reclamation component) and the results of the evaluation suggest that the expressway-dike by itself is economically viable with an EIRR of 15.146 2. Financial investments and operating costs are converted into economic values by excluding transfer payments such as taxes and applying a shadow price to all foreign exchange components and to the cost of labor.623 56.345 1. the expresswaydike and the reclamation component. JF Cancio & Associates in Assoc.443 2.1.20%. project is considered economically viable with an EIRR of 27.007 million per year and an NPV of PhP 20. The total economic cost of the project is estimated at PhP 121. the breakdown of which is presented by Table 6. with FDCCE&A.199 million).017 million including indirect benefits).Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT vehicle operating expense.00 base toll when the project is completed. The results of the evaluation further indicates.and without-the-project approach. savings in travel time. The computation used the traffic forecast using PhP7. Project Construction 2.502 Total 105. of PhP5. The Project also includes a flood control component which is designed to reduce if not to eliminate flooding within low-lying areas close to the Laguna Lake. or a Present Value of PhP 10. & PROCONSULT ENGINEERS.1: Total Economic Cost. Table 6. the Present Value of the yearly land productivity values is PhP 118.484 1. likewise due to faster travel speeds.543 2. In PhP Million Cost Items 1.825 million). Agency supervision 6.289 5. CO. and (b) increase in land productivity in the affected area due to its protection from flooding (estimated at about PhP 31. Detailed Design 3. Independent consultant 5. improvement in traffic safety and savings due to avoided flooding. economic benefits will also be generated in the form of (a) reduction in flood damages on properties (estimated at PhP 6.974 The main economic benefits from the Project will be in the form of (a) reductions in vehicle operating costs (expressed in Net Present Value.154 65. of PhP8.345 897 1.154 121. The economic evaluation used is in accordance with the methodology for economic feasibility studies for road infrastructure projects of the Philippine Government.6 .071 million) due to faster travel speeds and (b) savings in travel time (expressed in Net Present Value. The economic benefit for the project was computed based on 2013 base and constant prices.830 1.484 990 143 2.886 1.000 per square meter) over the 15-year period.200 million at the start of the Project operation period.820 2.145 1.974 million. Land Acquisition Grand Total Expressway-Dike 56.398 1. ES . The Reclamation Component will provide the land spaces which will generate significant benefits to the regional and national economy. Physical Contingency 7. that when taken as a whole project.20%. The project evaluation period considered is thirty (30) years. Due to the flood control component of the Project. CO. The economic internal rate of return (EIRR) is the principal quantitative tool used for measuring the project’s economic feasibility and is complemented by the net present value (NPV) of the project and the benefit-cost ratio.653 million). Marketing cost is assumed to be at 10% of sales.786 annually.6% with NPV of PhP 24. revenues from the land reclamation component will then mainly be generated from land sales. For the reclamation component. Aside from this. which is the usual current practice. These costs are first estimated in 2013 prices and are converted to current prices by assuming an annual inflation rate of 5%. On the other hand. Revenues from expressway dike operation will mainly be generated from toll fees.00% EIRR. as well as allowances for price increase due to inflation. This includes right. These cost components are expected to be financed by the private sector.369 billion. the equity IRR is 32. The project is considered financially viable if its FIRR is at least equal to the cost of capital used to implement it. which will start at PhP 55. the LLEDP would still remain economically feasible at 19. which correspond to PhP 7. The project has both operating and maintenance costs and non-operating expenses. until the lot price reaches four times its original value in 2033 –PhP 220. particularly under the Build-Transfer-Operate (BTO) arrangement.92 Billion. the Project equity IRR is 19. ES . Operating and maintenance costs for the Expressway Dike include the cost of personnel services. repair and maintenance of the expressway. administrative and other miscellaneous expenses. The private funds will be sourced from investors’ equity and from borrowings. while transfer cost is estimated at 7% of sales. These costs are first estimated in 2013 prices and are converted to current prices by assuming an annual inflation rate of 5%. JF Cancio & Associates in Assoc. based on the result on the results of the market study conducted for the Project. start of operation. These are calculated based on projected vehicle traffic volumes and proposed toll rates. the project’s financial viability is measured by its computed financial internal rate of return (FIRR). other sources of revenues will be from commercial areas that will be made available for food and service concessioners. These amounts incorporate cost of physical and price contingencies. the Equity IRR is 18. which shows that earnings from this component could support the development works of the Expressway Dike.of. excluding 50% of the cost of the Independent Consultant which will be financed by the Government. the operating and maintenance costs include the marketing cost and transfer cost. The evaluation is anchored on the premise that the project will be implemented and operated through a PPP scheme.93%. with an assumed equity-loan mix of 30%-70%.000. The estimated investment requirement for the expressway-dike is PhP 83. with FDCCE&A. Evaluating the Project as a whole.000 per square meter but expected to increase by about Php11. CO.FINAL REPORT Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project Sensitivity tests performed on the Project reveal that even at the worst scenario of 20% increase in costs and a simultaneous 20% decrease in benefits. which suggests that the implementation of the proposed Project will not be financially viable unless financial support is provided. CO.7 .Dike component alone indicate a low equity IRR of 7. which incorporates the cost of transferring land titles. the cost of utilities.95%.624 billion. & PROCONSULT ENGINEERS. Costs and revenues used in the calculation of the FIRR are in current prices for them to be comparable to the cost of capital. Considering Concessionaire and Government’s investment. On the other hand.way (ROW) acquisition costs and allowances for price increase due to inflation. The computed FIRR will indicate the commercial viability of the project and will specify whether or not the project needs government financial support. The results of the financial evaluation performed for the proposed Expressway. also expressed in current prices. floodgates and inland channel. the estimated total investment requirement for the land reclamation component of the project is PhP 74.04%. FINANCIAL EVALUATION As a revenue-generating public sector project.00 per kilometer for Class 1 vehicles in Year 2020 inflated at the rate of 5% per year until Year 2022. For the reclamation component. • Sieche warnings.214 ₱136. • Analysis of RSD including interpretation of JF Cancio & Associates in Assoc.96% 91. nipa. with assumed water rights value) Concessionaire National Government ₱10.8 .714. • Review LSD which may indicate past land subsidence. • Identification of refuge areas.284 ₱5. Long-term. • Construction of earthquake resilient and erosion resilient shoreline wall and or revetments.63% 19. and records relevant to the site and area's geology. history of land subsidence and fissure formation. Negative Significant will soil by pile and will Mitigation/Enhancement Measures • Review available historic water-level data and subsurface units from well driller’s logs for nearby water wells. • Designation of escape routes.g. with FDCCE&A. • Development of highly resilient coastal protection facilities.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT A stakeholders’ analysis was performed and the results indicate that each stakeholder will have high Equity IRR and NPV as presented hereafter. • Community Preparedness for Earthquake Resiliency.075 18. and • Raise Disaster Awareness (Practice-PracticePractice) • Review various literatures. Negative Significant Long-term.111. hydrogeology/hydrology. CO.946.880. Stakeholders’ Analysis Net Present Value (Net in Cash and Cash Equivalent) Equity IRR LLDA/PRA (net of remittance to National Treasury. CO. & PROCONSULT ENGINEERS.95% 56.777. • Identification of refuge structures (both private and public). ES .76% LGUs SOCIAL AND ENVIRONMENTAL IMPACT ASSESSMENT Environmental concerns that were observed during the surveys and investigations of the Project area g and the proposed mitigating and enhancement measures are presented hereafter.277. • Establishment/propagation of "green belt" in the lake side of the project corridor by introducing swamp vegetation e. • Review available maintenance records of nearby wells for signs of subsidence related damage. Negative Significant • Undertake a site specific Probabilistic Seismic Hazard Assessment (PSHA) as part of the engineering design study to estimate the Maximum Considered Earthquake (MCE) and the Design Basis Earthquake (DBE) Short-term. maps. marsh etc..079.533 ₱9.235. Pre-Construction and Construction Phases Impacts Geology Ground Shaking Possible occurrence of high magnitude earthquake due to close proximity of known active earthquake generators such as the WVF and the EVF Seiche Possible occurrence of seiche which can lead to flooding at the impacted site or wave force may cause erosion and damage to shoreline structures Ground Subsidence Liquefaction High intensity earthquakes cause ground subsidence Potential occurrence of liquefaction triggered rhythmic pounding during driving Geology Ground Subsidence Liquefaction High intensity earthquakes cause ground subsidence and Duration and Type of Impacts Intensity of Impacts Long-term. Negative Significant • Formulation of earthquake/seiche disaster preparedness plan. and • Undertake subsurface investigation. and the lime/cement deep mixing method. and the lime/cement deep mixing method. ES . granular or sand compaction piles. & PROCONSULT ENGINEERS. • Complete recovery rates of soft bottom benthic communities are partly a function of habitat type and depth and could be attained within a year or two Short-term. Ø provision of settling basin. with FDCCE&A. faults or other geologic structures. CO. deformation of engineered structures due to land subsidence or earth fissures both on and beyond the site as appropriate. Above ground soil improvement techniques shall include MSE embankments. Negative (Localized) Minimal • Use of geotextile silt screens/curtains is highly recommended minimize effect of among smaller fish species and macro invertebrate JF Cancio & Associates in Assoc. Below ground soil improvement techniques include but not limited to: vertical drains. geomorphic features and surfaces.reclamation/landfilling and piling activities may not be carried out 24 hours a day to allow the settling of suspended sediment particles so that TSS levels would remain acceptable (lower TSS concentrations).9 . piling and micro piling. Adoption of best engineering practices and mitigation measures/structures to include the following is recommended: Ø choice of appropriate reclamation procedures. Ø proper implementation of existing mandated environmental rules and regulations and preservation requirements / guidelines. Fishes and Invertebrates Increased siltation and turbidity would cause adult fish to Mitigation/Enhancement Measures aerial photographs for terrain features relevant to subsidence and fissures. fissures. Negative Adverse/ Significant • Unavoidable but temporary in nature. sand compaction piles. replacement of unsuitable material including sand compaction piles. and • Construction activities must be monitored vigorously and comprehensively Short-term. Ø full construction of revetment or containment structure prior to filling. • Use of geotextile silt screens/curtains to reduce turbidity Short-term.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT Impacts Duration and Type of Impacts Intensity of Impacts Potential occurrence of soil liquefaction triggered by rhythmic pounding during pile driving Water Quality Increased siltation / water column turbidity Freshwater Ecology Plankton communities Increase in turbidity in the water column would slightly increase the mortality rates among fish larvae/juveniles including other planktonic organisms Freshwater Ecology Soft Bottom Benthic Communities Complete smothering and burying of all benthic organisms at the footprint of the expressway road dike project and reclamation area. Adoption of best engineering practices and mitigation measures/structures is highly recommended. sand drains and preloading Long-term. Negative Significant • This impact is expected to last until the duration of the construction period. Benthic organisms can easily re-colonize in undisturbed and un-reclaimed areas. Negative Significant • This impact is expected to last in the duration of the construction period. vertical drains. and Ø use of geotextile silt screens/curtains • Work gap. Ø construction of a wall to protect the project from wave action and siltation. CO. rod (vibro) compaction. • Undertake surface investigation to include mapping of geologic and soil units. • A required safety exclusion zone along the construction area will be recommended to create a fishing ground to the affected fisher folks. • Construction spoils will be regularly hauled and disposed to areas duly-approved by the DENR and/or concerned LGUs. stripping. Negative Negligible Fish Pens and Fish Cages Some fishpens and fish cages are probably placed along the proposed route of the dike expressway project and they are likely to be affected by the construction activities Short-tern. and • Delivery and hauling trucks will be provided with tarpaulin or sack material to minimize dust re-suspension • PMS of construction equipment. and machineries must be strictly complied with. Negative Minimal Protected Area/Fish Sanctuary Possible loss/destruction and/or damage the designated protected area/fish sanctuary at Brgy. Bucaland Pansol. • Quarterly SO2 and NO2 sampling at air pollution sensitive areas will be conducted during the pre-construction and construction phases of the project Short-term. and machineries Short-term. • Temporary stockpiles of un-recycled materials and construction spoils will be covered with tarpaulin or sack materials to prevent resuspension of particulate matters. Affected fisher folks can temporarily move to neighbouring fishing grounds to continue their activities (with due approval from FARMC of neighbouring cities/municipality) • A detailed physical inventory of these aquaculture structures along the route of the proposed expressway dike project is recommended. earthmoving and other related activities Long-term. Negative Minimal • Exposed and cleared construction areas will be regularly sprayed with water to minimize dust re-suspension. with FDCCE&A. CO. Negative Significant • Location/distance of the proposed expressway dike project must be at least 1 km away from the shoreline of Brgy. particularly at dust pollution sensitive receptor areas will be strictly enforced. snail.10 . • A 20 kph speed limit along the construction areas. and • Daily routine check-up of construction vehicles. Negative Minimal Possible increase in the concentration levels of SO2 and NO2 due to exhaust gas emissions from various construction vehicles. Bucaland Pansol(Calamba City) due to the likely encroachment of the proposed road dike route Air Quality Possible increase in the level of particulate matter (PM10) at the construction sites and adjacent areas. equipment. Smaller species that are unable to migrate would chronically exposed to high turbidity may suffocate as their gills become clogged with sediments Fish Capture Fishery Disruption of fishing activities on some fisherfolks Duration and Type of Impacts Intensity of Impacts Mitigation/Enhancement Measures populations (clam. Negative Minimal Noise Level and Vibration Possible increase in the noise level in the area due to operation of various construction equipment • The required safety exclusion zone will not reduce their income since they can move to the adjacent fishing ground. Calamba City Short-term. and • Since the construction will be in phases. shrimp) Short-term. and vehicles will be strictly complied with to ensure these are in good working condition at all times. & PROCONSULT ENGINEERS. • Relocation of the affected fish cages at belts established the LLDA • Noise suppressors will be installed to construction equipment and machineries whenever necessary to maintain noise generated JF Cancio & Associates in Assoc. machineries. ES . particularly at dust pollution sensitive receptors areas due to bulldozing. equipment. CO.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT Impacts migrate to other suitable areas. and • PMS of the construction equipment and machineries will be strictly complied with to ensure that these are in good working conditions at all times Long-term. 8974 • To be clarified with LLDA.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT Impacts Duration and Type of Impacts Intensity of Impacts and machineries. CO. A.000 • Cash compensation at replacement cost as defined in the Implementing Rules and Regulations of R.000 • Provide in-City relocation to avoid disruption of livelihood activities and social networks • Assist the IS families access Community Mortgage Program (CMP) for the relocation house and lot IF VALUE OF STRUCTURE > P250. due to Section 4 of Board Resolution 283 Series of 2006. Negative High IF VALUE OF STRUCTURE ≤ P250. negative Low Short-term. • High noise generating construction activities will be undertaken during the daytime only to minimize noise disturbance to nearby residential and other noise sensitive receptors areas.11 . SECTOR: FISHER FOLKS. ES . which states that if the reclaimed area will be needed by the LLDA or the National Government or any of its instrumentality for a project with greater benefits/impacts. shall revert to LLDA. AND OTHER CATCH FISH SECTORS (Indirect) JF Cancio & Associates in Assoc. the ownership of the facilities/structures as well as the reclaimed area. Negative High Long-term. except those within titled property. Negative High • Carefully plan configuration of lot to be acquired so that remaining portion would still have high economic value Long-term. • Construction areas must be enclosed with metal sheets to contain noise within the site and maintain noise level at permissible limit. 8974 • Relocation of fish cages at LLDA specified sites FOR ILLEGAL/UNREGISTERED STRUCTURES: • Payment of fish cage structures at replacement cost as defined in the Implementing Rules and Regulations of R. & PROCONSULT ENGINEERS. STRUCTURE OWNERS (Direct) Loss of land to be acquired for widening of access roads going to and from the expressway dike Increase in value of remaining land due to advantage of frontage SECTOR: FISH CAGE OPERATORS (Direct) Loss of fish cage structures along the belt where expressway dike will be constructed Loss of income from fish cage operations during transition period from dismantling to relocation SECTOR: INFORMAL SETTLERS (Direct) Loss of residential structures of informal settlers occupying the lakeshore areas SECTOR: LESSEES OF SHORELAND AREAS (Direct) Loss of residential /commercial/ recreational structures of LLDA Lessees along the shoreland areas Mitigation/Enhancement Measures at permissible level. Negative Low • Payment of compensation at fair market values for land and at replacement cost for structures Long-term. A. with FDCCE&A. particularly at noise sensitive receptor areas The People SECTOR: LANDOWNER. CO. 8974 FOR LEGAL/REGISTERED STRUCTURES: • Careful planning and coordination between LLDA and Construction Contractors to achieve shortest possible transition period Long-term. A. negative High FOR LEGAL/REGISTERED STRUCTURES: • Payment of fish cage structures at replacement cost as defined in the Implementing Rules and Regulations of R. representatives from the Waste Management and Disposal Department and Health Office of the concerned LGUs. negative High • To prevent possible spread of communicable diseases due to abandoned domestic and solid wastes the Contractors/Sub-Contractors must ensure that: Ø All temporary sanitation facilities are completely and properly dismantled. or turbidity of water during after reclamation of land for dike.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT Impacts Loss of fishing grounds in the Taguig-Muntinblupa area due to the reclamation project The People Loss of income due to reclamation of land in Taguig and Muntinlupa Duration and Type of Impacts Long-term. but temporary. CO. with FDCCE&A. and Ø All domestic and solid wastes are properly disposed to disposal site/s duly approved by the concerned LGUs • A joint site inspection at all work sites must be conducted by the ESHO of the Contractors.12 . and barangay leaders of affected communities to ensure that all temporary sanitation facilities are completely dismantled and no domestic and solid wastes are abandoned Operational Phase Land Use and Classifications Informal Settlements Once the inland from Taguig to Muntinlupa. ES . High • Unavoidable. Negative Significant • Reclaim land from the MLLW shoreline.0 km distance from the fish sanctuary in Calamba SECTOR: FISHER FOLKS. the area would be prone to encroachment Long-term. High • Realignment of the expressway dike to maintain sanctuary in Calamba Negative at least 1. in between Taguig and Muntinlupa. JF Cancio & Associates in Assoc..g. & PROCONSULT ENGINEERS. which is roughly 120 ha (≈12 km x 100 m) dry up. Port shall be managed and operated by a Cooperative consisting of displaced fisher folks of Taguig and Muntinlupa • Formulation of Livelihood Restoration and Improvement Program as part of the Final Resettlement Action Plan (RAP) to be prepared after the Detailed Engineering Design Possible loss of. and do not leave a 100-m strip of inland channel. using trees as fence or barrier). AND OTHER CATCH FISH SECTORS (Indirect) Reduction of fish catch in the Long-term. priority in hiring during construction period • Formulation of Livelihood Restoration and Improvement Program as part of the Draft and Final Resettlement Action Plan (RAP) to be prepared • Commercial establishments to cater to needs of construction staff and crew must be open only to affected areas Demobilization / Decommissioning Phase The People Possible spread of communicable diseases due to abandoned domestic and solid wastes from the temporary sanitation facilities Short-term. Negative Intensity of Impacts High Long-term. • Fence the resulting 120 ha strip. or damage to fish Long-term. preferably utilizing green engineering technology (e. whichever construction comes first • For eligible and interested fisher folks. Clarity of water shallow portions of the lake due to Negative will return to normal after a few months. CO. Negative High Mitigation/Enhancement Measures FOR TAGUIG & MUNTINLUPA FISHER FOLKS: • Provision of alternative livelihood such as the construction of a fish port and cold storage facility. Title V – Public Works and Highways. Positive Significant • The embankment of the dike structure can act as artificial hard substrates that could attract colonization for a variety of aquatic life and provide shelter to a number of organisms. land reclamation and water resource development and other related or linked projects. Positive Significant • Regular inspection and maintenance of the flood control facilities installed must be undertaken to ensure optimum level of service Long-term. 813 October 17. flood control. The major agencies involved in the Project are as follows: 1. flood control and water resource development systems. 2. particularly Executive Order No. 1966.” except those specialized projects undertaken by Government corporate entities. Philippine Reclamation Authority In the subsequent issuance. which coincides with rough water conditions during this period making fishing difficult.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT Hydrology Reduced flooding along the western urban corridor of Laguna Lake Freshwater Ecology Fishes and Invertebrates Embankment structure of the of expressway dike which is made up of rock boulders will enhancement aquatic habitat in the lake Fish Capture Fishery Sustenance fishing operations during the lean months from November to February. Positive Significant Long-term. it was clarified that while the PEA is renamed the Philippine Reclamation Authority (PRA). ES . should LLDA wish to implement infrastructure facilities such as the project roads. DPWH DPWH. 380-A. thus.13 . by virtue of its mandate under the Administrative Code of 1987. 4850. as amended by PD No. The hard substrates will also provide food and protection for numerous and diverse aquatic organisms but will also serve as attachment or substrate for attached forms. 1084 (PEA Charter) as JF Cancio & Associates in Assoc. Laguna Lake Development Authority (LLDA) Under RA No. the PRA shall continue to perform the powers and functions of the PEA pursuant to PD No. these artificial hard structures will enhance the aquatic habitat in the lake • No enhancement measures recommended Long-term. & PROCONSULT ENGINEERS. maintenance or operation of infrastructure projects such as but not limited to “highways. 3. design. with FDCCE&A. will now be protected by the newly constructed expressway structure SECTOR: MAYNILAD (Indirect) Possible reduction in water circulation along inland channel which may cause decline in quality of water being utilized by MAYNILAD Long-term. 1975 LLDA has powers to successfully implement infrastructure projects by itself or through Public-PrivatePartnership. dated July 18. construction. CO. Negative High • Extend water intake structure up to portion of lake after the dike INSTITUTIONAL AND LEGAL ANALYSIS The institutional and legal analysis of the Project indicates the major agencies involved as well as possible institutional and legal arrangements for the successful implementation of the Project. CO. can undertake on its own the planning. Creating A Board for the Regulation thereof and For Other Purposes. including but not limited to the functions to reclaim land. Minimum Performance Standards and Specifications and the Concession Agreement).” PD No. operation and maintenance of infrastructure projects by the private sector. JF Cancio & Associates in Assoc. including the development of the road network and surface and the required safety structures along the entire length and area of the project road. the Project may have to secure loan financing or development assistance for certain project components.1112. 6957. Project Implementation Arrangements The Project may be implemented either directly by the national government through the DPWH and/or the LLDA and the PRA. Annex 10. to provide. operate and administer infrastructure facilities and services on the above mentioned reclaimed properties and to authorize through the rules of public bidding. While PD No. construction. 4. Implementation through the Public – Private – Partnership is allowed under RA 6957 as amended by R. Annex 10.” by authorizing the collection of toll fees for the use of certain public improvements. The law itself recognizes “the indispensable role of the private sector as the main engine for national growth and development and provide the most appropriate incentives to mobilize private resources for the purpose of financing the construction. implementation or regulation of infrastructure projects. Executive Order No. with supporting agreements with the Laguna Lake Development Authority (LLDA) and the Toll Regulatory Board (TRB).14 . and maintenance of infrastructure and development projects normally financed and undertaken by the Government. Instructions to Bidders. clarifying some basic concerns governing toll road projects under consideration. and Annex 10. 7718. “Authorized the Establishment of Toll Facilities on Public Improvements. estates and other forms of real property arising from reclamation. TRB and CMMTC (C6 Phase 2 proponent).4 for the Draft Transaction Documents (Invitation to Bid. and BOO or BT arrangement for the Reclamation Component. CO.A. or through Public-Private-Partnership or under a Joint Venture Arrangement. the Proposed Laguna Lakeshore Expressway Dike Project could be implemented as follows. 7718) and its Implementing Rules and Regulations (IRR). In particular.1 for draft Memorandum of Agreement among the DPWH. reclamation projects by other entities.2 for draft Memorandum of Agreement among the DPWH.FINAL REPORT Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project amended under Executive Order No.” Contractual Agreement Structure The Project under this Contract Package will be carried out within the PPP framework in accordance with the Build-Operate-Transfer (BOT) Law (Republic Act or RA No. and provided that. CO. which authorizes the financing. such as the dike/flood control structure and the road sub-base foundation. that would allow a reasonable rate of return on investments. Considering the limitations of the national government to fund the Project entirely through direct government appropriations. as amended by RA No. Toll Regulatory Board Presidential Decree No. and to encourage the private sector to finance viable aspects of the project most especially the reclamation component. & PROCONSULT ENGINEERS. No. will bid out and implement the Project using the BTO contractual arrangement or modality for the ExpresswayDike Component. manage and dispose of lands. LLDA and PRA. with FDCCE&A. buildings. Based on the mandate of each respective agency involved either in the development. the collection of toll fees and operation of toll facilities by the private sector should be loosely supervised and regulated in the public interest. 686 was issued on 19 December 1007.3 for draft Memorandum of Agreement between DPWH and TRB. 1112 provided TRB with a broad mandate as regards tollway projects. to develop. See Annex 10. 654. 1112 was intended “to attract private investment in the government’s infrastructure projects. the DPWH. operation. ES . a flood control system. it is highly recommended that the approval and implementation of the Proposed Laguna Lakeshore ExpresswayDike Project be given prior consideration to attain the desired objectives of the Project and reap its expected benefits at the soonest possible time. CO.15 . Project Implementation Structure OVERALL PROJECT EVALUATION The results of the feasibility study for the Proposed Laguna Lakeshore Expressway Dike reveal that with the expressway. with FDCCE&A.dike component alone. Aside from the funds required for its construction.Feasibility Study of Laguna Lakeshore Expressway Dike (LLED) Expressway Project FINAL REPORT Proposed Project Implementation Structure The chart depicts the Project Implementation Structure. the opportunity for the proposed Project for implementation has become apparent since the revenues that could be generated from the proposed reclamation development are sufficient to finance partly the construction of the Expressway Dike. the implementation of the proposed project will not be commercially viable due to the huge investment required and the fact that the Project will include a non-revenue generating facility. CO. With the positive indicators from the different disciplines of the feasibility study. the flood control facility requires funds for its operation and maintenance. with the integration of a reclamation component. JF Cancio & Associates in Assoc. including the main entities concerned and their responsibilities and relationships. & PROCONSULT ENGINEERS. On the other hand. ES .