Philippine Framework Plan
Philippine Framework Plan
PHILIPPINE TRANSPORT
INFRASTRUCTURE
DEVELOPMENT FRAMEWORK
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PLAN
Executive Summary
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prepared for
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October 2014
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Philippines Transport Infrastructure Development Framework Plan – Executive Summary
E.1.1 Introduction
Various transport-related agencies and local governments develop their respective transport
plans or strategies to address bottlenecks and improve outcomes in the transport sector.
However, to be able to bring a more focused or targeted intervention that is more inclusive,
these various strategies need to focus on establishing interconnectivity between key urban
growth centers and between lagging and fast-growing regions, and creating supporting
institutions that promote greater integration.
Upon the request of the National Economic and Development Authority, a Framework Plan was
developed to provide policy-makers with a strategic framework to help identify the transport
needs of the Philippines and guide in implementing an integrated, more coordinated approach
to establishing stronger transport infrastructure linkages to support the country’s inclusive
1
growth agenda. The Framework Plan was developed under the guidance of a vision and goals
(Figure ES.1) developed by stakeholders across the Philippines. This comprehensive vision can
be summarized as “Bringing us all closer together for prosperity.”
As the scope is nationwide, it is based on high-level, sketch-planning principles using the best
available data. The Framework Plan uses this strategic framework to then identify a
preliminary set of short- (2014-2016) and medium- to long-term (beyond 2016) policies,
1
This Executive Summary is submitted to the World Bank as part of the Philippine Transport
Infrastructure Development Framework Plan (Framework Plan). The Framework Plan is being prepared
by Cambridge Systematics, Inc. and its subconsultants (“consultant team”) on behalf of the National
Economic and Development Authority (NEDA), and is funded jointly by the World Bank (WB) and the
Australian Agency for International Development (AUSAID).
programs, and projects to support the development and realization of needed transportation
infrastructure in the Philippines. These recommendations are not intended to be detailed but
rather to highlight the key needs in the country and the types of priority projects to be
undertaken; more specific analysis of appropriate strategy alternatives (policy, program,
project strategies), and costs and impacts of those alternatives, could then be conducted at a
later stage.
The geographic focus of the Framework Plan includes all of the Philippines outside of Metro
Manila. This Framework Plan does not replicate the work being done by the Japan
International Cooperation Agency (JICA) for Metro Manila (the JICA study covers Metro Manila
with an approximate radius of 100 kilometers and is being conducted to evaluate specific
transport infrastructure projects for the Metro Manila area). Future improvements and needs
of transportation infrastructure to meet the demand for long-distance transport to and from
Metro Manila and to other urban/economic centers in the Philippines are considered;
nevertheless, national-level strategies recommended in this study affect all areas of
the Philippines.
The performance-based framework for planning and programming described in Figure ES.2
below is used as the guiding structure for the planning process developed in this plan. It starts
with the goals and objectives developed (as presented in Figure ES.1) through outreach.
Performance measures were then identified based on available data and relate back to the
goals and objectives. These measures help determine where issues and needs exist and which
strategies could best move the Philippines towards those goals. Eventually, specific targets
should be set for these measures as better data and tools are developed, and ongoing
monitoring of progress towards those targets should be instituted in an overall
planning process.
Allocating resources is the step in the process where decision-making takes place: this is
where strategies (i.e., projects, programs, and policies) are prioritized and programmed. The
flow chart below (Figure ES.3) presents how this process was applied for the Framework Plan.
Identifying and evaluating needs – and then strategies – relied on the outreach described
above, best practices, past plans, and a performance driven data analysis.
Selected performance measures, based on currently available data at a national level, guide
the identification of needs and the evaluation of solutions as shown in Table ES.1. These
performance measures are driven by the elements described above in Figure ES.3: data
analysis, international best practices, outreach/coordination, and stakeholder workshops. Data
on socioeconomic conditions, transport system conditions (for all modes), and demand were
collected and processed for application (illustrated in the following subsections). These were
fed into a geographic information system for data processing and visualization of several of
these performance measures. A simple travel demand model, predicting origin-destination
passenger and freight flows independent of mode, was also developed and utilized for
identifying needs. This model utilizes population and employment data by sector by province to
predict current and projected daily person trips and tonnage. These first elements of a travel
demand model also provide the seed for the development of a full travel demand model for the
Philippines in the future (see “Recommendations” section below).
Economic Vibrancy Demand versus Passenger and freight volumes on Needs or solutions
capacity roads, rail, at ports, and at that impact a
airports (domestic and specific facility.
international)
Volume/capacity (i.e., congestion)
on roads, rail, at ports, and at
Needs or solutions
airports
that impact a
Overall inter-province demand, specific facility
passenger and freight, current and within a corridor.
projected
The maps below summarize much of the information from which the performance measures
are derived to identify needs. These are explained in greater detail in the appendices of the
Draft Final Report.
Poverty. Mapping poverty data by region and province and reviewing the Philippine
Development Plan reveals that:
Regions with the highest share of poverty overall include Region V – Bicol, Region VIII –
Caraga, and the ARMM; specific provinces include Lanao del Sur, Maguindanao, and Camiguin;
Regions with the highest number of poor include Region V – Bicol, and both Regions VI and
VII in Western and Central Visayas, respectively; specific provinces include Zamboanga del
Sur, Cebu, and Pangasinan;
Bicol (southern Luzon) has over 45 percent of the population in poverty, and also has one
of the largest total populations and population densities (indicating both severity and
extent of poverty); and
The northern half of Mindanao, as a whole, has high poverty incidence and totals, along
with Central Visayas and Eastern Visayas.
These provinces and regions therefore rise to the top for this performance measure.
Employment. The Regions with the highest growth rates of employment between 2007
through 2011 included Regions I (Ilocos) and IV-B (Mimaropa). The regions with the highest
shares of national employment in 2011, and therefore highest priorities for this performance
measure, are:
Nationally, agriculture is the biggest employer at 30 percent of the workforce. Trade is the
largest employer in the NCR, and the NCR has a larger share of these workers than any other
region. Manufacturing is centered primarily around the two largest urban centers. The tourism
industry is strongest in NCR and IV-A (with 5.5 million persons accommodated per year).
Dominance of certain industries by region and province helps to guide the proper types of
investments, such as airports in high tourist areas and farm to market roads and ports in high
agricultural areas. Figures ES.4 to ES.7 present selected socioeconomic data for the Philippines.
Data on the national network show that there are many segments throughout Luzon, especially
in the NCR, with volume-to-capacity ratios of over 1.0, which are defined as roadways with
traffic volumes exceeding capacity and failing levels of service. Other roadways with high
volume-to-capacity ratios include circumferential roads on Bohol and northeastern Cebu as well
as portions of feeders to major port cities on Mindanao. In Central Visayas and Mindanao,
these highly congested corridors also pass through some of the most impoverished areas of
the country.
Many of the highest capacity facilities are in Metro Manila, including the National Capital
Region, Region III, and Region IV-A. Mindanao, conversely, has lower network coverage –
particularly in the hinterlands – and a disproportionately higher percentage of national roads
that are unpaved. Figures ES.8 to ES.11 present selected roadway network conditions data
representative of the Philippines.
Figure ES.11 Road Network Surface Type and Construction Age in 2011
Air cargo supports high value, time-sensitive trade and related industries (e.g., high-end
electronic components). Cargo handling is focused at several airports, with smaller volumes at
several others. Manila is the key national and international gateway for air freight. NAIA
handles the largest share in the country, Clark has cargo operations, and Subic has capacity
for cargo pending final plans for the airport. Cebu and Davao serve as smaller air cargo hubs.
Bacolod, Iloilo, and Laguindingan also handle smaller amounts of cargo.
Maritime Ports. Many variables can explain the extent to which ports are utilized. Together,
port demand (as measured by port calls) and total cargo tons illustrate the freight demand at
individual ports. The map below illustrates the relationship between the utilization of individual
ports and capacity using a level of service ranking of over capacity, near capacity, and under
capacity. Many of the major ports in the Philippines, including Manila’s North and South
Harbors, and its container port, are considered over capacity, as are the ports in Davao, Cebu,
Iloilo, Cagayan de Oro, and Zamboanga City.
Due to data limitations, there is limited ability to conduct network analysis of ports and
landside access, especially of the local roads to support the port service area. However, many
of the country’s largest and most critical ports are located in congested urban areas without
any high capacity road or rail access. Figures ES.12 to ES.15 present selected airport and port
condition data representative of the Philippines.
Numerous needs were identified through the processes described above in Figure 3. While
there is much overlap in the relationships of these needs, they can be categorized according to
“root issues” or “needs” shown in the Tables ES.2 and ES.3 below. The analysis looked at the
underlying causes (“root issues”) of the gaps (“subordinate issue/need”) identified in the
sector. More detailed assessment of the identification of each need based on the data can be
found in the Framework Plan.
Assets are Not Well- Poor management of road ROW for transport purposes
Managed Access is not managed
LGUs lack capacity to manage local roads
Overloaded trucks and poor enforcement of limits impact safety and
infrastructure condition
Poor condition of roadways, especially on the local network
Construction material not matched to terrain/environment
Some ports in poor condition
While much of the passenger and freight movement occurs between neighboring provinces or
regions (e.g., between the NCR, Region III, and Region IV-A), at the broader national level
there are several key corridors for domestic trade, commerce, and tourism currently, or
projected for the future. These corridors were identified based on total current and project
demand between provinces, based on population and employment projections by sector and
independent of mode of travel. As the Philippines is an archipelago, demand between these
islands requires passengers or freight to channel through the main commercial ports and
airports, creating additional urgency for the improvement of those facilities or creation of
additional capacity. Table 4 below identifies these key corridors and, for the larger islands of
Luzon and Mindanao, the main regions generating the demand. This has implications for the
key arrival and departure points by air or sea in each region.
Key international gateways are focused on key points of entry to or exit from the Philippines,
based on passenger and freight demand and trends. There is overlap between many of the
physical needs identified above in the Table ES.3 and the infrastructure needed to support
these key corridors and gateways (Table ES.4).
Table ES.4 Key Corridors and International Gateways, with Basis for Inclusion
Manila/NCR x x
Cebu x x
Davao x
NCR x x
Northern Mindanao x x
Based on the analysis of issues and needs, the following are the recommended strategies –
non-physical and physical – classified into timeframe of implementation (short, medium and
long-term).
E.4.1Non-Physical Strategies
Short-Term - Immediate
Short-term strategies are those that can get started now, but may not be fully implemented
through 2014-2016. Within these, immediate strategies can and should begin in 2014.
Immediate short-term strategies include some of the following, including summaries in
Table ES.5:
Establish a lead agency and process for identifying and programming priority farm-to-
market roads (similar to the Tourism Road Infrastructure Program (TRIP)). Design
standardization and expertise in road development can be provided by DPWH. Farm-to-
market roads and basic accessibility roads are important to improving access to markets
and institutions which are crucial in the poverty reduction agenda. DPWH, with DA and
DILG.
Conduct gap analysis of management systems (e.g., bridge, pavement, safety, right-of-
way). Management systems are fundamental tools for any transport agency to help keep
an inventory of the current system, data on the usage of the system, and help make better
decisions for maintaining the system. Various executing agencies.
Develop a data management plan for collecting, sharing, and maintaining data across all
transport-related agencies. Agencies currently having a stake in transport data collection
include DPWH, DOTC and its line agencies, DILG, DOT, DAR, separate port and airport
authorities, and LGUs. A transport data management plan should designate the types of
data that need to be collected on a regular basis, for what purpose, the processes and
standards for each data type, and processes and standards for data management and
storage. The plan should identify agencies responsible for collection, funding of the
collection, and storage of the data. This plan should address data that can help in
monitoring transport system improvements over time (performance reporting); travel
demand model development to aid in investment decision-making; safety-related hot
spots; and disaster recovery operations. Inter-Agency, National Agency Responsibility
(DPWH, DOTC, etc.) with Significant LGU Support.
Determine the requirements for a national travel demand model and develop terms of
reference. Determine a lead agency and strategy for developing a transportation network
to include all roadway classifications to feed into a network-based model. A travel demand
model is a fundamental tool that can help the Philippines’ transport agencies understand
the system level impacts of different project investments. DPWH and DOTC Responsibility.
Confirm the strategy and provide support for planning and funding of mobile weigh scales
and for refurbishing and constructing weigh stations along highways. This is currently led
by DPWH. This is critical for preventing rapid deterioration of Philippine roadways and
helping maintain road safety. DPWH Responsibility.
Standardize road design across all implementing agencies, especially those implementing
local roads to ensure consistent levels of standards (e.g. type of pavement, pavement
thickness, design speed, drainage, and other ancillary features) and maintenance practices.
DPWH Responsibility.
Establish a freight advisory committee composed of public and private sector freight
stakeholders. Ensuring efficient freight movement has largely been set aside in favor of
urban congestion; but this has a cost to the economy of higher commodity prices and lower
trade competitiveness. This problem needs to be discussed openly and strategies and
investment plans targeting freight movement need to be developed. DOTC and DPWH
Responsibility with Significant LGU Support.
Update the road classification system for all roadways to bring out functions or roles of
each roadway and responsibilities for maintaining them, taking into account the capacity of
DPWH and different entities to maintain roads. DPWH Responsibility.
Implement a national road routing system to remove confusion on the road network
system and enhance people’s familiarization with the national road network. DPWH
Responsibility.
Identify inefficient, irrelevant, outdated and/or obsolete laws, statutes, and codes (e.g. the
Public Service Act and regulation of public transit), leading to proposal on new policies or if
necessary legislation to be more responsive to current needs, existing environment and
emerging trends. Inter-agency, National Agency Responsibility (DPWH, DOTC, etc.) with
Significant LGU Support.
Adopt a people-oriented transport policy and identify a lead agency responsible for people-
oriented infrastructure (sidewalks, bike lanes, handicap friendly); design
guidelines/standards, including national roads. DOTC leading policy with DPWH
development of standards.
Evaluate cabotage reform options and assess potential impacts (e.g., cost/benefit analysis)
to all stakeholders (e.g., shippers, farmers, and consumers). National government, NEDA
responsibility.
Ensure flexibility at PMO, PDO, or port level to be flexible in responding to changing market
demands, along with accountability measures on port performance. DOTC responsibility,
jointly with PMOs/PDOs.
Conduct a transport resiliency analysis on existing infrastructure, starting with areas that
are most vulnerable to the impact of climate-change and disasters based on available geo
hazard maps and studies. Inter-agency, National Agency Responsibility (DPWH, DOTC,
etc.) with Significant LGU Support.
Consult with the Inter-agency Road Safety Committee on safety enforcement strategies
including for 2-3 wheel vehicles, which have the biggest share in the mix of motor vehicles
in most regions in the country and higher safety concerns. Inter-agency, National Agency
Responsibility (DPWH, DOTC, etc.) with Significant LGU Support.
Institutions and
Need or Issue Processes Regulatory and Legal Social/Environmental
Lack of Technical Conduct gap analysis of N/A N/A
Capacity for Planning management systems
Establish data collection
protocol/national data
plan
Determine travel demand
model requirements
Explore partnership with
academe to promote
transport skills
Limited Accessibility Create local roads
for the Poor strategy
Program priority FMRs
Governance/Organiza N/A Identify legal framework N/A
tions not Flexible or issues
Responsive to User Provide more funding
Needs flexibility at port level
Transport System has GIS data management N/A Resiliency analysis
Safety Issues and is plan for safety (part of 2-3 wheel vehicle safety
not Equipped to overall data management enforcement
Reduce Disaster plan)
Impacts
Institutions and
Need or Issue Processes Regulatory and Legal Social/Environmental
infrastructure
High Domestic and Establish freight advisory Evaluate cabotage N/A
International committee reform options
Shipping Cost
Investments do not N/A N/A N/A
Always Match Needs
Assets are not Well Enforce truck weight N/A N/A
Managed Roadway design
standards
Road classification
Road routing system
The following types of strategies are also recommended for initiation in the short-term (2014-
2016) with additional recommendations shown in Table ES.6:
Combine currently disparate transport planning functions under the DOTC to allow for more
comprehensive, system-level, multimodal analysis of transportation investments. This level
of planning should be done at an “umbrella” level above the various line agencies within
the DOTC, as well as including road planning that is currently done at DPWH, with input
and participation from experts in each of these agencies. DOTC Responsibility with DPWH.
Establish a Leadership Program within agencies (NEDA, DOTC, DPWH, and attached
agencies) to transfer knowledge, tools, and methodologies to managers within each
organization. This can be facilitated by the academe and supported by the national
government transport agencies. Inter-agency, National Agency Responsibility (DPWH,
DOTC, etc.) with Significant LGU Support.
Establish a transport training program for provincial and local governments to incorporate
the Framework Plan-recommended planning processes into provincial/local decision-
making. This will help to encourage a more data-driven approach to project selection and
recommendation. DILG can facilitate the development of this program with academe
providing the content. Inter-agency, National Agency Responsibility (specifically NEDA and
DOTC) with Significant LGU Support.
Annually assess and report the condition and performance of the national transport system,
building on the data collection protocols recommended in the short term strategies. This
should be part of regular data collection and reporting to assess the outcomes of transport
investments; assess progress towards goals; ensure accountability; and to have current
data for following the process for allocation of resources identified in this Framework Plan.
DOTC responsibility.
Rationalize the port system, given many ports were constructed for reasons other than
demand. The proliferation of ports throughout the islands means that low cargo volumes
are dispersed over many ports, making it difficult for the majority of ports to be operated
profitably and for the main ports to achieve economies of scale. However, this should
include an established policy for municipal ports for minimum accessibility for rural,
impoverished areas. This policy measure works in concert with project recommendations on
port consolidation to create prosperous international gateways; risk assessment and
feasibility assessment should be included. DOTC, specifically input from PPA and its
PMOs/PDOs.
Develop a more robust system of local road development, maintenance, operations, and
enforcement, implemented at the provincial/local level but supported by the national
government. Such a process should include a standardized approach for data collection;
financial support tied to data collection and reporting to the national government to ensure
improvement towards projected targets; capacity building and training for provincial and
local governments by the national government; and initiation of the program with “good-
housekeeping” governments. DPWH Responsibility, coordinated with DILG, with Significant
LGU Support.
Extend the horizon of planning documents (e.g., PDP, RDP) to allow time for technical
analysis. While medium term programming is still recommended along the current 6 year
time frame, this should be within the context of longer-term outcomes (e.g., 20 to 30
years). National Agency Responsibility (NEDA, DPWH, DOTC, etc.).
Develop multimodal transport studies for select metropolitan, regional, sub-regional, and
provincial centers (as identified by the NSS). Multimodal transport studies have rarely been
done for areas outside Metro Manila.These should be conducted at the regional level (e.g.,
by provincial or local governments), but supported at the national level. Start with the next
“tier” of cities in the Philippines: Cebu, Davao, Cagayan de Oro, and IloIlo. DOTC
Responsibility.
Dedicate national funding for purposes of matching LGU resources for planning studies to
incentivize LGUs to undertake basic urban transport planning. This should also be linked to
the capacity building initiatives being driven by the academe. Inter-agency, National
Agency Responsibility (NEDA, DPWH, DOTC, etc.) with Significant LGU Support.
Institutions and
Need or Issue Processes Regulatory and Legal Social/Environmental
Lack of Technical Agency Leadership N/A N/A
Capacity for Planning Program
LGU Training Program
Limited Accessibility Establish policy for N/A Local performance
for the Poor municipal ports for reporting
minimum accessibility
(part of port system
rationalization strategy)
Governance/Organizat N/A N/A N/A
ions not Flexible or
Responsive to User
Needs
Transport System has N/A N/A PCG evaluation
Safety Issues and is
not Equipped to
Reduce Disaster
Impacts
Urban Congestion and Create urban transport National matching N/A
Accessibility to Jobs plans contribution to LGUs for
planning
High Domestic and Conditions and N/A N/A
International Shipping performance reporting
Cost
Investments do not Define proper planning N/A N/A
Always Match Needs horizon
Incorporate
performance-based
planning into planning
processes
Combine all transport
planning functions into
one agency
Assets are Not Well- Rationalize the port N/A N/A
Managed system
Local road development,
maintenance, funding
The following is a summary of recommendations for long-term initiation (beyond 2016) with
Table ES.7 providing additional recommendations:
Develop a national travel demand model for use in forecasting passenger and freight travel
flows which would provide improved information and analytical support for national and
regional transportation planning and programming decision making. This should be based
on the requirements and initial steps developed in the short-term recommendations above.
DPWH Responsibility with Significant Support from DOTC and other national Agencies.
Establish and increase capacity-building programs (e.g., basic, advanced) to all aspects of
transport planning, investment decision-making, operations, and enforcement at the
provincial- and city-levels. This can be driven by the development and extension of NCTS-
type entities at local universities around the country, and can be supported by the national
government. These local transport centers of excellence can also provide support to LGUs
that may lack staff to perform any transport-related functions. Much of the transport
responsibilities are divested to provincial and local authorities, despite a lack of technical
and staff capacity to take on these duties; this has a directly negative effect on the success
and sustainability of transport investments from the national government. Inter-agency,
National Agency Responsibility (NEDA, DPWH, DOTC, etc.) with Significant LGU Support.
As part of capacity building, establish internship programs between Universities and the
transport agencies and their attached agencies. National Agency Responsibility (NEDA,
DPWH, DOTC, etc.).
Establish regional, metropolitan agencies outside the NCR responsible for coordinating and
administering regional transport planning and programming, along with related functions
such as land-use planning. Inter-agency, National Agency Responsibility (NEDA, DPWH,
DOTC, etc.) with Significant LGU Support.
Rationalize public transit in the Philippines’ cities by creating a single, regional transit body
in each urban area responsible for planning, implementing, and operating public transit.
Each body may be part of the metropolitan agencies identified above (e.g., an MMDA-type
body). Private operators may continue to operate individual routes in this scheme,
contracted out on a performance basis (combination of revenue and meeting desired
service targets), but all road and rail based transit in a region will be identified as, and
function as, a single system. DOTC Responsibility.
Identify Metropolitan Areas with High capacity transit in Largest urban areas
severe congestion and develop Cebu (e.g., BRT) outside Manila
multimodal system plans with High capacity transit in No existing high
alternative modal choices Davao (e.g., BRT “Lite”) capacity transit
Growing population,
economy, congestion
Tables 4.12 through 4.17 in the Framework Plan compare the broad infrastructure strategies
above to specific projects that have been programmed or planned previously. These projects
relate to the corridor or facility specific strategies in the tables above.
The suggested timeframe of initiation relates to a combination of priority (based on the needs
analysis above), additional priorities identified in the relevant study, and assessment of overall
institutional and engineering feasibility. Additionally, occasional sets of projects fall within a
particular need but may be “competing”; in such cases, one of the projects is prioritized over
the other again based on feasibility and long-term vision.
Projects may satisfy multiple needs. For example, a port project may help increase demand at
an over capacity port, while also contributing to supply of infrastructure in one of the
Philippines’ key national corridors for passengers and freight.
Some projects have already undergone some level of analysis, as indicated in the tables in the
Framework Plan. For those that have not, the first step for implementation will be
feasibility analysis.