Feasibility Study for the

IMPROVEMENT /UPGRADING
OF CAGANHAO-AMOINGON-
MAYBO FARM TO MARKET
ROAD

Province of Marinduque
 Philippine Rural Development Project

Executive Summary

A. Project Title : Upgrading & Improvement of Caganhao-Amoingon-

Maybo FMR
B. Project Location : Boac, Marinduque
C. Project Category : Concreting
D. Project Scale/Dimension : 5.126 kms
E. Project Proponent : Provincial Government of Marinduque
F. Implementing Unit : Provincial Government of Marinduque
G. Total No. of Barangays : 218
H. Mode of Implementation : By contract
I. Road Influence Area (RIA) : 1,491 hectares
Barangay No. of has. Coconut Palay Banana
Caganhao 232.715 209.49 1.841 19.44
Amoingon 112.9218 82.5 12.2038 14.89
Maybo 437.7685 369 13.0185 38.55

J. Project Beneficiaries : 3,171population

within the RIA 814 households
Males: 1,586 Females: 1,585
Farmers: 498
Fisherfolks: 503

K. Total Project Cost and : Php 62,198,955.50

Cost Sharing WB Loan Proceeds (80%): 49,759,164.40
WB –GOP (10%): Php 6,219,895.55
: LGU Equity (10%): Php 6,219,895.55

L. Economic Viability : EIRR: 29.30%.

Indicators ENPV: Php 45,491.00 at 15% discount rate
BCR: 1.91

Conclusion and The project is found to be feasible from the marketing,

M.
Recommendations technical, economic and operational viewpoints. Hence, the
project is worth pursuing.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 1

I. INTRODUCTION

a. Provincial Background

i. Demography

The province of Marinduque is about 170 kilometers southeast from Manila and belongs
to MIMAROPA Region or Region IV-B. The heart-shaped island is about 35 kilometers in
diameter and is located at 122 degrees 22 minutes longitude and 13 degrees 20 minutes
latitude. The province is comprised of six (6) municipalities and has a physical land area
of 95,925 hectares more or less.

Topography of the Figure1. Map of Marinduque

province is
characterized by an
extensive hilly and
mountainous terrain.
Around 83% are hills
and mountains and
only 17% are alluvial
plains. The highest
peak of the province is
Mt. Malindig at 1,157
meters above sea level
and is located at the
municipality of
Torrijos.

The soils of the

province are
representative of San Manuel sandy soil and can be mapped mainly at the alluvial plains.
It covers an area of about 6,800 hectares more or less and is deep, fertile and well
drained suitable for the cultivation of various agricultural crops.

Climate of the province is categorized as Type IV of the Coronas Classification and has
no distinct boundary between dry and wet season. However, for the past ten years, a
change in climate pattern was observed and based on the modified Corona’s Climate
Type the climate is trending into Type III Climate wherein seasons is not very
pronounced with relatively short dry season from February to April and no pronounced
maximum rain period for the rest of the year. Southwest monsoon (Habagat) winds
occurred in May to October and Northeast monsoon (Amihan) also starts in October and
ends in March while April to May is the transition from northeast to southwest monsoon
season.

According to the recent data on population of the Philippine Statistic Authority-

Marinduque in August 1, 2015, the province has an annual population growth rate of
0.55 percent, with an increase of 0.08 percent from the previous 2010 Census Result of
0.47. The 2015 Census Result translated a total population of 234,521 individuals. This
is larger by 6,693 persons compared to its total population of 227,828 in 2010, only in a
five year period.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 2

 ii. Economy

The province’ economy largely depends on agriculture. Most number of the employed
persons are engaged in agriculture, fishery and forestry sub-sector. But employment in
the sub-sector is considered low despite being in an agriculture based province. In 1990,
employment in the subsector was only 5,000 that represented only 19.89% in the total
employment sector. The fall in the employment trend could be an indication that
agriculture and fishery as the principal source of income of mostly rural families are no
longer dependable and stable. Traditional farming has turned to modernization, i.e. farm
mechanization. The uncontrollable conversion of production areas to residential also
contributed to the low employment in the subsector. There are also potential prime
production areas that are left unproductive due to absentee landowners.

Being an island province, Marinduque is endowed with rich marine and coastal
resources; with its coastlines of more than 150 km. making fishing as second major
source of livelihood of the 83 coastal barangays. The province’ Municipal Water/Marine
Waters covers an aggregate area of 2,731.15 sq. km. more or less, three times the size of
the province total land area. The Municipality of Gasan has the largest municipal marine
water areas at 677.65 sq. km. in the area of Tablas Strait while the Municipality of Boac
has the least area at 149.85 sq. km. also part of the Tablas Strait. Its in-shore coastal
marine waters are consider rich fishing grounds that includes Calancan Bay, Sta. Cruz
Bay, Masaguisi Bay, Cagpo Bay, Torrijos Bay, Marlangga Bay, Sayao Bay, Balanacan Bay,
Ulan Bay, and others. While its off-shore marine resources are frequented by local small
commercial fishers in the areas of Mompong Pass, Sibuyan Sea and Tablas Strait. In
addition the province also maintains 700 hectares of fishpond areas and 1,712.5
hectares of potential grounds for development. Based on the 2015 figures from the
Provincial Agriculture’s Office, the province produced 10,320.235 metric tons of fish
from the total 13,074 registered fisher folks in the six (6) municipalities of the province.
Boac has produced the most number of fish catch with a figure of 5,319.866 metric tons
despite of being the least marine water area among the six municipalities, followed by
Buenavista with 1,290.830 metric tons of fish catch, Torrijos, Mogpog, Gasan and
Sta. Cruz.

Fishing is the second main source of income of Marinduqueños. The province is

surrounded by fishing areas providing people with principal or supplemental earnings.
Based on 2012 figures, the local fishing industry netted about 8,161 metric tons, nearly
75% of which is shipped outside the province. The biggest share of the catch comes from
Sta. Cruz, followed by Gasan, Torrijos, Boac, Mogpog and Buenavista.

Cottage industries, hand crafting, weaving, wood carving and other livelihood activities
are very common in the province. The butterfly culture is one of the popular livelihoods
to some garden lovers and breeders; others are into processing of indigenous materials
including coco sugar production. Cookies from arrowroot flour are the best-processed
food the province can offer.

iii. Agriculture and Rural Development Sectors

Marinduque is basically an agricultural province, with a total land area of 95,925

hectares. About 67% of the land area is categorized as cropland, 53,587.05 hectares of
the cropland area is occupied by coconut.

Of the 218 barangays comprising the province, 197 are coconut producing barangays.
The municipality of Boac has the most number of barangays or 55 barangays planted

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 3

 with coconut, followed by Sta. Cruz with 51 barangays planted with coconut. Records
from the PCA-Marinduque in 2015 shows that there are 26,044 coconut farmers in the
province, where most number of coconut farmers are in Sta. Cruz with 6,395 followed
by Boac with 4,796 and Buenavista to have the least recorded coconut farmers of 2,890.

Marinduque has a total of 35, 448 hectares coconut area and in 2015, records from PCA
show that there were 4,261,340 coconut trees and 3, 542,781 bearing trees. Of the total
4,261,340 coconut trees, 16.86% or a total of 718,559 are non-bearing trees.

The Municipal Agriculture Office of Boac reported a total crop production of top
agricultural commodity of 1,926,039.029 MT in 2016 only from the three influenced
barangays of the project, Caganhao, Amoingon and Maybo. This is an aggregate volume
of production of major crops such as coconut, copra, palay, and banana were harvest
from the 783.4053 hectares of land, which covers 53% of the total land area of the three
barangays.

There are 33 existing irrigation facilities in the province which presently irrigates 1,322
hectares more or less of rice paddies. Some facilities have gone non-operational due to
the drying-up of water sources and severe siltation of waterways.

Pre-and post-harvest facilities in the province are mostly provided commercially by the
some able individual businessmen and are limited only to rice and corn. No higher or
modern form of farm equipment and facilities are available for farm utilization and
mechanization.

b. Project Identification and Prioritization Profile

i. Commodity Profile

The Coconut Tree (Cocos Nucifera L.) is called "The Tree of Life" because of the endless
list of products and by-products derived from its various parts. While much of the
activities and products produced, it is also considered a main source of livelihood among
coconut farmers, from copra making and/or copra trading. Coconut offers more
opportunities among which includes coconut oil, coconut wine, coco sugar, charcoal,
flour and coco geonet. For this particular area, the focus is on the coco geonet as a
product line/form from where coconut husk as waste product of copra will be the
source of raw material for the production of geonets, mats, plant box and other types of
handicraft. It is one of the most eco-friendly products with excellent water absorption
and retention, making it an ideal plant growing medium and soil conditioner (FSSI
official website, 2009).

Coconut area occupies about 67% of the total cropland in Marinduque. The total
number of coconut trees significantly increased in 2013 to 4,191,163 as a result of
planting and replanting program of the PCA in collaboration with the Provincial
Government. But of this total, only 3,542,781 are bearing trees, which means there are
648,382 non-bearing trees. An average of 26 nuts per tree or a total of 92,112,306 nuts
in 2013 are being produced by 26,173 coconut farmers’ province-wide. The
Municipality of Sta. Cruz has the largest coconut production area located in the 51
barangays with total aggregate area of 9,911 hectares, followed by the municipalities of
Gasan, Boac and Torrijos with 7,058 hectares in 22 barangays; 6,213 hectares in 55
barangays and 4,515 hectares in 25 barangays, respectively. Buenavista has the least
coconut production area of 3,812 hectares in 12 barangays. While Gasan has larger
coconut production area than Boac, the latter has higher number of bearing coconut

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 4

 trees of 826,732, and Gasan has 589,512 bearing trees. Per Provincial Agriculture
Office’s record, the total coconut production of the province reached at 139,053 MT in
2013. The biggest producer is the Municipality of Sta. Cruz with a total yield of 36,432
MT followed by the Municipality of Boac at 32,449 MT and the Municipality of
Buenavista as the least producer with 11,013 MT.

Marinduque's 26,173 coconut farmers produced some 113,368,992 nuts with 106,283
metric tons of copra in 2015. The average copra production volume per hectare is
recorded at 3.36 metric tons. Most coconuts produced in the province are processed into
copra which is shipped out in Quezon province particularly in Lucena. As an island
province free from scale insect infestation and minor cases of pests and diseases
occurrence, coconut is a promising industry to be developed for value adding. Coconut
husks which are considered waste product and are only left at the plantation, offers a
wide range of livelihood opportunities to farmers.

It can be observed in Table1 below that the total produced coconuts of the three
barangays in a year is 1,924,802.88, while copra produced has a total of 384.96 mt in a
year and banana produced of 655.92 mt in a year. (Refer to table below)

In order to augment their income, coconut farmers have adopted intercropping. Result
of survey conducted shows that banana and root crops are the common crops that are
intercropped with coconut. Further, copra trading has always been the dominant feature
of the province’ coconut industry where coconut farmers depend for their livelihood.

Production Area (has) Production (mt)

Coconut (26 Coconut (5
Barangay
Coconut Palay Banana nuts/tree/ nuts/kg of Palay Banana
year) copra)
Caganhao 209.49 1.841 19.44 610,034.88 122.01 - 174.96
Amoingon 82.5 12.2038 14.89 240,240.00 48.05 97.6304 134.01
Maybo 369 13.0185 38.55 1,074,528.00 214.91 97.63875 346.95
TOTAL 660.99 27.0633 72.88 1,924,802.88 384.96 195.26915 655.92
Coverage 84% 3% 9%
Area
Source: MAO-Boac Agricultural Production Data Survey 2016

ii. Value Chain Summary

While the opportunities in coco geonet industry had been identified, there are also
constraints that will potentially affect the industry. Among them is the lack of
awareness on the part of the stakeholders, particularly the farmers on the economic use
of husks/coco coir; road inaccessibility; handicapped management within the
organization that is currently producing coco geonet; inadequate production equipment;
and, lack of working capital. With the upgrading/concreting of the existing 4.15960 km
of road going to production sites of the area, the production and its value added will
increase.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 5

 iii. Expanded Vulnerability and Sustainability Assessment (E-VSA) Map and
Statistics

Relative to coconut suitability in the area, the province of Marinduque through PRDP,
utilized the tool Expanded Vulnerability and Suitability Assessment (eVSA).

Figure2. Ranking of Municipalities using eVSA

(Parameter: Area Planted with Coconut)

MOGPOG
STA. CRUZ

BOAC

GASAN
TORRIJOS

BUENAVISTA

Figure3. Ranking of Municipalities using eVSA

(Parameter: Volume of Production in Metric Tons)

MOGPOG

STA. CRUZ

BOAC

GASAN
TORRIJOS

BUENAVISTA

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 6

 Figure4. Ranking of Municipalities using E-VSA
(Parameter: Number of Coconut Farmers)

MOGPOG

STA. CRUZ

BOAC

GASAN
TORRIJOS

BUENAVISTA

Table1. Coconut Producing Areas in Marinduque, 2015

Total
No. of No. of No. of Total No. No. of
Coconut
Municipality Coconut Coconut Coconut of Coconut Bearing
Areas
Barangays Farms Farmers Trees Coco Trees
(has.)
Boac 55 4,796 4,924 6,213 899,810 826,732
Buenavista 12 2,890 2,900 3,812 419,564 280,586
Gasan 22 3,907 3,907 7,058 737,304 589,512
Mogpog 32 4,656 4,703 3,939 602,460 495,648
Sta. Cruz 51 6,395 6,435 9,911 1,052,685 928,214
Torrijos 25 3,400 3,304 4,515 549,517 422,089
TOTAL 197 26,044 26,173 35,448 4,261,340 3,542,781

Individual parameters show the rank of municipalities according to the vulnerability and
suitability assessment (VSA), number of farmers, production volume, and area planted of
coconut and number of bearing coconut trees. It indicates that in terms of these parameters
considered, the Municipality of Sta. Cruz is one of the priority areas to focus investment on for
the development of coconut production to generate impact.

Coconuts produced in the province are mostly processed into copra with small volume of de-
husked matured coconuts and are marketed in Lucena City and the rest of Quezon Province in
various oil mill refineries. The retained volume is locally consumed for domestic use and
processed commercially into coco jam and some coconut farmers are producing coconut sap
commercially for “Tuba” and coconut vinegar. In the Municipality of Gasan, one SME is into
processing of VCO, soap and other health and medicinal products and another SME is producing
coco coir fiber that is being marketed outside of the province. Also, coconut sap is being
processed into coco sugar by a village level processor. Coconut shells are mostly used for
charcoal and with small quantity for handicrafts.

Marinduque has a total of 35, 448 hectares coconut area and in 2015, records from PCA show
that there were 4,261,340 coconut trees and 3, 542,781 bearing trees. Of the total 4,261,340
coconut trees, 16.86% or a total of 718,559 are non-bearing trees.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 7

PCA 2015 records show that there are 4,261,340 standing coconut trees in the province. On the
average there are 112 coconut trees planted per hectare of land. Of the entire standing coconut
tree there are about 3,542,781 coconut bearing trees or 83.14% of the total coconut trees. The
average production cost which includes planting materials, plantation establishment, fertilizer
and hauling is estimated to reach Php 25,200.00 per hectare on the first year. Succeeding five
(5) years for maintenance is placed at Php 1,380.00 and 10% replacement for mortality cost for
the first at Php 1,680.00. Coconut tree starts bearing coconut on its fourth year and most
productive age at 10th to 50th year of age, after which, it starts to decline in production. Cycle of
harvesting is every 45 days or 8 times of harvesting in a year. Average of collection of matured
coconut per harvest is 4 nuts and peak season from month of August to December.

II. THE SUBPROJECT

a. The Road Influence Area

i. Location
Figure7. Location Map
The Road project is
located in the western
part of Boac extending
from the interior part of
the municipality going to
the coastal barangay of
Brgy. Caganhao.
Influence Area is bounded
on the north by Boac
Poblacion, east by
Balagbag Mountain Range,
south by Municipality of
Gasan, and west by Tablas
Strait.
The municipality of Boac
ranked 3rd in terms of
total coconut producing
areas and ranks 2nd in
terms total number of coconut trees in the province as shown in Table 1.

The Caganhao-Amoingon-Maybo will traverse through rich agricultural land where vast
of coconut plantation lies within the area. The road influence area extends about 8.0
kilometers south of Boac Poblacion. Majority of the area presents largely undulated hilly
and mountainous topography with slopes ranging from 3% to 18%. Small areas of
alluvial plains occurring as pockets between skirts of hills and mountains and develops
in narrow strips along coastal areas.

ii. Demography

The influenced barangays has a total population of 3,286 as of August 1, 2015 with an annual
population growth rate of 0.55%. At an average household size of 4.3, the projected population in
2017 is 3,614 using the annual growth rate of 0.55%

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 8

 Table2. Population in Road Influence Area, 2015-2020, Road Project

Labor Force
**Base Labor Employment
Barangay Participation
Year Force Rate (%)
Rate (%)
(2015)
Amoingon 1,318 52 % 48 % 52 %
Caganhao 964 25% 75 % 25 %
Maybo 889 55 % 45 % 65%
SOURCE: **Boac CBMS Data 2014-2016

iii. Major Economy And Land Use

The economy of the influence area and the municipality is agriculture and fishery. Of the
total 814 families in barangay Caganhao, Amoingon and Maybo, 31.57percent are
engaged in agriculture which involves crop production, fisheries, and backyard animal
farming.

Barangay Caganhao, Amoingon and Maybo have a total land area of 1,491 hectares. Total
agricultural land is 783.4053 hectares or 53% of the total land area of the three
barangays.

iv. Agricultural Area and Crops Planted, livestock and fisheries

The total area in the barangays cultivated to various crops is 783.4053 hectares about
4.30% of the total land area of the municipality of Boac. The largest area of the
municipality is classified as cocal, occupying 45.1560% or an area of 9,605.6 hectares,
banana area 91.044 hectares and corn production area of 14.04 hectares while rice
production has a total land area of 837.861 hectares. On the other hand, the production
of coconut is 660.99 hectares with 1,925,187.84 mt produced in a year, banana of
different varieties such as latundan, saba and lakatan has 72.88 hectares with 655.92 mt
produced in a year and palay has 27.0633 hectares with 195.26915 mt in a year.

v. Processing and Marketing Industry of Agri-Fishery Products

The agricultural products and by-products in the barangays of Caganhao, Amoingon and
Maybo such as bananas, copra, palay and other crops are marketed in Boac and Gasan
public market and in the nearby municipalities while copra is directly sold to copra
buyers in the locality. Most coconut produced in the province is processed into copra
which is shipped out in Quezon province particularly in Lucena. As an island province
free from scale insect infestation and minor cases of pests and diseases occurrence, this
indicates a promising industry to be developed for value adding.

Farm products like beef, carabao meat, horse meat, goat meat, pork and chicken meat
are also being marketed to nearby markets. The three barangays has a total of 63 live
farm cows, 30 carabaos, 6 horses, 147 goats, 622 swine, and 3,811 chicken owned and
breed by the local farmers.

vi. Poverty Incidence

The 2014-2016 Community Based Monitoring System (CBMS) Census reported that
about 43.31% of the total households in Boac were living below the poverty threshold.

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III. Subproject Objectives

a. Subproject objectives relative to % increase in traffic and % reduction in travel time

(PRDP targets at least 50% reduction in average travel time from farm to markets in
subproject areas by the end of program; and at least 60% increase in traffic count in
subproject areas by the end of program); May also include specific objectives relative to
quantified benefits in economic analysis as well as others that were non-quantified.

 At least five percent (10%) increase in annual real farm incomes of PRDP in
household beneficiaries
 30% increase in income for targeted beneficiaries of enterprise development
 Twenty percent (30%) increase in number of farmers and fishers with improved
access to DA services
 Sixty Percent decrease in hauling cost of Agri products

IV. Project Feasibility Indicators

a. Market Analysis/Demand-Supply Analysis

i. Supply Side

The total existing road network within the influence area covering the barangays of
Caganhao, Amoingon and Maybo is estimated at 5.126 kilometers which is classified
as barangay road.

In terms of surface type and condition, concrete paved road has a total length of
0.356 kilometers or 6.94% of the total road network. On the other hand, earth road
has a total length of 4.77 kilometers or 93.06%, all of which are not passable. Table 2
below shows the existing road network.

Table3. Existing Road Network in the Influence Area

Road Type (in kms)
Total
Road Gravel Earth Concrete
Classificatio Not Not Not Not
Passabl Passabl Passabl Passabl
n Passabl Passabl Passabl Passabl
e e e e
e e e e
Brgy/FMR 0.706 4.064 0.356 1.062 4.064
Municipal
Provincial
National
Total 0.706 4.064 0.356 1.062 4.064

ii. Current Road Network in the Project Influence Area Vis-à-vis Accessibility of the
Road Condition to Market Centers/Trading Points

The present condition of the Caganhao-Amoingon-Maybo Barangay Road is totally

unstable and not passable to all kind of vehicles, since it is abandoned for more than
20 years and not subjected for repair and maintenance. Several sections have road
slip and landslides and eroded portions due to heavy rains brought by the numerous
typhoons that visited the province for the past years. Maintenance works is not
being carried on due to lack of funds and the enormous damage requires huge
amount for its restoration.
PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 10
 It is an unpaved road and now in a low standard road or trail condition where the
transport of agricultural products such as coconut/copra is being done by foot and
by the use of carabao and horses. Although the road is within the production land of
Boac, agricultural production in the area is very low due to the absence of sound
transport facilities.

It also serves as main access routes to agricultural areas and will connect farming
areas of Seaside Barangays and western interior agricultural production areas of
Boac. It is connected to the primary road network or the National Road leading to
the Agri Industrial Zone and Poblacion of Boac, and is only 3.0 km. away from Cawit
National Port of Boac.

iii. Demand Side

The road influence area is suitable to agricultural production, specifically for

coconut/copra, which is very abundant in the area. Barangay Caganhao, Amoingon
and Maybo have a total agricultural area of about 660.99 hectares planted with
coconut. It is approximately producing 384.96 metric tons of copra. The produced
crops have to be moved or transported to the market centers either in Boac
Poblacion or other nearby towns.

Based on the existing gap on road network, out of 5.126 kilometer road, there are
about 4.77 kilometers of earth roads that need to be upgraded into concrete, and the
existing 0.356 kilometers concrete road need to be widened and a line canal to be
constructed, to complement with the 4.77 kilometers. By doing so, it will connect
agricultural areas to market centers and to the national road as well. The improved
road network after the project is shown in Table 3 below.

Table4. Desired Road Network

Road Type (in kms)
Total
Road Gravel Earth Concrete
Classification Passa Not Not Not Not
Passable Passable Passable
ble Passable Passable Passable Passable
Brgy/FMR 5.126 5.126
Municipal
Provincial
National
Total 5.126 5.126

i. Desired Road Network Condition in the Project Influence Area Vis-a-Vis

Accessibility of the Road to Market Centers/Trading Points

The desired road is an upgraded 5.126 kilometer road with 4 meter carriageway all
throughout, 1.5 meters shoulder and an earth ditch or concrete canal on both sides at
intermittent sections. The desired road will serve as main access route to agricultural
areas of interior barangays, specifically Brgy. Maybo, Amoingon and Caganhao in
bringing out their products to the Public Market of Boac or nearby town. Coconut
plantations will be connected to the market centers and trading centers. It will benefit
farmers and residents living in the area as well as those living in nearby barangays.

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 Upon completion of the proposed project, the direct influence area will ensure firm
transfer of agricultural products to the desired public markets. Accessibility to the
trading points in the locality will tremendously improve the economic activities in the
area.

ii. Availability of Public Transport

Considering the present condition of Caganhao-Amoingon-Maybo Barangay Road,

almost majority of road network is not passable to all kind of vehicles, 93.06%
comprises unpassable road. The only means of transporting agricultural products is
being done by using carabaos and horses.

The only public transport system present in the area is catered by motorcycle, tricycle
and jeepney. These transport facilities operates only on the existing passable road, from
the junction of Boac-Gasan Circumferential Road leading to the proposed project,
approximately 1.062 kilometer away from the beginning of the project, rest are not
passable to commuters.

iii. Demand-Supply Analysis

With the project, the road influence area will be provided with 5.126 kilometers of
upgraded road that will improve accessibility to market centers and trading points in
the municipality. It will encourage the local producers to increase the production at the
maximum level due to improved road network system. It is expected to decrease the
marketing cost of agricultural products and increase the mobility of goods and services,
thus increasing the farmer’s savings and income.

Without the project, accessibility from the interior agricultural production areas down
to seaside barangays and trading centers will remain a problem. Volume of production
and other agricultural crops will remain low due to the absence of transport facilities.
Farmers will not be encouraged to improve production, resulting to low farmer’s income
that remains below the subsistence level.

iv. The Proposed Road Segment

The concreting of the road project is expected to open opportunity for the operation of
regular public utility transport to serve the residents of the interior barangays going to
national road & seaside barangays. The proposed project will provide favorable option
to divert traffic from the existing route going to market centers and trading centers.
Such road project will benefit the farmers in terms of reduced transportation cost, travel
time and product loss in bringing their products to the market centers of Boac and
nearby municipality. This will encourage farmers to increase productivity of their farm
by applying appropriate technology and application of farm inputs. It will stimulate
agricultural production, increase profitability, and facilitate swift flow of goods and
services in and out of the barangays.

The proposed road segment will enhance ridge to reef connectivity, between the upland
communities and coastal barangays, thus creating supplementary livelihood for upland
farmers thru coastal activities and in return, coastal residents may also engaged in
upland farming.

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 Projected Traffic Volume over the priority road segment

1. Normal Traffic Volume - Considering the current condition of the road within the
influence area, there was no available transport system directly coming from Brgy.
Caganhao going to Brgy. Maybo, because of road sections that are not passable. The only
present transport system available is within the area of Brgy. Caganhao, starting from
the junction road (National Road) and ends up approximately 5.0 kilometres from the
beginning of the project. The subject road used to be an alternate route in the early
1980s when it was opened by the DPWH during the time of Assemblywoman Carmencita
O. Reyes now the Governor of the Province of Marinduque. Due to neglect or lack of
maintenance for more than 20 years, the road has relegated into a footpath and
unpassable to any type of vehicle.

2. Generated traffic Volume - With the improvement of the road, it will be passable to
light vehicle such as tricycle, jeepney, trucks (hauling), thus regular traffic becomes
normal situation in the area.

3. Diverted/Attracted traffic volume - Due to the improvement of the road condition,

residents who have the financial capacity will buy their personal service vehicles, thus,
increasing the volume of vehicles coming in and out the road influence area. Also, traders
with their own vehicle will influx in the area.

4. Development/Induced traffic volume - Due to the improvement of the road,

agricultural areas potential for residential areas will be changed, thus, inviting new
settlers in the area and increasing the number of active population within the area
creating additional trips of vehicles coming in and out of the road influence area.

* Combined effect of the four types of traffic is about 2% to 6% for urban and below 2% in
rural areas.

b. Technical Analysis

i. Horizontal road alignment analysis

The proposed subproject is the Improvement of Caganhao-Amoingon-Maybo Road with

a total length of 5.126 kilometer. The project will start at Brgy. Caganhao at Station
0+000 (junction road of Boac-Gasan Circumferential Road and the proposed road
project) and will end at Station 5+125.93 at Brgy. Maybo, which will connect the existing
Tampus-Daig-Maybo Provincial Road.

The proposed horizontal alignment will closely follow the existing road alignment. Road
section has an existing earth/gravel road of 4.77 kilometers and a total of 0.356
kilometers Portland Cement Concrete Pavement (PCCP), with a carriage width of 4.0
meters.

Road widening shall be provided in all road sections and mountain side cuttings will be
done to meet the required width of the proposed road for concreting. Slope protection
shall be installed in some portions to prevent damage from debris fall, erosions and soil
movements. As to survey, no element of permanent road obstructions was identified.
Different road sections for side cutting are listed below:
Side Cut (left side) : Station 0+240 to Station 0+300
Station 0+420 to Station 0+540
Station 0+677.85 to Station 0+740
Station 0+800 to Station 0+860
Station 1+020 to Station 1+030

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 13

 Station 1+100 to Station 1+120
Station 1+240 to Station 1+280
Station 1+320 to Station 1+420
Station 2+180 to Station 2+300
Station 2+340 to Station 2+380
Station 2+460 to Station 2+260
Station 2+700 to Station 2+760
Station 2+800 to Station 3+840
Station 3+900 to Station 3+980
Station 4+020 to Station 4+080
Station 4+120 to Station 4+220
Station 4+280 to Station 4+580
Station 4+620 to Station 4+880

Side Cut (right side) : Station 1+720 to Station 1+740

Station 1+780 to Station 1+880
Station 1+940 to Station 2+060
Station 2+120 to Station 2+140
Station 4+900 to Station 5+080

Figure8. Horizontal Road Alignment

ii. Vertical road alignment analysis

The proposed road section clearly define its terrain as flat to rolling and mountainous on
some sections based on topographic survey conducted. The maximum gradient derived
was 17.65% at Sta. 4+389.51 to 4+426.56, relatively higher, but meets the Geometrical &
Design Specifications and Scheme for Roads & Bridges, where a maximum grade of 18%
for mountainous terrain will be allowed for short distances only (below 50 meters).
While descending gradient is -11.88% at Sta. 2+543.56 to 2+608.58.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 14

 iii. Drainage analysis/hydraulic analysis

There are existing 17-lines of RCPC-0.60m0 that has to be replaced by 0.910m0 to meet
the minimum design standards for pipe culverts and new 10-lines of RCPC-0.90m0 will
be installed. An existing 4m x 5m spillway at Station 2+651.03 will be replaced by 4m
width x 5 meter width box culvert to prevent the area from flooding. An additional box
culvert will be constructed also at Station 0+677.85.

Mines and Geosciences Bureau (MGB) flood susceptibility map overlaying to Location
Map (Figure 9) shows that the project site is generally not susceptible to flooding.

Figure9. Flood Susceptibility Map

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 15

 iv. Geotechnical – soil and foundation analysis

The proposed project site is located within low susceptibility area to landslide based
on the Landslide Susceptibility Map as shown in Figure 10.

Figure10. Landslide Susceptibility Map

v. Structural analysis of pavement thickness, bridge structures and other major

structures.

The design of the proposed road sections shall be in accordance with the
geometrical and design specifications of the operations manual of PRDP.
Carriageway width has a clear span of 5.0 meters concrete pavement with 1.5 meter
shoulder width on both sides. Please refer to Figure 11 for the typical road cross
section.
Aggregate base course is 0.20 meter thick superimposed with a 0.15m thick concrete
pavement. A total of 3182.36 linear meter lined canal shall be provided.

Figure11. Typical Road Cross Section

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 16

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

Aggregate base course (Item 200) and boulders will be sourced at Boac River (Tampus
Section), which is approximately 9 kilometers away from the project site (Caganhao
Junction Road). See Figure 12 showing the aggregate sources.

Construction materials such as cement, reinforcing bars as well as RCPCs are available at
the hardware stores and dealers of concrete products at Municipal center of Boac which
is about 7.50 kilometers away from the beginning of the proposed project.

Dependability and availability of the required quantities of construction materials can

be assured because there are several suppliers operating in the area. Other neighboring
town has enough number of hardware’s/suppliers also. Handling of materials will not
also be a problem since they will be handled and delivered to the site by the manpower
and haulers of store proprietors.

Figure12. Aggregate Source Map

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 17

 vii. Items of work and cost (POW Summary)

The estimated total cost of the project is P 54,809,417.80 million pesos. The items of
work and the corresponding costs are as follows:

Table5. Estimated Cost per Item of Work

Item Scope of Work Total
No.
A. Earthworks 7,370,850.29
B. Sub-Base and Base Course 8,912,620.57
C. Surface Course 30,584,877.53
D. Box Culvert 1,689,568.01
E. Drainage & Slope Protection Structures 13,641,039.10
TOTAL PROJECT COST 62,198,955.50

viii.Implementation schedule of the sub-project

The construction of the proposed road project will commence as soon as the notice to
proceed is issued to the contractor. Implementation period is estimated at about 269
calendar days.

c. Operational Analysis

i. Provincial Program Management Implementing Unit (PPMIU)

The nature and intent for the establishment of the Provincial Program Management
Implementing Unit (PPMIU) for the Province of Marinduque is to establish a
government platform for a modern, climate-smart and market-oriented agriculture and
fishery sector throughout the country that aims to reduce poverty, promote inclusive
growth and to create more jobs during the implementation of this six-year program. It
was created by virtue of Executive Order No. 2014-007, series of 2014 and reorganized
per Executive Order No. 2015-006, series of 2015. The PRDP-PPMIU is chaired by the
Provincial Planning & Development Coordinator. The Program Component Action
Team is composed of qualified personnel from different offices of the Provincial
Government capable of implementing the sub – project.

The PRDP-PPMIU is charged to perform the following functions:

i.1 Overall planning, budgeting, procurement and implementation of Subprojects at
the Provincial Level;
i.2 Where applicable, may enter into appropriate covenants with MLGU/BLGU,
national government agencies/RLAs and private sector for the preparation of
the Provincial Commodity Investment Plan (PCIP) which shall become an
integral part of Subproject Implementation Management Agreement (SPIMA);
i.3 Serve as management and supervision team and focal point for PRDP
implementation;
i.4 Assist RPCO in prioritizing enterprises based on PCIP and the proponent in
preparing the business plan;
i.5 Prepare Enterprise Investment Agreement (EIA) and Implementation
Management Agreement (IMA) and execute MOA with proponent;
i.6 Develop partnership with agencies on business development services, research
and extension;
i.7 Monitor and provide regular reports on PRDP implementation;

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 18

 i.8 Develop capacity building proposal to strengthen capacities of PLGU in providing
technology, information and enterprise development support to agri-fishery
sector players.
i.9 Perform such other functions and discharge such other duties as the province
and the Department of Agriculture may require from time to time in relation to
the PRDP.

ii. Plan for management during construction, key roles and responsibilities of
assigned full time construction site personnel.

In order to ensure efficiency and sustainability, Program Component Action Teams

(PCATs) were organized as follows:

ii.1 The I-PLAN Team. I – PLAN stands for Investment for AFMP Planning at the Local
and National Levels. The team shall be responsible for the formulation of the
Provincial Commodity Investment Plan (PCIP).
ii.2 The I-BUILD Team. I-BUILD stands for Intensified Building –Up of Infrastructure
and Logistics for Development. The Team shall be responsible for the planning
and implementation of the PDRP infrastructure components.
ii.3 The I-REAP Team. I-REAP stands for Investments for Rural Enterprises and
Agricultural and Fisheries Productivity. The Team shall be responsible for
planning and carrying out the Investment Plan in Rural Enterprises and Agri-
Fisheries Productivity.
ii.4 The I-SUPPORT Team. I-SUPPORT stands for Support to Program Implementation.
The Team shall assist the component heads in overseeing and supervising the
Procurement, Finance, Accounting, Budget, Social and Environment Safeguards
(SES), Monitoring and Evalution (M&E), Geomapping and Governance,
Information Advocacy, Communication and Education (InfoACE), Global
Environment Facility-Natural Resource Management (GEF-NRM) and
Administrative Units. Together with the I-SUPPORT Component Head,
he/she shall perform to ensure provision of the necessary administrative,
technical and financial support to all the Units in carrying out their
functions and activities.
ii.5 The SOCIAL & ENVIRONMENTAL SAFEGUARD Team under the I-SUPPORT
component shall be responsible for the integration of the DRR-CCA Dimension
and the safeguarding of the influenced area of the projects of the PRDP which
will all be reflected in the Feasibility Study of the sub-projects.
ii.6 The MONITORING AND EVALUATION Team shall ensure that the program are all
efficiently implemented and that the delivery of services for this program are all
done within the prescribed time- frame.

iii. Sustainability Plan

a. Organizational Development Plan for the Operation and Maintenance Group

(See Figure Organizational Chart)

b. Operation and Maintenance Plan and Budget

The Provincial Government of Marinduque is continually challenged to obtain the

resources necessary to achieve its development vision for the people and their
communities. Trends show that national government funding will never be enough to
support development requirements of different local government units all over the
country. Being an IRA dependent province, the Province of Marinduque must develop
PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 19
 strategies and explore other avenues to become self-reliant and financially vibrant and
stable, including assurance of available funds/budget for road maintenance for the
subproject. Hence, it is imperative for the Province of Marinduque to make full use of its
revenue generation and resource mobilization powers to be able to raise the needed
resources to meet the development challenges for the coming years.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 20

 Marian M. Cunanan
PPMIU Head

Erlinda R. Paez Alex M. Marquez Rocy F. Moreno Miriam S. Sadiwa

I-PLAN Focal I-BUILD Focal Person I-REAP Focal Person I-SUPPORT Focal Person/
Person/Supervising Provincial Budget Officer
Agriculturist Project Development Officer IV Project Development Officer II Officer II

Rolando S. Josue Rolando S. Alex M. Marquez

SES Focal Person Josue Geomapping &
PG-ENRO Grievance Point Governance Unit
Person Focal Person

Jhoanna Kris N. Sager Engr. Christine Mendoza

InfoACE Focal Person Monitoring & Evaluation
PPMIU Secretary Unit Focal Person

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 21

 Resource Mobilization Strategies

1. Maximizing internally-generated revenues (e.g taxes, user fees and charges, etc.) over
which the province have full control.
1.1 Efficient real property tax collection
1.2 Upgrading of hospital facilities, equipment and medical services to enhance revenue
generation from user’s fees, PhilHealth subscription/ point of care system and sales
from drugs/ medicine and service income.
1.3 Review and re-assessment of poor performing economic enterprises with the end in
view of developing new business models that would make them operationally sound
and financially viable.
1.4 Imposition of environmental fees for guests and tourists visiting eco-tourism sites
while imposing regulatory fees for the use of access roads leading to ports and declared
tourism areas which were constructed using provincial government funds
1.5 More effective allocation of resources by pursuing programs, projects that directly
contribute to strategic goals and objectives.
1.6 Improve operational efficiency in the delivery of social services and in the overall
local government operations.
1.7 Automation of real property taxation forms, revenue collections, bills payment and
records management system.
1.8 Adoption of bulk procurement for various supplies including drugs and medicines.

2. Attracting outside resources. Explore non-traditional revenue options such as credit

financing, private sector partnership, contractual agreement through BOT/PPP and
other similar financial dial up.
2.1 Lease to private sector of public facilities to generate income from rentals.
2.2 Sale of non-serviceable assets including junk light and heavy equipment.
2.3 PPP for the operation of certain economic

3. Observance of economy/ austerity and other cost cutting measures to substantially

reduce MOOEs and personal services:
3.1 Reduction of Job Orders performing utility and janitorial services by engaging the
services of private manpower service contractors thereby improving cost efficiency
while achieving satisfactory job performance.
3.2 Gradually shifting the power supply of public buildings and facilities from electric
power to solar power to avoid power interruption and reduce repair and
maintenance cost of electricity-powered appliances and accessories.
3.3 Prioritize infrastructure that have socio-economic development impact such roads
and bridges, etc. and ensure availability of funds for its maintenance. Strengthen tie-
up with LGUs for cost-sharing.

4. Periodic Revision of the schedule of fair market values of real properties.

5. Institution of civil and administrative remedies against delinquent real properties

through levy/ auction or compromise settlement.

The PLGU will allocate fund for the estimated budget for maintenance which is
computed to be at Php75, 000.00 per km.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 22

 d. Social Analysis

i. Project Beneficiaries

The target beneficiaries of the proposed farm-to-market road are the populace of
barangays Amoingon-Caganhao and Maybo which has a total population count of 2,759
individuals, 1,381 of which are males and 1,378 are female. From this number, 498 were
identified as farmers and 503 as fisher folks making their daily income from the catch
and produces of crops. Project site population were the road project will be
implemented has a total of 35 land owners; most of the households’ head of the family
are farmers cultivating lands in the project site and the lands they administer with
coconut and other small crops.

The PPMIU scheduled a stakeholders’ consultation meeting to discuss to the project

affected persons (PAPs) the proposed project for their community which will help both
farmers and fisher folks and the local residents on their daily transportation to and from
nearby markets and public trading sites. Communication letters were sent out
addressed to the PPMIU members, national agencies and local department offices who
are engaged in the realization of the proposed FMR project.

The PPMIU first consultation was conducted last February 8, 2017 together with the
concerned agencies of DPWH, DENR, DAR, PEO, PASSO, PAGRIO, the Municipal Assessor
of Boac, the officials of the affected barangays and the PRDP RPCO SES Focal Person Ms.
Rowena Roxas (refer to Annex A-1 on attendance on the stakeholders’ consultation
meeting)

ii. Indigenous Cultural Community/Indigenous Peoples (ICC/IP)

There is no presence of Indigenous Peoples (IPs) in the proposed FMR Project. Attached
are the certificates signed by the three Barangay Chief Executives (annex B) stating that
the proposed site of the subproject in their barangay does not overlap any ancestral
domain and that there are no records of Indigenous Peoples in their barangay.

iii. Site and Right-of-Way acquisition

The proposed site for concreting of the existing barangay road has a total length of 5.126
kilometers, which is intended to provide economic assistance to the residents and
commuters of the three (3) affected barangays of the project.

The road improvement/upgrading project will partially affect 43 parcels of land owned
and managed by the residents and tenants of Barangays Caganhao, Amoingon and
Maybo of Boac. All of the affected parcels of land are being utilized for perennial crops
and upland annual crops production. These 43 parcels of land are possessed by 35 land
owners inherited or bought, but majority of them have not made the legal transfer of
ownership. Most of these lands are being managed by the heirs of the deceased land
owners, others are tenant and administrators. Deed of Donation including Waiver of
Rights and Quit Claim were carefully discussed and coordinated to them with the
presence of the PPMIU team, representative from concerned national and municipal
agencies, barangay officials and were signed by the respective owners, and authorized
tenants.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 23

Table6. List of Project Affected Persons (PAPs) (Survey to be conducted for final area affected by the project)

Lot Total Land

Name of HH Head of PAPs Area to be
Number Holdings Remarks
and Location Acquired sq.m.
sq.m.
BARANGAY CAGANHAO
1. Ines Laceda 2715 3.00
2714 52.00
2712 72.00
2713 4.00
2. Germando Malvar 2741 25.00
3.Jorge Caballes 2777 51.00
4.Hector De Leon, Jr. 2784 27.00
5.Juan Lolong 2790 585.00
6.Epifanio Malvar 2789 405.00
7.Sps. Gerrico Labrador & 2837 223.00
Cleotilde Labrador
8.Ma. Asuncion Jambalos et.al 2814 495.00
9.Danilo Lozano 2793 755.00
10.Joselito Roque 2793 427.00
11.Eleuterio Maaño 2802 1,127.00
12.Santiago Janda, Sr. 2803 782.00
13.Nicolasa Jandusay 2804 660.00
14.Abundio Lelang et.al. 2805 1,504.00
15.Aurea Lelang 2806 475.00
16.Cleotilde Lelang 2807 538.00
17.Rosalina Lelang 2808 465.00
BARANGAY AMOINGON
18.Narciso & Pedro Jambalos 2587 1,106.00
19.Letecia Lazares 2485 410.00
20.Gregorio Olivar 2586 553.00
21.Dr. Hector Sulit et.al. 2488 630.00
22.Gregoria Laceda 2489 130.00
23.Zoilo Jambalos 2587 3,143.00
24.Eustaquio Olivar 2490 813.00
25.Agustina Sapuco et.al. 2492 1,040.00
26.Hrs. of Renato Sulit et.al. 2493 3,447.00
27.Petra Malalad 2593 1,246.00
28.Natividad Peralta 2537 2,901.00
29.Pedro Mariposque Jr. et.al. 2541 3,083.00
30.Rolando Sto. Domingo 2542 325.00
31.Ruben Marte Villadolid 2545 1,618.00
32.Gabriel Historillo 2568 2,618.00
33.Lourdes Abayon et.al. 2564 907.00
34.Belen Marte 2569 2,704.00
BARANGAY MAYBO
35.Nidalie Rose Halversen 11634 1,215.00

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 36.Apolonia Mayores 11637 640.00
37.Alicia Luchauco 11644 606.00
38.Efrenia Historillo 1138 125.00
39.Alfonso Historillo 1138 pt. 122.00
40.Rodolfo Historillo 1138 pt. 86.00

iv. Damage to standing crops, houses and/or properties

During the initial site validation, SES team was able to identify numbers of box of
culverts and some timber electric posts along the affected area of the project.
Temporary bamboo fences were also observed on the area of the PAPs, but can be
communicated for transfer or replacement with the household or owner once the final
validation and survey is conducted.

v. Physical displacement of persons

No person will be physically displaced as a result of road construction.

vi. Economic displacement of persons

Considering that the proposed Improvement of Farm-to-Market Road Sub-Project will

be implemented in an existing road, therefore it will not result in the relocation of any
house and other properties and will not economically displaced any person during the
implementation of the project.

vii. Grievance Redress Mechanism (GRM)

The designation of the Grievance Point Person for the province of Marinduque was thru
a PPMIU meeting. The person designated for the position was carefully assessed by the
PPMIU head and the sub-components focal persons. The main goal of having a GPP in
the province is to establish a good connection between the citizens and the government
not only for PRDP projects but for all government projects as well. During the initial
survey and site visit, PAPs concerns were immediately resolved by the PPMIU team
together with the Municipal Assessor and Municipal Agriculturist and the National
partner agencies who were present during the consultation meetings in the three
barangays.

The GPP will be responsible for the initial screening of feedbacks and complaints, as well
as, the organization of preliminary meetings with concerned parties to establish the
critical path to resolution. A registry of feedback or grievances received will be
maintained by the GPPs for reporting to the RPCO, specifically for associated follow-up,
resolution or non-resolution of issues. Feedback/grievance registries will be
consolidated by the NPCO for discussions on how to further enhance PRDP systems
based on the feedback and complaints. (Attached EO on GPP designation)

e. Environmental Analysis

i. Natural habitat

The proposed project site is not within the declared or proposed protected area of flora
and fauna habitat because there is no identified important wildlife species present in the

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 25

 project site. The vegetation growing along the roadside are mostly fruit trees, coconut
palms, second growth of miscellaneous forest tree species and shrubs. The surroundings
of the proposed road will not be much affected because all excavation will be used as
filling materials/embankments to portion of roads that needs embankments.

ii. Physical Cultural Resources

There are no physical cultural resources present within the proposed road and its road
influence area.

iii. Terrain, Soil Types and Rainfall

The general feature of the land ranges from flat terrain to swelling and rolling, but most
parts are hilly and mountainous.

Generally, Boac soils have medium to high fertility. But the land unit that covers 6,749
hectares is the Complex Volcanic Mountain which occurs in complex slope ranging
from rolling to moderately steep to steep highland /mountain. The soil of this unit is
moderately deep to deep, moderately well-drained clay to clay loam texture with
adequate organic matter content. The fertility level is moderate. The dominant land
uses are forest, patches of kaingin and few newly open narrow cultivated to
irrigated paddy rice. The influenced area of the project has land unit category of Low
Sedimentary Hills, with land area of 2,730.5 hectares present in Barangay of Maybo with
elevation that varies greatly with slopes usually ranging from 8-18 percent slope
subjected to slight erosion. The soils are moderately deep to deep well-drained clay to
clay loam texture with soil reaction of medium acid to neutral and high fertility level.
The vegetation covers are coconut, fruit trees, buri palm and other forest trees species.

As to the rainfall, the municipality has short dry season that starts on February and ends
in April, and experiences more months of heavy rainfall from May to end of January. The
rainiest month varies from October to December due to climate change.

iv. Hazard/risk assessment (Drainage Situations, Erosion, Flooding Potential)

During heavy rains, it is expected that storm water runoff will increase as a result of a
wider span of cleared area for the ROW and the increase of run off coefficient. Flooding
on the road surface will be mitigated through the construction of drainage canal leading
the runoff immediately outside of the roadway to the intercepting outlets.

To minimize and prevent soil erosion and landslide, measures such as construction of
Trapezoidal Canal, and Riprap/slope protection on the shoulders of the road will be
considered.

The Provincial Government thru the Provincial Agriculture Office has conducted training
on Farmers Field School (FFS) on Rice Production attended by 25 farmers from
Amoingon. They were informed of the cultural practices and modern production snf
management from land preparation, planting and harvesting of rice. The farmers also
learned how to identify pests and diseases of rice and how to immediately control the
spread and or the presence of them.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 26

 v. Status of environmental clearances – CNC/ECC

The PPMIU under SES Unit of this province primarily led in facilitating the requests and
applied for the ECC of the subproject; documentary requirements such as Permit to Cut
Coconut Trees; Permit to Cut Forest/Fruit Trees; Certification from DAR for CLOA
Holders; Certification of Good Source of Quarry Materials; Certification of Non-Over
quarrying of Materials; Certification of Suitable Dumpsite and Bunkhouse; and other
related environmental requirements for issuance of NOL 1. Said documents have been
requested for issuance from the respective and concerned agencies. The Certificate of
Non Overlap was issued by the Barangay Chief Executives for the Indigenous Peoples
last September 14, 2017.

Certificates on quarrying concerns will be submitted after the project is awarded to the
winning contractor who will secure of the sources on quarrying they will use in the
implementation of the project.

vi. Social and Environmental Impacts – attach ESMP (Annex E-1)

f. Financial Analysis

i. Total Project Cost by Financing Source and Cost Sharing (WB LP, LGU,
Beneficiaries)

The total project cost amounted to Php 62,198,955.50 which 80% or

Php49,759,164.40 will be taken from the Loan Proceeds, 10% or Php 6,219,895.55
from GOP and the remaining 10% or Php 6,219,895.55 will be the LGU’s Equity.

ii. Total Project Cost Breakdown

The total direct costs which include materials, equipment and labor is estimated at
Php 48,291,114.52. On the other hand, indirect cost amounts to
Php 12,439,791.10 Indirect cost is composed of the following:

 OCM - Php 3,380,378.02

 Contractors Profit - 3,863,289.16
 Taxes - 6,664,173.80
Sub-Total Php 13,907,840.98
Total Php 62,198,955.51

iii. Status of LGU equity availability and LFC certification

The Provincial Government of Marinduque has available funds for the counterpart of
this particular project. Attached is the Sangguniang Panlalawigan Resolution No. 164
Series of 2017 Approving the Priority Development Projects to be Funded out of the
20% Community Development Fund of the Province of Marinduque for CY 2017
Involving the Appropriation of One Hundred Twenty Million Six Hundred Fifty
Thousand Nine Hundred Eleven Pesos (P120,650,911.00), Subject to some
Administrative Provisions, which includes the appropriation of P20,000,000.00 as
counterpart equity for road network development programs in the province.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 27

 f. Economic Analysis and Evaluation

iv. Economic Benefits

The following are the benefits accrued for the project:

Vehicle Operating Cost Savings

The Vehicle Operating Cost (VOC) for the different types of vehicles came from the
Department of Public Work and Highways. The VOC Savings is derived by multiplying
the difference in VOCs for the surface type with and without project, the projected
annual average daily traffic per vehicle type and the actual road length. This savings
contribute to the maintenance cost of all vehicle types and will result to the increase in
the number of vehicles operating in the area.

Savings in Hauling Farm Output

The saving in hauling farm output is derived by multiplying the total output of the farm
delivered to market and the projected hauling cost. Based from the interview with the
farmers, their agricultural crops have very high potential to increase its productivity but
due to the present road condition they are hesitant to apply more investment such as
farm inputs. Thus, with the project, the farmers will have the confidence to invest more
capital in their farms because there will be no worries of high crop losses due to
transport. The cropping season will be intensified compared before that they just
harvest from their farms once in a year.

Savings in Travel Time of Commuters

The savings in travel time of commuters is derived by multiplying the projected number
of commuter from active population, the total time saved by these commuters and the
average labor cost of the area. The commuters will be able to increase the number of
days shared for work which may result to an increase in household income.

Benefits from Newly Cultivated Agricultural Land

The benefit from newly cultivated agricultural land is derived by computing the
difference of the projected output value of a newly opened area against its total
production cost. With the project, farmers will be able to increase farm productivity by
practicing diversified farming such as coco based farming system and expand their
cashew production areas.

Savings in Reduction in Post-Harvest Losses

The savings in reduction in post – harvest losses is derived by multiplying the total
volume of harvest marketed and the estimated post-harvest losses. With the project,
post-harvest losses due to transport from farm production area to market centers will
reduce because the number of vehicles and trips will be increased.

a. Production Level within the direct road influence area

The table below shows the various agricultural crops that are widely produced and
marketed within the project influence area. Among the crops, copra holds the bulk of the

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 production comprising about 64.97% of the total volume whereas banana come in least
with only 9.37%.

Table7. Agricultural Production Areas to be served by the Concreting

Caganhao-Maybo Farm-to-Market Road
Average Mineral/
Production Annual Organic Seed/ Salt % of
Area
Barangay Commodity per Ha per Production Fertilizer Requirement Production
(Has)
year (sacks) Requirement (sack) Sold
(sacks) (sack)
Caganhao- Rice 15.0124 160 2401 90 30 80%
Amoingon- Copra 580 120 69,600 1740 1972 100%
Maybo Banana 38.55 113 4356 50 20 85%
Note: 1 sack is equivalent to 50 kgs.

b. Population within the direct road influence area

There are 814 households, which is composed of 3,286 individuals that will
directly benefit from the sub-project. Of these 3,286 individuals, about 30.5% or
1,002 persons are economically active.

Table8. Population within the direct road influence area

Average Annual Economically
Barangay Population Household Population Growth Active
Rate Population
Amoingon 1,316 228 2% 70%
Caganhao 1,040 145 2% 70%
Maybo 930 178 2% 70%

c. Existing vehicular traffic in the Road Influence Area

Several modes of transportation are also present in the area. Among these, motorcycles
composed the highest number with 12 units in operation whereas trucks are the least
with only 2 units. These various vehicles are expected to increase in number as the years
pass due to the improvement of the road.

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 Table9. Annual Average Daily Traffic in Barangays Caganhao-Amoingon-Maybo
Observed
Existing Average
No. of Ave. Ave. No. Transport
Mode of Operating Ave. Traveled Origin to
Barangay Vehicle Loading of Daily Fares of
Transport in Days Per Distance Destination
Units Capacity Trips Passengers/
the Area Year
Cargo
Caganhao- Jeepney 2 300 20 sacks 4 Php10/sack 5.1 km./ trip Caganhao-
Amoingon- cargo Amoingon-
Maybo Truck 2 245 50 sacks 3 Php10/sack Maybo to
cargo Poblacion
Motorcycle 12 330 2 sacks 8 Php15/sack & Vice
Versa
Tricycle 10 330 4 sacks 6 Php15/sack

d. Transport Prices by Animal/Human Haulers

With improved road condition, farmers and local residents will have the option to
transport their produce farm inputs and other marketable commodities to the value
chain (market centers) via vehicles rather than using the horse, carabao or carrying
them manually. As of present, transport cost by animal hauling is pegged at
Php50/sack. With the improved road, the transportation cost is projected to reduce
significantly to Php12/sack or Php0.24/kilogram.

Table10. Transport Prices by Animal/Human Haulers in

Barangays Caganhao-Amoingin-Maybo
Type of Ave.
Origin to Transport Transport
Barangay Animal/ Loading
Destination Distance Price
Human capacity
Caganhao- Carabao/ From farm to 5.1 P50/sack 3 sacks
Amoingon- Horse nearest
Maybo barangay rd.
Note: 1 sack equivalent to: 50 kgs

e. Commuter Time Savings

With the improved road condition, commuters within the influence area are able to
benefit due to reductions in their travel time. Without the project, travel time would
take about 30 minutes but with the introduction of the new road, travel time is
projected to significantly reduce to 10 minutes only, incurring a time saving of 20
minutes per person.

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 Table11. Average Travel Time of Commuters in
Barangays Caganhao-Amoingon-Maybo
No. of
Travel time % Share
Travel time trips No. of Average
WP of Saved
Barangay WOP per workin Daily Wage
(in Time for
(in minutes) person g days Rate
minutes) Work
per day
Caganhao- 120 (walking) 15 2 264 125% Php250
Amoingon
-Maybo

f. Benefits of Newly Cultivated Agricultural Land

The rehabilitation of the road will bring about also the cultivation of potential land
areas for agriculture. With this project, about 20 hectares of land can be developed
and use as rice fields. The revenue generated from production of this new land will
greatly benefit local farmers in the area.

Table12. Newly Cultivated Agricultural Area in Barangays Caganhao-Maybo

Potential Land Dev’t Production Marketing Cost
Farm Gate
Land for Cost per Cost per per
Barangay Crop Price
Cultivation Hectare Hectare sack/cavan
(Php/sack)
(Ha) (Php/Ha) (Php/Ha) (Php/sack)
Caganhao- Palay 20 Php850 or Php50,000 Php20,000 Php12.00
Amoingon- Php17/kg
Maybo

g. Post-Harvest Losses in Agricultural Production

With the improved road condition, local farmers are expected to accrue benefits
resulting from the reduction of physical losses in their crops. About 1.5% to 3% of crop
losses for rice, copra, corn and banana are projected to be avoided once the road project
is pursued.

Table13. Reduction in Post-Harvest Losses Per Crop in

Barangays Caganhao-Amoingon-Maybo
Crop/ Estimated Reduction in
Price
Barangay Fish/ Post-Harvest Losses WP
(Php per kilogram)
Forest (in %)
Caganhao- Palay Php 17.00 2%
Amoingon- Copra Php24.26 2.3%
Maybo Corn Php25.00 3%
Banana Php 25.00 2%

v. Economic Costs

The capital cost (economic) of the project is Php12,857,250.00 which comprises the
materials, labor and equipment costs as shown in Table 12. Meanwhile, the estimated
budget for maintenance for the 4.56 kilometer road is computed to be Php96,652.81
annually covering the cost of vegetation control, clearing and repair of culverts, clearing
of side ditches, and climatic loss of travel. Periodic maintenance which is undertaken
every six years is estimated at Php154,644.50

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 Table 14. Cost and O & M Cost Breakdown
Total Investment Operating and
Year Total Costs
Cost Maintenance Cost
0 12,857,250.00 12,857,250.00
1 96,652.81 96,652.81
2 96,652.81 96,652.81
3 96,652.81 96,652.81
4 96,652.81 96,652.81
5 96,652.81 96,652.81
6 154,644.50 154,644.50
7 96,652.81 96,652.81
8 96,652.81 96,652.81
9 96,652.81 96,652.81
10 96,652.81 96,652.81
11 96,652.81 96,652.81
12 154,644.50 154,644.50
13 96,652.81 96,652.81
14 96,652.81 96,652.81
15 96,652.81 96,652.81
16 96,652.81 96,652.81
17 96,652.81 96,652.81
18 154,644.50 154,644.50
19 96,652.81 96,652.81
20 96,652.81 96,652.81

h. Direct Jobs from Construction

The LGU will make sure that 40% of skilled laborers and 60% of unskilled laborers will
be coming from the beneficiary barangays or nearby barangays within the municipality.

1. No. of Unskilled Laborers to be hired

The sub-project implementation will be hiring 50 unskilled laborers/workers

that will be assigned on the installation of drainage facilities, Heavy equipment
helpers and, clearing/cutting of bushes/trees.

2. No. of Skilled Laborers to be hired

Twenty Five (25) skilled laborers will be hired for the sub-project
implementation. They will be assigned as team leaders for various works i.e.
installation of drainage facilities, bush clearance and operators of various heavy
equipment that will be used in the sub-project.

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 i. Adjustment of Financial Values to Economic Terms

Using the necessary conversion factors estimated by NEDA, financial cost of the
project is adjusted to economic cost. The table below shows the details of this
conversion:

Table15: Conversion of Financial Values to Economic Terms

Financial Cost Conversion Economic

(current factors Cost
prices)
Materials /a 25,542,065 12% 23,090,027.04
Equipment /b 14,176,809 14,176,809.22
Labor:
Skilled 1,034,802 1,034,801.93
Unskilled /c 1,800,219 0.6 1,080,131.61
Subtotal Labor 2,835,021.28 2,114,933.54
Total Base/Direct Cost 42,553,895.81 39,381,769.80

Overhead, Contingencies and Miscellaneous (OCM)

/d 2,978,772.71 12% 2,659,618.49
Contractor's Profit /e 3,404,311.66 3,404,311.66
Total (Base/Direct Cost+OCM+CP) 48,936,980.18 45,445,699.95

Taxes /f 5,872,437.62 0.00

FS and DED Preparation+ Engineering Supervision
/g 4,255,389.58 12% 3,799,454.98

Total Cost 59,064,807.38 49,245,154.94

ii. Results of the Economic Analysis

The computed EIRR of the proposed sub-project is 29.30% with an ENPV of Php
45,491 both evaluated at 15% discount rate. Also, Benefit-Cost Ratio is 1.91.
Given these results, it is found that the project is economically viable and is worth
pursuing.

iii. Economic Sensitivity Results

The sensitivity analysis is done to test the susceptibility of variables that directly
affect a project’s economic viability. Below are the results of the sensitivity test:

Table16. Results of Sensitivity Test

No
Delay of benefits
Sensitivity Costs Increase Increase of Benefits Decrease of Benefits
Benefits deriving
Analysis Base
from
(20-year Scenario 2
1 new
period) +10% +20% +50% +10% +20% + 30% -10% -20% - 30% year
year agri
s land
EIRR 29.30% 27% 24% 20% 32% 35% 38% 26% 24% 21% 20% 15% 23%
ENPV 40,49 35,49 20,50 55,03 64,58 35,94 26,39 16,85 21,29
(000'PhP)
45,491 4 6 5 7 3
74,129
5 8 2 9
160 26,608
BCR 1.91 1.74 1.59 1.27 2.10 2.29 2.48 1.72 1.53 1.34 1.43 1.00 1.53

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 The above table shows that in all test case scenarios, EIRR, ENPV and BCR results
remain at acceptable levels. Hence, the project is found to be generally robust to
changes.

Even with a delay of benefits for two years, the indicators were able to maintain its
stability, posting positive and acceptable outcomes as a whole.

V. Conclusions and Recommendations

j. Conclusions

The findings of this study display that the project is found to be feasible from the
marketing, technical, operational, social and environmental, financial and economic
viewpoints.

SUMMARY AND CONCLUSION

The provision of physical infrastructure support system is a vital component in the

development of the area. It is expected to enhance mobility of basic goods and services,
and the production of agricultural products. On major concern of many investors is the
accessibility of an area particularly the presence of improved road facility.

The road development project is specific to the road section from Barangay Caganhao to
Barangay Maybo. Although some sections are prone to landslides with the lack of
protection works, it is highly proposed for improvement as this will offer permanent
accessibility to the highly agricultural land of the area.

The Caganhao-Maybo Barangay Road, which was constructed in the late 1980s, gives us
a picture of how roads play an important role in the growth and development of rural
areas.

The household heads (primarily small farmers) from the four barangays of the road's
influence area benefit both directly and indirectly from the project. The opening of the
road will not only give them the opportunity to have social contact with people outside
their isolated area but also help them solve their economic problems.
In addition, due to the opening of the road, farmers and other members of their
households were given the opportunity to venture into other types of employment aside
from farming in and outside of the road influence area. With additional sources of
income plus a higher level of agricultural production, household income will increase.

k. Recommendations

The improvement of the road facility from Barangay Caganhao to Barangay Maybo will
include such item of works as concreting, lowering of grades, provision of structured
protection works, installation of the necessary concrete canal and drainage facilities.
The project is expected to stretch to at least 5.126 kilometers in length with the
standard width of 4.00 meters and thickness of 0.15 meters. For the project to be
completed and rendered passable, an appropriation amounting to Php 48,415,987.82 is
required.

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 The province of Marinduque is highly recommending the implementation of this road
project as it is seen to contribute largely to the welfare of the farmers and local populace
within the influence areas of Caganhao, Amoingon and Maybo and to the province on the
overall.

VI. Attached ANNEXES

 Annex A Minutes of the Consultation Meetings andPhotos

during the site Validation

 Annex A-1 Attendance on Consultations

 Annex A-2 Signed Environmental and Social Safeguards

Screening Form For Subproject

 Annex B Certification from Barangays on Non-overlap or

presence of IPs in the project influenced area

 Annex C Executive Order on Creation of the PPMIU Team

 Annex E-1 Environmental Safeguard Management Plan

(ESMP)

 Detached Documents

 Parcellary Map
 Program of Works (POW)
 Detailed Engineering Design (DED)
 Certification of Availability of Funds
 Memorandum of Agreement(Certified Photocopy)
 Geo-tagged Photos of the Project Site

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 35

 ANNEXES

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 36

 Annex A

Minutes of the PRDP SES/I-BUILD Public Consultation in Caganhao-Amoingon-

Maybo, Boac FMR

Meeting Venue : Caganhao, Amoingon and Maybo Barangay Halls

Date and Time : February 8 and 22, 2017

February 8, 2017 at 9:45 am

The public consultation conducted by I-BUILD and SES with I-SUPPORT of the PPMIU at
the Caganhao Barangay Hall in Boac was attended by the barangay officials from the
three (3) affected barangays of the proposed FMR project of the provincial government
to the PRDP under the I-BUILD sub-component. Partner agencies and offices of DENR,
DPWH, DAR, PEO, PASSO and PAGRIO were also present during the consultation.

PPMIU staff, InfoACE Focal Person called the names of the landowners who will be
directly affected by the project. The names were given by the Municipal Assessor Engr.
Rick Nieva who made assessment on the parcels of lands the project will influenced to.
Barangay Chief Captain of Maybo, Mr. Ruperto Hizole confirmed one of the landowners
in Maybo to be in support of the project and that will help in the fast process of the
needed documents. Barangay Chief Captain of Caganhao, Mr. Roel Guevarra, however,
raised some concerns of the landowners in his barangay who will be affected by the
project. He mentioned that the owner/tenant of the specific parcel of land is concerned
on who will be shouldering the expenses and processing on the cutting and permit to
cut coconut trees and other fruit bearing trees in his property.
DENR representative clarified to the landowners that the application to cut trees will be
processed by the provincial government and so as the expenses for the processing of the
papers on cutting and transferring of trees. Barangay Captain Guevarra inquired on the
cut trees, as to who will benefit to it. A resident and landowner of a parcel of land in
barangay Amoingon asked the DENR on the price of the trees (bearing trees and
registered mahogany trees). DENR responded that agricultural crops have
corresponding value but trees will be confirmed to the regional office or the PCA.
Barangay Captain of Maybo mentioned that there are two (2) houses who own a deep
well spring (balon) along the way of the project. Mr. Alex Marquez-I-BUILD Focal Person
suggested that the springs be relocated to the nearest source for used of the community.
The meeting ended at 12 noon.

February 22, 2017 at 10:45 am

Engr. Rick Nieva facilitated the introduction of the project by showing the landowners
of Caganhao the road map of the project from the national road to the existing roads
where the 10 meter road project is being proposed. He was able to clarify and answer
the concerns of some landowners and tenants on the benefits of the road
improvement/upgrading project in their barangay under the PRDP.

Ms. Susan Bonode of the Provincial Agriculture’s Office discussed the requirements for
the project to be approved by the RPCO, PSO and NPCO. Engr. Nieva continued the

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 37

discussion on the requirements needed for the project’s approval, one of which is that
the parcel of affected land can or maybe donated or waived by the owner, or if there
would be cases of compensation, the provincial government is willing to do its part for
the realization of the project. Documentary requirements on road-right-of-way such as
notarization of deed of donation, waiver of rights and quit claims will be shouldered by
the provincial government, wherein if parcel of land donated it will be removed in the
taxation of the owner.

Ms. Rowena Roxas, SES Specialist that there will still be a need for the consent of the
heirs for replacement of the estate clearance.

Engr. Rommel Montiano of the Provincial Engineering Office said that the 2 meters of
road needed can be taken on both sides, 1 meter each or 2 meters on one side alone, if
the owner will agree, and if the other side has insufficient area to donate for the project.
A landowner raised his concern on the portion of land to be affected by the project. Ms.
Roxas clarified that only the influenced portion of land will be taken from both or one
side of the road.

Engr. Montiano requested for clarification on the exact measurement of the land to be
affected by the project, it was immediately resolved by the Engr. Nieva that they will
request for GPS on validation of the Caganhao-Amoingon-Maybo FMR project.
The group, after settling the concerns of Barangay Caganhao landowners went straight
to Barangay Amoingon to resolve the questions and apprehensions of the affected
landowners of the project in the barangay. Ms. Bonode started the consultation with
Engr. Rick Nieva by showing the road map of the project in Barangay Amoingon. Engr.
Nieva made a confirmation on landowners who are already convinced of donating their
parcel of land for the implementation of the project, he mentioned Gregorio Olivar, Dr.
Hector Sulit, and Augustina Sapuco to have agreed to donate the affected parcel of land
in their properties. Mrs. Aida Mariposque however who still have some concerns on
their land which are planted with registered mahogany trees and is already inherited by
their children, but she is willing to donate the parcel of land that the project will be
affected.

Ms. Roxas made mentioned that the owners have the right to donate or not of their
properties for the project.

Mrs. Aida Mariposque suggested the presence of the owner when survey is being done.
But she is in full support for the project.

The consultation ended at 12:15 p.m.

The team directed to Barangay Maybo after the meeting with the Amoingon landowners
and barangay officials. Ms. Susan Bonode presided the meeting at 1.45 pm by discussing
the project with Engr. Rick Nieva showing the road map of the project in their barangay.
There are landowners who need the issuance of an SPA for the decision on donating,
waiving or compensating the parcel of lands affected by the project.

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 38

Chief Captain Ruperto Hizole assured support to the provincial government on the
realization and implementation of the project. The meeting ended at 2:15 in the
afternoon. The team had an exit conference at the provincial planning office.
Prepared by:

JHOANNA KRIS N. SAGER

PPMIU Secretary
Certified Correct:

MARIAN M. CUNANAN
PPMIU Head

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Public Consultation with Land Owners and Stakeholders of Caganhao-Amoingon-Maybo
FMR Project

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 40

Public Consultation with Land Owners and Stakeholders of Caganhao-Amoingon-Maybo
FMR Project

PLGU-Marinduque | Feasibility Study: Improvement of Caganhao-Amoingon-Maybo FMR 41