Feasibility Study on Widening of

Gapan-San Fernando-Olongapo (GSO) Road

(Sta. Cruz, Lubao-Dinalupihan Section)

CHAPTER 3
THE ROAD INFLUENCE AREA PROFILE

3.1 THE PROJECT ROAD INFLUENCE AREA (RIA)

The direct influence area of the project road comprises the municipality of
Lubao and San Fernando City of Pampanga province, the entire province
of Bataan and Olongapo City of Zambales province.

The project road passes through flat area. Heavy settlements are noted
at the initial section of the project road in barangay Sta. Cruz, Lubao.
There is also significant number of commercial and business
establishments at Sta. Cruz area. In addition there is steel post
transmission lines noted at the right side of the road. Beyond this point,
are settlements sporadically situated along both sides of the road.

The Gapan-San Fernando-Olongapo Road particularly the Sta. Cruz,

Lubao-Dinalupihan Section has been experiencing traffic congestion due
to intermittent flooding and to economic and industrial development in the
project area. Bataan province is the site of seven industrial
estates/economic zones. Two large economic zones, the Clark Special
Economic Zone and the Subic Bay Freeport Zone are situated adjacent to
the project area.

With the improvement of the road, access to Metro Manila and inter and
intra provincial/regional travel will be significantly improve, as traffic
congestion will be relieved thus, providing a strong stimulus for the
industrial commercial and agricultural activities in the area.

3.2 POPULATION SERVED

The RIA has a total combined land area of approximately 178,022

hectares distributed among 332 barangays. As of 2000, the actual total
population was placed at 1,099,475. Bataan province had the highest
population which constituted 51% of the total RIA’s population while
.Lubao had the lowest share of RIA’s population at 11%. Population
density was recorded at 6 persons/hectare. Table below shows the land
area and population of RIA.
Table 3.2-1
2000 Population,
Road Influence Area

Province/Cities/ Land Number of Populatio Population

Municipality Area Barangays n Density
(Ha.) 2000 (Person / Ha)
Bataan 137,269 237 557,695 4.06
Pampanga
Lubao 15,577 44 125,699 8.07
San Fernando City 8,119 34 221,857 27.32
Zambales
Olongapo City 17,030 17 194,260 11.41
RIA 178,022 332 1,099,475 6.18
1
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)

3.3 PRESENT ECONOMIC DEVELOPMENT ACTIVITIES

3.3.1 Agriculture

Agriculture is the dominant activity in the RIA. The leading major crops
grown are palay, corn, banana, rootcrops and leafy vegetables. In 2005,
palay registered the biggest share in terms of area planted at 30,382.18
hectares with an estimated total production of 113,127.90. This was
followed by rootcrops with a total planted area of 841.10 hectares and total
production of 12,616.00 m.t.. Among the influence area, Lubao had the
highest area planted with 13,970.00 hectares followed by the province of
Bataan with 14,242.80 hectares.

Livestock and poultry raising are mostly done on a background scale.

Cattle, duck, swine, and chicken are raised commercially commercially. As
of 2000, the total livestock and poultry population totaled 256,083 and
1,661,787 heads, respectively. Swine registered the highest production at
1,238,476 heads or 74.53% of the total poultry population.

Fishing is a major source of livelihood in the province of Bataan.

3.3.2 Trade and Commerce

The total number of registered business establishments within the road

influence area was around 8,552 in 2001. Commercial establishments
include restaurants, sari-sari stores, drugstores, boutiques, computer
shops, and hardware among others. San Fernando, Dinalupihan, Balanga
City, Sta. Cruz, Lubao and Olongapo City are the centers for commercial
and trading activities. Higher level of educational facilities and bigger
hospitals are also located in San Fernando and Olongapo City.

Trade and commerce and other economic activities in Bataan are

discussed in detail in Chapter 2 of this report.

3.4 DEVELOPMENT POTENTIAL OF THE RIA

3.4.1 Population Forecasts

Population forecasts for the RIA were estimated by applying the

corresponding growth rates for the influence municipalities / cities as
forecast in the “Population Projections for the Philippines and its Regions,
Provinces and Cities / Municipalities: 1980-2030,” medium assumptions,
prepared by the National Census and Statistics Office in collaboration with
the Inter-Agency Committee (IAC) on Population and Housing Statistics.

Population in the RIA is projected to reach 1,657,653 in 2033 at an annual

growth rate of 1.02% during the 20-year period. The total RIA’s population
assessment period and its corresponding annual growth rates are shown
in the succeeding Tables.

2
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)

Table 3.4.1-1
Population Development

2000 2007 2013 2018 2023 2028 2033

BATAAN 557659 640318 740922 756263 806953 850379 889782
PAMPANGA
LUBAO 125699 139492 149663 157625 165157 171819 178182
SAN FERNANDO CITY 221857 248367 268221 283806 298608 311701 324209
ZAMBALES
OLONGAPO CITY 194260 214579 229272 240371 250315 258298 265480
RIA 1099475 1242756 1352078 1438065 1521033 1592197 1657653

Table 3.4.1-2
Population Growth Rate (%)

2000-2007 2007-2013 2013-2018 2018-2023 2023-2028 2028-2033

BATAAN 1.99 1.61 1.42 1.31 1.05 0.91
PAMPANGA
LUBAO 1.50 1.18 1.04 0.94 0.80 0.72
SAN FERNANDO CITY 1.63 1.29 1.14 1.02 0.86 0.79
ZAMBALES
OLONGAPO CITY 1.43 1.11 0.95 0.81 0.63 0.55
RIA 1.76 1.42 1.24 1.13 0.92 0.81

3.4.2 Income Forecasts

The latest available statistics on family income is the 2000 provincial

estimates by the National Statistics Office (NSO). This Study estimated
the municipal income by applying the provincial average income per
household to the number of families in the municipality. Based on the 2000
average income, the projected per capita income has been established
following the GRDP projected estimates. The per capita income estimates
and the corresponding growth rates for the RIA are shown in Tables
below.

Table 3.4.2-1
Per Capita Income

2000 2007 2013 2018 2023 2028 2033

BATAAN 23916 27225 31112 35113 39845 45781 52977
PAMPANGA
LUBAO 15108 17795 20865 23987 27720 32262 37668
SAN FERNANDO CITY 23286 27188 31672 36243 41708 48379 56319
ZAMBALES
OLONGAPO CITY 26759 31664 37282 43057 49755 58744 69203
RIA 23284 26926 31135 35444 40576 46934 54584

Table 3.4.2-2
3
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)
Income Growth Rate

2000-2007 2007-2013 2013-2018 2018-2023 2023-2028 2028-2033

BATAAN 1.87 2.25 2.45 2.56 2.82 2.96
PAMPANGA
LUBAO 2.37 2.69 2.83 2.94 3.08 3.15
SAN FERNANDO CITY 2.24 2.58 2.73 2.85 3.01 3.09
ZAMBALES
OLONGAPO CITY 2.43 2.76 2.92 2.93 3.38 3.33
RIA 2.10 2.45 2.63 2.74 2.95 3.07

3.5 FUTURE ECONOMIC ACTIVITIES

Future economic activities in the RIA such as trade and commerce will
continue to concentrate in town centers and cities such as Olongapo City,
San Fernando, Dinalupihan and Sta Cruz, Lubao.

Farming and fishing will remain as an important source of income and

livelihood. On the other hand the economic zones in the project area are
expected to continue to attract investors which would provide employment
opportunities to the local residents.

With the widening of the project road it is envisioned that other influenced
municipalities will be unbarred from new investment opportunities.
Likewise travel time to and from work, to and from amenities like schools,
hospitals, government and private business establishments will be
reduced substantially.

3.6 RELATED DEVELOPMENT PROJECTS

A. The W Growth Corridor

The W Growth Corridor defines Central Luzon's key growth areas. It is a

strategic approach in promoting Central Luzon as an investment
destination. It comprises Central Luzon key investment area for tourism,
industry and agriculture. These areas represent the growth municipalities
of the region, which when plotted on a map form the shape of a W.

Figure 3.6-1: The W Growth Corridor

4
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)

The W Growth Corridor is also the spatial representation of the vision for
Central Luzon which is designed at directing certain economic activities to
strategic areas where they can be globally competitive.

The Central Luzon W Growth Corridor concept was derived from the
region's articulated vision of becoming:

• An Industrial Heartland of the Philippines and the Asia-Pacific Region

• An International Transshipment Hub
• A World Conference Center; and
• A Showcase of Competitive and Vibrant Agricultural Sector

The W Growth Corridor is one of the most dynamic and business-ready

destinations, because of its:

• Strategic Location
• Accessibility through three major international airports (NAIA, DMIA,
Subic Bay International Airport).
• Availability of highly-skilled, competent pool of manpower resources
• Superb infrastructure and transshipment facilities
• Broad-based economic and market spheres of influence
• 10,000 hectares of industrial land. Industrial areas in Central Luzon
are presented in Table 3.6 – 1 and shown in Figure 3.6 – 1.

Table 3.6-2
Industrial Areas in Central Luzon

5
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)
IE/ECOZONE TOTAL LAND AREA PREFFERED INDUSTRIES REGISTRATION
(BOI-PEZA)
BATAAN
1 Balanga City IT Park 77.7 hectares IT - related projects -
2 Bataan Economic Zone 1733.37 hectares Light, medium and Heavy Industries PEZA

Commercial, residential, tourism,

manufacturing, light to medium w ith special
3 Bataan Technology Park 365 hectares industries, resaerch-based/info tech (IT) charter
478 hectares
(ecozone) Clean, non-polluting, light to medium-
162 hectares sclae, primarily export-oriented
4 Hermosa Economic Zone (ind'l estate) manufacturing facilities PEZA
5 Plastic Processing Center 26.02 Light to medium industries PEZA
6 PDC Petrochem Complex Phase 1 - 136.97 hectares Petrochem industries BOI
Phase 11 - 143.07 hectares
ICCT Projects, multi-media industries, agri-
7 Subic-Hermosa Cyber City 92.8 hectares based industries PEZA
PAMPANGA
Light to medium, non-pollutant, export
8 Angeles Industrial Park 32 hectares oriented and labor-intensive industries PEZA
Garments, habdicrafts and futniture,
electronics, small to medium-sized
9 Angeles Livelihood Complex 33 hectraes industries -
10 Berthaphil Business Park 21.8 hectares no data
Aviation-related industries, drypot,
commercial cente, agro-
industries,medical center, informatio
technology center, convention centers
and theme parks, high-tech
manufacturing, w aste management
4440 kilometers system, education and training centers,
11 Clark Special Economic Zone (main zone) sports and recreational facilities w ith special charter
12 Philexcel Business Park 44 hectares no data -
Light to medium industries w ith prioirty
on tourism-oriented, computer softw are
and hardw are, electronics, garments,
13 San Simon industrial park 94 hectares and food processing BOI
Light to medium industries w ith priority of
14 Pow erpoint Industrial Park 12 hectares tourism-oriented, computer software
(industrial) and hardw are -
Light to medium industries w ith priority
on tourism-oriented, computer softw are
and hardw are, electronics, garments,
15 First Clarkw ay Industrial Complex 1000 hectares and food processing PEZA
16 TECO Special Economic Zone 63.84 hectares High to medium industries PEZA
ZAMBALES
17 Masinloc Economic Zone 72 hectares Marine-related industries PEZA

Manufacturing/Assembly, ICT-Related
18 Subic Bay Freeport Zone 18000 hectares Operations, Seaport-Related Operations,
(inc. forest area) Real Estate/retirement Village Dev't -
Eletronics, electrical, high-value added w ith special
19 Subic Bay Industrial Park 300 hectares products charter
20 Subic Special Economic Zone phase I - 52 has.
Phase II - 19.23 has. Marine-related industries SMBA
21 Subic Techno Park 80 hectares Small and medium scale industries SMBA

Figure 3.6-2: Industrial Areas in Central Luzon

6
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)

Tourism Belt

The Tourism Belt is the first leg of the W covering the municipalities
outlining the western portion of Zambales and Bataan. This is due to the
areas' beauty, string of white sand beaches free of underwater rocks and
corals, and wonderful coastlines ideal for world-class eco-tourism projects.

Capitalizing on the areas' world-class convention and tourism facilities, the

Tourism Belt supports the region's vision of becoming a World Conference
Center. Its main anchor is the SUBIC BAY FREEPORT ZONE

Industrial Hub

The inner peak of the W represents the Industrial Hub, where the region's
Industrial Estates and Economic Zones serve as magnets for investments.
The industrial corridor of about 10,000 hectares plays host to skills-
intensive and technologically-advanced industries.

The industrial hub supports the region's vision to become the industrial
heartland and the next transshipment hub in the Asia Pacific region. Its
main anchor is the Clark Special Economic Zone.

The main catalysts for development in the industrial hub are the region's
seaport and international airport which can very well support Central
Luzon's projected role of becoming an alternate transshipment hub in Asia
next to Hong Kong and Singapore.

Green Corridor

7
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)
The third leg of the "W" is the area that will showcase successful farms
devoted to high value crops and agro-forestry. Central Luzon has a total of
635,345 hectares devoted to agricultural production, 30% of which is
concentrated in Nueva Ecija while Bulacan accounts for 13%. The major
agricultural crops of the region are rice, fruit-trees mostly mangoes,
sugarcane, corn, onions and vegetables.

The Green Corridor has two major anchors: Muñoz as the agro-science
and research center, and Palayan City as the center for strategic agro-
processing activities. The declaration of Muñoz as the first science city in
the country is expected to strengthen the city's role in enhancing agro-
research and laboratory services.

B. Infrastructure Projects

Relative to the basic infrastructure needs of the region as well as to the

national goals and objectives stipulated under the Philippines Medium-
Term Development Plan the following infrastructure projects had been
identified for implementation. These projects are currently being
implemented and some are proposed for implementation.

a. Promoting International Access

. i. Diosdado Macapagal International Airport (DMIA)

ii. Subic Bay Port Development

b.Promoting Inter and Intra-Regional Mobility

1. Subic-Clark-Tarlac Expressway Project

2. North Luzon Tollways Project
3. North Luzon Tollways Extension
4. Manila-Clark Rapid Railway System
5. Gapan-San Fernando-Olongapo Road
6. Port of Orion
7. Continuous implementation of the MNR improvement and
widening project for Bulacan, Pampanga and Tarlac.

Gapan-San Fernando-Olongapo (GSO) Road. The Gapan-San Fernando-

Olongapo (GSO) Road is proposed for widening and emergency dredging under
the financial assistance of Korean Government. Detailed engineering for the
GSO Sta. Barbara Bridge-Sta. Cruz Bridge Section is now on-going.

The Department of Public Works and Highways, Mt. Pinatubo Emergency-Project

Management Office is the implementing government agency. Another
undertaking related to this project is the Dinalupihan –Hermosa Lubao Flood
Control Study. This preliminary study was undertaken by the Consultants for
Subic-Clark–Tarlac Expressway Project under the Bases Conversion
Development Authority. This study aims to proposed flood control measures and

it recommends a formulation of comprehensive regional development master

plan.

8
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)
Subic-Clark Tarlac Expressway. The SCTEX is a banner project of the Bases
Conversion Development Authority through financial assistance from Japan Bank
for International Cooperation (JBIC). It involves the construction of a 93.77
kilometer four (4) lane on embankment limited access expressway that will
connect Subic, Clark, and Luisita Industrial Park to virtually form a mega
economic zone. The project has two (2) sections, as follows:

a) Package 1 – The Subic to Clark Section has an aggregate length of

50.40 kilometers which will start from Tipo Road junction in Bataan to
Clark Special Economic Zone.
b) Package 2 – The Clark to Tarlac Section has an aggregate length
of 41.34 kilometers that will start from CSEX to Tarlac City.

On 04 April 2005, project groundbreaking was done signaling the start of

construction works. By the end of December 2005, about 99 percent of road right
of way was fully acquired.

Toll rates and schedules are yet to be firmed-up by the TRB but initial figures
suggests that they will approximate the rates of NLEX.

Manila-Clark Rapid Railway System. The Philippine National Railways has been
trying to revive the railway system in the North Line. The North Line catered to
the provinces of Bulacan, Pampanga, Tarlac, Pangasinan, Nueva Ecija, La Union
and Ilocos.This Together with the Bases Conversation Development Authority
(BCDA) and other private entities, a consortium was formed which established
the North Rail Corporation. The objective is to modernize the North line initial
goal of developing the Manila-Clark Rapid Railway System (MCRRS) also
popularly known as the North Rail project. The project will link Bonifacio Global
City and Clark Special Economic Zone (CSEZ). The North Rail will be
implemented in phases, as follows:

a) Phase I – It will connect Fort Bonifacio and Clark. Based on the

updated feasibility study, the most viable section to initially implement
is the Caloocan Malolos Section. Once demand or ridership permits, it
will be expanded on both ends to reach Fort Bonifacio and Clark
Special economic Zone, Pampanga.
b) Phase II – This is a branch line to Subic Bay Freeport and Special
Economic Zone (SBF-SEZ)
c) Phase III – This is an extension from Clark to San Fernando City, La
Union.
d) Phase IV – This will extend service area up to Laoag City (Ilocos) and
San Jose City (Nueva Ecija).

However, due to huge investment requirement coupled by the cost of relocating

informal settlers currently occupying the PNR right-of-way (ROW) most especially
in Bulacan and Pampanga areas, the government and private investors alike are
having difficulty raising the required capital at the same time balancing it with
operational and financial viability.

Official Development Assistance (ODA) donors were tapped particularly the

Japan International Bank for International Cooperation (JBIC) but the proposal
was not considered in the bilateral consultation between the Government of the
9
Feasibility Study on Widening of
Gapan-San Fernando-Olongapo (GSO) Road
(Sta. Cruz, Lubao-Dinalupihan Section)
Philippines (GOP) and the Government of Japan (GOJ). In 2005, however, initial
negotiation was done for the possibility of the People’s Republic of China through
China Export/Import Bank to finance the project under soft loan agreement.

Port of Orion. Ferry service is now concentrated in Orion Port. The Bataan –
Manila ferry service harbors from Port of Orion in Bataan to a foreshore area at
the back of the Manila Film Center along the premises of the Cultural Center of
the Philippines in Manila. Travel time with these high speed ferry boats is only
between one to one and-a-half hours vis-à-vis the 3-4 hours travel by land. The
Port of Orion has a relatively huge space to accommodate “park-and-ride”
commuters. Commuters could leave their cars in the parking area of the port in
the morning and ride it back home in the afternoon after coming back from work
or attending business or social functions.

The Port of Orion is envisioned to be transformed into a modern port complex

equipped with roll-on-roll-off (RORO) facilities capable of handling larger ships
carrying both passenger and cargo to operate in the area. However, funding of
the reclamation of three (3) hectare port site, construction of berthing and RORO
facilities, breakwater, and the establishment of passenger terminal, amounting to
some Php 274.1 million is yet to be made available by the national government.

10