CHAPTER 6 INFRASTRUCTURE

Transportation Sector

 

   Road Transportation

 

   The Department of Public Works and Highways (DPWH) has a total of 51 approved projects for various roads and bridges throughout the region amounting to PhP 541.900 million programmed for calendar year 2006. Of the 51 projects, 40 were completed; 7 are on-going; and the remaining 4 projects are not yet started (Table 1).

 

   The status of these roads and bridges projects registered an overall physical accomplishment of 69.07% as of December 31, 2006.  Overall implementation is ahead of schedule registering a positive slippage of 7.75% despite the operational setbacks caused by typhoons Milenyo and Reming. The construction of the remaining on-going and not-yet-started projects will be carried over to the succeeding calendar year.

 

   For CY 2005 carry-over roads and bridges projects, the overall physical accomplishment as of year-end is 92.39%. There were 100 highway projects programmed for CY 2005, wherein 96 projects were completed and the remaining 4 projects are on-going.

Table 1 Accomplishment for Roads and Bridges Projects
(CY 2006 and 2005 Carry-over) as of December 31, 2006

                 Source:  DPWH Region V

   The regular maintenance of national roads and bridges under the DPWH Maintenance Fund has a total allocation of PhP 167.285 million intended for the repair and maintenance of carriageway for 2,196.388 kilometers of national roads throughout the region. The road maintenance projects have an overall physical accomplishment of 92.56% as of December 31, 2006.

 

   Aside from the regular maintenance fund for national roads and bridges, the DPWH Region 5 has also implemented the roadside maintenance program called “Trabaho, Programa ng Pangulong Gloria”.  It is a nationwide roadside maintenance program of DPWH aimed at providing gainful employment to the people in the barangays in line with the Ten-Point Agenda of the President for job generation. For every 3.5 kilometers of national road, a barangay worker was hired to assist in the roadside and carriageway maintenance activities.  As of December 31, 2006, the overall accomplishment of the program is 75.40% with a total allocation of PhP 47.946 million.     

 

   A total of 36 road maintenance projects were likewise implemented by DPWH Region 5 funded out of the Motor Vehicle Users’ Charge (MVUC) Fund pursuant to Republic Act 8794.  The allocation for these projects is PhP 17.341 million.  Of the 36 minor/routine maintenance projects, 14 were already 0completed, 8 are on-going, and 14 projects are not yet started.  Overall physical accomplishment as of December 31, 2006 registered at 55.44% (Table 2).

Table 2  Accomplishment for CY 2006
Maintenance of National Roads and Bridges as of December 31, 2006

                 Source:  DPWH Region V

   DPWH Region V also implemented major foreign-assisted projects in CY 2006.  Among these are the UK-Assisted Bridge Replacement Project; Austrian-Assisted Bridge Project; and JBIC-Assisted Catanduanes Circumferential Road Project.

 

   A total of 17 national bridges were programmed under the UK-assisted and Austrian-assisted bridge projects.  Of these, 3 bridges were already completed and 14 are still on-going as of year-end. This bridge program aims to provide structurally sound permanent bridges along national roads.

 

   Implementation of the JBIC-funded Catanduanes Circumferential Road Project, Phase 1 (Codon, San Andres – Jct.Bato-Viga Section) is almost complete at 91.40% physical accomplishment.  The Phase 1 component consists of concreting of about 80 kilometers national road, including construction of 5 bridges, improvement of existing drainage structures, and construction of slope protection.  The project's revised contract cost is PhP 1.136 billion funded out of the loan proceeds from JBIC. The contractor of the project is China Road and Bridge Corporation. Based on the project’s approved variation order no. 2, the new completion date of the project is November 1, 2007.

 

   The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a total of 9,483 franchise as of December 31, 2006, corresponding to 10,602 units of various public transport vehicles covering 1,636 approved routes (Table 3).

Table 3 Number of Franchise/Units/Routes per Mode of Service
as of December 31, 2006

                 Source:  LTFRB Region V

The actual total revenue generated by LTFRB Region 5 decreased by about one-third (32.94%) in comparison to the previous year.  The substantial decrease of about PhP 8.801 million under Filing Fees is attributed to the suspension in the acceptance of Petitions for Amnesty for PUB operations, as said fee amounts to PhP 100,000 per bus unit payable in two equal installments.  The first PhP 50,000 is payable to LTFRB regional office upon application and the remaining PhP 50,000 to LTFRB central office upon release of decision (Table 4).

Table 4 Comparative Actual Revenue Generated, CY 2005-2006

Land Transportation Franchising Regulatory Board (LTFRB)

                 Source:  LTFRB Region V

   The LTFRB Region 5 is an efficient income-generating regulatory agency. In spite of the fact that half of the PhP 100,000 per bus filing fee for Petitions for Amnesty for PUB operations went to the LTFRB central office, the agency still registered positive net revenue at the end of the calendar year. For CY 2006, with a budget release of PhP 6.174 million, the agency generated an actual income of PhP 15.421 million, thus registering positive net revenue of PhP 9.247 million. The same in CY 2005, the agency has a budget release of only PhP 6.134 million vis-à-vis the actual income of PhP 22.994 million (Table 5).

Table 5 Actual Revenue Generated versus Budget Releases, CY 2005 and 2006
Land Transportation Franchising Regulatory Board (LTFRB)

                 Source:  LTFRB Region V

Water Transportation

   The Philippine Ports Authority (PPA) Port Management Office of Legazpi (PMO-Legazpi) has under its jurisdiction and supervision 9 terminal ports (PPA national ports), 14 municipal ports, and 13 private ports in the entire region.

 

   Aware of its commitment to continually maintain and improve the facilities/amenities of the various national ports in the region, the PMO-Legazpi has implemented 49 regular repair and maintenance projects for CY 2006 amounting to a total of PhP 16.377 million. Of the 49 projects, 39 are already completed, 7 are on-going and the remaining 3 projects have not started yet.

 

   Moreover, 5 major port projects implemented by PPA Head Office are on-going as of the year-end. These are: (1) Construction of back-up area at Legazpi Port; (2) Closure of breather openings at Masbate Port; (3) Construction of RORO facilities at Cawayan Port in Masbate; (4) Construction of Phase 2 Component of Pantao Port in Libon, Albay; and (5) Construction of RC pier at San Andres Port in Catanduanes.  Implementations of these port projects were severely affected and delayed due to typhoons Milenyo and Reming.

 

   The newly constructed Phase 1 component of Pantao Port in Libon, Albay was substantially damaged by the typhoons in late 2006. The Philippine Ports Authority (PPA) conducted an investigation and assessment of the damaged port and is currently preparing a work program for its repair and immediate restoration.

 

Air Transportation

 

   Under DOTC Department Order No. 89-401, nine area centers throughout the country were created in the promotion/implementation of civil aviation in the country and abroad. The airports of the Bicol Region were clustered as Area IV with Legazpi Airport as the center. An Airport Area Manager heads the Area Center IV. All airports in the region are under his jurisdiction.

 

   There are seven airports in the ATO Area Center IV, namely:  one trunkline airport (Legazpi Airport); five secondary airports (Naga, Virac, Masbate, Daet, and Sorsogon); and one feeder airport in Bulan, Sorsogon.  Philippine Airlines (PAL), Cebu Pacific, Air Philippines and Asian Spirit provide the aviation needs of the region’s airports.

 

   The major air carriers for Legazpi Airport are Philippine Airlines (PAL), Air Philippines, and Cebu Pacific.  However, in November 2006, Air Philippines ceased its operations in Legazpi Airport.  Only Philippine Airlines (PAL) serves Naga Airport, while Asian Spirit is serving the airports in the island provinces of Masbate and Catanduanes. Daet, Sorsogon, and Bulan Airports operate and accepted non-commercial smaller aircrafts that fall under the category of general aviation.  All seven airports operate only during daytime. However, with prior notice, Legazpi Airport can handle night landing operations.

 

   ATO Area Center IV derived its revenues from: (a) Service Income; (b) Business Income; (c ) Miscellaneous Income; and (d) Fines and Penalties (Table 6.).

 

   A total income of PhP 8.115 million was generated for CY 2006. The low turn out of collection was because most of the payments by the airport concessionaires were made at the ATO Central Office. Payments of the following services/business operations are made at ATO Head Office: (a) Aircraft Landing/Take-Off; (b) Terminal Parking Fee; (c ) Operational Charges; (d) Rental of Floor Areas; and (e) Rental of Land Areas.

Table 6  Breakdown of Income and Collections, CY 2006
ATO Area Center IV, Legazpi City

                 Source:  ATO Legazpi City

   Shown in Table 7 are the landing, parking, and cargo movement statistics for CY 2006 for all the airports under the jurisdiction of Bicol Area Center IV.

Table 7 Landing, Parking and Cargo Movement for Airports, CY 2006
ATO Area Center IV, Legazpi City

                 Source:  ATO Legazpi City

   As of the year end, 18 airport maintenance/repair/infrastructure projects were completed and 2 are still on-going. Total cost of all these projects is PhP 8.701 million.  Maintenance projects were undertaken in the airports of Legazpi, Naga, Masbate, and Virac (Table 8).

 

   Two maintenance projects were completed at Legazpi Airport, such as: (a) rehabilitation of CHB perimeter fence costing PhP 285,175.15; and (b) repainting of nose wheel parking guide lines and runway edge markings at a cost of PhP 84,000.00.

 

   The construction of perimeter fence was also completed in Naga Airport costing PhP 495,600.00. In Masbate Airport, 5 airport maintenance projects were completed during CY 2006 at a total cost of PhP 1,150,100.00.

 

   In the airport of Virac, 9 maintenance projects were completed as of December 31, 2006.  Aside from the 9 maintenance projects, 3 DOTC-CO implemented major projects were undertaken in Virac Airport. These include: (a) completed rehabilitation of the terminal building at a cost of PhP 952,375.04; (b) on-going obstruction removal costing PhP 2,171,250.00 with 79.14% physical accomplishment; and (c ) on-going construction of CHB perimeter fence with project cost of PhP 2,171,250.00.   

Table 8 Airport Maintenance Projects, CY 2006
 (MOOE Fund) As of December 31, 2006

                Source:  ATO Legazpi City

   All the airports in the region have sustained considerable damages brought by the past typhoons Milenyo and Reming. The aforementioned newly implemented projects by ATO were not spared by the fury of the said super typhoons. Millions of pesos of infrastructure facilities were damaged by the typhoons. Shown is Table 9 below are estimated damages to facilities and structures at Legazpi and Naga airports.

Table 9 Estimated Cost of Damages to Airport Facilities/Structures/Properties
Caused by Typhoons Milenyo & Reming
(September 27, 2006 & November 30, 2006)

                 Source:  ATO Legazpi City

Communication Sector

 

   Communication is one of the components of infrastructure support facilities that should have adequate level of service efficiency to achieve economic growth. The region’s component is dependent on the national vision to establish a regulatory environment conducive to the sustainable growth and development of the information services and to promote sustainable environment that would foster a healthy relationship among stakeholders particularly between the service providers and the consumers. The communication facilities in the region cover telephone and telegraph services, broad – cast and cable TV industries, and postal services.

 

   Telecommunication Office (TELOF) and Philippine Postal Corporation (PPC) were affected by the technology advancement on the use of digital means of communication like the entry of international player on the telephone industry and the surge of cellular phone or digital communication facilities of Smart and Globe that dominated the telecommunication market. 

 

   The TELOF was rationalized and to be merged to the Department of Information and Communication Technology (DICT). Pending the merger, the President issued EO 269 Creating the Commission on Information and Communication Technology (CICT) which is not merely advisory in nature but serves as the primary policy, planning, coordinating, implementing, regulating and administrative entity of the Executive Branch on e-commerce initiatives.

1. Telephone and Telegraph Services - There are fourteen telephone service players in the region, thirteen private operators and one public facility.  The number of facilities did not increased compared to 2004. The land line telephone industry is dominated by the Bayantel and Digitel that are spread over the region.  With the liberalization policy of the industry, telephone density had increased    from 0.037 to 2.37 per 1000 population (2004-2006). Density will improve if Cellular Mobile Telephone System (CMTS) will be accounted for. There are 62 Mobile Phone Dealers in the region registered with NTC.

   There are 122 telegraph stations that operate in 2004 which decreased to 113 in year 2006. This indicates that the telegraphic means has a lesser patronage in terms of information communication compared to digital means. The facilities are served by private and public facility operated by TELOF. The TELOF operational output and personnel complement are decreasing, thus the agency was programmed for rationalization. There is the possibility that telegraph facilities will further weaken in the market due to the entry of digital communication facilities like the Cellular Mobile Telephone System (CMTS) which are more effective and efficient means of communication.

 

   Typhoon Milenyo and Reming destroyed the facilities like buildings, telephone lines and cell sites in the latter part of 2006 particularly in Albay, Camarines Sur, Catanduanes and Sorsogon.  Hence there is a need to restore and safeguard these facilities and strengthen service coverage to reach far-flung areas. During the restoration period, broadband (wireless phone) had been introduced such as SPAN for bayantel and Mango for digitel become in demand for the market to cover areas affected by the typhoons. However the extent and magnitude of coverage also depend on the cell sites available throughout the region.

2.  Broad – Cast and Cable TV industries - There are 69 Cable TV stations registered with NTC in the region. These are located in: Albay 7, Camarines Norte 9, Camarines Sur 23, Catanduanes 5, Masbate 11, and Sorsogon 14.  In the later part of CY 2006, the facilities in Albay and Camarines Sur were destroyed due to typhoons Milenyo and Reming, which need to be restored.  These facilities also help distance learning more accessible in the far-flung barangays and unserved areas but it also depends on the demand for said service.

3. Postal Facilities and Services - There are 139 Post Offices for CY 2006, which had increased compared to CY 2005 with 135 Postal Offices. These are distributed as follows: 49 Regular Post Office, 18 Extension Post Offices, 26 Hub Post Offices. The region was divided into seven district operations covering 41 areas.

   The postal operations have generated an income of PhP48.5 Million representing 82.03 percent of its 2006 revenue targets of PhP59.2 Million, short by 9.8 percent or PhP5.3 Million. The decrease are attributed to the growing competition from private couriers and the development in Information and Communications Technology (ICT) e- Commerce, payments of incentives and rehabilitation efforts in the aftermath of Typhoons Milenyo and Reming. 

 

   The postal product and services that are not affected by the advancement in communication technology, which posted an increase between 2005 and 2006 are: Postal ID, Rent Income, 1^st Class Mail (Newsweek), M-bags, Philpost Product Sales, and Philatelic Stamp Sales.

Irrigation and Flood Control

 

   Irrigation

 

    Irrigated agriculture provides a major contribution to food production and food security in the region. The only crop grown in irrigated lands is paddy rice through surface type of irrigation. The irrigation sector was severely affected by calamities that hit the region causing heavy damages to the physical facilities, inundation of farmlands and deposition of sediments in the diversion dams and irrigation canals.

 

   The development of potentially irrigable areas in the region remains low at only 49.64 percent of the total irrigable areas of 239,660 hectares at full development Of the targeted 1,414 hectares new irrigated areas, only 291 hectares have been developed. The slow-paced development of the irrigation sector may be due to a host of interrelated financial, technical, hydrologic, socio-economic and institutional issues. Also because of the typhoons that hit the region in the last quarter of 2006, the irrigation program re-focused on the restoration and rehabilitation of existing irrigation systems. Of the targeted 19,861 hectares, 13,304 hectares have been restored or rehabilitated. It also focused more on the institutional strengthening particularly on the organization and development of Irrigator’s Associations (IA’s).

 

   Despite the slow development of the potentially irrigable areas, average palay yield increased from 3.14 MT/ha. to 3.49 MT/ha. Average cropping intensity of the National Irrigation Systems and Communal Irrigation Systems is 138.24 percent and 123 percent, respectively.

 

   Flood Control

 

      Frequent weather disturbances affected the Bicol Region, inducing water related hazards such as floods, landslides, mud and debris flow. To cope with these hazards, flood control and management is of vital importance to the region for its social and economic development. Flood management however only focused on the more expensive engineering solutions rather than the non-structural measures. The structural measures are necessary but not sufficient.

 

   Intermittent sections of river training works and drainage structures were constructed solving only the problem locally. Palliative measures such as dredging of rivers are also common but these are not effective and efficient because dredged materials are just dumped along riverbanks. Engineering solutions continue to be implemented in the region.

 

   In the last quarter of 2006, the series of typhoons (Milenyo, Reming and Seniang) recorded a total damage of P7.8 billion. The intense and long duration of rainfall during typhoon Reming caused the most flood and debris flow damage.

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