Philippine Rural Development Project Scale-Up • Operations Manual

Rural Infrastructure Market Linkage (I-BUILD) Component

Department of Agriculture

PHILIPPINE RURAL
DEVELOPMENT PROJECT
SCALE-UP

RURAL INFRASTRUCTURE
MARKET LINKAGE

I-BUILD
(Intensified Building-Up of Infrastructure and
Logistics for Development)

OPERATIONS MANUAL
June 2023

Table of Contents:

1
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

1.0 The Rural Infrastructure Market Linkage (I-BUILD) Operations Manual

1.1 Rationale and Purpose

1.2 Structure of the Manual

1.3 Scope of the Manual

1.4 Use and Target Users

2.0 The Philippine Rural Development Project (PRDP) Scale Up

2.1 Background

2.2 Salient Features of PRDP Scale Up

2.3 Goals, Objectives and Expected Outcomes

2.4 Eligible Infrastructure Subprojects under PRDP Scale Up

2.5 Selection and Prioritization Criteria

2. 6 Schedule of Implementation

2.7 Pre-implementation Activities

2.8 Post-implementation Activities of Subprojects

2.9 Subproject Development Process
2.10 Detailed I-BUILD Activity Flow
2.11 Organizational Structure, Functional Responsibilities and Implementation
Arrangements
2.11.1 Organizational Structure
2.11.2 Functional Responsibilities
2.11.3 General Implementation Arrangements
A. Contract duration and time extension
B. Joint Technical Review (JTR)
C. Subproject Appraisal
D. Conduct of RPAB Deliberation and Approval
E. Issuance of No Objection for Subprojects
F. Pre-Construction Conference
G. Change in pledge equipment
H. Change in Technical Personnel
I. Full time Assignment of the Required Construction Supervision Team
J. Roles and Functions of the LGUs Technical Supervision Team
K. Conduct of Regular Contract Management Meeting.
L. As-stake Survey and As-stake Plan
M. Variation Orders

2
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

N. Materials Testing
O. Field Density Test
P. Inspection and Billing
Q. Corrective Action Request
R. Joint Inspectorate Team
S. Proceeds from Liquidated Damages.
T. Suspension of Subproject due to Peace and Order
U. Cancellation of subprojects
V. Deletion of canceled proposed Subprojects at the MIS
2.12 Capability-Building of Implementers
2.12.1 Technical Capability Building Activities
2.12.2 Support Facilities
2.13 General Financial Management Arrangements
2.13.1 Requirements for the Release of Funds to Local Government Units
2.13.2 Requirements for Payment to Contractor
2.13.3 Processing of Contractor’s Billing
2.13.4 Financial Reports
2.14 Monitoring and Evaluating the Rural Infrastructure Component of PRDP
Scale Up
2.15 Social and Environmental Safeguards
2.16 Sustainability
2.17 Applied Geotagging Technology
2.18 Procurement
3.0 Rural Roads
3.1 Scope
3.2 Financing Scheme
3.3 Subproject Identification, Selection and Prioritization
3.4 Subproject Appraisal and Approval System
3.4.1 Eligibility Criteria
3.4.2 Subproject Validation
3.4.3 Feasibility Study (FS)
3.4.4 Subproject Detailed Engineering Preparation
3.4.4.1 Field Surveys
3.4.4.2 Design, Drawings, Specifications

3
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3.4.4.3 Program of Works (POW)

3.4.5 Review, Evaluation and Approval
3.4.6 Conditions for Fund Release
3.5 Subproject Execution, Completion and Turnover
3.5.1 Implementation Structure
3.5.2 Implementation Mode
3.5.3 Procurement
3.5.4 Supervision and Monitoring
3.5.5 Quality Assurance and Control
3.5.6 Time Control
3.5.7 Cost Control
3.5.8 Monitoring, Evaluation and Reporting
3.5.9 Progress Billing, Completion and Turnover
3.6 Subproject Operation and Maintenance
3.7 “RASIX” for Rural Roads
4.0 Irrigation System
4.1 Scope
4.2 Financing Scheme
4.3 Selection Criteria
4.4 Procedures for Investigation of Viability of Schemes
4.5 Subproject Appraisal and Approval
4.5.1 Eligibility Criteria
4.5.2 Subproject Validation
4.5.3 Feasibility Study (FS) Preparation
4.5.4 Subproject Detailed Engineering Design Preparation
4.5.4.1 Field Surveys
4.5.4.2 Detailed Design, Specifications
4.5.4.3 Program of Works (POW)
4.5.5 Review, Evaluation and Approval
4.5.6 Conditions for Fund Release
4.6 Subproject Execution, Completion and Turnover
4.6.1 Implementation Structure
4.6.2 Implementation Mode
4.6.3 Procurement

4
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

4.6.4 Subproject Supervision and Quality, Time and Cost Controls

4.6.5 Monitoring, Evaluation and Reporting
4.6.6 Performance Indicators
4.6.7 Progress Billing, Completion and Turnover
4.7 Subproject Operation and Maintenance
4.8 “RASIX” for Irrigation Subprojects
5.0 Potable Water System
5.1 Definition and Features of Rural Water Supply Systems
5.2 Scope
5.3 Financing Scheme
5.4 Subproject Identification and Prioritization
5.5 Social and Environmental Safeguards
5.6 Subproject Appraisal and Approval System
5.6.1 Eligibility Criteria
5.6.2 Subproject Validation
5.6.3 Feasibility Study (FS) Preparation
5.6.4 Subproject Detailed Engineering Preparation
5.6.4.1 Field Survey
5.6.4.2 Design, Drawings, Specifications
5.6.4.3 Program of Works (POW)
5.6.4.4 Review, Evaluation and Approval
5.6.4.5 Conditions for Fund Release
5.6.5 Subproject Execution, Completion and Turnover
5.6.5.1 Implementation Structure
5.6.5.2 Implementation Mode
5.6.5.3 Procurement
5.6.5.4 Subproject Supervision
5.6.5.5 Quality Control
5.6.5.6 Time Control
5.6.5.7 Cost Control
5.6.5.8 Monitoring, Evaluation and Reporting
5.6.5.9 Progress Billing, Completion and Turnover
5.7 Subproject Operation and Maintenance
5.8 “RASIX” for Rural Water Supply

5
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

6.0 Value Chain Rural Infrastructure

6.1 Scope
6.2 Financing Scheme
6.3 Subproject Identification and Prioritization
6.4 Social and Environmental Safeguards
6.5 Technical Selection Criteria
6.6 Subproject Appraisal and Approval System
6.6.1 Eligibility Criteria
6.6.2 Subproject Validation
6.6.3 Feasibility Study (FS) Preparation
6.6.4 Subproject Detailed Engineering Preparation
6.6.4.1 Field Survey
6.6.4.2 Design, Drawings, Specifications
6.6.4.3 Program of Works (POW)
6.6.5 Review, Evaluation and Approval
6.7 Conditions for Fund Release
6.8 Subproject Execution, Completion and Turnover
6.8.1 Implementation Structure
6.8.2 Implementation Mode
6.8.3 Procurement
6.8.4 Subproject Supervision
6.8.5 Quality Control
6.8.6 Time Control
6.8.7 Cost Control
6.8.8 Monitoring, Evaluation and Reporting
6.8.9 Progress Billing, Completion and Turnover
6.9 Subproject Operation and Maintenance
6.10 “RASIX” for Value Chain Rural Infrastructure
6.11 IREAP Civil Works

List of Tables:

6
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Table 2-1 IBUILD Indicative Physical and Financial Targets

Table 2-2 IBUILD Indicative Physical Target per year
Table 2-3 IBUILD Indicative Financial Target per year (EPC)
Table 2-4 IBUILD Indicative Financial Target per year (LP+GOP)
Table 2-5 IBUILD Indicative Financial Target per year (LP)
Table 2-6 IBUILD Indicative Financial Target per year (GOP)
Table 2-7 Operation & Maintenance Indicative Unit Cost per Subproject Type
Table 2-8 Subproject Processes, Outputs & Responsible Agency
Table 2-9 IBUILD Prior Review Threshold
Table 2-10 Duties and Functions of the Municipal/City Engineering Office
Figure 2-11 Duties and Functions of the Municipal/City Planning and Development
Office
Figure 2-12 Duties and Functions of the Municipal/City Agricultural and Biosystems
Engineering Office
Table 2-13 Technical Capability Building Activities
Table 2-14 Financial Reports – IBUILD Component
Table 3-1 Cost Sharing scheme for all IBUILD subproject type
Table 3-2 Indirect Cost Factors for Subprojects
Table 3-3 Geometrical & Design specifications and Scheme for Roads
Table 3-4 Geometrical & Design specifications and Scheme for Bridges
Table 3-5. Minimum Test Requirements for Rural Roads and Bridges for
some Selected Items
Table 4-1 Geometrical and Design Specifications for Irrigation Schemes
Table 5-1. Definition and Features of Water Supply Systems
Table 5-2 Minimum Test Requirements for Potable Water Supply
Systems for Some Selected Items
Table 6-1 Minimum Test Requirements for Value Chain Rural Infrastructure for Some
Selected Items

List of Figures:

7
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Figure 2-1 I-BUILD Activity Flow

Figure 2-2 Organizational Structure at the Project Level
Figure 2-3 Organizational Structure at the NPCO
Figure 2-4 Organizational Structure at NPCO-IBUILD
Figure 2-5 Organizational Structure at PSO
Figure 2-6 Organizational Structure at PSO IBUILD
Figure 2-7 Organizational Structure at RPCO
Figure 2-8 Organizational Structure of RPCO-IBUILD
Figure 3-1 Overview – Release of Funds/Payment to Contractor

Annexes:

8
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Annex 1 PRDP SU - List of Priority Subprojects and its Explanatory Notes

Annex 2 PRDP SU - Feasibility Study Outline for FMR
Annex 3 PRDP SU - Feasibility Study Outline for Irrigation Facilities
Annex 4 PRDP SU - Feasibility Study Outline for Potable Water Supply
Annex 5 PRDP SU - Feasibility Study Outline for Value Chain Rural Infrastructure -
Slaughterhouse Dressing Plant
Annex 6 PRDP SU - Feasibility Study Outline for Value Chain Rural Infrastructure -
Fish Landing Feeder Port
Annex 7 PRDP SU - Feasibility Study Outline for Value Chain Rural Infrastructure -
Warehouse - Warehouse with MPDP
Annex 8 PRDP SU - Subproject Validation Report for FMR and Bridges
Annex 9 PRDP SU - Subproject Validation Report for Irrigation System
Annex 10 PRDP SU - Subproject Validation Report for Potable Water Supply
Annex 11 PRDP SU - Subproject Validation Report for Value Chain Rural Infrastructure
Annex 12 PRDP SU - Traffic Count Form and Instruction
Annex 13 PRDP SU - Review Checklist for FMRs and Bridges
Annex 14 PRDP SU - Review Checklist for Irrigation Facilities
Annex 15 PRDP SU - Review Checklist for Potable Water Supply
Annex 16 PRDP SU - Review Checklist for Value Chain Rural Infrastructure
Annex 17 PRDP SU - Typical Drawings for Access Road subprojects
Annex 18 PRDP SU - Typical Drawings for RCDG Bridge - Bored Pile subprojects
Annex 19 PRDP SU - Typical Drawings for RCDG Bridges
Annex 20 PRDP SU - Typical Drawings for Communal Irrigation subprojects
Annex 21 PRDP SU - Drawings and Specifications for Small Scale Irrigation System
Subprojects
Annex 22 PRDP SU - Typical Drawings for Potable Water Supply Subprojects
Annex 23 PRDP SU - Typical Warehouse Solar Drier Drawings
Annex 24 PRDP SU - Typical Rock Causeway Timber Port Drawings
Annex 25 PRDP SU - Standard Drawing Size & Title Blocks
Annex 26 PRDP SU - POW Format
Annex 27 PRDP SU - Subproject Signboard
Annex 28 PRDP SU - Construction Log Book
Annex 29 PRDP SU - Weather Chart
Annex 30 PRDP SU - Site Inspection Report
Annex 31 PRDP SU - Quality Control Program

9
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Annex 32 PRDP SU - Status of Tests

Annex 33 PRDP SU - Work Sked & Physical Progress Report
Annex 34 PRDP SU - Suspension Order
Annex 35 PRDP SU - Resume Work Order
Annex 36 PRDP SU - Certificate of Quality Control Assurance
Annex 37 PRDP SU - Summary Report of Field Tests
Annex 38 PRDP SU - Final Inspection Report
Annex 39 PRDP SU - Subproject Completion Report
Annex 40 PRDP SU - Subproject Turn over Certificate
Annex 41 PRDP SU - RASIX for FMR and Bridges
Annex 42 PRDP SU - RASIX for Irrigation System Facilities
Annex 43 PRDP SU - RASIX for Potable Water Supply
Annex 44 PRDP SU - RASIX for Value Chain Rural Infrastructure
Annex 45 PRDP SU - Subproject FS Appraisal Report (SPAR) Guide and Review Guide
for NOL 1
Annex 46 PRDP SU - SPL Technical Specifications
Annex 47 PRDP SU - Equipment Productivity Output
Annex 48 PRDP SU - Time and Motion Study
Annex 49 PRDP SU - ROW Certification
Annex 50 PRDP SU - DED Certification
Annex 51 PRDP SU - Certificate of Subproject Completion
Annex 52 PRDP SU - Certificate of Subproject Acceptance
Annex 53 PRDP SU - Testing Laboratory machine-apparatus-equipment
Annex 54 PRDP SU - 2014 ACEL Rates and Edition 26
Annex 55 PRDP SU - Processing of Building Permit
Annex 56 PRDP SU - Value Chain Rural Infrastructures - Warehouse and Processing
Facility

Appendix:

10
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Abbreviations & Acronyms:

11
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

ABE - Agricultural and Bio-system Engineer

ACEL - Association of Carriers and Equipment Lessors

ADB - Asian Development Bank

ADSDPP - Ancestral Domains Sustainable Development and Protection Plan

ADT - Average Daily Traffic

AF-1 - First Additional Financing

AF-2 - Second Additional Financing

AFMP - Agriculture and Fisheries Modernization Plan

Agri. - Agriculture

AIP - Annual Investment Plan

ARC - Agrarian Reform Community

BAC - Bid and Award Committee

BAFE - Bureau of Agricultural and Fisheries Engineering

BAI - Bureau of Animal Industry

BARMM - Bangsamoro Autonomous Region in Muslim Mindanao

BAWASA - Barangay Water and Service Association

BER - Bid Evaluation Review

BFAR - Bureau of Fisheries and Aquatic Resources

BSWM - Bureau of Soils and Water Management

CAF - Certificate of Availability of Funds

CARI - Contractor’ All Risk Insurance

CAO - City Agriculture Office

CBR - California Bearing Ratio

CENRO - City Environment and Natural Resources Office

CEO - City Engineering Office

CERC - Contingent Emergency Response Component

CHARM - Cordillera Highland Agricultural Resource Management Project

CIS - Communal Irrigation System

CLGU - City Local Government Unit

CNC - Certificate of None Coverage

COA - Commission on Audit

CP - Contractor’s Profit

CPDO - City Planning and Development Office

12
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

CPM - Critical Path Method

CPMIU - City Project Management Implementing Unit

CSO - Civil Society Organizations

CSS - Context Sensitive Solutions

DA - Department of Agriculture

DAR - Department of Agrarian Reform

DC - Direct Cost

DED - Detailed Engineering Design

DENR - Department of Environmental and Natural Resources

DEO - District Engineering Office

DILG - Department of the Interior and Local Government

DO - Department Order

DOH - Department of Health

DOLE - Department of Labor and Employment

DOST - Department of Science and Technology

DPD - Deputy Project Director

DPWH - Department of Public Works and Highways

DSWD - Department of Social Welfare and Development

DTI - Department of Trade and Industry

DUPA - Detailed Unit Price Analysis

e-VSA - expanded Vulnerability and Suitability Assessments

ECC - Environmental Compliance Certificate

Econ - Economics

EDC - Estimated Direct Cost

EPC - Estimated Project Cost

ESF - Environmental and Social Framework

ESMP - Environmental and Social Management Plan

ESSF - Environmental and Social Safeguards Framework

EU - European Union

FCA - Farmers Cooperatives/Associations

FMR - Farm to Market Road

FPIC - Free and Prior Inform Consent

FS - Feasibility Study

13
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

GGU - Geo-mapping and Governance Unit

GOP - Government of the Philippines

I-BUILD - Intensified Building-Up of Infrastructure and Logistics for Development

- Rural Infrastructure Market Linkage

I-REAP - Enterprise Development

I-PLAN - National and Local Level Planning

I-SUPPORT - Project Implementation Support

IA - Irrigators Association

IDC - Indirect Cost

IDO - Institutional Development Officer

IEC - Information, Education and Communication

IMA - Implementation Management Agreement

INFRES - Infrastructure for the Rural Productivity Enhancement Sector

IP - Indigenous People

IQMDS - Infrastructure Quality Monitoring and Durability System

ITP - Inspection and Test Plan

JBIC - Japan Bank for International Cooperation

JIT - Joint Inspectorate Team

JTR - Joint Technical Review

LB/ES - Labor Based Equipment Supported

LGU - Local Government Units

LOI - Letter of Intent

LP - Loan Proceed

LWUA - Local Water Utilities Administration

MAFAR - Ministry of Agriculture-Fishery and Agrarian Reform

MAO - Municipal Agriculture Office

MEO - Municipal Engineering Office

MENRO - Municipal Environment and Natural Resources Office

MLGU - Municipal Local Government Unit

MMTR - Minimum Materials Testing Requirement

MOA - Memorandum of Agreement

MPDO - Municipal Planning and Development Office

MPMC - Municipal Project Monitoring Council

14
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

MPMIU - Municipal Project Management Implementing Unit

MRDP - Mindanao Rural Development Program

NAFMIP - National Agriculture and Fisheries Modernization and Industrialization Plan

NCIP - National Commission on Indigenous Peoples

NGO - None Government Organization

NIA - National Irrigation Administration

NMIS - National Meat Inspection Service

NOL - No Objection Letter

NOL-1 - No Objection Letter one (1)

NOL-2 - No Objection Letter two (2)

NPCO - National Project Coordination Office

NPSC - National Project Steering Committee

NTP - Notice to Proceed

NWRB - National Water Resources Board

O&M - Operations and Maintenance

OCM - Overhead, Contingencies and Miscellaneous

OHSP - Occupational Health and Safety Program

OL - Original Loan

OM - Operations Manual

OMAS - Operation and Maintenance Audit System

PA - Provincial Agriculturist

PABES - Philippine Agricultural and Bio-systems Engineering Standard

PAES - Philippine Agriculture Engineering Standard

PAO - Provincial Agriculture Office

PAP - Project Affected Person

PBD - Philippine Bidding Documents

PCCP - Portland Cement Concrete Pavement

PCIP - Provincial Commodity Investment Plan

PD - Project Director

PDC - Provincial Development Council

PDM - Precedence Diagram Method

PE - Provincial Engineer

15
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

PEO - Provincial Engineering Office

PENRO - Provincial Environment and Natural Resources Office

PERT - Project Evaluation and Review Technique

PhilFIDA - Philippine Fiber Industry Development Authority

PhilMech - Philippine Center for Postharvest Development and Mechanization

PLGU - Provincial Local Government Unit

PMIU - Project Management Implementing Units

PO - Private Organization

POW - Program of Works

PPDC - Provincial Planning Development Council

PPDO - Provincial Planning and Development Office

PPMC - Provincial Project Monitoring Council

PPMIU - Provincial Project Management Implementing Unit

PRA-PSA - Participatory Rural Appraisal - Participatory Social Analysis

PRDP - Philippine Rural Development Project

PRDP SU - Philippine Rural Development Project Scale Up

PSO - Project Support Office

PWS - Potable Water Supply

QP - Quality Plan

RAED - Regional Agricultural Engineering Division

RAFIP - Regional Agriculture and Fisheries Investment Portfolio

RBME - Results Based Monitoring and Evaluation

RCBC - Reinforced Concrete Box Culvert

RED - Regional Executive Director

RFO - Regional Field Office

RFU - Regional Field Unit

RIA - Road Influence Area

RMA - Rapid Marketing Analysis

ROMAT - Regional Operations and Maintenance Audit Team

ROW - Right of Way

RPAB - Regional Project Advisory Board

RPCO - Regional Project Coordination Office

RPMC - Regional Project Monitoring Council

16
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

RROW - Road Right of Way

RTD - Regional Technical Director

SES - Social and Environmental Safeguards

SP - Subproject

SPAR - Subproject Appraisal Report

SPIS - Solar Powered Irrigation Systems

STP - Standard Penetration Test

SWA - Statement of Work Accomplishment

SWIP - Small Water Impounding Project

VAT - Value Added Tax

VCA - Value Chain Analysis

VCRI - Value Chain Rural Infrastructure

VPD - Vehicles per Day

VSA - Vulnerability and Suitability Assessment

WB - World Bank

1.0 The Rural Infrastructure Market Linkage (I-BUILD) Operations

Manual

17
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

1.1 Rationale and Purpose

The Philippine Rural Development Project Scale Up (PRDP SU) is an expanded response to
the persistent challenges confronting the agri-fishery sector and the rural communities in
the country producing priority commodities that are within the Provincial Commodity
Investment Plans (PCIPs) and aligned with the National Agriculture and Fisheries
Modernization and Industrialization Plan (NAFMIP). The Project aims to improve farmers
and fisher folk access to markets and increase income from agri-fishery activities.

PRDP Scale Up envisioned to introduce a more holistic design and strategies by looking at a
broader agri-fisheries food/commodity system to address the gaps in the whole
commodity value chains, level up approaches and innovations based on lessons learned,
contribute to improving climate resilience and modernizing the agriculture and fisheries
sector. Interventions include the emphasis on rebuilding the whole value chain, improving
the food supply chain and logistics, prioritizing farm to market roads (FMRs) with value
chain infrastructure support, the inclusion of rice and corn focusing on value addition, and
mainstreaming of institutional reforms in the Department of Agriculture (DA) programs
and projects.

The Rural Infrastructure Market Linkage - Intensified Building-Up of Infrastructure and

Logistics for Development (I-BUILD) component will focus on delivering climate-resilient
access and value chain infrastructure support with the end goal of building up food
distribution hubs and logistics systems to provide unhampered mobility, access and stable
supply of food commodities and other agri-fishery products with reduced transport,
handling, and hauling costs thereby improving product quality and prices in target
markets. It will take off from I-PLAN’s strategic overlay of criteria and parameters in
coming up with key investment areas in the value and supply chains from the regional
perspective. To further ensure more climate-resilient and sustainable rural infrastructure
investments, hazard mapping analysis will be considered in the design and planning of
infrastructure subprojects with the incorporation of the Philippine Agricultural and Bio-
systems Engineering Standard (PABES), Green Building Code and the compliance with the
new Environmental and Social Framework.

This operations manual is specifically prepared for the implementation of the Rural
Infrastructure Market Linkage (I-BUILD) component. It will aid how subprojects in PRDP
Scale Up will be identified, prioritized, validated, prepared, reviewed, evaluated, approved,
implemented until its operation and maintenance. The subprojects that will be
implemented under the loan are those that will contribute to the following key result
areas:
1. Improving farmers and fisher folks access to markets and increase income from
agri-fishery activities.
2. Higher productivity as a result of increased cropping intensity, cropped areas and
average yields,
3. Food security and improved health from readily available potable water,
4. Increase in market value of agri-fishery products traded or processed, reduction in
transport / post-harvest losses and reduction in hauling cost resulting in higher
volume of outputs, better quality and more efficient support facilities,

18
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

5. Improving flow, distribution and prepositioning of agri-fishery foods, products and

services even in times of calamity and epidemic/pandemic.

Project implementation will be further strengthened with the institutionalization of the

new Environmental and Social Safeguards Framework (ESSF) and protocols, including
adoption of latest guidelines on infrastructure development and enhancement of
digitalization efforts, to ensure accountability, transparency and efficiency of all activities
inherent to the project operation.

This manual will serve as a source book of information and procedures that can be used by
the Department of Agriculture (DA), the Local Government Units (LGUs) and Farmers
Cooperatives/Associations (FCA’s) along the project development cycle.

1.2 Structure of the Manual

The manual is divided into 6 parts. Part 1 is about the Rural Infrastructure Market linkage
(I-BUILD) operation’s manual, Part 2 is about PRDP Scale-Up which includes the
component description, the types of eligible rural infrastructure, the objectives and target
outputs, the subproject development processes, the organizational set-up and
implementation arrangements and policies, Part 3 is the Rural Roads and Bridges, Part 4
is the Irrigation System Facilities, Part 5 is the Potable Water Supply and Part 6 is the
Value Chain Rural Infrastructure.

There are details in the manual that are placed in the appendices and annexes and the
others are referred to the other operations manual on procurement, financial management,
Geotagging and Good Governance, Social and Environmental Safeguards framework and
monitoring and evaluation.

The annexes pertain to the various sample forms and pre-formatted documents to be used
from pre-implementation to post-implementation of subprojects such as survey forms,
validation forms, feasibility study formats, program of works, typical drawings,
implementation progress monitoring forms, completion report format and other
templates.

1.3 Scope of the Manual

The manual applies to rural infrastructure subprojects that are proposed for
implementation under Rural Infrastructure Market Linkage (I-BUILD) component and
infrastructure support of the Enterprise Component (I-REAP Civil Works) of PRDP Scale
Up. It provides the guidelines on subproject Identification and Prioritization, subproject
Validation, subproject Preparation and Packaging of feasibility and detailed engineering
design, subproject Review, Evaluation and Approval, subproject Implementation and
subproject Operation and Maintenance.

The infrastructure subproject types are farm to market roads and bridges, irrigation
system facilities, potable water supply, value chain rural infrastructures and the civil
works of the enterprise component (I-REAP).

1.4 Use and Target Users

19
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The intended use of the manual will hope to harmonize the understanding of the different
levels of Project management and LGU Proponents. The primary users are the DA line
agencies and offices involved in the Project as well as the implementing LGUs and FCA’s
and participating POs and NGOs.

2.0 The Philippine Rural Development Project (PRDP) Scale Up

2.1 Background

Original Loan (OL)

Eight years into its implementation, the Philippine Rural Development Project (PRDP) has
gained a wealth of experience in its engagement with various partner agencies, particularly
with the Local Government Units (LGUs), in the delivery of the needed agriculture and
fisheries services for rural development. Building on the good practices, experiences, and
lessons learned from the Mindanao Rural Development Program (MRDP), the PRDP has
significantly leveled up in strengthening this partnership by espousing relevant
institutional and operational reforms in project implementation. The Project has become a
viable platform of engagement with local governments in terms of integrating the national
development agenda with local investment priorities through the commodity value chain
approach, which is expressed in the Provincial Commodity Investment Plans (PCIPs)
approved by all 81 provinces in the country.

First Additional Financing (AF-1)

This prompted the Project to request the US$ 450 million additional financing in 2016 to
address the excess demand underpinned by the LGUs’ strong interest and confidence to
partner with the DA in pursuing their infrastructure development priorities. The US$ 170
million first additional financing (AF-1) which became available in 2018 focused mainly on
additional rural infrastructures (I-BUILD) with 87% (PhP 8.6 billion) of the allocation. The
Project has since employed prioritization criteria to strategically rationalize the types of
investments to be funded, giving priority to LGUs that have not received PRDP
interventions yet and to LGUs with good implementation performance. An additional
selection and prioritization criteria for FMRs have been established as the subproject
pipeline points to FMRs and FMRs with bridges being the most in-demand in terms of the
type of investments comprising 94% of the I-BUILD allocation. This has further placed the
DA, through the PRDP, as the lead for providing rural access in the countryside. Already,
around 78 out of the 81 provinces with PCIPs have availed of funding with AF-1.

Second Additional Financing (AF-2)

The timing of the US$ 280 million second additional financing (AF-2), which only started in
September 2021, has made the Project responsive to the impacts brought about by the
COVID-19 pandemic. The PRDP has retrofitted the interventions under AF-2.
Infrastructure investments focus on rural access to address gaps in the movement of agri-
fishery products as well as on pre and post-harvest facilities to preposition and shore up
the supply of primary commodities in strategic areas.
20
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The addition of the EU co-financing grant to the AF-2 (or AF2-EU) has further broadened
the Project’s engagement with the more vulnerable sectors in Mindanao by focusing on
LGUs with low-income and capacities, conflict-affected areas, Indigenous Peoples, and the
BARMM.
The midterm evaluation study for PRDP conducted in 2018 underscored the importance of
FMRs in reducing transport and hauling costs of farm and fishery produce and lowering
production costs enabling farmers and fisher folks to offer better quality produce and
enjoy bigger profits. The FMRs have proven to yield positive spillover effects stimulating
economic and activities outside of the agriculture sector by bringing in more livelihood
opportunities in rural areas.

Lessons Learned in Implementing the PRDP

The valuable lessons learned from the implementation experiences of the component have
paved for developing and updating approaches and innovations to adhere to the
development goals of the original Project.

Learning-by-doing as an approach to capability building of Project implementers on

feasibility study preparation. This is perceived as an effective approach from the start of
the engagement until the completion of activities and sub-projects. This ensures that all the
stakeholders understand the process and the Project requirements, which allows a faster
preparation of documents and approval of subprojects. Progressive capacity-building
activities may be undertaken according to the level of competence and technical capacities
to progress from one competency to another without being overwhelmed with the
technicalities of information and knowledge.

The conduct of a Joint Technical Review (JTR) by the NPCO, PSO, and RPCO in the review of
subproject proposals is an effective approach to fast-track the subproject review and
approval process. It also prevents LGUs from a frequent revision of the project documents
like the Feasibility Studies (FS) and Detailed Engineering Designs (DEDs) as the project
review team (NPCO, PSO, and RPCO) provide collective and harmonized comments and
agreements.

Involvement of the communities in monitoring the implementation and Operation and

Maintenance (O&M) of subprojects encourages increased ownership of development
projects. Through the Citizens Monitoring Teams organized by the PRDP, communities are
able to obtain a higher sense of ownership of the subprojects in their localities, which is an
important element to the sustainability of the subproject. Instead of merely beneficiaries,
the citizens become partners of the DA and the proponent LGUs in ensuring the quality of
the subprojects.

Mainstreaming of the Infrastructure Quality Monitoring and Durability System (IQMDS) to

DA and LGU in the implementation of infrastructure SPs ensures road quality. Apart from
close supervision and monitoring of the works during implementation, the IQMDS is
proven to be effective in ensuring the quality of roads implemented. Project development
in infrastructure is multi-disciplinary, thus, it is ensured that the other dimensions of
subprojects aside from engineering aspects are taken into consideration, which are vital
during implementation and during the O&M stage where impacts are expected.

21
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2.2 Salient Features of PRDP Scale Up

The following are some of the enhancements from PRDP to PRDP Scale Up and features
that the component will continue to pursue.

1. It will cover 82 PLGUs, MLGUs and independent component cities in 16 regions. The
Proponent LGUs (Province/Municipalities/Cities) is the focal point of PRDP Scale
Up investment planning and implementation.

2. The DA-RFUs/RPCOs are given more responsibility for overseeing the

implementation of PRDP SU initiatives and the main source of support to LGUs.
This in effect mainstreams the PRDP approaches within permanent government
structures, i.e., the DA-RFUs. The PSO will provide technical support to the DA
RFUs/RPCOs while the NPCO will facilitate coordination with the different oversight
agencies and World Bank.

3. More capability building interventions – The planning and implementation

capacities of the participating agencies and implementing units of PRDP SU will be
strengthened especially in the planning approach using i) science-based tools in the
subproject identification and prioritization stage to include the vulnerability and
suitability assessment prepared by BSWM (VSA), expanded vulnerability and
suitability assessments (e-VSA) and value chain analysis (VCA); and (ii) aligning
rural infrastructure prioritization to local needs as prescribed in the provincial
commodity investment plans (PCIPs). The basis for prioritization and selection of
local infrastructure would be the regional AFMPs and the corresponding PCIPs.
Concepts of climate change infrastructure resiliency and geo-tagging will be
pursued in PRDP Scale Up.

4. Sustainability measures - the LGUs shall be required to submit a workable

operation and maintenance plan (O&M) together with proof of yearly budget
allocation for operation & maintenance activities during the submission of the
feasibility study for approval.

5. Emphasis to be placed on transparency and accountability through the Results

Based Monitoring and Evaluation (RBME) system highlighting the use of real time
information gathering through geo-tagging. This aids implementers assess
performance and make immediate adjustments as the Project progresses. Citizens
participation through Civil Society Organizations’ (CSOs) engagement in support to
the Open Government Partnership will be pursued in PRDP SU.

6. Safer and more climate resilient Farm to Market Roads, Bridges, Irrigation Systems
Facilities, Potable Water Supply and Value Chain Rural Infrastructures.

2.3 Goals, Objectives and Expected Outcomes

1. The Rural Infrastructure Market Linkage (I-BUILD) component aims to continue to

develop a strategic network of safe and climate-resilient rural infrastructure and
facilities supportive of the value chain in the Project areas.

22
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2. From the pipeline and from the newly proposed subprojects by the LGUs, the types
of infrastructure needed for PRDP scale up are farm-to-market roads, bridges,
Irrigation System Facilities, potable water supply, and value chain rural
infrastructure facilities.

3. At the end of PRDP Scale Up, the Rural Infrastructure Market Linkage (I-BUILD)
component envisions to attain the following of which are stated in the Project’s
Development Objectives:

✔ 30% reduction in transport costs in roads linking production areas to

markets.

✔ 40% reduction in travel time of farmer/ fisher folks from farm to market.

✔ 180% Cropping intensity increased in areas served with new/improved

irrigation services

✔ 90% of completed climate-smart value chain infrastructure facilities

operating as designed

Table 2-1 IBUILD Indicative Physical and Financial Targets:

Subproject Type No. Unit Physical Total Cost
SPs Target
(EPC)
Farm to Market Roads 141 kms. 931.09 20,475,205,384.27

FMR with Bridge 29 kms.- l.m. 6,234,558,987.95

Road Component kms. 243.31

Bridge Component l.m. 1,173

Bridges 12 l.m. 789 1,041,400,000.00

Irrigation 36 Ha. 2,517.64 803,539,026.74

Potable Water Supply 46 No. of HH. 64,512.00 2,456,930,517.75

Value Chain Rural 62 No. of SPs. 62 3,221,750,812.71

Infrastructure

Total 326 34,233,384,729.42

23
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2.4 Eligible Infrastructure Subprojects under PRDP Scale Up

The eligible rural infrastructure subprojects for PRDP Scale Up are construction, upgrading,
rehabilitation, repair, retro-fitting and completion of: (a) Farm to Market Roads and
Bridges; (b) Irrigation system facilities such as: CIP, CIS, SWIP, SPIS, Ram Pump, Spring
Development Irrigation, Drip Irrigation System, shallow Tube Wells and other pressurized
irrigation system (c) Potable Water Supply (Level 1 & 2) including desalination facility; and
(d) “Value Chain Rural Infrastructures”.

Value Chain Rural Infrastructures needed in the value chain to enhance the productivity
and give value added quantities to products in agriculture and fishery industries such as
production facilities, pre and post-harvest facilities, marketing facilities, consolidation
facilities, processing facilities are eligible for funding for PRDP Scale Up.

Specific eligible facilities for Value Chain Rural Infrastructure under IBUILD funds are
slaughterhouse / abattoir, poultry dressing plants, fish landing and facilities, feeder ports,
tramlines, watch towers, slope stabilization works, silos, warehouses, warehouse with
solar dryers/MPDP/mechanical dryers, cold storage facilities, agriculture composting
facility, livestock auction facility, fish hatcheries and fishponds facilities, trading
posts/centers and other infrastructure fully operated and managed by the LGU.

Other Value Chain rural infrastructures such as silos, warehouses, warehouse with solar
dryers, solar dryers, cold storage facilities, fish hatcheries and fishponds facilities, trading
posts/centers, food terminals equipped with cold or dry storage facilities, greenhouses,
corn drying to milling centers/facilities with warehouses, silos, rice processing centers (for
drying, milling, and packaging) with logistics facilities, fish trading centers with pre-
processing and cold storage facilities, livestock breeding and grow-out facilities, dairy
barns / production facilities, meat processing plants, dairy processing plants / centers with
testing facilities, feed mill and other facilities managed by FCAs, co-managed by the LGU
and FCAs and co-managed by FCAs and private entities are eligible IREAP funds.

The I-BUILD component will fund the subprojects identified under I-BUILD. These are
value chain rural Infrastructure types categorized as public infrastructure and are those
included in the I-BUILD identification and prioritization processes. I-REAP component will
fund the value chain rural infrastructure support facilities identified under I-REAP
procedures and processes to be operated by the LGUs and FCAs under the IREAP
guidelines However, the design, review, approval and implementation is under the I-BUILD
component.

The following lists of items or activities are not eligible for financing out of the proceeds of
the Loan through Sub-projects: (a) use of pesticides, herbicides, insecticides, and asbestos;
(b) purchase of land, ammunitions; (c) construction of school buildings; (d) construction of
health centers; (e) construction of dam with height of 15 meters and above; (f)
construction of roads within protected areas and national highways; (g) construction of
national irrigation systems; (h) repair of government offices and (i) activities for fiestas,
religious and other cultural activities.

2.5 Selection and Prioritization Criteria

24
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The infrastructure development needs in the PRDP Scale Up project areas are numerous
and varied. There is a high demand for IBUILD subprojects and its cost based from the
pipelined subprojects is much higher than the IBUILD allocated budget and need to be
prioritized. The project will continue to adopt the mechanism to prioritize the funding of
subprojects based on key socio-economic indicators that have the greatest impact and are
aligned with the development objectives and thrusts of the new project. The selection and
prioritization criteria shall guide the Rural Infrastructure Market Linkage (I-BUILD)
component to properly select and prioritize the most beneficial subprojects from several
infrastructure value chain options or combinations. The main objective of such selection
and prioritization criteria is to ensure that the selected subprojects will contribute
optimally to the attainment of the objectives of PRDP Scale Up.

1. General Selection Criteria

✔ Relevance – The subproject must be relevant to the PRDP Scale Up goal of

increasing rural incomes and enhancing farm and fishery productivity in the
targeted project areas.

✔ Importance – The subproject must be a felt need of the LGUs that will benefit
from the subproject.

✔ Urgency – The subproject must bring immediate results in terms of alleviating

the plight of the rural agricultural poor by contributing to their increase in
productivity and income.

✔ Viability – The subproject must be viable in the medium- and long-term not only
from an economic, but from the social and environmental viewpoints as well.

2. Specific Selection Criteria

In furtherance of the above general criteria, the following specifics are prescribed:

a. First Tier Criteria:

✔ The proponent LGU must be willing and capable to contribute the required
equity.

✔ The proponent LGU and FCA must have the technical capability to plan and
implement the subproject.

✔ The proponent LGU must have an Agricultural Bio-system Engineering Office.

(LGUs to create an ABE Office if they do not have one, in compliance to the CSC
Resolution No. 2200373 and Memorandum Circular No. 12, series of 2022). Until
such time that ABE Office is created the LGU has an option to hire AB Engineers.
(refer to DA Memo No. 17 s. 2023)

25
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

● The Project will suspend the implementation of the criteria on the LGU’s
ABE office or its creation for two (2) years starting from the loan
effectiveness of the project.
● LGUs that already have an ABE office shall include the office in the
structure of their P/M/C PMIU.
● LGUs that do not have an ABE office should provide a commitment to hire
an Agricultural and Bio-system Engineer and engage the ABE during the
implementation of the subproject as a member of the P/M/C PMIU.
● LGUs that have an ABE employed under the P/M/C Agricultural Office
should engage the ABE during the preparation of the proposal documents
and during implementation as a member of the P/M/C PMIU.

✔ LGUs that participated in DA Projects (eg. PRDP, MRDP, INFRES, CHARM) should
have had satisfactory performance (physical and financial) during the
implementation and in the O&M of completed SPs. There should be no DA
Projects’ policies violated like: i) fund diversion or unliquidated funds for a
period of 2 years from its due and non-payment of obligations; ii) not completed
and abandoned subprojects due to the LGU’s negligence; and iii) O&M rating of
“severe” or “bad” at the latest assessment period which connotes failure of
maintenance by the proponent.

b. Second Tier Criteria:

✔ The subproject must be a part of a priority value chain both in terms of the type
of agri-fisheries product and the geographical location of the value chain.

✔ The subproject must generate economic and social benefits.

✔ The subproject must not encroach on protected areas and shall not in any case
have adverse impacts on the environment and in consideration of the ADSDPP.

✔ The subproject except PWS must be in consonance with the provincial

commodity investment plan (PCIP) of the PLGU and the CCIP of the CLGU, the DA
regional Agriculture and Fisheries Modernization Plan (AFMP), National
Agriculture and Fisheries Modernization and Industrialization Plan (NAFMIP),
Regional Agriculture and Fisheries Investment Portfolio (RAFIP) containing key
inter-provincial investment areas as output of regional perspective planning
based on PCIPs, commodity roadmaps and Cluster Development Plans.

✔ The SP should serve an influence area that has significant agricultural potential
within the agriculture and fisheries production areas, coastal landing points,
and pre-postharvest and processing facilities.

26
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ FMR SP must be included in the FMR Network Plan and irrigation SP must be
included in the Irrigation / SSIP masterplan.

3. Prioritization Criteria

Even after the number of proposed subprojects were screened on the basis of the above
criteria, based from the pipelined subproject, there are more sub-projects than the
funds to implement them. This is where prioritization needs to be done and the
following should be the prioritization guide:

✔ Number of beneficiaries – the bigger the higher the priority.

✔ EIRR – at least 10%; the higher the EIRR, the higher the priority.

✔ Per capita subproject cost – the lower the cost per beneficiary, the higher the

priority.

✔ Subproject location – higher priority shall be given to subprojects located in

LGUs that had no or limited government assistance similar to the type of

subprojects being proposed.

✔ Gender and/or children sensitivity – all other things being equal, a subproject

with more women and/or children to be benefited shall have higher priority.

✔ Level of poverty – if reliable statistics are available, the higher the poverty level,

the higher the priority.

✔ SPs with established right-of-way (ROW) have higher priority

The IBUILD prioritization scheme for PRDP SU is attached as Appendix A

27
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2.6 Schedule of Implementation

Table 2-2 IBUILD Indicative Physical Target per year
Subproject Type Unit Year 1 Year 2 Year 3 Year 4 Year 5 Total
Farm to Market Roads kms. - 101.15 391.64 313.97 367.64 1,174.40

Bridges l.m. - - 178.00 315 1,469.00 1,962.00

Irrigation Ha. 60.00 1,070.00 625.00 662.64 100.00 2,517.64
Potable Water Supply No. of - 5,403.00 5803.00 11,331.00 41,975.00 64,512.00
HH.
Value Chain Rural No. of 12.00 16.00 9.00 15.00 10.00 62
Infrastructure SPs.

Table 2-3 IBUILD Indicative Financial Target per year (EPC)

Subproject Unit Physical Year 1 Year 2 Year 3 Year 4 Year 5 Total
Type Target

Farm to kms. 1,174.40 3,428,023,673.53 8,102,571,268.33 6,806,264,943.10 5,366,481,581.83 1,807,101,680.64 25,510,443,147.45

Market Roads

Bridges l.m. 1,962.00 105,054,580.58 267,505,152.04 393,902,025.85 1,115,119,656.32 406,730,382.77 2,288,311,797.59

Irrigation Ha. 2,517.64 34,952,000.00 407,460,000.00 161,331,600.00 197,396,124.06 2,399,302.67 803,539,026.74

Potable Water No. of 64,512.00 206,141,981.44 313,381,331.69 494,091,456.24 1,170,763,039.53 272,552,708.80 2,456,930,517.75
Supply HH.

Value Chain No. of 62 830,395,498.91 596,784,941.52 927,993,849.33 777,971,033.99 88,605,488.94 3,221,750,812.71

Rural SPs.
Infrastructure

4,604,567,734.48 9,687,702,693.59 8,783,583,874.54 8,627,731,435.75 2,577,389,563.87 34,280,975,302.24

28
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

13.43% 28.26% 25.62% 25.17% 7.52% 100%

Table 2-4 IBUILD Indicative Financial Target per year (LP+GOP)

Subproject Unit Physical Year 1 Year 2 Year 3 Year 4 Year 5 Total
Type Target

Farm to kms. 1,174.40 3,085,221,306.19 7,292,314,141.50 5,936,916,085.48 4,132,414,548.64 1,364,896,215.78 21,811,762,297.59

Market Roads

Bridges l.m. 1,962.00 94,549,122.53 240,754,636.84 328,848,454.61 845,954,233.16 302,119,043.69 1,812,225,490.83

Irrigation Ha. 2,517.64 31,456,800.00 366,714,000.00 133,215,280.00 149,571,326.85 1,679,511.87 682,636,918.72

Potable Water No. of 64,512.00 185,527,783.30 282,043,198.53 385,625,303.70 876,311,827.25 203,227,432.64 1,932,735,545.42
Supply HH.

Value Chain No. of 62 747,355,949.02 537,106,447.37 691,105,655.95 564,917,852.84 66,503,842.26 2,606,989,747.46

Rural SPs.
Infrastructure

4,144,110,961.04 8,718,932,424.23 7,475,710,779.74 6,569,169,788.74 1,938,426,046.25 28,846,350,000.00

Table 2-5 IBUILD Indicative Financial Target per year (LP)

Subproject Unit Physical Year 1 Year 2 Year 3 Year 4 Year 5 Total
Type Target

Farm to kms. 1,174.40 2,742,418,938.83 6,482,057,014.67 5,256,289,591.17 3,595,766,390.46 1,184,186,047.72 19,260,717,982.84

Market Roads

Bridges l.m. 1,962.00 84,043,664.47 214,004,121.63 289,458,252.02 734,442,267.53 261,446,005.41 1,583,394,311.07

Irrigation Ha. 2,517.64 27,961,600.00 325,968,000.00 117,082,120.00 129,831,714.44 1,439,581.60 602,283,016.04

Potable Water No. of 64,512.00 164,913,585.16 250,705,065.36 336,216,158.08 759,235,523.29 175,972,161.76 1,687,042,493.64
Supply HH.

29
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Value Chain No. of 62 664,316,399.13 477,427,953.22 598,306,271.02 487,120,749.44 57,643,293.37 2,284,814,666.18

Rural SPs.
Infrastructure

3,683,654,187.59 7,750,162,154.87 6,597,352,392.29 5,706,396,645.17 1,680,687,089.86 25,418,252,469.78

Table 2-6 IBUILD Indicative Financial Target per year (GOP)

Subproject Unit Physical Year 1 Year 2 Year 3 Year 4 Year 5 Total
Type Target

Farm to kms. 1,174.40 342,802,367.35 810,257,126.83 680,626,494.31 536,648,158.18 180,710,168.06 2,551,044,314.75

Market Roads

Bridges l.m. 1,962.00 10,505,458.06 26,750,515.20 39,390,202.59 111,511,965.63 40,673,038.28 228,831,179.76

Irrigation Ha. 2,517.64 3,495,200.00 40,746,000.00 16,133,160.00 19,739,612.41 239,930.27 80,353,902.67

Potable Water No. of 64,512.00 20,614,198.14 31,338,133.17 49,409,145.62 117,076,303.95 27,255,270.88 245,693,051.78
Supply HH.

Value Chain No. of 62 83,039,549.89 59,678,494.15 92,799,384.93 77,797,103.40 8,860,548.89 322,175,081.27

Rural SPs.
Infrastructure

460,456,773.45 968,770,269.36 878,358,387.45 862,773,143.58 257,738,956.39 3,428,097,530.22

Disclaimer:
The above physical and financial figures are used for estimating and planning purposes only and shall not be misconstrued as allocations. The
Project will allocate the funds on a first compliance first serve basis as it accepts eligible, viable, complete and ready proposals from the LGUs

30
Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

31
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2.7 Pre-implementation Activities

To ensure the efficient implementation of rural infrastructure subprojects, several

activities need to be undertaken prior to the actual implementation as set-out:

1. The conduct of the social and institutional capacity assessment;

2. Survey of displaced persons;

3. Conduct of free and prior inform consultation in IP areas and secure the
necessary Free and Prior Inform Consent (FPIC) clearances from NCIP;

4. The mobilization of partner agencies and institutions;

5. The execution of an Information, Education and Communication (IEC)

campaign to harness public support for PRDP Scale Up; and

6. Subproject identification, prioritization, preparation of FS and detailed

engineering design by LGUs.

The implementation of various capacity building activities will be done specially for
those first time LGUs as the need arises so that actual outputs will be realized after
each capacity building activity.

2.8 Post-implementation Activities of Subprojects

The project will continue to emphasize the importance of proper operation and
maintenance and the crucial role of LGUs for SP sustainability. Sanctions for non-
compliance of the operation and maintenance requirements, like suspension of
further releases or disqualification from further participation in PRDP Scale Up and
future DA projects, shall be imposed.

Likewise, the O&M audit result following the O&M program undertaken in each DA
Project like PRDP / InFRES / MRDP / CHARMP shall be used by the RPCOs/PSOs in
rating any of the beneficiary LGUs desiring to avail of further support from PRDP
Scale Up. Results of the audit should show an overall satisfactory rating for the LGU
to qualify for further PRDP Scale Up investments in all project components.

Operation and maintenance of irrigation facilities shall be the responsibility of the

LGU. Institutional development activities prior to and during the first year after
subproject turnover shall focus on enabling the Irrigators Association (IA) to
adequately undertake day-to-day operational activities and become financially self-
sustaining through efficient collection of irrigation service fees. The irrigators
association for new irrigation systems must be registered from any authorized
government agency prior to subproject turn-over.

32
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Communal irrigation systems (CIS) currently under the supervision of the NIA,
even if rehabilitated under PRDP, shall continue to be monitored and assisted for
O&M by the NIA. IAs that had existing repayment obligations with the NIA shall
continue to pay their amortization to the NIA. However, the cost of rehabilitation
shall not be added to their obligation.

The operation and maintenance of new schemes constructed by the LGU shall be
monitored and assisted by the LGU through the Provincial / Municipal / City
Agriculture Office.

The operation and maintenance of the potable water system shall be the
responsibility of the LGU and endeavors to gradually prepare the water users
association to be financially self- sustaining through a well-structured tariff. The
water users’ association must be registered from any authorized government
agency before subproject turn-over.

For the Value Chain Rural Infrastructure (VCRI) types under I-BUILD, the LGU is
responsible for the operation and maintenance. For the value chain rural
infrastructure support facilities under I-REAP, the LGUs and FCAs managing the
facility are responsible for the operations and maintenance of the IREAP civil
works.

Operations and maintenance of value chain rural infrastructure includes not only
the building but also structures as support to the building such as parking area,
access road, site development works, drainage systems and others.

For purposes of budgeting the LGUs O&M fund, the unit cost range of operation and
maintenance per subproject type are as follows

Table 2-7 Operation & Maintenance Indicative Unit Cost per Subproject Type
Subproject Type Unit O&M Unit Cost (PhP)

Gravel Road Km PhP. 65,000.0 to 110,000.0

/km/annum

Concrete Road Km PhP. 50,000.0 to

90,000.0/km/annum

Bridge Lm PhP 6,000.0/lm/annum

Irrigation System Hectares 3 to 5 cavans of

palay/ha/cropping or its peso
equivalent

Potable Water % of investment 11%of investment/annum.

System cost

Buildings Square meter PhP 200/sqm of floor

area/annum.

33
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

To ensure that funds are available during the O&M period, the LGU must ensure that
the O&M plan and budget are included in the Annual Investment Plan (AIP) covered
with appropriations ordinance. The LGU can open a trust fund account for the O&M
fund deposit or preferably using the trust fund account used during the subproject
implementation.
2.9 Subproject Development Process

Table 2-8 Subproject Processes, Outputs & Responsible Agency

Phases Process & Expected Outputs Responsibility
1. Subproject Subprojects identified and prioritized were the I-PLAN, I-BUILD,
Identification and results of a participatory planning process such Econ, GGU, , SES,
Prioritization as Value Chain Analysis (VCA), Rapid Marketing LGUs
Analysis (RMA), science based tools such as the
expanded Vulnerability and Suitability Analysis
(e-VSA), Participatory Rural Appraisal
Participatory Social Analysis (PRA-PSA), and
other planning tools. Special input in this
planning phase is an orientation and
appreciation of climate change with due
emphasis to hazard and vulnerability
assessment, its magnitude, frequency and
locational impact to the subproject and
importance of stakeholders’ participation.

Expected Outputs:

a) List of SPs based on the localized AFMP,

PCIP; the DA regional AFMP, Regional
Perspective Plan, NAFMIP, Regional
Agriculture and Fisheries Investment
Portfolio (RAFIP) containing key inter-
provincial investment areas as output of
regional perspective planning based on
PCIPs, commodity roadmaps and Cluster
Development Plans

b) Geo-tagged proposed sub-projects;

c) Detailed information or subproject profile

for the top 3 priority SPs.

2. Subproject Gathering of relevant data needed in the I-PLAN, I-BUILD,

development of the top 3 proposed SPs. The Econ, GGU, SES
Validation
data per SP is subjected to analysis in order to LGU
establish its technical, economic, institutional,
social and environmental viability. In this phase,
it hopes to subject the identified hazard and Includes I-REAP
vulnerability to a more technical consideration. when the
proposed SP is
The level of vulnerability of the population and

34
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

assets exposed to hazards will be established. VCRI and has an

overlap on the
Members of the validation team are from
eligible SPs for I-
IBUILD, SES, Econ, GGU. For IREAP civil works, BUID and I-REAP
IREAP shall be a member of the validation team.

Expected Outputs: Validation report to

contain:

a) initial economic analysis,

b) subproject preliminary screening checklist
(social, environmental and vulnerability);

c) technical analysis; and

d) recommendation for detailed FS and DED or

not?
3. Subproject The feasibility study precedes the preparation of LGU with the
the detailed engineering design, program of assistance of
Preparation and
work, operation and maintenance plan, PRDP
Packaging of
occupational and health safety program, Bid
Feasibility Study
documents and subproject Implementation
and Detailed
Management Agreement (IMA). The preliminary
Engineering screening checklist shall be considered in the
design options for a safe and climate resilient
Design
infrastructure. In the adoption of the best
technical options or alternative structures, there
may be instances that it has negative impacts to
the environment and its social acceptability by
the community specially in Indigenous People’s
(IP) Area. In which case, the Project has to
undergo the process of coming-up with an
acceptable alternative design through the
Context Sensitive Solutions (CSS) prescribed in
the DPWH Design Guidelines, Criteria &
Standards as of 2015. CSS is a collaborative,
interdisciplinary approach that involves all
stakeholders to develop infrastructure that fits
its physical setting and preserves scenic,
aesthetic, historic and environmental resources,
while maintaining safety and mobility. CSS is an
approach that considers the total context within
which an infrastructure project will exist. CSS
principles include the employment of early,
continuous and meaningful involvement of the
public and all stakeholders throughout the
subproject development.

35
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Expected Outputs:

a) FS Report, DED, Plan, POW, O & M Plan,

occupational and health safety program, Bid
Documents, IMA.

b) Social and environmental safeguards

secured, e.g. FPIC, CNC and ECC when
appropriate)

c) LGU equity commitment both for subproject

implementation and O&M.

4. Subproject RPCO/PSO/NPCO to ensure preparation of RPAB, RPCO,

Subproject Appraisal Report (SPAR), ensure PSO, NPCO, LGUs
Appraisal,
completeness, consistency and correctness of all
Review,
documents prior approval. The RPAB will only
evaluation and
approve subprojects with complete clearance
approval
from components and units. (IPLAN, IBUILD,
SES, Econ, GGU, MEL, Compliance, Finance,
Procurement)

Conduct of NPCO-PSO-RPCO and LGU Joint

Technical Review of SPs to facilitate compliance
of technical requirements, RPAB approval and
the eventual issuance of NOL-1.

On the technical review, Lower office may seek

assistance to higher office in the review of
critical projects such as bridges, FMRs over 5
kilometers, irrigations subprojects, PWS with
more than 1000 households target beneficiaries,
feeder ports, fish landings aside from the NOL-1
review threshold.

For special types of subprojects, the RPCO shall

seek technical assistance from agencies like
RFO-RAED, Philmec, BSWM, BFAR, NMIS,
PhilFIDA, NIA, LWUA, DPWH, BAFE etc.

Expected Output:

a) Appraisal Report.

b) RPAB Resolution

c) Signed subproject Implementation

Management Agreement (IMA) between DA-
PSO and LGU

d) NOL-1 and CAF issuance

5. Subproject LGU procurement will follow the provisions of PRDP, LGU and
RA 9184 and World Bank Procurement

36
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Implementation Guidelines. Contract management and Contractor

(procurement supervision is the primary role of the LGU.
and contract Quality assurance and control mechanisms will
implementation) be set-up anchored on (a) defining the minimum
required implementation structure; (b) the need
for contract review; (c) inspection and testing;
(d) document control and (e) setting-up of
sustainability mechanism.

Refer to the Infrastructure Quality Monitoring

and Durability System (IQMDS) sub-manual of
PRDP I-BUILD.

Expected Output:

a) Bid Evaluation Review (BER)

b) Issuance of NOL 2

c) Perfected Contract

d) Completion report/Sub-project Turn-over

6. Subproject To ensure continuous use of facilities, end users ROMAT,

will be formed into groups/associations and Beneficiary
Operation and
registered for the proper operation and community, LGU
Maintenance
maintenance of completed facilities/structures.
It may be a (i) government entity or road user
association for FMR and multi-purpose
buildings; (ii) an irrigators association, farmers
and fisher folk association for communal
irrigation system and other support facilities;
and (iii) water user association (BAWASA)
and/or any government instrumentalities for
water systems.

SPs implemented by the LGU should include the

municipal, barangay and or FCA in the operation
and maintenance organizational structure to
ensure proper coordination and accountability.

An operation and maintenance audit team will

be instituted to monitor O&M compliance of the
LGUs for a period of 10 years. The City,
Municipal, Provincial and Regional Project
Monitoring Council (CPMC, MPMC, PPMC, RPMC)
will regularly monitor on a quarterly basis the
implementation of the operation and
maintenance plan in each LGU. While the DA-
Regional Operation and Maintenance Audit

37
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Team (ROMAT) will assess performance of the

LGUs once a year.

Expected Output:

a) O & M Groups and Regional Operation and

Maintenance Audit Team
organized/expanded and
recognized/registered

b) The LGU activated their Local Project

Monitoring Councils with the inclusion of
PRDP SU completed subprojects to be
monitored for its proper operation and
maintenance

c) O & M budget appropriated.

d) Fully functional and well maintained

facilities

Note: For wider participation, the CSOs must be invited to participate in all the six
(6) subproject development processes.

More detailed description of the responsibilities of the above-named implementers

are discussed in the implementation arrangement.

Figure 2-1 also shows the activity flow, output, responsibility matrix and
timeframe from: A-B) Project Identification and Prioritization; B-C) Validation; C-
D) Feasibility Study and DED Preparation; D-E) Review and Approval; E-F)
Procurement and Contract Implementation and F-G) Operation and Maintenance.
The shortest duration from SP identification to SP completion takes 1.5 years and
2.5 years for the longest duration.

Figure 2-1 I-BUILD Activity Flow

38
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2.10 Detailed I-BUILD Activity Flow

The following activities are arranged in sequence as an explanatory note of the I-

BUILD Activity Flow Chart. The threshold level for the issuance of NOL-1 and NOL-2
from RPCO, PSO, NPCO and WB is denominated in US dollar value during RPAB
approval and bid opening for NOL-1 and NOL-2 respectively.

1. Request for Proposal - the RPCO upon establishing that the PCIP preparation
is complete shall request the LGU to submit request for proposal.

2. Prepare Letter of Intent (LOI) – the LGU upon receipt of the request for
proposal shall prepare the letter of intent to participate with the Project.

3. The LGU through the assistance of RPCO conducts workshops with

stakeholders to prioritize SPs. The geo-tagged list of priority SPs shall be
endorsed by the Provincial Development Council (PDC) for PRDP Scale Up
funding. Included is a subproject profile containing the details of the top
three priority SPs.

4. Submit LOI – the LGU to submit the LOI with the geo-tagged list of SPs with
the subproject profile for the first three priority SPs duly endorsed by the
PDC to the RPCO.

5. Review of LOI and Lists of SPs – the RPCO upon receipt of the LOI and SP list
shall review if the list of SPs is within the PCIP priority commodity value
chain. If it conforms, the RPCO and PSO to conduct field validation together
with the LGU. NPCO may join the validation for critical subprojects and upon
the request of RPCO/PSO.

39
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

6. Conduct Joint Validation – the conduct of this activity will be done for SPs
with geatag KMZ file and subproject profile. The SP lists will be validated by
the RPCO and PSO to check the validity of the sets of information provided by
the proponent LGU. Initial costing and economic analysis will be prepared by
the validation team to include appreciation of the institutional, vulnerability,
social and environmental safeguards. The validation report to be provided to
the proponent LGU and an advisory to proceed or not to proceed with the
preparation of the FS. Members of the validation team are from IBUILD, SES,
Econ, GGU. For IREAP civil works, IREAP shall be a member of the validation
team.

7. Prepare Feasibility Study (FS) – the proponent LGU will proceed with the FS
preparation only upon the advice of the validating team through the RPCO.
The LGU to prepare the FS and internally within the P/M/CPMIU, it shall
review and approve the FS report.

8. Conduct Survey and Prepare DED, POW, O&M Plan, Occupational Health and
Safety Program (OHSP), Bid Documents and draft the subproject
Implementation Management Agreement (IMA) – the LGU shall prepare the
above requirements while the RPCO provides technical support.

9. Review of FS, DED, POW, O&M Plan, OHSP, bid documents and IMA – part of
the review process is the conduct of a field appraisal and the preparation of
the Subproject Appraisal Report (SPAR) as reference for the RPAB.

10. deliberation. All clearances shall be secured from components and units
before the RPCO schedules the RPAB deliberation and approval of the
subproject.

11. Approve SP – the RPAB shall deliberate on the merits of the SP proposal and
if found compliant then issue resolution of approval or disapproval. For SPs
needing PSO, NPCO or WB NOL, the approved SP shall be endorsed to the
appropriate management level depending on the thresh hold.

12. Issuance of NOL-1 – the issuance of No Objection Letter 1 is in accordance to

the delegated Prior Review Threshold:

Table 2-9 IBUILD Prior Review Threshold

Cluster/Office Prior Review Threshold in US$
World Bank
National Project Coordination Office >2,000,000.00 and Above
(NPCO)
Project Support Offices (PSOs) >1,000,000.00 < 2,000,000.00
Regional Project Coordination Office < 1,000,000.00

13. Issue Notice to Proceed to Procure – the RPCO shall notify the LGU to proceed
with the procurement upon receipt of NOL-1.

40
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

14. Conduct Pre-Procurement Conference – the BAC convenes to check the

requirements of the SP for bidding. The presence of RPCO/PSO
representative/s is required.

15. Publish or Post Advertisement and Issue Bid Documents– the proponent LGU
shall cause the advertisement/publication and issuance of bid documents to
bidders.

16. Conduct Pre-Bid Conference – the BAC convenes with the prospective
bidders to discuss the requirements of the bidding process (technical,
financial and legal).

17. Submit and Open Bid Proposals – the BAC convenes to receive, open and
evaluate bid proposals.

18. Prepare Bid Evaluation Report– the BAC through the technical working group
shall review, evaluate and rank bidders from the lowest calculated and
responsive bidder and prepare the BER.

19. Review of BER– the RPCO reviews the BER and submits review result for
objection or no objection at the appropriate management level (PSO, NPCO,
WB) for issuance of NOL-2.

20. Concur BER– the PSO/NPCO/WB concurs review result and issues NOL-2
following the set review thresh-hold.

21. Award and Contract perfection to the Lowest Calculated and Responsive
bidder– the BAC recommends awards and LGU execute the contract once the
BER is issued NOL-2.

22. Issue Notice to Proceed – the LGU issue NTP and the contractor starts
materials delivery, manpower and equipment mobilization and actual work
construction.

23. Supervise, Monitor, Evaluate Contract Progress Billing – the key

responsibility of supervising and paying work accomplishment are the
proponent LGUs while the key to a successful monitoring and evaluation rest
upon the executing and oversight agencies. The progress billing documents
will be supported with geotagged photos equivalent to the quantity billed to
be submitted by the contractor. A joint field inspection from the LGU, CSOs,
RPCO and PSO representatives is required for every billing.

24. Report 100% Completion – the contractor reports to the LGU 100%
completion and LGU prepares the completion report prior to the final
inspection.

41
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

25. Conduct Final Inspection – the RPCO, PSO and LGU conduct final inspection. It
is advised that the COA technical auditor and CSO representatives are invited
to join the final inspection.

26. Turn-over of Site Possession to LGU – the contractor turns-over the site
possession to the LGU. The LGU accepts the site possession and likewise
initiates the turn-overs from DA to LGU and LGU to the appropriate
associations or entities for proper operation and maintenance of the
facilities. The turn-over to the end-users for proper operation and
maintenance does not in any way relieve the LGU of its responsibility over
the maintenance of the completed subproject for 10 years.

27. Ensure Proper Operation and Maintenance – the LGU together with the O & M
groups or end users operate and maintain the completed SP. The DA-
Regional Operation and Maintenance Audit Team (ROMAT) will assess
performance of the LGUs once a year.

2.11 Organizational Structure, Functional Responsibilities and

Implementation Arrangements

2.11.1 Organizational Structure

Figure 2-2 Organizational Structure at the Project Level

Figure 2-3 Organizational Structure at the NPCO

42
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Figure 2-4 Organizational Structure at NPCO-IBUILD

The following constitutes the minimum staff requirement for the efficient
implementation of the activities at the NPCO-IBUILD component:

1 – Chief of Rural Infrastructure component (IBUILD Component Head)

43
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Regular DA employee designated by the National Project Director

Full time staff (Hired)

1 – Alternate Component Head

1 – Senior Rural Infrastructure Specialist

1 – Farm-to-market Roads & Bridges Specialist

1 – Water and Irrigation Specialist

1 – Value Chain Rural Infrastructure Specialist

4 – Rural Infrastructure Engineer (1 RIE per cluster)

1 – Rural Infrastructure Engineer (RIE for IREAP Civil Works)

1 – Project Development Associate (Preferably an Engineer /

Engineering Graduate)

Figure 2-5 Organizational Structure at PSO

Figure 2-6 Organizational Structure at PSO IBUILD

44
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The following constitutes the minimum staff requirement for the efficient
implementation of the activities at the PSO-IBUILD component:

Full time staff (Hired)

1 - Chief of Rural Infrastructure component (IBUILD Component Head)
1 - Rural Infrastructure Specialist per Region
1 - Rural Infrastructure Specialist for IREAP Civil Works
1 - Project Development Associate
✔ (Civil Engineer / Agriculture and Bio-system Engineer)

Figure 2-7 Organizational Structure at RPCO

Figure 2-8 Organizational Structure of RPCO-IBUILD

45
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The following constitutes the minimum staff requirement for the efficient
implementation of the activities at the RPCO-IBUILD component:
1 – Chief of Rural Infrastructure component (IBUILD Component Head)
✔ should be the head of RAED or assigned by the Regional Project
Director

Full time staff (Hired)

1 – Rural Infrastructure Specialist
1 – Rural Infrastructure Engineer (RIE) per Province
1 – Rural Infrastructure Engineer (RIE) for IREAP Civil Works
1 – Project Development Associate
✔ (Civil Engineer / Agriculture and Bio-system Engineer)

2.11.2 Functional Responsibilities

LGU Level –Provincial / Municipal / City Project Management and

Implementing Unit (P/M/C PMIU)

The Provincial, Municipal and City local government unit will be the implementing
arm of the PRDP Scale taking into consideration value chain integration and
economies of scale. The PLGU shall localize the regional AFMP and with its own
agri-fishery sector plans through a process of an updated and enhanced expanded
Vulnerability and Suitability Assessment and Value Chain Analysis to come up with
its provincial commodity investment plan (PCIP). To be able to implement the
investments identified in the plan, an implementing unit (Provincial / Municipal /
City Project Management and Implementing Unit) will be established for the
purpose.

The P/M/C PMIU will be responsible for the overall planning, budgeting,
procurement and implementation of PRDP Scale Up I-BUILD activities and
infrastructure subprojects as appropriate at the LGU level.

46
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

In cases where the implementing LGUs finds it relevant and strategic to partner with
other LGUs (PLGU, MLGUs, CLGUs BLGUs) and the private sector to effectively
implement the subprojects, the implementing LGU may enter into appropriate
covenants which shall form part of the subproject Implementation Management
Agreement (IMA) between the DA and the implementing LGU.

At the provincial level, a committee shall be constituted from the existing

Infrastructure Committee of the Provincial Development Council (PDC) to review
and endorse the PCIP. The committee composition includes the PPDC, PEO, PA,
PAFC Chairman, Chairman of the agriculture committee of the Sanguniang
Panlalawigan. The additional members shall be co-opted from accredited private
agricultural sectors.

At the Provincial level, a Provincial Project Management and Implementation Unit

(PPMIU) will be organized which will be responsible, among other functions, in
coordinating the Project activities implemented by participating municipalities and
cities within their respective jurisdictions. The PCIP will be prepared in
coordination with the Provincial Planning and Development Office (PPDO),
Provincial Agriculture Office (PAO) and the Provincial Engineer’s Office (PEO) in
consultation with all the agri-fisheries stakeholders. Road network planning shall
be undertaken by the LGUs on the year prior to the projected implementation of
their rural infrastructure component. The PPMIU is preferably headed by the
Provincial Planning and Development Office (PPDO), and includes the Provincial
Engineering Office (PEO), the Office of the Provincial Agriculture (PAO), Finance
Offices, PENRO and other offices the Chief Executive deemed necessary.

At the Municipal/City level, a Municipal/City Project Management and

Implementation Unit (M/CPMIU) will be organized which will be responsible,
among other functions, in coordinating the Project activities implemented by
participating municipalities and cities within their respective jurisdictions. The M/C
PMIU is preferably headed by the Provincial Planning and Development Office (M/C
PDO), and includes the Municipal/City Engineering Office (M/CEO), the Office of the
Municipal/City Agriculture (M/CAO), Finance Offices, Environment and Natural
Resources Office (M/CENRO) and other offices the Chief Executive deemed
necessary.

Regional Project Coordinating Office (RPCO)

The RPCO will (i) serve as the technical arm and secretariat to the Regional Project
Advisory Board (RPAB); (ii) review and endorse I-BUILD subprojects for funding to
RPAB; (iii) review and endorse I-BUILD subprojects to PSO for issuance of NOL; (iv)
coordinate the execution of rural infrastructure development processes at the
regional level; and (v) serve as the regional operations arm of the Project.

The RPCO is headed by the RED and a designated RPCO Head preferably the
Regional Technical Director (RTD) for Operations who will be responsible for the
performance of the four (4) Operations Units that will look after the four
components of PRDP Scale Up namely IPLAN, IBUILD, IREAP and ISUPPORT.

47
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Project Support Office (PSO)

The PSO will (i) provide technical support and capability building to the RPCOs and
LGUs; (ii) review and endorse documents of I-BUILD subprojects that require
objection or no objection letter from NPCO and World Bank; and (iii) review
requirements for issuance of NOL 1, NOL 2, CAF and release of funds to LGU.

It is headed by the Project Director (PD) and a Deputy Project Director (DPD) who
will be responsible for the performance of four (4) Operations Units that will look
after the four components of PRDP Scale Up namely IPLAN, IBUILD, IREAP and
ISUPPORT.

National Project Coordination Office (NPCO)

The NPCO will serve as clearinghouse for policy issues and coordination between
the donor, other line agencies and the implementers. It shall maintain a centralized
monitoring, evaluation and learning unit, finance unit, IEC unit and administrative
unit. The NPCO will i) review and endorse documents of I-BUILD subprojects that
require objection or no objection letter from WB and ii) review requirements of SPs
within its threshold; iii) shall also serve as secretariat to the National Project
Steering Committee.

The NPCO shall be headed by the DA Undersecretary for Operations, as PRDP

National Project Director, or any DA official designated as PRDP National Project
Director.

A Project Director at the NPCO takes care of the day to day management of
operations of the Project.

Creation of Special Bodies for SP Approval and Policy Direction:

National Project Steering Committee (NPSC)

The NPSC will provide overall policy direction and management guidance in the
implementation of PRDP Scale Up. It will be chaired by the DA Secretary with
membership from DA attached agencies and bureaus.

The NPSC will convene at least twice a year to provide policy direction and approval
of the annual work and financial plan of the Project.

Regional Project Advisory Board (RPAB)

The RPAB (Regional Project Advisory Board) is composed of representatives of the

DA (Regional Executive Director as Chairman), Department of the Interior and Local
Government (DILG Regional Director), Department of Environmental and Natural
Resources (DENR Regional Director), Department of Agrarian Reform (DAR

48
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Regional Director), Department of Trade and Industry (DTI Regional Director), and
Department of Public Works and Highways (DPWH Regional Director) as members
and it convene as frequently as needed to approve SP packages.

Linkages and complementation with other agencies:

The contribution of partner agencies having oversight functions will also ensure
financial, technical, and legal consistency of national policies and in particular-
guidance in the execution of the social and environmental safeguards of the Project.
For instance i) DILG will help the project in its advocacy for transparency and good
governance, monitoring LGU performance and provision of capability building; ii)
DENR and NCIP help in the monitoring of ESMP and issuance of permits like CNC
and FPIC; iii) DAR helps the Project where Agrarian Reform Community (ARC) are
covered by the PCIP, the DAR bridge project and other Agrarian Reform
Communities (ARC) support infrastructures will be considered during the planning
stage to avoid overlapping of inputs; iv) DPWH will provide technical support in the
design of bridges, materials testing and spatial integration of the Project’s FMR into
the national road network; v) DTI and Department of Science and Technology
(DOST) will help ensure the use of quality materials in the construction industry and
occupational safety and health programs at the work stations, and vi) DSWD helps
integrate the 4Ps beneficiaries and mostly are the targeted poor farmers/fishers in
the PRDP Scale Up Inclusive Agriculture Modernization & Rural Development.

2.11.3 General Implementation Arrangements

The Department of Agriculture and the Department of Public Works and Highways
jointly issued Memorandum Order Number 01 series of 2013 dated July 18,2013 to
strengthen the implementation of the construction of Farm to Market Roads and all
infrastructure related subprojects under the Philippine Rural Development Project.
The implementation of the infrastructure subprojects will be closely coordinated
with the DPWH in terms of design standards, road network rationalization and
quality assurance.

The Implementation of Irrigation subprojects will be closely coordinated to NIA and

the implementation of the value chain rural infrastructure will be closely
coordinated with the Department’s attached and bureaus such as BAFE, NMIS,
Philippine Fiber Industry Development Authority (PhilFIDA) and VC rural
infrastructure shall comply with the requirements of the National Building Code of
the Philippines.

In the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), the

Minister of the Ministry of Agriculture-Fishery and Agrarian Reform (MAFAR) for
BARMM shall have similar authorities and responsibilities as the Regional Executive
Directors (REDs) of the DA-RFUs.

The implementing LGUs (PLGU/MLGU/CLGU) shall prepare and review all

subproject proposals and seek endorsement from the Provincial Development

49
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Council (PDC) for those that comply with PRDP Scale Up guidelines. The subproject
proposals should be within the rural infrastructure development in the LGUs.

The implementing LGU shall form the Provincial/Municipal/City Project

Management and Implementing Unit (P/M/CPMIU). The P/M/CPMIU shall be
responsible for implementing its rural infrastructure subprojects. Such
responsibility shall include, but not limited to, the preparation of subproject
proposals, feasibility studies, detailed engineering designs, conduct of bidding and
award, contract administration and proper operation and maintenance.

Where the subproject packages cut across more than one

Province/Municipality/City, the proponent LGU may seek clearance to the affected
Province/Municipality/City for the approval and implementation of the subproject.
The PLGU may become the procuring entity where subprojects cut across more than
one Municipality.

Liquidated damages deducted from the contractors’ contract amount shall be

credited to the LGUs’ accounts. The liquidated damage amount shall be used for the
maintenance of completed subproject.

LGUs whose completed subprojects funded under the original PRDP which were
poorly maintained as per maintenance standards and specifications established by
PRDP shall be sanctioned through temporary suspension of further investments
until they show definite plans and actions towards improving the same.

Each subproject proposal shall include an operation and maintenance plan by the
LGU and certified as acceptable to the DA-RPCO/PSO/NPCO.

The subprojects issued with clearances from the Additional Financing 2 shall be
revisited and shall comply with the requirements of PRDP Scale Up.

In order to promote transparency, public disclosure and accountability, the NPCO

shall establish and maintain a PRDP website where all subprojects are listed with
geotag status at different stages (proposed, ongoing, completed) with their
locations. Other information to be published are: ROW acquisition, ESMP, name of
contractors, date started, date completed, actual costs, length of roads, work items,
length of bridge, and other pertinent information.

The same website as in the foregoing shall likewise be used for posting the
Invitation to Bid and uploading the bidding documents for subprojects and the list of
PRDP/DA-blacklisted contractors, if any.

A. Contract duration and time extension

The project duration is based on the number of days accrued or as derived based on
the number of equipment to do the work for equipment operated items of works
and from the duration as derived from labor based-equipment supported items of
works. The project duration is the total number of days defined by the critical path

50
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

in the PERT-CPM / PDM or bar chart and S-Curve and adjusted to include the
accumulated Sundays and holidays

1. Extension of contract time shall be granted for rainy/unworkable days

considered unfavorable for the prosecution of the works at the site, based on the
actual conditions obtained at the site.

2. Extension of contract time shall be granted for equivalent period of delay due to
major calamities such as exceptionally destructive typhoons, floods and
earthquakes, and epidemics, and for causes such as non-delivery on time of
materials, working drawings, or written information to be furnished by the
Procuring Entity, non-acquisition of permit to enter private properties or non-
execution of deed of sale or donation within the right-of-way resulting in
complete paralyzation of construction activities, and other meritorious causes as
determined by the Procuring Entity's Representative and approved by the HoPE.
Shortage of construction materials, general labor strikes, and peace and order
problems that disrupt construction operations through no fault of the Contractor
may be considered as additional grounds for extension of contract time provided
they are publicly felt and certified by appropriate government agencies such as
DTI, DOLE, DILG, and DND, among others.

3. Extension of contract time may be granted only when the affected activities fall
within the critical path of the PERT/CPM or PDM

B. Joint Technical Review (JTR)

It should be clear that the conduct of the JTR doesn't free up the RPCOs from the
requirement of conducting due diligence in dealing with the Provincial / Municipal /
City Project Management Implementing Unit (P/M/CPMIU), particularly on acting
on their request, queries and request for technical assistance.

Guidelines on the Conduct of JTR

Composition of the Joint Technical Review Team (JTR Team) from the NPCO, PSO
and RPCO

IBUILD Subproject - IPLAN, IBUILD, GGU, SES Unit, Procurement Unit, Economics
Unit,

IREAP Subprojects - IPLAN, IREAP, IBUILD, GGU, SES Unit, Procurement Unit,
Economics Unit.

Guidelines:
1. Only subproject that had been screened by the Regional Project Coordination
Offices (RPCO) shall be subjected to the Joint Technical Review. By having
screened, it is understood that the technical documents are complete and
have been initially checked by RPCO for appropriateness and correctness.

51
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2. One week (7 working days) before the actual conduct of the Joint Technical
Review, the RPCO shall ensure that electronic copy of the submitted
documents is made available to their NPCO and PSO counterpart.
3. Concerned RPCO personnel are expected to have read through the technical
documents and have prepared initial findings and recommendations prior to
the JTR for discussion with the PSO and NPCO during the JTR.
4. RPCO personnel shall present their initial findings and recommendations
during the JTR, subject to the concurrence and/or additional findings of the
PSO and NPCO.
5. The RPCO should ensure that concerned P/M/CPMIU and FCA
representatives are present during the conduct of the technical review to
expedite the process of amendment and compliance to findings and
recommendations.
6. Only sub projects that have been cleared by the JTR shall be subjected for
presentation to the Regional Project Advisory Board (RPAB).
7. It is understood that RPAB approval does not secure funding allocation from
the Project. Rather, RPAB approved sub projects are qualified for
endorsement to the RPCO, PSO, NPCO and WB for issuance of No Objection
Letter -1 (NOL-1).

C. Subproject Appraisal

To minimize variation orders and second generation issues on social and

environmental safeguards, the conduct of subproject appraisal prior to RPAB
approval shall be conducted. The conduct of NPCO/PSO/RPCO subproject appraisal
should depend on the review thresholds. Subproject appraisal should be conducted
when the feasibility study and technical drawing plans are finalized. The subproject
appraisal to proceed by conducting the following:
1. Farm to Market Roads:
a. Walkthrough of the whole road length to match the final plan (Technical and
ESMP) against the actual site condition. The Stakeholders to confirm critical
sites and location and design for cross-drainages, side drainage, slope
protection structures, dumping sites, potential land use conversions and
diverted traffic and others that will have bearing on the road design;
b. Checking the locations of crossing lanes and railings at school zones and
residential areas
c. Checking the location of road safety signage if located at proper location.
d. Checking the road transition designs as per actual site conditions such as:
✔ road junction/intersection design at every point of road intersections,

✔ widening and concreting of at least one span of the transition approaches

of the road connected to the subproject
✔ smooth transition from PCCP roads connected to the proposed FMR.
Concreting of three (3) spans may be permitted.
✔ construction and widening of the approaches of carabao sledge trails /
farm machineries connected to the subproject for unloading of farm
products

52
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ ramps as access to adjacent houses that will be affected by the FMR if

incorporated at the plans.
✔ road crossing structures for animal and farm machineries or implements
as access to the farm lots
e. Checking of location of lay by areas
f. Checking if covered canal is incorporated at the design along congested
residential areas, schools and others where the shoulder is limited due to
permanent structures.
g. Checking of the drainage structures which includes lined canals, earth ditch,
mitre drains, cross drainages, storm drainages.
h. Checking the design of slope protection if consistent as per actual site
condition. Checking if needed slope protections at residential areas are
incorporated at the design. checking if the design of slope protection is as per
actual site conditions and soil classifications.
i. LGU to stake the boundaries of the road width and formation width to show
to the Project Affected Persons (PAPs) boundaries of the Road Right of Way
(ROW) and the land area of the of the PAPs to be donated/given to the road.
j. Included in the appraisal is the verification of the information whether the
cut section is rock, unclassified and common earth excavation.
k. Critical road sections needing additional structures which were not
considered in the original plan should be assessed and included at the plans.
l. Stakeholders forum to present the final plan and elicit further comments and
finally confirm or introduce adjustments in the technical plan, economic
analysis and ESMP.

2. Bridges:
a.

3. Irrigation System:
a.

4. Potable Water Supply:

a.

5. Value Chain Rural Infrastructure:

a.

The RPCO / PSO / NPCO are enjoined to conduct the subproject appraisal using the
Appraisal Report Form in Annex 45 of the I-BUILD Operations Manual. The
Appraisal Report will form part of the documents to be submitted prior RPAB
clearance of Components and Units.

D. Conduct of RPAB Deliberation and Approval

When all clearances for RPAB deliberation are provided by the review team
(IBUILD, IPLAN, SES, Econ, GGU, MEL, Compliance and Procurement), the RPCO shall

53
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

convince the RPAB members to deliberate and approval of the subproject. The
minimum requirement for the RPAB deliberation should be the subproject briefer,
Detailed Engineering Design (Technical drawing plans and POW), Feasibility Study
and SES documents. Electronic file of the required documents should be given to the
RPAB members one (1) week prior to the scheduled RPAB deliberation. At least one
(1) Hard copy of the documents should be provided to RPAB members during the
actual conduct of the RPAB deliberation.

E. Issuance of No Objection for Subprojects

All issuance of No Objection namely NOL 1, NOL 2, NOL for rebidding and NOL for
variation orders for the PRDP SU subprojects shall be the responsibility of the
Procurement Unit.
Similarly, requests for No Objection from the PSOs / RPCOs shall emanate from their
respective Procurement Unit. These requests shall be complemented with the
clearances from their respective components and units. Those requests without
these clearances shall not be processed.

Upon the approval of the subproject by the RPAB, the RPCO shall endorse the RPAB
resolution to NPCO through the PSO for issuance of NOL 1. Issuance of NOL 1 shall
be given by the Project depending on the threshold.

NOL for Rebidding

✔ At the repackaging of subprojects, structures needed by the subproject that
are not included in the original plan may be incorporated in the updated
repackaged documents.

NOL for Variation Order

✔ Signatories for the clearance for NOL of variation order shall be IBUILD, SES,
GGU and Econ.
✔ For cost shared variation orders, the instruction from the project
RPCO/PSO/NPCO/WB should be attached.
✔ Failure to include the project instruction / report at the VO documents, the
NPCO will process the VO but the cost shall be charged to the LGU.
✔ Revised Program of Works (POW) summary specifying the cost sharing
arrangement whether cost shared or fully charged to the LGU.

F. Pre-Construction Conference

Guidelines in the conduct of the Pre-Construction Conference:

✔ Pre-Construction Conference is being conducted before the start of the actual
construction.
✔ Guidelines of IBUILD, SES, GGU on the implementation of the subproject are
being discussed.

54
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ The contractor will submit its construction methodology and present it

during the pre-construction conference.
✔ The construction methodology of the contractor is also to be discussed by the
contractor.
✔ The project to review the submitted construction methodology of
contractors. Initial discussions on proposed methodology should be made
and agreed upon during the conduct of pre-construction conferences. This
process is to ensure that proposed construction methodology complies with
the standard engineering practices of construction and technical
specifications.
✔ The conduct of the pre-construction conference in every sub-project should
be two (2) days. Highlight of the discussions should the proposed detailed
construction methodology of the contractor. The PSO and or the RPCO
representative to provide inputs on the acceptance level of each item of
works based on the technical specifications as attached in the bidding
documents.

G. Change in pledge equipment

✔ Change of pledge equipment shall be approved by the implementing LGU

H. Change in Technical Personnel

✔ Change of pledge technical personnel shall be approved by the implementing

LGU

I. Full time Assignment of the Required Construction Supervision Team

✔ For a good project implementation, good quality, good workmanship, and on
time implementation the required full time Construction Supervision Team
from the LGU as the implementing unit.
✔ In the issuance of NOL 1, the letter will include a condition that the LGU must
commence hiring of full time members of the Construction Supervision Team
(A Resident Engineer for LGU with more than one SP, Site Engineer per SP,
Materials Engineer per LGU, Document Officer per SP) if no qualified organic
staff could be detailed on a full time basis and submit the curriculum vitae of
each member of the construction supervision team to NPCO I-BUILD, prior to
the issuance of NOL 2.
✔ On the other hand, the NOL 2 issuance will include a condition that the LGU
must ensure that the Construction Supervision Team is engage upon issuance
of NTP.

J. Roles and Functions of the LGUs Technical Supervision Team

Qualifications of Staff for the LGU Supervision Team

55
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

1. PPMIU Head – the Governor’s Alternate in managing PRDP

implementation with at least 8 years working experience.
2. Engineer for the Contract (PPMIU Engineer/Project Engineer) – a
licensed civil engineer and has the signing/approval authority with at
least 5 years working experience.
3. Engineer’s Representative (Resident Engineer) – licensed civil engineer
and should know how to read and interpret drawings, plans with at least
3 years working experience.
4. Materials Engineer – DPWH accredited Materials Engineer with at least 2
years working experience.
5. Site Engineer/Inspector – should know how to read and understand
plans and preferably with working experience.
6. Engineering Aide – should know how to identify Project and contract
documents and preferably with working experience.

Roles and Functions

P/M/C PMIU Head

1. Checks and recommends payments endorsed to the Local Chief Executive.
2. Checks and recommends Variation Orders for approval by the Local Chief
Executive.
3. Checks and recommends Time Extension for approval by the Local Chief
Executive.
4. Reviews, checks and provides notations, approvals of technical reports
and regular monitoring reports relative to the contract as called for in the
different implementation forms.

P/M/C PMIU Engineer/Project Engineer/Provincial/Municipal/City

Engineer
1. Checks plans and program of works relative to the contract.
2. Checks payments relative to the contract
3. Checks Variation Orders (VO) relative to the contract
4. Checks Time Extension relative to the contract
5. Reviews, checks and provides notations, approvals of technical reports
and regular monitoring reports relative to the contract as called for in the
different implementation forms.
6. All other functions delegated to the Resident Engineer

The Resident Engineer (RE)

1. Familiarize herself/himself with the contract documents, drawings and

specifications pertinent to the Contract to be supervised
2. Familiarize herself/himself with the content of the delegation issued by
the Engineer.

56
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3. Always address written communication to the Engineer, with copies as

deemed necessary.
4. Control the day-to-day supervision of the Work and, other than in
exceptional circumstances, be the route of all formal communications
regarding the Contract and the Contractor’s activities.
5. Liaise with the Contractor’s representative. All communication with the
Contractor must be through the Project Engineer.
6. Advise the Contractor on the correct routes for communication to the
Employer, i.e., all communication should be addressed to the Engineer
but through the Resident Engineer.
7. When writing to the contractor, the RE should sign as “Resident
Engineer”. In his absence, the Engineer will designate a replacement as
and he/she should sign as such.
8. Administer the Project Supervision staff to:
a. Deal with staff problems, discipline and time keeping; certify claims
for expenses, overtime, weekend working, leave, etc.
b. Ensure that the staff understands their obligations regarding health
and safety at work.
c. Arrange staff rotation to cover working outside normal hours as
needed.
d. Make necessary arrangements to see that all the Contractor’s
activities during the week are fully covered by the supervision at
the correct level.
9. Promote a team spirit within the Site Organization including the
Contractor’s staff with:
• the goal of completion of the work to the required quality, time
and cost
10. Exchange lists of staff with the Contractor including designation of the
duties of each and quickly informs each other of the changes.
• This will help to avoid confusion on site, e.g. when unknown or
new personnel issue instructions to the Contractor’s staff. Regular
and authorized communication is important.
11. Monitor the Contractor’s liaison with the Local Authorities who should be
consulted well in advance of any intended traffic diversions or
disturbances.
12. Arrange meetings with interested parties
• e.g. public utility authorities and the public works department
concerning traffic and service diversions, programming and
agreement on details of traffic management plans and temporary road
signs
13. Advises staff about the way instructions to the Contractor should be
issued, who is authorized to sign, and how to deal with confirmation of
verbal instructions to the Contractor.
14. Maintain a register of all contract drawings issued, including
amendments identification of each amendment, so that at later date it will
be possible to establish the operative version of each drawing at any
particular time. Drawings will, however, be issued by the Engineer.
15. Ensure that a full set of all Drawings is maintained at site.
16. Monitor safety procedures to ensure that:

57
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

a. All site personnel are familiar with safety procedures.

b. Safe-working procedures are adopted by the Contractor, all road
signs are to international standards and that all plant and
temporary works comply with the appropriate regulations.
c. Site personnel are familiar with action required in emergencies –
e.g. service vehicle, Doctors, “First Aid”, etc. and the need for
Contractor’s reports of all accidents.
17. Monitor safety procedures to ensure that:
a. All First-Aid boxes are fully stocked and available at suitable
locations.
b. That proper precautions are taken at all times. Precautions
include:
1) Wearing of protective clothing and safety helmets.
2) Using safety equipment at appropriate times.
3) Displaying warning signs.
4) Fencing off danger areas.
18. Check on the proper use and protection of the site.
19. Ensure proper quality control procedures are followed in sampling and
testing materials.
20. Organize and supervise his/her team of Materials Engineer and Site
Inspector to cover all aspects of supervision of their respective work
activities.
21. Instruct his/her staff on the methods to be adopted for all aspects of
supervision and record keeping. In the early stages of construction, PEs
should read their staff’s diaries at least once a week and ensure that
everyone is recording all potentially useful information without undue
repetition
22. Arrange for the design of minor modifications and corrections to all
design details where needed.
23. Only modifications and corrections, which are necessary for the
satisfactory functioning of the works, should be covered.
• Note that the Contractor will request additional payment for
variations which are not necessary for the satisfactory functioning of
the Works and to restrict such additional cost, RE should take a very
circumspect view of proposed changes;
24. Advise the Employer on progress and difficulties encountered during
construction
25. Attend any site management meetings.
26. Issue Site Instructions to the Contractor when necessary.
27. Approve materials upon advice from the Materials Engineer.
28. Check the Contractor’s detailed work program for errors and
discrepancies.
29. Countersign Site Inspector’s daily reports. Ensure the Site Inspector is
informed regarding details of the works program.
30. Check and approve any drawings and details from the Contractor
regarding temporary works, details of traffic diversions, health and safety
at work, etc.

58
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

31. Remind the Contractor of his legal requirements with respect to

responsibilities of third parties, traffic diversions, health and safety at
work, etc.
32. Check and verify the Contractor’s monthly progress billings, valuation of
variations and assist in checking his final Statement.
33. Keep the Daily Accomplishment Report.

Materials Engineer (ME)

1. Maintain liaison with the PE, the Resident Engineer (RE) and the
Contractor’s representatives as to:
✔ the construction program

✔ the approved method of materials distribution, placing, compaction,

protection and
✔ general compliance with the tests described in the Specifications.
2. Check inventory and calibration of the site laboratory against the
equipment required by the Contractor to carry out all the tests required
to meet Specification compliance.
3. Instruct and supervise the Contractor’s laboratory staff.
4. Visit the sources of materials supply and manufacturing plants proposed
by the contractor to check that they can provide materials of the required
quality, quantity and rates of delivery throughout the estimated period of
construction.
5. Oversee initial and subsequent periodic tests on all aggregates, cement,
reinforced steel, bitumen, base materials etc., to confirm that they comply
with the Specifications.
6. Immediately notify the Contractor, the Engineer and the Engineer’s
Representative of any materials which have failed or are considered
likely to fail to comply with the Specifications. A decision will then be
made by the Engineer as to whether the suspect material is to be
replaced.
7. Select and oversee tests on asphalt and P.C. concrete mixes, which the
Contractor proposes to use including Job Mix Formulae. Subject to these
being satisfactory, submit details to the Engineer’s Representative with
recommendations for approval.
8. Carry out initial and periodic checks of all concrete batching, mixing and
transporting equipment including calibration.
9. Select and mark, in accordance with the Specification, concrete test
specimens and subsequently witness all site tests carried out on them.
10. Compile and maintain comprehensive records of all concrete placed.
11. Advise the Resident Engineer on approval of admixtures, curing agents
etc.
12. Establish, where required by the Specifications, the in-situ properties of
ground beneath existing pavement layers.
13. Establish in laboratory trials the properties of soil being used in road
base construction, backfilling, etc. (in conjunction with the Contractor and
the Site Engineer)

59
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

14. Ensure the proper execution by Contractor’s technicians of in-situ density

testing of soils and pavement materials.
15. Supervise whatever other in-situ testing of soils is required by the
Specifications.
16. Supervise the Contractor’s testing trials to establish the design of asphalt
and concrete mixes and submit recommendations to the Engineer.
17. Attend to the initial and subsequent periodic checks of all mixing and
transporting equipment for asphalt materials.

Site Engineer (SE)/Inspector (SI)

1. Ensure he /she understands the Drawings and Specifications.
2. Ensure that the Contractor’s work is properly supervised at all times and
that it is carried out in accordance with the Drawings and Specification.
3. Maintain records of construction activity.
4. Maintain shop drawings and records of the Works.
5. Assist in measurement of the Works and to keep all necessary records.
6. Contact the PE or RE when faulty work occurs or where a variation is
required.
7. Ensure that the records for plant and labour are kept accurately and that
any removal of plant from the site by the Contractor is reported
immediately to the PE / RE.
8. When hot bituminous mixes are being produced and laid
✔ check temperature and thickness at site, also temperature and
batch weight calibration at the plant.
9. Inspect and approve re-prepared road formations and subsequent
pavement construction.
✔ Attention is drawn to the requirements of Specifications Clause
307.3.1 with regard to weather limitations when laying hot mix
bitumen materials.
10. For Days Work, agree with the Contractor records of plant, labour and
materials involved. (These should be signed and endorsed “for record
purpose only”.) Keep daily site diaries and complete daily reports.
11. Ensure the inspections requested by the Contractor are carried out
promptly and that the prescribed forms are used.
✔ It should be noted that the Contractor is required under the
contract to give specific prior notice of inspections required.
12. When working outside normal office hours
✔ ensure communication with RE to report any exceptional events
such as a bad accident or construction breakdown.
13. Liaise with the RE when checking work.
14. Liaise with the ME and the laboratory technicians on the results of
materials testing
15. Give special attention to matters concerning public safety e.g. mud on
roads, road signs and lighting of works.
16. Give special attention to matters concerning the protection of the
environment and adjacent land and property.

60
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Engineering Aide
1. Ensure he /she can identify field documents like drawings and
specifications, site construction and monitoring forms.
2. Ensure that all documents are properly filed.
3. Maintain records of construction activity.
4. Maintain shop drawings and records of the Works.
5. Maintains cleanliness and orderliness in the field office.
6. Receive, log, route and file internal and external correspondences.
7. Do administrative work as may be required.

K. Conduct of Regular Contract Management Meeting.

In order to further strengthen the scheme to include the contractors in the feed
backing mechanism, the RPCOs to institutionalize the conduct of regular contract
management meetings amongst the RPCO, PPMIU and the Contractors. The presence
of the Regional Executive Director (RED), the Local Chief Executive (LCEs) and the
Manager/Owner of the Construction Company is key to the said Regular Contract
Management Meetings in resolving various issues relative to sub-project
implementation.

L. As-stake Survey and As-stake Plan

As Stake Survey or the site layout survey, is the process of verifying the actual field
condition and staking out the alignment, location of the proposed and existing
facilities and structures vis-a-vis the approved detailed engineering plan prior to the
construction activity.

General guidelines in the conduct of the As-stake Survey and preparation of the as-
stake plan:

1. The as-stake survey should be conducted after issuance of the Notice to

Proceed and a day after the conduct of the pre-construction conference. The
procuring entity through it survey team should supervise the contractor in
the conduct of the as-stake survey.

2. The conduct of as-take survey should take a limit of 15 calendar days to be

completed by the contractor and LGU Resident Engineer /survey team and
subsequent approval of change in quantities if any and as stake plan should
be within 30 calendar days.

3. The timeline from the start of the as-stake survey to the approval of the as-
stake plan shall be 45 calendar days.

4. When there is no inconsistency at the as-stake survey from the original plan,
the as-stake plan shall not be prepared by the contractor and proceed with
the construction using the original plan. The original plan shall be marked as
the construction plan.

61
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

5. If there are minimal inconsistency at the as-stake survey from the original
plan and based from the contractor’s assessment that he can implement the
original plan, the contractor may not prepare the as stake plan and use the
original plan during the implementation.

6. If there are only sections with inconsistency at the as-stake survey from the
original plan, the contractor should proceed on the works at sections with no
inconsistency and prepare the as stake plan at sections with inconsistency.

7. Any increase in cost due to the result of the as stake survey shall be
shouldered by the LGU.

8. Variation orders due to the result of the as-stake survey shall be approved by
the LGU and concurred by PRDP depending on the threshold.

9. In case where the As-stake survey and as stake plan is not finished and
approved at the given time line (45 days), by default the contractor shall
implement the approved original plan.

Specific guidelines

1. Farm to Market Roads:

a. Locating the exact coordinates of station 0+000 through the reference

points indicated in the plan.

b. Set the existing elevation of station 0+000 as assumed in the approved

plan.

c. Check the cross-section plan of station 0+000 and superimpose in the

original cross section plan any observed difference.

d. After successfully locating station 0+000 then re-run the surveys to get
the actual elevations and cross-sections of the succeeding stations and
superimpose it in the original plan.

e. The as-stake survey activity should also check if indeed the location of
bench marks, structures, landmarks and other details are correct.

f. Included in the as-stake cross-section plan is the information whether the

cut section is rock, unclassified and common earth excavation.

g. The horizontal and vertical survey data shall be superimposed or plotted

against the original plan, dimensions and end areas taken as an input in
the volume computation. As a result of the volume/quantity computation,
any changes in quantity as a result of the as-stake survey shall be
approved through a variation order.

62
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

M. Variation Orders

1. Additional costs arising from variation or change orders above the contract
project cost shall be borne by the proponent LGUs.
2. Any variation order that emanates from the conduct of the as-stake survey
with exceptions as a result of natural calamities and evolving government
policies shall be borne by the proponent LGUs.
3. Variation cost may be cost shared if the variation order is initiated by the
Project due to the implementation of emerging government policies and
design adjustments due to current site conditions but will be dependent on
the availability of funds from the project.
4. Any additional cost as a result of the bidding will also be cost shared.
5. The approval of variation orders rests at the procuring entity but with prior
no objection from the Project.
6. The approval of the variation order is within the contracting Parties and the
NOL procedure is a review tool or control mechanism binding between the
LGU and the Project.
7. The No Objection Letter issued by the Project states that the Project finds the
variation order documents in order and interposes no objection to the
approved or approval of the Variation order or in most cases the Project
issues its findings through memorandum stating the findings and
recommendations if there are questionable items/entries not fully
supported, justified or simply not needed and the LGU now do the
adjustment and process again the request′ approval and conformed of the
contracting parties.
8. The processing of the variation orders should only by 15 days at its approval
and 15 days for the NOL of the project.
9. Any change in scope or cost, it will be subject for concurrence or issuance of
no objection letter by the RPCO/PSO/NPCO based on the review threshold of
each office in the issuance of No Objection Letter (NOL).
10. Concurrence or issuance of no objection letter by the RPCO/PSO/NPCO/WB
will be based on the following threshold or cases:

Case 1: Variation Orders with no increase in cost shall be reviewed and

issued no objection letter (NOL) at the RPCO level;

Case 2: Variation Orders with increase in cost of 10% and below and fully
shouldered by the LGU shall be jointly reviewed by the LGU, RPCO and PSO.
PSO to provide technical inputs in the review process. The no objection shall
be issued by the RPCO after a favorable joint review clearance had been
issued by the review team.

Case 3: Variation Orders with increase in cost more than 10% but less than
15% and fully shouldered by the LGU shall be jointly reviewed by the LGU,
RPCO, PSO and NPCO. NPCO to provide technical inputs in the review
process. Part of the review process is the economic viability considering the
additional cost involve. The no objection letter shall be issued by the PSO
after a favorable joint review clearance has been issued by the review team.

63
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Case 4: For variation orders costing more than 15%, proposal would be
deferred until completion and turn-over of the sub-project if the works are
considered separable from the original contract. The LGU could then enter
into a separate contract with the contractor to implement the proposed VO.
The VO shall be jointly reviewed by the LGU, RPCO, PSO and NPCO. The No
Objection Letter shall be issued by NPCO. Part of the review process is the
economic viability considering the additional cost involve.

Case 5: For variation orders costing more than 15%, but the works are
considered not separable from the original contract, The VO shall be jointly
reviewed by the LGU, RPCO, PSO and NPCO. The No Objection Letter shall be
issued by NPCO. Part of the review process is the economic viability
considering the additional cost involve.

Case 6: For proposed VO that would involve the increase or reduction of LP

funds, The VO shall be jointly reviewed by the LGU, RPCO, PSO and NPCO.
The No Objection Letter shall be issued by NPCO.

Case 7: Variation Orders with increase in cost and cost shared shall follow
the regular review process at the RPCO, PSO, NPCO and WB. The NPCO will
issue the no objection letter (NOL) for variation orders costing 10% and
below and the World Bank to issue the NOL for variation orders more than
10%.

For any cost over-run from the estimated project cost (EPC) subject for cost sharing,
it will be cost shared following the cost sharing arrangement stipulated in the IMA.
Addendum to the RPAB approval, IMA and issuance of additional CAF to reflect the
cost adjustment is necessary.

Contractors will be required to get a comprehensive Contractor’s All-Risk

Insurance(CARI) to take care of unforeseen costs brought about by any force
majeure.

N. Materials Testing
✔ Allowing the materials testing and quality control section of the PLGU to
conduct materials and quality tests.
✔ Allowing laboratory building and equipment to be included in one of the
proposed subproject of PLGU. The said building and equipment shall be
turned over to the province for use of in subsequent subprojects.

Adoption of DPWH DO No. 5 series of 2017 to be used for PRDP IBUILD subprojects.
✔ Item A.1.1(4) Construction of Field Office for the Engineer

✔ Item A.1.1 (12) Provision of Furniture/Fixtures, Equipment and

Appliances for Laboratory Building for the Engineer;
✔ Item A.1.1 (14) Provision of Laboratory Testing Equipment, Apparatus
and Publication for the Engineer;

64
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Item A. 1.1 (17) Operation and Maintenance of Laboratory Building for

the Engineer.
✔ It remains the responsibility of the Contractor to find ways to comply with
the minimum materials testing requirement of the Project as costs associated
with the required quality tests are already incorporated in the sub-project's
contract costs.

Testing of materials to be conducted by the PLGU

✔ Testing laboratory facility and materials engineer should be accredited by
DPWH
✔ RPCO and PSO RIEs to witness the conduct of the first test, subsequent
witness of either RPCO or PSO RIE of test sufficiency
✔ Test results to be signed by RPCO and PSO RIEs, Head of PEO material
division/section head, materials engineer of the LGU assigned to the
subproject and the contractor.

O. Field Density Test

The inspection and testing procedures as called for in the Infrastructure Quality
Monitoring and Durability System (IQMDS) of the Project prescribes that whoever
conducts the test must prepare and attest to the veracity of the test report. This
Operations Manual stipulates the conduct of all tests by a third party. The conduct of
Field Density Test shall be carried under the following options:
1. Option 1 - The default option is to follow the intent of this Operations Manual
that all tests will be conducted by DPWH.
2. Option 2 – The conduct of FDT to be conducted by a DPWH accredited
laboratories in regions.
3. Option 3 – The 3rd option is the conduct of FDT from colleges and
universities with testing laboratories with competent Materials Engineer and
accredited by DPWH. The selection of colleges and universities to conduct
the FDT must be supported with proof that indeed the laboratory technicians
have conducted the same test within the last three years. Records of FDT
reports taken from similar subprojects filed by the laboratory administrator
will suffice as proof of capacity to engage the said college or university.
4. Option 4 - The 4th option is the conduct of the FDT by the accredited
Materials Engineer and laboratory of the Provincial or City LGU.

Field tests shall be in accordance with ASTM D1556-07 "Standard Test Method for
Density and Unit Weight of Soil in Place by Sand-Cone Method".

The contracting parties are the signatory witnesses in the conduct of the FDT in all
options. The first FDT should be witnessed by RPCO.

The test reports from the four options equally serve the same purpose as basis for
work acceptance and clearance for billing.

65
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

P. Inspection and Billing

The lists below include what are the items/activities to be inspected and what are
the pre-conditions of its approval.

a. Clearing and Grubbing - any request for inspection of its completion and or
billing must include the establishment of Technical Bench Marks (TBM) and
staking (''blue topping'') every full station and station markings of structures.
b. Mobilization and Demobilization - any request for inspection of its
completion and or billing must include…
c. Facilities for the Engineers - any request for inspection of its completion
and or billing should include the establishment of a filing system such as
maintaining a well secured filing cabinet
d. Monthly submission of progress reports - As per GCC sub-clause 31.3, the
Contractor to submit updated program to the Procuring Entity's
Representative at interval of 30 days. late submission of an updated Program
of Work {bar chart/5-curve), deductions will be made at 1% of the progress
billing. The general conditions of the contract sub-clause 32 calls also for the
conduct of management meeting or conference and It is recommended at
regular interval (fix day/s monthly) and the minutes of the meeting will form
part of the monthly submission of progress reports.
e. Shop Drawing Preparation - any shop drawings prepared by the contractor
shall have prior approval of the procuring entity and marked "Good for
Construction" prior its use.
f. In all Requests for Inspection - the contractor must attach the measurement
sheet or volume computation sheet of the requested work to be inspected as
basis for approval.
g. Conduct of actual measurement verification for billing - the LGU Local
Inspectorate Team must be assisted by the Measurement Team formed for
the Project before it is certified for payment by the Procuring Entity's
representative /Project Engineer in pursuance of the GCC sub clause 41.1.

It is hoped that the issuance of these guidelines will provide guidance in

determining some pre-conditions in the issuance of approval by the
Procuring Entity of Request for Inspection. These are additional details of
what is in the inspection and test plan in the "Hold Points" column.

Q. Corrective Action Request

The IQMDS provides the issuance of three Non Compliance Reports (NCR) for
similar quality issues shall trigger the Request for Corrective Action through the
Corrective Action Request form. The issuance of three NCRs or Site Instructions by
the LGU / RPCO / PSO / NPCO to implement the enforcement of the required
rectification works by the contractor when not acted upon will also be a reminder to
the LGU that non-compliance with the quality requirement of the subproject may be
grounds for the cancellation of PRDP SU funding support. The Corrective Action
Request shall be issued by the Project to the LGU after three NCRs have not been
closed out, the P/M/CPMIU shall endeavor to implement the proposed corrective
action and if not properly closed out after the dead line as agreed on the Corrective

66
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Action Request, the PSO through the endorsement of the RPCO shall officially
communicate to the P/M/CPMIU the withdrawal of funding support for the
subproject.

R. Joint Inspectorate Team

Members of the Joint Inspectorate Team (JIT) are IBUILD, SES, GGU and Finance

The JIT will conduct the inspection and review of contractor’s billing.

Joint Site Inspection should be conducted not later than 3 days upon the receipt of
the contractor’s request for validation of the Statement of Work Accomplished.

The process of reviewing the documents and subsequent payment should not
exceed 14 calendar days upon receipt of request for billing.

The P/M/CPMIU should conduct the pre-final inspection once the physical
accomplishment of the subproject reaches 95% and should not wait for the
contractor to request for the inspection. The P/M/CPMIU to inform the PSO/RPCO
on the date of inspection so that one-time joint pre-final inspection will be
conducted.

Henceforth, the JIT are enjoined to conduct pre-final Inspection of all sub-projects
reaching an accomplishment of 95% in physical progress which is considered as
substantially completed. The punch list form shall be filled-out with the following
details:
a. list of all contracted items of works;
b. quantification of the remaining works as well as identification of the
deficiencies per item of works to be noted in the punch list as a result of
actual measurements and inspections done;
c. inclusion of the contractor's approved disposition on how to complete the
remaining works and correct the deficiencies per items of work;
d. inclusion of the timeframe of each activity so that the final inspection date of
the sub-project shall be set.

The deadline to be set for the final inspection and will be the benchmark in dealing
with penalties on liquidated damages and other alternative measures such as when
the LGU shall engage a third party for the uncorrected defects to be charged to the
performance bond and or remaining money / retention fund due to the contractor.

The same process should be followed in the conduct of final inspection once the
contractor has fully complied with the pre-final inspection report (punch list). The
contractor should be given a fixed number of calendar days to make the necessary
rectification works indicated in the punch list.

Duties and responsibilities of the Joint Inspectorate Team

67
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Listed below are the duties and responsibilities of the JIT in addition to their current
functions.
IBUILD:
a. Closely monitor and supervise subprojects implemented on their respected
areas of assignment.
b. Inspect and validate the correctness of the items being claimed for billing.
c. Validate the Statement of Work Accomplished.
d. Review of copied of the materials and field test results as basis of acceptance
of items of works that are subject for billing.
e. Provide technical support to the LGU and contractors in the review and
processing of billing documents.
f. Monthly review of test results submitted by the contractors and LGUs.
g. Ensure that all SPs have proper documentation.

SES:
a. Oversee and ensure that the subprojects will not adversely affect the
environment and the community with in the project area.
b. Ensure that all SES concerns are addressed in coordination with the LGUs.

GGU:
a. Check, review and ensure that the billed items in the accomplishment reports
have geotag photos.
b. Provide Applied Geotagging Technology (AGT) certificate ones billed items
conforms with the accomplishment report.

Finance:
a. Review and ensure that all financial requirements for billing are complete.
b. Provide technical assistance to the LGUs and contractors in the processing of
billing documents when necessary.

To strengthen the supervision and monitoring of all PRDP SU subprojects and

ensure the compliance to social and environmental safeguards, the LGU shall fully
engage the LGU-SES focal persons in the conduct of supervision and monitoring of
all PRDP SU subprojects.
Furthermore, the LGU-SES focal should be added as member of the Joint
Inspectorate Team and should be one of the signatories to the SWA.

S. Proceeds from Liquidated Damages.

The LGU is encourage to utilize the proceeds of the liquidated damages to fund any
improvement of the subproject to enhance its use/function and Road safety like
provisions of road signs, lane markings, railings, pedestrian lanes/walkway, street
lighting, access ramps and improvement of roadside drainage and slope protection.
The LGU to determine the amount of liquidated damages in accordance with the
bidding documents and the Sanggunian may appropriate this funds to effectively
implement the said enhancement of the subproject.

T. Suspension of Subproject due to Peace and Order

68
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

U. Cancellation of subprojects

Listed are the guidance on the proper process of cancelling sub projects under the
Philippine Rural Development Project Scale Up(PRDP-SU).
1. The Project Support Office (PSO) should prepare the case history, including
the determined grounds for the decision to cancel the sub project.
2. The PSO should write to the concerned Local Government Unit (LGU) that the
identified sub project will be cancelled if the determined grounds for
cancellation will not be appropriately acted upon by the LGU. The LGU is
given seven (7) working days from the receipt of the letter to respond to the
PSO on their concurrence to the cancellation.
3. Upon concurrence or non-response from the LGU, the concerned Regional
Project Coordination Office (RPCO) shall convene the Regional Project
Advisory Board (RPAB) to present the sub project for cancellation for their
approval. (Section 8.03 of the Implementation Management Agreement
which states that "Upon recommendation of the NPCO or PSO, the concerned
Regional Project Advisory Board shall cancel the IMA……. ")
4. When the RPAB had issued their resolution to cancel the sub project, the
RPCO shall immediately transmit the resolution to the Project Support Office
for cancellation of the sub project.
5. The PSO, upon receipt of the RPAB resolution shall cancel/de-obligate the
funds allocated to the sub project.

V. Deletion of cancelled proposed Subprojects at the MIS

✔ For subprojects not yet approved by the RPAB but had already been
reviewed, the LGU to write a letter to the RPCO cancelling the proposed
subproject indicating the reasons for cancellation.
✔ For subprojects approved by RPAB, the LGU to write a letter to RPCO
cancelling the proposed subproject indicating the reasons for cancellation.
The RPCO to inform the RPAB of the intention of the LGU to cancel the
proposed subproject.
✔ Proposed subprojects that were cancelled will then be deleted in the MIS

2.12 Capability-Building of Implementers

An effective infrastructure development project entails more than just building

physical assets. To achieve longer-term benefits, it must build the capacity of the
beneficiaries to sustain the gains derived from the infrastructure investments.

The main players in the implementation of rural infrastructure subprojects are the
Provincial/Municipal/City Engineering Offices (P/M/CEOs),
Provincial/Municipal/City Planning and Development Offices (P/M/CPDOs),
Municipal/City Agricultural and Biosystems Engineering Offices (M/CABEOs)

69
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

created by Section 29 of RA No. 10601, DA-DBM-CSC-DILG Joint Memorandum

Circular No. 2, series of 2020 and now mandatory positions pursuant to RA No.
10915 and CSC MC No. 12, series of 2022, the DA-RFO Regional Agricultural
Engineering Division (RAED), (and their counterparts at the DA-RFU Engineering
Offices) and other stakeholders. The delineation of functions are shown below.
Figure 2-10 Duties and Functions of the Municipal/City Engineering Office
OFFICE Duties and Functions

1. Municipal/City Pursuant to Section 477 of RA 7160 of the Local

Engineering Office Government Code, the Municipal/City
Engineering Office shall:

(1) Initiate, review and recommend changes in

policies and objectives, plans and
programs, techniques, procedures and
practices in infrastructure development
and public works in general of the local
government unit concerned;

(2) Advise the governor or mayor, as the case

may be, on infrastructure, public works,
and other engineering matters;

(3) Administer, coordinate, supervise, and

control the construction, maintenance,
improvement, and repair of roads
(provincial, city and municipal roads),
bridges, and other engineering and public
works projects of the local government
unit concerned;

(4) Provide engineering services to the local

government unit concerned, including
investigation and survey, engineering
designs, feasibility studies, and project
management;

(5) In the case of the provincial engineer,

exercise technical supervision over all
engineering offices of component cities
and municipalities XXX

70
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Figure 2-11 Duties and Functions of the Municipal/City Planning and Development
Office
OFFICE Duties and Functions

2. Municipal/City Planning Pursuant to Section 476 of RA 7160 or the Local

and Development Office Government Code, the Municipal/City Planning and
Development Coordinator shall take charge of the
planning and development office and shall:
(1) Formulate integrated economic, social,
physical, and other development plans and
policies for consideration of the local
government development council;
(2) Conduct continuing studies, researches, and
training programs necessary to evolve plans
and programs for implementation studies,
researches, and training programs necessary
to evolve plans and programs for
implementation;
(3) Integrate and coordinate all sectoral plans and
studies undertaken by the different functional
groups or agencies;
(4) Monitor and evaluate the implementation of
the different development programs, projects,
and activities in the local government unit
concerned in accordance with the approved
development plan;
(5) Prepare comprehensive plans and other
development planning documents for the
consideration of the local development
council;
(6) Analyze the income and expenditure
patterns, and formulate and recommend fiscal
plans and policies for consideration of the
Finance committee of the local government
unit concerned;
(7) Promote people participation in development
planning within the local government unit
concerned;

71
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

(8) Exercise supervision and control over the

secretariat of the local development council;
XXX

Figure 2-12 Duties and Functions of the Municipal/City Agricultural and Biosystems
Engineering Office
OFFICE Duties and Functions
3. Municipal/City
Agricultural and Pursuant to Sec. 29, RA No. 10601 and DA-DBM-CSC-
Biosystems Engineering DILG JMC No. 2, series of 2020 in relation to RA No.
Office 10915, the Municipal/City Agricultural and Biosystems
Engineering Office shall:

1) Provide agricultural engineering services which

include engineering survey, preparation and
evaluation of plans, designs, technical
specifications, feasibility studies and cost
estimates/programs of work, and administer,
supervise and coordinate the construction,
operation, maintenance, improvement and
management of irrigation, small water
impounding, soil conservation and management,
farm machinery, slaughterhouses, poultry
dressing plants, postharvest facilities, auction
markets, farm-to-market roads and other
agricultural and fisheries infrastructure projects of
the LGUs;

2) Undertake the registration of agri-fishery

machinery and facilities, enforcement of the
PAES and other agricultural and fishery
engineering regulatory activities in coordination
and collaboration with the concerned national
government agencies;

3) Coordinate with the concerned national

government agencies with regard to the
implementation of national government programs
and projects on irrigation, farm mechanization,
postharvest facilities, farm-to-market roads and
agricultural and fisheries infrastructure;

4) Be in the frontline of the delivery of basic

agricultural engineering services;

5) Provide training and extension activities to

farmers and fisher folk particularly in the
installation, operation and maintenance of their
irrigation, postharvest facilities, agricultural and
fishery machinery projects in coordination with

72
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

the agriculture and fisheries extension workers;

6) Undertake and/or coordinate the pilot testing and

commercialization of matured agricultural and
fisheries engineering technologies; and XXX

2.12.1 Technical Capability Building Activities

The following capability building activities or trainings (Table 2- 13) emerged

during the PRDP Scale Up Feasibility Study preparation stage as appropriate
intervention to ensure that the implementers are able to deliver the quality output
envisioned in PRDP Scale Up.

The capabilities of the partner LGUs (and the beneficiary stakeholders to some
extent) need to be developed in order for the subprojects to be completed according
to plan in terms of quality, time and budget, and finally sustainable.

Table 2-13 Technical Capability Building Activities

Approaches in Improving Effectiveness and Sustainability of Infrastructure
Investments

A Preparation Stage:

Training on Computer/Software Aided Design Analysis: STAAD, Civil 3D,

EPANET, or equivalent

Computer/Software Aided Drawing: Auto Cad, Revit, Sketch up

DED and POW preparation trainings

Joint Technical Reviews

B Implementation Stage:

Project Supervision and Management Trainings

Contract Management and Supervision Skills Training

COSH

Citizens Monitoring Team (CMT) Capacitation

Materials Testing and Quality Control Training

Construction Methods

C Post Implementation Stage:

Subproject Operations and Maintenance Training

OMAS Audit

73
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

D Regular Coordination Meetings and Conference:

IBUILD Coordination

PSO-RPCO IBUILD Coordination

RPCO Coordination

RIE Summit

Technical Conference for continuing professional development

E Mainstreaming Activities

IBUILD Operations Manual:

Feasibility Study Preparation, SP Validation, and Prioritization

DED/POW Preparation, SP Appraisal and Review

Contract Management, Citizen monitoring

Infrastructure Quality and Durability Monitoring System

Materials Testing and Quality Control

Operation & Maintenance Audit System and O&M

Climate Proofed Design of Agriculture Vertical Structures and Road Safety

Design

Geo-tagging, FMR Network Plan Preparation, Data Encoding and Use of IROAD /
ABEMIS /GEOAGRI

2.12.2 Support Facilities

For PRDP Scale Up – NPCO – PSO – RPCO, PRDP Scale Up shall continue to use the
support facilities provided at the original PRDP such as service vehicle, computers,
printers, geotagging device and others.
Service vehicles at that are provided to NPCO/PSO/RPCO during the original PRDP
shall be for the exclusive use of the project.
NPCO/PSO/RPCO shall check the conditions of the service vehicles and equipment,
provide evaluation on the additional units to be provided for funding under PRDP
Scale Up for the proper and on time implementation of IBUILD subprojects.

2.13 General Financial Management Arrangements

The financial management of the I-BUILD component is the main responsibility of

the implementers which are the P/M/C LGUs. The bidding and fund management
are lodged to the LGUs. However, fiduciary control will be the responsibility of the
RPCO, PSO and NPCO aside from the regular World Bank missions that review the
physical and financial performance of the Project.

74
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2.13.1.1 Requirements for the Release of Funds to Local Government Units

1. Approved, signed and notarized Implementation Management

Agreement (IMA) among the PSO, RPCO and the concerned LGU together
with the copy of Appropriation Ordinance for the LGU Equity of the Project.
2. Certificate as to Availability of Funds (CAF) issued by PSO to the
concerned LGU.
3. Release for Advance Payment– not to exceed fifteen percent (15%) of the
contract cost:
a. Letter from the LCE requesting for the release of funds;
b. Notice of Award;
c. Performance Security as indicated in the PBD;
d. Contract Agreement together with certificate that all Annexes of the
Contract is with the RPCO;
e. Notice to Proceed with Acceptance / Conforme from the Contractor;
f. Bank certification of LGU Equity deposit equivalent to one hundred per
cent (100%) of the required LGU Equity;
g. Bank certification of LP and GOP account opened by LGU in the name of
LGU PRDP Trust Fund Account;
h. Bank Guarantee equivalent to mobilization fee or as specified in the
bidding documents.
i. Geotagged photos of site mobilization of equipment for the first work
activity.

Release for First Progress Payment – the progress payment must be based on
actual physical accomplishment. The first progress payment is encouraged to
happen on the first month of the contract without any minimum in physical
accomplishment.

1. Statement of Work Accomplished (SWA) with physical accomplishment

validated by the Joint Inspectorate Team (JIT);
2. Letter from the LCE requesting for the release of funds;
3. Requirements of advance payment from numbers 2 to 7 to be submitted if
Contractor did not avail of advance payment;
4. Monthly Financial Reports reflecting the payments made to contractor
utilizing the funds released.
5. Geotagged photos reflecting the equivalent physical accomplishment.

For succeeding progress payments, contractors can bill on a monthly progress

billing to improve Project disbursement and cash flow for the contract.

1. Letter from LCE requesting for the release of funds;

2. Statement of Work Accomplished (SWA), the physical accomplishment is
duly validated by the Joint Inspectorate Team (JIT).
3. Monthly Financial Reports reflecting the payments made utilizing the funds
released.
4. Geotagged photos reflecting the equivalent physical accomplishment.

75
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Release for Final Payment – one hundred percent (100%) of the contract cost
cumulative:

1. Letter from LCE requesting for fund release;

2. Statement of Work Accomplished (SWA) with 100% physical
accomplishment validated by the Joint Inspectorate Team (JIT) and endorsed
by the DA Regional Executive Director (RED);
3. Certificate of Completion signed by LGU Engineer and Local Chief Executive
(LCE);
4. Certificate of Turn Over by Contractor and Accepted by LCE of the LGU;
5. Certificate of Turn Over by LCE to end users;
6. COA Technical Inspection Report or duly received Letter Request for COA
inspection; and
7. Monthly Financial Reports reflecting the payments made utilizing the funds
released.
8. Geotagged photos reflecting the equivalent physical accomplishment.

Note: Copies of materials and field test results form part of the documents to be
reviewed by the LGU inspectorate team as well as the Joint Inspectorate Team by
the Project as basis for the final acceptance of the items of work subject for billing.

I-BUILD funds for Trainings, Workshops and Consultancy Services for NPCO,
PSO and RPCO is available for technical assistance for the implementation and
monitoring of subprojects. Financing mix for this sub component is 80% for LP and
20% for GOP.

Utilization of this fund will follow the DA guidelines and processes in the
disbursement of funds and World Bank guidelines of eligible expenditures for PRDP.

2.13.2 Requirements for Payment to Contractor

Release for Advance Payment

1. Letter from contractor requesting for mobilization fee;

2. Approved, signed and notarized Contract Agreement;
3. Performance Security specified in the PBD;
4. Bank Guarantee or as specified in the bidding documents equivalent to the
advance payment requested but not to exceed 15% of the contract cost and
confirmed by the LGU to the issuing bank;
5. Contractors All Risk Insurance (CARI) for the sub-project.
6. Geotagged photos of site mobilization of equipment for the first work
activity.

Payment of Progress Billing

1. Letter request from Contractor requesting for payment of progress billing;

2. Statement of Work Accomplished (SWA) – duly validated by the Joint
Inspectorate Team (JIT);
3. Certificate of Payment (COP);

76
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

4. Geotagged photos reflecting the equivalent physical accomplishment

5. Contractors All Risk Insurance (CARI) for the sub-project for the first
progress billing if the contractor did not avail for the advance payment.

Payment of Final Billing

1. Letter request from Contractor requesting for payment of physical

accomplishment;
2. Statement of Work Accomplished (SWA) with 100% physical
accomplishment validated by the Joint Inspectorate Team (JIT) and endorsed
by the concerned DA Regional Executive Director (RED);
3. Certificate of Payment;
4. COA Technical Inspection Report or duly received Letter Request for COA
inspection;
5. Certificate of Completion;
6. Certificate of Turn Over by the Contractor to the LCE;
7. Certificate of Turn Over by LCE to the end –user;
8. Geotagged photos reflecting the equivalent physical accomplishment.

Note: Copies of materials and field test results form part of the documents to be
reviewed by the LGU inspectorate team as well as the Joint Inspectorate Team by
the Project as basis for the final acceptance of the items of work subject for billing.

2.13.3 Processing of Contractor’s Billing

The Project will adopt the following timeline for each activity in the processing of
payment to contractors:
1. Ten (10) days will be allotted for the conduct of joint inspection and review
of the billing by the JIT, LGU and the Contractor. The output would be the
Statement of Work Accomplished (SWA), the Validated SWA and the
Certificate of Payment (COP) duly accepted by the contractor.
2. Five (5) days for the LGU to process the payment request/billing. The
timeline includes the transmittal of documents to RPCO;
3. Five (5) days for RPCO to process the payment request/billing. The timeline
includes the transmittal of documents to PSO;
4. Three (3) days for PSO to process the payment request/billing. The timeline
includes, the PSO to notify the LGU that the funds had been downloaded to
the LGU account.
5. Three (3) days for the LGU to release payment to the contractor,
6. Two (2) days for the LGU to liquidate the funds released.
7. The total number of days for processing the contractor billing should only be
28 calendar days.
Further, the PSO to inform the Contractor once the PSO had downloaded the funds
to the LGU and the Contractor to inform PSO within one week if no payment had
been made so that appropriate action would be made.
The billing timeline shall be strictly implemented to avoid implementation delays
and on track project disbursement rate

77
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2.13.4 Financial Reports

Periodic financial reports need to be submitted to appropriate offices in a timely

manner. Delayed reports could affect the releases of funds.
Table - 13 shows a summary of these submissions. Refer to the FMS manual for the
comprehensive financial management system of the I-BUILD component.

Table 2-14 Financial Reports – IBUILD Component

Monthly Report NPC PSO RPCO LGU Due
O Date
Monthly Report
1 Statement of Receipts and x x x x 10th day
Expenditures (SRE) of the
followin
2 Consolidated SRE x x x
g month

3 Trial Balance x x x

4 Bank Reconciliation Statement x x x x

(BRS)
Quarterly Report
1 Quarterly Consolidated SRE x x x
10th day
2 Balance Sheet x x x
of the
followin
3 Cash Flow Statement x x x
g
quarter
4 Withdrawal Application (WA) x x

5 Interim Financial Report (IFR)

- Sources and Uses of Funds x x

(SUF)
6 Statement of Expenditures (SOE) x x

Annual Report
1 Statement of Sources and x x x x not later
Application of
than
Funds (SSAF) 31-Dec

2 Consolidated Financial Report x of the

(CFR)
78
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

followin
g
3 Trial Balance x x x
year
4 Balance Sheet x x x

5 Statement of Income and Expense x x

(SIE)
6 Statement of Government Equity x x

2.14 Monitoring and Evaluating the Rural Infrastructure Component of PRDP

Scale Up

Monitoring and evaluation of the I-BUILD component will be based on the

parameters set in the logical framework. Physical targets are set per infrastructure
type such as number of kilometers, hectares, households while those categorized as
“Value Chain Rural Infrastructure” will be in different units of measure and could be
monitored in terms of the budget allotment.

For the daily implementation progress of infrastructure subprojects, it will be

monitored by the assigned Project Site Engineer with the following instruments: i)
weather chart; and ii) construction logbook.

The monthly implementation progress will be reported by the Provincial /

Municipal/ City Engineer with the following instruments: i) monthly physical
progress report; ii) suspension orders; iii) resumption orders; iv) variation orders;
v) inspection reports and vi) consolidated materials and field test results.

For the weekly updating of the SP progress reports in the DA PRDP / PRDP Scale Up
website per implementation stage such as how many SPs are at the project
identification and prioritization stage, validation stage, SP preparation stage (FS to
approval), procurement stage, ongoing implementation and operation and
maintenance stage, the following are the trigger points, delineation or coverage of
each stage in the project development cycle. i) project identification and
prioritization stage-an SP is counted under this stage if it is contained in the
approved PCIP; ii) validation stage – field visits had been made by the RPCO/PSO
and a validation report duly prepared; iii) SP preparation and packaging – FS/DED,
Finance, SES and GGU documentation had been prepared and appraised, approved
by RPAB and issued NOL 1; iv) SP procurement stage – invitation to bid had been
published until issuance of notice to proceed; v) SP implementation (contract
management) – from effectivity of notice to proceed until acceptance of the SP; vi)
SP operation and maintenance – from turnover of possession of site from the
contractor to the LGU until the next 10 years.

79
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The quarterly and annual reports will be prepared by the RPCO, PSO and NPCO
summarizing the overall progress of the I-BUILD component versus targets as
contained in the quarterly and annual work and financial plan of the Project. It
includes critical analysis of the slippages and what coping mechanism will be
adopted to hasten subproject implementation.

2.15 Social and Environmental Safeguards

The menu of eligible infrastructure interventions for PRDP Scale Up - IBUILD will be
the same as that of the original PRDP-IBUILD, but with updated and enhanced
parameters on the design of the infrastructures to make it a safer and climate
resilient rural infrastructure.

As safety net, the PRDP Scale Up subprojects under the I BUILD component will
adopt the new Environmental and Social Framework (ESF) guidelines developed
under the Social and environmental Safeguards in the implementation of
subprojects.

To ensure safety and health of the public, communities, workers and personnel
amidst COVID-19, the PRDP Scale Up will continue to adopt the guidelines and tools
adhering to the Safeguards Policies of the World Bank as well as the new policy
issuances, protocols and standards of the Philippine Government.

Refer to the Operations Manual of the Social and Environmental Safeguards Unit on
the detailed application of the Social and Environmental Framework guidelines in
relation to the IBUILD subproject development cycle.

2.16 Sustainability

To ensure continuous use of facilities, end users will be formed into groups or
associations for the proper operation and maintenance of completed rural
infrastructures / facilities / structures. It may be existing government entity, road
users association, farmers and fisher-folks association, irrigators association and
water users association. The LGU to endeavor the organization of Operation and
Maintenance Groups or Associations of end users and cause its recognition or
registration to obtain legal personality and or membership to the LGUs special
bodies.

In areas where there are organized groups that could sufficiently handle the
operation and maintenance of completed rural infrastructures / facilities /
structures, the LGU endeavors to strengthen the group organizationally and
financially in providing the O and M services.

PRDP Scale Up will continue the operation and maintenance audit system stablished
under the original PRDP. The ROMAT will monitor the compliance of the LGUs on
the O & M for a period of 10 years. The details are in appendices. The subproject
Operation and Maintenance Manual is attached as appendix C, D, E, F, G and H.

80
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The IBUILD Operation and Maintenance Manual will be enhanced and Updated this
August of 2023 and will be reported on the WBISM on October 2023.

The LGUs’ track record in maintaining their previous DA financed subprojects will
be a basis for continuous engagement. Conversely, further investments in those
LGUs that have unsatisfactory performance in the operation and maintenance of
their completed subprojects shall cause DA to withhold future projects until such
time that the LGU complies with the O&M requirement.

2.17 Applied Geotagging Technology

The IBUILD component will continue to adopt the updated and enhanced Applied
Geotagging Technology (AGT) under the GGU on the subproject identification,
validation, review and approval procurement, implementation and operations and
maintenance of IBUILD subprojects including the support infrastructure (civil
works) under the IREAP component.

Refer to the Operations Manual of the Good Governance Unit (GGU) on the detailed
application of the AGT in relation to the IBUILD subproject development cycle.

2.18 Procurement

Procurement implementation arrangement for PRDP is authorized by the World

Bank Procurement Guidelines and the Government Procurement Reform Act
(GPRA), otherwise known as Republic Act (RA) No. 9184 and its revised
Implementing Rules and Regulations (IRR), Article 1, Section 4.2, which states:

“Any Treaty or International or Executive Agreement to which the GOP is a

signatory affecting the subject matter of the Act and this IRR shall be observed. In
case of conflict between the terms of the Treaty or International or Executive
Agreement and this IRR, the former shall prevail.”

Refer to the Operations Manual of the Procurement Unit on the detailed application
of the procurement guidelines in relation to the IBUILD subproject development
cycle.

3.0 Rural Roads

3.1 Scope

Rural roads infrastructure sub-components shall be limited to the following:

81
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

1. Concreting / Upgrading / Rehabilitation of existing farm-to-market roads.

The design of FMRs should be based on the actual survey as per actual site
conditions which include application of subbase or base course and
concreting as surface finishing, roadside drainage system such as canals and
mitre drains (earth, masonry or concrete) and applied with dissipators if
applicable, cross-drainage structures with complete accessory structures
such as cut-off wall, wing wall, catch-water basin, aprons, boulder fills, inlet
and outlet structures) and side slope protection measures against erosion
(bio-engineering and permanent structures).

The concrete paving will be applicable to all road gradients from 0.5% to
12%. Road gradient up to 15% for short distances until 100 meters but not
more than 18% for short distances until 50 meters may be supported in
meritorious cases that are justified in terms of technical (amount of
degradation) and economic consideration (cost of mitigating measures)
subject to in depth evaluation.

2. Construction / Road Opening of new farm to market roads. Road gradient of

new construction / road opening of FMR should range from 0.5% to 12% if
possible. For FMR with road gradient above 12% to 18%, safer and climate
resilient structures and design shall be incorporated and shall pass the
environmental impact assessment and the EFA.

3. Rehabilitation / Upgrading of existing bridges identified in the value chain.

4. Construction of 2-lane bridges.

3.2 Financing Scheme

Cost sharing scheme for all subproject type:

The cost sharing between the National Government (NG) and the LGUs shall be as
follows:

✔ 90 % - to be financed by the National Government in the form of grant

(80% WB Loan Proceeds and 10% GOP) based on the Estimated Project
Cost (EPC) for subproject to be approved (NOL 1) in the year 2023-2024;

✔ Calibrated equity contribution to be financed by the National Government

in the form of grant based on the Estimated Project Cost (EPC) for
subproject to be approved (NOL 1) in the year 2025-2028;

✔ 10% - equity contribution of the LGU in cash based on the Estimated

Project Cost (EPC) for subprojects to be approved in the year 2023-2024;

82
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Calibrated equity contribution of the LGU in cash based on the Estimated

Project Cost (EPC) for subproject to be approved (NOL 1) in the year
2025-2028. LGUs calibrated equity contribution will be based from the
LGUs income classification;

Table 3-1 Cost Sharing scheme for all IBUILD subproject type:
Subprojects to be Cost Sharing Scheme
approve in 2023-2024
LP GOP LGU

80% 10% 10%

Subprojects to be approve in 2025-2028

LGU Income Calibrated Cost Sharing Scheme

Classification
LP GOP LGU

5th – 6th class 80% 10% 10%

3rd – 4th class 70% 10% 20%

1st – 2nd class 60% 10% 30%

The cost sharing scheme is the maximum limit LP and GOP. The percentage of LP
and GOP will be lowered when the variation order is fully shouldered by the LGU.

The estimated project cost (EPC) for PRDP Scale Up will follow the provisions of
DPWH D.O. No. 197 Series of 2016 (Revised Guidelines in the Preparation of
Approved Budget for the Contract (ABC) except for the VAT component. The project
will use 12% VAT as stated at the Regulations No. 13-2018, the Regulations
Implementing the Value-Added Tax Provisions under the Republic Act (RA) No.
10963, or the “Tax Reform for Acceleration and Inclusion (TRAIN),” Further
Amending Revenue Regulations (RR) No. 16-2005 (Consolidated Value-Added Tax
Regulations of 2005), as Amended.

For FMRs and Bridges, all item of work to be used in preparing the EPC shall
conform to the DPWH Standard Specifications for Highways, Bridges and Airports
Volume 2 revised 2015 or latest edition of the DPWH Blue Book and approved
Special Specifications for the Project.

The Project shall adopt the DPWH DO No. 136 series of 2022 “Revised Construction
Safety Guidelines for the Implementation of Infrastructure Projects During the
COVID-19 Public Health Crisis, Superseding Department Order Nos. 39 Series of
2020 and 30, Series of 2021 and future amendments thereto to prevent the spread
of Covid-19. The cost required for additional PPEs, thermometer, disinfectants,
footbath, washing stations, vitamins etc. shall be included in the POW in addition to
items not included in DOLE D.O. 13.

83
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The cost for a quality control laboratory shall be included in the POW for FMR and
bridge proposals of qualified LGUs. For all intent of fully capacitating the LGUs in the
implementation of PRDP Scale Up and bigger subprojects during “Mandanas
implementation”, there is a need in terms of establishing the LGU’s quality control
laboratory for soils, aggregates, cement, concrete, steel bars and commonly used
construction materials to ensure the quality of subprojects to be implemented.

Since the Project will allow the test from LGU owned DPWH accredited laboratory to
do testing for PRDP scale Up for the purpose of augmenting the limited third party
test, it shall be facilitated through the inclusion of items as provided for in the
DPWH D.O. No. 5 series of 2017 in the program of work preparation specifically
Item A.1.1(14) Provision of Laboratory Testing Equipment, Apparatus and
Publication for the Engineer (See annex 53 for the details).

The grant of the proposed item above shall depend on the assessed need of the LGU
and further limited to LGUs with existing locally initiated plans for a complete
laboratory equipment, apparatus and machines and those with application for
DPWH accreditation of their quality control overall laboratory to maximize
investments. It will only be applied in one FMR sub-project of an eligible LGU.

The minimal amount to be availed from the above applicable quality control item
should not exceed 5% of the estimated project cost. This is anchored on the premise
that the Project is basically augmenting the limited capacity of the LGUs towards the
accreditation of existing quality control facilities. The rest of the requirements for
accreditation shall be taken cared by the LGU.

EPC Computation includes the following: (EPC = DC + IDC)

a. Direct Cost (DC):

1. Materials Cost [cost at source (includes local taxes, processing, crushing,

stockpiling, loading, royalties, construction and/or maintenance of haul
roads), expenses for hauling, handling, storage, and allowances for waste
and losses (not to exceed 5% of material requirement)]

2. Labor Cost (salaries and wages, as authorized by DOLE regional wage

board or locally legislated rates).

3. Equipment Expenses (rental of equipment based on prevailing 2014

ACEL rates or locally legislated rental rates).

b. Indirect Cost (IDC):

1. Overhead, Contingencies and Miscellaneous (OCM): 8-15% of DC

✔ Overhead Expenses, 7-11% [engineering and administrative
supervision, transportation allowances, office expenses, CARI, and
financing cost (bid security, performance security and warranty)].

84
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Contingencies, 0.5-3% [expenses for meetings, coordination with

other stake holders, stages during ground breaking, inauguration
ceremonies, other unforeseen events and billboards (excluding
Project Billboard which is a pay item under the General
Requirement)]
✔ Miscellaneous Expenses, 0.5-1% (laboratory tests for quality
control and plan preparation)

2. Contractor’s Profit (CP): 8-10% of DC

3. VAT Component: 12% of (DC+OCM+CP)

Table 3-2 Indirect Cost Factors for Subprojects

Estimated Direct Cost Indirect Cost % for OCM & Profit Total Indirect
(EDC) Cost % for
OCM Profit (% of
OCM &
Php (% of EDC) EDC)
Profit

Up to 5M 15 10 25

Above 5M up to 50M 12 8 20

Above 50M up to 150M 10 8 18

Above 150M 8 8 16

The following items shall not be subjected to OCM and profit mark-up:
1. Mobilization and Demobilization
2. Provision of Service Vehicle

The following non-civil work items shall not be subjected to OCM mark-up:
1. Field /Laboratory Office & Living Quarters (Rental Basis)
2. Furnishing of Furniture, Laboratory Equipment, Survey Equipment and
Consumables
3. Assistance to Engineers
4. Photographs
5. Health and Safety
6. Traffic Management
7. Environmental Compliance
8. Communication Equipment, etc.

In all cases, estimates for special items of work (SPL) should be accompanied with
plans and specifications, methods of construction, measurements and basis of
payments duly approved by the head of the implementing office. Annex 46 describes
the technical specifications for commonly used SPL items.

3.3 Subproject Identification, Selection and Prioritization

85
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Identification, selection and prioritization of farm-to-market roads and bridges shall

be governed by the provincial commodity investment plan (PCIP) in line with the
regional agri-fisheries modernization plan and at the National Agriculture and
Fisheries Modernization and Industrialization Plan (NAFMIP). The PCIP will be
prepared in coordination with the Provincial Planning and Development Office
(PPDO), Provincial Agriculture Office (PAO) and the Provincial Engineer’s Office
(PEO) in consultation with all the agri-fisheries stakeholders. Road network
planning shall be undertaken by the LGUs in the year prior to the projected
implementation of their rural infrastructure component. The PCIP contains the
priority commodity subjected to the value chain analysis and list of prioritized SPs
or support infrastructure along the value chain subjected to the prioritization
criteria. The PCIP will be treated as a 3 years rolling investment plan being updated
as additional commodities are included.

To ensure the proper selection and maximize the benefit of proposed FMRs, the
following general guidelines shall be considered:

1. Must link to an existing all-weather road. all weather road is type of a road
that is passable in all-weather condition, it may be a well maintained gravel
road, asphalt road or concrete road;

2. Must be a vital link to existing or potential key production areas (for

agricultural and fishery/marine produce, and halal-based food production,
processing and marketing) of target provinces, municipalities and cities;

3. An ideal road traffic for existing road rehabilitation shall be 50 vehicles or

more per day (VPD);

4. New road construction shall be justified on the basis of the projected volume
and value of agricultural production that will be transported over the road
section that will allow the SP to pass the 10% EIRR hurdle rate.

5. Indicative unit costs for road Construction / Upgrading / Rehabilitation /

concreting is php. 21,000,000/km. The unit cost includes excavations,
embankments, base course, PCCP and structures such as RCPC/RCBC cross
drainages, side drains, slope stabilization/protection structures, signage and
other activities and structures needed for a safer and more climate resilient
FMR. The indicative unit cost parameter is not the ceiling but a reference cost
of an average road construction vis a vis economic viability.

For two lanes (5.6m) bridges, the indicative unit cost is php 1,200,000.00 per
linear meter and for two lanes (6.7m) bridges, the indicative unit cost is php
1,400,000.00 per linear meter

6. Proposed roads must not be currently covered by any other funding sources.

7. Must be included in the provincial commodity investment plan (PCIP).

86
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

8. Right-of-way is not a problem.

9. In the case of new road openings, this should not encroach on

environmentally protected areas (e.g., forest ecosystems).

10. The location of new road openings shall be such that the cutting of big trees
will be avoided; or if this cannot be avoided, any such cutting of big trees
shall be done only with prior coordination and clearance with the DENR.

11. Where new road openings encroach on areas with IPs or lands with ancestral
domain claims, the free and prior informed consultation and free and prior
informed consent (FPIC) respectively of the IPs must be obtained through the
NCIP.

3.4 Subproject Appraisal and Approval System

3.4.1 Eligibility Criteria

One prerequisite for LGUs to be eligible for participation under the project shall be a
completed overall provincial commodity investment plan (PCIP).

Based on the above document, the RPCO issues an invitation to the eligible LGUs to
submit their list of priority subprojects for project assistance. The Local Chief
Executive shall prepare a Letter of Intent (LOI) for financing for rural roads in their
respective Provinces, Municipalities and Cities. The LOI and list of priority
subprojects shall be accompanied by the following documents:

1. Color-coded National road, Provincial road, Municipal road, Barangay road

and farm to market road network plan in google earth including the geo-
tagged proposed SPs and Road Influence Area (RIA);

2. Brief description of each proposed subproject under the project to include

among others, the length in km of FMRs and linear meters for bridges, the
location, kinds of agricultural products and estimated areas to be served,
estimated cost, and current and projected traffic counts;

3. Provincial Sangguniang Panlalawigan and Municipal/City Sangguniang Bayan

resolution expressing intent to participate in the project and commitment to
finance the required equity contribution (indicating the amount) in cash and
to provide a specified cost of maintenance and repair after completion of the
SP;

4. A certification from the Provincial/Municipal/City treasurer on the

availability of funds for the specified amount of equity contribution and
routine maintenance. Certificate of Availability of Funds (CAF) must be
certified and issued by the proper accounting officials before contracts /
agreements and all other documents are approved and notarized.

87
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

5. Compliance checklist of LGU eligibility and selection criteria;

The first tier LGU eligibility assessment as regards to technical capacity, financial
capacity and Operation and Maintenance commitment of previously implemented
special projects of DA like the original PRDP, InFRES, MRDP and CHARMP must be
favorable.

3.4.2 Subproject Validation

Upon receipt of the above documents, the RPCO shall review and evaluate the merits
of the proposed subprojects and conduct field validation. Technical assistance from
the PSO/NPCO may be sought for complex subprojects. A final validation report
shall be prepared by the RPCO. Attached to the validation report is a subproject
prescreening checklist such as information on the unit cost parameters, EIRR, B/C
ratio, IP and subproject environmental categorization concerns and validation of
LGU capacity.

3.4.3 Feasibility Study (FS)

Proposed subprojects that have been validated are those to be subjected to

Feasibility Study (FS) analysis. Upon receipt of the letter of approval of application
issued by the RPCO, the LGU shall immediately prepare the subproject feasibility
study.

The FS report shall, among others, cover the following:

1. Subproject location on the Provincial / Municipal / City road network plan;

2. Subproject location on the FMR road network plan;

3. Length of road in kilometers and bridges in linear meters and road influence
area in sq.km or hectare;

4. FS level engineering design;

5. Traffic counts along roads and bridge locations;

✔ Traffic count shall be conducted in three (3) consecutive days. (1-regular
day, 1-market day and 1-Sunday)
✔ For road openings, projected traffic count should be used.

6. Benefits to be derived;

7. Cost estimates based on updated and acceptable unit cost parameters;

88
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

8. Implementation schedule including periods for detailed engineering

preparation, advertising and bidding;

9. Current road and bridge conditions;

10. Financial and economic analysis and other data and analysis as may
reasonably be required by the RPCO and/or PSO/NPCO.

11. Environment Compliance Certificate (ECC) or Certificate of None Coverage

(CNC) from DENR whichever is applicable;

12. Environmental and Social Management Plan (ESMP);

13. Primary survey on Displaced Persons and on IPs;

14. Clearance certificate on right-of-way and damages and other clearances and
permits as required by concerned regulatory agencies.

In the event that an LGU cannot prepare the FS due to lack of in-house capability or
lack of staff, it may contract out such work to service providers. The cost of such
shall be to the account of the LGU but shall not be counted as part of the LGU cash
equity for the subproject.

The FS report will be reviewed and approved internally within the P/M/CPMIU.

Feasibility outline is attached as annex 2

3.4.4 Subproject Detailed Engineering Preparation

3.4.4.1 Field Surveys

After the approval of the FS, the LGU shall immediately conduct field survey of farm
to market roads to cover the following:

1. Traverse and profile surveys are done simultaneously. The exact

location/stationing of existing and proposed structures, natural waterways
and other physical features like location of quarry site or source of locally
available materials are recorded. Establish at least two reference points at
station 0+000 and benchmarks every 500 meters or at location of permanent
structures;

2. Cross-section survey follows using the adjusted centerline stations at every

20 meter full stations and cross sections in between full stations for
excessive side cut or fill sections. The cross-section line to extend at least 1
meter beyond the roadway limit at locations of natural waterways which are
possible sites for cross-drainages. The NGL and design back slope/fore slope
should be extended in the cross section drawings until the two line
intersects.

89
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3. Topographic survey of bridge/RCBC sites showing creek, river or waterway

alignment. Topographic survey shall extend 200 meters upstream and
downstream of bridge site and at least 100 meters to the left and right of the
river banks;

4. Longitudinal river profile defined by the elevations taken at bridge

centerline, 100 meters and 200 meters upstream and downstream. Cross-
section of river, creek or waterway at bridge centerline, 100 meters and 200
meters upstream and downstream of bridge site indicating the ordinary
water level and maximum flood levels.

5. Geo-technical survey consists of determining the sub-surface soil

characteristics. The nature of the soil and its bearing capacity is determined
to establish the foundation stability. This is necessary since the structure
foundation failures are almost permanent. For instance, the road subgrade
CBR values taken from test pits are inputs in the PCCP thickness design. The
soil classification of proposed cut sections of the road should be determined
during the survey works whether common earth, unclassified soil or solid
rock. For bridges, boreholes (SPT) at abutments and location of piers and for
spillways and box culverts when field investigation of solid anchors of cut-off
walls cannot be physically verified.

6. Hydrologic/hydraulic survey consist of gathering local climatic data such as

rainfall, flood marks, catchment area and type of cover, natural and man-
made water channels or tributaries which would aid in the determination of
the design water velocity, design river discharge, scouring or rate of siltation.
It is important to capture the rainfall data over which the effect of climate
change has impact on the flood projection.

7. Consideration during field survey should include the following:

a. Soil classification
b. Existing and proposed structures.
c. Existing and design gradients, cut and embankment slopes for FMRs
d. Issues arising from beneficiary consultations that should have an
effect on the design,
e. Right of way acquisition,
f. Damage to properties, crops and effect of the subproject to the
environment.
g. Location of drainage structures and slope protection structure based
from the consultations.

3.4.4.2 Design, Drawings, Specifications

The P/M/C Engineering Office/Agricultural Engineering Office shall proceed with

the preparation of detailed design, drawings, specifications, POW and O&M plan
once field survey works have been completed.

90
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

In the case of new road openings where there are unstable or disturbed slopes, the
design shall include appropriate erosion control, slope stabilization and protection
measures, as well as the provision of sediment traps on side canals during
construction. The design shall also include proper side and cross drainage and
mitre drains to prevent flood overflow and soil erosion.

The following Geometrical and Design Specifications and Scheme shall be adopted
for the project:

Table 3-3 Geometrical & Design specifications and Scheme for Roads &
Bridges
Road Classification

(Farm to Market Geometrical and Design Specifications and Scheme

Road)

Pavement Type Portland Cement Concrete Pavement (PCCP)

DPWH DO 112 series of 2019

Minimum of 5-meters for two lanes

✔ Average Daily Traffic (ADT) less than 200:

DPWH DO 15 series of 2020

Pavement Width
Minimum of 6.1-meters for two lanes

✔ Average Daily Traffic (ADT) of 200 and above:

Note:

200 and above ADT shall be validated by the Project

(RPCO/PSO/NPCO)

Refer to Annex 12 for the traffic count form and instruction on

the conduct of traffic count.

DPWH DO 112 series of 2019 and DPWH DO 15 series of 2020

is attached as Appendix M and N.

Minimum of 200mm (8 inches) (Higher Thickness of pavement

may be adopted but shall be verified from pavement design
analysis using AASHTO method as contained in the DPWH
Pavement Thickness Design Guidelines Criteria and Standards considering the
latest Annual Average Daily Traffic and Axle Loading).

Distance of weakened 4.5 meters

91
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

plain / contraction joint

✔ Minimum width of 1.5 meters both sides.

✔ Minimum gravel / base course surfacing.

✔ In road sections with steep slopes prone to water run-

off erosion and or prone to flood water over tapping,
the shoulder shall be concrete sealed with sufficient
miter drains as a climate proofing measure.

✔ Mandatory concreting of shoulders with road gradient

Shoulders above 10%. Limits of the concrete shoulders shall be
designed to prevent scouring at shoulders.

✔ The shoulder at the back slope maybe utilized as canal

in critical section in mountainous areas with limited
space due to massive mountain side/through cutting
and as covered canal in sections along fully developed
residential areas with permanent structures.

✔ The width of road shoulders may be relaxed to 1.0

meters at critical sections in mountainous areas and in
flat terrain areas where the design of the road is
elevated due to flooding and in areas where the 1.50
meter shoulder is not possible.

Carriageway Cross 1.5% for PCCP

Slope

Shoulder Cross Slope 3% for gravel / base course surfacing

✔ Minimum of 30 meters.

✔ Existing roads with curve radius less than 30 meters

Radius of Horizontal
constrained by permanent structures and re-routing is
Curve
not possible must be treated with PCCP curve widening
and appropriate warning signs and barriers.

Length of Tangent Minimum length of 30 meters

between Reverse Curve

Length of vertical curve Minimum length of 60 meters

Design Speed 30 km/hour for all terrain

✔ Minimum of 0.5% and maximum of 12% on fill/cut

section.
Longitudinal Grade ✔ The maximum grade maybe relaxed in mountainous
terrain above 12% to 15% for short distances below

92
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

100 meters and above 15% to 18% for short distances

below 50 meters.

✔ Cut slope of 1.5:1 to 1:1 for common materials

✔ Cut slope of 0.5:1 to 1:1 for rippable rock

Side Slope Ratio (H:V)

✔ Cut slope of 0.25:1 to 0.5:1 for hard/solid rock

✔ Minimum fill slope of 1.5:1

✔ Construction of berm for side cuts more than 5 meters

height in common and unclassified soil.

✔ The Drainage Design includes provision of lined canals,

earth canals, mitre drains, cross drainages such as
RCPC, RCBC, spillway and bridges and storm drainages
away from the subproject.

✔ Surface Drainage – design for 2-year flood

✔ Side Drainage and miter drains – design for 5-year

flood
Road Drainage
✔ Box Culvert – design for 25 - year flood with sufficient
freeboard to contain 50-year flood

✔ Pipe Culvert – design for 15-year flood with sufficient

freeboard to contain 25-year flood.

✔ Minimum pipe size of 910mm in diameter.

✔ Sufficient cut-off wall depth anchored on solid river bed

for the RCBC barrel box and apron for stability.

✔ Use of RCPC concrete cradles at the RCPC connections.

✔ Curve and Gutter directly connected to the PCCP shall

have a gutter width not less than 0.5 meters.

✔ Mandatory lining of side drain canals with road

gradient above 10% regardless of soil classification.

✔ Geotechnical investigation for box culverts – minimum

of 1-meter test pit excavation at river bed.

93
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ The option for earth canal is justified if the soil type can
resist water scouring. Provide hydraulic analysis to
substantiate the designed sizes of drainage structures
and this should be validated by way of superimposing
at the site location and rule of thumb dictates that there
should be no constriction of the natural drainage
channels to be safe.

✔ As Needed

✔ Where the required slope is NOT attained at cut

sections / back slope:

● Side cuts greater than 3 meters in common and

unclassified soil shall be provided with slope
protection structures designed as retaining wall
such as grouted riprap, stone masonry, reinforced
concrete, crib walls, piles, rock net, shotcrete,
gabions, rubble masonry and the like.

● For sides cuts less than 3 meters, it will be the

engineer’s judgement when to provide slope
protection, and it will depend on actual site
conditions, design cut, slope stability. soil
classification and recovery of sufficient road right of
way.

✔ Where the required slope is attained at cut sections /

back slope:

● Sides cuts greater than 3 meters in common and

Slope Protection
unclassified soil shall be provided with slope
protection structure designed as slope stabilization
through bio engineering technology such as use of
coco-geonets and vertiver grass, hydro-seeding,
sprigging, sodding, tree planting and the like.

● Sides cuts less than 3 meters may not be provided

with slope protection provided that the required
design slope will be attained.

✔ Needed for road embankment more than 1 meter.

✔ In embankment areas below 1 meter in height along

rice, corn and sugar areas where agricultural plowing
slowly erodes the road shoulder, mandatory provision

94
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

for slope protection shall be provided.

✔ Needed for flood prone road sections to fully

seal/protect the road section from flood water over-
tapping including concrete sealing of road shoulders.

✔ All slope protection designed as retaining wall shall be

provided with structural design analysis. (Sliding and
Overturning).

Refer to DPWH Highway Safety Design Standards, Part 1 and 2,

May 2012. Refer to Appendix O and P.

Refer to PRDP Road Safety Guidelines.

✔ All road intersections must be developed with at least 1

span applied with PCCP and intersection drainage as
needed. Provision of pathway of affected persons due
to road widening or restoration of damage access to the
household.

Road Safety ✔ Provisions of covered canal cum elevated walkway in

highly populated section of the road

✔ Provision of lay by with access path/road for animal

and farm implements from road to the farm. (structures
for animal and farm machineries or implements as
access to the farm lots, provide "lay-by" for queuing or
stations of threshing equipment).

✔ Provision of a safe lay by or loading and unloading in

public zones (e.g. for school children in schools without
parking).

✔ Provision of road railings in hazard prone section of the

road, wheel guards, inclusion of road junction /
intersection design at every point of road intersection
(e.g. widening and concreting of at least one span of the
transition approaches of the road connected to the
subproject and likewise widening of the approaches of
carabao sledge trails connected to the subproject for
unloading of farm products), provide concrete ramp as
access to adjacent houses to the subproject, provide
road crossing

✔ provision of road signs, road pavement markings (e.g.

95
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

crossing lanes along schools)

✔ Covered canal is also required along congested

residential areas, schools and others where the
shoulder is limited due to permanent structures.

✔ Provisions for road junction and road transition safety

designs.

Accessibility
Requirements for
As needed
Persons with Disability

Table 3-4 Geometrical & Design specifications and Scheme for Bridges
Bridge Structure Geometrical and Design Specifications and Scheme

✔ Permanent structure must be concrete or steel

Bridges ✔ DPWH DO No. 30 Series of 2011 prescribing concrete

structures for short bridges in the following schedule:
use flat slab bridge for span length of 6-12 meters;
RCDG for span length of 13-20 meters; and PSCG for
span length of 21-30 meters.

✔ DPWH DO No. 179 series of 2015 re: DPWH Design

Guidelines, Criteria and Standards (DGCS), 2015
Edition (Volume 5 – Bridge Design)

✔ Structural design based on AASHTO HS15-44, using

0.4g ground acceleration coefficient for seismic analysis
and 50-year flood frequency for hydraulic analysis.

✔ Structural design based on AASHTO HS20-44 / HL 93

Bridge Design live load criteria may be used in the design depending
on the current and projected traffic load.

✔ Free board from the maximum flood level to the bottom

of the bridge girder shall be 1.50 meters.

✔ The bridge shall be designed by DPWH or structural

engineer.

✔ Bridge design of the substructure shall be based on the

geotechnical and hydraulic analysis.

96
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ The design of the bridge superstructure may be

adopted at the DPWH standard design.

✔ The structural analysis shall be signed by DPWH or

structural engineer.

✔ Signed geotechnical analysis, hydraulic analysis and

structural analysis shall be submitted.

Bridge Carriageway
✔ Use 4.6 meters (for 4.0meter PCCP Carriageway width)
Width

✔ Use 5.6 meters (for 5.0 meter PCCP Carriageway width)

✔ Use 6.7 meters (for 6.1 meter PCCP Carriageway width)

Bridge Revetment
✔ Revetment shall be provided at bridge abutments with
a maximum length of 50 meters upstream and
downstream of the bridge. The length and design of the
revetment shall be based as per actual site condition,
soil classification of river banks and hydraulic analysis
to prevent scouring at bridge abutments and river
banks adjacent to the bridge abutments..

Geo-technical Analysis
✔ Geo-technical survey consists of determining the sub-
(bridge and overflow
structure foundation) surface soil characteristics. The nature of the soil and
its bearing capacity is determined to establish the
foundation stability.
✔ Soil exploration/soil analysis conducted by third party,
the name of company is indicated in the Soil
Exploration Report.

Hydraulic Analysis
✔ Hydrologic/hydraulic survey consist of gathering local
climatic data such as rainfall, flood marks, catchment
area and type of cover, natural and man-made water
channels or tributaries which would aid in the
determination of the design water velocity, design river
discharge, scouring or rate of siltation.

✔ That the design of Bridges shall be 50-year flood with

sufficient freeboard of 100-year flood.

Bridge Technical
✔ Shall be signed by DPWH certifying that the plans are in
drawing plans.
accordance with the minimum requirements of the
department or DPWH to provide certification of
correctness and consistency of the plans with the

97
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

hydraulic analysis and structural analysis.

Qualifications of Contractor’s Bridge Engineers.

Qualifications of technical personnel for multi-span Bridge Subproject:
✔ Project Manager - Licensed Engineer with at least five (5) year
managerial experience out of the minimum 15 years of relevant work
experience on construction.

✔ Project Engineer - Licensed Engineer with at least 10 years of relevant

experience in construction works with at least two (2) bridge construction
supervised.

✔ Materials Engineer - Civil Engineer with at least 5 years of relevant work

experience in materials and quality control duly accredited by DPWH.

Qualifications of technical personnel for single span Bridge Subproject:

✔ Project Manager – Licensed Engineer with at least 10 years of relevant work
experience.

✔ Project Engineer – Licensed Engineer with at least 5 years of relevant

experience in road and/or bridge construction.

✔ Materials Engineer - Civil Engineer with at least 3 years of relevant work in

materials and quality control duly accredited by DPWH

Detailed Engineering Design - Technical Drawing Plans of proposed FMR

subprojects shall include the following details:

1. Cover page with logo of PRDP SU and LGU, Subproject Name and ID Number
(No title blocks and signatories at the cover page);

2. Title blocks – PRDP SU format.

3. Drawing register or table of content;

4. Summary of quantities

5. Location map showing the Philippine map, Provincial map, Municipal/City

map and the subproject location;

6. Vicinity map indicating a color-coded Provincial, Municipal, City Barangay

and FMR Rationalized Road Network Plan indicating the following:
a. overall existing and proposed rural roads;
b. geotag tracks of the proposed subprojects;

98
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

c. road influence area of the proposed SP

7. Parcellary map

8. Straight line diagram

9. General notes;
a. General and technical specifications, and other construction details
b. Indicated the Design Specifications, Design Loadings.
c. Indicated the Construction Notes such as Construction Specifications,
Setting Out, Construction Limits, Concrete Mix and Placing, Bar Bending
and Cutting, hooks, splices, embedment and concrete covers and notes on
the earth works.
d. Indicated the Legends used and Civil Abbreviations.
e. Provide notes for the bench marks.

10. Plan and Profile Drawing Plans showing / indication the following;
a. On a 50 cm x 100 cm half-roll cross-section paper or tracing paper for
AutoCAD generated plans;
b. The scale to accommodate not more than 1 km per sheet.

Plan Drawings:
c. North arrow indication
d. At least two reference points / bench marks at sta. 0+000;
e. Bench marks at every 500 meters;
f. Distance, azimuth, elements of curve (horizontal and vertical);
g. Location of bodies of water and direction of water flow;
h. Type of existing and proposed drainage structures indicating the
direction of water flow.
i. Type of existing and proposed structures drawn at their station limits.
j. Connection of the proposed road to the existing road labeling the type
and classification of the road.
k. Road junctions including transition designs.
l. Labels of all proposed and existing structures.
m. The scale for traverse plan is 1:1000

Profile Drawings:
n. Existing and designed road gradient;
o. Drainage structures drawn at their invert elevations.
p. The scale for profile plan is 1:100 for the vertical and 1:1000 for the
horizontal;

11. Cross-sections drawings showing / indication the following:

a. Drawn at full station (20-meter interval) and in between stations for
excessive excavation and fill in a 50 cm x 100 cm full cross-section paper
or tracing paper for AutoCAD generated plans.

99
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

b. The cross section drawings should be drawn starting from the lower left
corner of the drawing sheet going up until the sheet column is full and re-
start again at the lower bottom going up and so forth.
c. It should show the original cross-section grade line and design road
section, computed cut and fill end areas, existing and design elevations,
the centerline indicator and superimposed structures with their invert
elevations.
d. The NGL and design back slope/fore slope should be extended in the
cross section drawings until the two line intersects.
e. All existing and proposed structures to be drawn at their station limits
(start and end station).
f. Slope of the back slope and fore slope
g. Soil classifications at cut sections
h. The scale is 1:100;

12. Typical road cross sections on cut and fill and existing PCCP to fresh concrete
section;

13. Individual and specific plans and details of proposed structures indicating
exact stations with a scale of 1:10 or 1:20;
a. PCCP, widening blocks
b. road crossings / junctions and transition designs;
c. Cross drainage structures (box culverts, pipe culverts, other cross
drainage structures);
d. Side drain structures (earth and lined canals, ditches)
e. Slope protection structures
f. Warning Signs, Regulatory Signs, Information signs
g. Metal Guard Rails
h. Project Billboard
i. Other proposed structures.

14. Summary of volumes and quantities

15. Earthwork and structure quantity computation sheets
16. Quantity Table indicating station, area and volume of cut and fill
17. Quantity Table indicating station, Dimension and volume of slope protection
structures.
18. Summary of quantities of structures showing area, volume etc of structures.
(Drainage schedule, Schedule of RCPC, Bar Schedule (Box culvert), Road
Signage Schedule, Others)

Detailed Engineering Design - Technical Drawing Plans of proposed Bridge

subprojects shall include the following:

1. Cover page with logo of PRDP SU and LGU, Subproject Name and ID Number
(No title blocks and signatories at the cover page)

2. Title blocks – PRDP SU format.

100
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3. Location map showing the Philippine map, Provincial map, Municipal/City

map and the subproject location;

4. Vicinity map indicating a color-coded Provincial, Municipal, City Barangay

and FMR Rationalized Road Network Plan indicating the following:
a. overall existing and proposed rural roads;
b. geotag tracks of the proposed subprojects; and
c. road influence area of the proposed SP.

5. Topographic map of bridge site showing creek or waterway alignment and

location of proposed bridge. Topographic survey shall extend 200 meters
upstream and downstream of bridge and at least 100 meters to the left and
right river banks. The scale is 1:50,000 with contour interval of 0.5 meter to
1 meter;

6. Longitudinal river profile extended 200 meters upstream and downstream;

7. River cross-section at 100 meters and 200 meters from upstream and
downstream indicating the ordinary and high flood levels and cross-section
lines extended 100 meters from left and right side of the river banks;

8. General notes
a. General and technical specifications, and other construction details
b. Indicated the Design Specifications, Design Loadings.
c. Indicated the Construction Notes such as Construction Specifications,
Setting Out, Construction Limits, Concrete Mix and Placing, Bar
Bending and Cutting, hooks, splices, embedment and concrete covers
and notes on the earth works.
d. Indicated the Legends used and Civil Abbreviations
e. Concrete pouring sequence
f. Notes on the bench marks for both abutments.

9. Bridge plan and elevation (longitudinal and transverse) superimposed over

the river cross-section with the ordinary and high flood elevations. It shows
the details of the abutment, protection works, type of footing and its
elevations, superimposed bore log data using the same bridge elevation
reference;

10. Plan and elevation of bridge structures including spot details with scale of
1:10 or 1:20.
a. Deck Slab - Indicating the carriageway, Longitudinal and transverse
cross section showing the reinforcements of slab and tabulated
reinforcement schedule.
b. Girders - Girder detail at support and middle span showing
reinforcement and tendons, Cross section showing the end diaphragm
and intermediate diaphragm with blow up section and tabulated
reinforcement schedule.
c. Side walk - Sidewalk detail showing the reinforcements and the storm
drain pipe and tabulated reinforcement schedule.
d. Bearing Pads

101
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

e. Expansion Joints
f. Approach Slab
g. Piles
h. Abutment plan with half of it showing dimensions and the other half
showing the reinforcements at support and middle span with
complete bar bending diagram and tabulated reinforcement schedule.
i. Wing wall
j. Back Wall
k. Slope Protection
l. Other bridge structures

11. Summary of volumes and quantities

12. Earthwork and structure quantity schedule sheets

13. Quantity Table indicating station, area and volume of cut and fill

14. Quantity Table indicating station / Location, Dimension and volume of slope
protection structures.

15. Summary of quantities: Tabulated summary of quantities showing volume

and dimensions of bridge structures

16. Reinforcement Schedule and Estimated Quantities of Sub- Structure

(Abutment)

17. Reinforcement Schedule and Estimated Quantities of Super Structure (Deck

Slab, Diaphragm and Girder, Railings, Approach Slab)

3.4.4.3 Program of Works (POW)

The Program of Work (POW) presentation generally follows the following outline:

1. General Information
a. Name of Subproject – usually named relative to the location (eg. barangay
name at start and end stations)
b. Location of Subproject – sitio, barangay, municipal, provincial
c. Subproject Category – rehabilitation (for existing) or construction (for
new opening)
d. Project Duration – in calendar days as computed and adjusted to include
Sundays and holidays and estimates for unworkable days due to
inclement weather condition
e. Implementation Mode – by contract
f. Subproject Appropriation per funding source (WB-LP, GOP, LGU)
g. Physical Targets
h. List of Minimum Equipment and Manpower Needed for the Contract
(refer to manpower and equipment utilization schedule). Specify the
minimum number and equipment specifications to include information
whether owned or leased on a 30%-70% allocation, wherein for each

102
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

equipment classification, i.e. heavy equipment (e.g. batching plant, road

grader, road roller, pay loader, backhoe, stake truck) and secondary
equipment (e.g. transit mixer, dump trucks, water truck), a minimum of
30% should be owned and 70% could be leased.
i. Technical Personnel:
Technical personnel requirement for the contractor during project
implementation.
1) Project Manager
✔ Project Manager is required for subprojects with an EPC of 50
million and above.
✔ Project Manager is also required for highly technical
subprojects such as Bridge, Cold Storage Facilities and the like.
2) Project Engineer
✔ Project Engineer is a must requirement for all types of
subproject
✔ Two Project Engineers are required for FMR with a length of
10 kms.
✔ For FMR with bridge subprojects, one (1) Project Engineer
shall be required for the FMR and one (1) Project Engineer for
the Bridge.
3) Geodetic Engineer / Surveyor
✔ Geodetic Engineer / Surveyor shall be required in all FMR and
Bridge subprojects
4) Specialized Engineers
✔ For highly technical Value Chain Rural Infrastructures like cold
storage building / facility, specialized engineers shall be
required to the contractor. (Electrical, Mechanical, Sanitary)
5) Safety Officer
✔ The safety officer shall be mandatory in all subproject as
required by the Department of Labor and Employment (DOLE).

2. Summary of Cost
a. Summary of Item Cost or Direct Cost– summary cost of materials, skilled
and unskilled labor and equipment rental cost
b. Summary of Estimated Project Cost – direct cost plus indirect cost
showing the charging or cost sharing among WB-LP, GOP and LGU.

3. Approval Sheet – the POW will be prepared by the Provincial / Municipal /

City Engineering office, Check and Reviewed by the Provincial / Municipal /
City Engineer, Recommending Approval by the P/M/CPMIU Head and
Approved by the Local Chief Executive.

The detailed estimate presentation format will also follow the following outline per
item of work:

103
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

1. Volume Computation – in excel format, tabulate the dimensions with labels

and indicate formula used in the volume or quantity computation.

2. Derivation of Materials Quantity and Cost– specify specifications and factors

used or direct counting based on the plan. The normal cost for materials
include hardware price or pick-up price and the cost of delivery or hauling to
the project site. Derivation of hauling cost is required using time spotting in
the absence of established delivery/hauling rates.

3. Derivation of Number of Equipment and Cost – use the PRDP Scale Up

provided productivity rates and rental rates. Rental rates will be based on
ACEL 2014 in combination with its Edition 26 Equipment Guide Book or use
locally legislated rental rates if restricted. To be presented are: the bare or
operated rental rates to include cost for fuel, oil and lubricants, operators
and maintenance.

4. Derivation of Labor Cost – use the PRDP Scale Up labor productivity rates
(individual or gang output) and adopt the regional labor wage board rates in
the locality or locally legislated labor rates when restricted.

5. Summary of Item Cost – materials, skilled and unskilled labor, equipment

rental cost. Shown in the summary sheet is the item unit cost.

6. Project Duration:
✔ The project duration is based on the number of days accrued or as
derived based on the number of equipment to do the work for equipment
operated items of works and from the duration as derived from labor
based-equipment supported items of works. The project duration is the
total number of days defined by the critical path in the PERT-CPM / PDM
or bar chart and S-Curve and adjusted to include the accumulated
Sundays and holidays.

POW of proposed bridge and FMR subprojects shall include the following details:

1. POW Summary. POW Format.

2. Derivation of work item unit costs / Detailed Unit Price Analysis (DUPA);
PRDP SU Format.
3. Manpower and equipment utilization schedule;
4. PERT/CPM, Gantt chart or Precedence Diagram Method (PDM);
5. Quality Plan, Inspection and Test Plan and Minimum Materials Testing
Requirement;
6. Overall cash flow and current year monthly cash flow and S-curve (for
subprojects of more than 1-year duration); and
7. Operation and maintenance plan.

Refer to appendix L for the PDM Principles and Application Handbook

104
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Reference shall be made to DPWH Standard Specifications for Highways, Bridges

and Airports (Vol. II) 2015 edition when the general and/or technical specifications
do not expressly provide guidance. In both detailed design and construction, sound
engineering practices shall be observed.

3.4.5 Review, Evaluation and Approval

The detailed FS, DED, POW, O&M plan, Bid Documents and safeguards documents
prepared by the LGU shall be submitted to the DA RPCO for review.

The RPCO then reviews or evaluates the FS report submitted by the LGU. RPCO, PSO
and NPCO through the JTR reviews the submitted documents as per review
threshold with inputs from the conduct field visits or subproject appraisal. A
Subproject Appraisal Report (SPAR) will be prepared upon completion of field visit
and evaluation. The subprojects are then scheduled by the RPCO for deliberation
and approval by the RPAB when all clearances are provided by the review team.

Upon approval by the RPAB, the RPCO, PSO and NPCO will issue the NOL-1
depending on the threshold. RPCO to instruct the LGU to proceed with the
procurement preparation for subprojects approved by the RPAB and duly issued
with NOL-1.

For subprojects that needs WB review, All clearances from the review team shall be
provided to the subproject prior to the WB review

The subproject review, evaluation and approval must be anchored on the viability
indicators set by the Project in the market study, technical study, economic study,
institutional/organizational study, social and environmental study. Details of the
viability indicators are also listed in the eligibility and selection criteria.

3.4.6 Conditions for Fund Release

The processing of fund releases will happen after the SPs had been bid-out with
favorable review of the bid evaluation reports by the RPCO, PSO, NPCO and WB for
those needing NOL.

The required documents are detailed in the General Financial Management

Arrangement for mobilization and progress payment.

All claims with supporting documents shall be prepared by the LGU, signed by the
authorized LGU Officials. The RPCO shall then forward a recommendation to PSO to
allow the Land Bank of the Philippines (LBP) to release payments accordingly.

Release of funds/payments to the contractor will generally be as follows (Fig 3-1):

Figure 3-1 Overview – Release of Funds/Payment to Contractor

105
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3.5 Subproject Execution, Completion and Turnover

3.5.1 Implementation Structure

The implementation set-up shall be as described under Organizational Structure,

Functional Responsibilities and Implementation Arrangements in Part II. The LGU
shall make use of its existing manpower while additional support staff may be hired
and the cost of which shall be fully charge to the account of the LGU.

Overall coordination of the implementation of FMR subprojects shall be the

responsibility of the NPCO at the national level, PSO at the island cluster-wide
project level and the RPCO at the regional level. Overall management at the LGU
level shall be the responsibility of the Provincial/Municipal/City Project
Management and Implementing Unit (P/M/CPMIU).

3.5.2 Implementation Mode

The provisions under General Implementation Arrangement in Part II shall be

observed in the implementation of FMR subprojects.

In support of the national government’s employment generation project, Labor

Based Equipment Supported (LB/ES) methods of construction and maintenance of
rural infrastructure shall be adopted whenever possible. Adoption of such method
shall satisfy the following conditions:

a. LB/ES cost shall not be higher by more than ten per cent (10%) of the
Equipment Based (EB) cost;

b. LB/ES project duration shall not be longer by more than fifty (50) percent of
the EB duration.

c. Employment of local workers shall not unduly impair agricultural

production;

d. Technical quality shall be maintained;

106
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

e. As far as practicable, eighty (80) percent of the labor force shall be taken
from the partner-community. Hence, beneficiaries within the community
shall be given first priority in the selection of labor force;

f. Women shall be given equal opportunity to join the labor force.

Ten (10) days prior to the actual recruitment date, the contractor shall inform
the LGU of its plan to conduct the recruitment of labor force. The PEO, through
the assigned Project Engineer, shall disseminate the information to the
community five (5) days prior to the recruitment date. The PEO Project
Engineer shall be included in the contractor’s recruitment unit. The existing
implementing guidelines on LB/ES method of construction of MRDP shall
continue to be enforced.

3.5.3 Procurement

Procurement for rural road and bridge subprojects shall conform to Republic Act
9184 (the Government Procurement Reform Act) in general. Bidding procedures in
particular shall be in accordance with the Philippine Bidding Documents (as
harmonized with Asian Development Bank, Japan Bank for International
Cooperation, and World Bank).

During the bidding process, the technical drawing plans to be issued to bidders shall
be the hard bound copies of the duly approved and signed plans with No Objection
from the Project (NPCO/PSO/RPCO) depending on the threshold. Sell of electronic
copy of the plan should not be permitted.

Refer to the Operations Manual of the Procurement Unit on the detailed application
of the procurement guidelines in relation to the IBUILD subproject development
cycle.

3.5.4 Supervision and Monitoring

Daily supervision of subproject implementation shall be the responsibility of the

Project Engineer (PE) of the contractor. Second level of project supervision and
monitoring comes from the PEO, MEO or the CEO where the SP is located. He shall
see to it that during the mobilization of the contractor at the project site, the
contractor shall install a subproject signboard indicating the project title, the name
of the implementing and executing agencies, subproject title, physical target,
contract amount, duration of construction, name of contractor and other pertinent
contract details based on COA circular no 2013-004 dated 30 January 2013

The contractor’s PE shall also ensure that all works are done according to approved
plans/drawings and specifications and timelines.

3.5.5 Quality Assurance and Control

107
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The Infrastructure Quality Monitoring and Durability System is in place to guide the
Project how to ensure quality assurance and control for all subprojects. A Quality
Plan (QP), Inspection and Test Plan (ITP) and Minimum Materials Testing
Requirement (MMTR) Plan will be prepared per subproject as the blue print in
undertaking quality assurance and control by the contractor, P/M/CPMIU, RPCO,
PSO and NPCO.

The quality control procedures shall be done according to the schedule of minimum
test requirements as adopted by the DPWH.

Table 3-5. Minimum Test Requirements for Rural Roads and Bridges for
some Selected Items

Items of Work Minimum Test Requirements

Item No. Description

I. EARTHWORKS

Item 100 Clearing and grubbing None

Item 101 Removal of structures and None

obstructions

Item 102 Excavation ✔ Same tests as for items 103, 104 and
105 whichever is applicable.

Item 103 Structure excavation if excavation ✔ For every 1,500 cu.m. or fraction
materials are incorporated into the
thereof:
work.
● 1-G, Grading test

● 1-P, Plasticity test (LL, PL, PI)

● 1-C, Laboratory Compaction test

● For every 150 mm layer in

uncompacted depth:

● 1-D, Field Density Test.

Item 104 Embankment ✔ For every 1,500 cu.m. or fraction

thereof:

✔ Same as in item 103.

✔ For every 500 sq.m. of each layer

108
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

compacted fill or fraction thereof,

at least one group of three (3) in-
situ tests. Layers shall be placed not
exceeding 200 mm in loose
measurement.

Item 105 Subgrade preparation ✔ Same in-situ tests as in item 104.

II. SUBBASE and BASE COURSE

Item 200 Aggregate sub-base course ✔ For every 300 cu.m. or fraction
thereof:

● 1-G, Grading test

● 1-P, Plasticity test (LL,PL, PI)

✔ For every 1,500 cu.m. or fraction

thereof:

● 1-C, Laboratory Compaction test

For every layer of 150 mm of
compacted depth, at least one
group of three (3) in-situ density
tests for each 500 sq.m. or
fraction thereof.

Item 201 Aggregate base course ✔ Same tests as for item 200, plus

● 1-Q, Quality test for grading,

plasticity and abrasion for every
1,500 cu.m. or fraction thereof.

III. SURFACE COURSE

Item 301 Bituminous Prime Coat ✔ Quantity: 1-2 liters/sq.m.

● 1-Q, Quality test for every 40

tons or 200 drums

Item 310 Bituminous Concrete surface A. Aggregates

course, hot-laid
✔ For every 75 cu.m. or fraction
thereof:

● 1-G, Grading test

● 1-P, Plasticity test (LL, PL, PI)

109
Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

For every 1,500 cu.m.

● 1-Q, Quality test for grading,

plasticity, abrasion, stripping
and bulk specific gravity

● 1-F, Fractured surface

B. Bituminous Materials

✔ Quantity: 5 to 8 mass % of total dry

Aggregates

● 1-Q, Quality test for each 40 tons

or fraction thereof.

C. Mix

✔ For every 75 cu.m. or fraction

thereof:

● 1-G, Grading test 1-Ext.,

Extraction

● 1-Sty., Stability test

● 1-C, Laboratory Compaction test

D. Hydrated Lime

✔ For every 100 tons or fraction

thereof:

1-Q, Quality test

E. Mineral filter

✔ For every 75 cu.m. or fraction

thereof:

● 1-G, Grading test

● 1-P Plasticity test (LL, PL, PI)

110
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

F. Compacted pavement

✔ For each full day’s operation:

● D and T (Density and Thickness

tests), at least one (1) but not
more than three (3) samples
shall be taken.

Item 311 PCCP - Portland Cement Concrete A. Cement

Pavement
✔ Quality, 9.00 bags m3 (40 kg/bag)
For every 2000 bags of fraction
thereof:

● 1-Q, Quality Test B.

B. Fine Aggregate

Quantity:

✔ 0.50 m3/m3 concrete (if rounded

coarse aggregate is used)

✔ 0.54 m3/m 3concrete (if regular

coarse aggregate is used)

✔ For every 1500m3 or fraction

thereof:

✔ For a source not yet tested, or failed

in previous quality test:

● 1-Q, Quality Test for; Grading,

Elutriation(Wash), bulk Specific
Gravity, Absorption Mortar
Strength, Soundness, Organic
Impurities, Unit Weight, % Clay
Dumps and Shale.

✔ For a source previously tested and

passed quality test:

● 1-Q. Quality

Test for: Grading

111
Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Elutriation (wash), Bulk specific

Gravity, Absorption Mortar
Strength.

✔ For every 75 cu.m. or fraction

thereof: 1-G, Grading Test.

C. Coarse Aggregate Quantity:

✔ 0.77 cu.m./cu.m. concrete (if

rounded coarse aggregate is used)

✔ 0.68 cu.m/cu.m. concrete (if angular

coarse aggregate is used)

✔ For every 1500 cu.m. or fraction

thereof:

✔ For a source previously tested and

passed quality Test (s):

● 1-Q, Quality Test for: Grading,

Bulk, Specific Gravity,
Absorption, Abrasion,
Soundness and Unit Weight

✔ For a source previously tested and

passed quality test:

● 1-Q. Quality Test for: Grading,

Bulk Specific Gravity, Absorption
and Abrasion

✔ For every 75 cu.m. or fraction

thereof:

● 1-G, Grading Test

D. Water

✔ 1-Certificate from Project Engineer

or 1-Q, Quality Test if source is
questionable.

112
Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

E. Joint Filler

✔ Poured Joint Filler

● 1-Q, Quality Test on each type of

ingredient for each shipment.

✔ Pre-molded Joint Filler

● 1-Q, Quality Test on each

thickness of filler for each
shipment

F. Special Curing Agents

● 1-Q, Quality Test for each

shipment

G. Steel Bars

✔ For every 10,000 kg. or fraction

thereof for each size

● 1-Q, Quality Test for Bending,

tension and Chemical Analysis

H. Concrete

✔ Flexural Strength Test on Concrete

Beam Sample 1 set consisting of 3
beam samples shall represent a 330
sq.m of pavement, 230 mm depth of
fraction thereof placed each day.
Volume of concrete not more than
75 cu.m.

I. Completed Pavement

✔ Thickness determination by
concrete core drilling a lot basis
Five (5) holes per km. per lane five
(5) holes per 500 m when 2 lanes
are poured concurrently.

113
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

IV. STRUCTURES

Item 404 Reinforcing steel Certification from supplier will suffice

Item 405 Structural concrete ✔ For every 75 cu.m. or fraction

(for major structures only: thereof of fine coarse aggregates:
concrete pavement, bridge super-
structure and sub- structure) ● 1-G, Grading test

✔ For every 75 cu.m. or fraction

thereof of concrete mix:

✔ Compressive strength test on 1-set

of three (3) concrete cylinder
samples.

Monthly reports on materials quality control shall be accomplished and submitted

according to the forms provided with geotag photos confirming the actual test.

3.5.6 Time Control

The project duration stated in the contract is understood to be in calendar days. To

determine whether the contract is incurring liquidated damages is simply deducting
the target completion date or revised completion date (from approved suspension
orders) from the official start date and the result should be equal or lesser than the
approved contract duration to be on track else the delay in days are subjected to
liquidated damages. Therefore, at any given point, the PE must be able to manage
the work by instituting catch-up plans by way of manpower and equipment
augmentation, overtime, simultaneous work items scheduling and revisions of
construction methodology.

However, during the implementation within the contract period, a negative slippage
beyond 15% is ground for contract termination which is simply deducting the actual
physical percentage accomplishment from the plan physical percentage
accomplishment. A negative sign connotes negative slippage.

A “Three Strike” rule for unsatisfactory performance under the project should be
strictly implemented. The first warning should be given by the P/M/CPMIU when
there is a 5% negative slippage, and this should require the submission of a catch up
plan (there should be only one catch up plan, unless there are uncontrolled
circumstances) to ensure completion of the subproject on time. Subsequent
warnings will be issued if the contractor fails to comply with the catch up plan. If a
10% slippage occurs, the P/M/CPMIU will be reminded that PRDP SU funding
support will be withdrawn if slippage exceeds 15%. If three warnings have been
issued (regardless of percentage between 5 and 15) and 15% slippage occurs, the
P/M/CPMIU will be advised that the process of withdrawal of PRDP SU funding for
the subproject has been triggered.
114
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Monthly physical progress report shall be accomplished by the M/C/Provincial

Engineer and submitted for evaluation and basis of actions to be undertaken by the
Project.

3.5.7 Cost Control

The premise of the budget estimate as attached to the final FS is an outcome of

detailed engineering survey and detailed engineering design and therefore the
estimated project cost for the contract is deemed not largely affected by variation
orders.

Additional costs arising from variation or change orders above the contract project
cost shall be borne by the proponent LGUs. It may be cost shared if the variation
order is initiated by the Project due to the implementation of emerging government
policies and design adjustments due to current site conditions and will be
dependent on the availability of funds from the project. Any additional cost as a
result of the bidding will also be cost shared. Any change in scope or cost, it will be
subject for concurrence or issuance of no objection letter by the RPCO/PSO/NPCO
based on the review threshold of each office in the issuance of No Objection Letter
(NOL).

3.5.8 Monitoring, Evaluation and Reporting

Monitoring, evaluation and reporting of the progress of rural roads and bridges
construction will be the main responsibility of the respective LGU.

Periodic reports shall include but not limited to the following:

1. Narrative report;

2. Subproject site inspection report;

3. Monthly physical progress report (S-curve);

4. Monthly financial status report;

5. Monthly weather report;

6. Institutional development report;

7. Subproject status report.

The LGU shall furnish copies of reports to the RPCO, who shall conduct site visits
from time to time.

In addition, the DA and DOF (together with World Bank representatives) shall at any
time send supervision missions to the municipality/city/province to monitor and
evaluate the progress and status of the implementation and management of the

115
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

subproject. The findings of these supervision missions shall be contained in an Aide

Memoire which will be forwarded to the DA.

3.5.9 Progress Billing, Completion and Turnover

The contractor shall be allowed to do monthly progress billings in the course of the
construction without a ceiling on the percentage of accomplishment.

His request for payment shall include:

1. the Statement of Work Accomplishment (SWA) – i.e., indicated are the

itemized activities together with the corresponding percentage of work
accomplished for each and the equivalent amount in Philippine pesos. The
SWA shall be supported by the detailed volume computation, and quality
control test results. The JIT shall validate the correct accomplishment duly
covered with materials and field test results; and

2. geo-tagged progress pictures taken before, during and after construction of

specific segments of civil works representing the billed quantity.

3. other financial documents detailed in the FMS manual.

For Progress Billing:

The Joint Inspectorate Team (JIT) shall inspect and validate to the correctness of the
portions of work being claimed to have been accomplished in the progress billing.
The JIT is composed of the LGU Engineer, Head of the PPMIU, RPCO Engineers, GGU
and Safeguard Officer or Specialist. CSO representatives are invited to join the
inspection.

For Final Billing at 100% Completion:

A completion report shall be prepared by the PEO/MEO/CEO immediately upon

receipt of notice from the contractor that the work has been fully completed. Aside
from the other standard documents, the notice shall have the following attachments:

1. a brief description of the components and specifications of the completed

subproject;

2. geo-tagged pictures taken before, during and after construction of specific

segments of civil works. The pictures shall include permanent landmarks in
the background of the subproject such as houses, buildings and big trees. The
same photo angle for the before, during and after implementation of the
portions of the work.

3. The final SWA shall be validated by both the LGU Inspectorate Team as well
as the JIT of the Project.

116
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The composition of the LGU Inspectorate Team will follow the existing structure or
set-up per LGU.

The general flow of subproject completion and turnover shall be as follows:

1. Contractor notifies the P/M/CEO of contract completion;

2. P/M/CEO conducts field inspection, evaluates completed subproject and

prepares a completion report with recommendations to the Inspectorate
team;

3. The inspection teams conduct site inspection, prepare the final inspection
report;

Note: The final completion report shall include a certificate of completion from the
P/M/CEO, concurred by the Local Chief Executive, that the subproject has been
completed in accordance with approved plans/drawings and specifications.

Any deviation shall be reflected on the “as-built” drawings which shall be prepared
and attached accordingly for submission to RPCO and PSO. If there are no
deviations from the approved drawings and specifications, the originals of the
approved drawings shall be reproduced and signed by the Contractor and stamped
with “ASBUILT” markings.

1. The contractor turn-over possession of site to the LGU and LGU accepts
possession of the site and thereafter starts the proper operation maintenance
of the road. However, the final acceptance takes effect after the one year
defects liability period;

In turn, a subproject turn-over certificate from DA to the LGU will be duly signed by
the Local Chief Executive and the DA RFU-RED.

Partial turn-over of completed sections of FMR sub-projects under implementation

is allowed as it is advantageous to the contracting parties. The contractor will be
relieved earlier of its obligation under the warranty period if possession of site of
the completed section of the FMR is turned-over earlier to the LGU. Likewise, the
LGU as the contracting party together with the end users will have full access to the
turned over section of the FMR thereby accelerating the flow of immediate benefits
to all users of the FMR completed segment.
However, partial turnover of completed section of the road is applicable if it can
satisfy the following conditions:

1. The length of the FMR is above 15 kilometers. (FMR with length of less than
15 km. but comprises of road segment/sections A….nth, partial turn-over could
be considered subject to justification by the proponent);
2. The total FMR length is composed of road segments with different entrance
and exit;
3. The road segment can be monitored separately in terms of item quantities so
that the overall quantities could not be exceeded;

117
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

4. The quantification of each segment under item 3 could be sanctioned

through a supplemental agreement or approval of the contracting parties of
the segment’s quantification and with prior consent from the local resident
auditor of the scheme to facilitate final inspection and technical audit once
completed;
5. The provisions of the general conditions of the contract on completion,
turnover and warranty period shall apply to the completed road segment or
section;
6. The Project policy on progress payment at final completion of the whole
contract remains.
7. The defects liability period takes effect upon issuance of the certificate of
completion by the LGU and the certificate of final acceptance to be issued
after one year and after rectification of the contractor of any identified and
issued defects by the LGU.

3.6 Subproject Operation and Maintenance

It is the responsibility of the LGU to maintain the SP for a period of at least 10 years.
The LGUs’ track record in maintaining their previous DA financed roads will be a
basis for giving them more investments. Conversely, further investments in those
LGUs that have unsatisfactory performance in the operation and maintenance of
their completed subprojects shall be put on hold until they draw up and implement
a satisfactory operation and maintenance plan.

The same policy will hold true for all participating LGUs in the ensuing years. Any
LGU that has a previously failed/severe operation and maintenance rating of its
rehabilitated or constructed road shall not be eligible for further investments from
PRDP SU until it properly maintains such road.

Compliance with the O&M plan shall be regularly checked through annual O&M
audit to be conducted by the ROMAT. To assist LGUs comply with this commitment,
the project will provide technical training assistance in the routine maintenance of
rural roads.

Labor based-equipment supported (LB/ES) method of maintenance shall be

recommended for the completed facilities if viable. The LGU shall make use of the
community as contractor adopting the “length-man system” where maintenance
work is carried out by the people living along the roads to be maintained.

Inspection visits on maintenance work shall be made by the PEO on a regular basis
and payments shall be made promptly on the dates specified in the agreement.

Details of the operation, maintenance and road safety of access road is contained in
the IBUILD Operation and Maintenance Manual.

3.7 “RASIX” for Rural Roads

As a quick reference called “RASIX” (Annex 41) defines who does what, or who is
RESPONSIBLE, who APPROVES, who SUPPORTS, and who should be INFORMED

118
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

of actions taken – along the subproject development stages from SP

identification, preparation, implementation until operation and maintenance.

4.0 Irrigation System

4.1 Scope

The irrigation sub-component shall support the following:

1. Construction / Rehabilitation / improvement of existing communal irrigation

systems (CIS);

2. Construction / Rehabilitation and construction of small water impounding

project (SWIP)

3. Small scale irrigation project (SSIP) such as:

a. shallow tube wells,
b. small (river) water impounding project
c. diversion dam
d. drip irrigation system
e. Solar powered irrigation system

119
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

f. Ram pump irrigation system

g. Spring development irrigation system

4. Construction of solar driers, warehouse-cum-irrigators’ association office,

and access roads to and within the irrigable area, which may be incorporated
in the design of (1) and (2) above as the designers see fit. The technical
considerations for any appended access roads shall follow those of Rural
Roads, Part III of this manual, and for any appended warehouse, those of
“Value Chain Rural Infrastructure,” Part VI of this manual.

4.2 Financing Scheme

Cost sharing scheme for all subproject type:

The cost sharing between the National Government (NG) and the LGUs shall be as
follows:

✔ 90 % - to be financed by the National Government in the form of grant

(80% WB Loan Proceeds and 10% GOP) based on the Estimated Project
Cost (EPC) for subproject to be approved (NOL 1) in the year 2023-2024;

✔ Calibrated equity contribution to be financed by the National Government

in the form of grant based on the Estimated Project Cost (EPC) for
subproject to be approved (NOL 1) in the year 2025-2028;

✔ 10% - equity contribution of the LGU in cash based on the Estimated

Project Cost (EPC) for subprojects to be approved in the year 2023-2024;

✔ Calibrated equity contribution of the LGU in cash based on the Estimated

Project Cost (EPC) for subproject to be approved (NOL 1) in the year
2025-2028. LGUs calibrated equity contribution will be based from the
LGUs income classification;

Refer to Table 3-1 for the Cost Sharing scheme for all IBUILD subproject type

The cost sharing scheme is the maximum limit LP and GOP. The percentage of LP
and GOP will be lowered when the variation order is fully shouldered by the LGU.

The estimated project cost (EPC) for PRDP Scale Up will follow the provisions of
DPWH D.O. No. 197 Series of 2016 (Revised Guidelines in the Preparation of
Approved Budget for the Contract (ABC) except for the VAT component. The project
will use 12% VAT as stated at the Regulations No. 13-2018, the Regulations
Implementing the Value-Added Tax Provisions under the Republic Act (RA) No.
10963, or the “Tax Reform for Acceleration and Inclusion (TRAIN),” Further
Amending Revenue Regulations (RR) No. 16-2005 (Consolidated Value-Added Tax
Regulations of 2005), as Amended.

120
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

For Irrigation, all item of work to be used in preparing the EPC shall conform to the
DPWH Standard Specifications for Highways and Bridges, revised 2015, Volume 2,
Standard Specifications for Public Works Vol 3, 2019, latest edition of the DPWH
Blue Book, NIA Technical Specifications and approved Special Specifications for the
Project.

The Project shall adopt the DPWH DO No. 136 series of 2022 “Revised Construction
Safety Guidelines for the Implementation of Infrastructure Projects During the
COVID-19 Public Health Crisis, Superseding Department Order Nos. 39 Series of
2020 and 30, Series of 2021 and future amendments thereto to prevent the spread
of Covid-19. The cost required for additional PPEs, thermometer, disinfectants,
footbath, washing stations, vitamins etc. shall be included in the POW in addition to
items not included in DOLE D.O. 13.

EPC Computation includes the following: (EPC = DC + IDC)

a. Direct Cost (DC):

4. Materials Cost [cost at source (includes local taxes, processing, crushing,

stockpiling, loading, royalties, construction and/or maintenance of haul
roads), expenses for hauling, handling, storage, and allowances for waste
and losses (not to exceed 5% of material requirement)]

5. Labor Cost (salaries and wages, as authorized by DOLE regional wage

board or locally legislated rates).

6. Equipment Expenses (rental of equipment based on prevailing 2014

ACEL rates or locally legislated rental rates).

b. Indirect Cost (IDC):

4. Overhead, Contingencies and Miscellaneous (OCM): 8-15% of DC

✔ Overhead Expenses, 7-11% [engineering and administrative
supervision, transportation allowances, office expenses, CARI, and
financing cost (bid security, performance security and warranty)].
✔ Contingencies, 0.5-3% [expenses for meetings, coordination with
other stake holders, stages during ground breaking, inauguration
ceremonies, other unforeseen events and billboards (excluding
Project Billboard which is a pay item under the General
Requirement)]
✔ Miscellaneous Expenses, 0.5-1% (laboratory tests for quality
control and plan preparation)

5. Contractor’s Profit (CP): 8-10% of DC

6. VAT Component: 12% of (DC+OCM+CP)

121
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Refer to Table 3-2 for the Indirect Cost Factors for Subprojects

The following items shall not be subjected to OCM and profit mark-up:
3. Mobilization and Demobilization
4. Provision of Service Vehicle

The following non-civil work items shall not be subjected to OCM mark-up:
9. Field /Laboratory Office & Living Quarters (Rental Basis)
10. Furnishing of Furniture, Laboratory Equipment, Survey Equipment and
Consumables
11. Assistance to Engineers
12. Photographs
13. Health and Safety
14. Traffic Management
15. Environmental Compliance
16. Communication Equipment, etc.

In all cases, estimates for special items of work (SPL) should be accompanied with
plans and specifications, methods of construction, measurements and basis of
payments duly approved by the head of the implementing office. Annex 46 describes
the technical specifications for commonly used SPL items.

4.3 Selection Criteria

In addition to the selection criteria for all types of subprojects enumerated under
Identification and Prioritization Criteria in Part II, all proposed irrigation
subprojects shall meet the following selection criteria:

1. The LGU and intended beneficiaries / Irrigators Association (IA) have

concurred with the funding of irrigation subproject under PRDP Scale Up.

2. The proposed subproject is not funded by other government agencies or

NGOs, etc.

3. If 20% of land covered by the subproject is still eligible for redistribution

under the land reform project, the emancipation patents should have been
issued.

4. The subproject serves at least 20 farmers.

5. The average farm size in the subproject shall not exceed three (3) hectares.

6. The expected cropping intensity is 180 percent for all types of irrigation
services.

7. There are no problems with salinity, mine tailings and other pollutants.

122
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

8. The service area has soil and land slopes suitable for the proposed irrigated
crops.

9. For existing CIS under NIA, the NIA does not pose any objection to the
proposed rehabilitation works.

10. The indicative unit cost of irrigation system is be PhP 300,000/ha

11. Proposed subproject shall generate an Economic Internal Rate of Return

(EIRR) of at least 10% with a positive Economic Net Present Value (ENPV)
and a Benefit-Cost Ratio (BCR) greater than 1

12. There are no problems with right-of-way (ROW) acquisitions.

13. For new construction: the source of water shall meet the quality standard for
irrigation, i.e., minimum silt content and absence of water-borne diseases
(schistosomiasis, malaria, etc.); damage/disturbance to ecologically
significant flora and fauna shall be minimal; and intake point or diversion
shall be outside protected areas or critical watersheds.

14. Where new construction encroaches on areas with IPs/lands with Ancestral
Domain Claims, the free and prior informed consultation or free and prior
informed consent (FPIC) respectively of the IPs must be obtained through the
NCIP.

15. The SSIP description, proposed beneficiary indicative unit cost of SSIP
construction and rehabilitation per hectare per type of project:

a. Spring Development - consist of concrete storage tank or intake structure

and polyethylene (PE) pipes or concrete canal for distribution by gravity.
✔ Coverage area – With a minimum of 1.0-hectare production area

✔ Qualified beneficiaries /Proponent – Group of 3-5 farmers with a

minimum of 3.0-hectare production area
✔ Indicative cost: - Development cost of Php. 250,000 per ha of
service area
b. Alternative Energy Prime Movers for Pump Irrigation Systems for High
Value crops - consist of pumps and prime movers using renewable energy
sources, storage tanks and piped distribution systems. In these systems,
the water sources area already developed (e.g. river, lake, and wells) that
require energy to lift water to the point of use. These systems include
hydraulic ram pump and solar pump.
✔ Coverage area – With a minimum of 3.0-hectare production area
for high value crops and with existing dependable water source
with potential water source for development
✔ Qualified beneficiaries /Proponent – At least 3 farmers with
minimum of 3.0-hectares irrigable area

123
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Indicative cost: Development cost of Php 220,000 per hectare for

hydraulic ram pump irrigation
✔ Indicative cost: Development cost of Php 350,000 per hectare for
solar pump irrigation system

4.4 Procedures for Investigation of Viability of Schemes

1. In case of CIS rehabilitation, the IA and NIA submit a resolution to the
LGU requesting for rehabilitation assistance under the project; for new
scheme, resolution shall be submitted by the beneficiary farmer’s group;

2. The LGU makes a reconnaissance of the proposal subproject, then carries

out preliminary studies;

3. The LGU informs the IA of the results of investigation and includes the
qualified schemes in its list of subprojects under the irrigation sub-
component.

4.5 Subproject Appraisal and Approval

4.5.1 Eligibility Criteria

One pre-requisite for the LGUs to be eligible for participation under the project shall
be a completed overall PCIP/CCIP.

Based on the above document, the RPCO issues an invitation (request for proposal)
to the eligible LGUs to submit their list of priority subprojects for project assistance.
The Local Chief Executive shall prepare a Letter of Intent (LOI) for financing for
irrigation in their respective provinces and municipalities. The LOI and list of
priority subprojects shall be accompanied by the following documents:

1. A color-coded provincial irrigation development map in google earth

reflecting the location of all existing, proposed and potential irrigable
areas including the geo-tagged proposed work items and the boundary
limits of the irrigable area of the SP.

2. A brief description of each proposed scheme using NIA CIP Forms.

3. NIA/IA, farmers’ group resolution to the LGU requesting assistance;

4. Provincial Sangguniang Panlalawigan or Municipal/City Sangguniang

Bayan resolution expressing intent to participate in the project and
commitment to finance the required equity contribution (indicating the
amount) in cash and to provide a specified cost of maintenance and
repair after completion of the SP;

124
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

5. A certification from the provincial/municipal treasurer on the availability

of funds for the specified amount of equity contribution and routine
maintenance;

6. Compliance checklist of LGU eligibility and selection criteria;

The first tier LGU eligibility assessment as regards to technical capacity,
financial capacity and Operation and Maintenance commitment of
previously implemented special projects of DA like PRDP, InFRES, MRDP
and CHARMP must be favorable.

4.5.2 Subproject Validation

Upon receipt of the above documents, the RPCO shall review and evaluate the merits
of the proposed subprojects and conduct field validation. Technical assistance from
the PSO/NPCO may be sought for complex subprojects. A final validation report
shall be prepared by the RPCO. Attached to the validation report is a subproject
prescreening checklist such as information on the unit cost parameters, EIRR, B/C
ratio, IP and subproject environmental categorization concerns and validation of
LGU capacity.

4.5.3 Feasibility Study (FS) Preparation

Upon receipt of approval from the RPCO, the LGU prepares feasibility studies
according to standards and guidelines currently used by the NIA and BSWM. In the
event that the LGU is not capable to prepare the FS, it may contract the NIA to do the
same or hire a sufficiently experienced service provider to do the same. The
expenses for such FS shall be to the account of the LGU and shall not be counted as
part of its cash equity to the subproject.

The FS shall cover, among others, the following:

1. Brief profile of the subproject area including land slopes, soils and land
holdings;

2. Hydrologic study, including monthly average discharge at dam site for at

least one (1) full year, if available;

3. Color-coded topographic survey and general layout of subproject area

reflecting among others the following:

✔ contour lines;

✔ existing land use for different crops in the service area and extent
to which area is currently irrigated from different sources;

125
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ service area to be restored and expansion area to be generated

under the project (in case of existing irrigation);

✔ new area to be generated if scheme is new construction;

✔ existing and proposed irrigation structures and facilities; and

✔ existing and proposed service roads along the canals, if any.

✔ Other farm facilities such as solar dryers, IA buildings, warehouses

and mills.

4. feasibility-level engineering design plans;

5. quantities of work items and cost estimates;

6. implementation schedules;

7. confirmation by IA and LGU that the farmers losing land from new
construction have agreed to voluntarily donate or sell their lands;

8. financial and economic analysis;

9. proposed implementation arrangement and work packaging by contract;

10. IA/farmers’ group and LGU’s concurrence with the result of the FS; and

11. other data and analyses as may reasonably be required by RPCO and/or
PSO/NPCO.

Refer to annex 3 for the Feasibility Study Outline for Irrigation Facilities

Additional attachments to the FS report shall include the following documents:

a. Environmental and Social Management Plan (ESMP);

b. primary survey on Displaced Persons and IPs;

c. clearance certificate on right-of-way and damages, and FPIC if needed;

and

d. other clearances and permits as required by concerned regulatory

agencies.

The FS report shall be internally reviewed and approved by the P/M/CPMIU.

4.5.4 Subproject Detailed Engineering Design Preparation

126
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The feasibility-level engineering design is part of the attachment to the FS report. In

the event that the LGU is not capable to undertake the irrigation design and drawing
preparations, it may contract the NIA or hire a sufficiently experienced service
provider to do the same.
After the FS has shown that the proposed subproject is feasible then the detailed
engineering design shall be prepared. The expenses for such shall be to the account
of the LGU but shall not be counted in favor of its cash equity to the subproject.

The preparation of detailed engineering design shall adhere to the current

standards, specifications, guidelines and procedures adopted by the NIA. The
following discussions are indicative guidelines in the preparation of detailed
engineering design.

4.5.4.1 Field Surveys

1. Topographic survey of irrigable area indicating the limits, physical

features and main and lateral alignment;

2. Main and lateral canal alignment, plan and profile indicating the exact
location/ stationing of existing structures, natural waterways and other
physical features traversed by the canal alignment;

3. Cross-sections at 20-meter interval along the proposed canals for

construction or rehabilitation; The cross section drawings should be
drawn starting from the upper left corner of the drawing sheet going
down until the sheet column is full and re-start again at the upper top
going down and so forth.
4.
5. Topographic survey of dam site to extend 200 meters upstream and
downstream of the dam axis and at least 100 meters to the left and right
of the river banks;

6. Longitudinal river profile, cross-section at dam site and cross-section of

river, creek or waterway at 200 meters upstream and downstream of
dam site indicating the minimum, and normal water levels and maximum
flood levels.

7. For the spring development project, the reconnaissance and assessment

survey of the proposed area is to be conducted and shall cover the
following:
a. Estimated plantation water requirement and calculation of storage
tank size to be established
b. Presence of spring with continuous flow of discharge
c. Amount of flow discharge
d. Elevation of difference and distance of spring as source of water to
the proposed location of tank

127
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

8. For the ram pump, the design parameters to be gathered from field
surveys are the following:
a. Proposed location of the ram pump must be closed to free flowing
water with sustainable water source all year round
b. Elevation (Fall vs. Lift), for every one meter drop from the source
to the ram pump, the ram pump can pump water up to 30 times
c. Service area must be located uphill or at least higher than the
water source wherein the storage tank will be positioned

9. The data for the proposed site for solar power irrigation project that must
be gathered by survey are the following:
a. Site height allowance from the ground to avoid damage of the
solar panel
b. Location must be an open area away from any obstruction that
may shade the panels from sunlight
c. Location must have solar radiation/irradiance of not less than
average of 1,000 W/m2, temperature of not less than 25oC and air
mass of not less 1.5 for the solar panel to operate
d. Proposed site must have stable discharge of water source such as
wells, lakes, rivers and spring

10. Other survey data as may be required by the designer.

4.5.4.2 Detailed Design, Specifications

The following Geometrical and Design Specifications and Scheme shall be adopted
for the Project:

Table 4-1 Geometrical and Design Specifications for Irrigation Schemes

The field surveys to be conducted shall cover the following:

Component Geometrical and Design Specifications and
Schemes

a. Diversion works Run-of-river type adopting ogee or trapezoidal

sections or check gate or teruvian-type intake or other
schemes as may be deemed appropriate by the design
engineer.

b. Main canals, laterals Trapezoidal section with side slopes (SS) of

and sub-laterals
1-1/2:1 for most earth canals and 1:1 or 1:0
(rectangular) for lined canals;

Earth canals shall have a permissible velocity of not

less than 0.30 m/sec. and not more than 1.00 m/sec.

Canal freeboard shall be 40% of designed water depth

but not less than 0.3 m;

Canal top width shall be as follows:

128
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ without operating equipment:

canal top width = 0.60 m;

✔ with operating equipment:

canal top width = 6.00 m (main canal);

canal top width = 4.00 m (lateral/sub- lateral)

Note: Canal concrete lining shall be justified by

measurement of water losses or other justifiable
reasons.

c. Structures

✔ Parshall flume ✔ unit located at 50 meters downstream of

diversion works along the main canal

✔ As needed
✔ Water level
control

✔ Distribution ✔ As needed
control

✔ Thresher
✔ 1 unit for every 500 meters in the absence of
crossing
road crossings along main canals, laterals and
sub-laterals

d. Road and drainage ✔ As dictated by actual canal alignment and

crossings
terrain

Component/Structure Geometrical and Design Specifications and Schemes

1. Spring development

- Storage Tank Reinforced concrete water storage tank, Capacity – 4

cubic meters , Discharge – 1.5 liters per second, 1.7m x
1.7m x 1.5m (inside dimension)

129
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

- Spring box Reinforced concrete spring box - 1m x 1m x 2m

- Delivery pipe from GI pipes 2” diameter, Sched.40 180 lm.

spring box to storage
tank

-Distribution pipe PE pipe 1” diameter, SDR 17, 60 lm.

from storage tank to
service area

2. Ram Pump

- Intake Box Reinforced concrete - 0.87 cu. m.

- Ram Pump Box Reinforced concrete - 0.87 cu. m.

- Drive pipe and 2" dia. GI pipes Sched.40 – 42 lm.

stand pipe

- Ram Pump and 1" Hydraulic Ram pump (fabricated locally)

fittings for drive
pipe
- Delivery line from GI pipes Sched.40 (3/4") – 250 lm.
pump to tank

- Ferrocement 9,000 liters

reservoir
- Distribution line to 300 lm.
consumers
- Communal faucets 3 taps

3. Solar Powered Refer to BAFE Technical Bulletin DA MO 52, Series of

Irrigation Project 2020

- Water requirement Average

- Water source Subsurface - wells, Surface – pond, stream or spring

- System layout Elevation and location of water source, pump, solar

panels, storage tanks, points of use (farm), and pipeline
route

- Water storage or Sized to store at least a three-day water supply, elevated

tank platform or stand is required to provide adequate gravity
induced pressure for the water delivery system,

130
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

- Solar Insolation Panels should be south facing with no significant shading

and PV Panel in their vicinity in order to achieve full sun exposure solar
Location array should be placed as close to the pump as possible to
minimize the electric wire length (and thus any energy
loss), as well as installation costs.

- Design Flow Rate The design flow rate for the pump is calculated by
for the Pump dividing the daily water needs of the operation by the
number of peak sun hours per day

- Total Dynamic The TDH for a pump is the sum of the vertical lift,
Head (TDH) for pressure head, and friction loss
the Pump

- Pump Selection The pump should be selected using pump performance

and Associated curves to ensure that the pump can deliver the required
Power flow against the known TDH
Requirement

- PV Array Standard details for a PV panel embedded post mount that

Mounting and meets the design criteria.
Foundation
Requirements

Engineering drawings and POW of proposed irrigation subprojects shall include the
following details:

1. Color-coded topographic survey and general layout of the scheme and

area reflecting among others, the following:

✔ Irrigable area limits, physical features and main canal, lateral and sub
lateral alignment;

✔ Irrigation network showing layout of terminal facilities and service

areas;

✔ Existing service area currently irrigated if subproject is CIS

rehabilitation;

✔ Additional new area to be generated if subprojects include expansion

area;

131
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Existing and proposed irrigation facilities (for both new and

rehabilitation);

✔ Existing and proposed road, if any.

✔ Other farm facilities such as solar dryers, warehouses, IA buildings

and milling stations.

2. For diversion works:

✔ Plan, sections and details of proposed diversion dam;

✔ Cross-section of dam site superimposed on diversion works upstream

elevation;

✔ Details of diversion head works and left and right abutment works;

✔ Downstream and upstream protection works;

✔ Other construction details.

3. For main canal, lateral and sub-laterals:

✔ Canal alignment plan and profile indicating the proposed top berm,
water surface and canal bottom gradient and its slope and location
and type of existing and proposed structures;

✔ Canal hydraulic elements;

✔ Cross-section at 20-meter intervals of the proposed canal for

construction or rehabilitation, superimposing design canal sections.

4. For canal structures:

✔ Individual (where typical drawings would not be sufficient) and

specific plans and details of proposed irrigation structures indicating
their exact stationing (i.e., road and thresher crossings, flumes,
drainage crossings, canal water level control and distribution
structures);

✔ Upstream and downstream canal hydraulic elements of connecting

irrigation structures.

132
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

5. For spring development:

✔ Technical description of the watershed using GPS and GPS reading of
the specific location of the project;

✔ Coordination made with the stakeholders;

✔ DED including the bills of materials and cost estimates of the project;

✔ Geo-tagged pictures and plotted GIS map of the watershed where the
project will be established;

6. For ram pump:

✔ Difference in height between the water source and pump site (vertical
fall),

✔ Difference in height between the pump and point of storage or use;

✔ Quantity of flow available from the source (Q)

✔ Length of pipe from source to pump site (drain pipe)

✔ Quantity of water required

✔ Length of pipe from storage site to the user (delivery pipe)

7. For solar power irrigation:

✔ Solar generator – solar panel electrical power

✔ Controller and motor- maximum MPPT (multiple point power

tracker)

✔ Mounting and solar tracker system fixed tilt angle with north and
south and east and west orientation and solar tracker
✔ Water pump- centrifugal and helical motor pump,

✔ Water pump installation – submersible or surface

✔ Water storage tank - simple open dug reservoir, concrete tank, plastic
tank, elevated metal tank

133
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Monitoring- water flow meter, pressure gauge at the filter outlet,

pressure gauge at the filter inlet

8. Other details:

✔ General specifications and other construction details;

✔ Summary of volumes and quantities;

✔ Earthworks and structure quantities computation sheets;

✔ Summary POW;

✔ Derivation of work item unit costs

Reference shall be made to NIA and DPWH Standard Specifications for Public Works
Structures, volume 2 - 2015 edition, the latest 2019 edition Volume III, Buildings,
Ports and Harbors, Flood Control and Drainage Structures and Water Supply
Systems and when the general and/or technical specifications do not expressly
provide guidance. In both detailed design and construction, sound engineering
practices shall be observed.

During bidding, the technical drawing plans to be sold to bidders shall be the blue
print / white print duly signed, approved and issued with no objection from the
project (NPCO/PSO/RPCO). Sell of electronic copy of the plan should not be
permitted.

4.5.4.3 Program of Works (POW)

The Program of Work (POW) presentation generally follows the following outline:

1. General Information
a. Name of Subproject – usually named relative to the location (eg. barangay
name at start and end stations)
b. Location of Subproject – sitio, barangay, municipal, provincial
c. Subproject Category – rehabilitation (for existing) or construction (for
d.
e.
f. new opening)
g. Project Duration – in calendar days as computed and adjusted to include
Sundays and holidays and estimates for unworkable days due to
inclement weather condition
h. Implementation Mode – by contract

134
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

i. Subproject Appropriation per funding source (WB-LP, GOP, LGU)

j. Physical Targets
k. List of Minimum Equipment and Manpower Needed for the Contract
(refer to manpower and equipment utilization schedule). Specify the
minimum number and equipment specifications to include information
whether owned or leased on a 30%-70% allocation, wherein for each
equipment classification, i.e. heavy equipment (e.g. batching plant, road
grader, road roller, pay loader, back hoe, stake truck) and secondary
equipment (e.g. transit mixer, dump trucks, water truck), a minimum of
30% should be owned and 70% could be leased.
l. Technical Personnel:
Technical personnel requirement for the contractor during project
implementation.
1) Project Manager
✔ Project Manager is required for subprojects with an EPC of 50
million and above.
2) Project Engineer
✔ Project Engineer is a must requirement for all types of
subproject.
3) Safety Officer
✔ The safety officer shall be mandatory in all subproject as
required by Department of Labor and Employment (DOLE).

2. Summary of Cost
a. Summary of Item Cost or Direct Cost– summary cost of materials, skilled
and unskilled labor and equipment rental cost
b. Summary of Estimated Project Cost – direct cost plus indirect cost
showing the charging or cost sharing among WB-LP, GOP and LGU.

3. Approval Sheet – the POW will be prepared by the Provincial / Municipal /

City Engineering office, Check and Reviewed by the Provincial / Municipal /
City Engineer, Recommending Approval by the P/M/CPMIU Head and
Approved by the Local Chief Executive.

The detailed estimate presentation format will also follow the following outline per
item of work:

1. Volume Computation – in excel format, tabulate the dimensions with labels

and indicate formula used in the volume or quantity computation.

2. Derivation of Materials Quantity and Cost– specify specifications and factors

used or direct counting based on the plan. The normal cost for materials
include hardware price or pick-up price and the cost of delivery or hauling to
the project site. Derivation of hauling cost is required using time spotting in
the absence of established delivery/hauling rates.

135
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3. Derivation of Number of Equipment and Cost – use the PRDP Scale Up

provided productivity rates and rental rates. Rental rates will be based on
ACEL 2014 in combination with its edition 26 equipment guidebook or use
locally legislated rental rates if restricted. To be presented are: the bare or
operated rental rates to include cost for fuel, oil and lubricants, operators
and maintenance.

4. Derivation of Labor Cost – use the PRDP Scale Up labor productivity rates
(individual or gang output) and adopt the regional labor wage board rates in
the locality or locally legislated labor rates when restricted.

5. Summary of Item Cost – materials, skilled and unskilled labor, equipment

rental cost. Shown in the summary sheet is the item unit cost.

6. Project Duration:
✔ The project duration is based on the number of days accrued or as
derived based on the number of equipment to do the work for equipment
operated items of works and from the duration as derived from labor
based-equipment supported items of works. The project duration is the
total number of days defined by the critical path in the PERT-CPM / PDM
or bar chart and S-Curve and adjusted to include the accumulated
Sundays, holidays and target / pre-determined unworkable days due to
inclement weather condition.
✔ Pre-determined unworkable days due to inclement weather condition is
the number of days projected to be unworkable due to inclement weather
condition based on monthly historical experiences of the Proponent LGUs
on the frequency of typhoons and other local weather disturbances
within the planned implementation period. This means that the exposure
of its SP from inclement weather condition varies from LGU to LGU and
region to region and this has to be determined monthly.

The Program of Work (POW) presentation generally follows the outline of POW in
Part 2 and 3. NIA items of works should be used in the preparation of the DUPA
whenever possible.

4.5.5 Review, Evaluation and Approval

The detailed FS, DED, POW, O&M plan, Bid Documents and safeguards documents
prepared by the LGU shall be submitted to the DA RPCO for review.

The RPCO then reviews or evaluates the FS report submitted by the LGU. RPCO, PSO
and NPCO through the JTR reviews the submitted documents as per review
threshold with inputs from the conduct field visits or subproject appraisal. A
Subproject Appraisal Report (SPAR) will be prepared by upon completion of field
visit and evaluation. The subprojects are then scheduled by the RPCO for

136
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

deliberation and approval by the RPAB when all clearances are provided by the
review team.

Upon approval by the RPAB, the RPCO, PSO and NPCO will issue the NOL-1
depending on the threshold. RPCO to instructs the LGU to proceed with the
procurement preparation for subprojects approved by the RPAB and duly issued
with NOL-1.

For subprojects that needs WB review, All clearances from the review team shall be
provided to the subproject prior to the WB review

The subproject review, evaluation and approval must be anchored on the viability
indicators set by the Project in the market study, technical study, economic study,
institutional/organizational study, social and environmental study. Details of the
viability indicators are also listed in the eligibility and selection criteria.

4.5.6 Conditions for Fund Release

Conditions for the initial release of funds to the LGU, and subsequent releases, and
from the LGU to the contractors will be the same as those in Part III, Rural Roads.

4.6 Subproject Execution, Completion and Turnover

4.6.1 Implementation Structure

The implementation set-up shall be as described under the Organizational

Structure, Functional Responsibilities and Implementation Arrangements in Part II.
Engagement of service providers are the same in Part II.

4.6.2 Implementation Mode

The implementation scheme will be as follows:

1. The provisions under General Implementation Arrangements in Part II

shall be observed in the implementation of irrigation subprojects.

2. It used to be that the NIA was responsible for all irrigation projects. This
time under the PRDP Scale Up, it must be emphasized that the LGU shall
be primarily responsible for the planning, implementation and operation
and maintenance of its irrigation subprojects. However, the LGU may
negotiate for the assistance of the NIA in the subproject implementation.
Any contract or MOA shall make it clear that the NIA deals directly with
the LGU and not with DA/WB.

3. The procurement of the civil works shall be the responsibility of the LGU
as per guidelines herein, although the NIA or any of its personnel may be

137
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

requested by the LGU to assist subject to NIA’s concurrence to the

proposed terms of assistance.

4. Any agreement between the LGU and NIA shall not in any way diminish
the LGU’s responsibility and authority in the implementation of the
subproject.

5. In support of the National Government’s employment generation project,

Labor-Based Equipment Supported (LB/ES) methods of construction and
maintenance of rural infrastructure shall be adopted whenever possible.
Adoption of such method shall satisfy the following conditions:

✔ LB/ES cost shall not be more than ten (10) percent of the Equipment
Based (EB) cost;

✔ LB/ES project duration shall not be longer than fifty (50) percent of
the EB duration.

✔ Employment of local workers shall not unduly impair agricultural

production;

✔ Technical quality shall be maintained.

✔ As far as practicable, eighty (80) percent of the labor force shall be

taken from the beneficiary community.

✔ Women shall be given equal opportunity to join the labor force.

✔ The existing implementing guidelines on LB/ES method of

construction of the PRDP developed in MRDP shall continue to be
enforced.

6. The NIA’s established institutional development and participatory

strategies are hereby adopted for PRDP Scale Up. The LGU may negotiate
with the NIA- to conduct lecture-trainings on the same.

7. Another alternative is for the LGU to hire a sufficiently trained and

experienced Institutional Development Officer (IDO), preferably
previously employed by NIA;

8. Since institutional development is closely related to agricultural

extension, the support team in the irrigation subprojects shall primarily
be the responsibility of the Provincial/Municipal/City Agricultural Offices
(PAO/MAO/CAO). Hence, the IDO shall be under the supervision of the
PAO/MAO/CAO. However, the IDO shall work closely with the Project

138
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Engineer of the irrigation subproject so that construction and

institutional activities are properly coordinated.

9. Transfer of technology from the NIA to the LGU shall be made a deliberate
effort. The LGU shall assign a point person in the PAO/MAO/CAO who
will work closely with the IDO in order to learn. In the medium and long
terms, this person shall take over the responsibility from the IDOs.

10. In case a subproject proposed by the LGU is a rehabilitation of a system

previously constructed by the NIA, such proposal shall be subject to a
written agreement by NIA. The rehabilitation design and construction
schemes shall likewise be subject to the NIA’s written concurrence. In
such a case, the NIA shall continue to be responsible for the institutional
development activities therein, the expenses for which may be charged to
the LGU subproject funds.

11. In case the Irrigators’ Association (IA) has existing repayment obligations
to NIA, said IA shall continue to pay the amortization to NIA. However,
the cost of rehabilitation under PRDP Scale Up shall not be added to their
repayment obligation

4.6.3 Procurement

Procurement for rural road and bridge subprojects shall conform to Republic Act
9184 (the Government Procurement Reform Act) in general. Bidding procedures in
particular shall be in accordance with the Philippine Bidding Documents (as
harmonized with Asian Development Bank, Japan Bank for International
Cooperation, and World Bank).

During the bidding process, the technical drawing plans to be issued to bidders shall
be the hard bound copies of the duly approved and signed plans with No Objection
from the Project (NPCO/PSO/RPCO) depending on the threshold. Sell of electronic
copy of the plan should not be permitted.

Refer to the Operations Manual of the Procurement Unit on the detailed application
of the procurement guidelines in relation to the IBUILD subproject development
cycle.

4.6.4 Subproject Supervision and Quality, Time and Cost Controls

The procedures for the supervision and quality, time and cost controls of irrigation
subprojects shall be the same as those of Rural Roads part III.

Quality control procedures shall be in accordance with DPWH and NIA existing
practices and standards.

4.6.5 Monitoring, Evaluation and Reporting

139
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Monitoring, evaluation and reporting of the implementation of irrigation

subprojects shall be the main responsibility of the LGU. The procedures are the
same as in Part III Rural Road.

4.6.6 Performance Indicators

The performance indicators for implementation shall be evaluated monthly. The

performance indicators shall consist of the physical progress (estimated value of
work completed as a percentage of total value of work in the approved POW) and
the financial progress (expenditure incurred for work as a percentage of the total
value in the POW). The impact indicator, which shall be done after completion of
the subproject, will be the change in the irrigated area and yields from the pre
project conditions. For this purpose, the irrigated area and yields shall be reported
for all crop seasons at the start of the project up to the end of the Project in a
graphical form which will be interpreted for impact.

4.6.7 Progress Billing, Completion and Turnover

The contractor shall be allowed to do monthly progress billings in the course of the
construction without a ceiling on the percentage of accomplishment. The
attachments and procedures are the same for rural roads part III.

4.7 Subproject Operation and Maintenance

1. Operation and maintenance of communal irrigation facilities shall be the

responsibility of the LGU but endeavors to capacitate the IAs technically and
financially to handle the operation and maintenance of the facilities.

2. Communal irrigation systems (CIS) currently under the supervision of the

NIA, even if rehabilitated under PRDP Scale Up, shall continue to be
monitored and assisted for O&M by the NIA. New schemes constructed by
the LGU shall be monitored and assisted by the PAO/MAO/CAO.

3. IAs that have existing repayment obligations with the NIA shall continue to
pay their amortization to the NIA. However, the cost of rehabilitation under
PRDP Scale Up shall not be added to their repayment obligation.

4. An inspectorate team composed of ROMAT and LGU staff shall conduct

annual inspection of completed irrigation subprojects and shall rate the
efficiency of O&M activities for the system.

5. The RPCO shall prepare a region-wide annual O&M report of all completed
irrigation subprojects funded by PRDP Scale Up.

6. Failure of the LGU to satisfactorily comply with the above stipulations on

O&M provisions shall be sufficient cause for the RPCO to suspend further
rural infrastructure investments in the LGU, until such time that such
deficiency has been satisfactorily addressed.

140
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

4.8 “RASIX” for Irrigation Subprojects

As a quick reference called “RASIX” (Annex 42) defines who does what, or who is
RESPONSIBLE, who APPROVES, who SUPPORTS, and who should be INFORMED of
actions taken – along the subproject development stages from SP identification,
preparation, implementation until operation and maintenance.

5.0 Potable Water System

5.1 Definition and Features of Rural Water Supply Systems

The following definitions of service levels and characteristics of water supply

systems as contained in the NEDA Board Resolution No. 12 are adopted in PRDP
Scale Up.

Table 5-1. Definition and Features of Water Supply Systems

Particulars Level I Level II Level III

141
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

1. Definition Point source facility. Communal faucet Household faucet

system. system.

More appropriate Appropriate

Generally suitable
in areas where where houses are
for areas where
houses are provided with
houses are sparsely
clustered kitchen sink and
distributed.
closets.
2. Water source Drilled/driven Drilled shallow / Drilled
shallow well. deep well. shallow/deep well.

Drilled/driven deep Spring. Spring.

well.

Dug well.
Infiltration Infiltration
gallery / open gallery/open
source source.
Rainwater
Spring, rain water
harvester. Rainwater
3. Water Generally, none. Generally, none Generally none
treatment except for open except for open
Disinfection of wells
water sources to water sources to
is conducted
augment spring augment spring
periodically by local
discharges and in
health authorities. discharges and in
island
island
communities
communities
dependent on
dependent on
rainfall and open
rainfall and open
water sources.
water sources.
4. Distribution None Piped systems Piped systems
provided with provided with
reservoir(s). reservoir(s).
5. Delivery of At point (within 250- Communal faucet Faucet within the
water meter radius) house
(within 25-meter
radius)
6. Service level 15 Hh/point source; 4 to 6 HH / Household level
communal faucet faucet
1 Hh/private we ll.
7. Consumption At least 20 lcpd At least 60 lcpd At least 100 lcpd

142
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The infiltration gallery/open source refers to water sources like scattered spring
eyes that flows a distance before it gets collected, streams and creeks that are
located in watershed protected areas where contamination can be controlled and
appropriate water treatment facility is viable. Likewise, the systems operation with
additional tariff on water treatment is acceptable to the end users.

5.2 Scope

The potable water supply infrastructure type shall consist of the rehabilitation and
construction of small (covering a rural barangay) and large scale (covering more
than one rural barangay) Level I & II spring development systems and deep well
subprojects.

This subproject type is exempted to the Value Chain Analysis (VCA) and PCIP.

5.3 Financing Scheme

Cost sharing scheme for all subproject type:

The cost sharing between the National Government (NG) and the LGUs shall be as
follows:

✔ 90 % - to be financed by the National Government in the form of grant

(80% WB Loan Proceeds and 10% GOP) based on the Estimated Project
Cost (EPC) for subproject to be approved (NOL 1) in the year 2023-2024;

✔ Calibrated equity contribution to be financed by the National Government

in the form of grant based on the Estimated Project Cost (EPC) for
subproject to be approved (NOL 1) in the year 2025-2028;

✔ 10% - equity contribution of the LGU in cash based on the Estimated

Project Cost (EPC) for subprojects to be approved in the year 2023-2024;

✔ Calibrated equity contribution of the LGU in cash based on the Estimated

Project Cost (EPC) for subproject to be approved (NOL 1) in the year
2025-2028. LGUs calibrated equity contribution will be based from the
LGUs income classification;

Refer the table 3-1 for the Cost Sharing scheme for all IBUILD subproject type

The cost sharing scheme is the maximum limit LP and GOP. The percentage of LP
and GOP will be lowered when the variation order is fully shouldered by the LGU.

143
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The estimated project cost (EPC) for PRDP Scale Up will follow the provisions of
DPWH D.O. No. 197 Series of 2016 (Revised Guidelines in the Preparation of
Approved Budget for the Contract (ABC) except for the VAT component. The project
will use 12% VAT as stated at the Regulations No. 13-2018, the Regulations
Implementing the Value-Added Tax Provisions under the Republic Act (RA) No.
10963, or the “Tax Reform for Acceleration and Inclusion (TRAIN),” Further
Amending Revenue Regulations (RR) No. 16-2005 (Consolidated Value-Added Tax
Regulations of 2005), as Amended.

For Potable Water System, all item of work to be used in preparing the EPC shall
conform to the Standard Specifications for Highways and Bridges, revised 2015,
Volume 2, Standard Specifications for Public Works Vol 3, 2019, latest edition of the
DPWH Blue Book, approved Special Specifications for the Project from NWRB and
from the Local Water Works Utilities Administration and approved Special
Specifications for the Project.

The Project shall adopt the DPWH DO No. 136 series of 2022 “Revised Construction
Safety Guidelines for the Implementation of Infrastructure Projects During the
COVID-19 Public Health Crisis, Superseding Department Order Nos. 39 Series of
2020 and 30, Series of 2021 and future amendments thereto to prevent the spread
of Covid-19. The cost required for additional PPEs, thermometer, disinfectants,
footbath, washing stations, vitamins etc. shall be included in the POW in addition to
items not included in DOLE D.O. 13.

EPC Computation includes the following: (EPC = DC + IDC)

a. Direct Cost (DC):

7. Materials Cost [cost at source (includes local taxes, processing, crushing,

stockpiling, loading, royalties, construction and/or maintenance of haul
roads), expenses for hauling, handling, storage, and allowances for waste
and losses (not to exceed 5% of material requirement)]

8. Labor Cost (salaries and wages, as authorized by DOLE regional wage

board or locally legislated rates).

9. Equipment Expenses (rental of equipment based on prevailing 2014

ACEL rates or locally legislated rental rates).

b. Indirect Cost (IDC):

7. Overhead, Contingencies and Miscellaneous (OCM): 8-15% of DC

✔ Overhead Expenses, 7-11% [engineering and administrative
supervision, transportation allowances, office expenses, CARI, and
financing cost (bid security, performance security and warranty)].

144
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

✔ Contingencies, 0.5-3% [expenses for meetings, coordination with

other stake holders, stages during ground breaking, inauguration
ceremonies, other unforeseen events and billboards (excluding
Project Billboard which is a pay item under the General
Requirement)]
✔ Miscellaneous Expenses, 0.5-1% (laboratory tests for quality
control and plan preparation)

8. Contractor’s Profit (CP): 8-10% of DC

9. VAT Component: 12% of (DC+OCM+CP)

Refer to table 3-2 for the Indirect Cost Factors for Subprojects

The following items shall not be subjected to OCM and profit mark-up:
5. Mobilization and Demobilization
6. Provision of Service Vehicle

The following non-civil work items shall not be subjected to OCM mark-up:
17. Field /Laboratory Office & Living Quarters (Rental Basis)
18. Furnishing of Furniture, Laboratory Equipment, Survey Equipment and
Consumables
19. Assistance to Engineers
20. Photographs
21. Health and Safety
22. Traffic Management
23. Environmental Compliance
24. Communication Equipment, etc.

In all cases, estimates for special items of work (SPL) should be accompanied with
plans and specifications, methods of construction, measurements and basis of
payments duly approved by the head of the implementing office. Annex 46 describes
the technical specifications for commonly used SPL items.

5.4 Subproject Identification and Prioritization

In addition to the selection criteria for all types of subprojects enumerated under
Identification and Prioritization Criteria in Part II, more specific criteria for the
identification of potable water supply subprojects are as follows:

1. The proposed subprojects are selected through a consensus based on

informed decision-making after serious technical options related to lack of
potable water supply have been done;

2. The choice is based mainly on expected benefits, e.g., better health, shorter
time for fetching water and adequate water at all times for domestic,
agricultural and commercial use;
145
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3. The LGU and end users understand their roles and responsibilities such as
contribution of counterpart, and post-construction operation and
maintenance;

4. The location of the source and reservoir must have been sold or donated to
the LGU or association officially and the necessary permit to enter for the
pipe layout in private land and tap-stand locations must have been secured;

5. The proposed subproject must not be currently covered by other

government agencies, NGOs or private entities – either in construction stage
or in planning stage with definite funding commitment.

6. Proposed sites must have a reliable (quality and quantity) water supply
throughout the year;

7. Disturbance of ecosystem must be minimal if natural spring is tapped for

development. Also, forest protection measures shall be established at the
watershed.

8. The indicative unit cost per household is thirty thousand for rehabilitation
and new construction.

9. Water samples from proposed sites must be free from any contamination
and certified safe by the Department of Health (DOH) or Local Health Officers
otherwise appropriate provision of water treatment facility is required;

10. The farthest user shall not be more than 25 meters from the tap stand.

11. No rehabilitation shall be made on erroneously located wells.

12. The proposed sites must have a water permit issued by the NWRB or a water
permit application has been filed and endorsed favorably by NWRB’s
deputized field offices (NIA, DPWH-DEO, water districts etc.).

13. Where the subproject encroaches on areas with IPs/lands with Ancestral
Domain Claims, the free and prior informed consent (FPIC) of the IPs must
be obtained through the NCIP.

In addition to the basic prioritization guidelines enumerated under Identification

and Prioritization Criteria in Part II, prioritization will also be governed by the
following factors:

1. commitment of the LGU to provide their equity contribution;

2. the social and economic benefits derived from the subproject in terms of cost
per household served.

146
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3. technical capability of LGU to prepare the detailed engineering designs,

drawings and program of work;

4. technical capability of LGU to manage the implementation of a given number

of subprojects simultaneously in a given year.

5. For deep wells: willingness of the LGU to front load funds for the subsurface
exploration in determining the presence of sufficient amount of potable
underground water. The cost for water exploration shall solely be
shouldered by the LGU and not sharable in the equity sharing requirement of
the SP.

Rationalization and allocation of potable water supply across provinces shall follow
the following screening guidelines at the proposal stage by the RPCO/PSO to wit:

1. The Project do not have a healthy water supply proposals in the pipeline and
considering the various level of technical capacities of LGUs in proposing
water supply sub-projects, the RPCOs/PSOs shall endeavor to provide equal
training opportunities to LGUs with water supply identified needs in the
PCIP;

2. Priority shall be given to water supply proposals that will have multipurpose
use such as for domestic use and at the same time serving the processing
facilities by the Proponent Groups of IREAP and irrigation for backyard
vegetable gardening. The design consumption rate to be used in the
hydraulic analysis shall be 60 liters per capita per day for domestic use and
80 to 100 liters per capita per day if the system will also cater to
industrial/processing consumption and or backyard gardening or based on
computation of the projected water consumption of the processing plant and
total water duty per area of plants to be irrigated. The economic benefits
from the additional water services must outweigh the additional cost due to
increase in pipe sizes.

3. Sub-project proposals for potable water supply within the thresh hold of
RPCOs and PSOs but without a Water Specialist to review shall be jointly
reviewed with NPCO prior issuance of NOL 1 by the RPCO or PSO concern.

5.5 Social and Environmental Safeguards

Social safeguards shall also be complied with. The principal objective is to ensure
that displaced persons (DP) will be compensated for their losses and provided
assistance to improve, or at least maintain their pre-subproject living standards and
earning capacity; and where the subproject encroaches on areas with IPs/lands with
Ancestral Domain Claims, that the IPs are among the beneficiaries of the subproject
and that their free and prior inform consent (FPIC) is obtained through the NCIP.

Special care shall be taken so that environmental safeguards will be considered in

the detailed design and observed prior to, during and after construction. In
particular, an Environmental and Social Management Plan (ESMP) shall be prepared

147
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

by the LGU before the implementation period – and this will be monitored during
and after construction.

Refer to the Operations Manual of the Social and Environmental Safeguards Unit on
the detailed application of the Social and Environmental Framework guidelines in
relation to the IBUILD subproject development cycle.

5.6 Subproject Appraisal and Approval System

5.6.1 Eligibility Criteria

One pre-requisite for a province to be eligible for participation under the project
shall be a completed overall provincial commodity investment plan.

Based on the above document, the RPCO issues an invitation to the eligible LGUs to
submit their list of priority subprojects for project assistance. The Local Chief
Executive shall prepare a Letter of Intent (LOI) for financing for water supply in
their respective provinces and municipalities. The LOI and list of priority
subprojects shall be accompanied by the following documents:

1. Color-coded provincial/municipal map indicating the location of the

proposed water source(s) and limits of the service area; existing schemes,
shall also be reflected on the map in Google Earth;

2. Brief description of each proposed subproject under the project to include

among others, the location, number of households to be served, present
source(s) of potable water supply and estimated cost;

3. Provincial SP/municipal SB resolution expressing commitment to finance the

required LGU equity contribution (indicating amount) in cash and to provide
technical assistance to the water users association;

4. Compliance checklist of LGU eligibility and selection criteria;

The first tier LGU eligibility assessment as regards to technical capacity, financial
capacity, compliance to the Seal of Good Local housekeeping and Operation and
Maintenance commitment of previously implemented special projects of DA like
PRDP, InFRES, MRDP and CHARMP must be favorable.

a. A certification from the PPDC/MPDC/CPDC that the subproject’s water

source(s) are reliable, adequate and certified potable by DOH or health
officers;

b. A certification from the Provincial/Municipal/ City treasurer on the

availability of funds for the LGU equity contribution;

5.6.2 Subproject Validation

148
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Upon receipt of the above documents, the RPCO shall review and evaluate the merits
of the proposed subprojects and conduct field validation. Technical assistance from
the PSO/NPCO may be sought for complex subprojects. A final validation report
shall be prepared by the RPCO. Attached to the validation report is a subproject
prescreening checklist such as information on the unit cost parameters, EIRR, B/C
ratio, IP and subproject environmental categorization concerns and validation of
LGU capacity.

5.6.3 Feasibility Study (FS) Preparation

Subprojects that qualify for project assistance shall be subjected to Feasibility Study
(FS) analysis. Upon receipt of the letter of approval of application from the RPCO,
the LGU shall immediately prepare the subproject FS. The PLGU has the option to
seek assistance from the MLGU where the SP is located.

The FS report shall cover the following:

1. subproject location on the provincial/municipal maps;

2. brief subproject profile;

3. engineering design and sections; (Specifically for deep well sources,

exploratory drillings, well inventory and slug test, and geo-resistivity survey
are options to be conducted to confirm the availability in sufficient quantity
of potable water underground before the subproject is submitted for
consideration). The cost of such exploratory undertakings shall be accounted
to the LGU but shall not be counted as part of the LGU equity share required
for the subproject.

4. cost-estimates based on updated and acceptable unit cost parameters;

5. financial and economic analysis;

6. implementation arrangement and schedule; and

7. other data and analysis as may reasonably be required by RPCO and PSO
such as willingness to connect and pay survey relative to tariff setting.

A detailed FS outline for Potable Water Supply subproject is attached as Annex 4.

Additional attachments to the FS report shall include the following documents:

8. Environmental and Social Management Plan (ESMP);

9. Water permit from NWRB. In case the permit is still in process, documents to
show that a water permit application to the NWRB has been made and the

149
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

same has been favorably endorsed by NWRB’s deputized field offices (NIA,
DPWH-DEO, water districts etc.);

10. laboratory sampling certificate of potability from DOH or Local Health

Officer;

11. other clearances and permits as required by concerned regulatory agencies;

and

12. survey of Displaced Persons (DP) and FPIC if needed.

In the event that an LGU cannot prepare the FS due to lack of in-house capability or
lack of staff, it may contract out such work to service providers. The cost of such
shall be for the account of the LGU but shall not be counted as part of the LGU’s cash
equity share for the subproject.

The FS report shall be internally reviewed and approved by the P/M/CPMIU.

5.6.4 Subproject Detailed Engineering Preparation

5.6.4.1 Field Survey

The DED and POW is part of the attachment to the FS report covering the following:

1. In the case of spring development:

a. survey of main pipe alignment (layout plan) with spot elevation of

water source (intake box), proposed reservoir and communal tap
stand showing the clustered household;

b. survey of ground profile along main pipe alignment from source

(intake box) to reservoir to communal tap-stand;

2. In the case of deep well:

a. survey of existing artesian wells still operating in the area;

b. survey of presence of river or creek that have water running its

course;

3. In the case of atmospheric water source:

a. secure local rainfall data from PAGASA and survey the presence of
adequate catchment areas usually house roofing.

5.6.4.2 Design, Drawings, Specifications

150
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The LGU shall proceed with the preparation of detailed design, drawings,
specifications, POW and O&M plan once field survey works have been completed.
The following Geometrical and Design Specifications shall be adopted for the
project:

Table 5-3. Geometrical and Design Specifications for Potable Water Supply
Systems

Scheme Geometrical and Design Specifications

a. Level II, deep well Adopt minimum of 150 mm diameter of casing

with 50 mm diameter suction pipe and 10 mm
diameter of gravel packing materials.

Cisterns/reservoir could be made of concrete or

Rainwater harvester food grade plastic containers, stainless steel or as
(supplemental water source) maybe appropriate. The

b. Level II, spring roof paint for catchment facilities are of food
development grade materials.

Farthest house shall not be more than 25 meters

from the nearest communal faucet;

Designed to deliver at least 60 lcpd;

✔ Communal faucet to serve an average of 4

to 6 households

✔ Spring intake box made of concrete shall

conform to a concrete strength of 3,000
psi (21MPa) with water proofing
compound.;

✔ Ground distribution reservoir shall be

located on high ground and if made of
concrete, it should attain a 3,000 psi (21
MPa) concrete mix strength with water
proofing compound;

✔ Main pipeline shall be properly designed

to withstand the static pressure and could
be GIP or plastic pipe (uPVC and PE)
materials. The residual head at tapstand
level must not be less than 3 meters or

151
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

pressure of 4.26 psi.

✔ All pipes shall be rated for use of water at

23 degrees

Centigrade and at a minimum working

pressure of 1.10 MPa.

All plastic pipes shall be embedded at a

minimum depth of 50 cm below natural
ground. Communal faucets shall be of
heavyduty brass type provided with
concrete apron.

Detailed drawings and POW of proposed potable water supply systems shall include
the following:
1. Main pipe alignment (plan) and profile on half roll cross-section paper
indicating the length, type and diameter of pipes to be used with spot
elevations from source (say, intake box in the case of spring development) to
the distribution reservoir and to the proposed communal tap-stand.
Additionally, a one-page coupon bond size schematic diagram showing pipe
nodes and its elevations, pipe sections and its length, location of tap-stands
and the number of household users per tap-stand and its elevation, location
of structures and valves and their elevations. These are needed in the
hydraulic analysis;

2. Detailed plans, sections, and elevations of structures (i.e., intake box,

ground/elevated reservoirs, communal tap-stands, joints, etc.), other
construction details;

3. Summary of volumes and quantities;

4. Volume computation of earthwork, structure and pipeline quantification;

5. General and technical specifications;

6. Program of work (POW);

7. Derivation of work item unit costs;

8. Implementation schedule;

9. O&M plan.

Reference shall be made to the DPWH Standard Specifications for Public Works
Structures, 2019 edition Volume III, Buildings, Ports and Harbors, Flood Control and
Drainage Structures and Water Supply Systems /NWRB/LWUA Specifications when

152
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

the general and/or technical specifications do not expressly provide guidance. In

both detailed design and construction, sound engineering practices shall be
observed.

In the event that a LGU cannot prepare the detailed engineering design on its own
due to lack of in-house capability or lack of staff, it may contract out such work to
service providers. The cost for such shall be to the account of the LGU and shall not
be counted as part of the LGU’s cash equity to the subproject.

5.6.4.3 Program of Works (POW)

The Program of Work (POW) presentation generally follows the following outline:

1. General Information
a. Name of Subproject – usually named relative to the location (eg. barangay
name at start and end stations)
b. Location of Subproject – sitio, barangay, municipal, provincial
c. Subproject Category – rehabilitation (for existing) or construction (for
new opening)
d. Project Duration – in calendar days as computed and adjusted to include
Sundays and holidays and estimates for unworkable days due to
inclement weather condition
e. Implementation Mode – by contract
f. Subproject Appropriation per funding source (WB-LP, GOP, LGU)
g. Physical Targets
h. List of Minimum Equipment and Manpower Needed for the Contract
(refer to manpower and equipment utilization schedule). Specify the
minimum number and equipment specifications to include information
whether owned or leased on a 30%-70% allocation, wherein for each
equipment classification, i.e. heavy equipment (e.g. batching plant, road
grader, road roller, pay loader, back hoe, stake truck) and secondary
equipment (e.g. transit mixer, dump trucks, water truck), a minimum of
30% should be owned and 70% could be leased.
i. Technical Personnel:
Technical personnel requirement for the contractor during project
implementation.
1) Project Manager
✔ Project Manager is required for subprojects with an EPC of 50
million and above.
2) Project Engineer
✔ Project Engineer is a must requirement for all types of
subproject.
3) Safety Officer
✔ The safety officer shall be mandatory in all subproject as
required by Department of Labor and Employment (DOLE).

153
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

2. Summary of Cost
a. Summary of Item Cost or Direct Cost– summary cost of materials, skilled
and unskilled labor and equipment rental cost
b. Summary of Estimated Project Cost – direct cost plus indirect cost
showing the charging or cost sharing among WB-LP, GOP and LGU.

3. Approval Sheet – the POW will be prepared by the Provincial / Municipal /

City Engineering office, Check and Reviewed by the Provincial / Municipal /
City Engineer, Recommending Approval by the P/M/CPMIU Head and
Approved by the Local Chief Executive.

The detailed estimate presentation format will also follow the following outline per
item of work:

1. Volume Computation – in excel format, tabulate the dimensions with labels

and indicate formula used in the volume or quantity computation.

2. Derivation of Materials Quantity and Cost– specify specifications and factors

used or direct counting based on the plan. The normal cost for materials
include hardware price or pick-up price and the cost of delivery or hauling to
the project site. Derivation of hauling cost is required using time spotting in
the absence of established delivery/hauling rates.

3. Derivation of Number of Equipment and Cost – use the PRDP Scale Up

provided productivity rates and rental rates. Rental rates will be based on
ACEL 2014 or use locally legislated rental rates if restricted. To be presented
are: the bare or operated rental rates to include cost for fuel, oil and
lubricants, operators and maintenance.

4. Derivation of Labor Cost – use the PRDP Scale Up labor productivity rates
(individual or gang output) and adopt the regional labor wage board rates in
the locality or locally legislated labor rates when restricted.

5. Summary of Item Cost – materials, skilled and unskilled labor, equipment

rental cost. Shown in the summary sheet is the item unit cost.

6. Project Duration:
✔ The project duration is based on the number of days accrued or as
derived based on the number of equipment to do the work for equipment
operated items of works and from the duration as derived from labor
based-equipment supported items of works. The project duration is the
total number of days defined by the critical path in the PERT-CPM / PDM
or bar chart and S-Curve and adjusted to include the accumulated
Sundays, holidays and target / pre-determined unworkable days due to
inclement weather condition.
✔ Pre-determined unworkable days due to inclement weather condition is
the number of days projected to be unworkable due to inclement weather

154
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

condition based on monthly historical experiences of the Proponent LGUs

on the frequency of typhoons and other local weather disturbances
within the planned implementation period. This means that the exposure
of its SP from inclement weather condition varies from LGU to LGU and
region to region and this has to be determined monthly.

The Program of Work (POW) presentation generally follows the outline in Part III
Rural Roads, Likewise, the detailed estimate presentation format will also follow the
outline per item of work as detailed in Part 2 Part 3 of this manual.

5.6.4.4 Review, Evaluation and Approval

The detailed FS, DED, POW, O&M plan, Bid Documents and safeguards documents
prepared by the LGU shall be submitted to the DA RPCO for review.

The RPCO then reviews or evaluates the FS report submitted by the LGU. RPCO, PSO
and NPCO through the JTR reviews the submitted documents as per review
threshold with inputs from the conduct field visits or subproject appraisal. A
Subproject Appraisal Report (SPAR) will be prepared by upon completion of field
visit and evaluation. The subprojects are then scheduled by the RPCO for
deliberation and approval by the RPAB when all clearances are provided by the
review team.

Upon approval by the RPAB, the RPCO, PSO and NPCO will issue the NOL-1
depending on the threshold. RPCO to instructs the LGU to proceed with the
procurement preparation for subprojects approved by the RPAB and duly issued
with NOL-1.

For subprojects that needs WB review, All clearances from the review team shall be
provided to the subproject prior to the WB review

The subproject review, evaluation and approval must be anchored on the viability
indicators set by the Project in the market study, technical study, economic study,
institutional/organizational study, social and environmental study. Details of the
viability indicators are also listed in the eligibility and selection criteria.

5.6.4.5 Conditions for Fund Release

Conditions for the initial release of funds from the PSO to the LGU, and subsequent
releases, and from the LGU to the contractors will be the same as those for Rural
Roads in Part III.

5.6.5 Subproject Execution, Completion and Turnover

5.6.5.1 Implementation Structure

The implementation set-up shall be as described under Organizational Structure,

Functional Responsibilities and Implementation Arrangements in Part II of this

155
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

manual. Involvement of the members of the water user association is critical in all
phases of the project development cycle.

5.6.5.2 Implementation Mode

The provisions under General Implementation Arrangements in Part II shall be

observed in the implementation of potable water supply subprojects.

In support of the National Government’s employment generation project, Labor

Based Equipment Supported (LB/ES) methods of construction and maintenance of
potable water supply and sanitation schemes shall be adopted whenever possible.
Adoption of such method shall satisfy the following conditions:

a. LB/ES cost shall not be higher by more than ten (10) percent of the
Equipment Based (EB) cost;

b. LB/ES project duration shall not be longer by more than fifty percent (50%)
of the EB duration.

c. Employment of local workers shall not unduly impair agricultural

production; and

d. Technical quality shall be maintained.

e. Beneficiaries within the community shall be the first priority in the selection
of labor force.

5.6.5.3 Procurement

Procurement for rural road and bridge subprojects shall conform to Republic Act
9184 (the Government Procurement Reform Act) in general. Bidding procedures in
particular shall be in accordance with the Philippine Bidding Documents (as
harmonized with Asian Development Bank, Japan Bank for International
Cooperation, and World Bank).

During the bidding process, the technical drawing plans to be issued to bidders shall
be the hard bound copies of the duly approved and signed plans with No Objection
from the Project (NPCO/PSO/RPCO) depending on the threshold. Sell of electronic
copy of the plan should not be permitted.

Refer to the Operations Manual of the Procurement Unit on the detailed application
of the procurement guidelines in relation to the IBUILD subproject development
cycle.

5.6.5.4 Subproject Supervision

156
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The procedures for the supervision of potable water supply subprojects are the
same as those discussed in part 2 and part 3 of this manual in which is the main
responsibility of the assigned Project Engineer.

5.6.5.5 Quality Control

An Infrastructure Quality Monitoring and Durability System will be in placed to

guide the Project how to ensure quality assurance and control for all subprojects. A
Quality Plan, Inspection and Test Plan and Minimum Materials Testing Requirement
Plan will be prepared per subproject as the blue print in undertaking quality
assurance and control by the contractor, P/M/CPMIU, RPCO, PSO and NPCO.

Quality control procedures shall be done according to the following schedule of

minimum test requirements:

Table 5-2 Minimum Test Requirements for Potable Water Supply

Systems for Some Selected Items
Items of Work Minimum Test Requirements
1. Spring intake boxes and
elevated concrete reservoirs
1.1 Reinforcing steel bars Certification from the supplier verified for
authenticity by the LGU.
1.2 Structural concrete For every 75 cu.m. or fraction thereof of fine
and coarse aggregates: 1-G, grading test. For
every 75 cu.m. or fraction thereof of concrete
mix, compressive strength test on 1-set of
three (3) concrete cylinder samples.

2. Pipelines Certification from the supplier verified for

authenticity by the LGU.

Test run or hydro-testing to determine failure in

terms of pipe joint leakages and pipe bursting.

5.6.5.6 Time Control

The procedures for the time control of water system subprojects shall be the same
as those discussed at part 2 and part 3 of this manual.

5.6.5.7 Cost Control

The procedures for the cost control of water system subprojects shall be the same as
those discussed at part 2 and part 3 of this manual.

157
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

5.6.5.8 Monitoring, Evaluation and Reporting

The procedures for the monitoring, evaluation and reporting for potable water
supply subprojects shall be the same in part III for Rural Roads

5.6.5.9 Progress Billing, Completion and Turnover

The contractor shall be allowed to do monthly progress billings in the course of the
construction, the same procedure as those discussed at part 2 and part 3 of this
manual.

5.7 Subproject Operation and Maintenance

Under NEDA Board Resolution No. 4 series of 1994 and as recommended by the
Infrastructure Committee (INFRACOM) on the reforms in the water supply sector:

“Level I (point source), Level II (communal faucet) and Level III (house connections)
water supply projects may be implemented by the concerned LGUs within their
jurisdiction. LWUA shall implement only financially viable Level III water supply
projects in areas outside the MWSS jurisdiction. DILG’s participation will consist of
general administration and institution-building, such as assistance to LGUs in the
formation of rural and/or barangay waterworks and sanitation associations
(RWSAs/ BWSAs) as well as in the identification of water supply systems. MWSS
will be responsible for Level III water systems in Metro Manila and adjacent areas.
DPWH, together with DILG and DOH, will provide technical assistance (within a
period of about two years) to LGUs in the planning, implementation and operation
and maintenance of water supply facilities.”

Along this line, O&M of Levels I, II and III water supply facilities becomes the main
responsibility of the LGUs. This will be through the establishment of water users
association, which should be formed and trained before the subproject is turn-over.
Procedures for levying water charges will have to be developed to cover the
maintenance and operating costs of facilities, the policies of which shall become part
of the MOA.

To enhance the sustainability of the water supply facilities, the PEO/MEO/CEO shall
conduct periodic inspection of the same to check and guide the water users
association in the conduct of operation and maintenance activities. As funds are a
central issue in O&M, the LGU shall likewise check on the collection of water charges
to ensure that funds are available when needed repairs are required.

In addition, the following requirements for O&M shall be complied with by the
LGUs:

a. A formally organized and trained water users association;

158
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

b. An inspectorate team composed of the ROMAT and LGU staff shall conduct
annual audit of completed potable water supply subprojects and shall rate
the efficiency of O&M activities conducted on the same.

c. The RPCO shall prepare a region-wide annual O&M report of all completed
potable water supply subprojects funded by PRDP SU.

d. Failure of the LGU to satisfactorily comply with the above shall be sufficient
cause for the RPCO to suspend further rural infrastructure investments in the
LGU until such time such deficiency has been satisfactorily addressed.

e. Adequate training on water testing procedure shall be ensured where water

treatment is necessary.

5.8 “RASIX” for Rural Water Supply

As a quick reference called “RASIX” (Annex 43) defines who does what, or who is
RESPONSIBLE, who APPROVES, who SUPPORTS, and who should be INFORMED of
actions taken – along the subproject development stages from SP identification,
preparation, implementation until operation and maintenance.

6.0 Value Chain Rural Infrastructure

6.1 Scope

Value Chain Rural infrastructure other than rural roads, irrigation and water supply,
have been identified to also support the attainment of goals and objectives of PRDP
SU rather than being implemented by the private sector, they are considered for
funding under PRDP SU because of their nature as contributing to the public good.

Value Chain Rural Infrastructures needed in the value chain to enhance the
productivity and give value added quantities to products in agriculture and fishery
industries such as production facilities, pre and post-harvest facilities, marketing
facilities, consolidation facilities, processing facilities are eligible for funding for
PRDP Scale Up.

Specific eligible facilities for Value Chain Rural Infrastructure under IBUILD funds
are slaughterhouse / abattoir, poultry dressing plants, fish landing and facilities,
feeder ports, tramlines, watch towers, slope stabilization works, silos, warehouses,
warehouse with solar driers, multipurpose solar driers, cold storage facilities,
agriculture composting facility, livestock auction facility, fish hatcheries and

159
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

fishponds facilities, trading posts/centers and other infrastructure fully operated

and managed by the LGU.

Other Value Chain rural infrastructures such as silos, warehouses, warehouse with
solar driers, solar driers, cold storage facilities, fish hatcheries and fishponds
facilities, trading posts/centers, food terminals equipped with cold or dry storage
facilities, greenhouses, corn drying to milling centers/facilities with warehouses,
silos, rice processing centers (for drying, milling, and packaging) with logistics
facilities, fish trading centers with pre-processing and cold storage facilities,
livestock breeding and grow-out facilities, dairy barns / production facilities, meat
processing plants, dairy processing plants / centers with testing facilities, feed mill
and other facilities managed by FCAs, co-managed by the LGU and FCAs and co-
managed by FCAs and private entities are eligible IREAP funds.

Support structures / facilities that are part of the process flow of the value chain
rural infrastructure are included as eligible for the subproject. (parking and
maneuvering area, water tank, electrical transformers, water supply, access roads
and the like)

6.2 Financing Scheme

Cost sharing scheme for all subproject type:

The cost sharing between the National Government (NG) and the LGUs shall be as
follows:

✔ 90 % - to be financed by the National Government in the form of grant

(80% WB Loan Proceeds and 10% GOP) based on the Estimated Project
Cost (EPC) for subproject to be approved (NOL 1) in the year 2023-2024;

✔ Calibrated equity contribution to be financed by the National Government

in the form of grant based on the Estimated Project Cost (EPC) for
subproject to be approved (NOL 1) in the year 2025-2028;

✔ 10% - equity contribution of the LGU in cash based on the Estimated

Project Cost (EPC) for subprojects to be approved in the year 2023-2024;

✔ Calibrated equity contribution of the LGU in cash based on the Estimated

Project Cost (EPC) for subproject to be approved (NOL 1) in the year
2025-2028. LGUs calibrated equity contribution will be based from the
LGUs income classification;

Refer to Table 3-1 for the Cost Sharing scheme for all IBUILD subproject type

The cost sharing scheme is the maximum limit LP and GOP. The percentage of LP
and GOP will be lowered when the variation order is fully shouldered by the LGU.

160
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

The estimated project cost (EPC) for PRDP Scale Up will follow the provisions of
DPWH D.O. No. 197 Series of 2016 (Revised Guidelines in the Preparation of
Approved Budget for the Contract (ABC) except for the VAT component. The project
will use 12% VAT as stated at the Regulations No. 13-2018, the Regulations
Implementing the Value-Added Tax Provisions under the Republic Act (RA) No.
10963, or the “Tax Reform for Acceleration and Inclusion (TRAIN),” Further
Amending Revenue Regulations (RR) No. 16-2005 (Consolidated Value-Added Tax
Regulations of 2005), as Amended.

For Value Chain Rural Infrastructures, All item of work to be used in preparing the
EPC shall conform to the DPWH Standard Specifications for Highways and Bridges,
revised 2015-Volume II, Standard Specifications for Public Works Vol 3, 2019, and
approved Special Specifications for the Project

The Project shall adopt the DPWH DO No. 136 series of 2022 “Revised Construction
Safety Guidelines for the Implementation of Infrastructure Projects During the
COVID-19 Public Health Crisis, Superseding Department Order Nos. 39 Series of
2020 and 30, Series of 2021 and future amendments thereto to prevent the spread
of Covid-19. The cost required for additional PPEs, thermometer, disinfectants,
footbath, washing stations, vitamins etc. shall be included in the POW in addition to
items not included in DOLE D.O. 13.

EPC Computation includes the following: (EPC = DC + IDC)

a. Direct Cost (DC):

10. Materials Cost [cost at source (includes local taxes, processing, crushing,
stockpiling, loading, royalties, construction and/or maintenance of haul
roads), expenses for hauling, handling, storage, and allowances for waste
and losses (not to exceed 5% of material requirement)]

11. Labor Cost (salaries and wages, as authorized by DOLE regional wage
board or locally legislated rates).

12. Equipment Expenses (rental of equipment based on prevailing 2014

ACEL rates or locally legislated rental rates).

b. Indirect Cost (IDC):

10. Overhead, Contingencies and Miscellaneous (OCM): 8-15% of DC

✔ Overhead Expenses, 7-11% [engineering and administrative
supervision, transportation allowances, office expenses, CARI, and
financing cost (bid security, performance security and warranty)].
✔ Contingencies, 0.5-3% [expenses for meetings, coordination with
other stake holders, stages during ground breaking, inauguration

161
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

ceremonies, other unforeseen events and billboards (excluding

Project Billboard which is a pay item under the General
Requirement)]
✔ Miscellaneous Expenses, 0.5-1% (laboratory tests for quality
control and plan preparation)

11. Contractor’s Profit (CP): 8-10% of DC

12. VAT Component: 12% of (DC+OCM+CP)

Refer to Table 3-2 for the Indirect Cost Factors for Subprojects

The following items shall not be subjected to OCM and profit mark-up:
7. Mobilization and Demobilization
8. Provision of Service Vehicle

The following non-civil work items shall not be subjected to OCM mark-up:
25. Field /Laboratory Office & Living Quarters (Rental Basis)
26. Furnishing of Furniture, Laboratory Equipment, Survey Equipment and
Consumables
27. Assistance to Engineers
28. Photographs
29. Health and Safety
30. Traffic Management
31. Environmental Compliance
32. Communication Equipment, etc.

In all cases, estimates for special items of work (SPL) should be accompanied with
plans and specifications, methods of construction, measurements and basis of
payments duly approved by the head of the implementing office. Annex 46 describes
the technical specifications for commonly used SPL items.

6.3 Subproject Identification and Prioritization

The general principles to be followed in the identification of these other rural

infrastructure subprojects aside from those prescribed in Part II shall be as follows:

1. Identification, selection and prioritization of other infrastructure subprojects

shall be governed by the provincial commodity investment plan (PCIP) in
line with the regional agri-fisheries modernization plan;

2. The choice shall be based mainly on expected benefits;

162
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3. The LGU understands its roles and responsibilities such as contribution of

counterpart, management and operation of the facility and post-construction
operation and maintenance; and

4. Where the subproject encroaches on areas with IPs/lands with Ancestral

Domain Claims, the free and prior informed consent (FPIC) of the IPs must be
obtained through the NCIP.

6.4 Social and Environmental Safeguards

Refer to the Operations Manual of the Social and Environmental Safeguards Unit on
the detailed application of the Social and Environmental Framework guidelines in
relation to the IBUILD subproject development cycle.

6.5 Technical Selection Criteria

In addition to the selection criteria for all types of subprojects enumerated under
Selection and Prioritization Criteria in Part II, the following are hereby prescribed:

1. Solar Driers with Warehouses

a. Solar driers and warehouses shall always be lumped together as one

subproject, except when one or the other is already present and may
support the proposed new project. Another exception is when the
type of product intended to be kept in the warehouse does not need
drying at all.

b. The design of the warehouse, shall, if needed, incorporate facilities to

enhance the marketability of the crops of the beneficiaries. The
design shall also be made in such a way that the warehouse may at
certain times serve as a multi-purpose hall for community meetings or
social events (from which such uses may be derived users fees to be
used for the O&M of the facility). The warehouse shall be provided
with a separate office (attached to the warehouse) and comfort rooms
for both male and female with water provision.

c. Solar driers should be located away from shady trees;

d. The subproject shall be located where there is an organized farmers’

organization; or the prospective beneficiaries are interested to
formally organize;

e. The subproject shall be located within the production area to be

served, in a location most convenient to reach by all beneficiaries;

163
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

f. The right-of-way (ROW) shall be donated or sold to the LGU or a

registered farmers’ organization. If the ROW is to be bought, no funds
of PRDP shall be used for the purchase cost.

g. Production area shall be at least 50 hectares, for crops.

h. Not more than 30% of the benefited area shall be owned by only one
family.

i. Off-shore solar driers for seaweeds shall be located in an accessible

area nearest the shoreline, at no more than 2.5 meters sea-depth
during high tide. Minimum area of a seaweed farm shall be 10
hectares, consisting of many seaweed farmers.

2. Timber Ports

a. Timber ports should not be constructed in open sea with strong

currents.

b. The walkway with pier head shall not exceed 150 meters. Therefore,
careful tidal observations should be made before a decision to put up
a timber port is made so that even at low tide the facility will still be
usable. If tidal observations show that a 150-meter length is not
sufficient, a longer length may be allowed depending on the
evaluation and recommendation of the RPCO and PSO and also on the
capacity of the LGU to shoulder a bigger equity contribution.

c. The cutting and use of timber for use in the subproject should be
approved by the DENR.

d. Catchment area should have a population of at least 200 households;

if less, subproject should be justified by high economic activities in the
area benefiting the farmers.

3. Rock Causeways

a. The total length shall not be more than 50 meters. Careful tidal
observations should be made, therefore, before a decision to build a
rock causeway is made so that even at low tide the facility will be
usable. If tidal observations show that a 50-meter length is not
sufficient, a longer length may be allowed depending on the
evaluation and recommendation of the RPCO and PSO and also on the
capacity of the LGU to shoulder a bigger equity contribution.

b. Catchment area should have a population of at least 200 households;

if less, subproject should be justified by high economic activities in the
area benefiting the farmers.

164
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

c. The use of corals shall not be allowed to make up the causeway.

✔ The technical selection criteria of the other infrastructure types not

mention above shall conform to the standards of authorized implementing
line agencies such as the NMIS, BAI, PhilFIDA, BFAR and PhilMech etc.

The subproject must be certified urgent by the proponent LGU and line agencies
with current needs and demands of the stakeholders;

a. The establishment of facilities must be based on existing demands and

projected development of new production areas, processing and
market centers with approved development funding support;

b. The subproject site must not be located in hazard prone areas

(depression, hillside, water logged/swampy, cultural sites, tidal prone
area) and in similar areas where development cost will be high.

6.6 Subproject Appraisal and Approval System

6.6.1 Eligibility Criteria

After the subprojects identification activities are undertaken by the LGU, the Local
Chief Executive prepares a Letter of Intent (LOI) for financing of these other rural
infrastructure subprojects in their respective provinces. The LOI and list of priority
subprojects shall be accompanied by the following documents:

1. brief description of each proposed subproject under the project to include

among others, target beneficiaries, target quantities, location, estimated cost.

2. provincial SP/ municipal SB resolution expressing intent to participate in the

project and the commitment to finance the required equity contribution
(indicating amount) in cash and to provide a specified cost of maintenance
and repair after the completion of the subproject;

3. a certification from the Provincial/Municipal/City treasurer on the

availability of funds for the specified amount of equity contribution and for
the operation and maintenance of the facility;

4. a certification from the PPDC/MPDC/CPDC that the subprojects comply with

each of the selection criteria enumerated under Selection and Prioritization
Criteria in Part I;

5. Compliance checklist of LGU eligibility and selection criteria;

The first tier LGU eligibility assessment as regards to technical capacity, financial
capacity and Operation and Maintenance commitment of previously implemented
special projects of DA like PRDP, INFRES, MRDP and CHARMP must be favorable.

165
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

6.6.2 Subproject Validation

Upon receipt of the above documents, the RPCO shall review and evaluate the merits
of the proposed subprojects and conduct field validation. Technical assistance from
the PSO/NPCO may be sought for complex subprojects. A final validation report
shall be prepared by the RPCO. Attached to the validation report is a subproject
prescreening checklist such as information on the unit cost parameters, EIRR, B/C
ratio, IP and subproject environmental categorization concerns and validation of
LGU capacity.

6.6.3 Feasibility Study (FS) Preparation

Proposed subprojects that have been validated shall be subjected to Feasibility

Study (FS) analysis. The LGU shall immediately prepare the subproject feasibility
study and detailed engineering design.

The FS report shall among others, cover the following:

1. Subproject location on the provincial/municipal map;

2. Physical profile of the subproject;

3. Supply and demand study;

4. Technical analysis and engineering design

5. Benefits to be derived

6. Cost estimates

7. Financial and economic analysis

8. Implementation schedule;

9. Current structure conditions for existing facilities;

10. Environmental study;

11. Institutional arrangements;

12. Other data normally required of the kind of structure being proposed;

Additional attachments to the FS report, shall include the following:

166
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

13. Environmental and Social Management Plan (ESMP);

14. Primary survey on Displaced Persons (DP) and IPs;

15. Clearance certificate on right-of-way and damages, and FPIC for IPs; and

16. Building permit and other clearances as required by concerned regulatory

agencies.

In the event that an LGU cannot prepare the FS due to lack of in-house capability or
lack of staff, it may contract out such work to service providers. The cost of such
shall be to the account of the LGU but shall not be counted as part of the LGU’s cash
equity share for the subproject.

The FS report shall be internally reviewed and approved by the proponent LGU.

6.6.4 Subproject Detailed Engineering Preparation

The detailed engineering design forms part of the FS report. The DED activities to be
undertaken will depend on the type of subproject.

6.6.4.1 Field Survey

Technical survey shall be undertaken to gather field data for the technical design
and cost estimates of the subproject. In the conduct of the same, the stakeholders
shall be involved closely. Their local knowledge will be valuable in locating
important hazard points, boundaries, landmarks, potential ROW problems and
boundary disputes.

The field surveys for vertical structures include field data on the lot survey for the
subproject site development, geotechnical survey for the foundation design and
hydraulic or drainage assessment.

6.6.4.2 Design, Drawings, Specifications

The PEO/MEO/CEO shall proceed with the preparation of detailed design, drawings,
specifications and POW once field survey works have been completed.

The design and drawings must be technically sound and appropriate to the actual
field conditions. The technical specifications must be appropriate to the type of
subproject and must be in consonance with the specifications of relevant
government agencies and line agencies such as the Philippine Agricultural and Bio-
systems Engineering Standard (PABES), Philippine Agriculture Engineering
Standard (PAES), National Building Code of the Philippines, DPWH Standard
Specifications for Public Works Structures, 2019 edition or latest Volume III,
Buildings, Ports and Harbors, Flood Control and Drainage Structures and Water
Supply Systems, NMIS, PhilFIDA, BAI, BFAR, PhilMEC and others. The design must

167
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

adjust to the challenges brought about by climate change and the recent effect of
typhoon Yolanda which dictated the adjustment in wind load to a minimum of 300
km/hour for permanent structures.

Preparation of the technical drawing plans and signatories of the design

professional shall conform with the guidelines of the National Building Codes.

In the event that an LGU cannot prepare the detailed engineering work on its own
due to lack of in-house capability or lack of staff, it may contract out such work to
service providers. The cost for such shall be to the account of the LGU and shall not
be counted as part of the LGU’s cash equity to the subproject.

6.6.4.3 Program of Works (POW)

The Program of Work (POW) presentation generally follows the following outline:

1. General Information
a. Name of Subproject – usually named relative to the location (eg. barangay
name at start and end stations)
b. Location of Subproject – sitio, barangay, municipal, provincial
c. Subproject Category – rehabilitation (for existing) or construction (for
new opening)
d. Project Duration – in calendar days as computed and adjusted to include
Sundays and holidays and estimates for unworkable days due to
inclement weather condition
e. Implementation Mode – by contract
f. Subproject Appropriation per funding source (WB-LP, GOP, LGU)
g. Physical Targets
h. List of Minimum Equipment and Manpower Needed for the Contract
(refer to manpower and equipment utilization schedule). Specify the
minimum number and equipment specifications to include information
whether owned or leased on a 30%-70% allocation, wherein for each
equipment classification, i.e. heavy equipment (e.g. batching plant, road
grader, road roller, pay loader, back hoe, stake truck) and secondary
equipment (e.g. transit mixer, dump trucks, water truck), a minimum of
30% should be owned and 70% could be leased.
i. Technical Personnel:
Technical personnel requirement for the contractor during project
implementation.
1) Project Manager
✔ Project Manager is required for subprojects with an EPC of 50
million and above.
✔ Project Manager is also required for highly technical
subprojects such as Bridge, Cold Storage Facilities and the like.
2) Project Engineer
✔ Project Engineer is a must requirement for all types of
subproject.

168
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

3) Specialized Engineers
✔ For highly technical Value Chain Rural Infrastructures like cold
storage building / facility, specialized engineers shall be
required to the contractor. (Electrical, Mechanical, Sanitary)
4) Safety Officer
✔ The safety officer shall be mandatory in all subproject as
required by Department of Labor and Employment (DOLE).

2. Summary of Cost
a. Summary of Item Cost or Direct Cost– summary cost of materials, skilled
and unskilled labor and equipment rental cost
b. Summary of Estimated Project Cost – direct cost plus indirect cost
showing the charging or cost sharing among WB-LP, GOP and LGU.

3. Approval Sheet – the POW will be prepared by the Provincial / Municipal /

City Engineering office, Check and Reviewed by the Provincial / Municipal /
City Engineer, Recommending Approval by the P/M/CPMIU Head and
Approved by the Local Chief Executive.

The detailed estimate presentation format will also follow the following outline per
item of work:

1. Volume Computation – in excel format, tabulate the dimensions with labels

and indicate formula used in the volume or quantity computation.

2. Derivation of Materials Quantity and Cost– specify specifications and factors

used or direct counting based on the plan. The normal cost for materials
include hardware price or pick-up price and the cost of delivery or hauling to
the project site. Derivation of hauling cost is required using time spotting in
the absence of established delivery/hauling rates.

3. Derivation of Number of Equipment and Cost – use the PRDP Scale Up

provided productivity rates and rental rates. Rental rates will be based on
ACEL 2014 or use locally legislated rental rates if restricted. To be presented
are: the bare or operated rental rates to include cost for fuel, oil and
lubricants, operators and maintenance.

4. Derivation of Labor Cost – use the PRDP Scale Up labor productivity rates
(individual or gang output) and adopt the regional labor wage board rates in
the locality or locally legislated labor rates when restricted.

5. Summary of Item Cost – materials, skilled and unskilled labor, equipment

rental cost. Shown in the summary sheet is the item unit cost.

6. Project Duration:
✔ The project duration is based on the number of days accrued or as
derived based on the number of equipment to do the work for equipment

169
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

operated items of works and from the duration as derived from labor
based-equipment supported items of works. The project duration is the
total number of days defined by the critical path in the PERT-CPM / PDM
or bar chart and S-Curve and adjusted to include the accumulated
Sundays, holidays and target / pre-determined unworkable days due to
inclement weather condition.
✔ Pre-determined unworkable days due to inclement weather condition is
the number of days projected to be unworkable due to inclement weather
condition based on monthly historical experiences of the Proponent LGUs
on the frequency of typhoons and other local weather disturbances
within the planned implementation period. This means that the exposure
of its SP from inclement weather condition varies from LGU to LGU and
region to region and this has to be determined monthly.

The Program of Work (POW) presentation and detailed estimate presentation

format generally follows the outline in part 2 and Part 3 discussed in this manual.

6.6.5 Review, Evaluation and Approval

The detailed FS, DED, POW, O&M plan, Bid Documents and safeguards documents
prepared by the LGU shall be submitted to the DA RPCO for review.

The RPCO then reviews or evaluates the FS report submitted by the LGU. RPCO, PSO
and NPCO through the JTR reviews the submitted documents as per review
threshold with inputs from the conduct field visits or subproject appraisal. A
Subproject Appraisal Report (SPAR) will be prepared by upon completion of field
visit and evaluation. The subprojects are then scheduled by the RPCO for
deliberation and approval by the RPAB when all clearances are provided by the
review team.

Upon approval by the RPAB, the RPCO, PSO and NPCO will issue the NOL-1
depending on the threshold. RPCO to instructs the LGU to proceed with the
procurement preparation for subprojects approved by the RPAB and duly issued
with NOL-1.

For subprojects that needs WB review, All clearances from the review team shall be
provided to the subproject prior to the WB review

The subproject review, evaluation and approval must be anchored on the viability
indicators set by the Project in the market study, technical study, economic study,
institutional/organizational study, social and environmental study. Details of the
viability indicators are also listed in the eligibility and selection criteria.

6.7 Conditions for Fund Release

170
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

Conditions for the release of funds from the Project to the LGU, and subsequent
releases, and from the LGU to the contractors will be the same in Part III for Rural
Roads.

6.8 Subproject Execution, Completion and Turnover

6.8.1 Implementation Structure

The implementation set-up shall be as described under Organizational Structure,

Functional Responsibilities and Implementation Arrangements in Part II of this
manual.

6.8.2 Implementation Mode

The provisions under General Implementation Arrangements in Part II shall be

observed in the implementation of the Value Chain rural infrastructure subprojects.

In support of the national government’s employment generation project, Labor

Based Equipment Supported (LB/ES) methods of construction and maintenance of
rural infrastructure shall be adopted whenever possible. Adoption of such method
shall satisfy the following conditions:

1. LB/ES cost shall not be higher by more than ten (10) per cent of the
Equipment Based (EB) cost;

2. LB/ES project duration shall not be longer by more than fifty per cent (50%)
of the EB duration.

3. Employment of local workers shall not unduly impair agricultural

production; and

4. Technical quality shall be maintained.

5. As far as practicable, eighty (80) per cent of the labor force shall be taken
from the beneficiary community. Hence, beneficiaries within the community
shall be given first priority in the selection of labor force.

6. Women shall be given equal opportunity to join the labor force.

6.8.3 Procurement

Procurement for rural road and bridge subprojects shall conform to Republic Act
9184 (the Government Procurement Reform Act) in general. Bidding procedures in
particular shall be in accordance with the Philippine Bidding Documents (as
harmonized with Asian Development Bank, Japan Bank for International
Cooperation, and World Bank).

171
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

During the bidding process, the technical drawing plans to be issued to bidders shall
be the hard bound copies of the duly approved and signed plans with No Objection
from the Project (NPCO/PSO/RPCO) depending on the threshold. Sell of electronic
copy of the plan should not be permitted.

Refer to the Operations Manual of the Procurement Unit on the detailed application
of the procurement guidelines in relation to the IBUILD subproject development
cycle.

6.8.4 Subproject Supervision

Daily supervision of subproject implementation shall be the responsibility of the

Project Engineer (PE) of the contractor. Second level of project supervision and
monitoring comes from the PEO, MEO or the CEO where the SP is located. He shall
see to it that during the mobilization of the contractor at the project site, the
contractor shall install a subproject signboard indicating the project title, the name
of the implementing and executing agencies, subproject title, physical target,
contract amount, duration of construction, name of contractor and other pertinent
contract details based on COA circular no 2013-004 dated 30 January 2013

The contractor’s PE shall also ensure that all works are done according to
approved plans/drawings and specifications and timelines.

172
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

6.8.5 Quality Control

Table 6-1 Minimum Test Requirements for Value Chain Rural

Infrastructure for Some Selected Items
Items of Work Minimum Test Requirements
1. Solar Drier & Warehouse
a. Item 105: Subgrade a. For every 1,500 cu.m. or fraction thereof:
preparation ✔ 1-G, Grading test;

✔ 1-P, Plasticity test (LL, PL, PI);

✔ 1-C, Laboratory Compaction test.

For every 150 mm layer in uncompacted

depth:
✔ 1-D, Field Density Test.

✔ For every 500 sq.m. of each layer

compacted fill or fraction thereof, at
least one group of three (3) in-situ
tests. Layers shall be placed not
exceeding 200 mm in loose
measurement.
b. Item 201: Aggregate base a. For every 300 cu.m. or fraction thereof:
course ✔ 1-G, Grading test;

✔ 1-P, Plasticity test (LL,PL, PI).

For every 1,500 cu.m. or fraction thereof:

✔ 1-C, Laboratory Compaction test;

✔ 1-Q, Quality test for grading, plasticity

and abrasion.

For every layer of 150 mm of compacted

depth, at least one group of three (3) in-situ
density tests for each 500 sq.m. or fraction
thereof.
✔ Certification from supplier will suffice
or mill certificate

c. Item 404: Reinforcing steel For every 75 cu.m. or fraction thereof of fine
coarse aggregates:
✔ 1-G, Grading test.
d. Item 405: Structural For every 75 cu.m. or fraction thereof of
concrete (for building concrete mix:
footings and

173
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

superstructure, slab-on- ✔ Compressive strength test on 1-set of

ground)
three (3) concrete cylinder samples.
B. Timber Port / Rock
Causeway
a. Timber Port Piles Timber a. Timber Port
decking ✔ Tambulian or equivalent Yakal or
equivalent
b. Rock Causeway b. Rock Causeway: Rocks weighing _______
Other infrastructure types not Based on standards of relevant agencies and
mentioned above line agencies

6.8.6 Time Control

The procedures for the time control of other infrastructure subprojects shall be the
same as those of Rural Roads part III

6.8.7 Cost Control

The procedures for the cost control of other infrastructure subprojects shall be the
same as those of Rural Roads part III

6.8.8 Monitoring, Evaluation and Reporting

The procedures for the monitoring, evaluation and reporting for other
infrastructure subprojects shall be the same in part III for Rural Roads

6.8.9 Progress Billing, Completion and Turnover

The contractor shall be allowed to do monthly progress billings in the course of the
construction, the same procedure in rural roads part III.

6.9 Subproject Operation and Maintenance

The LGU is primarily responsible for the proper operation and maintenance of the
subproject and this shall be made clear right from the planning stage.

The LGU shall guarantee that the O&M of the subproject will be carried out in a
satisfactory manner as stipulated in the subproject implementation agreement. The
LGU shall therefore train the stakeholders on the correct O&M procedures
appropriate for the specific rural infrastructure.

6.10 “RASIX” for Value Chain Rural Infrastructure

As a quick reference called “RASIX” (Annex 44) defines who does what, or who is
RESPONSIBLE, who APPROVES, who SUPPORTS, and who should be INFORMED of

174
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

actions taken – along the subproject development stages from SP identification,

preparation, implementation until operation and maintenance.

6.11 IREAP Civil Works

IREAP civil works are Value Chain Rural Infrastructure support under the
Enterprise component.

Value Chain rural infrastructures such as silos, warehouses, warehouse with solar
driers, solar driers, cold storage facilities, fish hatcheries and fishponds facilities,
trading posts/centers, food terminals equipped with cold or dry storage facilities,
greenhouses, corn drying to milling centers/facilities with warehouses, silos, rice
processing centers (for drying, milling, and packaging) with logistics facilities, fish
trading centers with pre-processing and cold storage facilities, livestock breeding
and grow-out facilities, dairy barns / production facilities, meat processing plants,
dairy processing plants / centers with testing facilities, feed mill and other facilities
managed by FCAs, co-managed by the LGU and FCAs and co-managed by FCAs and
private entities are eligible IREAP funds.

There is an overlap on the value chain rural infrastructure of IBUILD and IREAP.
(silos, warehouses, warehouse with solar driers, solar driers, cold storage facilities,
fish hatcheries and fishponds facilities, trading posts/centers).

In determining if this VC infrastructure / facility will be funded under IBUILD fund

or IREAP fund, the following guidelines should be followed,

✔ The RPCO shall create a validation team to determine where the proposed VC
Infrastructure will be funded. The validation team shall validate if there is an
organized, capable and inline FCA or FCA Clusters particular to the anchor
commodity.

✔ Members of the validation team will be from IREAP, IBUILD, SES, Econ and
GGU.

✔ If there is NO organized, capable and inline FCAs or FCA Clusters particular

to the anchor commodity at the area to manage or co-manage the facility, the
subproject should be proposed to IBUILD.

✔ If there are organized, capable and inline FCAs, FCA Clusters particular to the
anchor commodity at the area to manage or co-manage the facility, the
subproject should be proposed to IREAP.

The I-BUILD component will fund the subprojects identified under I-BUILD. This are
value chain rural Infrastructure types categorized as public infrastructure and are
175
 Philippine Rural Development Project Scale-Up • Operations Manual
Rural Infrastructure Market Linkage (I-BUILD) Component

those included in the I-BUILD identification and prioritization processes. I-REAP

component will fund the value chain rural infrastructure support facilities identified
under I-REAP procedures and processes to be operated by the LGUs and FCAs
under the IREAP guidelines However, the design, review, approval and
implementation is under the I-BUILD component.

In the case where the proponent is the FCA, its capability to prepare IBUILD
documents during preparation of the detailed engineering design and its capability
to provide the construction supervision team should be assessed and will be one of
the basis in determining if the FCA is eligible to the proponent.

176