Pangalo Airport Final Report VolI Sec1to5

Republic of the Philippines
MANILA INTERNATIONAL AIRPORT AUTHORITY

MIAA Administration Building, MIA Road Pasay City, Metro Manila
ISO 9001:2000 CERTIFIED
Cert. No. TV 100 05 0318
Feasibility Study for the Panglao Island Airport Development Project
Executive Summary
Background
The Government has made the development of a new Panglao Island Airport a priority project under the current Medium-term Development Plan, with the Manila International Airport Authority (MIAA) designated as the lead agency in the preparation and development of the new airport with international standard to replace the existing facilities in the existing Tagbilaran Airport. A feasibility study for the establishment of the new airport was completed in 2000 and was further updated under an advanced engineering study undertaken in 2001. An ECC was subsequently issued following the same right-of-way (ROW) alignment defined in the earlier studies. Since then, the proposed Panglao Airport Development Project has evolved with land acquisition activities undertaken following a new alignment. In this regard, a new study was commissioned to update the information about the project, validate the findings in the earlier studies and address the earlier issues raised by government reviewing authorities.
Objectives
The project aims to develop a new airport facility in Panglao Island, Province of Bohol to comply with domestic and international standards for operational safety and efficiency. The project is envisioned to open up the entire Region VII to more economic activities and enhance the tourism potential of the province of Bohol.
Present Condition
The present facilities at the Tagbilaran Airport, suffer from physical inadequacies characterized by: a) inadequate separation distance between airfield obstacles and the runway (insufficient runway strip); b) insufficient apron space to accommodate wide-bodied aircraft and allow for efficient maneuvering; c) absence of precision approach system for improved operational reliability fit for an international airport; d) inadequate pavement strength for large aircraft; e) inadequate terminal building facilities resulting in congestion and passenger discomfort during the peak-hour; and f) absence of cargo terminal building and related facilities, among others. The difficulty in addressing the above issues at the present site, without incurring a huge investment and dislocation cost, is the compelling reason for developing a new airport elsewhere.
Project Components
As indicated in the airport master plan, the components of the project include the following:
Executive Summary Page 1
Short to Medium-Term Development

a. b. c. d. e. f. g. h. i. j. k. l. m. n. o. p. Land acquisition of 215.95 hectares for airport development, inclusive of road right-of-way for airport access Runway : 2,500 meters x 45 meters with 7.5 meters with paved shoulders on each side Aircraft Parking Area: 250 meters x 161 meters Two stub taxiways from the apron to the runway 265.5 meters x 23 meters with paved shoulders on each side. Passenger Terminal Building (7,600 sq.m) Cargo terminal Building (978 sq.m.) Administration Building (1,000 sq.m.) Air Traffic Control Tower Crash-Fire-Rescue Facility (for Category 6) Airport Maintenance Building Airport utilities such as Water Supply, Drainage System etc. All necessary Visual and Navigational Aids Equipment for Precision Cat 1 Power House and Installation of Standby Generator Airport security fence. Airport perimeter road (9.145 kms) Airport access road ( 3.516 kms)
Long-term Development
a. Extension of runway to 3,400 meters for long-term development ent phase) b. Expansion of Terminal Building (20,000 sq.m total area) c. Expansion of the apron to accommodate a total of seven (7) aircraft inclusive of an area for general aviation d. Expansion of Cargo Building (1,940 sq.m. total) e. Expansion of Administration Building (1,200 sq.m. total) f. Improvement of Crash-Fire-Rescue Facility (to Category 9)
Implementation Schedule
The project is proposed to be implemented over a period of three (3) years commencing in 2007. Review and approvals are expected to be undertaken in late part of 2007 to be followed immediately by the detailed design of the project components.
Traffic Forecast
Using updated macro-economic indicators, the following traffic forecasts have been established:
Annual Domestic Air Passenger Movements (000)
Year 2007 2010 2015 2020 2025 2030 2035 2010-2015 2010-2020 2010-2035 Low 336 403 519 627 716 782 828 5.2% 4.5% 2.9% Medium 336 437 656 938 1,262 1,590 1,882 8.5% 7.9% 6.0% High 336 525 992 1,561 2,039 2,333 2,479 13.6% 11.5% 6.4%
Average Compound Growth Rate
Potential International Air Passenger Movements (000)

Potential International Air Passenger Traffic (Arrivals)
Year
Foreign Visitor Arrivals by Air
Foreign Visitor Arrivals via Domestic Flights
2011 (Projects Opening Year) 2015 2020 2025 2030 2035
60.3 83.0 123.5 183.8 273.6 407.1
54.7 75.5 107.9 145.1 182.8 216.5
5.7 7.5 15.6 38.7 90.7 190.7
Annual Potential Cargo (kgs)

Year 2010 2015 2020 2025 2030 2035 2010-2015 2010-2020 2010-2035 Low 5,647,390 7,271,012 8,780,347 10,024,553 10,952,517 11,594,236 5.18% 4.51% 2.92% Medium 6,464,131 8,411,727 10,752,932 13,569,982 17,019,033 21,336,441 5.41% 5.22% 4.89% High 6,872,501 8,982,084 11,739,225 15,342,697 20,052,291 26,207,543 5.50% 5.50% 5.50%
Average Annual Compounded Growth Rate
Annual Aircraft Movements

Year Gen Aviation Domestic Scheduled Potential International Total 2010 984 4,161 135 5,280 2015 977 4,992 179 6,148 2020 952 7,072 372 8,396 2025 713 7,176 520 8,409 2030 533 9,048 1,144 10,725 2035 399 9,256 1,976 11,631
Using these forecasts, preliminary designs of airport facilities using design target year 2020 (medium-term) were established as bases of the budgetary estimate for the project package. The basic elements of the airport master plan are summarized in the succeeding table :
Present Condition as of 2006 1. Annual Passengers ('1000) Domestic Potential International 2. 3. Annual Cargo (tons) Annual Aircraft Movements Domestic Potential International 3,380 2,194 240 2015 671 656 15 8,412 6,148 5,969 179 Future Requirements 2020 969 938 31 10,753 8,396 8,024 372 2035 2,264 1,882 381 21,336 11,631 9,655 1,976
Item

Present Condition as of 2006 4. 5. 6. 7. 8. 9. 10. Peak-Hour Passengers (one-way) Peak-Hour Commercial Aircraft Movements (one-way) Largest Aircraft Longest Haul Aerodrome Reference Code Operational Category Runway Length (m) Width (m) 11. Runway Strip Length (m) Width (m) 12. 13. 14. 15. 16. 17. Taxiway Aircraft Stands Passenger Terminal Building (Minimum req' area, sq.m.) Dedicated Cargo Terminal Building Administration Building Crash-Fire-Rescue Facilties Building Area Site Area 19. 20. 21. Car Park (no of slots) Air Navigation Systems Rescue and Fire Fighting 1842.3 147.5 2 stub 3 850 na Integrated with PTB Cat 5 144 na 15 NonInstrument Category 4 2,800 300 2 new stub 3 5,200 1,000 Cat 6 500 1,200 111 Precision Cat 1 Category 6 2,800 300 2 stub 4 7,600 978 1,000 Cat 6 500 1,200 162 Precision Cat 1 Category 6 3,520 300 parallel 7 20,000 1,940 1,200 Cat 9 1,000 3,000 370 Precision Cat 1 Category 9 298 2 A319/B737 Manila 3C NonInstrument 17/35 1,779 30 2015 334 3 A320 Manila 4C Precision Cat 1 03/21 2,500 45
Future Requirements 2020 485 4 A320 Manila 4C Precision Cat 1 03/21 2,500 45 2035 1,109 7 B747 Regional (Asia) 4E Precision Cat 1 03/21 3,400 45
Item
Implementation Strategy and Project Cost Investment

Considering that the viability of the project hinges heavily on the extent to which the forecasts will materialize (a function of how robust the economy will grow in the future) it is desirable to plan the airport development using conservatively lower standards but with provisions for easy expansion/ adjustments. The project package is defined using 2020 (medium-term) as the target year for the physical airport components. For long-term development, which will dictate future space allocation, 2035 shall be taken as the target year.
The total project cost for the short/medium-term development period is estimated at PhP 4.04 Billion, of which PhP3.00 Billion is the total direct cost of airport development works. The breakdown of the costs is as follows:
PARTICULARS 1 2 3 4 5 FIRE FIGHTING EQUIPMENT 6 AIRPORT MAINTENANCE EQUIPMENT 7 DEMOLITION OF EXISTING HOUSES 8 Sub -Total of 1 to 8 ROW/REPLACEMENT COSTS 9 DETAILED ENGINEERING DESIGN (4% of 1 - 7) 10 CONSTRUCTION SUPERVISION (6% of 1 - 7) 11 PHYSICAL CONTINGENCIES (7% of 1 - 8) 12 PRICE CONTINGENCIES (2% p.a. FX; 5% p.a. LC) 13 PROJECT ADMINISTRATION COST (3% of Project Cost) 14 GRAND TOTAL ---99,206,017 4,041,199,270 271,537,889 210,442,566 180,326,915 120,217,943 153,145,568 873,796 3,006,322,372 16,124,144 50,051,160 PRELIMINARIES AND GENERAL REQUIREMENTS CIVIL WORKS BUILDINGS AND STRUCTURES (INCLUDING AIRPORT UTILITIES) LIGHTING AND NAVIGATIONAL AIDS SPECIAL EQUIPMENT Total Cost (P) 42,775,791 1,463,433,633 853,487,033 469,541,016 110,035,800
Sources of Funds
The investment cost shall be financed wholly through government funds, specifically through a combination of funds from MIAA, DOTC and other national government (NG) agencies, per Memorandum Order (MO) No. 178 issued by President Gloria MacapagalArroyo on 04 July 2005. MIAA has committed to provide funds for the development of the proposed Panglao Airport Project, to be drawn from the Authoritys internally generated cash. MIAA initially committed to provide Php2.9 billion, to be sourced from its receivables from PAL (which is approximately PhP3.96 billion according to COA audit report as of December 31, 2005). The cost of land acquisition and related activities shall be financed through DOTC funds. The study assumed that the expenditure requirements for the implementation of the rest of the cost components, comprising the bulk of the total project investment cost, shall be financed first from the MIAA funds in the amount of Php2.9 billion until such amount is fully utilized. (Such amount, however, may still change after the MIAA Corporate Board has officially decided on the amount to be allocated for the project.) The remaining expenditure requirements shall then be financed from (NG) funds, which may be drawn from the budget of other participating agencies.
Post-Construction Stage
Upon completion of the project, the new Panglao Airport shall be managed, operated and maintained by the ATO. This setup is in line with the mandate of the ATO and not inconsistent with the intention of Executive Order No. 341 series of 2004 (Reorganizing the Manila International Airport Authority, Modifying Its Powers and Functions, and Authorizing and Directing the MIAA to Exercise Administrative Supervision and Control Over All International Airports in the Philippines). MIAAs substantial contribution to the financing of the new Panglao Airport can be offset through appropriate debits to its remittance to the national government, as supported by EO 298 s. 1983 (MIAAs Charter), RA 7656 (Dividends Law) and the New Government Accounting System (NGAS).
Economic Evaluation Assumptions

The economic benefits considered in the analysis are: (i) the direct employment benefits of the project; (ii) the avoided cost of travel diversion; (iii) the output effects of incremental tourism; (iv) the avoided cost of aircraft delays if the airport were to operate in a less constrained environment; and (v) the economic value of land in Tagbilaran that will be freed up when the airport is transferred to Panglao. Two traffic scenarios are used in the evaluationScenario 1, assuming that potential international traffic will operate in the new airport upon completion of the project (based on the projected foreign visitor arrivals in the recently released Bohol Tourism Master Plan and the Department of Tourism-Region VIIs current talks with potential chartered flights), and Scenario 2, assuming that potential international traffic will be realized starting in 2025 when economies of scale will enable regular (not chartered) flights. Based on discussions with the ATO and the DOT, the scenario with earlier arrivals of direct international flights is the more likely scenario.
Results
Based on the result of the analysis, the Panglao Airport Development Project is economically viable. In Scenario 1, the NPV is positive at Php 3,084 million, the EIRR is 23.6% and greater than the 15% social discount rate, and the B-C ratio is 2.1. In Scenario 2, the NPV is Php2,313 million, the EIRR is 21.3% and the B-C ratio is 1.9. The same runs for the Tagbilaran Airport Redevelopment option, on the other hand, proved that this option will be marginally viable under Scenario 1 (international traffic by 2011) and not viable under Scenario 2. The viability indicators under Scenario 1 are lowthe EIRR is 16.2%, the NPV is Php 749 million and the B-C ratio is 1.2. The viability indicators under Scenario 2 failed to pass the hurdle levels the EIRR is 14.97% and below the hurdle rate of 15%, the NPV is negative at Php21 million, and the B-C ratio is less than one at 0.996. Thus, the Panglao Island Airport Development Project is not only more technically viable than the Tagbilaran Airport Upgrading option, it is also more economically viable. In addition, the investment requirement in Panglao Island is at least PHP 2 billion less than the PHP6.52 billion requirement in developing the existing Tagbilaran Airport to comply with international standards of safety and efficiency.
Financial Evaluation Assumptions

The sources of operating revenues are based on the ATO tariff structure. The financial evaluation considered the more likely traffic scenario using medium-growth assumption. Five tariff application scenarios are evaluated, namely: Base Scenario applying ATO fees, no increases are assumed Davao International Airport Fees Scenario applying the revised fees in the new Davao International Airport, no increases are assumed 10% FIRR Scenario applying ATO fees, simulating the required increases in order to achieve an FIRR of 10% 15% FIRR Scenario applying ATO fees, simulating the required increases in order to achieve an FIRR of 15% 20% FIRR Scenario applying ATO fees, simulating the required increases in order to achieve an FIRR of 20%
Results
Applying the assumptions under the different scenarios described above, the results of financial evaluation from the all-capital (government equity) point of view are summarized as follows:
Base case Parameters: tariff increase domestic passenger terminal fee (Php), opening year other airport charges, opening year Viability Indicators: FIRR NPV (Php million) 0% 20.00 current ATO fees 2.69% (1,539) Davao airport fees 0% 200.00 current DIA fees Scenarios 10% FIRR 60.97% 32.19 15% FIRR 123.24% 44.65 20% FIRR 205.04% 61.01
60.97% higher 123.24% higher 205.04% higher than current than current ATO than current fees ATO fees ATO fees 10% 1,797 15% 7,478 20% 19,450
6.39% (254)
Measured against a hurdle rate of 7% FIRR, the results show that the Panglao Island Airport Development project would not be financially viable if the current ATO fees are applied (FIRR is 2.69%). The project becomes financially viable if the fees are raised a little higher than the recently adjusted tariff in Davao International Airport (DIA). The FIRR under the current DIA tariff structure is 6.39%. It would take more than a 60 % increase in ATO fees for the project to achieve an FIRR of more than 10%. In all the scenarios evaluated, the opening year domestic passenger terminal fee is lower than the Php 69.50 willingness-to-pay fee established in the passenger survey.
Environmental Review
The Environmental Impact Statement (EIS), the basis of the environmental clearance certificate (ECC) issued in 2003, showed that the majority of adverse impacts of the project on the physical, biological and social environment will be incurred during the construction phase. These impacts, however, are considered of low to medium significance and can be mitigated. The Environmental Clearance Certificate (ECC) issued by DENR in June 2003 has a validity of five years, requiring commencement of construction on or before June 2008, after which time the ECC shall be revoked unless an extension from the DENR is sought. The project implementation timetable implies that the start of construction activities for the Panglao Island Airport project will likely be past the specified deadline. Thus, the project proponent must (i) apply for relief from its ECC commitment due to the nonimplementation of the project, and (ii) ask for an extension of the ECC validity and/or amendments thereto. DOTC shall be guided by DENR Department Administrative Order (DAO) 2003-30 Procedural Manual in applying for an ECC amendment/extension.
Conclusion
Being a greenfield project, the proposed investment at the new Panglao Island Airport will generate both positive and negative impacts on the existing environment. The perceived negative impacts are mostly temporary and are negated by the socio-economic gains from the project. Engineering solutions and mitigating measures have been identified to address the identified issues. The project is technically feasible and economically viable.
TABLE OF CONTENTS
Page 1. INTRODUCTION ..............................................................................................................1-1 1.1 PROJECT CONTEXT .................................................................................................1-1 1.1.1 1.1.2 1.1.3 1.1.4 1.2.1 1.2.2 1.2.3 Background.....................................................................................................1-1 Objectives of the Study...................................................................................1-1 Scope of the Services ......................................................................................1-1 Organization of the Report..............................................................................1-2 Demographic Condition..................................................................................1-3 Economic Structure.........................................................................................1-6 Tourism Demand ............................................................................................1-8
1.2 SOCIO-ECONOMIC CONDITION AT THE PROJECT LOCATION......................1-3
1.3 ECONOMIC DEVELOPMENT CONTEXT ............................................................1-10 1.4 INSTITUTIONAL AND REGULATORY CONTEXT ............................................1-13 1.4.1 1.4.2 2. Institutional Framework................................................................................1-13 Environmental Framework ...........................................................................1-15
CONDITIONS AT THE EXISTING AIRPORT AND ITS ENVIRONMENT ............2-1 2.1 THE ENVIRONMENTAL CONDITIONS .................................................................2-1 2.1.1 2.1.2 2.1.3 2.2.1 2.2.2 2.3.1 2.3.2 2.3.3 The Natural Environment ...............................................................................2-1 Social Environment.........................................................................................2-2 Land Use .........................................................................................................2-3 Air Transportation Service..............................................................................2-4 Air Traffic Record...........................................................................................2-4 The Existing Facilities ....................................................................................2-5 Assessment of Selected Airport Components...............................................2-10 Problems of the Existing Airport ..................................................................2-17
2.2 AIR TRAFFIC VOLUMES AND SERVICES............................................................2-4
2.3 EXISTING CONDITION OF THE FACILITIES .......................................................2-5
3.
AIR TRAFFIC DEMAND FORECAST..........................................................................3-1 3.1 THE FORECAST METHODOLOGY.........................................................................3-1 3.1.1 3.1.2 3.2.1 3.2.2 3.2.3 3.2.4 Previous Studies..............................................................................................3-1 The Forecasting Exercise................................................................................3-3 Annual Air Passenger Traffic Forecast...........................................................3-7 Forecast of Annual Air Cargo Movements .....................................................3-8 Forecast of Aircraft Movements .....................................................................3-9 Peaking Characteristics...................................................................................3-9
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3.2 THE FORECAST RESULTS ......................................................................................3-7
4.
AIRPORT FACILITY REQUIREMENTS......................................................................4-1 4.1 ELEMENTS OF PRELIMINARY LAYOUT PLAN..................................................4-1 4.1.1 4.2.1 4.2.2 4.2.3 4.2.4 4.3.1 4.3.2 4.3.3 Planning Criteria and Parameters....................................................................4-1 General............................................................................................................4-2 Design Aircraft ...............................................................................................4-3 Aerodrome Reference Code............................................................................4-3 Approach Category of Runway ......................................................................4-4 Runway Strip and Safety Area........................................................................4-7 Obstacle Limitation Surfaces..........................................................................4-7 Runway Length...............................................................................................4-7 4.2 PLANNING PARAMETERS ......................................................................................4-2
4.3 RUNWAY STRIP AND OBSTACLE LIMITATION SURFACES ...........................4-7
4.4 PASSENGER AND CARGO TERMINAL BUILDING ............................................4-8 4.5 OTHER BUILDINGS ..................................................................................................4-8 4.5.1 4.5.2 4.5.3 Control Tower Building..................................................................................4-8 Administration Building .................................................................................4-9 Fire Station Building.......................................................................................4-9
4.6 AIR NAVIGATION.....................................................................................................4-9 4.7 UTILITIES AND OTHER SUPPORT INFRASTRUCTURE ....................................4-9 4.7.1 4.7.2 4.7.3 4.7.4 4.7.5 4.7.6 5. Water Supply System......................................................................................4-9 Storm Water Drainage ..................................................................................4-10 Sewage Treatment Plant (STP).....................................................................4-11 Sanitary Sewer System .................................................................................4-13 Plumbing System ..........................................................................................4-13 Solid Waste Disposal ....................................................................................4-14
MASTER PLANNING FOR THE NEW PANGLAO ISLAND AIRPORT .................5-1 5.1 IDENTIFICATION OF NEW AIRPORT SITE ..........................................................5-1 5.1.1 5.1.2 Alternative Sites..............................................................................................5-1 Final Site .........................................................................................................5-2
5.2 THE PHYSICAL MASTER PLAN CONCEPT..........................................................5-5 5.3 AIR NAVIGATION SYSTEM....................................................................................5-8 5.4 AIRPORT ACCESS.....................................................................................................5-9 5.5 PROPOSED AIRFIELD LAYOUT AND OBSTACLE LIMITS .............................5-11 6. BUSINESS DEVELOPMENT OPTIONS........................................................................6-1 6.1 THE SOCIO-ECONOMIC ENVIRONMENT ............................................................6-1 6.1.1 6.1.2 The Economic Context ...................................................................................6-1 The Challenges and Opportunities..................................................................6-1
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6.2 RELATIONSHIP BETWEEN AVIATION AND PANGLAOS ECONOMIC DEVELOPMENT ........................................................................................................6-3 6.2.1 6.3.1 6.3.2 6.3.3 Panglaos Land Use Development Plan..........................................................6-3 Airport Operations ..........................................................................................6-4 Aviation-Related Industries ............................................................................6-6 Aviation-related Estates ..................................................................................6-6 6.3 MARKET SUPPORT TO PANGLAO ISLAND AIRPORT ......................................6-4
6.4 THE WAY FORWARD ..............................................................................................6-7 7. LAND ACQUISITION AND RESETTLEMENT REQUIREMENTS .........................7-1 7.1 ONGOING LAND ACQUISITION ACTIVITIES .....................................................7-1 7.1.1 7.1.2 7.2.1 7.2.2 7.2.3 7.2.4 7.2.5 7.2.6 7.2.7 8. Status...............................................................................................................7-1 Inventory Survey.............................................................................................7-1 Objectives of the Indicative LARP .................................................................7-5 Legal and Policy Frameworks ........................................................................7-5 Defining the Scope of Land Acquisition.........................................................7-6 Compensation Policy Framework and Valuation Method ..............................7-6 Organizational Framework for the LARP.....................................................7-10 Design Framework for Relocation of Informal Settlers................................7-11 Budget Estimation for Land Acquisition and Resettlement..........................7-12
7.2 NEED FOR A LAND ACQUISITION AND RESETTLEMENT PLAN ...................7-5
IMPLEMENTATION STRATEGY .................................................................................8-1 8.1 PROJECT COST..........................................................................................................8-1 8.1.1 8.1.2 8.1.3 8.1.4 Development Cost Components .....................................................................8-1 Assumptions in Cost Estimation .....................................................................8-4 Comparison with the Tagbilaran Airport Redevelopment Option................8-10 Operating and Maintenance Costs for the Proposed Panglao Island Airport...........................................................................................................8-12 Implementation Schedule..............................................................................8-14 Cash Disbursement Schedule........................................................................8-15 Sources of Funds...........................................................................................8-16 Institutional and Organizational Framework for Project Implementation .............................................................................................8-21
8.2 PROJECT IMPLEMENTATION AND CASH DISBURSEMENT SCHEDULES .8-14 8.2.1 8.2.2 8.3.1 8.4.1 9.
8.3 PROJECT FINANCING PLAN.................................................................................8-16 8.4 IMPLEMENTATION PROGRAM ARRANGEMENTS..........................................8-21
VIABILITY REVIEW .......................................................................................................9-1 9.1 ECONOMIC ANALYSIS............................................................................................9-1 9.1.1 9.1.2 Economic Costs ..............................................................................................9-1 Economic Benefits ..........................................................................................9-2
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9.1.3 9.1.4 9.2.1 9.2.2 9.2.3
Economic Evaluation ....................................................................................9-11 Economic Sensitivity Analysis .....................................................................9-18 Financial Costs..............................................................................................9-20 Projection of Operating Revenues ................................................................9-20 Results of the Financial Evaluation ..............................................................9-25
9.2 FINANCIAL ANALYSIS..........................................................................................9-20
9.3 CONCLUSION ..........................................................................................................9-34 10. ENVIRONMENTAL REVIEW ......................................................................................10-1 10.1 EXISTING ENVIRONMENT AT THE PROPOSED LOCATION .........................10-1 10.1.1 Summary of Existing Conditions..................................................................10-1 10.2 LOCAL GEOLOGY AND TERRAIN FEATURES .................................................10-4 10.2.1 General Characteristics .................................................................................10-4 10.2.2 Ground Penetrating Radar Survey Results....................................................10-5 10.2.3 DATA DEDUCTION AND REDUCTION .................................................10-8 10.2.4 Pertinent Design And Construction Considerations ...................................10-10 10.3 ENVIRONMENTAL AND SOCIAL CONCERNS ................................................10-12 10.3.1 Environmental Impacts during Project Construction..................................10-12 10.3.2 Environmental Impacts During Project Operation......................................10-13 10.3.3 ENVIRONMENTAL CLEARANCE CERTIFICATE AMENDMENT/EXTENSION ...................................................................10-16
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LIST OF FIGURES Figure 1.2-1 Vicinity Map of the Existing and Proposed Airport Sites ........................................1-5 Figure 1.2-2 Real Gross Value Added by Production Sector in Region 7 ....................................1-7 Figure 2.3-1 Layout of Existing Tagbilaran Airport .....................................................................2-9 Figure 2.3-2 Existing Conditions of Facilities and Operational Restrictions (Airfield)..............2-14 Figure 2.3-3 Existing Conditions of Facilities and Operational Restrictions (Terminal Building )...........................................................................................................2-15 Figure 2.3-4 Existing Conditions of Facilities and Operational Restrictions (Other Buildings) ..........................................................................................................2-16 Figure 3.1-1 Comparison of Existing Forecast with Actual Air Passenger Movements...............3-3 Figure 3.1-2 Historical Annual Passenger Movements at Tagbilaran Airport .............................3-6 Figure 3.2-1 Updated Forecast of Annual Domestic Passenger Movements (000) .....................3-7 Figure 3.2-2 Typical Busy Day (Passenger Movements, December 2006) ...............................3-9 Figure 3.2-3 Typical Busy Day (Aircraft Movements, December 2006) ..................................3-9 Figure 4.2-1 Wind Rose Analysis .................................................................................................4-6 Figure 4.3-1 Runway Length Requirements .............................................................................4-8 Figure 5.1-1 Potential Sites for Airport Development ..................................................................5-1 Figure 5.1-2 Satellite Imagery of the Airport Site.........................................................................5-3 Figure 5.1-3 Topographic Features ...............................................................................................5-4 Figure 5.2-1 Layout of Key Landside and Airside Facilities at the New Panglao Island Airport .................................................................................................................5-6 Figure 5.2-2 Aerial Perspective of the Proposed Sirte Development at the New Panglao Airport .................................................................................................................5-7 Figure 5.4-1 Airport Access Road (Option2) ..............................................................................5-10 Figure 5.5-1 Airfield Layout of Proposed Master Plan (Phased Development)..........................5-12 Figure 5.5-2 Aerodrome Obstacle Limits (Ultimate Development Phase ) ................................5-13 Figure 6.4-1 A Proposed Conceptual Land Use Development Scheme ........................................6-8 Figure 6.4-2 Building Height Limitations ....................................................................................6-9 Figure 7.1-1 Inventory of Structures Part 1.................................................................................7-2 Figure 7.1-2 Inventory of Structures Part 2.................................................................................7-3 Figure 7.1-3 Inventory of Structures Part 3.................................................................................7-4 Figure 8.4-1 Existing Organizational Setup in Tagbilaran Airport .............................................8-26 Figure 8.4-2 Proposed Expanded Organizational Structure ........................................................8-28 Figure 10.1-1Project Location.....................................................................................................10-1 Figure 10.2-1 Simplified geologic map of project area...............................................................10-5 Figure 10.2-2 GPR SURVEY PLAN ..........................................................................................10-7 Figure 10.2-3 ENHANCED LATERAL SCAN IMAGES .......................................................10-10 Figure 10.3-1 Noise Contour (2020) ........................................................................................10-15
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LIST OF TABLES Table 1.2-1 Region 7 Population and Population Growth Rates...................................................1-3 Table 1.2-2 Real Gross Domestic Product of Region 7, 1991-2005 .............................................1-6 Table 1.2-3 Distribution of Travelers to Region 7s Provinces, 2000-2006 .................................1-8 Table 1.2-4 Percentage Distribution of Foreign Travelers in Region 7 ........................................1-8 Table 1.2-5 Visitor Arrival in Region 7 (2005-2006) ...................................................................1-9 Table 1.4-1 A Summary of Relevant Legal Issuances ................................................................1-13 Table 1.4-2 Key Environmental Issuances ..................................................................................1-15 Table 2.1-1 Land Use and Vegetation Cover of Bohol .................................................................2-3 Table 2.2-1 Current Air Transport Service at Tagbilaran Airport................................................2-4 Table 2.2-2 Air Passenger Traffic in Airports Under Area Center 1............................................2-4 Table 2.2-3 Historical Traffic Volumes at Tagbilaran Airport.....................................................2-5 Table 2.2-4 Tagbilarans Share of National Traffic .....................................................................2-5 Table 2.3-1 Inventory of Existing Facilities at Tagbilaran Airport, Part 1...................................2-6 Table 2.3-2 Inventory of Existing Facilities at Tagbilaran Airport, Part 2..................................2-7 Table 2.3-3 Inventory of Existing Facilities at Tagbilaran Airport, Part 3...................................2-8 Table 2.3-4 Assessment of Selected Airport Components ..........................................................2-10 Table 2.3-5 Assessment of Selected Airport Components, Part 2...............................................2-11 Table 2.3-6 Assessment of Selected Airport Components, Part 3...............................................2-12 Table 2.3-7 Assessment of Selected Airport Components, Part 4...............................................2-13 Table 3.1-1 JICA Studys Domestic Traffic Forecast for the Philippines.....................................3-1 Table 3.1-2 JICA Studys Domestic Traffic Forecast for Tagbilaran Airport .............................3-2 Table 3.1-3 JICA Studys Simulation of Busy-Day and Peak-Hour Aircraft Movements in Tagbilaran Airport...........................................................................................3-2 Table 3.1-4 Real Gross Domestic Product ...................................................................................3-3 Table 3.1-5 Actual Real GDP Growth and MTPDP Targets (in %) ............................................3-4 Table 3.1-6 Forecasts of Philippine GDP Growth, Various Sources (in %) ................................3-4 Table 3.1-7 GDP Projections........................................................................................................3-5 Table 3.2-1 Forecast of Annual Domestic Air Passenger Volume (000)....................................3-7 Table 3.2-2 Potential International Passenger Movements (000) ................................................3-8 Table 3.2-3 Forecast Annual Air Cargo Movement (kgs)............................................................3-8 Table 3.2-4 Forecast of Annual Aircraft Movements....................................................................3-9 Table 4.1-1 Planning Criteria and Parameters...............................................................................4-1 Table 4.1-2 Planning Criteria and Parameters...............................................................................4-2 Table 4.2-1 Design Aircraft for Panglao Island Airport................................................................4-3 Table 4.2-2 Aerodrome Reference Code Of ICAO Annex 4 ........................................................4-4 Table 4.2-3 Wind Direction and Speed (m/s)...............................................................................4-4 Table 4.2-4 Normal Values ..........................................................................................................4-5 Table 4.2-5 Climatological Extremes...........................................................................................4-5 Table 4.4-1 Estimated Cargo Volume-to-Floor Ratio ...................................................................4-8 Table 5.1-1 Alternative Sites Evaluation.......................................................................................5-2 Table 6.1-1 Inventory of Panglao and Bohol Tourism Facilities and Amenities ..........................6-1 Table 6.1-2 Challenges and Opportunities ....................................................................................6-2
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Table 6.2-1 Existing and Proposed Land Use ...............................................................................6-3 Table 7.2-1 Matrix of Entitlements ...............................................................................................7-8 Table 7.2-2 Working Committees for Land Acquisition and Relocation Activities ...................7-10 Table 8.1-1 Total Project Investment Cost (in Php)......................................................................8-6 Table 8.1-2 Investment Cost Breakdown by Items for Shadow Pricing (in million Php).............8-7 Table 8.1-3 Cost of Upgrading the Existing Tagbilaran Airport (in Php)...................................8-10 Table 8.1-4 Comparison of Investment Costs, in Php.................................................................8-11 Table 8.1-5 Comparison of Quantities ........................................................................................8-12 Table 8.1-6 Comparison of Unit Costs (Average), in Php ..........................................................8-12 Table 8.1-7 Operating and Maintenance Costs, current prices (in Php)......................................8-14 Table 8.2-1 Proposed Project Implementation Schedule.............................................................8-15 Table 8.2-2 Annual Cash Disbursement Schedule (in Php) ........................................................8-15 Table 8.3-1 Proposed Financing Plan (in Php)...........................................................................8-19 Table 8.3-2 Annual Cash Disbursement Schedule By Funding Source (in Php) ........................8-20 Table 9.1-1 Investment Cost in Economic Prices.........................................................................9-2 Table 9.1-2 Direct Employment Benefits (million PHP) .............................................................9-2 Table 9.1-3 Comparison of Travel Routes ....................................................................................9-3 Table 9.1-4 Additional Cost Incurred Due to Travel Diversion...................................................9-3 Table 9.1-5 Labor productivity, 2004 and 2005...........................................................................9-4 Table 9.1-6 Trip Purposes Established by the Passenger Survey.................................................9-4 Table 9.1-7 Supply and Use Table of Tourism and Tourism-Related Industries in the Philippines, 1998 .................................................................................................9-6 Table 9.1-8 Leontief Matrix ..........................................................................................................9-7 Table 9.1-9 Domestic Travelers Average Expenditure and Length of Stay.................................9-8 Table 9.1-10 Foreign Visitors Expenditure and Length of Stay in 2005 ....................................9-8 Table 9.1-11 Aircraft delay costs in Europe................................................................................9-10 Table 9.1-12 Estimated aircraft delay costs by low-cost carriers in Asia ...................................9-10 Table 9.1-13 Estimates of Aircraft Delays (Daily Average) .......................................................9-11 Table 9.1-14 Economic Evaluation Results-Panglao Island Airport Development Project, Scenario 1..........................................................................................................9-14 Table 9.1-15 Economic Evaluation Results-Panglao Island Airport Development Project, Scenario 2..........................................................................................................9-15 Table 9.1-16 Economic Evaluation Results-Tagbilaran Airport Redevelopment Option, Scenario 1..........................................................................................................9-16 Table 9.1-17 Economic Evaluation Results-Tagbilaran Airport Redevelopment Option, Scenario 2..........................................................................................................9-17 Table 9.1-18 Sensitivity to Increases in Costs and Reduction in Benefits ..................................9-18 Table 9.1-19 Sensitivity to Changes in the Value of Land.........................................................9-19 Table 9.2-1 Existing ATO Airport Tariff ....................................................................................9-20 Table 9.2-2 Aircraft Movements by Aircraft Size, Domestic Flights ........................................9-22 Table 9.2-3 Aircraft Movements by Aircraft Size, International Flights ...................................9-23 Table 9.2-4 Aircraft Take-off Weights and Turn-Around Times...............................................9-23 Table 9.2-5 Summary of Financial Evaluation Results...............................................................9-25 Table 9.2-6 Financial Evaluation Base Scenario......................................................................9-26 Table 9.2-7 Financial Evaluation Applying Davao Airport Fees .............................................9-27 Table 9.2-8 Financial Evaluation 10% FIRR Scenario ............................................................9-28
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Table 9.2-9 Financial Evaluation 15% FIRR Scenario ............................................................9-29 Table 9.2-10 Financial Evaluation Results - 20% FIRR Scenario .............................................9-30 Table 9.2-11 Schedule of Fees under the 10% FIRR Scenario ...................................................9-31 Table 10.1-1 Summary of Environmental Conditions in Panglao Island....................................10-2 Table 10.2-1 SCAN LINE SCHEDULE AND ALLOCATION.................................................10-6 Table 10.3-1 Predicted Noise Impact Reach ............................................................................10-14 Table 10.3-2 Noise Levels Recommended by NPCC ...............................................................10-14
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1. 1 SECTION
INTRODUCTION
1.1
1.1.1
PROJECT CONTEXT
Background The need to develop bigger capacities for handling larger volumes of air passengers in the existing Tagbilaran Airport has been justified by the significant increase in tourism activity in the province of Bohol, where Panglao Island, a major tourist destination, is located. The expansion of the existing facilities at Tagbilaran Airport, however, is constrained by the physical and geographic features of the surrounding area, which make airfield expansion very expensive and almost physically impossible. This condition has encouraged diseconomies in aviation operation, which hinder further economic growth of the province. The entire provincial economy has not been able to take advantage of growing opportunities in view of this major constraint in transportation. In view of this, the Government has made the development of a new Panglao Island Airport a priority project under the current Medium-term Development Plan. To oversee the development of the new airport, The Office of the President has designated the Manila International Airport Authority (MIAA) as the lead agency in the preparation and development of the new airport with international standard to replace the existing facilities in Tagbilaran. A feasibility study for the establishment of the new airport was completed in 2000 and was further updated under an advanced engineering study undertaken in 2001. An ECC was subsequently issued following the same right-of-way (ROW) alignment defined in the earlier studies. Since then, the proposed Panglao Airport Development Project has evolved with land acquisition activities undertaken following a new alignment. In this regard, a new study is being commissioned to update the information about the project, validate the findings in the earlier studies and address the issues raised by government reviewing authorities.
1.1.2
Objectives of the Study The primary objective of the study is to assess the feasibility of undertaking the proposed Panglao Island Airport Development Project in terms of technical, financial and economic viability. Included under this general objective is the determination of appropriate revenue-generating activities that will augment projected aviation revenues and make the project more sustainable. The specific objectives involve drawing conclusions on the appropriate level of project design and development mechanisms.
1.1.3
Scope of the Services The overall objective of the assignment is to provide technical assistance to MIAA in determining the feasibility of developing Panglao Island Airport as a major commercial airport serving a fast emerging major tourist destination.
The Study shall cover the following activities:

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a) b) c) d) e) f) g) h) i) j) k) l) 1.1.4
Transportation Demand Analysis and Forecast; Review of Studies previously done for the Panglao Airport Development Project; Organizational Requirement; Economic Evaluation; Financial Analysis and Financing Options; Environmental Study (new study, if found necessary); Preliminary Proposals for Architectural Design/Concept and Site Layout; Mapping & Surveys; System / Action Plan for Land / ROW Acquisition & Resettlement; Technical Assistance to MIAA during project preparation and development; Consultation and Project Coordination with relevant agencies Agency Coordination (undertaken though reports and presentation)
Organization of the Report The Final Feasibility Study Report incorporates the comments and suggestions made on the Draft Final Report earlier submitted to MIAA. The report gives an overview of the required physical development plans to meet the objectives of developing a new airport facility in the island of Panglao in Bohol. It highlights the resulting estimation of the updated economic and financial viability review, and provides an implementation road map. It is organized in two volumes, consisting of Volume I- Main Report and Volume II-Plans and Drawings. Volume I of the Final Report is organized in ten (10) sections, consisting of the following: Section 1 Introduction outlines the general structure of the report and provides the basic information and planning context to give a broader perspective for the project; Section 2 Conditions at the Existing Airport and Its Environment provides an updated inventory of the existing facilities at the airport and an assessment of selected components, including the airport environment; Section 3 Air Traffic Demand Forecast summarizes historical and emerging trends in traffic patterns and provides an estimate of likely passenger, aircraft and cargo demand; Section 4 Airport Facility Requirement explains the parameters derived for designing the various airport components and defines the development requirements for the medium- and long-term periods; Section 5 Master Planning for the New Panglao Island Airport details the physical requirements of the project and outlines the recommended configuration of the various airport components to achieve the desired level of service Section 6 Business Development Options provides a menu of possible aviation and nonaviation related activities that may be pursued in connection with the project Section 7 Land Acquisition and Resettlement Requirements highlights the procedures currently being undertaken at the project site and identifies the fundamental requirements in terms of ROW acquisition for the project.
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Section 8 Implementation Strategy provides the estimated project cost and summarizes the strategy for financing the identified sub-projects within the established implementation period. Section 9 Viability Review provides an outline of the analytical procedure and detailed results of the economic and financial analyses, including the sensitivity analyses of the derived viability indicators. Section 10 Environmental Review summarizes the result of the environmental studies already undertaken and outlines the procedural approach to seeking for an amendment/ extension of the environmental clearance certificate issued in 2003. Volume II - Plans and Drawings illustrates graphically the salient features of the master plan components and some selected inputs to the master planning activity.
1.2
1.2.1
SOCIO-ECONOMIC CONDITION AT THE PROJECT LOCATION

Demographic Condition The Central Visayas Region The projects host province, Bohol (Figure 1.2-1), belongs to Region 7 (Central Visayas) in the administrative classification of the Philippines. Region 7 consists also of Cebu, Negros Oriental and Siquijor provinces. The region lies at the center of the Philippine archipelago, between the major islands of Luzon and Mindanao. It is the fifth most populous region among the 17 regions in the Philippines; its population of around 5.7 million people, as of latest census (May 2000), accounts for 7.4 percent of the countrys total. The regional population grew at an annual average rate of 2.79 percent from 1995 to 2000. The National Statistics Office (NSO) estimates the regional population to have reached 6.62 million in 2007 and to reach 7.03 million by 2010. Table 1.2-1 shows the historical population growth rates in Region 7. Table 1.2-1 Region 7 Population and Population Growth Rates Annual Average Population Growth Rate (in %)
Year
Population
Actual Census Results 1980 (May 1) 3,787,374 1990 (May 1) 4,594,124 1995 (September 1) 5,014,588 2000 (May 1) 5,706,953 Estimates 2001 5,831,579 2002 5,958,927 2003 6,089,056 2004 6,222,026 2005 6,357,900 Source: 2006 Philippine Statistical Yearbook
1.95 1.65 2.79
2.18
The region is also one of the most densely populated regions in the countrywith a population density of 359 persons per square kilometer in 2000, higher than the national average of 225 persons per square kilometer. Cebuano is the dominant language of the population. In Bohol, Cebuano is referred to as Boholano.
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Bohol Province Bohol province is politically subdivided into 47 municipalities and one city, Tagbilaran City, which is also the capital of Bohol. In terms of population size, Bohol is the second largest province (next to Cebu) in Region 7. Based on the latest census, Bohols population in 2000 was 1,139,130. Most of Bohols population reside in rural areas. Panglao Municipality Panglao is the southernmost town in Bohol province. It is one of two municipalities that comprise Panglao Island, the other being Dauis. It is politically subdivided into 10 barangays: Bil-isan, Bolod, Danao, Doljo, Libaong, Looc, Lourdes, Poblacion, TangnanCapt. Cerilo Gatase Jr., and Tawala. As of 2000 census, the population of Panglao stands at 21,337 people and population density is about 3 people per square kilometer.
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Figure 1.2-1 Vicinity Map of the Existing and Proposed Airport Sites
1.2.2
Economic Structure The Central Visayas Region In 2005, Region 7 posted a gross regional domestic product (GRDP) of PHP 376,845 million in current prices and PHP 85,944 million in constant (1985 base year) prices. The regions population has a high income relative to other regionsthe 2005 GRDP per capita in current prices was PHP 59,272.00, which is close to the national level of PHP 63,556.00 GDP per capita. Real GRDP growth was at 6.04% from 2004 to 2005, higher than the national output growth of 4.97% during the same period. Table 1.2-2 shows the real output levels and economic growth in Region 7 from 1991-2005. Table 1.2-2 Real Gross Domestic Product of Region 7, 1991-2005 (in million pesos, at constant 1985 prices) Year Region 7 GRDP GRDP Growth 1991 46,971 1992 47,086 0.24% 1993 47,757 1.43% 1994 49,663 3.99% 1995 52,327 5.36% 1996 56,615 8.19% 1997 59,926 5.85% 1998 61,174 2.08% 1999 63,341 3.54% 2000 68,715 8.48% 2001 70,326 2.34% 2002 72,496 3.09% 2003 a 2004 a 2005
a a
75,803 81,052 85,944
4.56% 6.92% 6.04%
Data are as of July 2006. Source: 2006 Philippine Statistical Yearbook
Based on the GRDP decomposition by production sectors, services had the highest value added in 2005, contributing 59% to total GRDP (Figure 1.2-2). Among the subsectors under services, trade had the highest contribution, 46% of the value added in the services sector. Trade is also the subsector with the highest contribution to total GRDP, contributing 27% to the total value added in the region. The industry sector is the next leading source of total value added, contributing 32% to total GRDP in 2005. Among the industry subsectors, manufacturing is the leading subsector and is also next to trade in its contribution to total GRDP.
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12%
59%
30%
Agriculture, Fishery & Forestry Sector Industry Sector Service Sector Figure 1.2-2 Real Gross Value Added by Production Sector in Region 7
Bohol Province In the interior areas of Bohol, people largely depend on farming; along the coast, fishing is the major source of livelihood. The leading non-traditional exports in Bohol are prawns, baskets, and woven raffia. The leading domestic goods traded are GI sheets, limestone, handicraft, marine products, rice, banana, cattle, hog, mangoes, fish and copra. The 2004-2009 Bohol Medium-Term Development Plan describes the structure of the local economy, measured by employment by industry type from primary occupation, as 54% agricultural, 29% service-oriented, and 17% industrial. Tourism also generates significant economic activities, as the world-famous Chocolate Hills in Bohol attracts many domestic and international tourists. Electricity supply in the province has a 93.5MW capacity and water supply can be as much as 19,000 cubic meters daily. Major transportation infrastructure consist of a road network of about 5,385 kilometers, one domestic airport in Tagbilaran City, one domestic base port also in the city, and terminal ports in the municipalities of Tubigon, Jagna, Ubay and Talibon. Panglao Municipality Panglao is 18 kms. from the provincial capital (Tagbilaran City), a distance that is worth about 30 minutes of travel time. In terms of income class, Panglao is a fifth class municipality. The local economy is agriculture and tourism-based. The municipality is home to many tourist spots, beaches, and resorts and is also known for its world-class diving locations. The famous resorts and tourist attractions in Panglao include the Palm Island Beach Resort, Alona Palm Beach, Bohol Beach Club, Panglao Secret Garden, Balicasag Island, Puntod Island, Panglao Bell Tower, Calingoob Cave, Inubod Spring, Tangnan Shoreline Village, and several boating sites.
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1.2.3
Tourism Demand Time-series data on the distribution of travelers to Region 7 show a generally increasing trend in trip-making activities in the region from 2000 to 2006 (Table 1.2-3). During the period, the average growth of foreign travelers is 10%, overseas travelers 46% and domestic travelers 8%. Table 1.2-3 Distribution of Travelers to Region 7s Provinces, 2000-2006
2000 2001 Bohol Foreign 15,468 14,536 Overseas 138 16 Domestic 52,730 66,488 Cebu Foreign 294,282 270,050 Overseas 1,904 3,826 Domestic 527,312 543,497 Negros Oriental Foreign 9,955 8,860 Overseas 426 331 Domestic 77,679 77,365 Siquijor Foreign 2,809 2,343 Overseas Domestic 22,368 26,399 Total for Region VII Foreign 322,514 295,789 Overseas 2,468 4,173 Domestic 680,089 713,749 Total 1,005,071 1,013,711 Growth rates (Region VII) Foreign -8% Overseas 69% Domestic 5% Total 1% Source: Department of Tourism
2002 17,243 113 75,396 285,820 963 549,588 8,420 237 85,662 2,796 37,160 314,279 1,313 747,806 1,063,398 6% -69% 5% 5%
2003 18,219 166 110,514 294,831 843 591,441 9,624 188 95,466 2,987 33,318 325,661 1,197 830,739 1,157,597 4% -9% 11% 9%
2004 25,054 1,867 134,740 349,848 1,361 660,928 12,349 259 118,755 3,300 107 7,597 390,551 3,594 922,020 1,316,165 20% 200% 11% 14%
2005 32,926 2,192 152,863 403,326 1,813 712,938 13,784 1,153 128,294 3,967 157 7,326 454,003 5,315 1,001,421 1,460,739 16% 48% 9% 11%
2006 46,438 3,815 169,058 472,260 2,460 772,767 21,029 1,044 133,250 4,247 64 6,728 543,974 7,383 1,081,803 1,633,160 20% 39% 8% 12%
The data also show that relative to other provinces, Bohol has a consistently increasing market share of the foreign travelers market in Region 7 (Table 1.2-4). From 4.8% in 2000, the provinces share of foreign travelers increased to 8.54% in 2006. Table 1.2-4 Percentage Distribution of Foreign Travelers in Region 7 2000 2001 Bohol 4.80% 4.91% Cebu 91.25% 91.30% Negros Oriental 3.09% 3.00% Siquijor 0.87% 0.79% Region 7 100.00% 100.00% Source: Department of Tourism 2002 5.49% 90.94% 2.68% 0.89% 100.00% 2003 5.59% 90.53% 2.96% 0.92% 100.00% 2004 6.42% 89.58% 3.16% 0.84% 100.00% 2005 7.25% 88.84% 3.04% 0.87% 100.00% 2006 8.54% 86.82% 3.87% 0.78% 100.00%
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The visitor arrival pattern over the last two years (2005-2006), as shown in Table 1.2-5 reveals that that the bulk of foreign travelers came from East Asian countries. Table 1.2-5 Visitor Arrival in Region 7 (2005-2006)
January-December 2006 Country of Residence Cebu Asia ASEAN Brunei Cambodia Indonesia Lao PDR Malaysia Myanmar Singapore Thailand Vietnam Sub-total East Asia China (People's Republic) Hongkong Japan Korea Taiwan Sub-total South Asia India & other SA countries Sub-total North America Canada USA Sub-total Oceania Australia New Zealand Sub-total Europe Austria Belgium Denmark Finland France Germany Italy Netherlands Norway Spain Sweden Bohol Negros Or. Siquijor Total Total Rate 2006 2005 Growth
83 58 1,416 38 2,760 21 4,858 1,605 75 10,914 7,984 11,674 117,361 165,309 16,199 318,527 2,481 2,481 5,177 53,374 58,551 10,272 785 11,057 882 811 931 241 3,030 9,210 2,238 1,818 3,121 1,044 1,797
3 6 222 233 380 324 4 1,172 1,024 614 4,565 5,221 8,069 19,493 272 272 1,372 5,902 7,274 1,601 175 1,776 283 237 307 68 1,218 3,405 867 604 409 217 571
5 6 72 50 74 30 14 246 252 75 2,742 3,095 101 6,265 69 69 674 4,636 5,310 1,098 76 1,174 115 185 209 29 407 1,696 175 233 390 67 128 8 6 10 15 44 26 6 217 96 13 358 4 4 115 814 929 232 13 245 115 66 130 22 276 954 62 176 67 73 70
91 70 1,718 38 3,049 21 5,322 1,974 93 12,376 9,286 12,369 124,885 173,721 24,382 344,643 2,826 2,826 7,338 64,726 72,064 13,203 1,049 14,252 1,395 1,299 1,577 360 4,931 15,265 3,342 2,831 3,987 1,401 2,566
71 8 962 2,946 56 5,153 1,389 109 10,694 6,298 11,882 119,446 150,837 17,624 306,087 1,797 1,797 5,679 49,851 55,530 10,138 899 11,037 1,099 1,252 1,320 310 4,065 12,471 2,730 2,562 3,153 1,147 2,242
28.17% 775.00% 78.59% 3.50% -62.50% 3.28% 42.12% -14.68% 15.73% 47.44% 4.10% 4.55% 15.17% 38.35% 12.60% 57.26% 57.26% 29.21% 29.84% 29.77% 30.23% 16.69% 29.13% 26.93% 3.75% 19.47% 16.13% 21.30% 22.40% 22.42% 10.50% 26.45% 22.14% 14.45% Page 1-9

January-December 2006 Country of Residence Cebu Switzerland United Kingdom Other Euro Countries Sub-total Middle East Saudi Arabia etc Sub-total Others & Unspecified Residences Overseas Filipinos Sub-total Total Foreign Travelers Total Domestic Travelers GRAND TOTAL 5,084 9,686 4,453 44,346 2,570 2,570 23,814 2,460 26,274 474,720 772,767 1,247,487 Bohol 1,609 1,537 769 12,101 320 320 4,030 3,815 7,845 50,253 169,058 219,311 Negros Or. 584 1,075 2,024 7,317 164 164 484 1,044 1,528 22,073 133,250 155,323 Siquijor 161 267 143 2,582 9 9 76 64 140 4,311 6,728 11,039 Total 7,438 12,565 7,389 66,346 3,063 3,063 28,404 7,383 35,787 551,357 1,081,803 1,633,160 Total 4,474 10,104 8,039 54,968 1,827 1,827 12,093 5,308 17,401 459,341 1,001,434 1,460,775 Rate 66.25% 24.36% -8.09% 20.70% 67.65% 67.65% 134.88% 39.09% 105.66% 20.03% 8.03% 11.80% 2006 2005 Growth
Source: Department of Tourism (DOT)
1.3
ECONOMIC DEVELOPMENT CONTEXT

It is envisioned that the Panglao Airport Development Project will help fill the gap in infrastructure development needs in the Central Visayas region, provide easier access to markets and services, and ensure safer and more reliable air transportation. This is in line with economic development plans at the national, regional and provincial levels. The following discussion describes the context of the project in various economic development plans. Medium-Term Philippine Development Plan To help attain the medium-term economic growth targets by the government, the Medium-Term Philippine Development Plan (MTPDP) lays down sector development goals, proposes specific action plans and identifies potential public sector and private sector investment activities. In particular, the infrastructure chapter of the MTPDP states that Transport Infrastructure shall be provided in pursuit of the following: Providing easier access to markets at home and abroad to alleviate poverty in the countryside and isolated regions. Strengthening national unity, family bonds and tourism by making the movement of people faster, cheaper and safer.
The tourism chapter of the MTPDP presents as complementary strategyin addition to promoting tourism destinations and building more attractions in tourism areasthe improvement of infrastructures that shall increase the accessibility of such areas. The chapter also classifies Bohol as one of the destination focus in strategic development planning, especially as part of the Cebu-Bohol-Camiguin tourism circuit. The building of the Panglao Airport, therefore, is a key investment activity and component of development strategies in the infrastructure and tourism sectors.
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Medium-Term Philippine Investment Program The accompanying document to the MTPDP, the Medium-Term Philippine Investment Program (MTPIP) also includes Panglao Airport in its list of programs and projects. The list in the MTPIP shows the project as being considered for implementation using government funds. Comprehensive and Integrated Infrastructure Program The project is also included in the 2006-2010 Comprehensive and Integrated Infrastructure Program (CIIP) as one of the investment activities for the so-called SuperRegions. The CIIP identified the Manila International Airport Authority (MIAA) as the implementing agency. The CIIP also cited MIAAs mandate as coming from Presidential Memorandum Order (MO) 178-A, as amended by MO 210 that directs MIAA to be the lead implementing and funding agency for the project. Development Plan for the Super Regions The creation of super regions in the Philippines was proposed by President Gloria Macapagal-Arroyo in her 2006 State of the Nation Address to bolster the natural advantages of the five distinct regional sub-economies of the country. Executive Order (EO) 561 series of 2006 was then issued to officially form the super regions and identify and give mandate to the super-regional development champions. EO 561 s. 2006 mandates the grounding of the geographical units, without superseding current political boundaries nor altering regional development councils as established by existing laws and issuances, into the following super regions: Northern Luzon Agribusiness Quadrangle (Regions I, II, and CAR, and the northern part of the provinces of Aurora, Tarlac, Nueva Ecija and Zambales) Luzon Urban Beltway (NCR, Region IV-A, the provinces of Bulacan, Bataan, Pampanga, Mindoro, Marinduque and the southern parts of the provinces of Tarlac, Zambales, Aurora and Nueva Ecija) Central Philippines (Regions V, VI, VII and VIII, and the provinces of Romblon, Palawan, and Camiguin, and the Island of Siargao) Agribusiness Mindanao (Regions IX, X except Camiguin, XI, XII, CARAGA except Siargao, and ARMM) Cyber Corridor, which traverses the above super regions from Baguio to Cebu to Davao

Each super region has primary, though not exclusive, development themes. The development theme for Central Philippines is tourism. In fact, Bohol is identified as part of two tourism circuits currently being promoted by the government: (i) Cebu-BoholCamiguin-Dakak-Dapitan-Siquijor-Dumaguete tourism circuit; and (ii) Cebu-BoholDumaguete-Dapitan-Camiguin. To further the investment and development activities in the Central Philippines, the secretary of tourism and the cabinet officer for regional development of Region VII were identified as super-regional development champions.
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Bohol Medium-Term Development Plan: 2004-2009 The development of the Panglao Airport is also highlighted in various sections in the medium-term development plan of the Bohol provincial government. The following statements mentioned in the vision, goals, strategies and activities in the tourism and transport infrastructure sub-sectors underscore the importance of the project in the economic development of Bohol: Tourism Sub-Sector Development Framework : A tourism development, providing world class tourism facilities and services through well-enhanced natural attractions, improved infrastructure facilities, efficient tourism assistance and a disciplined citizenry. Efficient tourism services; improved infrastructure facilities. To establish Bohol as the prime eco-cultural tourist destination in the country; to improve access of tourists and visitors to the province. To provide horizontal infrastructure development in the province. for tourism
Sub-sector Goals
Sub-Sector Objectives
Sub-Sector Targets
Transport Infrastructure Sub-Sector Development Challenges: The Ubay Airport has inadequate runway facilities. The Tagbilaran City Airport has limited space and poor air navigation facilities. The Philippine Airlines is ready to promote a mass tourism program if the Panglao Airport would be realized in the near future. : A well-coordinated infrastructure development for a safe, modern, effective, efficient, affordable and accessible transport system and facilities. Excellent and modern air and sea transport facilities
Sub-Sector Vision
Sub-Sector Goals Sub-Sector Objectives and Targets
Development of Panglao airport
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1.4
1.4.1
INSTITUTIONAL AND REGULATORY CONTEXT

Institutional Framework Relevant laws, rules and regulations that are currently in effect are summarized in this section to define the appropriate organizational and institutional frameworks that will be necessary to ensure the effective and efficient implementation and operation of the Panglao Airport facility. Most relevant to the proposed Panglao Island Airport Project are those outlined in Table 1.4-1.
Table 1.4-1 A Summary of Relevant Legal Issuances

Executive Issuance Executive Order No. 125 issued on 30 January 1987 as amended by Executive Order No. 125-A issued on 13 April 1987 Summary of Contents EO 125 reorganized the Bureau of Air Transportation into the Air Transportation Office (ATO) as an attached office to the Department of Transportation and Communications (DOTC). ATO, in accordance with the provisions of the executive issuances, has the following duties and functions, among others: Establish and prescribe rules and regulations for the inspection and registration of all aircraft owned and operated in the Philippines and all air facilities; Establish and prescribe the corresponding rules and regulations for the enforcement of laws governing air transportation; Determine, fix and/or prescribe charges and/or rates pertinent to the operation of public air utility facilities and services; Administer and operate the Civil Aviation Training Center (CATC); and Operate and maintain national airports, air navigation and other similar facilities in compliance to ICAO
Memorandum Order No. 178 dated 4 July 2005 issued by President Gloria MacapagalArroyo
MO No. 178 provides for the establishment of the Panglao Tourism Special Infrastructure Program (PTSIP) for the purpose of ensuring and sustaining the competitiveness and marketability of Panglao, Bohol as a premier and world class tourist destination. The Program as envisioned under MO 178 involves the conversion and upgrading of the Panglao Airport to international standards and the provision of other infrastructure and equipment that would complement the intended transport system in the area. For this purpose, the Secretary of Tourism was tasked to oversee and monitor the effective and efficient implementation of the Program. A Project Management Office was created (with the General Manager/Chief Executive Officer of the Philippine Tourism Authority (PTA) as Project Manager and an Assistant Secretary of the DOTC as Deputy Project Manager) with the following functions : Plan, implement and oversee the operational details and administrative arrangements necessary for the effective and. efficient implementation of the Program; Prepare and finalize details and administrative arrangements, and secure appropriate clearances, permits and licenses necessary for the implementation of the Panglao Airport development; and Implement and/or coordinate with various components of the development program, including financing, physical implementation and
Page 1-13

Executive Issuance supervision thereof. Summary of Contents
Memorandum Order No. 178A (amending MO Order No. 178) issued by President Gloria Macapagal-Arroyo on 13 January 2006 Memorandum Order No. 210 dated 10 April 2006 issued by President Gloria MacapagalArroyo
MO No. 178-A places the management, administration and maintenance of the PTSIP under the direct supervision and control of the DOTC. The composition of the PTSIP Project Management Office was also reorganized under the subject MO with the DOTC Assistant Secretary as Project Manager and an Assistant Secretary from the Department of Tourism (DOT) as Deputy Project Manager. MO No 210 further amended MO No. 178. The amendment provided for the inclusion of the Manila International Airport Authority (MIAA) in the PTSIP, as a possible source of funds for financing the investment cost requirements of the proposed Panglao Airport Development Project. MO 210 also included the Philippine Tourism Authority (PTA), Department of Transportation and Communications (DOTC), Department of Tourism (DOT), Air Transportation Office (ATO), and Philippine Ports Authority (PPA) in the PTSIP. AO No 157 created a Project Management Office (PMO) for the Panglao Airport Development Project (PADP). The Panglao PMO is headed by an Assistant Secretary of the DOTC who shall act as the Panglao Project Manager with the following duties and responsibilities, among others: Oversee the overall activities of the Project; Facilitate and monitor the implementation of activities for the development of PADP; Assist the Inter-Agency Task Force in the Panglao Island Tourism Estate in issuing resolution, including delineation of functions of concerned agencies to support the PADP; Ensure and promote measures on environmental protection, ecotourism and sustainable development within the PADP; and Assist and facilitate investment promotional activities to encourage local and foreign investors in the PADP in coordination with the Investment Promotion Units of the concerned agencies.
Administrative Order No. 157 dated 29 December 2004 issued by President Gloria Macapagal-Arroyo
Memorandum of Agreement entered into by and between the Republic of the Philippines, through the DOTC, and the Provincial Government of Bohol dated 22 July 2006
The MOA sets out the agreement on land acquisition for the Project and payment of compensation for structures/improvements that will be affected by the Project implementation. Per the terms of the MOA, the Bohol Provincial government is tasked with the following, among others: Coordinate with and adopt the Parcellary Plan prepared by the ATO identifying the areas to be acquired; Prepare and submit a Program of Work for the acquisition of lots and improvements, subject to approval by the DOTC; Accept the funds transferred by the DOTC and place the same in a trust for the sole purpose of using said funds in the purchase of affected lots and payment of improvements located therein; and Cause and undertake the transfer of the title of the properties acquired in the name of the DOTC/ATO. The DOTC, on the other hand, has the following duties and responsibilities: Allocate available funds to cover the cost of the acquisition of lots and improvements for the new airport; and Facilitate the transfer of funds to the Province of Bohol for the operational expenses to be incurred by the Bohol Provincial Government in the pursuit of its task of acquiring the lots and improvements.
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Executive Issuance Summary of Contents The amendment basically covers the procurement of Parcellary survey. The PGB shall facilitate the procurement and engagement of a private surveying firm to undertake the parcellary/subdivision survey of affected lots of the project. The DOTC shall allocate available funds to cover the cost of the conduct of the parcellary/subdivision survey.
Memorandum of Agreement entered into by and between the Republic of the Philippines, through the DOTC, and the Provincial Government of Bohol dated 06 July 2007 (Amendment to 22 July 2006 MOA between DOTC and PGB)
1.4.2
Environmental Framework The 1987 Philippine Constitution lays down the basic framework for the policy on environmental protection. Section 16, Article II states that The State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature. Section 15 of the same Article also mandates the State to protect and promote the peoples right to health. To implement this policy, Executive Order No. 192 designated the Department of Environment and Natural Resources (DENR) as the primary government agency responsible for the conservation, management, development and proper use of the countrys environment and natural resources. Its Environmental Management Bureau (EMB) is specifically tasked to recommend rules and regulations for environmental impact assessments and provide technical assistance for their implementation and monitoring.
The Environmental Impact Assessment System has continuously evolved. The enabling issuances behind its evolution are summarized below in Table 1.4-2.
Table 1.4-2 Key Environmental Issuances
Legal/Executive Issuance Presidential Decree (PD) No. 1151, otherwise known as the Philippine Environmental Policy of 1977
Summary of Contents The first policy issuance on the Environmental Impact Statement (EIS) System in the Philippines. Section 4 of the decree explicitly requires all agencies and instrumentalities of the national government, including government-owned and controlled corporations, as well as private corporations, firms and entities to prepare an environmental impact statement (EIS) for every action, project or undertaking which significantly affects the quality of the environment. The Philippine EIS System was formally established. PD 1586 declared environmentally critical projects (ECPs) and projects within environmentally critical areas (ECAs) as projects which require the submission of an EIS. PD 1586 also identified the lead agency for the implementation of the EIS System and provided sanctions for its violation. The major categories of ECPs and ECAs were identified and given technical definitions by the EMBs predecessor agency, the National Environmental Protection Council (NEPC), through NEPC Office Circular No. 3, series of 1983 Series of attempts to further streamline the EIS system and to strengthen the
PD No. 1586 series of 1978
Presidential Proclamation No. 2146, series of 1981
DENR Department
Page 1-15

Legal/Executive Issuance Administrative Order (DAO) No. 21 in 1992 DAO No. 96-37 Administrative Order No. 42 (A.O. 42) DAO No. 03 series of 2003 Presidential Decree 984 the Pollution Control Law of the Philippines, enacted in June 1978. DENR Administrative Order No. 14 DENR Administrative Order No. 34 series of 1990 DENR Administrative Order No.35 series of 1990 Republic Act 6969 is the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990.
PD 984 prescribed air, water, odor and noise emission standards. It also defined how pollution cases would be handled and resolved. Summary of Contents processes for its implementation.
Revised the air quality standards which were further refined in the Clean Air Act of the Philippines Defined the Revised Water Usage and Classification/Water Quality Criteria amending Sections 68 and 69, Chapter III of the 1978 Rules and Regulations of PD 984. Defined the Revised Effluent Regulations of 1990, revising and amending the Effluent Regulations of 1982. The Implementing Rules and Regulations of RA6969 were formulated by the DENR and issued through DENR Administrative Order No. 29. The IRR defined the administrative procedures to be followed in the adjudication of cases governing the control of toxic and hazardous substances.
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SECTION 2
2.1
2.1.1
2.
CONDITIONS AT THE EXISTING AIRPORT AND ITS ENVIRONMENT
THE ENVIRONMENTAL CONDITIONS

The Natural Environment Geology and Topography The existing airports location, Bohol Island, is a predominantly sedimentary island. The island was developed from the magmatic and tectonic mechanism that resulted from the underthrusting of the southwest Philippine Plate east of Samar and Surigao 1. Ongoing erosion, transport and sedimentation continue to accumulate marine and terrestrial deposits in the Bohol basin. Bohols terrain is variable moderate to rugged slopes on the north and northeast parts, more rugged terrain on the south, and almost rolling to moderately steep slopes on the central valley. Two sets of Bohols several mountain ranges can be found on the northeastern side of the mainland. Farther east are two other mountain ranges, the Mt. Tanawan and Mt. Candungao. From Mt. Tanawan going southwestward, the foothills of Calape can be found. The main range of hills extending from Calape joins to the southwestwardly trending mountain range from the interior, runs south and out to Loon Peninsula terminating in Punta Cruz, Maribojoc. The Sierra Bullones Range follows roughly the trend of the south coast. 2 Climate PAGASA classifies Bohols climate as Corona Type IV, characterized by rainfall more or less evenly distributed throughout the year. Intensification of the southwest monsoon usually occurs during the months of July to October. Based on 1971-2000 climatogical records of Tagbilaran City weather station, the province has an average of 162 rainy days per year and an average annual rainfall of 1360.2 mm. The coastal area of the province is warm whereas the interior part is colder. The 1971-2000 climatological records also show a mean temperature of 27.70 degrees centigrade and a prevailing wind direction towards the northeast with an average speed of 2 miles per second. Bohol is not included in the so-called typhoon belt of the country, as typhoons rarely pass the province. The frequency of typhoon passage is 0-10% from the average of 20 typhoons passing over the Philippines per year. 3 Water Resources
4
Bohols water supply system for domestic, agricultural and industrial uses is based mainly on the 2,224 springs, 59 rivers and 200 creeks. Bohol has twelve major rivers (Wahig-Inabaga, Ipil, Soom, Caro-ud, Lumbay, Manaba, Loboc, Panampan, Abatan, Mualong, Alejawan and Panangatan rivers) fed by hundreds of tributaries emanating from
1 2 3 4
Bureau of Mines and Geo-Sciences Bureau of Soils and Water Management (BWSM) DENR-BSWM 1991 Preliminary Climatic Classification of 15 selected Provinces in the Philippines DENR Page 2-1
the upland. Currently famous among these rivers is the Loboc River as it is featured in the lunch on a boat and river cruise in a typical Bohol tourism itinerary. There are three major watersheds of Bohol that have been declared as protected areas under the National Protected Area System (NIPAS, R.A. 7585). The largest watershed is the Wahig-Inabanga Watershed with an aggregate area of 14,000 hectares. The second, and first to be proclaimed as watershed forest reserve in Bohol, is the Loboc Watershed with an area of 10,450 hectares. The third is the Duero Watershed that covers an area of 3,630 hectares. Biological Environment Natural forest in the province is still very evident. However, flora of the family Dipterocarpaceae, Leguminosae, and Verbanaceae are becoming very rare. This is exemplified by the short supply of Bohols Molave or Tugas. Constant cultivation and burning inhibits forest evolution and encourages the proliferation of grasses such as cogon (Imperata cylindrica) in association with shrubs like kanding-kanding (Lantara Camara). To develop systems closer to natural forests, agroforestry shall be established in these areas. Data about fauna on Bohol are scarce. In the few studies conducted in the Rajah Sikatuna Protected Landscape (RSPL), 8 mammal species and 56 birds species have been identified. Most of the fauna classes such as reptiles, amphibians and insects fauna animals have not been studied. There are now birds previously seen on the island that are not positively identified. This includes the Philippine Cockatoo last seen in RSPL in 1995. The most well known animal in Bohol is the Philippine Tarsier, one of the smallest primates in the world. Although not on international endangered listss, it is fast losing its habitat areas on the island. This is also true of Bohols flying lemurs, civet cats, wild pigs, grey squirrels and the Philippine monkeys. 5
2.1.2
Social Environment Bohol Province Bohol province is politically subdivided into 47 municipalities and one city, Tagbilaran City, which is also the capital of Bohol. In terms of population size, Bohol is the second largest province (next to Cebu) in Region 7. Based on the latest census, Bohols population in 2000 was 1,139,130. Most of Bohols population reside in rural areas. Poverty incidence in the province is quite high. The Countryside in Figures 2005 by the National Statistical Coordination Board (NSCB) placed the poverty incidence in Bohol at 50.2% as of 2000. Tagbilaran City Tagbilaran City is the capital and a component city of Bohol. It is a first-class city in terms of fiscal income class. It is situated some 630 kilometers southeast of Manila and 72 kilometers south of Cebu City. 6 It is politically subdivided into 15 barangays. About 41% of the citys population reside in the four urban barangays where trade and commerce are concentrated.
Bohol Ecological Profile, DENR However, the Manila-Tagbilaran air sector distance is 620 kilometers and the Cebu-Tagbilaran air sector distance is 82 kilometers.
6
Page 2-2
2.1.3
Land Use The total land area of Bohol is approximately 411,726 hectares representing 1.4% of the total land area of the Philippines. Out of this area, about 74% are classified as alienable and disposable lands while 26% are timberland areas. Table 2.1-1 shows the present land use and vegetation cover of Bohol. Table 2.1-1 Land Use and Vegetation Cover of Bohol Land Use and Vegetation Cover Area (hectares) Agricultural 147,398 Grassland/Shrubland 186,800 Woodland 44,014 Wetland 20,256 Miscellaneous (Built-up) 13,258 Source: Provincial Land Use Plan of Bohol, 2003-2022
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2.2
2.2.1
AIR TRAFFIC VOLUMES AND SERVICES

Air Transportation Service Air transportation plays an important role in inter-island passenger movement in the Philippines. The country is currently served by 85 public airports consisting of four (4) regular international, four (4) alternate international, 12 trunk line, 36 secondary and 31 feeder airports, spread over nine (9) area centers. Two airports, namely Lucena and Malaybalay, have ceased operating. There are six airports operating in Area Center No. 1, namely: (a) Mactan, (b) Dumaguete, (c) Siquijor, (d) Tagbilaran, (e) Ubay and (f) Bantayan. Categorized as a secondary airport, Tagbilaran Airport is currently serviced by regular domestic flights provided by Cebu Pacific and Philippine Airlines. The former provides 14 round trips per week, while the latter adds 10 additional trips per week (Table 2.2-1). Table 2.2-1 Current Air Transport Service at Tagbilaran Airport
Airline Cebu Pacific Flight Schedule 620 - 740 810 - 930 1135 - 1255 1325 - 1445 800 - 915 955 - 1110 1500 - 1615 1655 - 1810 Type of Aircraft A319 A319 A319 A319 B737 B737 B737 B737 Seat Flights Weekly Seat Capacity per Week Capacity 150 7 1,050 150 7 1,050 150 7 1,050 150 7 1,050 138 7 966 138 7 966 138 3 414 138 3 414 Airfare (PHP) 4,352 4,352 4,352 4,352 3,798 3,798 3,798 3,798
Manila-Tagbilaran Tagbilaran-Manila Manila-Tagbilaran Tagbilaran-Manila Manila-Tagbilaran Philippine Tagbilaran-Manila Airlines Manila-Tagbilaran Tagbilaran-Manila
2.2.2
Air Traffic Record More than 99 % of the air passenger traffic in area Center No 1 is handled by Mactan, Dumaguete and Tagbilaran Airports (Table 2.2-2). Table 2.2-2 Air Passenger Traffic in Airports Under Area Center 1
Airport
Year Dumaguete Mactan Trunkline International 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 82,421 96,196 125,616 111,367 97,011 94,368 74,821 34,263 79,511 106,087 138,367 136,233 148,649 131,053 2,594,295 1,409,882 1,808,745 1,940,022 2,149,107 2,402,384 2,718,121 2,068,159 2,296,205 2,303,039 2,219,765 2,174,524 2,289,538 2,332,704 Siquijor Feeder 0 0 0 0 1,625 838 307 395 0 101 152 422 334 121 Tagbilaran Secondary 55,599 61,775 52,961 73,771 65,032 46,786 43,643 31,753 22,269 18,022 33,432 77,251 105,556 162,862 Ubay Feeder 28 46 25 38 Bantayan Feeder -
Source: ATO
Page 2-4
Historical records of traffic volumes at the existing Tagbilaran Airport show a continuously increasing annual air passenger volume from 2001 to 2006, averaging at an annual growth rate of 50.15%. In 2006, the volume of passengers handled by Tagbilaran Airport is about 242 thousand arriving and departing passengers (Table 2.2-3). Cargo volume has similarly increased in tonnage over the same period. Table 2.2-3 Historical Traffic Volumes at Tagbilaran Airport
Philippines Cargo Handled (kgs) 244,600,053 259,160,170 249,576,417 272,393,744 281,234,572 227,012,911 Tagbilaran Cargo Handled (kgs) 501,234 1,770,213 2,124,814 2,366,704 2,821,949 3,379,724
Year 2001 2002 2003 2004 2005 2006
Passenger Movements 12,174,998 12,186,695 12,595,298 14,585,921 14,926,272 15,693,613
Aircraft Movements 308,883 313,599 316,325 309,802 282,686 259,162
Passenger Movements 31,641 77,251 105,556 163,181 198,605 241,484
Aircraft Movements 1,734 3,044 3,046 3,502 3,480 3,306
Note: Traffic data consist of domestic scheduled traffic and general aviation and military. Source : ATO
At present, Tagbilaran Airport handles about one and a half percent of the total nationwide domestic passenger volume and total nationwide domestic cargo volume. Table 2.2-4 Tagbilarans Share of National Traffic
Year 2001 2002 2003 2004 2005 2006 Passenger 0.26% 0.63% 0.84% 1.12% 1.33% 1.54% Cargo Handled 0.20% 0.68% 0.85% 0.87% 1.00% 1.49% Aircraft 0.56% 0.97% 0.96% 1.13% 1.23% 1.28%
2.3
2.3.1
EXISTING CONDITION OF THE FACILITIES

The Existing Facilities An updated inventory of existing facilities in Tagbilaran Airport is provided in Table 2.3-1 up to Table 2.3-3. The airfield components are anchored on a 1.78-km runway with a width of 30m along its length. The location of airport facilities around the runway is shown schematically in Figure 2.3-1. The airfield horizontal components are seen to be generally inadequate in terms of safety, reliability, and operational efficiency. The runway strip violates ICAOs guidelines on obstacle clearance as it has been breached by residential developments and other obstructions. Larger and more appropriately sized aircraft such as A320 are prohibited from operating without load penalty. The navigational aids are also outdated and inadequate, with its expansion equally constrained by the surrounding conditions.
Page 2-5
Many of the structures are old and in need of rehabilitation or repair. The passenger terminal building shows signs of extreme congestion during the peak hour. Table 2.3-1 Inventory of Existing Facilities at Tagbilaran Airport, Part 1
Items 1. Aerodrome Data City / Aerodrome Domestic / International ICAO Reference Code Aerodrome Reference Point Latitude Longitude Distance and Direction from City Elevation Reference Temperature Magnetic Variations Operational Hours Seasonal Availability Supervising Authority Transportation Available Aircraft Operational Data Wind Coverage Operational Category Established Procedures Transition Altitude Local Flying Restriction Facilities Runway Designation True Bearing Dimension Longitudinal Slope Stopway Clearway Runway Strip Surface Strength Taxiway Configuration Dimension Surface Strength Apron Aircraft Stands Parking Configuration Area Surface Strength Description
Tagbilaran / Tagbilaran National Airport Domestic 3C 09 39' 51.0880" N 123 51' 13.0665" E Center of the RWY 2.5 km. N (1.35NM) from Tagbilaran City 11.52 M (38FT) AMSL 28 C 0 W (2005) / 1 increasing Sunrise to Sunset (0600-1800 local time) All seasons Air Transportation Office, DOTC motor tricycle, cars for hire, bus 99.79% Non-instrument Approach Nil 2,000 feet Nil
2.
3.
17 / 35 -S 10 E 1,779.0 M x 30.0 M 0.73% uphill to the North Nil Nil 1842.30 M x 147.50 M PCCP PCN 49 R / B / W / U 2 connections with Apron Width - 21M PCCP PCN 31.5 R / B / W / T B737-300 x 3 Self-Maneuvering 126 M x 40M (5,040 sqm) PCCP PCN 31.5 R / B / W / T
Page 2-6
Table 2.3-2 Inventory of Existing Facilities at Tagbilaran Airport, Part 2
Items 4 Passenger Terminal Building Structure Floor Area Ground Floor Second Floor Cargo Terminal Building Control Tower Building Structure Floor Area Floor Height Fire Station Structure Floor Area Vehicle Parking Area Area Capacity Surface Access Road Number of Lanes Width Surface Air Navigation System Radio Navigation Aids Telecommunication Systems
Description
Reinforced Concrete, 2 Storey 850 sqm 45 M x 10 M (450 sqm) 40 M x 10 M (400 sqm) None Reinforced Concrete 15 M x 10M 4 Storey Reinforced Concrete, 1 Storey 9 M x 16 M (144 sqm)
15 cars Concrete 2 Lanes 6 Meters Concrete
Aeronautical Ground Lighting Systems
Meteorological Observation Systems Rescue and Fire Fighting Facilities Fire Fighting Vehicles Level of Protection Number of Trained Personnel
FSS TWR 122.2 MHZ, A/G freq. 5205 KHZ, P/P PRI freq (Mactan Network) 3872.5 KHZ p/p SECD freq Precision Approach Path Indicators (PAPI) for RWY 17/35 Simple Approach Lighting System (MSALS) for RWY 35 Runway Edge Lights Runway End Lights for RWY 17 only. Taxiway edge and center line lighting for North taxiway only. Basic items, manual system (PAGASA) Wind, temperature and air pressure sensors for Control tower Two Fire Trucks, 2 - 2,500L water and 300L foam 1 - 800gal water and 75gal foam Category V 7 Firefighters
Page 2-7
Table 2.3-3 Inventory of Existing Facilities at Tagbilaran Airport, Part 3

Items 5 Public Utilities Power Supply Receiving Voltage Capacity of Transformers Standby Generators Water Supply Supply Capacity Water Tank Sewerage System Type of Treatment Solid Waste Disposal System Telephone System Description
Bohol Light 13,800V and 220V 25KVA x 3; to be 37.5 KVA x 3 in the future 1-60 KVA and 1-75 KVA BUWI (Bohol Utility Waterworks, Inc.) Nil None Septic Tanks for Individual Buildings Collected by City Authority 1 PLDT 1 Globe (for Air Control Tower) 1 CRUZTELCO 1 Public Telephone Booth of PLDT None, gas up at Mactan or Manila None
Other Facilities Aviation Fuel Supply System Aircraft Maintenance Hangar
Page 2-8
Figure 2.3-1 Layout of Existing Tagbilaran Airport
Page 2-9
2.3.2
Assessment of Selected Airport Components An assessment of the adequacy of the various airport components is summarized in Table 2.3-4 up to Table 2.3-7. The conditions of the airfield components at Tagbilaran Airport are graphically described in Figure 2.3-2 up to Figure 2.3-4. Table 2.3-4 Assessment of Selected Airport Components
Items Description Length Extension of the runway strip beyond the end of runway is less than the minimum of 60.00 meters on both ends. No runway end safety areas are provided on both ends of the runway. A road, residential houses and an elementary school is located within the runway strip extension and safety area on Runway 07. A road and concrete residential structures on the northwestern side of the runway is located within the 150 meters wide runway strip. On the northeastern side, residential areas also exist within the 150 meters wide runway strip.
1.
Runway Strip and Obstacle Limitation Surfaces
2.
Runway
Length
The existing 1,799.00 meters long runway is inadequate for normal operations of medium and larger types of aircraft such A320. Load penalty will be imposed on larger aircraft landing on the airport. The width of the runway is 35 meters for the entire length. To accommodate larger aircraft, the runway should be widened to 45 meters. Paving of runway shoulder is not provided.
3.
Taxiway
Aircraft Handling Capacity
Two (2) stub taxiways connect the runway to the apron. The width of the taxiway is 21.0 meters. Paving of the taxiway shoulder is not provided. There is no provision for building a parallel taxiway to keep pace with the growth in aerodrome demand. The existing apron can accommodate up to 3 - B737s for self-maneuvering method of entering and leaving an aircraft stand. The location of the apron is very close to the runway. The distance from the centerline of the runway to the edge of the apron is 50.00m meters. Considering the runway strip requirement, the apron is located within the runway strip and any object situated on a runway strip is regarded as an obstacle and a hazard to aircraft operations. The existing pavement has to be reviewed in anticipation of the loads imposed by the larger aircraft expected to use the aerodrome.
4.
Apron
Aircraft Stand Capacity
5.
Airfield Pavements
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Table 2.3-5 Assessment of Selected Airport Components, Part 2
Items 6. Passenger Terminal Building Passenger Handling Capacity
Description The size of the Arrival Hall is insufficient, arriving passengers crowd in this area while waiting for their baggages to be unloaded. The size of the Departure Lounge is sufficient as there is a second level provided, but there is a tendency for departing passengers to crowd at the first level because there is no signage to indicate the second level departure lounge, and access to it requires the passenger to traverse the whole lounge before getting to the stairs. There is no baggage claim conveyor. Baggage claim area fronting the arrival hall is just a tent structure and cordoned off with nylon rope. Baggage are lifted beyond the rope during claiming. The Arrival Hall is not air-conditioned. Waiting Area designated at the exterior parking is an open tent structure with monoblock chairs. This area is used both by people waiting for arriving passengers and by departing passengers waiting for the opening of the baggage inspection area (this closes during the long hours between flights and opens approximately 1 1/2 hours before arrivals/departures). This waiting area is insufferably hot and is very uncomfortable, especially for people with children. The Departure Lounge is airconditioned, but the airconditioning is insufficient once the majority of the departing passengers begin to pack into the lounge. Electric fans provided for additional ventilation do not help much. Cramped spaces at Rest Rooms. Also some lavatories and cubicle doors need repair and some rest rooms do not have mirrors.
Physical
Page 2-11
Items 7. 8. 9. Cargo Terminal Building Control Tower Fire Station Cargo Capacity Handling 10. Vehicle Parking Area Vehicle Capacity Parking
Description No cargo terminal building Moderate exterior and minor interior refinishing required . Minor exterior refinishing required . No sleeping quarters, just lounge area and kitchen. The present number of parking stalls is not sufficient to accommodate the vehicular traffic volume during arrivals/departures. There is no ILS, which is a standard equipment for modern jet aircraft. The Air Traffic Services (ATS) provided at Tagbilaran Airport are limited to Flight Information Service (FIS) only. The frequency used at the Tagbilaran Airport for area flight information services is 122.2MHz. One VHF/SSB transceiver with 5205 KHz and 3872.5 KHz frequencies is available in the FIS. The status of the equipment is similar to that of the VHF equipment. The existing approach lighting systems do not meet the ICAO's requirements for precision approach category 1 lighting system. Both runways are equipped with Precision Approach Path Indicators (PAPI). PAGASA weather station is located within Tagbilaran airport property and is equipped with standard meteorological equipment that measures wind, temperature and precipitation. ATO has its own equipment, equal to the equipment of PAGASA.
11. 12.
Radio Navigation Aids ATS and Communication Systems
13.
Airfield Lighting Systems
14.
Meteorological Observation System
Page 2-12

Items 15. Rescue and Fire Fighting Description The present number of rescue and fire fighting vehicles meet the minimum requirement for aerodrome category 5 for rescue and firefighting. Electric power is supplied by Bohol Light. The existing back-up generators have enough capacity for the present demand. However, expansion of the capacity of the standby generators will be needed as the demand increases. The existing telephone service at the airport is adequate for the present needs. However, a more improved communications system may be needed for more efficient airport operation and better service for passengers. The airport is supplied with potable water by Bohol Utility Waterworks Inc. (BUWI). At present, septic tanks are used for the collection of sewage waste from the individual buildings. However, increasing affluent will require a more sophisticated treatment facility. There is no aviation fuel supply system. Gas up is done at Mactan or Manila.
16.
Power Supply System
17.
Telephone System
18.
Water Supply System
19.
Sewerage System
20.
Aviation System
Fuel
Supply
Page 2-13
Figure 2.3-2 Existing Conditions of Facilities and Operational Restrictions (Airfield)
Figure 2.3-3 Existing Conditions of Facilities and Operational Restrictions (Terminal Building)
Figure 2.3-4 Existing Conditions of Facilities and Operational Restrictions (Other Buildings)
2.3.3
Problems of the Existing Airport The Existing Airspace / Airfield Use The airport perimeter fence is located at a distance of + 50.00 m. from the runway centerline. Aerodrome reference code number 4 requires a lateral extension of 150.00 m on each side of the centerline of the runway and to be free of any fixed object which may endanger the airplanes. Commercial and residential structures exist within the runway strip at present. Television and other private communications antennas are protruding into the airports airspace. The runway approaches at the existing Tagbilaran Airport are limited by terrain. The straight-in approach to Runway 35 has a 196 m hill located at about 5.8 kms from the threshold, roughly at a 2.5% approach slope. The straight-in approach to Runway 17 has a mountain range with a maximum elevation of 502 m (493 m. above runway level) located at a varying distance from 11.00 km to 13.00 km from the threshold, necessitating permanent curved approach procedures. In view of the restrictive approaches, operations for medium to large aircraft will be climb-gradient limited. Constrained Runway Extension The recommended length of runway is 2,500 meter for regional operations utilizing aircraft in the mold of Airbus A320 operating at or near sea level. The constricted terrain and the presence of residential communities and business establishments preclude the extension of the existing runway in to the south. The required runway extension of approximately 1,000 m will have to veer towards the north. Considering the requirements of an obstacle free approach area, existing development will have to be planned to follow the required restriction for at least an additional 1,000 m. No housing / structures should be permitted in the first 500 m and thereafter limitation on heights of buildings will have to be imposed as a result of runway extension and additional airspace requirements. In view of these, several key structures will have to be demolished. Insufficient Width and Bearing Strength The 30 m. width of the existing runway is not appropriate for the design aircraft (A320) and will require widening to 45 m for aerodrome code number 4C. Furthermore, the bearing strength / bearing capacity is not adequate for the new critical aircraft and will require strengthening or replacement. Need for Apron Relocation The existing apron is located within the runway strip for aerodrome code number 4. To meet the dimensional criteria for taxiway and apron additional areas are needed. New Terminal Area Required The existing terminal area is located at the approach end of Runway 35 at a distance of no more than 89 meters from the centerline of runway. Due to this location, redevelopment of the terminal area to meet the appropriate dimensional criteria for aerodrome code number 4C is not possible. A new terminal complex extending from the aircraft parking positions on the airside interface to the ground access system (airport circulation roadways and parking facilities) will have to be developed.
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Inadequate Utilities Existing utility systems have limited capacity and have to be replaced to meet the increasing needs. Air Navigation Systems Required The present visual and electronic aids to navigation are limited and will require an upgrading for aerodrome code number 4. New or additional navigational aids are needed to provide guidance during landing and also to permit access to the airport during poor weather conditions. Support Facilities Airport support facilities have to be improved for efficient and safe operation of the airport. Aircraft rescue and firefighting service have to meet Aerodrome Category 6 for rescue and fire fighting.
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3. 3 SECTION
AIR TRAFFIC DEMAND FORECAST
3.1
3.1.1
THE FORECAST METHODOLOGY

Previous Studies The latest comprehensive forecasts of passenger, cargo and aircraft movements in Philippine airports were conducted under the JICA-funded Master Plan Study on the Improvement of National Airports in the Philippines (February 2006). The JICA-funded study reported that many airports in the Philippines require significant improvements since their facilities do not comply with safety standards and their capacities are often inadequate. Using the macroeconomic and population assumptions available in 2005, the master plan forecast the 2005-2025 annual air passenger and cargo movements in the Philippines. The master plan tested various econometric models on the relationship between the historical traffic and economic output, both at the national and regional levels. National control equations for passenger and cargo, respectively, were established using the most statistically significant regression results. Air sector forecast equations were also estimated. The most statistically significant model for each air sector (e.g., ManilaTagbilaran) was used in deriving traffic forecasts per air sector and the sum of the forecasts for all the air sectors was constrained by the projections using the national control equation. For aircraft movements, the master plan generated the forecasts based on the passenger and cargo demand and the loading capacity of aircraft. For general aviation and military traffic, the master plan estimated the future levels using projected regional population growth rates. The JICA studys domestic traffic forecast for the whole Philippines is summarized in Table 3.1-1 below. Table 3.1-1 JICA Studys Domestic Traffic Forecast for the Philippines
2005 2010 19,273,384 410,922,036 2015 25,526,902 545,177,168 2020 33,737,732 721,540,774 2025 44,520,182 953,178,954
Domestic Air Passenger Movements Domestic Cargo Movements (kg)
14,787,619 314,459,620
Source: Master Plan Study on the Improvement of National Airports in the Philippines (JICA, February 2006)
Table 3.1-2 below shows the JICA Studys forecast of domestic traffic in the ManilaTagbilaran air sector.
Page 3-1
Table 3.1-2 JICA Studys Domestic Traffic Forecast for Tagbilaran Airport
2005 Domestic Passenger Movements Domestic 166,053 General Aviation and 9,738 Military Total Passenger Movements 175,791 Domestic Cargo Movements (kg) Domestic 1,023,917 General Aviation and 1,616 Military Total Cargo Movements 1,025,533 Domestic Aircraft Movements Domestic no forecast General Aviation and 2,575 Military Total Aircraft Movements 2,575 2010 245,392 10,544 255,936 1,282,226 1,752 1,283,978 2,337 2,790 5,127 2015 353,698 11,289 364,987 1,657,432 1,879 1,659,311 3,369 2,989 6,358 2020 494,712 12,005 506,717 2,153,321 2,001 2,155,322 4,712 3,180 7,892 2025 679,707 12,686 692,393 2,806,610 2,117 2,808,727 6,473 3,362 9,835
The simulation of busy-day and peak-hour aircraft movements was also conducted in the JICA study, the results of which are presented in Table 3.1-3. Table 3.1-3 JICA Studys Simulation of Busy-Day and Peak-Hour Aircraft Movements in Tagbilaran Airport
2010 4 2 2015 6 3 2020 8 3 2025 11 3
Busy-Day Movements Peak-Hour Movements
While the development objectives at the time the JICA study was being undertaken have not changed significantly, economic circumstances and economic growth targets have dramatically changed. Thus, this study revisited the forecasts of the JICA study and came up with new forecasts using updated economic projections. A comparison between the JICA forecast and actual passenger traffic performance is shown in Figure 3.1-1, indicating an underestimation of air passenger movements in recent years.
2,500,000 Annual Passenger Movements 2,000,000 1,500,000 1,000,000 500,000 0 2001
2005
2009
2013 Year
2017
2021
2025
Linear Trend
JICA/DOTC
Actual
Page 3-2
Figure 3.1-1 Comparison of Existing Forecast with Actual Air Passenger Movements 3.1.2 The Forecasting Exercise Projecting Macroeconomic Performance Real gross domestic product (GDP) growth for the past 20 years generally exhibited an upward trend but had been marked by periods of contraction. The country experienced negative growth in 1991, the year that Mount Pinatubo erupted and the power crisis crippled many industries, and in 1998, as a result of the East Asian currency crisis. Table 3.1-4 below shows the historical growth rates of the Philippines real output. Table 3.1-4 Real Gross Domestic Product (in million pesos, constant 1985 prices)
Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 GDP 571,883 591,423 616,923 658,581 699,448 720,691 716,521 718,942 734,157 766,368 802,224 831,122 893,151 888,001 918,160 972,962 990,046 1,034,095 1,085,072 1,152,174 1,209,473 growth 3.42% 4.31% 6.75% 6.21% 3.04% -0.58% 0.34% 2.12% 4.39% 4.68% 3.60% 7.46% -0.58% 3.40% 5.97% 1.76% 4.45% 4.93% 6.18% 4.97%
Sources: 1987-2005 data Philippine Statistical Yearbook, 1991 to 2006 editions 2006 figure May 31, 2007 press release by the National Economic and Development Authority (NEDA)
In the time series of the National Statistical Coordination Board (NSCB) and the database of multilateral agencies, the GDP growth for 2006 is 5.4%, the figure released by the government in early 2007. It is expected that this will be adjusted to 5.5% because the NEDA announced on May 31, 2007 that the full-year growth figure for 2006 should be revised upwards to 5.5% to account for the expansion in the business-outsourcing sector. This study decided to adopt the recent pronouncement. In addition to examining the historical data shown above, this feasibility study compared the governments growth projections with those of different multilateral and research institutions to be able to decide what future growth rates could be applied in the traffic
Page 3-3
forecasts. The Medium-Term Development Philippine Plan (MTPDP)-2005 Update projects a growth rate of 7% to 8% by 2010. This range, however, seems overestimated because real GDP growth had been below target in the past few years. Particularly in 2005 and 2006, there was a huge gap between the growth targets and the economys actual performance. Table 3.1-5 shows the actual performance of the economy vis--vis the MTPDP targets in 2005 and 2006.
Table 3.1-5 Actual Real GDP Growth and MTPDP Targets (in %)
2005 5.0 5.3 6.3 2006 5.5 6.3 7.3 2007 2008 2009 2010
Actual growth, past two years Targets, MTPDP 2005-2010 Low High
6.5 7.5
6.8 7.8
7.0 8.0
7.0 8.0
Sources: NSCB, NEDA
More recently, the economy showed signs of faring better as GDP grew by 7.5% in the second quarter of 2007 over the year-ago figure 7. This growth is the highest the economy has achieved in the last 20 years. From the expenditure side, this growth is largely government-driven as government consumption spending (13.5 percent) and capital formation via construction (18.9 percent) grew extraordinarily fast, with construction growth dominated by government spending on public construction projects (39.6% growth against 2.5% growth in private construction). Although some skeptics say that a government spending-led growth may not be sustained in the immediate term given the lackluster performance in revenue generation, the growth caused a revived optimism within the private and public sectors. Table 3.1-6 below presents a comparison of the GDP growth targets by the NEDADevelopment Budget Coordinating Committee (DBCC) with the projections by other entitiesthe United Nations-Economic and Social Commission for Asia and the Pacific (UNESCAP), Asian Development Bank (ADB), World Bank, International Monetary Fund (IMF) and the Economist Intelligence Unit (EIU), the Hongkong and Shanghai Bank Corp. (HSBC), and Standard Poors credit rating agency. It is noteworthy that ADB sharply upgraded its growth outlook for the Philippines for 2007, from 5.4% (released in March 2007) to 6.6%. This upbeat prospect is also shared by the recent pronouncements of HSBC and Standard & Poors. Table 3.1-6 Forecasts of Philippine GDP Growth, Various Sources (in %)
2007 6.1-6.7 5.6 6.6 5.6 5.8 5.3 6.5 7 2008 6.1-6.8 2009 2010
NEDA-DBCC, October 2007 UNESCAP, Asia and the Pacific, March 2007 ADB, Asian Development Outlook 2007, September 2007 World Bank, Global Economic Prospects, April 2007 IMF, World Economic Outlook 2007, April 2007 EIU, Country Forecast: Philippines, May 2007 HSBC, October 2007 Standard & Poor's, October 2007
6 5.8 5.4 6.5-7
5.3
5.4
National Statistical Coordination Board Page 3-4
At the time this study is being conducted, the growth range for full year-2007 being considered by policymakers is 6.1%-6.7% for 2007 and 6.1%-6.8% for 2008. This study decided to adopt a 6.5% GDP growth (average of the low and high forecast of DBCC) for this year and the next two years. For 2010, it is assumed that the low end of the MTPDP target, the elusive 7% growth, may be realized. As estimate of long-run growth, the average of the actual and projected growth rates for 2000-2010 is used. The average is 5.5% annually. This long-run growth rate takes into account the optimistic short- and medium-term forecasts by both the government and the private sector, as well as possible contractions in the future (the assumed average smoothes out fluctuations during high growth and contractions due to external shocks and political upheavals (e.g., the 1.8% growth in 2001, the year when the SARS outbreak, 9/11 attack and EDSA II occurred)). In summary, the assumed GDP growth forecasts as well as the corresponding GDP levels (in constant 1985 prices) used in updating the JICA model are as follows: Table 3.1-7 GDP Projections GDP (PHP million, 1985 prices) 1,358,934 1,447,264 1,541,336 1,649,230 2,155,478 3,681,867 4,812,053 6,289,161 Annual GDP Growth 6.50% 6.50% 6.50% 7.00% 5.50% 5.50% 5.50% 5.50%
Year 2007 2008 2009 2010 2015 2025 2030 2035
Source: Study Teams calculations
Capacity-Constrained Model Actual passenger movements for the last 15 years, can be viewed as consisting of a cyclic time series as shown in Figure 3.1-2. The chart shows that the time series can be represented by a simple logistic model that assumes growth occurring in discrete intervals of one whole year (to temper the seasonal variation). The series has been generally increasing from 1991 up to 1995 until it was disrupted by world economic trends, which ushered in the general decrease in air passenger trips heightened by the Asian Economic Crisis of 1997 and further complicated by the prevailing fear of air travel at the turn of the century. More recently, a long term increase in trend is observed.
Page 3-5
250,000 Annual Air Passenger Movement 200,000 150,000 100,000 50,000 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Ye ar
Figure 3.1-2 Historical Annual Passenger Movements at Tagbilaran Airport
This study attempts to factor in the effect of capacity constraint on airport operations by recognizing that future growth rates are logically a function of the remaining capacity (i.e., capacity less prevailing traffic demand). This effect can be modeled by a simple logistic function developed by searching for the solution to
dN CN = rN ( ) , for the dt C
period t to t+1. In this model, r is the periodic growth rate and N is the number of air passenger trips at any time t. The logistic model assumes growth occurring in discrete intervals with a density-dependent term derived from the capacity of the facility. The solution to this results in a more robust capacity-constrained model given by
N (t ) =
Where N(t) N(o) r C = = = =
CNo No + (C No)e rt
traffic volume after (t) years initial traffic volume at t = 0 computed historical growth rate estimated capacity of the facility
The foregoing model was adopted in this Study to forecast future capacity-constrained traffic volumes. In this Study, the forecast traffic volumes derived from the JICA Study using more updated macroeconomic indicators are used as a control number to represent un-constrained air traffic volumes at the proposed Panglao Island Airport.
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3.2
3.2.1
THE FORECAST RESULTS

Annual Air Passenger Traffic Forecast Domestic Passenger Movements With 2007 as a base year, domestic passenger movements are forecast under this Study to grow by about 7.9 percent annually for 10 years from opening date to reach a volume of 938,000 in 2020.
Table 3.2-1 Forecast of Annual Domestic Air Passenger Volume (000)

Low Medium High 336 336 336 403 437 525 519 656 992 627 938 1,561 716 1,262 2,039 782 1,590 2,333 828 1,882 2,479 Average Compound Growth Rate 2010-2015 5.2% 8.5% 13.6% 2010-2020 4.5% 7.9% 11.5% 2010-2035 2.9% 6.0% 6.4% Note : 2007 data estimated by Study Team from current traffic performance Year 2007 2010 2015 2020 2025 2030 2035
Thereafter, a slowing down in traffic growth is expected, ultimately reaching a forecast volume of 1.88 million passenger movements in 2035.
Annual Domestic Passenger Movements ('000)
2,500 2,000 1,500 1,000 500 0 2005 2010 2015 2020 2025 2030 2035
Year Low Growth Medium Growth (Target Volume) High Growth
Figure 3.2-1 Updated Forecast of Annual Domestic Passenger Movements (000)
Page 3-7
Considering the prevailing trend in visitor arrivals arriving by air and the foreign visitor projections in the recently formulated Bohol Tourism Master Plan, a rough estimate of potential air passenger movements from selected international destinations can me made, the summary of which are shown in Table 3.2-2. Table 3.2-2 Potential International Passenger Movements (000)
Foreign Visitor Arrivals by Air Potential International Air Passenger Traffic (Arrivals)
Year
Foreign Visitor Arrivals, Total (Via All Modes)
via Domestic Flights
2011 (Projects Opening Year) 2015 2020 2025 2030 2035
61.0 83.8 124.7 185.7 276.3 411.3
60.3 83.0 123.5 183.8 273.6 407.1
54.7 75.5 107.9 145.1 182.8 216.5
5.7 7.5 15.6 38.7 90.7 190.7
3.2.2
Forecast of Annual Air Cargo Movements For the forecast of air cargo movements, the projections based on the national control equation for the nationwide airports master plan undertaken by JICA (February 2006) were updated using more recent macroeconomic targets. The national control equation (tstats are in parentheses) established by the master plan is as follows: - 20,844,188.90 + 279.9 *GDP (- 0.551) (7.095) R2=0.93 The resulting forecast was regarded as the potential unconstrained cargo movement. Using the average historical cargo-to-passenger ratio, a lower growth rate was derived. The two estimates combine to provide a medium growth estimate, taken to be the average between the low and high estimates. The resulting forecast for the Tagbilaran air cargo traffic is shown in Table 3.2-3 Table 3.2-3 Forecast Annual Air Cargo Movement (kgs) Year 2010 2015 2020 2025 2030 2035 2010-2015 2010-2020 2010-2035 Low Medium High 5,647,390 6,464,131 6,872,501 7,271,012 8,411,727 8,982,084 8,780,347 10,752,932 11,739,225 10,024,553 13,569,982 15,342,697 10,952,517 17,019,033 20,052,291 11,594,236 21,336,441 26,207,543 Average Annual Compounded Growth Rate 5.18% 5.41% 5.50% 4.51% 5.22% 5.50% 2.92% 4.89% 5.50%
Page 3-8
3.2.3
Forecast of Aircraft Movements A forecast of annual aircraft movements over the planning period is detailed in Table 3.2-4 Table 3.2-4 Forecast of Annual Aircraft Movements 2010 984 4,161 135 5,280 2015 977 4,992 179 6,148 2020 952 7,072 372 8,396 2025 713 7,176 520 8,409 2030 533 9,048 1,144 10,725 2035 399 9,256 1,976 11,631
Gen Aviation Domestic Scheduled Potential International Total 3.2.4 Peaking Characteristics
For purposes of facility planning, the characteristics of a typical Busy Day as defined by IATA are derived using past traffic records. In 2006, the record for a typical busy month is summarized in Figure 3.2-2 and Figure 3.2-3.
1,200 1,000 800 600 400 200 0
2nd Busiest Day 918 pax movements
Passenger Movements
Ave Week
Figure 3.2-2 Typical Busy Day (Passenger Movements, December 2006)

4 Aircraft Movements 3 2 1 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Figure 3.2-3 Typical Busy Day (Aircraft Movements, December 2006)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Day Passenger Movements Average
Hour
Arrivals Departures
Page 3-9
As a result, the following parameters for facility design were derived: Annual Passenger Movements Busy Day Total Movements Peak-Hour Movements Directional Volume Arrival Departure Annual Aircraft Movements Busy Day Total Movements Peak-Hour Movements Directional Volume Arrival Departure : : : : : : : : : : 240,176 (2006) 918 Ratio to Annual Movements 298 Ratio to Busy Day 58 % 42 % 3,306 (2006) 19 Ratio to Annual Movements 6 Ratio to Busy Day 50 % 50 %
: 1/261.6296 : 1/3.080537
: 1/174 : 1/3.16667
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4. 4 SECTION
AIRPORT FACILITY REQUIREMENTS
4.1
4.1.1
ELEMENTS OF PRELIMINARY LAYOUT PLAN

Planning Criteria and Parameters In accordance with the relevant provisions of ICAO guidelines and using planning parameters derived from previous projects of the Consultant, the requirements for various facilities were established to optimally address the medium and long-term requirements of Panglao Island Airport. Developing a new airport will entail a substantial amount of time for project preparation and implementation. The design year for medium-term development is, therefore, assumed to be at year 2020. Design for long-term development is based on projected requirements for year 2035. A summary of the planning criteria and design parameters for the horizontal and vertical components of the airport is given in Table 4.1-1 and Table 4.1-2. Table 4.1-1 Planning Criteria and Parameters
Present Condition as of 2006 240 Future Requirements 2015 671 656 15 3,380 2,194 8,412 6,148 5,969 179 298 2 A319/B737 Manila 3C NonInstrument 17/35 1,779 30 334 3 A320 Manila 4C Precision Cat 1 03/21 2,500 45 2020 969 938 31 10,753 8,396 8,024 372 485 4 A320 Manila 4C Precision Cat 1 03/21 2,500 45 2035 2,264 1,882 381 21,336 11,631 9,655 1,976 1,109 7 B747 Regional (Asia) 4E Precision Cat 1 03/21 3,400 45
Item 1. Annual Passengers ('1000) Domestic Potential International 2. 3. Annual Cargo (tons) Annual Aircraft Movements Domestic Potential International 4. 5. 6. 7. 8. 9. 10. Peak-Hour Passengers (one-way) Peak-Hour Commercial Aircraft Movements (one-way) Largest Aircraft Longest Haul Aerodrome Reference Code Operational Category Runway Length (m) Width (m)
Page 4-1
Table 4.1-2 Planning Criteria and Parameters

Present Condition as of 2006 Future Requirements 2015 2020 2035
Item 11. Runway Strip Length (m) Width (m) 12. 13. 14. 15. 16. 17. Taxiway Aircraft Stands Passenger Terminal Building (Minimum req' area, sq.m.) Dedicated Cargo Terminal Building Administration Building Crash-Fire-Rescue Facilties Building Area Site Area 19. 20. 21. Car Park (no of slots) Air Navigation Systems Rescue and Fire Fighting
1842.3 147.5 2 stub 3 850 na Integrated with PTB Cat 5 144 na 15 NonInstrument Category 4
2,800 300 2 new stub 3 5,200 1,000 Cat 6 500 1,200 111 Precision Cat 1 Category 6
2,800 300 2 stub 4 7,600 978 1,000 Cat 6 500 1,200 162 Precision Cat 1 Category 6
3,520 300 parallel 7 20,000 1,940 1,200 Cat 9 1,000 3,000 370 Precision Cat 1 Category 9
4.2
4.2.1
PLANNING PARAMETERS
General The physical characteristics of airports to satisfy internationally accepted standards for operational efficiency and safety are prescribed under ICAO Annex 14, among other References. ICAO Annex 14 specifies the minimum configuration and physical characteristics of runway, taxiway and apron in accordance with an Aerodrome Reference Code and Approach Category of the Airport Runway. A set of interrelated planning criteria consisting of the following factors needs to be established to form the basis of the facility design for medium and long term development: a) b) c) d) Design Aircraft Aerodrome Reference Code Runway Dimensions Approach Category of Runway
The Aerodrome Reference Code is a function of the design aircraft that the runway is intended to serve. Approach Category of the Runway is determined on the basis of anticipated weather conditions (e.g., occurrences of low visibility conditions) and
Page 4-2
intended service grade (i.e., acceptable level of flight cancellations and delay) for an airport.
4.2.2
Design Aircraft For domestic operation, the main fleet of PAL, the dominant carrier, consists of A330, A320 and B737. PAL is modernizing its narrow-body fleet and has firmed up orders for nine A320s. It will also lease two more A320s, four A319s and five A320 standby aircraft. Considering the estimated future traffic volume, the short to medium-term passenger demand will be in the range to be served by small-sized jet aircraft such as A320-200 and B737. For the short to medium-term development period, A320 should be chosen as the design aircraft considering its larger dimensions. For unconstrained long-term development, a larger aircraft (i.e., A330 or B747 assuming PAL to remain the dominant carrier) will be considered for airside separation distance requirements. Table 4.2-1 provides a comparison among these three (3) aircraft models.
Table 4.2-1 Design Aircraft for Panglao Island Airport

Criteria Max Take-off Weight Seating Capacity Overall Length Wing Span Tail Height Aircraft Model B737-400 A330-300 63 t 212 t 150-160 300 36.4 m 63.7 m 28.9 m 60.3 m 11.2 m 17.62 m
A320-200 67 t 160-170 37.6 m 34.1 m 11.9 m
B747-400 395 t 400 70.7m 64.9m 19.58m
4.2.3
Aerodrome Reference Code Table 4.2-2 outlines the provisions of Aerodrome Reference Code of ICAO Annex 14. The short to medium-term development plans for the Panglao Island Airport should satisfy the minimum requirements of A320-200 aircraft, categorized as Reference Code 4C under ICAO Annex 14. For long-term requirements, particularly to provide for operation of lager aircraft such as A330 and B747, airside separation distance requirements of Reference Code 4E should be taken into account. A basic runway length of 2,500-m and width of 45-m to cater to domestic operations of A320 class aircraft need to be provided.
Page 4-3
Table 4.2-2 Aerodrome Reference Code Of ICAO Annex 4

CODE ELEMENT 1 Code Number Aeroplane Reference Field Length (L) L < 800 m 800m L < 1,200m 1,200m L < 1,800m L 1,800m Code Letter Wingspan ( W ) A B C D E F W < 15m CODE ELEMENT 2 Outer Main Gear Wheel Span ( Ws ) Up to but not including 4.5m
1 2 3 4
15m up to but not including 24m 4.5m up to but not including 6m 24m up to but not including 36m 6m up to but not including 9m
36m up to but not including 52m 9m up to but not including 14m 52m up to but not including 65m 9m up to but not including 14m 65m up to but not including 80m 14m up to but not including 16m
4.2.4
Approach Category of Runway Tagbilaran Airport is categorized as a secondary airport and serves as the main airport access for Bohol. Once replaced by Panglao island airport, the new facilities should be capable of providing efficient, reliable service and for such purpose the main runway should be precision approach equipped with Instrument Landing System (ILS), while the other runway may be non-precision instrument approach with directional guidance provided by DVOR/DME in the interim. However, once CNS/ATM becomes fully operational DVOR will be phased OUT in favor of SBAS. The main and precision approach runway is determined on the basis of prevailing wind direction (Table 4.2-3) and occurrences of low visibility conditions. While the wind is predominantly mild the general direction is southerly and north-easterly. Table 4.2-3 Wind Direction and Speed (m/s)
Direction Speed (mps) CALM 1-4 5-8 >8 TOTAL N NNE NE ENE E ESE SE SSE S SSW SW WSW W WNW NW NNW TOTAL 6.9 0.3 0.0 7.2 5.8 14.3 2.8 5.2 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 5.8 14.4 2.8 5.2 1.2 7.2 0.0 0.0 7.2 5.7 0.0 0.0 5.7 15.5 0.2 0.0 15.7 6.8 0.4 0.0 7.2 10.6 0.2 0.0 10.8 4.2 0.1 0.1 4.4 7.6 0.0 0.0 7.6 1.1 0.0 0.0 1.1 2.3 0.0 0.0 2.3 1.1 0.0 0.0 1.1 0.3 98.3 1.2 0.2 100.0
During the rainy months of October and November, when the visibility is most likely to be low, the predominant direction is indeed southerly and north-easterly.
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Table 4.2-4 Normal Values

(1) Month (2) (3) Rainfall Amount No. of (4) Max
o
(5) Min
o
( C) ( C) (mm) RD JAN 103.1 14 30.8 22.1 FEB 78.7 11 31.3 22.0 MAR 68.2 10 32.1 22.2 APR 69.6 8 33.0 23.1 MAY 75.1 10 33.3 24.1 JUN 112.3 15 32.6 24.1 JULY 118.8 14 32.3 24.1 AUG 111.8 13 32.7 24.3 SEPT 135.5 15 32.5 24.1 OCT 178.7 18 32.1 23.8 NOV 182.0 18 31.7 23.3 DEC 126.3 16 31.2 22.7 ANNUAL 1360.2 162 32.1 23.3 Source : PAGASA Station Name: Tagbillaran City, Bohol Latitude : Period: 1971 - 2000 Longtitude:
(6) (7) (8) (9) Temperature Mean Dry Wet Dew Bulb Bulb Pt. o o o o ( C) ( C) ( C) ( C) 26.5 26.0 23.8 23.0 26.6 26.3 23.8 22.9 27.1 27.0 24.1 23.0 28.0 28.0 25 24.0 28.7 28.6 25.7 24.7 28.4 28.2 25.6 24.7 28.2 28.0 25.4 24.5 28.5 28.2 25.4 24.4 28.3 28.0 25.4 24.5 27.9 27.5 25.3 24.5 27.5 27.0 25.0 24.3 27.0 26.6 24.5 23.7 27.7 27.4 24.9 24.0 09 38"36" N o 123 18"18: E
o
(10) (11) (12) (13) (14) (15) (16) Wind No. Days w/ Vapor Rel. MSLP DIR SPD Cloud TSTM LTNG Pressure Hum. Amount (mbs) % (MBS) (16 pt) (mps) (okta) 28.0 83 1010.7 NE 2 6 2 1 27.7 81 1011.0 NE 2 6 1 1 28.0 79 1010.8 NE 2 5 3 2 29.6 78 1009.6 NE 1 5 5 5 31.0 79 1008.8 S 1 5 12 15 31.0 81 1008.7 S 1 6 13 18 30.6 81 1008.6 S 2 7 12 16 30.5 80 1008.6 S 2 7 8 15 30.6 81 1008.9 SW 1 7 13 18 30.7 84 1008.9 S 1 6 14 20 30.3 85 1009.0 NE 1 6 10 14 29.3 84 1009.9 NE 2 6 4 6 29.8 81 1009.5 NE 2 6 97 131 Elevation: 6.0 m
During the month of November, the general direction is North to Northeasterly, accounting for about 52 percent of the time. Table 4.2-5 Climatological Extremes Wind Speed for November
November (1971-2000) Direction CALM 1-4 5-8 >8 TOTAL
N NNE NE ENE E ESE SE SSE S SSW SW WSW W WNW NW NNW TOTA L
Speed (mps) 13.7 0.1 0.0 13.8 13.4 0.0 0.0 13.4 24.8 0.0 0.0 24.8 2.4 0.0 0.0 2.4 4.4 0.0 0.0 4.4 0.7 0.0 0.0 0.7 4.7 0.0 0.0 4.7 4.7 0.0 0.0 4.7 7.7 0.1 0.0 7.8 2.9 0.0 0.0 2.9 4.2 0.0 0.0 4.2 2.4 0.2 0.0 2.6 6.4 0.1 0.0 6.5 1.8 0.0 0.0 1.8 3.1 0.1 0.0 3.2 2.1 0.0 0.0 2.1 0.0 99.4 0.6 0.0 100.0
In October, the predominant wind shifts from North-Easterly to Southerly. Wind Speed for October
October (1971-2000) N NNE Direction CALM 1-4 5-8 >8 TOTAL
NE ENE E ESE SE SSE S SSW SW WSW W WNW NW NNW TOTAL
Speed (mps) 6.9 0.3 0.0 7.2 5.8 0.0 0.0 5.8 14.3 0.0 0.1 14.4 2.8 0.0 0.0 2.8 5.2 0.0 0.0 5.2 1.2 0.0 0.0 1.2 7.2 0.0 0.0 7.2 5.7 0.0 0.0 5.7 15.5 0.2 0.0 15.7 6.8 0.4 0.0 7.2 10.6 0.2 0.0 10.8 4.2 0.1 0.1 4.4 7.6 0.0 0.0 7.6 1.1 0.0 0.0 1.1 2.3 0.0 0.0 2.3 1.1 0.0 0.0 1.1 0.3 98.3 1.2 0.2 100.0
In view of the above, the orientation of the approach runway is governed by the wind rose of Figure 4.2-1. The instrument approach is recommended to be from the south (RWY03).
Page 4-5
NNW NW
NNE
NE
WNW
ENE
0.1
0.1
Calms 99.5
0.1
WSW
0.1 0.1
ESE
SW SSW S SSE
SE
Usability Rating 99.85%
Figure 4.2-1 Wind Rose Analysis
Page 4-6
4.3
4.3.1
RUNWAY STRIP AND OBSTACLE LIMITATION SURFACES

Runway Strip and Safety Area
Following ICAO standards, the dimensions of a runway strip for a precision approach runway code number 4 shall, wherever practicable, be made to extend laterally at least to 150 m on each side of the centerline of the runway. It should extend before the threshold and beyond the end of the runway by at least 60 m. Any object situated on the runway strip which may endanger aircraft should be regarded as an obstacle and should, as far as practicable, be removed. Except for visual aids required for air navigation purposes, no fixed object shall be permitted on a runway strip within 60 m of the runway centerline. A runway end safety area should be provided at each end of the runway strip and should extend from the end of runway strip by at least 90 m. The width of the runway end safety area should be at least twice that of the associated runway (i.e., 90 m). An object situated within a runway end safety area that may endanger aircraft should be regarded as an obstacle and should, as far as practicable, be removed. 4.3.2 Obstacle Limitation Surfaces
The following obstacle limitation surfaces shall be established, in accordance with ICAO standards, for a precision approach runway category I: Conical surface; Inner horizontal surface; Approach surface; Transitional surfaces; Take-off climb surface; Inner approach surface; Inner transitional surfaces; and Balked landing surface. Existing objects above these surfaces should, as far as practicable, be removed except when the object would not adversely affect the safety of aircraft operation. 4.3.3 Runway Length
Runway length requirements are based on several factors, which include aircraft performance characteristics, environmental characteristics, site conditions and route characteristics. Among the significant factors in determining the length requirement are the aircraft take-off weight, wingflap configuration, airport altitude, temperature, wind direction and speed, runway slope, and haul distance. The reference field lengths for various aircraft makes and the desired runway length based on the requirements of PAL as the dominant carrier are shown in Figure 4.3-1. For the new Panglao Island Airport, a recommended field length of 2,500 m is initially recommended (target year 2020) to take into consideration the requirements of the existing airlines in operation. Provisions for incremental adjustments for long-term requirements should be considered.
Page 4-7
Figure 4.3-1 Runway Length Requirements
Aircraft Class Gen Aviation Small Jet Small Jet Small Jet Small Jet Small Jet Medium Jet Medium Jet Large Jet
Representative Aircraft Bae ATP B737-200 B737-300 B737-400 A319-100 A320-200 A330-300 A340-300 B747
Code
3C 4C 4C 4C 4C 4C 4E 4E 4E
Reference Field Length (m) 1,540 2,700 2,300 2,700 2,080 2,180 2,960 3,230 3,380
Desired Runway Length (m) 1,500 2,100 2,100 2,100 2,100 2,100 2,500 3,200 3,300
4.4
PASSENGER AND CARGO TERMINAL BUILDING

The floor area required for the passenger terminal building is calculated by multiplying the number of peak-hour passengers by the required unit floor area per passenger. Airports in the Philippines have varied Floor Area to Peak-Passenger Ratio ranging from a low of 5 sq.m. per passenger to a high of 20 sq.m. per passenger. A minimum unit floor area of 12 sq.m. per peak-hour passenger has been adopted for passenger terminal master plan design, to be provided with ample room for future expansion. A linear-modular design for terminal building will easily accommodate any future expansion as necessary. The floor area of the cargo terminal building is estimated based on the annual cargo volume and unit cargo handling capacity. A handling capacity of 11 tons per sq.m. is adopted for estimating the cargo handling area based on experience from other similar projects as shown in Table 4.4-1. Table 4.4-1 Estimated Cargo Volume-to-Floor Ratio for Various Airports Sample Airport Davao Gen Santos Singapore Shenzen Taipei Guangzhou Average Estimated Tons per Square Meter 7.5 10.9 9.8 9.5 15.8 11.3 10.8
4.5
4.5.1
OTHER BUILDINGS
Control Tower Building The Air traffic Control Tower is the focal point for controlling operations within the designated airspace and for controlling aircraft and vehicles on the airport movement area .It should be located close to the runway midpoints and equidistant from other airfield
Page 4-8
areas. It should be high enough to enable the air traffic controllers to have a clear unobstructed and direct view to all operating positions of the airport traffic area. The approximate height of the control tower is 20 meters above the ground. This height is necessary to provide adequate visibility for taxiway/runway and to provide the minimum vertical angle of 35 minutes for depth perception to the farthest aircraft traffic surface on the aerodrome. The floor area of the control tower will have an aggregate area of around 300 sq.m. to accommodate air traffic controllers, control consoles, chief controllers office, staircase, and other areas. 4.5.2 Administration Building The floor space required for administrative and operational functions will be about 1,000 sq.m., enough to accommodate a total number of 100 personnel. Future requirements are expected to grow to about 1,200 sq. meter in anticipation of possible future growth in personnel number. 4.5.3 Fire Station Building The floor space required for fire station building with enough circulation space will be about 500 sq.m. based on the requirement of fire fighting vehicles.
4.6
AIR NAVIGATION
Air navigation systems, including radio navigation aids, aeronautical ground lights, meteorological observation systems, air traffic control (ATC) and aeronautical telecommunication systems should be provided to allow for precision approach category I operations.
4.7
4.7.1
UTILITIES AND OTHER SUPPORT INFRASTRUCTURE

Water Supply System Water Source The new Panglao Airport will obtain its water supply from the water distribution system of Bohol. The water system of Bohol is a joint venture project of the Local Government and Salcon. The water system is an expansion and improvement of the existing water supply system of Tagbilaran City and its adjoining municipalities. The present water source of Tagbilaran City will be supplemented by additional wells within the city and conveyed to a ground reservoir in Banat-i Hill. The Banat-i ground reservoir will be delivering water to its neighboring municipalities. At present, the system comprises the groundwater wells, Banat-i reservoir and pipelines networking in Tagbilaran. Parallel with the realization of the Panglao Airport a distribution pipeline is proposed to be laid from the Banat-I reservoir up to Panglao town. Hence, the proposed pipeline of 200 mm diameter will be tapped and therefore will be the source of water supply to Panglao Airport. Water Storage The potable/domestic and firewater storage requirement will be provided by a reinforced concrete ground reservoir. The reservoir will have a combined capacity of 380 cubic meters, 270 cubic meters fire storage and 110 cubic meters domestic storage. The potable water storage will be able to supply the domestic water requirement of the airport for one
Page 4-9
(1) day. The fire requirement will be on the sprinkler system, inside and outside hose streams of the terminal building for 60 minutes. Pumping Station The pump house will be constructed adjacent to the ground reservoir. The potable water supply will be provided with a constant pressure booster system. The booster system will consist of three (3) pumps with a total capacity of 250 gallons per minute (gpm). The individual pump capacities will be rated at 20%, 40% and 40% of the total system demand. The fire water system will consist of three (3) pumps: one (1) electric motor driven, one (1) diesel engine driven and one (1) jockey pump. The fire system will have a minimum capacity of 1000 gallons per minute (gpm). The fire pump will be horizontal centrifugal single stage pump. The jockey pump will have a minimum capacity of 20 gallons per minute and will be used to maintain the required minimum pressure in the fire line at all times. Potable and Fire Water Distribution Systems The peaking factors to be used for the design of the distribution system are the following: Average Day Demand, F= 1.00 Maximum Day Demand, F= 1.50 Peak Hour Demand, F= 2.50 The sizing of the pipelines was based on the peak hour demand at a minimum residual pressure of 14 meters or 20 psi. The hydraulic analysis was performed using the loop pipe network computer program. The allowable head loss is 10m/1000m and the roughness coefficient for smooth pipes is 120. The minimum and maximum velocities used are 0.40 m/s and 3.0 m/s respectively. The firewater distribution will be a looped system where hydrants, hose cabinets and sprinkler riser will be connected. The system will be analyzed for a combined fire flows of 1000 gallons per minute (gpm). The minimum residual pressure is 46 meters or 65 psi. 4.7.2 Storm Water Drainage Design Conditions The design parameter is governed by the following criteria: a. Computed capacities for reinforced concrete box culvert ( RCBC ) has an allowance of 0.10 m for freeboard while the reinforced concrete pipe culverts (RCPC) are computed for part full capacity. b. Size of drainage structures ( RCPC & RCBC ) is based on DPWH standard sizes, which are available commercially. c. Minimum size of storm sewers is 450 mm. d. The required minimum cover for pipes is 0.60m. e. Velocity of storm water in RCPC and RCBC shall not be less than 0.75 mps and not to exceed 3.00 mps. Very low velocities induce siltation while very high velocities cause abrasion / erosion of the pipe walls. f. Wherever possible, adapt the ground surface grade as the slope of the storm water drains.
Page 4-10
g. At manholes where drains increase in size, maintain crowns at the same level. h. Space surface inlets at turfed area no further apart than 120.00 m Drainage Design Patterns Internal drainage system shall be laid-out such that crossings on runway and taxiways are minimized to facilitate maintenance. Slopes provided in airstrip grades will be directed towards perimeter drainage (trapezoidal canal) outside the operation safety limits or within 3.00m from the security fence. A system of pipe culverts shall be laid out for the internal roads to collect and dispose storm water from building facilities and road surface and is directed towards evenly spaced inlets. These drainage line generally discharges to the proposed outfall draining towards the existing road drainage system, which is the circumferential road on the south and the central road on the north. Generally, possible outfall of the storm water drainage system for Panglao Airport is the Panglao Bay. However, the run-off will be increased due to the development of the airport (an increase in buildings and pavement shall increase the run-off coefficientthereby having a change in flow volume). The need for a bigger drainage structure to be laid out from the proposed site to the outfall of Panglao Bay is approximately 4 km. which is not feasible and impractical to adopt. A retention pond was considered a solution to make the drainage design system more practical and economical. Retention pond shall be located at the outfalls of each drainage system. The size of retention pond is designed by hydraulic calculation based on the parameters given to accommodate the run-off of Panglao Airport. In order to avoid flooding problems downstream, the outflow is to be controlled, carried by a 450 mm diameter pipe and drain out to the nearest existing cross culverts at a distance of 500 meters. It shall be noted that these options shall be assessed more thoroughly as to its function, maintenance and impact during the detailed design period. 4.7.3 Sewage Treatment Plant (STP) Influent Characteristics The assumed influent characteristics are as follows : Biochemical Oxygen Demand, BOD5 Chemical Oxygen Demand, COD Total Suspended Solids, TSS Total Kjeldahl Nitrogen pH Oil and Grease Wastewater Temperature Ambient Air Temperature 250 mg/l 250 60 6.5-8.5 50 18-20 18-22 Celsius 500 mg/l mg/l mg/l mg/l mg/l Celsius
Effluent Characteristics (DAO 35, DENR Effluent Standard)
Biochemical Oxygen Demand, BOD5 Chemical Oxygen Demand, COD Total Suspended Solids, TSS
<20 <80 <30
mg/l mg/l mg/l

Page 4-11
Total Kjeldahl Nitrogen pH Oil and Grease E. Coliform
<100
<5 mg/l 6.5-9.0 mg/l <5 mg/l Count/100 ml
The Process The sewage treatment process is the Sequential Batch Reactor (SBR) ICEAS Modified. The following describes the process in the conventional activated sludge process. It comprises the primary, secondary, and post treatment. These processes together with their components are described as follows : Primary Treatment Screening process separating the coarse material from the sewage being treated. Collection/Equalization Tank where the concentration of the pollutants are stabilized/homogenized through the introduction of air which results to partial BOD removal. Primary Clarifiers process allowing the settleable solids to fall at the bottom of the tank and the lighter material to float on the water surface. This is part of the SBR/ICEAS Basin). Secondary Treatment Aerobic Biological Treatment process where wastewater mixes with biodegradable organic constituents and some metallic inorganic constituents. Anaerobic Digestion process that treats waste with moderate to high pH, nonhalogenated hydrocarbons, moderate to low organic loading, and low to zero biological oxygen. Post Treatment Chlorination disinfects the effluent prior to discharge. Filtration a biological and/or physical treatment consisting of a bed of granular, usually sand, through which the effluent from an aerobic unit produce a high quality effluent. The SBR/ICEAS is a modified activated sludge sequential batch reactor process. Sewage after being pumped from the lift station continuously flows into the pre-react chamber where BOD5 is adsorbed into the biomass. The pre-react chamber acts as an organic selector, increasing the efficiency of the system and preventing the accumulation of filamentous organisms. The partially-treated waste then flows under the baffle wall to the main chamber. When air is on, the adsorbed BOD5 is further oxidized. When air is off, the remaining adsorbed BOD5 is carried to the bottom of the basin and is retained in the sludge blanket for final oxidation during subsequent aeration phases in low load periods. When the sludge is in the settled stage, treated effluent is ready for decanting.
Page 4-12
Treatment is further enhanced by the intermittent operation of the ICEAS system. Each intermittent cycle consists of: Aeration Phase: BOD5 oxidation and nitrification occurs. Settlement Phase: Further BOD5 oxidation, settlement/clarification, and denitrification occurs. Decant Phase: The treatment plant continues BOD5 oxidation, clarification, and denitrification, and automatically decants highly-treated, clear effluent.
The end of phase three, the ICEAS cycle is repeated with the start of aeration. When parallel ICEAS basins are involved, one tank is in the settlement or decant phase. As the cycle continues, the tanks switch phases after a set duration. Wastewater continuously enters the aerating tank and effluent is discharged intermittently from the decanting tank.
4.7.4
Sanitary Sewer System Sanitary Sewer The minimum sewer size is 150 mm diameter. Sewers will be buried at sufficient depth to protect them from traffic loads. The sewer will be laid on a minimum cover from finished grade to its crown is 1.20 meters. The peaking factor used in sizing the sewers was based from Metcalf and Eddys Wastewater Peaking Factor Graph. A peaking factor of 5 was obtained against wastewater flow of 90 cum per day. The maximum spacing between sewer manholes is 100 meters. Drop manholes will be provided where minimum depths specified in the detail drawings are exceeded. Quantity of Sewage The average daily sewage flow per capita is 80% of the water consumption of the airport users. The airport users are the airport staff and crews, passengers, and visitors. The computed sewage flow will be used to determine the capacity of the sewage treatment plant. The average daily sewage flow calculated was 90 cum per day. The domestic sewage will be collected and conveyed through sewers and will be pumped to a sewage treatment plant.
4.7.5
Plumbing System The design of the plumbing system includes all the piping lines within and outside the building up to 1.50m from the building wall. Water Distribution System 1. Population shall be based on building code requirements or number of employees provided by the Owner. 2. Minimum and maximum operating pressures shall be 20 psi and 60 psi, respectively. 3. Average velocity in waterlines shall be 1.2 m/s to 2.4 m/s.
Page 4-13
4. Flow requirements are based on fixture unit method. Sanitary Drainage (sewer) and Vent System The sanitary drainage system shall be designed using the fixture unit method. Demand weight per fixtures, vent sizing, building drains and sewers, and fixture venting loadings shall be based from the requirements of the National Plumbing Code. Minimum slope for horizontal branches shall be 1% for pipe diameter 100mm and above and shall be 2% for pipe diameter 75mm dia. and below. Storm Drainage System The storm drainage shall be designed for an average rainfall intensity of 300 mm/hr, 15 min duration, based on the 10-year precipitation curve. 4.7.6 Solid Waste Disposal The existing waste disposal area is located at a land fill in Tagbilaran City. Solid wastes collected from Panglao will be disposed to the landfill area on a daily basis by dump trucks. The local government is considering developing a five-hectare area in Barangay Albor as a proposed sanitary landfill. This will handle the solid wastes from the City of Tagbilaran and Panglao Island, including those from the airport. Materials recovery following the DENR guidelines will be implemented for waste reduction.
Page 4-14
SECTION 5
5.1
5.1.1
5.
MASTER PLANNING FOR PANGLAO ISLAND AIRPORT
THE
NEW
IDENTIFICATION OF NEW AIRPORT SITE

Alternative Sites In the previous study, the following alternative sites, including the existing airport in Tagbilaran City were analyzed considering airspace availability, wind direction, topography, and accessibility, land use and possible aircraft noise influence on residents: Site 1 Site 2 Site 3 : : : Barangays Bolod, Danao, and Tawala, Panglao Municipality Barangays Tabalong, Tinago and Bingag, Dauis Municipality Existing Tagbilaran Airport, Tagbilaran City
The potential sites identified are shown in Figure 5.1-1.
Figure 5.1-1 Potential Sites for Airport Development
Page 5-1
Using multi-criteria selection technique, it has been confirmed that Site 1 at Panglao town, is the most suitable site for the new Panglao Airport. The comparative assessment among the three (3) alternative airport sites is shown in
Table 5.1-1 Table 5.1-1 Alternative Sites Evaluation
Item
1 Location
Site 1
Barangays Bolod, Tawala & Danao
Site 2
Barangays Tabalong, Tinago and Bingag Limited space and undulated in the northern part Undeveloped low land agricultural area with a very few dwellers Low Low
Site 3
Tagbilaran City Brgys. covered are Cogon, Bo-oy and Taluto Relatively Flat Surrounding area is urbanized High density residential area is situated south of the airport Low High 3km Heavy traffic, road passes through densely populated areas or city proper 3 5 min. Limited High
Topography
Relatively Flat
Land Use
Undeveloped low land agricultural and with a few dwellers Low Low
4 5
Probability of Flooding Population density at site Accessibility: Distance from City, and traffic condition Travel time from the City Air Space Runway Aircraft Noise impacts Existing utilities to be affected - Road - Powerline Filling materials needed
15 km relatively low traffic
8km relatively low traffic
7 8 9 10 11 12
20 30 min.
15 20 min.
Good Good Follows the prevailing wind Low Low
to be diverted Low
to be diverted to be diverted
to be diverted High
5.1.2
Final Site After conducting a survey of the affected structures, including a more detailed assessment of obstacle limitations in Site Number 1, a pre-final orientation was established by the Project Task Force in coordination with ATO which necessitated a reorientation of the original alignment to a new orientation bearing North 30degrees East. The new alignment was later subjected to a new topographic and inventory survey under this Study. An aerial imagery of the site and the identified new orientation is shown in Figure 5.1-2. A topographic map was drawn based on the result of the survey conducted on site. Using WGS84, the coordinates of key points have been identified and plotted on standard A2 paper and prepared to a scale of 1:5,000. Figure 5.1-3 shows the derived depth curves and contours at 0.5 -meter intervals.
Page 5-2
Figure 5.4-2 Satellite Imagery of the Airport Site
Figure 5.1-3 Topographic Features
Page 5-4
5.2
THE PHYSICAL MASTER PLAN CONCEPT

The final master plan for the proposed Panglao Island Airport shall consist of phased development schemes, aimed at addressing the requirements for three target years, namely: (i) short term (2015), (ii) medium term (2020), and (iii) long term (2035). The critical aircraft during the short to medium-term period shall consist primarily of the Airbus 320 (ICAO Code C), in consideration of the current re-fleeting program of PAL, which is the dominant carrier. Provisions are made for ease in expansion due to a shift in larger aircraft such as A330 or B747 (both ICAO Cat E) should the need arise. Considering the long-gestation period required in developing new airport facilities, the key infrastructure required to cater to the requirements of target year 2020 shall be considered for the initial project phase. A summary of the required phased development works are summarized below:
Short to Medium-Term Development:

a. Land acquisition of 215.95 hectares for airport development, inclusive of road rightof-way for airport access b. Runway : 2,500 meters x 45 meters with 7.5 meters with paved shoulders on each side c. Aircraft Parking Area: 250 meters x 161 meters d. Two stub taxiways from the apron to the runway 265.5 meters x 23 meters with paved shoulders on each side. e. Passenger Terminal Building (7,600 sq.m) f. Cargo terminal Building (978 sq.m.) g. Administration Building (1,000 sq.m.) h. Air Traffic Control Tower i. Crash-Fire-Rescue Facility (for Category 6) j. Airport Maintenance Building k. Airport utilities such as Water Supply, Drainage System etc. l. All necessary Visual and Navigational Aids Equipment for Precision Cat 1 m. Power House and Installation of Standby Generator n. Airport security fence. o. Airport perimeter road (9.145 kms) p. Airport access road ( 3.516 kms)
Long-term Development:
a. Extension of runway to 3,400 meters for long-term development ent phase) b. Expansion of Terminal Building (20,000 sq.m total area) c. Expansion of the apron to accommodate a total of seven (7) aircraft inclusive of an area for general aviation d. Expansion of Cargo Building (1,940 sq.m. total) e. Expansion of Administration Building (1,200 sq.m. total) f. Improvement of Crash-Fire-Rescue Facility (to Category 9)
The proposed airfield layout, focusing on the key airside and landside facilities, is shown schematically in Figure 5.2-1. An aerial perspective of the proposed side development is portrayed in
Page 5-5
Figure 5.2-1 Layout of Key Landside and Airside Facilities at the New Panglao Island Airport
Page 5-6
Figure 5.2-2 Aerial Perspective of the Proposed Sirte Development at the New Panglao Airport
Page 5-7
5.3
AIR NAVIGATION SYSTEM
The Air Navigation Systems shall consist of the following:

a. b. c. d. Radio Navigational Aids ATC and Communication Systems Airfield Lighting Systems (ALS) Meteorological Observation Systems
Radio Navigation Aids Category 1 Instrument Landing Systems (ILS) shall be installed for RWY 03. This will consist of localizer (LLZ), Glide Path (GP), Middle Marker (MM), and Distance Measuring Equipment (DME). Installation and operation of the RNA shall conform to the standards of ICAO Annex 10. RVR and GPI/DME shall be located on the runway shoulder on the other side of the runway in align with fix distance marker. This is due to the maximum 23-angle requirement. If outer marker is not installed, DMI shall be used as a distance indicator on its ILS approach. ATC and Communication Systems The ATC tower shall be equipped with consoles for approach control (APP) Aerodrome Control (ADC), Flight Data (FD), Auxiliary (AUX) and Supervisor (SPV) with individual circuits for ATS direct speech, intercom, telephone, VHF/UHF transmitter/receiver, voice logging recorder and reproducer, Automatic Terminal Info Systems (ATIS). Weather data and navigational aids status indicator shall be provided in the console. A voice communication control system will be provided to integrate essential air traffic radio and telephone communication on and off the airport. Aeronautical Ground Lighting Systems Airfield lighting system shall consist of the following: a. b. c. d. e. f. g. h. i. j. k. Precision Approach Lighting Systems Simple Approach Lighting Systems Precision Approach Path Indicators Runway Edge Light (high intensity) Runway Threshold Lights Runway End Lights Taxiway Edge Lights (low intensity) Apron Flood Lights Aerodrome Rotary Beacon Illuminated Wind Direction Indicators Illuminated Taxiway Guidance Signs (PALS) (SALS) (PAPI) (REDL) (RTHL) (RENL) (TWYL) (AFL) (ABN) (IWDI) (TXGS)
Meteorological Observation Systems The airport will be equipped with automatic weather observation system consisting of sensors and data processor. These shall be installed near the touchdown zone of the runway or at the decision point location. The MOS shall consist of the following:
Page 5-8
a. b. c. d. e.
Runway Visual Range (RVR) transmissometer/background illuminance meter Cloud Ceilometer Wind Sensor Temperature/humidity probe Precipitation Gauge
Pressure transducer and mercury barometer will be installed at the equipment room inside the administration building. Meteorological data will be processed, archived and displayed by a data processor provided in the equipment room. Data display will be provided in the ATC tower. Data will be automatically relayed to the Manila Center trough a link system. Performance and installation of the MOS shall conform to the standards and recommendations of ICAO Annex 3.
5.4
AIRPORT ACCESS
Two options for the proposed access road were explored. Option 1 will provide a connection to the existing national road on the north side of the airport but will entail a larger requirement for right of way; the total required length is 3.516 kms. Option 2, shown in Figure 5.4-1, will provide a total of 1.75 kilometers, connecting to two local roads on the east side of the airport but will entail a smaller access capacity. Option 1 is being recommended so as to allow the project to take advantage of the higher capacity of the main highway.
Page 5-9
Figure 5.4-1 Airport Access Road (Option 2)
5.5
PROPOSED AIRFIELD LAYOUT AND OBSTACLE LIMITS

Based on the foregoing design criteria, the proposed airfield layout indicating the development limits and the key components is shown in Figure 5.5-1. The related aerodrome surfaces, indicating the obstacle limits are shown in Figure 5.5-2.
Page 5-11
Figure 5.5-1 Layout of Proposed Airport Master Plan (Phased Development)
Figure 5.5-2 Aerodrome Obstacle Limits (Ultimate Development)

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Republic of the Philippines

MANILA INTERNATIONAL AIRPORT AUTHORITY

ISO 9001:2000 CERTIFIED

Cert. No. TV 100 05 0318

Feasibility Study for the Panglao Island Airport Development Project

Executive Summary Page 1

Feasibility Study for the Panglao Island Airport Development Project

Short to Medium-Term Development

Average Compound Growth Rate

Potential International Air Passenger Movements (000)

Executive Summary Page 2

Feasibility Study for the Panglao Island Airport Development Project

Foreign Visitor Arrivals by Air

Foreign Visitor Arrivals via Domestic Flights

2011 (Projects Opening Year) 2015 2020 2025 2030 2035

60.3 83.0 123.5 183.8 273.6 407.1

54.7 75.5 107.9 145.1 182.8 216.5

5.7 7.5 15.6 38.7 90.7 190.7

Annual Potential Cargo (kgs)

Average Annual Compounded Growth Rate

Annual Aircraft Movements

Executive Summary Page 3

Feasibility Study for the Panglao Island Airport Development Project

Implementation Strategy and Project Cost Investment

Executive Summary Page 4

Feasibility Study for the Panglao Island Airport Development Project

Executive Summary Page 5

Feasibility Study for the Panglao Island Airport Development Project

Economic Evaluation Assumptions

Executive Summary Page 6

Feasibility Study for the Panglao Island Airport Development Project

Financial Evaluation Assumptions

Executive Summary Page 7

Feasibility Study for the Panglao Island Airport Development Project

Executive Summary Page 8

Feasibility Study for the Panglao Island Airport Development Project

1.2 SOCIO-ECONOMIC CONDITION AT THE PROJECT LOCATION......................1-3

2.2 AIR TRAFFIC VOLUMES AND SERVICES............................................................2-4

2.3 EXISTING CONDITION OF THE FACILITIES .......................................................2-5

3.2 THE FORECAST RESULTS ......................................................................................3-7

Feasibility Study for the Panglao Island Airport Development Project

4.3 RUNWAY STRIP AND OBSTACLE LIMITATION SURFACES ...........................4-7

Feasibility Study for the Panglao Island Airport Development Project

7.2 NEED FOR A LAND ACQUISITION AND RESETTLEMENT PLAN ...................7-5

8.3 PROJECT FINANCING PLAN.................................................................................8-16 8.4 IMPLEMENTATION PROGRAM ARRANGEMENTS..........................................8-21

Feasibility Study for the Panglao Island Airport Development Project

9.1.3 9.1.4 9.2.1 9.2.2 9.2.3

9.2 FINANCIAL ANALYSIS..........................................................................................9-20

Feasibility Study for the Panglao Island Airport Development Project

Feasibility Study for the Panglao Island Airport Development Project

Feasibility Study for the Panglao Island Airport Development Project

Feasibility Study for the Panglao Island Airport Development Project

Feasibility Study for the Panglao Island Airport Development Project

The Study shall cover the following activities:

Feasibility Study for the Panglao Island Airport Development Project

Feasibility Study for the Panglao Island Airport Development Project

SOCIO-ECONOMIC CONDITION AT THE PROJECT LOCATION

1.95 1.65 2.79

Feasibility Study for the Panglao Island Airport Development Project

Feasibility Study for the Panglao Island Airport Development Project

Feasibility Study for the Panglao Island Airport Development Project

75,803 81,052 85,944

4.56% 6.92% 6.04%