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SOCIO-ECONOMIC, FINANCIAL, AND ENVIRONMENTAL

ASSESSMENT OF THE REHABILITATION OF


BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD
IN BARANGAY CATTUBO, ATOK, BENGUET

TECHNICAL REPORT

Lumbres, Almira Geles B.


Team Leader

TEAM MEMBERS:
Erro, Maria Erina G.
Sadili, Diana Rose A.
Sale, Erica Kristel A.

Supervised Field Experience in Human Settlements Planning


Department of Community and Environmental Resource Planning
College of Human Ecology
University of the Philippines Los Baños
April 2011

In cooperation with

Cordillera Highland Agricultural Resource Management Project 2


Province of Benguet
And the Municipality of Atok, Benguet
SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

EXECUTIVE SUMMARY

This study focused on the farm-to-market access, as part of the RID component of
CHARM2, which aims to uplift the economic condition of farming communities in the
influenced areas. Its primary objective was to assess the social, economic, financial, and
environmental impacts of the road rehabilitation of Baybayog-Apanberang-Timbac Farm-
to-Market Road in Barangay Cattubo, Atok, Benguet.

The study was conducted from January to March 2011. Social, financial,
economic, and environmental data were gathered through primary and secondary data
gathering. The methods used were key informant interviews and household survey, where
in a purposive sampling of 50 households was done. Descriptive analysis was used for
both social and environmental data while BCR, IRR, and NPV/NPW were used to
analyze the economic and financial data gathered.

Based on the results of the study, the road rehabilitation project was feasible and
beneficial for the influenced areas. The project is deemed to be beneficial as reflected by
the positive impacts perceived by the respondents such as decrease in travel time,
increase in income, and ease in access to social services. There were also perceived
favorable environmental impacts such as decrease in the incidence of soil erosion,
improved air quality, and decrease flooding incidence. In terms of economic and financial
aspects, all the indicators yielded positive values which denoted that the project was
feasible and worthwhile to undertake. A sensitivity analysis for financial and economic
aspect was also done to determine the viability of the project and the results also
indicated that the project would still be feasible under various circumstances.

Suggestions coming from the household respondents were also reflected in the
study. Furthermore, the researchers gave their recommendations based on the results of
the study.

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page i


SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

ACKNOWLEDGEMENT

This study would not be possible if not for the following individuals who gave all

their full support, trust, and encouragement:

Dr. Walfredo Rola, Practicum adviser, for preparing the team, giving his

guidance, sharing his knowledge, and equipping them with skills that are necessary for

the study.

CHARM

Dr. Cameron Odsey, Project Director, for giving the students the opportunity to

be part of CHARM2 project.

Rowena Bilig, Field Supervisor, for the team’s board and lodging,

communicating with the LGU involved in the study, and making necessary arrangements

during the training.

LOCAL GOVERNMENT UNIT

People from the Provincial Planning and Development Office; Tita Susan, Tita

Diane, Tita Joan, Tita Rose, Sir Rowan, and Manong Tam for their guidance and

cooperation during the data gathering, for assisting in transportation during the field

work, and for their support even beyond their call of duty.

The Officials of the Municipality of Atok for providing secondary data needed for

the study, most especially to Ate Cynthia Backian who helped and assisted the team

during the field work.

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

Barangay Cattubo; specifically the presence of Brgy. Capt. Eduard Beliano,

Brgy. Councilor Terte Vicente, Pedro Kisim, and Tony Senio, for the accommodation,

service vehicles, ensuring the safety of the team, and their assistance during data

gathering.

To the people from the Municipality of Kabayan; Mayor Faustino Aquisan,

Engr. Berry Sangao, Kuya Nover, and Kuya Hueler, for providing necessary data

needed for the study, for their warm accommodation, and assistance during data

gathering.

To the Barangay Captain of Natubleng and Pacso, Brgy. Capt. Camotiao Alinso

Jr. and Cipriano Baucas, for supplementing data gaps.

To the people from National Irrigation Administration – Canteen for all the fun

and friendship they gave to the team.

The team’s family and friends for their financial, emotional, and moral support.

Above all, to the Lord Almighty, for His guidance and for keeping them safe

throughout the practicum duration.

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page iii
SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

TABLE OF CONTENTS

PAGE NUMBER

Executive Summary i

Acknowledgement ii

List of Tables vi

List of Figures ix

List of Plates xi

List of Acronyms xiii

INTRODUCTION 1

Background of the Study 2

Rationale 5

Objectives 5

Significance 6

Scope and Limitation 7

GENERAL APPROACH AND METHODOLOGY 8

Conceptual Framework of the Study 9

Analytical Framework of the Study 11

Study Approach 13

Data and Data Sources 15

Data Collection 16

Data Analysis 17

RESULTS AND DISCUSSION 22

Project Profile 23

Description of the Project Area 24

Socio-Demographic Profile of the Respondents 51

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

Project Impacts 58

Social Impacts 58

Financial-Economic Impacts 75

Environmental Impacts 86

CONCLUSION 95

RECOMMENDATIONS 104

REFERENCES 111
113
APPENDICES

Appendix A: Gantt Chart

Appendix B: Key Informants Guide Questions

Appendix C: Survey Instrument

Appendix D: LGU Profile and Project Information Sheets

Appendix E: Budget Allocation

Appendix F: Financial Computations

Appendix G: Economic Computations

Appendix H: Documentation

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

LIST OF TABLES

TABLE TABLE TITLE PAGE


NUMBER NUMBER

Table 1 Standard Conversion Factor 20

Table 2 Land Use and Area of Barangay Cattubo 34

Table 3 Total Number of Household Members by Age 51


Group, Sex and Civil status

Table 4 Items and Percentage Allocation for Capital 76


Investment

Table 5 Items and Percentage Allocation for Working 77


Capital

Table 6 Financial Evaluation Results 79

Table 7 Summary of Financial Sensitivity Test 82

Table 8 Economic Evaluation Results 83

Table 9 Summary of Economic Sensitivity Test 86

Table 10 Gantt Chart of the Socio-Economic, Financial, And Appendix A


Environmental Impact Assessment of the
Rehabilitation Of Baybayog-Apanberang-Timbac
Farm-To-Market Road In Barangay Cattubo, Atok,
Benguet

Table 11 Financial Cost- Capital Investment for Baybayog- Appendix F


Apanberang-Timbac Farm-to-Market Road Project

Table 12 Financial Cost- Working Capital for Baybayog- Appendix F


Apanberang-Timbac Farm-to-Market Road Project

Table 13 Financial Cost for Baybayog-Apanberang-Timbac Appendix F


Farm-to-Market Road Project
Table 14 Basic Parameters in Deriving Incremental Financial Appendix F
Benefits from Farm to Market Roads Project

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

Table 15 Incremental Freight Financial Benefits from VOCs Appendix F


for Farm to Market Road

Table 16 Incremental Passenger Financial Benefits from Appendix F


VOCs for Farm to Market Road –Cattubo

Table 17 Incremental Passenger Financial Benefits from Appendix F


VOCs for Farm to Market Road- Natubleng
Table 18 Incremental Passenger Financial Benefits from Appendix F
VOCs for Farm to Market Road-Pacso

Table 19 Total Incremental Passenger Financial Benefits from Appendix F


VOCs for Farm to Market Road
Table 20 Computation for Financial Internal Rate of Return Appendix F
for the Baybayog- Apanberang-Timbac Farm-to-
Market Road

Table 21 Computation for Financial Internal Rate of Return Appendix F


for the Baybayog- Apanberang-Timbac Farm-to-
Market Road with 10% Decrease in Benefits

Table 22 Computation for Financial Internal Rate of Return Appendix F


for the Baybayog- Apanberang-Timbac Farm-to-
Market Road with 10% Increase in Cost

Table 23 Computation for Financial Internal Rate of Return Appendix F


for the Baybayog- Apanberang-Timbac Farm-to-
Market Road with Two Years Project Delay

Table 24 Computation for Financial Internal Rate of Return Appendix F


for the Baybayog- Apanberang-Timbac Farm-to-
Market Road with 10% Decrease in Benefit, 10%
Increase in Cost, and Two Years Project Delay

Table 25 Economic Cost- Capital Investment for Baybayog- Appendix G


Apanberang-Timbac Farm-to-Market Road Project

Table 26 Economic Cost- Working Capital for Baybayog- Appendix G


Apanberang-Timbac Farm-to-Market Road Project

Table 27 Economic Cost for Baybayog-Apanberang-Timbac Appendix G


Farm-to-Market Road Project

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

Table 28 Basic Parameters in Deriving Incremental Economic Appendix G


Benefits from Farm to Market Roads Project

Table 29 Incremental Freight Economic Benefits from VOCs Appendix G


for Farm to Market Road

Table 30 Incremental Passenger Economic Benefits from Appendix G


VOCs for Farm to Market Road –Cattubo

Table 31 Incremental Passenger Economic Benefits from Appendix G


VOCs for Farm to Market Road –Natubleng

Table 32 Incremental Passenger Economic Benefits from Appendix G


VOCs for Farm to Market Road –Pacso

Table 33 Total Incremental Passenger Economic Benefits Appendix G


from VOCs for Farm to Market Road

Table 34 Computation for Economic Internal Rate of Return Appendix G


for the Baybayog- Apanberang-Timbac Farm-to-
Market Road
Table 35 Computation for Economic Internal Rate of Return Appendix G
for the Baybayog- Apanberang-Timbac Farm-to-
Market Road with 10% Decrease in Benefits

Table 36 Computation for Economic Internal Rate of Return Appendix G


for the Baybayog- Apanberang-Timbac Farm-to-
Market Road with 10% Increase in Cost

Table 37 Computation for Economic Internal Rate of Return Appendix G


for the Baybayog- Apanberang-Timbac Farm-to-
Market Road with Two Years Project Delay

Table 38 Computation for Economic Internal Rate of Return Appendix G


for the Baybayog- Apanberang-Timbac Farm-to-
Market Road with 10% Decrease in Benefits, 10%
Increase in Cost and Two Years Project Delay

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page viii
SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

LIST OF FIGURES

FIGURE FIGURE TITLE PAGE


NUMBER NUMBER

Figure 1 Conceptual Framework for the Socio-Economic, 10


Financial, and Environmental Assessment of the
Road Rehabilitation Project in Atok, Benguet

Figure 2 Analytical Framework for the Socio-Economic, 12


Financial, and Environmental Assessment of the
Road Rehabilitation Project in Atok, Benguet.

Figure 3 General Approach for the Feasibility Study of the 14


Road Rehabilitation Project

Figure 4 Map of Atok 32

Figure 5 Sketch Map of Cattubo 33

Figure 6 Distribution of Male and Female Household 51


Members

Figure 7 Frequency Distribution of Male and Female 52


Household Members by Age Group

Figure 8 Distribution of Household Member’s Civil Status 53

Figure 9 Educational Attainment of the Household Population 54

Figure 10 Frequency Distribution of Household Members 55


According to their Occupation

Figure 11 Frequency Distribution of the Annual Income of the 56


Household Members

Figure 12 Religious Affiliations of the Household Members 57

Figure 13 Places Visited by Household Members 59

Figure 14 Frequency of Visit to Social Services and Facilities 60

Figure 15 Perceived Reduction in Travel Time 61

Figure 16 Average Travel Time (in hour) per Kilometer With 62


and Without the Project

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BARANGAY CATTUBO, ATOK, BENGUET

Figure 17 Perceived Effects on the Traffic Volume/Pattern of 63


the Road Rehabilitation Project

Figure 18 Perceived Effects on the Traffic Accident on the Area 64

Figure 19 Income and Other Perceived Impacts on the 65


Community

Figure 20 Perceived Impact on Social and Daily Activity 67


Patterns

Figure 21 Perceived Impact on Sub-cultural Variation 68

Figure 22 Perceived Impact on Leisure and Cultural 69


Opportunities

Figure 23 Perceived Impacts on the Present Ethnicity of the 69


Road Rehabilitation Project

Figure 24 Distance of Household Respondents to Social 72


Services

Figure 25 Means of Transportation With and Without the 73


Project

Figure 26 Other Possible Social Benefits of the Road 75


Rehabilitation Project

Figure 27 Scenic Spots in Barangay Cattubo 89

Figure 28 Perceived Impact on the Aesthetic Quality of the 90


Area

Figure 29 Perceived Impact on Air Quality 91

Figure 30 Perceived Incidence of Soil Erosion 92

Figure 31 Perceived Flooding Incidence 93

Figure 32 Potential Health Hazards 94

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

LIST OF PLATES

NUMBER TITLE PAGE


NUMBER

Plate 1 Current Condition of Baybayog-Apanberang-Timbac 25


Road.

Plate 2 Identification of Road Project Appendix H

Plate 3 Dialogue with the CHARM Officials Appendix H

Plate 4 Leveling-off Training on Data Analyses Appendix H

Plate 5 Hands-on Training Appendix H

Plate 6 Benguet Provincial Capitol Appendix H

Plate 7 Practicumers with Field Supervisors Appendix H

Plate 8 Vegetable Terraces in Cattubo, Atok Appendix H

Plate 9 Barangay Hall of Cattubo Appendix H

Plate 10 Key Informant Interview Appendix H

Plate 11 Municipal Hall of Atok Appendix H

Plate 12 Data Gathering Appendix H

Plate 13 Bayanihan of Farmers Appendix H

Plate 14 Transportation of Vegetables to Market Appendix H

Plate 15 Dinner with the Barangay Cattubo Officials Appendix H

Plate 16 Data Processing Appendix H

Plate 17 Secondary Data Appendix H

Plate 18 Computation for Financial and Economic Analyses Appendix H

Plate 19 Analysis of Financial Feasibility Appendix H

Plate 20 Analysis of Economic Feasibility Appendix H

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BARANGAY CATTUBO, ATOK, BENGUET

Plate 21 Preparation for Presentation in Benguet Appendix H

Plate 22 Presentation of Report Output Appendix H

Plate 23 Presentation of the Results and Discussion Appendix H

Plate 24 Open Forum Appendix H

Plate 25 Giving Token of Appreciation Appendix H

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

LIST OF ACRONYMS

AAIGA- Agriculture, Agribusiness and Income Generating Activities

ADB- Asian Development Bank

BCR- Benefit- Cost Ratio

BENECO- Benguet Electric Cooperative Inc

BNRMP- Barangay Natural Resource Management Plan

CAR- Cordillera Administrative Region

CHARM- Cordillera Highland Agricultural Resource Management

CLUP- Comprehensive Land Use Plan

CWCFMA- Community Watershed Conservation, Forest Management and Agroforestry

DA- Department of Agriculture

DPWH- Department of Public Works and Highway

EIRR- Economic Internal Rate of Return

FACOMA- Farmer's Cooperative and Marketing Association

FIRR- Financial Internal Rate of Return

FMR- Farm-to-Market Road

HADP- Highland Agriculture Development Project

IFAD- International Fund for Agricultural Development

LGU- Local Government Unit

MAO- Municipal Agriculture Office

MENRO- Municipal Environment and Natural Resource Office


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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

MSWD- Municipal Social and Welfare Development

NEDA- National Economic and Development Authority

NCIP- National Commission on Indigenous Peoples

NGO- Non-Government Organization

NIPAS- National Integrated Protected Area System

NPV- Net Present Value

NPW- Net Present Worth

NRM- Natural Resource Management

PMC- Project Management and Coordination

PPIP- Participatory Project Investment Plan

RHU- Rural Health Unit

RID- Rural Infrastructure Development

SCF- Standard Conversion Factor

SERF- Shadow Exchange Rate Factor

SI- Sensitivity Index

SMPIPLT- Social Mobilization, Participatory Investment Planning and Land Tilting

SWRF- Shadow Wage Rate Factor

VOC- Vehicle Operating Cost

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2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

INTRODUCTION

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

Background of the Study

Highland Agriculture Development Project (HADP) was funded by the

International Fund for Agriculture Development, and co-financed by Asian Development

Bank and the Philippine Government (Asian Development Bank, 1994). The project was

revised thrice to change the project scope and to respond to the effects of natural

calamities that happened during the project planning. The changes made contributed to

the high cost and difficulties in construction, and poor performance of the contractors.

Otherwise, the project was implemented according to the revised plan. The access of the

beneficiaries to market and services was improved as a result of infrastructure facilities

included under the project.

Based on HADP, the Cordillera Highland Agricultural Resource Management

(CHARM) project was conceptualized. CHARM was also co-financed by Asian

Development Bank, the Philippine Government and other beneficiaries. Its primary aim

was to increase average annual farm family incomes of indigenous communities through

agricultural productivity improvements and sustainable natural resource management

(NRM). The CHARM Project design was highly relevant to the needs of the targeted

communities. It adopted the participatory approach in conducting Participatory

Investment Planning as a management tool towards development (International Fund for

Agricultural Development, 2007). It was a basic step towards any development effort as

it provided the road maps in the development process. The project was effective and

contributed to the reduction of poverty in the project area (Asian Development Bank,

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
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BARANGAY CATTUBO, ATOK, BENGUET

2006). However, some issues were raised in the evaluation, and it was recommended to

have a follow-up project.

The Second Cordillera Highland Agricultural Resource Management (CHARM 2)

Project is a special project implemented by the Department of Agriculture. It is the

continuation of the CHARM 1 Project that was implemented in 1998 to 2004.

The Second Cordillera Highland Agricultural Resource Management (CHARM 2)

has five components:

a. Social Mobilization, Participatory Investment Planning and Land Tilting

(SMPIPLT)

The first component aims to promote active participation of the

communities which includes the target groups in planning; implementation; and

monitoring and evaluation of community development plans. It has two major

sub-components: 1) Community mobilization; and 2) Facilitation of Ancestral

Domain Tilting.

b. Community Watershed Conservation, Forest Management and Agroforestry

(CWCFMA)

This component aims to promote the rehabilitation of watersheds in the

target areas to enhance conservation of major watersheds in CAR considering that

the region is the watershed cradle of Northern Luzon; and to provide the

indigenous communities with opportunities to improve their socio-economic well-

being. Its sub-components are composed of: 1) Community watershed

conservation and reforestation; 2) Promotion of Agroforestry; 3) Development of

innovative watershed conservation.

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
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BARANGAY CATTUBO, ATOK, BENGUET

c. Agriculture, Agribusiness and Income Generating Activities (AAIGA)

It aims to improve the production of crops in the area through the use of

sustainable and ecologically friendly farming systems; promote agribusiness

improvement of value chains; and introduce or improve non-farm rural small

enterprises as income generating activities to increase family income in the target

communities.

d. Rural Infrastructure Development (RID)

RID aims to improve rural infrastructure essential for the promotion of

agricultural production and rural-based livelihood through mobilization of the

beneficiaries.

e. Project Management and Coordination (PMC)

The Project Support Office (PSO) shall assist in the coordination of the

project and management through the following sub-components: 1)

Operationalization of Project Management Structures; 2) Participatory Project

Planning Monitoring and Evaluation; 3) Strengthen Capacity and Effectiveness of

Project Staff; 4) Project Administration.

The CHARM II Project areas involved 170 barangays in 37 municipalities in six

provinces. It includes 32 barangays from Abra; 15 from Apayao; 35 from Benguet; 20

from Ifugao; 20 from Kalinga and 48 from Mountain Province.

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

Rationale

One of the main components of CHARM2 is the Rural Infrastructure

Development (RID). RID focuses on four sub-components, namely: Farm-to-Market

Access, Community Irrigation, Domestic Water Supply, and Social Infrastructure.

Land is the most commonly used medium in transporting agricultural products,

especially in highland agriculture. The condition of the road, then, is imperative to the

transportation of various crops. Poor condition of roads in highland areas critically affects

the economy through high vehicle operating cost and long travel time. Crops that are

highly perishable are mostly affected in the long travel time which contributes to the loss

of income for the farmers.

NEDA reported that infrastructure development such as farm-to-market roads

stimulates economic growth through easier access to markets (NEDA Development

Advocacy Sheet, 2008). The rehabilitation of roads is perceived to reduce the average

travel time and vehicle operating cost. Moreover, it can result to an increase in rural

income in the project areas.

Objectives

The main objective of the study was to assess the social, economic, financial, and

environmental impacts of rehabilitation of Baybayog-Apanberang-Timbac Farm-to-

Market Road in Barangay Cattubo, Atok, Benguet.

Specifically, it aimed to:

 Describe the biophysical, social, and economic conditions of the barangay;

 Identify and quantify the capital investment and maintenance, and

operating cost of the proposed projects;


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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

 Identify the benefits of the proposed projects;

 Compare the benefits and the cost of the road project ;

 Identify and assess other social and environmental impacts of the projects;

and

 Provide conclusions and recommendations based on the findings of the

study.

Significance of the Project

The road rehabilitation project is significant, especially for the influenced farming

communities, in making the transportation of agricultural products from farm to market

easier and in reducing the travel time to ensure the freshness of their products. This will

ensure food security in the area to avoid hunger and poverty and will increase the

farmers’ income to support their own families. For the non-farming communities, the

road rehabilitation project can provide them quick access to different social

infrastructures and services in the influenced areas.

At the local and provincial government, the project is important because it can

help increase farm production, which in turn can lead to an increase in the local and

provincial funding for the development of their area. With the project, the local and

provincial government will strengthen their capacity in mobilization and improvement of

agricultural land security in the area.

The road rehabilitation project is also significant at the national level as

improvement in rural infrastructures can lead in uplifting the economy. Also, the

construction of farm-to-market roads will strengthen agricultural production not only in

the Cordilleras but in the entire country.

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
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BARANGAY CATTUBO, ATOK, BENGUET

The study will serve as baseline information for feasibility studies of other rural

infrastructure development of the CHARM projects.

Scope and limitations

The study was conducted in Barangay Cattubo, Atok, Benguet as previously

selected from the priority list of CHARM projects. Other road projects of the CHARM

were not included in the scope of the study area. The study focused on the social,

financial, economic, and environmental feasibility of the proposed road project. The

environmental aspect was only based on the perceptions of the respondents.

The study was conducted in 1 ½ -month’s time since the study team needed to

accomplish the requirements for graduation. The time frame for primary data gathering

allotted was limited due to this time constraint.

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GENERAL APPROACH

AND

METHODOLOGY

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Conceptual Framework

Before starting a project such as construction or rehabilitation of roads, it

undergoes an assessment first. This is to determine whether the project will bring positive

impacts on the project location. It is a must to determine the costs and benefits so as to

decide on the implementation of the project.

Figure 1 shows the components for Socio-Economic, Financial, and

Environmental Assessment of the farm-to-market road in Atok, Benguet. The impacts of

the project were categorized into four groups; social, economic, financial, and

environmental. Each group was given specific indicators that will help in measuring the

probable impacts of the road rehabilitation project. Moreover, the possible scenarios of

with and without the project for each group were identified. After which, the costs and

benefits of with and without the project were quantified thus determining the net effect of

the project. After the gathering of all the necessary data following the framework,

analysis was made.

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Road Rehabilitation Project

With the
Social
Project
Costs

Economic

Benefits IMPACTS

Environmental

Net Effect
Financial
Without the
Project

Figure 1. Conceptual Framework for the Socio-Economic, Financial, and Environmental Assessment of the Road Rehabilitation Project in Atok, Benguet

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Analytical Framework

Figure 2 illustrates how the assessment proceeded. Initial site visit and courtesy

call were conducted first. Then, the preparation for the data gathering instrument

employed in the study was done. These were the interview schedule and survey

questionnaire. After which, data gathering was conducted. There were two major data

gathered, the primary and secondary data. Primary data were gathered from key

informant interviews and survey, while secondary data were obtained from existing

records coming from different agencies involved in the project.

After all the data were gathered, data analysis was made. Data were divided into

subgroups; social, economic, financial, and environmental. For each subgroup, there were

corresponding data analyses used. For the social domain, descriptive analysis was used.

As for the financial aspect, net present value, financial internal rate of return, and benefit

cost ratio analysis were computed. Economic data were then analyzed through cost-

benefit analysis, economic internal rate of return, and net present worth. The

environmental data gathered were analyzed through qualitative analysis since

environmental impacts are hard to quantify.

The economic and financial subgroups were analyzed quantitatively as they can

be measured easily in terms of numbers. Social and environmental impacts were analyzed

qualitatively since more often the data gathered from these domains cannot be easily

quantified. These mentioned data analysis methods were the most efficient and effective

for the assessment of the road rehabilitation project.

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Figure 2. Analytical Framework for the Socio-Economic, Financial, and Environmental Assessment of the
Road Rehabilitation Project in Atok, Benguet

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Study Approach

The study approach followed an input-process-output framework. The inputs were

the resources utilized to perform specific tasks or the outputs from the activities under

taken that were employed for the next segment of the project. Processes were the

activities performed in order to obtain the desired outcome while outputs were the

physical outcomes of the project activities. These three elements were important to

ensure that the objective of the study was accomplished.

Figure 3 is a representation of the study approach from initial site visit up to the

revision of the final report.

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INPUT PROCESS OUTPUT

Document
CHARM Data about the Knowledgeable Study
Review/Dialogues/Field
Road Project Team
Visits

Preparation of LGU Final Form of LGU


Profile and Project Profile and Project
Information Sheets/ Information Sheets
Terms of Reference/
Calendar of Activities/ Finalized Calendar of
Study Proposal
Formation of Survey Activities/ Survey
instrument/ Guide Instrument/ Guide
Questionnaire Questionnaire

Accomplished LGU
Training on Data
Profile and Project Skilled Study Team
Analyses
Information Sheets

Completed/
Field interviews/ Key
Survey Instrument Accomplished Survey
Informant Interview
Instrument

Raw Data from Field


interview/ Key Informant Data Processing Consolidated Data
Interview

Processed Data by Analysis of Data


Draft Assessment Report
Component Component

Report Presentation to
Draft Report Comments on the Report
LGUs and DA officials

List of Comments Revision of Draft Report Final Report

Figure 3. General Approach for the Feasibility Study of the Road Rehabilitation Project

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Data and data sources

The socio-economic, financial and environmental assessment of the rehabilitation

of Baybayog-Apanberang-Timbac Farm-to-Market Road at Cattubo, Atok, Benguet used

primary and secondary data as main sources of information.

Primary Data

a. Population of the Study

“In 2009, Barangay Cattubo has a household number of 567 with the total

population of 2,727. The total population is composed of 1,413 males and 1,314 females.

The barangay covering 2,414 hectares of land has an appropriated density of 1.13 persons

per hectares. It has an average household size of 4.8” (Draft Barangay Cattubo Profile,

2010).

The influence areas of the project which includes Barangay Natubleng, Buguias

and Barangay Pacso, Kabayan, have a total household number of 520 and 240,

respectively. Barangay Natubleng has a total population of 2,351 and an average

household size of 5 (Barangay Profile of Natubleng Executive Summary, 2011).

Barangay Pacso, on the other hand, has a total population of 1,220 and an average

household size of 5.08 (Draft Participatory Project Investment Plan of Barangay Pacso,

2011-2015).

b. Sampling Size

Fifty households were used as the sampling size as greater than 30 is statistically

acceptable to represent the population. Purposive sampling was used to determine the

selected household samples. It is a technique that involves taking a random sample of a


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small number of units from a larger population (Kemper et al., 2003 as cited by Teddlie

et al., 2007).

On the other hand, key informants were purposively selected based on their

relevance to the study.

Secondary data

The sources of secondary data included the CHARM, Local Government Unit

from the barangay up to the provincial level, internet, thesis, previous practicum reports,

and books related to the study. Project information sheet and LGU profile sheet (See

Appendix D) were used to gather significant secondary data from the local government

office and from CHARM.

Data Collection

a. Key Informant Interview

Key informant interview was vital in extracting qualitative data that are

significant to the study. This method was used to verify secondary data on the field. Key

informants were chosen based on three aspects of the study such as economic, social, and

environment. The economic aspect included the MAO department head, and the

municipal engineer; the social aspect was the concern of MSWD department head; while

the environmental aspects came from the MENRO department head. Guide questions

(See Appendix B) were utilized for the key informant interviews.

b. Interview-schedule

An interview-schedule was conducted for the households through the use of a

survey form (See Appendix C). The survey form is divided into seven sections such as

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demographic profile, passenger related-information, freight related- information, socio-

cultural impact information, environmental (public health and safety) impacts

information, and benefits information.

Data Analysis

Social

To determine the social impacts of the proposed farm-to-market road in the

municipality of Atok, descriptive analysis was used.

Descriptive Analysis

Descriptive analysis was used in explaining non-quantifiable data that were

derived from key informants’ and respondents’ descriptive responses. It is a qualitative

way of presenting information for the social impacts.

Financial

Benefit cost ratio (BCR), financial internal rate of return (FIRR) and net present

value (NPV) were utilized in analyzing the financial aspect of the road rehabilitation

project as components of the financial benefit-cost analysis. “The purpose of the financial

benefit-cost analysis is to assess the financial viability of the proposed project whether it

is financially attractive or not. In this, the unit of analysis is the project and not the entire

economy” (ADB, 2006).

Benefit-Cost Ratio

The benefit cost ratio is defined as the ratio of the possible gains that would be

provided by the project over the projected cost of proposed project. A result greater than

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one reflects that the project is beneficial, while a result less than one reflects that the

project is costly. Benefit-cost ratio was computed as:

BCR = Total Financial Benefits


Total Financial Costs

Net Present Value and Financial Rate of Return

NPV and FIRR were used to determine “the profitability of the road project. “The

difference between the present value of cash inflows and the present value of cash

outflows equates to NPV. NPV is sensitive to the reliability of future cash inflows that

the project will yield” (Investopedia, 2010). On the other hand, FIRR is the discount rate

at which the present value of the net benefit stream in financial terms becomes zero”

(ADB, 2006). These were measured in monetary terms through comparison of with and

without the road project scenarios. The NPV and FIRR were computed using the

formulas:

NPV = Where: i –Discount Rate (15%)

t –time (in years)

FIRR

NPV= 0

0= Where: t –time (in years)

Economic

Subsequent to the analysis of financial viability of the project, the data were

analyzed for its economic viability. In economic analysis, the true value to the society of

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the project can be showed. The financial values used for the financial analysis were

converted into economic values through shadow-pricing of the project inputs or through

the standard conversion factor (ADB, 2006).

Benefit-Cost Ratio

The initial step done was the identification of economic cost and benefit. In

economic benefit-cost analysis, two important principles are to be followed (ADB, 2006).

First is the comparison of the situation with the project and the situation without the

project. Second is the distinction between non-incremental and incremental inputs, and

non-incremental and incremental outputs. Compared to the financial benefit-cost ratio

which is concerned with the project unit, economic benefit-cost ratio is concerned with

the entire economy. The formula used for economic benefit-cost ratio was:

BCR = Total Economic Benefits


Total Economic Costs

Net Present Worth

Net Present Worth is defined as the difference between the present worth of all

cash inflows and outflows of a project. This method of analysis allows the selection of

the most economically sound project from a list of more than one alternative. The

formula used to compute for the NPW was:

NPW = Where: i –Discount Rate (15%)


t –time (in years)
Economic Internal Rate of Return

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IRR is the primary measure of the value of investment. EIRR is the discount rate

base on the economy which equates the net present worth of all cash flows of the project

to zero. The EIRR was computed using the formula:

EIRR

NPW= 0

0= Where: t –time (in years)

Conversion of Financial to Economic

Financial prices were converted to economic prices using standard conversion

factors for wage rates and exchange rates. Table 1 shows the computed standard

conversion factors.

Table 1. Standard Conversion Factors


Items Conversion Factor Used Conversion Value
Unskilled Labor Shadow Wage Rate 0.92
Skilled Shadow Wage Rate 1.00
All Other Inputs and
Standard Conversion Factor 0.98
Outputs

The standard conversion factor using wage rates was used in converting unskilled

labor costs from financial to economic prices for the capital investment and working

capital. On the other hand, the cost of materials (supplies and equipment) for both the

capital investment and working capital used the exchange rates standard conversion

factor.

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Environmental

Environmental impact of the project was examined through a qualitative analysis.

Questions about the possible impacts of the road rehabilitation to the environment were

included in the survey, along with the collection of other primary data. Qualitative

analysis was used since environmental impacts were hard to measure quantitatively.

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RESULTS AND DISCUSSION

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PROJECT PROFILE

Project Title: Baybayog- Apanberang- Timbac Farm-to-Market Road Improvement

Location: Cattubo, Atok, Benguet

Proponent/ Implementing Agency: Municipal Engineers Office- Atok, Benguet

Estimated Project Cost: Php. 8,360,043.30

Source of Fund: ADB Loan Proceeds


DA-CAR = 40%
LGU - Municipality of Atok
- Benguet Province = 60%
Project Profile:

The proposed project was identified by the community as the top priority among

other identified projects during the barangay/ community assembly, and through series of

planning conducted at the barangay hall of Cattubo, Atok, Benguet in coordination and

assistance of the provincial and municipal working group and other national line agencies

such as the DA-CHARMP 2, NCIP, NGO, Barangay officials and other stakeholders.

The proposed project subject for improvement is a farm-to-market road (FMR)

utilized by farmers in the area that needs improvement due to its present poor condition

which is muddy and slippery especially during rainy season. Hence, as a result, farmers

in the area find difficulty in transporting their farm inputs as well as farm produced to and

from the market. More so, they spend more on hauling cost and transportation expenses.

Vegetables being planted and harvested are cabbages, potatoes, peas, carrots, radish,

Chinese cabbage and other highland vegetables. Likewise, farm inputs used in the farm

being hauled are chicken manure and organic/inorganic fertilizers and others.

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The improvement or maintenance made along the road stretch were minimal due

to insufficient resources of the local government unit and considering also the various

roads and other infrastructure facilities being attended by the local government.

The proposed project entails the improvement of Baybayog- Apanberang- Timbac

farm-to-market road consisting of four kilometers length and 3 to 3.5 meters wide.

Although, the existing improvements made were concrete pavement/ tire path with total

length of 525 meters, other improvements are still needed on the road.

DESCRIPTION OF THE PROJECT AREA

Location of the Project

The Baybayog-Apanberang-Timbac farm-to-market road is located at Sitio

Calasipan, Barangay Cattubo, Atok, Benguet Province. It traversed farm lots from three

sitios in the barangay namely Timbac, Apanberang, and Calasipan. It was identified as

the top priority among the lists of projects for Barangay Cattubo based on the series of

participatory planning conducted in the barangay. The road existed for more than ten

years and served as a short cut way for residents of Baybayog, an alternate route going to

Pacso, Kabayan which is a neighboring barangay, and an alternate access road when

portions along Halsema Highway, particularly between kilometer 55 to kilometer 60 were

closed due to slides and traffic (Project Proposals, 2010).

Existing Road Condition

The Baybayog-Apanberang-Timbac farm-to-market road was generally unpaved,

narrow, tortuous, and rugged. There were portions that were already cemented or made as

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tire path which when combined represent only 13 % of the total length of road. From the

ocular visit conducted, no fencing, road signs, and riprap were found on the peripheral of

the road. (Plate 1)

Plate 1. Current Condition of Baybayog-Apanberang-Timbac Road

Engineer Ernesto Dela Torre, the municipal engineer of Atok, described the road

as passable but uncomfortable to traverse. The road restricted the kind of vehicles that

can pass through it. More so, Barangay Chairman Eduard Beliano said that the road is

very risky especially during typhoon.

Barangay Served

Based from the interviews of key informants and from the use of Barangay

Cattubo road map, the identified directly influenced areas were Barangay Cattubo, Atok,

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Barangay Natubleng, Buguias and Barangay Pacso, Kabayan. The barangay chairman of

Cattubo Mr. Eduard Beliano said that 40% of the total household population of Atok will

be the potential users of the Baybayog-Apanberang-Timbac farm-to-market road. This

included residents from Timbac, Apanberang, and Calasipan. According to Mr. Camotiao

Alinso Jr., the barangay chairman of Natubleng, only 35% of the total household

population will use the farm-to-market road. But this will gradually increase through

time. In Barangay Pacso, Barangay Chairman Cipriano Baucas estimated that about 60%

of the total household population as potential users of the road.

Aside from the identified influenced areas, there were also other indirectly

influenced barangays that can be possible users of the road. Some of these barangays

were Barangay Gusaran, Kabayan Barrio, Kabayan Poblacion, and others.

Proposed Improvements

In accordance with the project proposal forwarded to CHARM DA-CAR, the

proposed improvements included the following:

1. Construction of about 500 meters concrete pavement specially along curve

sections of the road;

2. Construction of about 1.1 km. concrete tire path along other road sections;

3. Construction of drainage canal and cross drainage canal;

4. Construction of riprap and slope protection;

5. Construction of “waiting bay” considering that most of the road sections are

narrow with 3 meters wide and about 60 to 80 degrees elevation; and

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6. Gravelling of about 1.875 km. along other sections of the road with almost flat

elevation; and

7. Other improvement needed shall be determined upon actual inspection and

preparation of detailed engineering design.

Historical Background

Province of Benguet

Before the colonization of Spaniards, inhabitants of Benguet lived in the Southern

Cordillera mountain range, sea coasts of Ilocos Sur, Pangasinan and La Union, and in the

early trading centers of Ituy in northern plains of Luzon. People then, wandered for a

place suitable for hunting, rich in resources, and a place for barter and trade. As reported

in genealogical histories, the earliest settlements included the following twin settlements:

Chuco and Tonglo in Baguio-Tuba; Darew and Palaypay in Kapangan-Tublay; Imbose

and Amlimay in Kabayan-Buguias; and Namiligan and Palatang in Mankayan-Bakun.

The gold and copper settlement working sites were located at Pancutcutan, Acupan,

Apaiao, Penas and Locjo, all over Benguet. The centers of barter and trade between the

people in highland and lowland of Northern Luzon were located in Ituy, presently known

as Aritao in Nueva Viscaya, Tagudin and Vigan in Ilocos, and Manaoag and Lingayen in

Pangasinan. Products of Benguet comprised gold, copper, iron, honey, and bees wax.

These were traded for lowland products which included salt, livestock, cotton clothing or

blankets, and wares from other countries. Aside from the materials and food items, slaves

were also traded during this period.

The name “Benguet” came from the western colonizers who mispronounced the

word “benget” because of the western accent. “Benget” is the cloth coverings wrapped

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several time around the head of people living in La Trinidad. It was used as a protection

from searing cold and winds. Eventually, “Benguet” became a general reference of the

people to the territories.

Municipality of Atok

Municipality of Atok houses the main source of the Amburayan River, which

waters the fields of three barangays –Pasdong, Naguey, Poblacion. The river also waters

some parts of Municipality of Kapangan and La Union. Along the river were early

settlements with interesting stories. By word of mouth, the story about the two-headed

snake named “Balatek” became known to the people of Atok and other neighboring

towns. The two-headed snake which caused the death of many people was killed by the

inhabitants of Atok through the use of “vat and fire”. Other stories such as banditry and

cattle rusting were also known to the people. It is believed that the leader of the bandit-

rustlers named Chamikday was also killed by the residents of Atok.

During the World War II, Atok became the venue of battles between the guerilla

of the 66th infantry battalion and the Japanese Imperial Army. The guerillas hide along

the Halsema Road as they waited for the Japanese army. The intrusion of the guerillas

resulted casualties to the men of General Yamashita. The 66th infantry was then called to

reinforce the Filipino soldiers in Ilocos Sur. Atok was named as the “Vanguard of

Freedom” because of this historical event.

The early residents of Atok originated from two settlements –the agriculturists

and the miners. The first settlers were known as the agriculturists since they lived along

the river banks, and cultivated rice, camote, root crops and vegetables. The second

settlers were known as the miners but later on shifted to agriculture. Agriculture in the

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area was when colonizers came in the country. Spaniards introduced coffee production,

while the Americans intensified the production of different crops. After World War II,

large scale farming was introduced at Barangay Paoay by Chinese businessmen. This has

enticed the farmers because of its economic returns.

The municipality is presently inhabited by Igorots particularly the Ibalois and the

Kankana-eys. The Ibalois were migrants from the Municipality of Kabayan. Most of the

Ibalois settled in the low-lying barangays of Pasdong, Naguey, Poblacion, Lower Abiang,

and Caliking. The Kankana-eys, on the other hand settled in the high-elevated Barangays

of Cattubo, Paoay, Upper Abiang, and Upper Tobiac. This explains why the people in

Atok can speak two dialects.

On November 22, 1900, Atok was declared as a municipality. It was considered

as the most important historical event to the Local Government Unit.

Barangay Cattubo

The name CATTUBO was formed from the acronym of the six sitios of the

barangay, namely: Calasipan, Apanberang, Timbac, Tulodan, Botiao, and Oyusan. The

name also originated from the word Cattubo which means young. Barangay Cattubo was

previously a part of Barangay Paoay. On January 21, 1972 by virtue of Municipal

Ordinance No. 08, and on February 29, 1972 by virtue of Benguet Resolution No. 198,

Cattubo was declared as a separate barangay. Barangay Cattubo was born out of

separation of the five sitios of Paoay.

According to the elders, the ancestors of the people living in Cattubo came from

the Municipalities of Tinoc, Buguias, Kabayan, Palatang, and Kibungan. The people from

the different municipalities wandered for a permanent settlement that can be suitable for

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agriculture until they found their “boton” in the mountain of Atok. The original settlers

were Wala and Decmaney, Socpoten, Capan, Pingi and Tindaan, Balicdang, Angdas,

Ngolob, Kiling, Basatan, Umod, Dapyawen, and Tikyaw. During the aftermath of World

War II, the population began to increase as people from Abiang, Pasdong, and other

nearby municipalities migrated to Cattubo.

In 1910 to 1915, the first American type of vehicle was used to transport goods

and people to and from Baguio City. The old folks locally called the vehicle, “Tungabel”.

After the Tungabel, Dangwa Tranco was used for transportation.

In 1917, during the American colonization, inhabitants of Cattubo were required

to get cedula from the Municipal Hall located in Sayangan.

In 1936, a Turkish named Cairus conducted a survey of trees for lumber, after

which, lumber concession and road opening started. It was followed by vegetable

gardening in 1938. In 1946, a certain Alfredo Alumno, one of the first settlers in the sitio,

started vegetable gardening at Calasipan. He was the first to produce potato in the

barangay in 1948. The same year, the FACOMA started shipping vegetables to Manila. It

was also during this time that farmers started terracing their uma (garden).

To improve literacy of children, Mr. Malameon established the Calasipan

Elementary School in the barangay while the Tulodan Elementary School was established

years later in 1968.

In 1955 to 1957, the logging concession of Cairus stopped and the road from

Halsema to Tulodan was made passable. Migrants from Pasdong started vegetable

gardening at Calasipan, Oyusan, Timbac, and Apanberang. It was also during this period

that Chinese migrants started to rent lands for vegetable gardening.

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In 1996 and 1997, the Barangay Hall and the Oyusan Primary School building

were constructed with the help of concerned agencies. In 1999, the Day Care Center was

constructed at Tulodan.

Barangay Cattubo was covered by the Highland Agricultural Development

Project (HADP) after the 1990 earthquake. Subsequently in 1997, Cattubo was also

covered by the First Cordillera Highland Agricultural Resource Management Project

(CHARM 1).

Biophysical Characteristics

Province of Benguet

Benguet lies southernmost in the Cordillera Administrative Region with Mountain

Province on the north, Pangasinan on the south, Ifugao and Nueva Viscaya on the east,

and La Union and Ilocos Sur on the west. It has an estimated land area of 253,244 to

293,000 hectares based on the on-going boundary settlements claims with nearby

provinces and among municipalities. Moreover, the province serves as a gateway to

Baguio City and other Cordillera Provinces.

Municipality of Atok

The municipality of Atok is geographically located at the central portion of

Benguet Province, on coordinates at 16030’ to 16042’ latitude and 120038’ to 120047’

longitude. It is bounded on the west by Kapangan, on the south by Tublay, on the north

by Kibungan and Buguias and on the east by Kabayan and Bokod.

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Figure 4. Map of Atok

Atok has a total land area of 21,912 hectares which represents 8.73% of the total

land area of Benguet. It is divided into eight Barangays namely Abiang, Caliking,

Cattubo, Naguey, Paoay, Pasdong, Poblacion, and Topdac. Barangay Poblacion, with a

total land area of 4426 hectares representing 20.20% of the total land area in Atok, is the

largest barangay in terms of geographical size. On the other hand, Barangay Naguey,

with 1635 hectares representing 7.46% of the total land area in Atok, is smallest in size.

Barangay Cattubo

Geographical Location

Barangay Cattubo is in the northernmost part of the municipality of Atok. It is

bounded on the north by Municipality of Buguias and Kibungan, on the east by

Municipality of Kabayan, on the west by Barangay Pasdong, and on the south by

Barangay Paoay. It is accessible through land transportation via the Halsema highway.

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Figure 5. Sketch Map of Cattubo


Source: PPIP of Barangay Cattubo

Total Land Area

The total land area of Barangay Cattubo is 2414 hectares which comprises 9.42%

of the total land area of the municipality. In terms of geographical size, Barangay Cattubo

is the 2nd smallest barangay in the municipality.

Land Uses

Table 2 shows the different types of land use in the barangay. The largest portion

of land which has a total of 992 (41.09%) hectares is classified as agricultural lands. It is

followed by forest, residential, pasture/grazing, and institutional/commercial respectively.

The smallest portion of land which has a total of 146 (6.05%) hectares is utilized for

mineral/rivers/creeks.

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Table 2. Land Use and Area of Barangay Cattubo


Land Use Land Area (Hectare) Percentage (%)
Agricultural 992 41.09
Pasture/Grazing 320 13.26
Forest 423 17.52
Residential 338 14.00
Institutional/Commercial 195 8.08
Mineral/Rivers/Creeks 146 6.05
Total 2414 100
Data Source: NPC-Agrarian Reform Community as cited in Participatory Project Investment Plan, 2011-2015.

Agricultural lands are planted to a variety of vegetable and ornamental crops

which the farmers sell in La Trinidad and Baguio City. With the vast area devoted to

agricultural production, agriculture serves as the major source of income for the residents.

Forestlands of the barangay are classified as either protected areas or production

areas. Protected areas include national parks, nature reserves and wildlife sanctuaries in

the area. The Municipality of Atok which includes Barangay Cattubo is covered by

Republic Act No. 7586 which provides for the establishment and management of the

National Integrated Protected Area System (NIPAS) as well as Government Reservations

like Mount Data National Park. On the other hand, production areas cover an area of 423

(17.52%) hectares and serve as watershed; wildlife habitat; and source of timber, herbal

medicines, resin, and other forest products. For some, the forest also serves as their

source of income. However, the forestlands are being denuded and are being converted

into agricultural and residential lands.

Residential, pasture, and institutional lands cover an area of 338 (14%) hectares,

320 (13.26) hectares, and 195 (8.08%) hectares respectively. Pasture lands are used for

grazing cattle and other ruminants as well as source of cogon for housing and cattle

manure for organic farming. Institutional lands, on the other hand, are mainly for

government establishments like school buildings, health centers, etc.


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The rivers and creeks that abound in the area are potential sources of river fishes,

and sand and gravel.

Forestry and Community Watershed

Some floras found in the barangay are balyonet, ferns, orchids and other

indigenous plants that are still thriving in the surroundings of Cattubo. The Faunas are

however, disappearing due to the encroachment and destruction of their habitats. The

bowet, wigit which is like a rat with white tail and amkis are just some of the examples of

wild animals found in the remaining forests of Cattubo.

Barangay Cattubo has identified its own watershed areas like the Colbong

Watershed, the Macbas Watershed and the Babkeg Watershed. The identified watersheds

of the barangay are the water sources for its different sitios. Water from these sources

was tapped by the farmers for irrigating their rice fields and vegetable farms. These also

supply safe and potable water for the residents.

Topography, Slope, Elevation

Barangay Cattubo is considered upland with sloping vegetable terraces in most of

the sitios and with plateau on the other sitios. The Highest Point, which is 7000 ft. above

sea level, is found at Km. 54. It serves as a stopover for travelers and as a viewpoint for

Mount Pulag National Park, the second highest mountain in the Philippines.

Vegetation

The vegetative cover of the barangay consists of natural growth of pine trees,

shrubs, blade grass, and a variety of planted trees such as alnus. The pine trees as well as

the shrubs are all second generation due to logging that happened in 1930’s to 1950’s.

Vegetables and grasses also abundantly grow in the surroundings.

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Climate

Barangay Cattubo belongs to the first type of climate characterized by two

pronounced seasons of the year. The dry season starts in November and ends in April

while the wet season starts in the month of May and ends in October.

During the wet season, fog development usually takes place at any time of the day

lasting from several hours to several days. Sometimes, even visibility is impaired. The

coolest months of the year are December, January, and February.

Soil Types

The Atok clay loam is the only soil type in the barangay. Its relief is from steep to

very steep, excessive external and good internal drainages. The surface soil is dark

brown, medium granular friable firm sandy loam, slightly hard when dry, and slightly

sticky when wet. The crops commonly produced from this soil type are coffee, rice,

cabbage, and sayote.

Socio- Economic Profile

Agriculture

a. Food Sufficiency

Benguet is largely an agricultural land. It supplies 86% of the country’s

need for vegetable products. Most of the municipalities in the province of

Benguet produce vegetables and one of which is the Municipality of Atok. The

municipality has an estimated 9,803.45 hectares of land devoted for agricultural

production. Barangay Cattubo, being covered by Atok municipality, also has a

large area used for agriculture.

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Consequently, hunger incidence is not observed since there is a sufficient

food supply in the barangay. However, hunger may occur during natural

calamities such as typhoons since vegetable produce would be destroyed, roads

would be closed, and thus food supply would run out.

People in the barangay eat rice and a viand, usually fried or served with

soup. Households also include to their meal coffee or milk as a drink. Some also

eat snacks in between meals.

b. Production

Average Household Farm Size

- Farming Systems Zone Profile

The province of Benguet has an average annual effective area of

36,032.93 hectares of cultivated land for vegetables which generates an average

of 701,292.63 metric tons. The province also has flower plantations and fruit

farms. From 2003 to 2006, the total land area devoted to crop/vegetable

production was significantly reduced to 6,221.60 hectares. However, it made a

turnaround in 2007 wherein the area had increased to 7,352.32 hectares.

As previously stated, Atok Benguet has a large area devoted to agriculture.

Its major crops are cabbage, potatoes, chayote, and rice.

The major crops raised in the six sitios of Barangay Cattubo were

cabbage, potato, and carrot. Minor crops were also produced such as celery,

radish, and beans while a scattering of backyard floriculture ventures were

observed growing calla lilies, Shasta daisies, and carnations.

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The barangay surveyed 45 households in 2009 and based on the result, the

total land area planted with cabbage, potato, and carrots is 11 hectares, 15

hectares, and 5 hectares respectively.

Crop Production

The major crops in Barangay Cattubo are white potato, cabbage and carrot

while its minor crops are celery, Chinese cabbage, sweet potato, ornamental crops

and gabi which the farmers sell in Baguio and La Trinidad. However, sweet

potato and gabi, identified as indigenous crops, were only used for personal

consumption thus it is not planted in hectares of land. At present, rice is no longer

being cultivated in the barangay (PPIP, 2011-2015).

Furthermore, major crops were planted on a relay cropping system. Land

preparation takes two months while it takes 3 to 4 months before the crops can be

harvested. There are only two cropping seasons in a year since one cropping

season takes six months. In addition, cabbage is harvested on a staggered basis

depending on the variety’s heading and maturity.

In terms of irrigation, fifty-three percent (53%) of the land is irrigated and

47% is rain fed (Cattubo BNRMP).

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Livestock, Poultry, and Fishery Production

- Livestock Production

Currently, farmers from the Municipality of Atok started livestock farming

as their other source of income. According to their CLUP, there are carabaos

(488), cattles (1,113), swine (2,060), goats (148), and chickens (5,925) being

raised.

Particularly Barangay Cattubo has a livestock production but is generally

for home consumption only. It is usually being placed at the backyard of the

households. Most commonly raised animals were pigs and dogs while there were

few who raise cows/cattles, goats, and carabaos. Some households sell their pigs

in the neighborhood or to nearby stores.

Cattle, goat, and carabao were being fed with grasses daily, while swine

were being fed with pure mash called starter during the first month; a grower

mash after two months; and finisher mash with some additional foods like rice,

sayote, camote leaves, and ubbak when the pig is already at least 3 to 4 months.

Sometimes, the swine were also given snacks which could be pure ubbak or

sayote.

- Poultry Production

Similarly, poultry animals were also being raised at their backyard and for

personal consumption only. Chicken is the most common poultry animal being

raised. Only few households raise ducks and geese.

The livestock and poultry products were usually butchered during family

events like weddings, deaths and burials, and blow-outs.

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- Fishery Production

In terms of fishery production, the municipality is currently developing

and encouraging people to have backyard fish production. The local government

constructed a demonstration farm of Tilapia production in Barangay Pasdong.

They are also giving free fingerlings to those people who are interested in such

venture.

At present, there is no existing fishery production in Barangay Cattubo.

However, the barangay has potential for such production since there are creeks

and rivers located in Sitio Calasipan.

Since the Barangay has no existing fishery production, there were no

records for production inputs and costs.

Production Inputs and Costs

There were no available data on production inputs and costs of the above

livestock/ poultry since these are being used commonly for home consumption

and rarely being marketed to the neighborhood.

c. Farming Practices

Traditional Farming/ Indigenous Farming

The barangay uses traditional farming activities, which are being done

manually, such as land preparation, planting, crop care, threshing, harvesting,

hauling, and storage. Locally available materials and equipment were being used

for these activities which includes grub hoes and spades. Sometimes, land

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preparation and crop care/ maintenance were being done with the aid of fuel-feed

equipment like hand tractor and power sprayer.

Organic Farming

Most of the farmers use organic and inorganic fertilizers in vegetable

production. There were only more than three farmers who are using 100% organic

fertilizers at present. Chicken dung is widely used as organic fertilizer and applied

only once per cropping.

Farming Technology Adapted

There were a number of farming technologies that had been introduced to

the farmers of Cattubo through trainings and seminars such as crop programming,

Integrated Pest and Management Technology, and organic farming. However,

these technologies could not be applied in the farms. Only organic farming, using

chicken manure as fertilizer, was being adapted in the barangay. Unfortunately,

there were times when proper application of chicken manure was not practiced by

the farmers. They applied chicken manure to crops without being composted.

d. Pests, Diseases and Control

Crops

According to the PPIP of Barangay Cattubo, the farmers were dependent

on chemical inputs in controlling pests and diseases. Most commonly used were

green labeled insecticides which include Dithane, Vondozeb, Elosal and Rover

which were sprayed only when necessary. In addition, the frequency of

application or spraying depended on the type of disease, the degree of infestation,

and the type of crop.

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Livestock

The barangay was highly dependent to the MAO for pests and disease

control of livestock. There were various actions done by the MAO to prevent the

occurrence of diseases in livestocks such as deworming and delousing,

vaccination, and hygiene and sanitation. However, livestock raisers seldom attend

seminars and trainings to update their knowledge on pest and disease control.

e. Facilities

Production Facilities

All of the production facilities in the barangay are privately owned. There

are a total of twenty (20) water pumps, four (4) of which are for public use and

the rest is privately owned. Furthermore, most of these equipments are also for

hire.

Post-Harvest Facilities

According to the Cattubo Barangay Profile of 2009 as cited in the PPIP

2011-2015, there are 10 tramlines, 49 small farm reservoirs, 40 pump and engine

sets, 14 power tillers, 3 tractors and 45 green houses. There are also three Seed

Potato Storage Houses at Tulodan that were funded by the Department of

Agriculture.

f. Marketing and Product Flow

Market outlets

Vegetable products in large quantities were being sold at trading posts

located in Baguio City and La Trinidad, Benguet while vegetable products of

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small quantities were being sold at Atok Public Market located in Sayangan,

which is considered as the growth center of the municipality.

Traders

The farmers in the barangay are being referred to as traders since they

themselves sell their own crops to middlemen at the trading posts located in La

Trinidad, and Baguio City.

Trade and Industry

a. Agri-Based Industries

There were no agri-based industries present in the barangay.

b. Micro-enterprises, Cottage and Small Scale Enterprises

There were 44 types of business establishments distributed in the six sitios

of the barangay. These include several sari-sari stores, 2 cooperatives, a bakery

and a restaurant. All business establishments except for the cooperatives were

privately owned (Barangay Profile, 2009 as cited in PPIP, 2011-2015).

c. Micro-Finance and Credit

There are currently no lending institutions in the barangay. However, there

is an existing informal credit and market system in the locality called the Supply

System where in suppliers, usually traders or small stall owners located in

Trading Post at La Trinidad, provide all inputs and to some extent household

needs of the farmers. There are also cooperatives and a women’s association that

provide financial assistance, in small amount, to their members.

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d. Other Livelihood Activities

Farming is the major source of income in the community. However, there

are also other livelihood activities in the barangay like, carpentry, vending,

poldiya, among others.

Tourism

The Province of Benguet focuses on eco-tourism. Their tourism spots are

basically natural and cultural heritage areas which are widely spread out in the

province. In the municipality of Atok, specifically in Barangay Cattubo some of

the potential tourist attractions in the Barangay are the Loacan River and the St.

Teresita Mine or most commonly known as the Quadselm located in Sitio Botiao

while the Highest Point View Deck can also be considered as a tourist attraction.

Status of Land Tenure in the Community

Agricultural Status

Based on the Barangay Cattubo survey conducted in 2009, majority of the

households in the barangay owned the farms they were working on. However,

there were eighteen (18) households who do not have their own agricultural land

while one (1) household was working on a farm without the consent of its owner.

Education

a. Community Education Profile

Literacy Rate

Barangay Cattubo has a literacy rate of 99%. The 1% remaining,

considered as illiterates, consist of people belonging to the old age group as well

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as those who did not attend any formal education due to distant location of

schools from their houses.

Educational Attainment by Sex

As of school year 2009-2010, a total of 58 were enrolled in Grade 1, 44 in

Grade II, 45 in Grade III, 39 in Grade IV, 42 in Grade V, and 31 in Grade VI.

Thus, a total of 259 children aged 6 to 13 years old had reached and/or graduated

from elementary.

Furthermore, according to the assessment of the educational profile of the

barangay as per educational attainment based on age, 98% of children ages 6 to

12, 95% of those in 13 to 16 years old, and 75% of the population ages 17 to 23

years were in the elementary, high school, and college level respectively.

For the population ages 24 to 94, 15% of which have attained elementary

level while 20% were able to graduate from elementary, 15% have attained high

school level and only 10% of which were able to graduate from high school. Only

9% of the population has attained college level or vocational and 6% were able to

finish college.

b. Educational Facilities

Barangay Cattubo has a total of three elementary schools, including one

primary school, and it has two (2) pre-schools and four (4) day care centers. High

school students were studying at Saint Paul’s Academy located at Sayangan,

Paoay. Furthermore, non-formal education was no longer offered in the barangay

and those who were interested to attend the Alternative Learning System would

enroll in Sayangan.

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Health and Sanitation

a. General Community and Health Sanitation

In general, the community was considered to have a healthy and sanitary

condition. As per assessment by the midwife of the barangay, health condition of

the community was rated as 95%, which means that there were no major threats

on the health of the people such as dengue and other diseases caused by mosquito.

On the other hand, the sanitary condition of the barangay was rated as 90% due to

absence of dumping sites which lead some people to burn and dump their garbage

anywhere.

b. Leading Causes of Death

According to the PPIP, the top leading cause of mortality in the barangay

was Cardio Vascular Disease with 24 cases recorded. The least was on chemical

poisoning with only one case recorded (Barangay Profile, 2009).

c. Domestic Water Supply and Waterborne- diseases

Currently, there are potable water reaching a number of households

through installation of GI pipes and plastic hose which are unaffordable to some

household due to high cost of installing such pipes.

As a result, 40% of the residents in the barangay depend on water being

provided by the LGU. However, this water service cannot reach all the sitios thus

they have to fetch water from sources.

Additionally, there were also existing open wells and springs but these

water sources can easily be contaminated especially during rainy season. Harmful

effects of water contamination were widely known in the community.

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BARANGAY CATTUBO, ATOK, BENGUET

d. Incidence of Malnutrition

According to Cattubo Barangay Profile of 2009, there were some

incidences of malnutrition in the barangay. There were 78 children who were

diagnosed as malnourished as per the record of the Rural Health Unit, but due to

supplemental feeding and continuous monitoring, the total number of

malnourished children eventually decreased.

e. Health Programs and Services

Health services and programs present in the barangay were coming from

Atok District Hospital; the RHU located in Sitio Sayangan, which renders

immunization for children and mothers, conduct/ facilitate household survey,

health status monitoring and sanitation, operation timbang to children and health

education; and the SLU Mobile Clinic, which also helps the barangay in

providing the health services. There is also a Botika sa Barangay located in

Tulodan Proper which provides medicines at a lower cost.

Housing and Ownership

According to the PPIP, 99.9% of the households own their houses.

Majority of these houses were made of half galvanized iron or half concrete.

Household Assets/ Properties

a. Transportation

There are no public utility vehicles in the barangay. However, there are a

total of 142 different transportation facilities; which includes jeepneys, trucks,

vans, and cars; which were privately owned by different individuals.

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Residents in the barangay only take a ride in public utility transportation

like buses or vans plying the Halsema Highway when they go to Baguio, La

Trinidad or anywhere outside the barangay.

b. Communication

More than 90% of the household uses cellphone as their major means of

communication while another form of communication is thru radio, which

provides update and current event information for the community. There are 325

households recorded to have this item.

Another traditional form of communication widely used in the barangay,

and even to the whole municipality of Atok, is the paw-it or bilin system where

one hands over or entrusts verbal messages to one person and the same is relayed

or delivered to the receiver.

Likewise, newspapers and other reading materials are bought outside the

barangay.

Social Infrastructures

a. Government Facilities

Majority of the government facilities are found at Barangay Paoay. The

only government facility in the area is the barangay hall which also houses the

clinic.

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b. Schools

Barangay Cattubo has a total of seven school infrastructures - elementary

and day care. These schools were located in the sitios of Calasipan, Oyusan,

Tulodan and Timbac.

c. Health Centers, Hospitals and Clinics

There were no other health facilities/ infrastructures in the barangay

except for the barangay clinic which was located in the barangay hall. Residents

usually bring their patients to Atok District Hospital located at Barangay Paoay

specifically at Sitio Sayangan, which is more than 5.5 kilometers away, or to other

hospitals in Baguio City and La Trinidad.

d. Utilities (electricity, water, communication)

BENECO serves as the barangay’s source of electricity. As per barangay

data (2009), more than 50% of the total households have electricity while the

other half of the household population use kerosene/ petroleum, gas and candles

as their source of lightning. There were some households who do not have

electricity service due to distant location to the BENECO mainline.

e. Finance (banks, credit, microfinance, coop)

There are no financial institutions located in the barangay as well as

lending institutions, as mentioned earlier. There is only one bank in the

Municipality of Atok which is located in Sitio Sayangan. Most financial

institutions in the municipality are found at Barangay Paoay, this includes

cooperatives which provide credit to farmers.

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Community Infrastructures

Based on the update of the Barangay Council, there were almost 21

existing farm-to-market roads and barangay roads, and one provincial/ national

road in the area. In terms of road maintenance, DPWH was responsible for the

national road, Provincial Government for the provincial roads, and the residents

of the community for the barangay roads. The residents of the community make

use of the aduyan or bayanihan system in maintaining the barangay roads as well

as for foot trails and foot paths.

There are four (4) existing foot bridges in the barangay, two of which

needs reconstruction. Three (3) of the foot bridges are located in Sitio Botiao and

one (1) can be found in Sitio Calasipan. The longest foot bridge is Gusaran while

the shortest is the Pad-el foot bridge.

Furthermore, Barangay Cattubo has four (4) irrigation systems servicing a

total of 80 hectares. However, three (3) of these are in need of rehabilitation.

In addition, all sitios in the barangay have their own water sources which

have been serving the area for a long time, may it be for domestic or agricultural

use.

Community Development Interventions

For many years now, the barangay has been a beneficiary of different

projects or programs coming from the local, national, as well as international

agencies such as HADP, CHARM 1 and from other non-government

organizations.

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BARANGAY CATTUBO, ATOK, BENGUET

SOCIO-DEMOGRAPHIC PROFILE OF THE RESPONDENTS

Household Population by Sex, Age Group and Civil Status

Male household members, 57% (138), dominate the female population 43% (103)

(Figure 6 and Table 3).

43% Male
Female
57%

Figure 6. Distribution of Male and Female Household Members

Table 3. Total Number of Household Members by Age Group, Sex and Civil Status
HOUSEHOLD POPULATION
CIVIL STATUS
AGE GROUP BOTH SEXES Male Female
Single Married Widowed
Under 1 4 2 2 4 0 0
1-4 14 7 7 14 0 0
5-9 26 8 18 26 0 0
10-14 27 14 13 27 0 0
15-19 27 20 7 26 0 0
20-24 28 17 11 20 9 0
25-29 22 14 8 10 12 0
30-34 16 9 7 5 10 0
35-39 9 5 4 1 9 0
40-44 19 12 7 4 15 0
45-49 16 10 6 3 11 3
50-54 16 10 6 0 14 1
55-59 8 4 4 2 5 1
60-64 2 1 1 0 2 0
65-69 2 1 1 0 2 0
70-74 3 3 0 0 3 0
75-79 1 1 0 0 1 0
80 and over 1 0 1 0 0 1
All ages 241 138 103 142 93 6

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The age group 15 to 19 had the highest number of population (20) for the male

household members while the female household members had the highest number of

populace (18) for the age group five to nine. Table 3 and Figure 7 indicate that the males

and females in the covered barangays were mostly young. A young population implied a

high number of economic dependents. However, they can be the most valuable resource

of their economy in the future. Furthermore, there were seven household members that

comprise the old aged dependents (65 and over). The average number of dependents per

household was three and the average household size was 4.72 or 5.

Male Female

Figure 7. Frequency Distribution of Male and Female Household Members by Age Group

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BARANGAY CATTUBO, ATOK, BENGUET

Fifty-nine percent (142) of the household population was single, while only 2%

(6) of the population was already widowed, as shown in Figure 8. Most of them were still

single since majority of the residents were in their adolescence. Based on the interview,

there were no recorded households wherein the parents were separated. Results also

showed that 39% of the population was married. Table 3 indicates that age group 20 to 24

years old is the starting age of marriage.

2%

Single
39%
Married
Widowed
59%

Figure 8. Distribution of Household Member’s Civil Status

Educational Attainment

Figure 9 shows that there were 62 household members who were enrolled at the

elementary level followed by 56 and 42 household members who were currently enrolled

at high school and college levels, respectively. However, in terms of the number of

elementary, high school, and college graduates, there was a big difference when

compared to those who are currently attending elementary, high school, and college

levels. This was due to the significant high number of young population as shown in the

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BARANGAY CATTUBO, ATOK, BENGUET

age distribution of the household members. In addition, the discrepancy can be explained

by a number of elder who did not finish their studies due to personal and financial

reasons.

There were five household members who attended vocational courses. Six were

either not of school-age or not capable of attending formal schooling. It was also noted

that there were 12 uneducated household members.

70
62 Uneducated
60 56
Pre- Elementary

50 Elementary Level
42 Elementary Graduate
Frequency

40
High School Level
30 28 High School Graduate
College Level
20
12 College Graduate
11
9
10 7 6 Vocational Course
5
Not Yet Applicable
0
Educational Attainment
Figure 9. Educational Attainment of the Household Population

Occupation

Most of the household members (114), as shown in Figure 10, were farmers.

Farming was the most applicable work in the area because of its biophysical

characteristics. It was the major source of their livelihood. Meanwhile, other than

farming, there were eight household members who were employed as teacher, seller of

vegetables, veterinarian, laborer, and book keeper.

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Data also show that 47 were still students while 19 were unemployed. On the

other hand, there were 46 individuals who do not belong to the working group due to

reasons like age and incapability.

120 114
Farmer
100

Student
80
Frequency

60 Unemployed
47 46
40
Not applicable
19
20
8
Other Type of
0 Employment
Occupation
Figure 10. Frequency Distribution of Household Members According to their Occupation

Annual Income

Twenty-three of the household members had an annual income range of Php

46,000-60,000 (Figure 11). Based on the interview, most of their incomes were from the

vegetable produce which were transported and sold to La Trinidad Trading Post. Twenty

household members had an average income ranging from Php 31,000-45,000 while 18 of

them had an annual income ranging from Php 101,000-200,000.Fourteen household

members had an income of Php 1,000-15,000 and another 14 also had an income of Php

16,000-30,000. The survey also showed that two of the household members had an

annual income range of Php 61,000-75,000. Only three of the household members had an

annual income range of Php 201,000 and above. Differences in income had been

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attributed for their differences in jobs and farm productions. The overall average annual

income of the households respondents was estimated at Php. 68, 645.00.

25 23

20 1,000-15,000
20 18 16,000-30,000
31,000-45,000
14 14
Frequency

15
46,000-60,000
61,000-75,000
10
76,000-90,000
6
91,000-100,000
5 3
2 101,000-200,000
0
0 201,000 and above
Annual Income
Figure 11. Frequency Distribution of the Annual income of the Household Members

Religion

Figure 12 shows that most of the households were Roman Catholics (70.2%). The

result supported the fact that Catholicism is still the most influential religion in the

Philippines. Few household members were Pagan (1.6%). According to the survey, 9.6%

of them were from the Christian Spiritists in the Philippines Inc. while 5.9% were

Protestants. Other religions were Baptist, Christian, Pentecostal and Jehovah’s Witnesses.

Religious affiliation is an important part of a society. This may affect the frequency and

distance of travel of the household members to their respective place of worship which

will be discussed in the later part of the study.

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80 Roman Catholic
70
70 Christian Spiritists in
60 the Philippines Inc.
Protestant
Percentage

50
Baptist
40
Christian
30
Pentecostal
20
10 Jehova's Witness
10 6 4 3 3 3 2
0 Pagan
Religion

Figure 12. Religious Affiliations of the Household Members

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PROJECT IMPACTS

SOCIAL IMPACTS

According to Mrs. Julie Sabado, head of the Municipal Social Welfare and

Development Office, ninety percent of the population in Atok was able to access social

services available in the municipality. This was said to be due to the awareness of the

people on the services and programs by the local government unit. This was supported by

Mrs. Juana Bamaue, head of the Provincial Social Welfare and Development Office. She

said that there were no issues regarding the accessibility of social services. Social

services were made available to the residents as long as they fit in the requirements. But

she added that road is very vital in the provision of these services. There were places that

social services are still inaccessible because of poor road conditions.

Mrs. Sabado said that the road rehabilitation project will bring easy access to

social services in the areas influenced by the road. She emphasized on the provision of

health services especially in cases of emergency. More so, the road rehabilitation can

affect the livelihood of the people in terms of transporting their products. She added that

the rehabilitation of road can bring safety for the residents in the area particularly for the

youth sector. She said that maximum social benefits of the road can be achieved if the

implementers will include riprap, canals, pedestrian lanes, and railings on the road

project.

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Places Visited

In terms of social facilities, results showed (Figure 13) that most of the people in

the barangay go to church (24.9%). This indicates that most number of household

members go to their respective houses of worship than any other social facilities available

in the community. There is also a large number of household population that utilizes the

market located in Sitio Sayangan (18.2%). Furthermore, seventeen percent of the

household members go to school. This is due to the fact that, as mentioned earlier, most

of the household population belongs to the school age group.

Figure 13 also shows that most of the households frequently travel to La Trinidad

(15.9%) relative to than Baguio City (4.3%) to market their crops because of the distance

to their barangay and travel time spent.

30.0

24.9 School
25.0
Market
20.0 18.2 Church
17.2
Percentage

15.9
Hospital
15.0
Place of Work
10.3
10.0 8.7 La Trinidad
Baguio
4.3
5.0 Bunglo
0.2 0.2 Itogon
0.0
Places Visited

Figure 13. Places Visited by Household Members

Figure 14 revealed that places of work were the most frequently visited. A

household’s average frequency of visit to their place of work is 29 times per month.

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Schools are the second most frequently visited with an average frequency of 18 times a

month.

It was also noted that most of the other places have an average frequency of visits

of two to four times a month. It is explained by the fact that most of them only go to

church or market place once a week. Results also showed that despite the distance of

Baguio City, the respondents still visit the place at a frequency of four times a month on

the average due to availability of social services and trading posts in the area.

180

160 155
School
140
Market
120 113
Frequency of Visit

107 Church
99
100 Hospital

80 Place of Work
64
54 La Trinidad
60
Baguio
40 27 Bunglo
20
Itogon
1 1
0
Places Visited

Figure 14. Frequency of Visit to Social Services and Facilities

Travel Time

Result showed that 100 percent of the respondents believed that there will be a

decrease in the travel time from the place of origin to the place of destination when the

road is rehabilitated (Figure 15). According to the respondents, the rehabilitation of road

will make the travel easier and faster for the vehicles passing through the road, will lessen

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BARANGAY CATTUBO, ATOK, BENGUET

maintenance costs for the vehicles, will serve as shortcut route for the farmers, and will

diminish other vehicle-related problems.

The reduction in travel time had an effect to the number of travels of the residents.

The respondents expected an increase in the frequency of their travel once the road is

rehabilitated compared to their present average frequencies which when computed

resulted to seven (7) in Cattubo, eight (8) in Pacso, and 10 in Natubleng. Moreover, the

time saved from the decrease in travel time can be utilized to attend to other social

activities.

0%

YES
NO

100%

Figure 15. Perceived Reduction in Travel Time

Based on the distance and the average travel time of social services estimated by

the respondents, the travel time (in hour) per kilometer was computed (Figure 16). The

perceived travel time per kilometer for the without the project scenario was 0.062, while

for with the project scenario was 0.043hr/km. Upon the rehabilitation of the road,

0.019hr/km can be saved in the travel time of the residents.

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There will be a significant decrease in travel time for the household respondents

thus making the social services and facilities more accessible for them. A decrease in

travel time would also yield greater benefits for the respondents since they will have

spare time to make other activities or increase frequency of visits to other social facilities

and services.

Without the project


0.062

With the project


0.043

0 0.01 0.02 0.03 0.04 0.05 0.06 0.07


Travel time/Kilometer (hr/km)

Figure 16. Average Travel Time (in hour) per Kilometer With and Without the Project

Traffic Volume and Traffic Accident Rate

Results showed that the primary effect of the road rehabilitation project on the

traffic pattern/volume will be the increase in the number of vehicles or type of vehicles

that will pass through the area (59%). This was followed by does not cause heavy traffic

(31%), causes heavy traffic (9%), and no effect (1%) respectively (Figure 17).

Most of the respondents believed that the road rehabilitation project will trigger

an increase in the number of vehicles traversing the area because the road will be more

passable. However, this will not lead to heavy traffic since they believe that the local

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residents will still be the main users of the road as argued by the respondents. A few who

stated that it will cause heavy traffic explained that it will be due to the tourists coming in

and going out of the area.

70

59
60 Increase Number of
Vehicles/ Type of
50 Vehicles
Causes Heavy Traffic
Percentage

40
31
30 Does not Cause Heavy
Traffic
20

9 No effect
10
1
0
Effects on Traffic Pattern/ Volume
Figure 17. Perceived Effects on the Traffic Volume/Pattern of the Road Rehabilitation
Project

Majority (98%) of the respondents perceived that the road rehabilitation will not

result to an increase in the traffic accident in the area as shown in Figure 18. The

respondents explained that instead of an increase in the traffic accidents the project may

even decrease its occurrence. The respondents also mentioned that after the rehabilitation

the road can be less slippery during rainy season and traveling can be relatively safer.

Moreover, road rehabilitation can decrease the vehicle problems such as loose break and

other engine related problems. Other respondents mentioned that the traffic accidents

depend on the driver of the vehicle. On the other hand, two percent of the respondents

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perceived that the project can lead to more accidents since more vehicles may pass the

road after rehabilitation.

2%

INCREASE

DECREASE

98%

Figure 18. Perceived Effects on the Traffic Accident on the Area

Income and Other Perceived Impacts

On the income and other perceived impacts, results showed that increase in

income (53%) is the most frequently mentioned impact of the road rehabilitation project.

This was followed by more job opportunities (21%), decrease in transportation

cost/decrease in maintenance cost (7%), no impact at all (6%), no change in income

(4%), and increase in travel frequency of crops/ increase in number of crops transported

(1%) respectively (Figure 19).

According to the respondents, the increase in income will not only be for the

farmers but also for the other residents in the area. Increased income was also perceived

to be directly related to increase in job opportunities in the area where the local residents

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can venture into businesses as a result of the influx of the tourists. Some respondents

identified that the impacts of the project will be reflected on their travel costs. As such,

decrease in transportation costs and decrease in maintenance costs were the expected

impact since they explained that the income will still depend on the volume of crops that

they will harvest. The same reason was explained by the respondents who answered that

the road rehabilitation project will have no impact on their income and no impact at all. It

was also noted that the respondents recognized that there is a chance that the number of

crops transported and the travel frequency of marketing will increase once the road is

rehabilitated.

60
53 Increase Income

50 No change in income

More job opportunities


40
Percentage

Decrease in transportation cost


30
Decrease in maintenance cost
21
20
Increase travel frequency of crops

10 7 7 6
Increase in number of crops
4 transported
1 1
No impact at all
0
Income and Other Perceived Impacts
Figure 19. Income and Other Perceived Impacts on the Community

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Employment Impact

The project is expected to generate jobs for 11 skilled and 44 unskilled laborers,

based on the individual project program of work prepared by the municipal engineer of

Atok. It will cover 53 working days during the construction phase.

For the maintenance of the road, it was estimated that the project can generate

jobs for 38 skilled laborers in a day or 38 working days for a laborer annually. In terms of

unskilled laborers, the project can create jobs for 86 laborers in a day or 86 working days

for a single laborer every year. The number of skilled and unskilled workers was derived

from the financial maintenance labor cost computed and the DPWH basic daily wage

rates of Php 221.40 and Php 205.00, respectively.

The road rehabilitation project will increase local employment in the area if the

local residents will be hired as laborers. In effect, this will serve as an additional source

of income other than farming.

Social Patterns, Culture and Ethnicity

According to the results of the survey, 68% of the respondents believed that the

project will influence their social patterns/daily activity patterns while the remaining 32%

believed otherwise (Figure 20). The social patterns/daily activity patterns will be

influenced by the increase in the number of vehicles passing the area resulting to the

augmentation in the frequency of travel of the residents. The increase in travel frequency

will trigger increase in the activities of the residents, since the work in the transportation

of crops will be faster and easier which can save time. There will also have a possibi

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lity that new technology will be introduced in the area that can affect their social patterns

and can create changes in farming technologies in the area. The others who answered that

their social patterns/ daily activity patterns will not be influenced by the road

rehabilitation explained that there will only have some adjustments during the

construction phase of the road but they will be back to their old routine after that.

32%

YES

NO
68%

Figure 20. Perceived Impact on Social and Daily Activity Patterns

Fifty percent of the respondents believed that the project will cause sub-cultural

variation on the directly and indirectly influenced areas while the other 50 percent

believed that it will not cause sub-cultural variation (Figure 21). Those who answered

that the road rehabilitation can cause sub-cultural variation explained that there will be an

increase in the number of tourists passing the area which can influence the local people.

This will subsequently lead to exchanges in the culture of the natives and the tourists.

Some mentioned that even intermarriages in the area will be a possibility. On the other

hand, the respondents who answered that the road rehabilitation cannot cause sub-cultural

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variation stated that there will also have an increase in the number of tourists but these

tourists will just pass by and will only serve as observers of the natives’ culture. The local

culture will become a tourist attraction and thus the tourist shall adapt to their culture.

Furthermore, they said that instead of the local culture being affected, it is more probable

that they can affect the culture of the tourists.

YES
50% 50%
NO

Figure 21. Perceived Impact on Sub-cultural Variation

Ninety-four percent of the respondents answered that the road rehabilitation

project can increase leisure and cultural opportunities for the residents in the area while

only six percent of the respondents said that the project will not increase their leisure and

cultural opportunities (Figure 22). The increase in leisure and cultural opportunities shall

be influenced by the perceived increase in the number of tourists in the area, the possible

increase in travel frequency of the residents to other places, and lesser time spent for

travelling. On the other hand, those who answered that there will be no increase in leisure

and cultural opportunities explained that it will depend on the income of the people and

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SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
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BARANGAY CATTUBO, ATOK, BENGUET

on whether they own private vehicles or not. In addition, they said that leisure activities

will not be that frequent since they have to attend their farm.

6%

YES
NO

94%

Figure 22. Perceived Impact on Leisure and Cultural Opportunities

The results on the impacts on the present ethnicity of the road rehabilitation

project showed that most of the respondents perceived no impacts on their ethnicity

(85%). Loss of ethnicity and improvement on cultural practices both garnered 7.5 percent

as shown in Figure 23. The loss of ethnicity was primarily due to the possible influences

of the tourists to the local people. But the improvement on cultural practices was also

perceived to be caused by the tourists in which the locals will have the opportunity to

showcase their own culture.

100
85
80
None
Percentage

60
Loss of Ethnicity
40

Improvement on
20
7.5 7.5 Cultural Practices
0
Impacts on the Present Ethnicity

Figure 23. Perceived Impacts on the Present Ethnicity of the Road Rehabilitation Project
Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page 69
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2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

Access to Social Services

In terms of distances to social services, the household respondents are grouped

according to their location. The average distances from the different social services were

computed for every site. For Barangay Pacso, the farthest are the trading posts. These

trading posts can be found in La Trinidad (93.2 km) and Baguio City (94.22 km). In

terms of the market and hospital, both have the same average distance of seven kilometer

from Pacso, while their place of worship is six kilometer away from their residence. The

social service nearest to the people of Pacso was the school which is five kilometer far.

Likewise, La Trinidad (58 km) and Baguio City (62.55 km) trading posts are

farthest from Barangay Natubleng. Their worship area is 16.56 km away from the

barangay while their hospital and market are 12.6 and 12.75 km away, respectively.

Locations of their schools are 6.62 km from their residences relatively farther compared

with Barangay Pacso. Their places of work are the nearest to their barangay at only 0.5

km. It is relatively nearer compared to the places of work in the other barangay.

For Sitio Calasipan, trading posts located in Baguio City and La Trinidad are the

two farthest. Baguio City and La Trinidad had an average distance of 58 and 55.67 km

from the area, respectively. Additionally, schools in Calasipan are relatively farther

compared to the two other barangays. On the average, schools were 35.7 km away from

the area. Similarly, the households’ location was far from the hospital at 19.75 km. The

market, which is 14.03 km away, is also relatively farther from the households in the area

compared to the two other barangays mentioned earlier. On the other hand, their places of

worship and the places of work which are only 1.07 km and 0.65 km respectively are the

nearest places from the households.

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Households from Sitio Baybayog were not visiting Baguio for trading of crops

and other social activities. They only go to La Trinidad as their place for trading goods.

La Trinidad is 59.43 km away from the households’ locations. The place also had the

same average distance to their market and hospital (10 km) while their places of worship

were nearer, which is 1.2 km on the average. Similar to the three other places mentioned

above, households from Baybayog also live near their places of work which is only 0.1

km far.

In the case of Sitio Timbac, Baguio (60 km) and La Trinidad (57 km) were the

farthest. In addition, distances of the hospital, market, and places of work have almost the

same average distance to the households at 7.67, 7.14, and 7.13 km, respectively. For

their places of worship, an average of 3.04 km was estimated. The nearest of all the social

services being used by the respondents were the schools (0.69 km).

In Sitio Apanberang, Baguio and La Trinidad are about 57.5 and 55.25 km away,

correspondingly. It was noted that Itogon was the farthest, which is 75 km away from the

households. It was not that significant since as discussed earlier, only one household

member regularly visits the place. The same is true for Bunglo which is 8 km away from

Apanberang. It was also found out that the market is relatively far from the households

(15.14 km). The hospital was just 8.2 km away from the household respondents while

their places of worship were near at only 5.57 km. Similarly, the schools are also nearer

to the respondents (2.83 km). There was no distance indicated for the workplace since it

is located where the respondents’ houses were built.

It can be noted that most of the respondents visited Baguio and La Trinidad

despite its far location from the households. Only respondents from Sitio Baybayog did

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not go to Baguio for trading and other social services. Schools, market, places of work,

hospitals, and places of worship are relatively near the respondents’ residences

consequently making them visit and use those social facilities more frequently. In

general, social services available are near to the respondents’ place which makes them

accessible; nonetheless, accessibility of social services can be further improved if the

road will be rehabilitated.

94.22
93.2
Pacso 2
7
6
7
5
Itugun
62.55
58
Natubleng 0.5 Bunglo
12.6
16.56
12.75
6.62 Baguio
58 La Trinidad
55.67
Calasipan 0.65
19.75
1.07 Place of Work
14.03
35.7
Hospital
59.43
Baybayog 0.1 Church
10
1.2
10
2 Market

60 School
57
Timbac 7.13
7.67
3.04
7.14
0.69
75
8
57.5
55.25
Apanberang
8.2
5.57
15.14
2.83

0 20 40 60 80 100
Distance (km)

Figure 24. Distance of Household Respondents to Social Services

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BARANGAY CATTUBO, ATOK, BENGUET

At present, there are no existing public utility vehicles in the area. Most of the

vehicles being used are privately owned. These vehicles are mainly used for transportion

of goods rather than for passenger transit. Their primary means of transportation is by

walking (Figure 25). The vehicles being used the most as means of transportation are

buses (29) and jeepneys (25).

If the project is implemented, people believed that there will be more jeepneys

(30) that will pass through the area. There will be a remarkable decrease in the number of

walking frequencies from 36 to 27 out of the 50 respondents. Furthermore, private

vehicles also had a significant increase from 12 to 23 in terms of frequency. The use of

trucks will be relatively the same with and without the project basing on the results.

If the project is implemented, the people perceived that there will be a frequency

gain of eight for public utility vehicles in the area which include taxi. Even the frequency

of jeepneys plying the route shall increase.

Public Utility
8
Vehicles
23
4 Private
With the Project
21 Vehicles
30
27 Elf/Truck

0
12 Bus
Without the 5
Project 29
Jeepney
25
36
Walking
0 10 20 30 40
Frequency

Figure 25. Means of Transportation With and Without the Project

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Other Social Benefits

When asked about the other possible social benefits of the road rehabilitation

project, majority of the respondents (41 %) answered ease in the access to social services

(Figure 26). Other benefits of the project that are mentioned are business opportunities,

travel safety, lighter workload for the farmers, modernization or introduction of new

technology, easy implementation of the laws in the area, health benefits, and existence of

public vehicles. The least mentioned benefits (2%) are decrease vehicle damages,

improvement on the quality of life, improve communication, and higher possibility of

electric supply provision.

Since the project is on road rehabilitation, the respondents said that it can result to

quick access to social services especially the basic ones like market, schools, and

hospitals. Travel safety was mentioned as another social benefit since they argue that the

road rehabilitation project will lessen the occurrence of accidents in the area as risk-prone

spots will be identified and improved. Moreover, the respondents said that the

rehabilitation of the road can make the work of the farmers easier since there will be less

hassle in transporting their products, and thus it can save time which they can allocate for

other activities. For the local residents, the increment on the number of tourists passing

through the area will generate business opportunities. Another notable social benefit was

the possible existence of public vehicles in the area since there are no public utility

vehicles traversing the farm-to-market road.

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45 Ease in Access to Social Services


41
40 Business Opportunities

Safety
35
Lighter Workload for the Farmers
30
Modernization/ Access to New
Percentage

25 Technology
Easy Implementation of Laws

20 Health Benefits

15 Existence of Public Vehicles


12
11 11
Decrease Vehicle Damages
10
5 Improvement on the Quality of
5 4 4 4 Life
2 2 2 2 Improve Communication
0
Possibility of Electric Supply
Perceived Social Benefits Provision
Figure 26. Other Possible Social Benefits of the Road Rehabilitation Project

FINANCIAL AND ECONOMIC IMPACTS

Project Cost

Based from the financial cost computation of the proposed Baybayog-

Apanberang- Timbac Farm-to-Market road rehabilitation project, the total cost amounted

to Php. 8,360,043.30 within the project span of 20 years. The total cost figure is derived

by getting the sum of capital investment which is the total costs from the construction

phase, and working capital which is the expected costs for the road maintenance once it is

completed. The road rehabilitation estimated to be finished by the first year of the project

while the maintenance operation is expected to start on the second year and end on the

twentieth year. Replacement cost was excluded since the project is on road rehabilitation.

The detailed computation for the project costs is shown in Appendix F.

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The capital investment for the project amounted to Php. 3,500,000 based from the

individual project program of work prepared by the Office of the Municipal Engineer in

Atok. The table below shows the distribution of estimated expenditures for the project.

Table 4. Items and Percentage Allocation for Capital Investment


ITEM PERCENT OF AMOUNT
TOTAL
1. Direct Costs
a. Total Cost of Materials 68.22 Php 2,390,140
b. Labor Cost 8.54 299,150
- Skilled (20.50%)
- Unskilled (79.50%)
c. Equipment Expense 2.06 72,000.00
2. Indirect Costs
a. 7% Tax 7.00 245,263
b. 18% Mark Up (CP & Con) 14.19 497,032
c. Engineering/Administration 0.00
3. TOTAL Estimated Cost 100.00 Php 3,503,305

A large portion (68.22%) of the total estimated cost was devoted to the cost of

materials to be used in the road rehabilitation project. This was followed by mark up

(14.19%) which is added onto the total cost of the project to cope with the possible losses

during the project implementation. Labor cost which is divided into skilled and unskilled

laborers only represents 8.54% of the total capital investment cost. It was noted that the

engineering and administration has zero percent of the total cost.

The working capital was estimated at Php. 4,858,700 during the 20-year project

span. This included labor cost, cost of materials, and management and supervision. The

working capital is projected using linear projection method. Table 5 shows the

distribution of maintenance cost on the project.

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Table 5. Items and Percentage Allocation for Working Capital


ITEM PERCENT OF AMOUNT
TOTAL
1. Labor Cost 25 Php 26, 250
- Skilled (33 %)
- Unskilled (67%)
2. Cost of Material
a. Equipment 23 24, 150
b. Supplies 41 43, 050
3. Management and Supervision 11 11, 550
4. TOTAL Maintenance Cost 100 Php 105,000

The total maintenance cost was based from the computed proportion of the

standard cost on road construction which is Php 2, 500, 000 per kilometer of road, and

the standard maintenance cost which is Php 75, 000 per quarter as set by DA-CAR-

CHARM. Percent allocation for the working capital was calculated from the performance

budget standard maintenance costs of DPWH- CAR. Maintenance activities that are

applicable to the road rehabilitation project were the only ones included on this

computation. Highlights showed that the cost of supplies has the largest portion of the

maintenance cost which accounts for 41% while management and supervision has the

smallest portion which is only represents 11% of the total.

Project Benefits

The benefits of the road rehabilitation project were computed in terms of freight,

and passenger benefits basing on their respective vehicle operating costs savings (VOCs).

Vehicle operating cost savings were measured through comparison of the VOC on with

and without the project. The VOCs per ton of harvested crops per kilometer of road was

used for freight benefits while the VOCs per passenger per kilometer of road was utilized

for passenger benefits.


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Freight benefits were also based on the crops that are commonly planted in the

three directly influenced areas, and the total area allotted for these crops. It was identified

that the most common crops in the barangay are radish, carrots, potato, and cabbage.

Other crops that are mentioned from the survey were grouped together which include

Chinese cabbage, garden peas, beans, rice, tomato, cauliflower, broccoli and celery. The

estimated freight benefit is Php 1,239,338 per year. (Appendix F, Table 15). A total of

Php. 24,786,772 will be the freight benefit within 20 years time.

Passenger benefits were also based from the number of household travels per

month and the total household population in the three directly influenced areas. The

household populations of Barangay Cattubo, Natubleng, and Pacso were projected using

the linear function technique. The values were determined to project the number of

passenger that will utilize the road given the future time. Passenger benefits amounted to

Php. 113, 021 on the initial year after road completion. The project will yield an

aggregated total of Php. 2,958,649 passenger benefit within 20 years time. Appendix F

(Table 19) provides the detailed computation for the passenger benefits. The total benefit

of the project is estimated at Php.27,745,422 within the project span of 20 years.

Financial Evaluation

Table 6 shows that the Net Present Value (NPV) obtained is 3,129,865 pesos

given a discount rate of 15%. The NPV computed indicates that the project is worthwhile

to undertake since a positive result would mean that the project benefits shall exceed

costs given the 20-year accounting period.

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A benefit cost ratio (BCR) of 1.72 was obtained by dividing the total discounted

benefits with the total discounted cost. The computed BCR was an indicator that the

project is feasible since the break-even BCR for the project is 1.

Furthermore, Table 6 also shows that the FIRR obtained for the project was 32%

which is relatively higher than the standard 15% FIRR hurdle rate pegged by CHARM as

the basis for financing a project. A higher FIRR is attributed to a high computed freight

benefit since there is a large volume of agricultural products, from both directly and

indirectly influenced areas, being transported in the proposed road rehabilitation.

A detailed computation used for benefit cost analysis is indicated in Appendix F

(Table 20). In general the results of the financial indicators signify that the project is

viable and worthwhile to undertake.

Table 6. Financial Evaluation Results


Baybayog - Apanberang - Timbac Farm to Market Road
Net Present Value (NPV) Php 3,129,865
Benefit Cost Ratio (BCR) 1.72
Financial Internal Rate of Return (FIRR) 32%

Financial Sensitivity Analysis

A sensitivity analysis was done to measure the effect of changing the variables;

such as benefits, costs, and time, on the project soundness. The project was exposed to

four (4) different cases wherein the benefits were reduced by 10%, project cost was

increased by 10%, a two-year delay in project construction, and a combination of all the

other cases (Table 7). The FIRR, NPV, and BCR were computed for analysis. The

detailed computations of each case are illustrated in Appendix F (Table 20).

Table 7 shows the summary of the sensitivity analysis. A sensitivity index (SI)

was also computed to serve as a measure of the extent of the effect of the said changes on

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the project’s financial soundness. Sensitivity index were computed for each FIRR, NPV,

and BCR results.

For Case A, the total benefit was reduced by 10%. The total benefit from the base

case was reduced from Php 27,745,422 to Php 24,970,880. A reduction of 10% of the

total benefit resulted to an NPV of Php 2,380,187 with a sensitivity index of 23.95%.

Meanwhile, the FIRR computed for this case was 28% and the BCR value was 1.55.

FIRR and BCR had a sensitivity index of 71.85% and 10.00% respectively.

For Case B, the project cost was increased by 10%. This resulted to an increase in

total cost from Php. 8,360,043 to Php. 9,196,047. Increasing the cost of the project lead to

a decrease in FIRR from 32% to 29% and an SI of 71.49%. Furthermore, the BCR for

this case was 1.56 and an SI of 9.09% while the NPV was Php 2693173.69 with an SI of

13.95%.

In Case C, wherein the project will be subjected a two year delay in construction,

both the total project benefits (Php 25,012,995) and costs decreased (Php 7,874,173).

This resulted to lower FIRR of 24% and an SI of 76.09%. It also yielded an NPV of Php

1,826,932 with an SI of 41.6%3 while its BCR was 1.49. The SI computed for BCR was

13.28%.

In Case D, the sensitivity of the project was tested through a combination of all

three other cases. Case D resulted to a decrease in total benefits (Php 22,511,696) and an

increase in total cost (Php 8,661,590). Such combination led to an FIRR of only 19%

with an SI of 80.75% and an NPV of Php 896,520 with an SI of 71.36%. In addition, the

BCR obtained was 1.22 and its SI was 29.05%.

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It can be noted that all the cases obtained smaller FIRR compared to the 32%

FIRR of the base case. All the FIRR results were greater than the hurdle FIRR rate, which

is 15%. Given this, the project is still considered viable. Among the four cases, an

increase in project cost by 10%, Case B, yielded the largest FIRR (29%). Case B also had

the smallest SI which means that such case will have lesser effect on the project viability

among other cases. On the other hand, Case D yielded the smallest FIRR (19%), which is

nearer the hurdle rate. Similarly, it also revealed the largest SI (80.75), which implies that

this case will greatly affect the project compared to other cases.

Likewise, the same result was obtained for the NPV. All cases had lower values

of NPVs compared to the base case (Php3,129,865). Case B also had the largest NPV

(Php 2,693,173) among all cases while it also registered the smallest SI, which is 13.95;

whereas, for combination of all the cases, Case D expectedly had the least NPV (Php

896,520) and the largest SI at 29.05. This means that the project is least sensitive to an

increase of 10% in cost and most sensitive to a combination of all such cases.

Furthermore, the result in BCR is just the same as for the FIRR and NPV. BCR of

the four cases were smaller compared to the base BCR (1.72). A project cost increase of

10%, again had the largest BCR value (1.56) compared to other cases and at the same

time recorded the smallest SI of 9.09. Case D had the least BCR and largest SI, which are

1.22 and 29.05 respectively.

It was noted that the project would still be viable even if such cases would occur

due to the positive results of the indicators. In general, the project is least sensitive to an

increase in cost by 10% compared to other cases. A combination of a decrease in benefits

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by 10%, an increase in cost of 10%, and a delay in construction for two years would have

greater effect on the financial viability indicators of the project.

Table 7. Summary of Financial Sensitivity Test


Item Appraisal
a
FIRR SI NPV SIa BCR SIa

Base Case 32% Php3,129,865.34 1.72


A. Benefits reduced by
10% 28% 71.85 2380187.16 23.95 1.55 10.00
B. Project Cost
increased by 10% 29% 71.49 2693173.69 13.95 1.56 9.09
C. Two- years Delay in
Construction 24% 76.09 1826932.03 41.63 1.49 13.28
D. Combination of A,
B, and C. 19% 80.75 896520.22 71.36 1.22 29.05
a
The sensitivity indicator (SI) is the ratio of percentage change in FIRR in response to a percentage change in a given variable. A high
value of SI implies that the Project is sensitive to a change in that variable and vice versa.

Economic Evaluation

Based on the financial values, economic computations were derived using the

shadow prices. The shadow wage used to convert the unskilled labor cost was 0.92 and

the SCF used to convert the cost of equipments and supplies was 0.98.

The computed economic freight benefit per year is Php 1,214,250 (Appendix G,

Table 29). The 20-year project was expected to generate a total of 24,285,015 freight

benefits in economic terms. On the other hand, the computed economic passenger benefit

for the initial year of road operation is Php 123, 685. The passenger benefits for the

subsequent years were projected by incorporating the effects of the population growth

rate of Benguet. The project is expected to yield a total of 2,911,307 passenger benefit

within 20 years time. In general, the project recorded a total benefit of Php 27,196,323

within the span of 20 years.

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The total capital cost of the project in economic terms is estimated at Php

3,433,137. After the construction, the projected operating and maintenance is about Php

102,228 per year. In general, the aggregate total cost of the project was Php 5,477,697.

Given the computed total benefits and the total costs, the project is projected to gain a net

benefit of Php 21,718,626.

In consonance with the computed values, a net present worth (NPW) of

Php3,805,895 was estimated. Based on the ADB economic viability criteria the project is

considered viable if the NPW is positive. On the other hand, the computed BCR of the

project is 2.07. The BCR was based on the discounted benefits and costs of the project.

The project is considered viable if the BCR is greater than 1. Study results yielded an

EIRR of 36%. A project with an EIRR which is greater than the chosen discount rate is

considered viable. The standard discount rate of 15% was used in CHARM projects.

Taking all the base values of the economic indicators, the project is considered

economically feasible. The table below shows the result of economic evaluation.

Table 8. Economic Evaluation Results


Baybayog - Apanberang - Timbac Farm to Market Road
Net Present Worth (NPW) Php3,805,895
Benefit Cost Ratio (BCR) 2.07
Economic Internal Rate of Return (EIRR) 36%

Economic Sensitivity Analysis

To test the effects of abrupt changes on the economic viability of the project,

sensitivity analysis was undertaken. Such analysis can indicate the variables on which the

success of the project most depend on such as benefit reduction, operating cost increase,

delays in project construction, and exchange rates (Clark, 2005). In the sensitivity

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analysis used to test the economic viability of the road project, three parameters were

modified –project benefit, project cost, and delay in construction.

For Case A, the benefits of the project were reduced by 10%. Given this scenario,

the total benefits from the base case decreased from Php 27,196,323 to Php 24,476,691.

The reduction in total benefits lead to the decrease of net benefits from Php 21,718,626 to

Php 18,998,994. Likewise, the EIRR decreased from 36% to 32%. The sensitivity index

of EIRR was 67.85%, which reflects the project’s sensitivity to the decrease in benefits.

Moreover, the NPW of the project decreased from Php 3,805,895 to Php3,071,130, which

can be attributed to the decreased in the net benefits. A 19.31 sensitivity index was

computed which indicates the percentage change in NPW. Consequently, the 10%

decrease in the benefits leads to the decrease in the BCR values from 2.07 to 1.87. The

sensitivity index computed for the BCR was 10. Based on the economic viability criteria,

the NPW, BCR, and EIRR reflected that the project is still feasible, though the benefits

derived has been reduced by 10%.

For Case B, the project cost was increased by 10%. From the total cost of Php

5,477,697 in the base case, it increased to Php 6,025,466. Due to the increased in the total

cost, the net benefit decreased from Php 21,718,626 to Php 21,170,856. As expected, the

EIRR, NPW, and BCR of the project also decreased. The EIRR decreased from 36% in

the base case to 33%. The sensitivity index computed for the EIRR was 67.49% which

reflects the project’s sensitivity to the increase in project cost. The NPW decreased from

Php 3,805,895 to Php 3,451,719. The percentage change in the NPW was 9.31. The BCR,

on the other hand, decreased from 2.07 to 1.89. The sensitivity index computed for the

BCR was 9.09. The sensitivity indices that were computed for EIRR, NPV, and BCR of

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case B were lower compared to case A. This shows that the project can be more

susceptible to the 10% decrease in the benefits than the 10% increase in the cost. Thus,

the increase in cost by 10 % is still feasible.

For Case C, the construction of the project was subjected to a two-year delay. Due

to the delay in the completion of the project, both the project benefits and costs

decreased. The total project benefits decreased from Php 27,196,323 to Php 24,518,373

while the total cost decreased from Php 5,477,697 to Php 5,273,241. The decrease in the

project benefits and costs leads to the decrease in the net benefit from Php 21,718,626 to

Php 19,245,132. The two years delay in the construction resulted to decreases in EIRR,

NPW, and BCR values. The EIRR decreased to 26% compared to the 36% from the base

case. The sensitivity index computed for the EIRR was 73.73%, which is relatively

higher compared to the indices for case A and B. The percentage change in NPW was

38.60 decreasing from Php 3,805,895 to 2,337,004. The BCR declined to 1.75 with a

sensitivity index of 15.67. In general, the sensitivity indices computed for case C were

relatively higher than the first two cases, which show that the project is more vulnerable

to a delay in road construction than on the decrease in benefits and increase in project

cost. Nevertheless, the project is still feasible with the two years delay in construction.

For Case D, all the parameters used in the three other cases were combined. Given

this worst case scenario, the total benefit decreased to Php 22,066,536 while the total cost

increased to Php 6,744,678. Subsequently, the net benefit was down at Php 15,321,858. It

also resulted to significant decreases in the EIRR, NPW, and BCR values. The EIRR was

estimated at 18% with a sensitivity index of 81. 93%. Moreover, the computed

percentage change in NPW was 79.88%. The NPW declined to Php 765,840.55.

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Furthermore, the computed BCR also lowered to 1.18 while the computed sensitivity

index was 42.89%.

Generally, the project can be most sensitive when all the factors were combined in

case D as illustrated in Table 9. However, if the factors were treated individually, the

project is most sensitive in a two years delay of project construction. Hence, the delay in

the schedule should be the most avoided in this particular road project. Nevertheless,

decreases in benefit and increases in cost should also be monitored since it can also affect

the economic rate of return.

Table 9. Summary of Economic Sensitivity Tests


Appraisal
Item
EIRR SI NPW SI BCR SI

Base Case 36% Php3,805,895.17 2.07


A. Benefits reduced by
32% 67.85 3,071,130.33 19.31 1.87 10.00
10%
B. Project Cost increased
33% 67.49 3,451,719.85 9.31 1.89 9.09
by 10%
C. Two- years Delay in
26% 73.73 2,337,004.10 38.60 1.75 15.67
Construction
D. Combination of A, B,
18% 81.93 765,840.55 79.88 1.18 42.89
and C.

ENVIRONMENTAL IMPACTS

The peripheral environment of the Baybayog-Apanberang-Timbac farm-to-market

road was described by Mrs. Pedrina Elias, the Municipal Environment and Natural

Resource officer-in-charge, as generally agricultural lands. She said that both sides of the

road are devoted to agriculture which is planted with major crops being produced in the

locality such as cabbage, potatoes, and carrots. Furthermore, some portions especially at

the edge of the vegetable gardens were planted with cutflowers such as calla lilies and

Shasta daisies. There were limited shrubs and bushes in the area and the upper portions of

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the vegetable gardens at Apanberang were planted only during rainy season due to

insufficient water supply.

According to Mrs. Elias, waste management, water pollution, and deforestation

were the top three environmental problems in the municipality. Waste management was

due to the absence of a sanitary landfill. As a response, she said that the municipality is

presently scouting for an available lot that can be used as a sanitary land fill. On the other

hand, water pollution was brought about by the continuous use of agricultural chemicals

that flow to the water source. The local government has been promoting organic farming

in the area to minimize pesticide use. Deforestation was caused by continuous land

development for agricultural and residential use. Monitoring of the remaining shrubs and

bushes and reforestation activities were made to mitigate this problem. The above

mentioned environmental problems were not linked to previous cases of road

rehabilitation projects. In fact, most of the environmental impacts of previous road

rehabilitation projects were positive in nature.

The perceived environmental impacts of the road rehabilitation project were as

follows: it minimizes the soil flowing to the water source when the surface of the road is

cemented; it prevents soil erosion when slope protection and riprap are constructed; and it

prevents the roadbed from damages cause by the strong flow of water when road gutters

and drainage canals are constructed. There were no negative environmental impacts

mentioned by Mrs. Elias. She added that the project will in fact be beneficial. She said

that when the road will be cemented, the road will not be difficult for the vehicles plying

the route to traverse. In effect, there will be less air pollution in the area which will be

primarily caused by the decrease in the number of smoke belching vehicles.

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Environmental Quality

Majority of the respondents (32%) identified the mummies as a tourist destination

near Cattubo (Figure 27). Centuries old mummies can be found in the neighboring town

of Kabayan. The mummies showcased the history and traditions of the early inhabitants

of the town. Three other scenic spots identified by the respondents were Mt. Timbac,

Timbac Caves, and Mt. Pulag which can also be found in the Municipality of Kabayan.

Timbac caves house some of the centuries old mummies that can be found in Benguet.

Mt. Pulag was also mentioned by the respondents. It is the second highest mountain in

the Philippines, next only to Mt. Apo. The respondents as well identified their local

vegetable gardens as an emerging tourist spot. They explained that there are some tourists

that occasionally visit the vegetable terraces. There can be a potential for the local

tourism industry to develop upon the rehabilitation of the road. Four lakes, bendian

dancers, station of the cross, highest point view, and view of Benguet were also cited by

the respondents. Highest point view is located along Halsema Highway. It is the highest

point under the Philippine highway system at an elevation of 7,400 feet above sea level

(Natural Attractions handout, Atok-MENRO).

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35
32 Mummies
30 Mt. Timbak
Vegetable Terraces
25
21 21 Timbac Caves
Percentage
20 Mt. Pulag
Bendian Dancers
15
12
Four Lakes
10 Station of the Cross
4 Higest Point View
5 3
2 2
1 1 1 View of Benguet
0 None

Figure 27. Scenic Spots in Barangay Cattubo

Eighty-four percent of the respondents perceived that the project will not lead to

the degradation of the aesthetic quality of the area but otherwise there can be a possibility

for improvement (Figure 28). The respondents explained that the project is merely on

rehabilitation of the existing road and the construction will only be light. They also

agreed that the trees in the area are appropriately placed in the right buffer zones. On the

contrary, 16% of the respondents perceived that the project can degrade the aesthetic

quality of the area. The degradation of the environment can be attributed to the potential

negative effects of the construction in the plants near the road. Moreover, the respondents

mentioned that the construction may require removal of vegetation in the area.

Respondents further explained that there will be an adverse effect on the aesthetic quality

in their area if the rehabilitation will include road widening.

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16%

NEGATIVE

POSITIVE

84%

Figure 28. Perceived Impact on the Aesthetic Quality of the Area

Environmental Problems

Most of the respondents (90%) agreed that the project will not affect the air

quality in the area (Figure 29). Respondents explained that road rehabilitation can lessen

the burden to vehicles which in turn can reduce smoke emission. Other respondents

suggested that road to be rehabilitated is not a national road hence the number of vehicles

that will pass the area after the project will not significantly affect air quality. Moreover,

respondents also mentioned that after the project, the dust in the road may notably

decrease. Conversely, 10% of the respondents mentioned that the project can influence

the air quality in the area, because the construction of the road can produce more dust

which may affect the vegetable gardens nearby.

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10%

YES

NO

90%

Figure 29. Perceived Impact on Air Quality

Results showed that 78% of the respondents perceived that the project will not

cause or increase the soil erosion in the area. Respondents explained that road

rehabilitation can help make the soil more stable and prevent erosion. The respondents

assumed that the road rehabilitation will include construction of canals. They argued that

the flow of water can be facilitated through these canals and should not loosen the soil.

Other respondents cited that the terrain in the area is not steep enough for soil erosion to

be a major problem. On the other hand, 22% of the respondents perceived that the project

can cause or increase the occurrence of soil erosion in the area. The increase in soil

erosion was attributed to the possibility that the rehabilitation can loosen the soil in the

vicinity of the road. Respondents explained further that the possibility that project will

cause soil erosion primarily depends on the process of road construction. Excavation was

considered as one of the crucial component of road rehabilitation which can lead to

erosion.

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22%

INCREASE
DECREASE

78%

Figure 30. Perceived Incidence of Soil Erosion

A large number of the respondents (94%) perceived that the project will not cause

or increase flooding in the area (Figure 31). They explained that the location of the

barangay is elevated and is not prone to floods. Respondents also mentioned that flooding

depends on the climate and typhoon incidence. Moreover, the construction of canals and

drainage is essential to facilitate the flow of water upon the rehabilitation. Conversely,

6% of the respondents perceived that the project can cause flooding in the area.

Respondents explained that if the road will be cemented, the absorptive capacity of the

soil will decrease.

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6%

INCREASE
DECREASE

94%

Figure 31. Perceived Flooding Incidence

Environmental Health

Forty-six out of the fifty respondents claimed that the project will not cause any

potential health hazard to the residents of the barangay (Figure 32). Respondents

explained that the project can instead be beneficial on one’s health. Road rehabilitation

can increase the accessibility of social services such as health clinic and hospital.

Moreover, upon the rehabilitation of the road, respondents explained that their work will

be lighter, particularly in transporting their crops to the trading post. There is also a

possibility for public transportation such as jeepney and tricycle to become available if

the road will be improved. This will lessen the distance that people have to traverse. On

the other hand four respondents mentioned that the dust particles during construction may

affect the health of the people. They explained that the dust particles once inhaled can

cause lung diseases, particularly on children and elders.

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50 46
45
40
35 Inhalation of Dust

Frequency
30 Particles
25
20 None
15
10
4
5
0
Potential Health Hazard

Figure 32. Potential Health Hazards

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CONCLUSION

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The Baybayog – Apanberang – Timbac farm-to-market road is located at Sitio

Calasipan Barangay Cattubo, Atok, Benguet. This road served as a short cut way and an

alternate route for the Cattubo and the neighboring barangays.

Atok, one of the municipalities in Benguet, has a total land area of 21,912

hectares and part of it was Cattubo with a total land area of 2,414. A large portion of

Cattubo, 992 hectares, is classified and used as an agricultural land.

Cattubo used to be part of Barangay Paoay but due to Benguet Resolution No.

198 on February 29, 1972 five sitios were separated. The name Cattubo was an acronym

for its five sitios namely; Calasipan, Apanberang, Timbac, Tulodan, Botiao, and Oyusan.

Further, the barangay was covered by the HADP and later was included in CHARM 1.

In terms of the biophysical characteristics of the barangay, it is said to have three

watersheds namely: Colbong, Macbas, and Bakbeg Watershed. These were the sources of

water for the sitios in the barangay. However, Cattubo have few remaining forests due to

deforestation. Furthermore, the vegetative cover of the barangay consists of natural

growth of pine trees, shrubs, blade grass, and a variety of planted trees such as alnus; and

there were also vegetables and grasses abundant in the area. Additionally, Barangay

Cattubo was considered as upland with sloping vegetable terraces and plateau in some

sitios. Its highest point is 7,000 ft which can be found at Km. 54, which also serves as a

tourist spot. Moreover, the only soil type in the barangay is clay loam.

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Furthermore, food is sufficient enough for the residents of the barangay due to the

existence of vast agricultural land areas; where cabbage, potatoes, carrots, and the like are

being planted. Majority of the households own the land they were cultivating. The

barangay has a total of 992 hectares of land devoted to agricultural production where in

53% is irrigated while 47% is rain fed. Likewise, households from the barangay also have

poultry and livestock production which were primarily meant for personal consumption.

Their livestock and poultry products were sometimes being sold to the neighborhood and

small stores in the barangay. Nevertheless, there was no existing fish production in the

barangay though it has potential for such since there are lakes and rivers located in Sitio

Calasipan.

Since Barangay Cattubo is a farming community, there were various farming

practices being used like traditional/indigent farming practices, organic farming, and

other farming technologies which were hardly being used by the farmers. The only

farming technology being adapted by the farmers of the barangay was the use of chicken

manure as fertilizer although proper utilization of such is not being practiced.

For their farming facilities, there were 10 tramlines, 49 small farm reservoirs, 40

pump and engine sets, 14 power tillers, 3 tractors and 45 green houses. There were also

three Seed Potato Storage Houses at Tulodan that were funded by the Department of

Agriculture. Vegetable products in large volume were being sold both in La Trinidad and

Baguio Trading Posts while small quantities were being sold in Atok Public Market.

Other than farming, the residents also engage themselves in carpentry, vending, poldiya,

among others.

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Barangay Cattubo has no agri-based industries however; there were forty four

(44) different business establishments present. Unfortunately, there were no lending

institutions in Cattubo but there was an informal credit and market system in the locality

called the Supply System.

In addition, there were some potential tourist attractions in the Barangay which

were the Loacan River and the St. Teresita Mine or most commonly known as the

Quadselm located in Sitio Botiao.

Cattubo had a high literacy rate which is 99% and the barangay also have pre

schools, day care centers, and elementary schools. On the other hand, there were no high

schools and college level educational institutions in the barangay thus students have to

enroll to nearby schools to other barangays.

As for the house tenure, 99.9% of the households own their houses and their

means of transportation were thru private vehicles since there were no public utility

vehicles present in the barangay.

There were no hospitals in Barangay Cattubo but they have their own clinic which

was located at their barangay hall. In terms of electric current, more than 50% of the

residents have electricity while the others depend on using kerosene and the likes.

Likewise, there were also no available financial institutions on the barangay. The

barangay also have 21 farm-to-market roads, 4 foot bridges, and 4 irrigation systems

which were being used by the residents.

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The barangay, based on the survey conducted, had a young population which

denotes a high number of economically dependent population. Most of the households’

source of income was farming, comprising 114 household members, since the land is

suitable for agricultural purposes. Meanwhile, an average household annual income of

Php 68,465 was expected to increase upon rehabilitation of the road.

The Baybayog – Apanberang – Timbac farm-to-market road rehabilitation was

expected to be completed in one year period. This road will influence three barangays;

Pacso, Cattubo, and Natubleng. The total project cost was estimated Php. 8,360,043 for a

20 year span. The total capital investment, subdivided into direct and indirect cost,

amounted to Php 3,503,305. For the direct cost, 68.22% was allotted to total cost of

materials, 8.54% for the labor cost, and 2.06% was appropriated for equipment expenses.

Moreover, as part of the indirect cost, tax and 18% mark up had allotments of 7% and

14.19% respectively. However, there was no allotment made for

engineering/administration.

Working capital was estimated at Php. 4,858,700 during the 20-year project span.

The total maintenance cost, allocations of 25% for labor, 23% for equipment, 41% for

supplies, and 11% for management and supervision were assumed.

To determine the passenger and freight benefits, VOCs was used. Freight benefits

were based from the major crops being planted while the passenger benefits were based

from the number of household travels per month and the total household population in the

three directly influenced areas. Freight benefits yielded a total of Php 1,239,339 whereas

the passenger benefits were estimated at Php. 113, 022 on the initial year. Conversion of

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financial prices to economic prices, were undertaken by using standard conversion

factors.

A financial net present value of Php 3,129,865 was estimated for the project while

economic net present value derived was Php3,805,895. In addition, the base BCR

computed for both financial (1.72) and economic (2.07) aspects were greater than one.

The base FIRR of 32% and an EIRR of 36% were computed. These results were higher

than the accepted IRR which was 15%. The results of the NPV, BCR, and IRR implied

that the project was feasible and worthwhile to undertake.

Moreover, the project was exposed to four different cases where in variables from

the base case such as benefits, costs, and time were modified. When the total benefit was

reduced by 10%, lower FIRR, NPV, and BCR were computed. Same was true when the

cost was increased by 10%. Even in cases where there was a two year delay in

construction and the combination of all cases, the result of FIRR, NPV, and BCR were

lower than the base case.

Although all the FIRR of the four cases were lower than the base case, the results

were still greater than 15% thus the project would still be feasible. Likewise, all the NPV

results yielded positive values and the BCR were all greater than one; hence the project

would still be worthwhile to undertake.

To convert financial prices to economic prices, standard conversion factors were

used. The EIRR, NPW, and BCR results were smaller compared to the base case. EIRR

computed for all cases were higher than the acceptable 15% and all the NPW gained were

positive. Likewise, the economic BCR computed for all four cases were greater than one;

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thus the project would still be feasible if such cases would occur. Nevertheless, the results

obtained on the economic indicators were higher than the financial indicators.

A sensitivity index was computed to measure the effect of such changes in

variables. A high value of SI implies that the project would be more sensitive to changes

in such variable. In this regard, the project was less sensitive to increase in project cost by

10% while it was highly sensitive to the combination of all cases. This means that the

project should avoid the combination of reduction in benefits, increase in cost, and two-

year delay in construction than all other cases.

In terms of social benefits, results showed that the road rehabilitation project

would be beneficial for the households of the influenced areas. All the respondents

agreed that the rehabilitation of the road will lead to a reduction of travel time, thus the

respondents were expected to increase frequency of their travel. This was also supported

by the results on the comparison of the average travel time with and without the project.

There was a significant decrease in the average travel time for all social services being

accessed by the respondents.

The road rehabilitation project was expected to bring increase in the number/type

of vehicles that would pass through. It was also noted that there were more respondents

who said that road rehabilitation would not cause heavy traffic. In addition, the

respondents believed that the rehabilitation will not result to an increase in traffic related

accidents instead; an improved road will be less prone to accidents.

The road rehabilitation would also impact the type of work and income in the

area. The respondents perceived that improvement of the road would increase their

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income, provide more job opportunities, decrease in maintenance cost, decrease in

transportation cost, increase in number of crops transported, and increase travel

frequency of crops. However, there were few who believed that the road rehabilitation

would not have any impact at all and it would not bring change in income.

Moreover, a large portion of the respondents believed that the rehabilitation of the

road will influence their social patterns since there would be an increase in the number of

vehicles passing the road, thus increase their travel frequency and be able to do more

activities. Exposure to new technologies will also be an impact of the road rehabilitation

that said to cause change in the respondents’ social activity patterns. Also, based on the

survey conducted, half of the respondents believed that the project will cause sub-cultural

variation while the other half believed otherwise. On the other hand, most of the

respondents perceived that there will be no impacts on their present ethnicity.

Additionally, the respondents agreed that there will be more leisure and cultural

opportunities upon rehabilitation of the road.

The road will also provide ease of access to social services like schools and places

of work. A comparison of the means of transportation with and without the project was

made and a significant increase in the frequency of jeepney usage while a decrease in

walking was noted. There was also a significant increase in privately owned vehicles due

to rehabilitation of the road.

Aside from ease of access to social facilities, the respondents perceived other

social benefits like business opportunities, lighter workload for farmers, safety,

modernization/access to technology, easy implementation of laws, health benefits,

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page 102
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BARANGAY CATTUBO, ATOK, BENGUET

probable existence of PUVs, decrease vehicle damage, increase quality of life, improve

communication, and electricity supply.

For the impacts of the road rehabilitation to the environmental quality of the

influenced areas, most of the respondents believed that such will not cause degradation of

the aesthetic quality of the area but will further cause improvement. Most of them also

agreed that the project will not degrade the air quality nor increase soil erosion; thus most

of them believed that the rehabilitation pose no threat to their health. Furthermore, the

household respondents believed that that the rehabilitation of the road will not cause and

lessen incidence of flooding. Lastly, the project may also be a good way to promote

tourism in the influenced areas based on the results.

Generally, the project is worthwhile to undertake since the financial and economic

computation of the costs and benefits resulted to positive outcomes. Based from the

computations, the project is feasible and worthwhile to undertake. The respondents also

perceived greater benefits if the road will be rehabilitated. It will bring more social

benefits than harm. More so, there were more perceived positive impacts to the

environment when the project is pursued. A positive feedback of the road project from its

beneficiaries would also be a good indicator to pursue the project.

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page 103
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BARANGAY CATTUBO, ATOK, BENGUET

RECOMMENDATIONS

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BARANGAY CATTUBO, ATOK, BENGUET

The study on the proposed rehabilitation of the Baybayog-Apanberang-Timbac

farm-to-market road has identified both positive and negative impacts of the project. To

ensure the positive impacts and to mitigate the negative impacts, the project

administrators have to consider several factors in order to guarantee its success. The

researchers have grouped the recommendations into two major parts- from the

respondents and from the researchers. Recommendations coming from the researchers

were also subdivided into three parts- social, financial and economic, and environmental.

RECOMMENDATIONS FROM THE RESPONDENTS

SUGGESTIONS

Based on the study, respondents suggested that the road project should be of good

quality to maximize the benefits. They explained that Class A materials should be used in

the construction. Respondents also suggested that the participation of local residents can

maximize the benefits from the project. They explained that it is important for local

residents to partake in the road rehabilitation. Informing the people about the details of

the project can lead to their active participation. Moreover, details of the schedule of the

project should be conveyed to the people since they will be affected, particularly during

the construction. Likewise, respondents perceived that employing the local workers can

maximize the benefits. This can provide additional income for the local residents, though

the employment will be for a short period of time. Selecting the contractor is also crucial

to maximize the benefits. The respondents also explained that the contractor should be

knowledgeable about the project. The bidding for the contractor should be transparent

among the local residents. They also suggested concreting of the road will most likely

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BARANGAY CATTUBO, ATOK, BENGUET

increase the benefit of the project. They perceived that concreting the road will

significantly reduce the burden of travelling, in particular during transportation of crops.

Following the standards of road rehabilitation and following the project plan were also

suggested by the respondents while explained that the standards set by the government

should be strictly followed by the contractor to ensure the quality of road. In addition,

household respondents recommended that the schedule of the construction as indicated in

the project plan should be strictly followed. Delay in the construction of the road can

affect the benefits of the project. More so, the delay can also be a hindrance in the

transportation of crops. Respondents also suggested that producing more harvests and

ensuring that farm to market road funds will be used exclusively for the project can

maximize the benefits of the project.

Majority of the respondents also suggested that proper maintenance of the road

can reduce the possible negative impacts of the project. Respondents explained that

proper maintenance is essential upon the rehabilitation to sustain the condition of the

road. Through proper road maintenance, the deterioration of the road due to the damage

caused by vehicles and other emerging environmental factors can be addressed. On the

other hand, construction of canal and drainage beside the road was suggested by the

respondents. Canal and drainage can facilitate the flow of water and prevent the possible

run-off of water particularly during rainy season. Riprap was also suggested by some.

Ripraps are being used to prevent soil erosion and slides in the area. Installation of road

signs was also suggested to prevent possible road accidents in the area. They explained

that installation of road signs is necessary since the road has many curves. Likewise,

respondents even suggested the installation of streetlights aside from the road signs, to

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BARANGAY CATTUBO, ATOK, BENGUET

avoid accidents at night. Road expansion was also mentioned to reduce the accident in

the area. The respondents explained further that the road is accident prone because it is

narrow and one-way. Conversely, respondents suggested tree planting and active

campaign against illegal logging. The vegetation that can be affected by the road

rehabilitation should be replaced through tree planting as explained by the respondents, to

mitigate the possible effect on the environment. Moreover, respondents suggested the

installation of box culvert and fencing.

Furthermore, in order to maximize the benefits of the project, it was suggested

that the issues in political boundaries be settled among the municipalities. This is needed

to clarify the scope of the project and the immediate local government that will be

responsible for co-funding of the project.

RECOMMENDATIONS FROM THE RESEARCHERS

SOCIAL

The assessment on the perceived social impacts of the road rehabilitation has

recognized various social benefits of the project such as accessibility to social services,

decrease in travel time, higher income for the people and preservation of their culture.

For the implementers

The implementers of the project, specifically the Barangay Unit, should organize

and inform their people about the road project. Cultural programs should be promoted in

the barangay not only as a tourist attraction but also as a way to develop their culture. In

terms of maximizing the benefit on the accessibility to different social services, the

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BARANGAY CATTUBO, ATOK, BENGUET

implementers should provide and maintain well-built fences, road signs and other safety

tools to make sure that the residents and the users of the road will be secured.

For the beneficiaries

The beneficiaries of the project are recommended to maintain and preserve their

ethnicity by showcasing their culture to the tourists. The time saved from transporting

their crops can be utilized in other social events or other income generating activities.

More so, the people should help in monitoring and maintenance of the road to ensure its

safety.

FINANCIAL AND ECONOMIC

The financial and economic aspects are critical in the execution of the road

project. These aspects are the deciding factors whether the project will push through or

not.

For the implementers

On-time provision of budget should be ensured by the implementers to avoid

project delays. The items and percentage allocation of the allotted project fund for the

road rehabilitation must be strictly followed and properly utilized to avoid unwanted

expenses and investment losses. During the construction phase, it is suggested that the

implementers employ local residents in the area. The local government should create

complementing projects vis-à-vis the road rehabilitation to increase the income of the

farmers and to maximize other potential benefits. An irrigation project is advised since

most of the farmers have only one cropping season. This will eventually reflect on the

local economy of the region.

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BARANGAY CATTUBO, ATOK, BENGUET

For the beneficiaries

Most of the beneficiaries of the project are farmers since the project is on the

rehabilitation of a farm-to-market road. It is recommended that the farmers should

attempt to increase their volumes of production, the kind of crops that they produce and

market to increase their income.

ENVIRONMENTAL

The environmental impact assessment of the road rehabilitation identifies the

perceived environmental effects of the project which are either positive or negative

depending on how the rehabilitation will be implemented and on how the road will be

maintained. Although, most of the perceived environmental effects are positive in nature,

recommendations are still added to enhance the success of the project.

For the implementers

First and foremost, the implementers should strictly comply with the standards set

by the DPWH and DENR regarding road rehabilitation. Canals, riprap, box culvert, road

signs, streetlights and other protective paraphernalia should be created immediately after

the rehabilitation. The tourist spots and the remaining forestlands should be preserved by

the concerning agencies as it is vital in improving the local tourism and the aesthetic

quality of the road’s peripheral environment. Funds for the maintenance of the road

should be provided so that the unperceived negative impacts on the environment can be

instantaneously mitigated.

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page 109
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BARANGAY CATTUBO, ATOK, BENGUET

For the beneficiaries

The residents should be the main actors in maintaining the road and their

environment since they are the most affected people on whatever they do on their

surroundings. In case environmental problems arise in the area, the people should report

these observed conditions to the barangay or any concerning agencies so that it can be

monitored and/or prevented immediately.

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page 110
SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

REFERENCES

Asian Development Bank. 2006. Handbook for the Economic Analysis of Water Supply
Projects. pp. 140-142 and 133-135.

Asian Development Bank. 1994. Project Completion Report of the Highland Agriculture
Development Project. Pp. 15-16

Asian Development Bank. 2006. Completion Report, Philippines: Cordillera Highland


Agricultural Management Project. Pp. 9-11

Barangay Natural Resource Management Plan. 2000-2006. Barangay Natubleng,


Buguias, Benguet.

Barangay Profile of Natubleng Executive Summary.2011. Barangay Natubleng, Buguias,


Benguet.

Benguet Socio- Economic Profile. 2007. Province of Benguet

Clark, Robert Francis. 2005. Victory Deferred: The war on Global Poverty. University
Press America; Maryland. P. 183

Comprehensive Land Use Plan. 2001-2011. Municipality of Atok.

Draft Barangay Cattubo Profile.2010. Cattubo, Atok, Benguet

Draft Participatory Project Investment Plan. 2011-2015. Barangay Pacso, Kabayan,


Benguet.

Golder, B. and M. Gawler, 2000. Cross-Cutting Tool Stakeholder Analysis. ARTEMIS


Services.WWF.

Individual Project Program of Work. 2011. Office of the Municipal Engineer. Atok,
Benguet.

International Fund for Agricultural Development. 2007. Cordillera Highland Agricultural


Management Project Completion Evaluation. Pp. 27-30

Investopedia. 2010. Net Present Value. Retrieved at http://www.investopedia.com

National Economic and Development Authority. 2008. NEDA Development Advocacy


Fact Sheet (Vol XII No.7). p.1

Net Present Worth.2010. Retrieved at http://coen.boisestate.edu/mkhanal/net.htm


Retrieved from https://intranet.panda.org/documents/folder.cfm?uFolderID=6097
Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page 111
SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

Pakpakan-Taliboy-Oc-Lamut Farm-to-Market Road Feasibility Study. 2000. Benguet


Province.

Participatory Project Investment Plan. 2011-2015. Barangay Cattubo, Atok, Benguet.

Project Proposals.2010. Province of Benguet.

Teddlie, Charles and Fen Yu. 2007. Mixed Methods Sampling. Louisiana State
University, Baton Rouge. Pp. 12-13

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page 112
SOCIO-ECONOMIC, FINANCIAL AND ENVIRONMENTAL ASSESSMENT OF THE
2011 REHABILITATION OF BAYBAYOG-APANBERANG-TIMBAC FARM-TO-MARKET ROAD IN
BARANGAY CATTUBO, ATOK, BENGUET

APPENDICES

Erro, M.E.G; Lumbres, A.G.B.; Sadili, D.R.A; Sale, E.K.A. Page 113
APPENDIX A

Table 10. Gantt Chart Of The Socio-Economic, Financial, And Environmental Assessment Of The Rehabilitation Of Baybayog-Apanberang-Timbac Farm-To-Market Road In
Barangay Cattubo, Atok, Benguet.

November December January February March


Activities Involved Group Output

4th

2nd

4th

2nd

2nd

4th
3rd

3rd

3rd

3rd

3rd
4th

1st
2nd

1st

1st

4th
1st
1. Administrative Arrangements
Practicum Team Memorandum of
Meeting with the Project Manager
CHARM Understanding

Initial Secondary Data Acquisition Practicum Team Secondary Data


CHARM

2. Preparation and Finalization of


Practicum Team Technical Proposal
Technical Proposal

Knowledge and
LGU, CHARM,
Skills in Data
3. Conduct of Leveling-off Training Practicum Team
Analysis

Practicum Team Questionnaires


4. Reproduction of Survey instrument
Practicum Team, Primary Data,
5. Data Gathering
Stakeholders Secondary Data

6. Analysis of Data Practicum Team Information

Draft Technical
Practicum Team
7. 1st Draft Technical Paper Paper
Activities Involved Group November December January February March Expected Output

2nd

2nd

2nd

2nd
3rd

3rd

3rd

3rd
4th

4th

4th
1st

1st

1st

1st
3rd
4th

4th
CHARM,
Practicum Team, Final Draft
8. Presentation of draft
Stakeholders

Practicum Team Technical Report


9. Submission of final draft
Practicum Team,
10. Presentation of Final Report to Technical Report
DCERP DCERP Faculty

Team and
Practicum Team
11. Production of Final Report Technical Report

Team and
Practicum Team
12. Distribution of Final Report Technical Report
APPENDIX B

Socio-Economic, Financial, and Environmental Assessment of Rehabilitation of


Baybayog-Apanberang-Timbac Farm-to-Market Road at Cattubo, Atok, Benguet

Key Informant Profile

Name:

Last: First: Middle:

Address:

No. of Street: Village/Subdivision: Barangay: Town/City: Province:

Sex: Age: Civil Status: Educational Attainment:

Sources of Income: Religion: Language: Years of Residency: Monthly Income:

(FOR MAO)

1. What are top three problems related to agriculture in your municipality?


a.
b.
c.
2. What do you think are the reasons for the occurrence of these problems?
________________________________________________________________________
________________________________________________________________________
3. How do you address these problems?
________________________________________________________________________
________________________________________________________________________
4. Are there any previously rehabilitated farm-to-market roads in your municipality? What
do you think are the benefits of the said project in terms of agricultural production?
________________________________________________________________________
________________________________________________________________________
5. Do you think that the rehabilitation project of Baybayog-Apanberang-Timbac Farm-to-
Market Road will be beneficial for the farmers? If so, what are the possible benefits?
________________________________________________________________________
________________________________________________________________________
(FOR Municipal Engineer/Provincial Engineer)

1. How will you describe the current situation of the Baybayog-Apanberang-Timbac Farm-
to-Market Road?
________________________________________________________________________
________________________________________________________________________
2. Are there any previously rehabilitated farm-to-market roads in your
municipality?__________________
a. What do you think are the benefits of the said project?
________________________________________________________________
________________________________________________________________
b. What are the problems encountered?
________________________________________________________________
________________________________________________________________
3. What do you think will be the benefits of the rehabilitation project of Baybayog-
Apanberang-Timbac Farm-to-Market Road for the people in your municipality?
________________________________________________________________________
________________________________________________________________________

(FOR M/PENRO)

1. How will you describe the current situation of Baybayog-Apanberang-Timbac Farm-to-


Market peripheral environment?
________________________________________________________________________
________________________________________________________________________
2. What do you think are the top three environmental problems in your municipality?
a.
b.
c.
3. How do you address these problems?
________________________________________________________________________
________________________________________________________________________
4. Are there any previously rehabilitated farm-to-market roads in your
municipality?__________________
a. What do you think are the impacts of the said project in the environment?
________________________________________________________________
________________________________________________________________
b. If there are negative impacts, what measures were taken to minimize its effect?
________________________________________________________________
________________________________________________________________
5. Do you think that the rehabilitation project of Baybayog-Apanberang-Timbac Farm-to-
Market Road will be beneficial for the environment? If so, what are the possible benefits?
If not, why?
________________________________________________________________________
________________________________________________________________________
(FOR M/PSWD)

1. What are the social services offered in your municipality?


________________________________________________________________________
________________________________________________________________________

2. What are the most common services utilized by the residents?


________________________________________________________________________
_____________________________________________________________________
Why do you think so?
________________________________________________________________________
________________________________________________________________________

3. How many residents accessed the social services?


________________________________________________________________________
_____________________________________________________________________

4. Are there any existing issues regarding accessibility of social services? Please enumerate.
________________________________________________________________________
________________________________________________________________________

5. How will you resolve the issues?


________________________________________________________________________
_____________________________________________________________________

6. What way/s will help you improve those services?


________________________________________________________________________
_____________________________________________________________________

7. What do you think will be the impact/s of road rehabilitation in the accessibility of social
services? Why?
________________________________________________________________________
________________________________________________________________________

(FOR DPWH)

1. What is the standard cost of a road rehabilitation project per kilometer?

________________________________________________________________________
________________________________________________________________________

2. How much of the budget is allotted for labor cost (skilled and unskilled), equipments,
supplies, management and supervision, maintenance, and other cost?

________________________________________________________________________
________________________________________________________________________

3. What/ who is/are the source of budget for road rehabilitation?

________________________________________________________________________
________________________________________________________________________
4. How much is the average budget of DPWH for road rehabilitation per year?

________________________________________________________________________
________________________________________________________________________

5. What are the criteria used to determine if a road needs rehabilitation?

________________________________________________________________________
________________________________________________________________________

6. What are the standards used for road rehabilitation?

________________________________________________________________________
________________________________________________________________________

7. What are the common problems encountered in road rehabilitation? What are the
mitigating measures used to avoid such problems?

________________________________________________________________________
________________________________________________________________________
APPENDIX C

SOCIO- ECONOMIC AND ENVIRONMENTAL IMPACTS SURVEY FORM

SOCIO-ECONOMIC, FINANCIAL, AND ENVIRONMENTAL ASSESSMENT


OF THE PROPOSED FARM-TO-MARKET ROAD PROJECT IN BARANGAY CATTUBO, ATOK, BENGUET
INFRASTRUCTURE COMPONENT
CHARM 2 PROJECT

University of the Philippines Los Baños


College of Human Ecology
Department of Community and Environmental Resource Planning
In cooperation with the
Cordillera Highland Agricultural Resource Management Project 2
And
The Provincial Government of Benguet and Municipal Government of Atok.
Questionnaire No.____
Socio-Economic and Environmental Impacts Survey Form

A. Demographic Profile

1. Respondent Profile

Name:

Address:

No. of Street: Village/Subdivision: Barangay: Town/City: Province:

Sex: Age: Civil Status: Educational Attainment:

Occupation: Household Size: Monthly Income: Number of Dependents:

2. Profile of Household Members

NAME RELATIONSHIP SEX AGE C/S EDUCATIONAL SOURCE OF ANNUAL RELIGION LANGUAGE
TO THE ATTAINMENT INCOME INCOME
RESPONDENT
B. Passenger-Related Information

1. Places Visited and Frequency of Visit


SCHOOL MARKET CHURCH HOSPITAL PLACE OF WORK OTHERS
NAME (Please Specify)
PV* FV/mo** PV* FV/mo** PV* FV/mo** PV* FV/mo** PV* FV/mo** PV* FV/mo**

*Places Visited **Frequency of visit per month

2. Distance to Social Facilities

TRAVEL TIME MEANS OF TRANSPORTATION


SOCIAL FACILITIES APPROXIMATE DISTANCE (KM) Without the With the Road Without the With the Road
Project Project Project Project
School
Market
Church

Hospital
Place of Work
Others (Please Specify)
C. Freight-Related Information

1. Do you have a farm?


( ) Yes ( ) No
If yes, answer the table below.
If no, proceed to part D.

TYPE OF CROP AREA OF LAND PLANTED VOLUME OF YIELD PER PERCENT MARKETED FREQUENCY OF TRAVEL
PER YEAR (HAS) YEAR WHEN SELLING HARVEST PER
YEAR

2. Where is the location of your farm? ____________________________________________________________________________________


(If the same as home address, proceed to question 3)

i. How far is your farm to the market (in km)? _______________________________________________________________________


ii. How long does it take you to bring your crops from your farm to the market (hrs)? ________________________________________

3. What means of transportation do you use to transport your crops? (Please Check)
( ) Tricycle ( ) Jeepney ( ) Truck ( ) Others, Please Specify ______________
4. What problems related to transportation of crops do you encounter?
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________

5. What suggestions can you give in order to solve such problems?


__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________

D. Socio-Cultural Impact Information

a. Will there be a decrease in the travel distance or time from the place of origin to the place of destination?
( ) Yes ( ) No
Explain your answer:
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________

b. What is/are the effect(s) of the road rehabilitation on the traffic volume or pattern in the influenced area?
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________

c. Will there be sub-cultural variation once road rehabilitation is completed in the affected area?
( ) Yes ( ) No
Explain your answer:
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________

d. What is/are the impact(s) of the road rehabilitation project on the present ethnicity in the affected area?
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________
e. What is/are the impact(s) of the road rehabilitation project on the type of work and income of the residents?
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________

f. Will the proposed road rehabilitation influence the social patterns or daily activity patterns in the affected area?
( ) Yes ( ) No

Explain your answer:


______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________

g. Will the proposed road rehabilitation create leisure and cultural opportunities for the people living in the area?
( ) Yes ( ) No

Explain your answer:


______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________

h. What are the other possible social benefits when road is rehabilitated?
______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________

E. Environmental (Public Health and Safety) Impacts Information

a. What are the scenic spots near the rehabilitated road of Cattubo? Please enumerate.
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
b. How will you describe the current situation of your environment?
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________

c. What are the potential health hazards of the road rehabilitation on the construction workers and the nearby residents during the project’s
construction phase?
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________

d. Will the road rehabilitation create increase traffic accident rate in the affected area?
( ) Yes ( ) No

Explain your answer:


_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________

e. Will the road rehabilitation influence air quality in the area?


( ) Yes ( ) No

Explain your answer:


_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________

f. Will the rehabilitated road degrade the aesthetic quality of the area?
( ) Yes ( ) No

Explain your answer:


_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________
g. Will the rehabilitation of road cause/increase incidence of soil erosion in the area?
( ) Yes ( ) No
Explain your answer:
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________

h. Will the rehabilitation of road cause/increase incidence of flooding in the area?


( ) Yes ( ) No
Explain your answer:
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________

F. Enumerate measures to maximize benefits and mitigate negative impacts of the project

a. Maximize benefits:
_____________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________

a. Minimize negative impacts:


_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
~THANK YOU! ~

Name of Interviewer: Date of interview:


Signature:
Name of encoder: Date encoded:
Second Cordillera Highland Agricultural Resource Management Project
Socio-Economic, Financial, and Environmental Assessment
of FMR Rehabilitation Project in Barangay Cattubo, Atok, Benguet

PROJECT INFORMATION SHEET 1


(LGU PROFILE)
A. Demographic Profile

Local Government Unit (LGU) Profile Provincial Municipality Barangay


A. Demographic Profile
i. Population size
ii. Population Density
iii. Average HH Size
iv. Number of HH
v. Labor Force and Employment
vi. Average Income per HH per Month

B. Socio-Economic Profile

Data Provincial Municipality Barangay


1. Agriculture
Production per year
Area Planted
Average Farm Size
2. Employment
Number of Under-employed
Number of Unemployed
Number of Employed:
a. Agriculture
b. Commerce
c. Industrial
d. Construction
e. Others
3. Wage Rate
a. Agriculture
i. Skilled
ii. Unskilled
b. Construction
i. Skilled
ii. Unskilled
4. Source of Income
5. Education
6. Literacy Rate
7. Illiteracy Rate
8. Out-of-School Youth (School-Age)
C. Physical Infrastructure

Data Provincial Municipality Barangay

1. Social infrastructures

a. Number of schools

b. Government/religious Group Facilities

c. Health Centers, Hospitals and Clinics

d. Other, specify
2. Road Infrastructures

a. Roads and bridges

b. Footpaths and foot bridges

D. Land Area

Data Provincial Municipality Barangay


Land Classification

a. Agricultural
b. Vegetation
c. Residential
d. Commercial
e. Industrial
f. Forestry
g. Others
Total land area

E. Maps

1. Road systems Map


2. Land use Map
3. Resource Map
4. Topographic Map
5. Location Map
PROJECT INFORMATION SHEET 2

(ROAD PROJECT PROFILE)

A. Location of the Road Project: __________________________________________________


Barangay Municipality

B. Duration of Road Construction: _________________________________

C. Length of Road Project (km): ___________________________________

D. Influence Area:
a. Immediate Barangays (Please enumerate): ____________________________

b. Neighboring Barangays (Please enumerate):___________________________

Data Values
Agricultural Area (ha)
Distance from the market of agricultural products (km)
Population/Household
1. Immediate Barangay
a. Actual Population
b. No. of Households
c. Average No. of Trips / Household / month
2. Neighboring Barangay
a. No. of Barangays
b. Actual Population per Barangay
c. No. of Households per Barangay
d. Average No. of Trips / Household / month

E. Type of Crops Harvested, Yields and Volume marketed

Area Harvested/Planted per Total Harvest/ Year


Type of Crops Percent Marketed
Year (tons)
Cabbage
Potato
Carrots
Wongbok
Others

F. Detailed Cost Per Km of Road Rehabilitation (attach copy of specific items and prices)

G. Cost of Road Construction


FINANCIAL COST OF THE ROAD REHABILITATION PROJECT
Capital Investment Working Capital
(Percent Allocation from the
(Percent Allocation from the Total Total Cost)
Cost)

TOTAL COST

1. Labor Cost

a. Unskilled

b. Skilled

2. Cost of Materials

a. Equipment

b. Supplies

c. Others

3. Management and Supervision

4. Other Cost

*REPLACEMENT COST (if any):

H. Utility Vehicles Operators

BARANGAY
UTILITY VEHICLES OPERATORS MUNICIPALITY

a. Number of Truck Operators:

b. Number of Jeepney Operators:

c. Number of Tricycle Operators:


d. Others (Please specify):
I. Vehicle Operating Costs for Freight (Php/ton-km) (Benguet province)**

KIND OF ROAD
CURRENT
TYPE OF VEHICLE PERCENT
All-weather All-weather
UTILITIZATION
Rehabilitated (Php) Unrehabilitated (Php)

1. Truck

2. Jeepney

3. Tricycle

4. Others
(Please specify):

J. Vehicle Operating Costs for Passenger (Php/passenger-km) (Benguet province)**

KIND OF ROAD
CURRENT
TYPE OF VEHICLE PERCENT
All-weather All-weather
UTILITIZATION
Rehabilitated (Php) Unrehabilitated (Php)

1. Truck

2. Jeepney

3. Tricycle

4. Others
(Please specify):

** May be obtained from DPWH

K. Travel Time from Farm to Market:


a. With the Road Project: _______________
b. Without the Road Project:_____________

L. Existing Farm-to-Market Road Network

Name of Roads Type of Roads Length of Road (km)

M. Other Information
a. Official Exchange Rate: _______________________________
b. Shadow Exchange Rate: _______________________________
APPENDIX E

Budget Plan

No. of Units
Budget Allocation Price per Unit (Php) Amount for 8 Weeks
Needed

Office Supplies

Bond Paper 5 rims 200 1000

Pentel Pen 10 25 250

Tape 50

Others 200

Total Amount 1500

Personal / Professional Cost

Food 4 persons 150 per day 33,600

Lodging 2 months 6,000 12,000

Personal Allowance 4 persons 1000 per week 32,000

Total Amount 77,600

Others

Transportation:

Los Baños - Baguio 4 persons 500 4,000

Baguio - Los Baños 4 persons 500 4,000

Photocopying Materials 50 0.5 25

Contingency Fund 4 persons 2,000 2,000

Total Amount 10,025

Grand Total 89,125


APPENDIX F

Financial Computations
Table 11. Financial Cost- Capital Investment for Baybayog-Apanberang-Timbac Farm-to-Market Road Project (in Php)

CAPITAL INVESTMENT

DIRECT COST INDIRECT COST

Year TOTAL
Labor Cost Cost of Materials Management TOTAL MARK-UPS TOTAL TOTAL CAPITAL
and DIRECT MARK- INDIRECT INVESTMENT
VAT
Skilled Unskilled Equipment Supplies Other Supervision COST OCM PROFIT MOB/DEMOB UP COST

2011 61,274.50 237,625.50 72,100.00 2,387,700.00 - - 2,758,700.00 228,459.00 248,325.00 20,859.30 497,643.30 245,000.00 742,643.30 3,501,343.30
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
TOTAL 3,501,343.30
Table 12. Financial Cost- Working Capital for Baybayog-Apanberang-Timbac Farm-to-Market Road Project (in Php)
WORKING CAPITAL ( MOOE )

Year Mgt and


Labor Cost Cost of Materials Other Cost DEPRECIATION TOTAL MOOE
Supervision
Skilled Unskilled Equipment Supplies Other
2011 - - - - - - - -
2012 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2013 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2014 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2015 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2016 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2017 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2018 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2019 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2020 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2021 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2022 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2023 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2024 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2025 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2026 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2027 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2028 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2029 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2030 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
2031 8,400.00 17,850.00 24,150.00 43,050.00 11,550.00 137,935.00 242,935.00
TOTAL 4,858,700.00
Table 13. Financial Cost for Baybayog-Apanberang-Timbac Farm-to-Market Road Project (in Php)
Year CAPITAL INVESTMENT WORKING CAPITAL ( MOOE ) Replacement Cost TOTAL COST

2011 3,501,343.30 - - 3,501,343.30


2012 242,935.00 242,935.00
2013 242,935.00 242,935.00
2014 242,935.00 242,935.00
2015 242,935.00 242,935.00
2016 242,935.00 242,935.00
2017 242,935.00 242,935.00
2018 242,935.00 242,935.00
2019 242,935.00 242,935.00
2020 242,935.00 242,935.00
2021 242,935.00 242,935.00
2022 242,935.00 242,935.00
2023 242,935.00 242,935.00
2024 242,935.00 242,935.00
2025 242,935.00 242,935.00
2026 242,935.00 242,935.00
2027 242,935.00 242,935.00
2028 242,935.00 242,935.00
2029 242,935.00 242,935.00
2030 242,935.00 242,935.00
2031 242,935.00 242,935.00
TOTAL 3, 501, 343.30 4, 858, 700.00 0 8, 360, 043. 30
Table 14. Basic Parameters in Deriving Incremental Financial Benefits from Farm to Market Roads Project
WITHOUT THE PROJECT WITH THE PROJECT
ITEM VOC SAVINGS
Percent VOC/Ton/km Percent VOC/Ton/km

(i) Freight

Jeepney 70 22.51* 30 6.753*


Truck 30 12* 70 3.6*
VOC (Weighted Average) 9.68 2.27 7.41

(ii) Passenger

Jeepney 70 2.7* 30 0.81*


Truck 30 1.44* 70 0.43*
VOC (Weighted Average) 0.77 0.18 0.59
* Data obtained from DPWH-CAR , 2009
Table 15. Incremental Freight Financial Benefits from VOCs for Farm to Market Road
ITEM Radish Cabbage Potato
(A) Freight Benefits Cattubo Natubleng Pacso Cattubo Natubleng Pacso Cattubo Natubleng Pacso
Freight Details
(i) Average Yield per hectare 20.00 7.61 5.00 20.00 13.31 22.53 13.00 6.49 16.00
(ii) Total influence area (has) 593.98 2.50 1.00 593.98 410.00 110.00 593.98 475.00 50.00
(iii) Annual Aggregate Production (tons) (i)x(ii) 11879.60 19.03 5.00 11879.60 5457.10 2478.30 7721.74 3082.75 800.00
(iv) Percent Marketed 0.95 0.94 1.00 0.95 0.99 0.99 0.95 0.98 1.00
(v) Equivalent Volume Transported (tons)
11285.62 17.88 5.00 11285.62 5402.53 2453.52 7335.65 3021.10 800.00
(iii)x(iv)
(vi) VOC Savings for freight (Php/ton-km) 7.41 7.41 7.41 7.41 7.41 7.41 7.41 7.41 7.41
(vii) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL FREIGHT BENEFITS 292692.55 463.81 129.68 292692.55 140114.59 63631.96 190250.16 78352.10 20748.00
ITEM Carrots Others TOTAL
(A) Freight Benefits Cattubo Natubleng Pacso Cattubo Natubleng Pacso
Freight Details
(i) Average Yield per hectare 18.00 6.40 11.07 22.88 13.00 9.40
(ii) Total influence area (has) 68.00 250.00 55.00 49.83 10.75 185.73
(iii) Annual Aggregate Production (tons) (i)x(ii) 1224.00 1600.00 608.85 1140.11 139.75 1745.86
(iv) Percent Marketed 0.93 1.00 0.98 0.92 0.98 0.95
(v) Equivalent Volume Transported (tons)
1138.32 1600.00 596.67 1048.90 136.96 1658.57
(iii)x(iv)
(vi) VOC Savings for freight (Php/ton-km) 7.41 7.41 7.41 7.41 7.41 7.41
(vii) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL FREIGHT BENEFITS 29522.33 41496.00 15474.71 27203.26 3511.93 43014.98 Php. 1239338.62
Table 16. Incremental Passenger Financial Benefits from VOCs for Farm to Market Road –Cattubo (in Php)
CATTUBO
Passenger Details Base Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
(i) Average Frequency of travels per mo per HH 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
(ii) Average Travel per year per HH (i)x12 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00
(iii)Total number of HH beneficiaries 227.00 286.39 291.20 296.09 301.06 306.12 311.26 316.49 321.81 327.22 332.71
(iv) Aggregate number of Passengers (ii)x(iii) 19068.00 24056.37 24460.52 24871.46 25289.30 25714.16 26146.15 26585.41 27032.04 27486.18 27947.95
(v) VOC Savings for Passenger 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 39375.42 49676.41 50510.97 51359.56 52222.40 53099.73 53991.81 54898.87 55821.17 56758.97 57712.52

Passenger Details Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TOTAL
(i) Average Frequency of travels per mo per HH 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
(ii) Average Travel per year per HH (i)x12 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00
(iii)Total number of HH beneficiaries 338.30 343.99 349.77 355.64 361.62 367.69 373.87 380.15 386.54 393.03
(iv) Aggregate number of Passengers (ii)x(iii) 28417.48 28894.89 29380.32 29873.91 30375.80 30886.11 31405.00 31932.60 32469.07 33014.55
(v) VOC Savings for Passenger 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 58682.09 59667.95 60670.37 61689.63 62726.02 63779.81 64851.32 65940.82 67048.62 68175.04 1169284.06
Table 17. Incremental Passenger Financial Benefits from VOCs for Farm to Market Road- Natubleng (in Php)
NATUBLENG
Passenger Details Base Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
(i) Average Frequency of travels per mo per HH 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Average Travel per year per HH (i)x12 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00
(iii)Total number of HH beneficiaries 182.00 188.17 191.33 194.54 197.81 201.13 204.51 207.95 211.44 214.99 218.61
(iv) Aggregate number of Passengers (ii)x(iii) 21840.00 22579.99 22959.33 23345.05 23737.25 24136.03 24541.52 24953.81 25373.04 25799.31 26232.73
(v) VOC Savings for Passenger 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 45099.60 46627.68 47411.02 48207.53 49017.41 49840.90 50678.23 51529.63 52395.32 53275.57 54170.59

Passenger Details Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TOTAL
(i) Average Frequency of travels per mo per HH 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Average Travel per year per HH (i)x12 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00
(iii)Total number of HH beneficiaries 222.28 226.01 229.81 233.67 237.60 241.59 245.65 249.77 253.97 258.24
(iv) Aggregate number of Passengers (ii)x(iii) 26673.44 27121.56 27577.20 28040.50 28511.58 28990.57 29477.61 29972.84 30476.38 30988.38
(v) VOC Savings for Passenger 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 55080.66 56006.02 56946.92 57903.63 58876.41 59865.53 60871.27 61893.91 62933.73 63991.01 1097522.95
Table 18. Incremental Passenger Financial Benefits from VOCs for Farm to Market Road-Pacso (in Php)
PACSO
Passenger Details Base Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
(i) Average Frequency of travels per mo per HH 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Average Travel per year per HH (i)x12 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00
(iii)Total number of HH beneficiaries 144.00 148.88 151.38 153.92 156.51 159.14 161.81 164.53 167.29 170.11 172.96
(iv) Aggregate number of Passengers (ii)x(iii) 13824.00 14292.39 14532.50 14776.65 15024.89 15277.31 15533.97 15794.94 16060.30 16330.11 16604.46
(v) VOC Savings for Passenger 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 28546.56 29513.78 30009.61 30513.77 31026.41 31547.65 32077.65 32616.55 33164.51 33721.68 34288.20

Passenger Details Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TOTAL
(i) Average Frequency of travels per mo per HH 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Average Travel per year per HH (i)x12 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00
(iii)Total number of HH beneficiaries 175.87 178.82 181.83 184.88 187.99 191.15 194.36 197.62 200.94 204.32
(iv) Aggregate number of Passengers (ii)x(iii) 16883.41 17167.05 17455.46 17748.71 18046.89 18350.08 18658.36 18971.82 19290.54 19614.63
(v) VOC Savings for Passenger 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 34864.24 35449.96 36045.52 36651.09 37266.82 37892.91 38529.51 39176.80 39834.97 40504.20 694695.84
Table 19. Total Incremental Passenger Financial Benefits from VOCs for Farm to Market Road (in Php)
INCREMENTAL
PASSENGER BENEFITS Base Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

Cattubo 39375.42 49676.41 50510.97 51359.56 52222.40 53099.73 53991.81 54898.87 55821.17 56758.97 57712.52

Natubleng 45099.60 46627.68 47411.02 48207.53 49017.41 49840.90 50678.23 51529.63 52395.32 53275.57 54170.59

Pacso 28546.56 29513.78 30009.61 30513.77 31026.41 31547.65 32077.65 32616.55 33164.51 33721.68 34288.20

TOTAL 113021.58 125817.86 127931.61 130080.86 132266.21 134488.29 136747.69 139045.05 141381.01 143756.21 146171.31

INCREMENTAL
PASSENGER BENEFITS Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TOTAL

Cattubo 58682.09 59667.95 60670.37 61689.63 62726.02 63779.81 64851.32 65940.82 67048.62 68175.04 1169284.06

Natubleng 55080.66 56006.02 56946.92 57903.63 58876.41 59865.53 60871.27 61893.91 62933.73 63991.01 1097522.95

Pacso 34864.24 35449.96 36045.52 36651.09 37266.82 37892.91 38529.51 39176.80 39834.97 40504.20 694695.84

TOTAL 148626.99 151123.92 153662.81 156244.34 158869.25 161538.25 164252.09 167011.53 169817.32 172670.25 2961502.86
Table 20. Computation for Financial Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road (in Php)
YEAR FINANCIAL INCREMENTAL BENEFITS FINANCIAL INCREMENTAL COSTS TOTAL FIN'L
Freight Passenger Capital Operating Depreciation INCREMENTAL
Benefits/Year Benefits/Year Total Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0 - 0 3,501,343.30 0 3501343.3 -3501343


2012 1,239,338.62 125,818 1365156.488 242,935.00 242935 1122221
2013 1,239,338.62 127,932 1367270.228 242,935.00 242935 1124335
2014 1,239,338.62 130,081 1369419.479 242,935.00 242935 1126484
2015 1,239,338.62 132,266 1371604.838 242,935.00 242935 1128670
2016 1,239,338.62 134,488 1373826.91 242,935.00 242935 1130892
2017 1,239,338.62 136,748 1376086.313 242,935.00 242935 1133151
2018 1,239,338.62 139,045 1378383.675 242,935.00 242935 1135449
2019 1,239,338.62 141,381 1380719.631 242,935.00 242935 1137785
2020 1,239,338.62 143,756 1383094.832 242,935.00 242935 1140160
2021 1,239,338.62 146,171 1385509.937 242,935.00 242935 1142575
2022 1,239,338.62 148,627 1387965.615 242,935.00 242935 1145031
2023 1,239,338.62 151,124 1390462.548 242,935.00 242935 1147528
2024 1,239,338.62 153,663 1393001.43 242,935.00 242935 1150066
2025 1,239,338.62 156,244 1395582.965 242,935.00 242935 1152648
2026 1,239,338.62 158,869 1398207.87 242,935.00 242935 1155273
2027 1,239,338.62 161,538 1400876.874 242,935.00 242935 1157942
2028 1,239,338.62 164,252 1403590.716 242,935.00 242935 1160656
2029 1,239,338.62 167,012 1406350.151 242,935.00 242935 1163415
2030 1,239,338.62 169,817 1409155.945 242,935.00 242935 1166221
2031 1,239,338.62 169,817 1409155.945 242,935.00 242935 1166221
TOTAL 24,786,772.47 2,958,649.93 27745422.39 3,501,343.30 4,858,700.00 8,360,043.30 19385379
Table 21. Computation for Financial Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road with 10% Decrease in Benefits (in Php)
TOTAL FIN'L
YEAR FINANCIAL INCREMENTAL BENEFITS FINANCIAL INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0 0 0 3,501,343.30 0 3501343.3 -3501343.3


2012 1,239,338.62 125,818 1228640.8 242,935.00 242935 985705.8395
2013 1,239,338.62 127,932 1230543.2 242,935.00 242935 987608.2056
2014 1,239,338.62 130,081 1232477.5 242,935.00 242935 989542.5315
2015 1,239,338.62 132,266 1234444.4 242,935.00 242935 991509.354
2016 1,239,338.62 134,488 1236444.2 242,935.00 242935 993509.2192
2017 1,239,338.62 136,748 1238477.7 242,935.00 242935 995542.6821
2018 1,239,338.62 139,045 1240545.3 242,935.00 242935 997610.3071
2019 1,239,338.62 141,381 1242647.7 242,935.00 242935 999712.6683
2020 1,239,338.62 143,756 1244785.3 242,935.00 242935 1001850.349
2021 1,239,338.62 146,171 1246958.9 242,935.00 242935 1004023.943
2022 1,239,338.62 148,627 1249169.1 242,935.00 242935 1006234.053
2023 1,239,338.62 151,124 1251416.3 242,935.00 242935 1008481.293
2024 1,239,338.62 153,663 1253701.3 242,935.00 242935 1010766.287
2025 1,239,338.62 156,244 1256024.7 242,935.00 242935 1013089.669
2026 1,239,338.62 158,869 1258387.1 242,935.00 242935 1015452.083
2027 1,239,338.62 161,538 1260789.2 242,935.00 242935 1017854.186
2028 1,239,338.62 164,252 1263231.6 242,935.00 242935 1020296.645
2029 1,239,338.62 167,012 1265715.1 242,935.00 242935 1022780.136
2030 1,239,338.62 169,817 1268240.4 242,935.00 242935 1025305.351
2031 1,239,338.62 169,817 1268240.4 242,935.00 242935 1025305.351
TOTAL 24,786,772.47 2,958,649.93 24970880 3,501,343.30 4,858,700.00 8,360,043.30 16610836.85
Table 22. Computation for Financial Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road with 10% Increase in Cost (in Php)
TOTAL FIN'L
YEAR FINANCIAL INCREMENTAL BENEFITS FINANCIAL INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0 - 0 3,501,343.30 0 3851477.63 -3851477.6


2012 1,239,338.62 125,818 1365156.49 242,935.00 267228.5 1097927.99
2013 1,239,338.62 127,932 1367270.23 242,935.00 267228.5 1100041.73
2014 1,239,338.62 130,081 1369419.48 242,935.00 267228.5 1102190.98
2015 1,239,338.62 132,266 1371604.84 242,935.00 267228.5 1104376.34
2016 1,239,338.62 134,488 1373826.91 242,935.00 267228.5 1106598.41
2017 1,239,338.62 136,748 1376086.31 242,935.00 267228.5 1108857.81
2018 1,239,338.62 139,045 1378383.68 242,935.00 267228.5 1111155.17
2019 1,239,338.62 141,381 1380719.63 242,935.00 267228.5 1113491.13
2020 1,239,338.62 143,756 1383094.83 242,935.00 267228.5 1115866.33
2021 1,239,338.62 146,171 1385509.94 242,935.00 267228.5 1118281.44
2022 1,239,338.62 148,627 1387965.62 242,935.00 267228.5 1120737.11
2023 1,239,338.62 151,124 1390462.55 242,935.00 267228.5 1123234.05
2024 1,239,338.62 153,663 1393001.43 242,935.00 267228.5 1125772.93
2025 1,239,338.62 156,244 1395582.97 242,935.00 267228.5 1128354.47
2026 1,239,338.62 158,869 1398207.87 242,935.00 267228.5 1130979.37
2027 1,239,338.62 161,538 1400876.87 242,935.00 267228.5 1133648.37
2028 1,239,338.62 164,252 1403590.72 242,935.00 267228.5 1136362.22
2029 1,239,338.62 167,012 1406350.15 242,935.00 267228.5 1139121.65
2030 1,239,338.62 169,817 1409155.95 242,935.00 267228.5 1141927.45
2031 1,239,338.62 169,817 1409155.95 242,935.00 267228.5 1141927.45
TOTAL 24,786,772.47 2,958,649.93 27745422 3,501,343.30 4,858,700.00 9,196,047.63 18549375
Table 23. Computation for Financial Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road with Two Years Project Delay (in Php)
TOTAL FIN'L
YEAR FINANCIAL INCREMENTAL BENEFITS FINANCIAL INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0 0 0 1,750,671.65 0 1750671.65 -1750671.7


2012 0.00 0 0 875335.825 0.00 875335.825 -875335.83
2013 0.00 0 0 875335.825 0.00 875335.825 -875335.83
2014 1,239,338.62 130,081 1369419.5 242,935.00 242935 1126484.5
2015 1,239,338.62 132,266 1371604.8 242,935.00 242935 1128669.8
2016 1,239,338.62 134,488 1373826.9 242,935.00 242935 1130891.9
2017 1,239,338.62 136,748 1376086.3 242,935.00 242935 1133151.3
2018 1,239,338.62 139,045 1378383.7 242,935.00 242935 1135448.7
2019 1,239,338.62 141,381 1380719.6 242,935.00 242935 1137784.6
2020 1,239,338.62 143,756 1383094.8 242,935.00 242935 1140159.8
2021 1,239,338.62 146,171 1385509.9 242,935.00 242935 1142574.9
2022 1,239,338.62 148,627 1387965.6 242,935.00 242935 1145030.6
2023 1,239,338.62 151,124 1390462.5 242,935.00 242935 1147527.5
2024 1,239,338.62 153,663 1393001.4 242,935.00 242935 1150066.4
2025 1,239,338.62 156,244 1395583 242,935.00 242935 1152648
2026 1,239,338.62 158,869 1398207.9 242,935.00 242935 1155272.9
2027 1,239,338.62 161,538 1400876.9 242,935.00 242935 1157941.9
2028 1,239,338.62 164,252 1403590.7 242,935.00 242935 1160655.7
2029 1,239,338.62 167,012 1406350.2 242,935.00 242935 1163415.2
2030 1,239,338.62 169,817 1409155.9 242,935.00 242935 1166220.9
2031 1,239,338.62 169,817 1409155.9 242,935.00 242935 1166220.9
TOTAL 22,308,095.22 2,704,900.46 25012996 3,501,343.30 4,372,830.00 7,874,173.30 17138822
Table 24. Computation for Financial Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road with 10% Decrease in Benefit, 10% Increase in Cost, and Two Years Project Delay (in Php)
TOTAL FIN'L
YEAR FINANCIAL INCREMENTAL BENEFITS FINANCIAL INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0 0 0 1,750,671.65 0 1925738.815 -1925738.8


2012 0.00 0 0 875335.825 0.00 962869.4075 -962869.41
2013 0.00 0 0 875335.825 0.00 962869.4075 -962869.41
2014 1,239,338.62 130,081 1232477.5 242,935.00 267228.5 965249.03
2015 1,239,338.62 132,266 1234444.4 242,935.00 267228.5 967215.85
2016 1,239,338.62 134,488 1236444.2 242,935.00 267228.5 969215.72
2017 1,239,338.62 136,748 1238477.7 242,935.00 267228.5 971249.18
2018 1,239,338.62 139,045 1240545.3 242,935.00 267228.5 973316.81
2019 1,239,338.62 141,381 1242647.7 242,935.00 267228.5 975419.17
2020 1,239,338.62 143,756 1244785.3 242,935.00 267228.5 977556.85
2021 1,239,338.62 146,171 1246958.9 242,935.00 267228.5 979730.44
2022 1,239,338.62 148,627 1249169.1 242,935.00 267228.5 981940.55
2023 1,239,338.62 151,124 1251416.3 242,935.00 267228.5 984187.79
2024 1,239,338.62 153,663 1253701.3 242,935.00 267228.5 986472.79
2025 1,239,338.62 156,244 1256024.7 242,935.00 267228.5 988796.17
2026 1,239,338.62 158,869 1258387.1 242,935.00 267228.5 991158.58
2027 1,239,338.62 161,538 1260789.2 242,935.00 267228.5 993560.69
2028 1,239,338.62 164,252 1263231.6 242,935.00 267228.5 996003.14
2029 1,239,338.62 167,012 1265715.1 242,935.00 267228.5 998486.64
2030 1,239,338.62 169,817 1268240.4 242,935.00 267228.5 1001011.9
2031 1,239,338.62 169,817 1268240.4 242,935.00 267228.5 1001011.9
TOTAL 22,308,095.22 2,704,900.46 22511696 3,501,343.30 4,372,830.00 8,661,590.63 13850105
APPENDIX G

Economic Computations
Table 25. Economic Cost- Capital Investment for Baybayog-Apanberang-Timbac Farm-to-Market Road Project (in Php)
CAPITAL INVESTMENT
DIRECT COST INDIRECT COST TOTAL
Labor Cost Cost of Materials Management TOTAL MARK-UPS TOTAL TOTAL CAPITAL
and DIRECT MARK- INDIRECT
Year Skilled Unskilled Equipment Supplies Other Supervision COST OCM PROFIT MOB/DEMOB UP VAT COST INVESTMENT
2011 61,274.50 218,615.46 70,658.00 2,339,946.00 - - 2,690,493.96 228,459.00 248,325.00 20,859.30 497,643.30 245,000.00 742,643.30 3,433,137.26
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
TOTAL 3,433,137.26
Table 26. Economic Cost- Working Capital for Baybayog-Apanberang-Timbac Farm-to-Market Road Project (in Php)
WORKING CAPITAL ( MOOE )
Mgt and Other TOTAL
Labor Cost Cost of Materials Supervision Cost DEPRECIATION MOOE
Year Skilled Unskilled Equipment Supplies Other
2011 0 0 0 0 0 0 0 0
2012 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2013 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2014 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2015 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2016 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2017 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2018 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2019 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2020 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2021 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2022 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2023 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2024 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2025 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2026 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2027 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2028 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2029 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2030 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
2031 8,400.00 16,422.00 23,667.00 42,189.00 11,550.00 102,228.00
TOTAL 2,044,560.00
Table 27. Economic Cost for Baybayog-Apanberang-Timbac Farm-to-Market Road Project (in Php)
Year CAPITAL INVESTMENT WORKING CAPITAL ( MOOE ) Replacement Cost TOTAL COST

2011 3,433,137.26 0 - 3,433,137.26


2012 102,228.00 102,228.00
2013 102,228.00 102,228.00
2014 102,228.00 102,228.00
2015 102,228.00 102,228.00
2016 102,228.00 102,228.00
2017 102,228.00 102,228.00
2018 102,228.00 102,228.00
2019 102,228.00 102,228.00
2020 102,228.00 102,228.00
2021 102,228.00 102,228.00
2022 102,228.00 102,228.00
2023 102,228.00 102,228.00
2024 102,228.00 102,228.00
2025 102,228.00 102,228.00
2026 102,228.00 102,228.00
2027 102,228.00 102,228.00
2028 102,228.00 102,228.00
2029 102,228.00 102,228.00
2030 102,228.00 102,228.00
2031 102,228.00 102,228.00
TOTAL 3,433,137.26 2,044,560.00 0 5477697.26
Table 28. Basic Parameters in Deriving Incremental Economic Benefits from Farm to Market Roads Project

WITHOUT THE
WITH THE PROJECT
ITEM PROJECT VOC SAVINGS
Percent VOC/Ton/km Percent VOC/Ton/km

(i) Freight
Jeepney 70 22.0598 30 6.61794
Truck 30 11.76 70 3.528
VOC (Weighted Average) 9.48 2.23 7.26

(ii) Passenger
Jeepney 70 2.646 30 0.7938
Truck 30 1.4112 70 0.4214
VOC (Weighted Average) 0.76 0.18 0.58
Table 29. Incremental Freight Economic Benefits from VOCs for Farm to Market Road
ITEM Radish Cabbage Potato
(A) Freight Benefits Cattubo Natubleng Pacso Cattubo Natubleng Pacso Cattubo Natubleng Pacso

Freight Details
(i) Average Yield per hectare 20 7.61 5 20 13.31 22.53 13 6.49 16
(ii) Total influence area (has) 593.98 2.5 1 593.98 410 110 593.98 475 50
(iii) Annual Aggregate Production (tons) (i)x(ii) 11879.6 19.025 5 11879.6 5457.1 2478.3 7721.74 3082.75 800
(iv) Percent Marketed 0.95 0.94 1 0.95 0.99 0.99 0.95 0.98 1
(v) Equivalent Volume Transported (tons) (iii)x(iv) 11285.62 17.8835 5 11285.62 5402.529 2453.517 7335.653 3021.095 800
(vi) VOC Savings for freight (Php/ton-km) 7.26 7.26 7.26 7.26 7.26 7.26 7.26 7.26 7.26
(vii) Kms of roads improved/rehabilitated 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5
INCREMENTAL FREIGHT BENEFITS 286767.6 454.4197 127.05 286767.6 137278.3 62343.87 186398.9 76766.02 20328
ITEM Carrots Others TOTAL
(A) Freight Benefits Cattubo Natubleng Pacso Cattubo Natubleng Pacso
Freight Details
(i) Average Yield per hectare 18 6.4 11.07 22.88 13 9.4
(ii) Total influence area (has) 68 250 55 49.83 10.75 185.73
(iii) Annual Aggregate Production (tons) (i)x(ii) 1224 1600 608.85 1140.11 139.75 1745.862
(iv) Percent Marketed 0.93 1 0.98 0.92 0.98 0.95
(v) Equivalent Volume Transported (tons) (iii)x(iv) 1138.32 1600 596.673 1048.902 136.955 1658.569
(vi) VOC Savings for freight (Php/ton-km) 7.26 7.26 7.26 7.26 7.26 7.26
(vii) Kms of roads improved/rehabilitated 3.5 3.5 3.5 3.5 3.5 3.5
INCREMENTAL FREIGHT BENEFITS 28924.71 40656 15161.46 26652.59 3480.027 42144.24 Php. 1214250.79694688
Table 30. Incremental Passenger Economic Benefits from VOCs for Farm to Market Road –Cattubo (in Php)
CATTUBO
Passenger Details Base Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
(i) Average Frequency of travels per mo per HH 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
(ii) Average Travel per year per HH (i)x12 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00
(iii)Total number of HH beneficiaries 227.00 286.39 291.20 296.09 301.06 306.12 311.26 316.49 321.81 327.22 332.71
(iv) Aggregate number of Passengers (ii)x(iii) 19068.00 24056.37 24460.52 24871.46 25289.30 25714.16 26146.15 26585.41 27032.04 27486.18 27947.95
(v) VOC Savings for Passenger 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 38708.04 48834.44 49654.85 50489.06 51337.27 52199.74 53076.69 53968.38 54875.05 55796.95 56734.34

Passenger Details Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TOTAL
(i) Average Frequency of travels per mo per HH 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
(ii) Average Travel per year per HH (i)x12 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00 84.00
(iii)Total number of HH beneficiaries 338.30 343.99 349.77 355.64 361.62 367.69 373.87 380.15 386.54 393.03
(iv) Aggregate number of Passengers (ii)x(iii) 28417.48 28894.89 29380.32 29873.91 30375.80 30886.11 31405.00 31932.60 32469.07 33014.55
(v) VOC Savings for Passenger 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 57687.48 58656.63 59642.06 60644.04 61662.86 62698.80 63752.14 64823.18 65912.21 67019.53 1149465.69
Table 31. Incremental Passenger Economic Benefits from VOCs for Farm to Market Road –Natubleng (in Php)
NATUBLENG
Passenger Details Base Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
(i) Average Frequency of travels per mo per HH 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Average Travel per year per HH (i)x12 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00
(iii)Total number of HH beneficiaries 182.00 188.17 191.33 194.54 197.81 201.13 204.51 207.95 211.44 214.99 218.61
(iv) Aggregate number of Passengers (ii)x(iii) 21840.00 22579.99 22959.33 23345.05 23737.25 24136.03 24541.52 24953.81 25373.04 25799.31 26232.73
(v) VOC Savings for Passenger 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 44335.20 45837.38 46607.44 47390.45 48186.61 48996.14 49819.28 50656.24 51507.27 52372.59 53252.45

Passenger Details Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TOTAL
(i) Average Frequency of travels per mo per HH 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Average Travel per year per HH (i)x12 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00
(iii)Total number of HH beneficiaries 222.28 226.01 229.81 233.67 237.60 241.59 245.65 249.77 253.97 258.24
(iv) Aggregate number of Passengers (ii)x(iii) 26673.44 27121.56 27577.20 28040.50 28511.58 28990.57 29477.61 29972.84 30476.38 30988.38
(v) VOC Savings for Passenger 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 54147.09 55056.76 55981.71 56922.21 57878.50 58850.86 59839.55 60844.86 61867.05 62906.42 1078920.86
Table 32. Incremental Passenger Economic Benefits from VOCs for Farm to Market Road –Pacso (in Php)
PACSO
Passenger Details Base Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
(i) Average Frequency of travels per mo per HH 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Average Travel per year per HH (i)x12 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00
(iii)Total number of HH beneficiaries 144.00 148.88 151.38 153.92 156.51 159.14 161.81 164.53 167.29 170.11 172.96
(iv) Aggregate number of Passengers (ii)x(iii) 13824.00 14292.39 14532.50 14776.65 15024.89 15277.31 15533.97 15794.94 16060.30 16330.11 16604.46
(v) VOC Savings for Passenger 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 28062.72 29013.55 29500.98 29996.59 30500.53 31012.94 31533.96 32063.73 32602.40 33150.12 33707.04

Passenger Details Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TOTAL
(i) Average Frequency of travels per mo per HH 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Average Travel per year per HH (i)x12 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00 96.00
(iii)Total number of HH beneficiaries 175.87 178.82 181.83 184.88 187.99 191.15 194.36 197.62 200.94 204.32
(iv) Aggregate number of Passengers (ii)x(iii) 16883.41 17167.05 17455.46 17748.71 18046.89 18350.08 18658.36 18971.82 19290.54 19614.63
(v) VOC Savings for Passenger 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58
(vi) Kms of roads improved/rehabilitated 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50
INCREMENTAL PASSENGER BENEFITS 34273.32 34849.11 35434.58 36029.88 36635.18 37250.65 37876.46 38512.79 39159.80 39817.69 682921.34
Table 33. Total Incremental Passenger Economic Benefits from VOCs for Farm to Market Road (in Php)
INCREMENTAL
PASSENGER BENEFITS Base Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

Cattubo 38708.04 48834.44 49654.85 50489.06 51337.27 52199.74 53076.69 53968.38 54875.05 55796.95 56734.34

Natubleng 44335.20 45837.38 46607.44 47390.45 48186.61 48996.14 49819.28 50656.24 51507.27 52372.59 53252.45

Pacso 28062.72 29013.55 29500.98 29996.59 30500.53 31012.94 31533.96 32063.73 32602.40 33150.12 33707.04

TOTAL 111105.96 123685.36 125763.27 127876.10 130024.41 132208.82 134429.93 136688.36 138984.72 141319.66 143693.83

INCREMENTAL
PASSENGER BENEFITS Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TOTAL

Cattubo 57687.48 58656.63 59642.06 60644.04 61662.86 62698.80 63752.14 64823.18 65912.21 67019.53 1149465.69

Natubleng 54147.09 55056.76 55981.71 56922.21 57878.50 58850.86 59839.55 60844.86 61867.05 62906.42 1078920.86

Pacso 34273.32 34849.11 35434.58 36029.88 36635.18 37250.65 37876.46 38512.79 39159.80 39817.69 682921.34

TOTAL 146107.89 148562.50 151058.35 153596.13 156176.55 158800.31 161468.16 164180.82 166939.06 169743.64 2911307.89
Table 34. Computation for Economic Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road (in Php)
TOTAL ECONOMIC
YEAR ECONOMIC INCREMENTAL BENEFITS ECONOMIC INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0 0 0 3,433,137.26 0 3433137.26 -3433137.26


2012 1,214,250.80 123,685 1337936.2 102,228.00 102228 1235708.156
2013 1,214,250.80 125,763 1340014.1 102,228.00 102228 1237786.07
2014 1,214,250.80 127,876 1342126.9 102,228.00 102228 1239898.893
2015 1,214,250.80 130,024 1344275.2 102,228.00 102228 1242047.211
2016 1,214,250.80 132,209 1346459.6 102,228.00 102228 1244231.621
2017 1,214,250.80 134,430 1348680.7 102,228.00 102228 1246452.73
2018 1,214,250.80 136,688 1350939.2 102,228.00 102228 1248711.152
2019 1,214,250.80 138,985 1353235.5 102,228.00 102228 1251007.517
2020 1,214,250.80 141,320 1355570.5 102,228.00 102228 1253342.46
2021 1,214,250.80 143,694 1357944.6 102,228.00 102228 1255716.63
2022 1,214,250.80 146,108 1360358.7 102,228.00 102228 1258130.687
2023 1,214,250.80 148,563 1362813.3 102,228.00 102228 1260585.299
2024 1,214,250.80 151,058 1365309.1 102,228.00 102228 1263081.149
2025 1,214,250.80 153,596 1367846.9 102,228.00 102228 1265618.93
2026 1,214,250.80 156,177 1370427.3 102,228.00 102228 1268199.345
2027 1,214,250.80 158,800 1373051.1 102,228.00 102228 1270823.111
2028 1,214,250.80 161,468 1375719 102,228.00 102228 1273490.956
2029 1,214,250.80 164,181 1378431.6 102,228.00 102228 1276203.621
2030 1,214,250.80 166,939 1381189.9 102,228.00 102228 1278961.859
2031 1,214,250.80 169,744 1383994.4 102,228.00 102228 1281766.435
TOTAL 24,285,015.94 2,911,307.89 27196324 3,433,137.26 2,044,560.00 5,477,697.26 21718626.6
Table 35. Computation for Economic Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road with 10% Decrease in Benefits (in Php)
TOTAL ECONOMIC
YEAR ECONOMIC INCREMENTAL BENEFITS ECONOMIC INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0 0 0 3,433,137.26 0 3433137.26 -3433137.3


2012 1,214,250.80 123,685 1204142.54 102,228.00 102228 1101914.5
2013 1,214,250.80 125,763 1206012.663 102,228.00 102228 1103784.7
2014 1,214,250.80 127,876 1207914.203 102,228.00 102228 1105686.2
2015 1,214,250.80 130,024 1209847.69 102,228.00 102228 1107619.7
2016 1,214,250.80 132,209 1211813.659 102,228.00 102228 1109585.7
2017 1,214,250.80 134,430 1213812.657 102,228.00 102228 1111584.7
2018 1,214,250.80 136,688 1215845.237 102,228.00 102228 1113617.2
2019 1,214,250.80 138,985 1217911.965 102,228.00 102228 1115684
2020 1,214,250.80 141,320 1220013.414 102,228.00 102228 1117785.4
2021 1,214,250.80 143,694 1222150.167 102,228.00 102228 1119922.2
2022 1,214,250.80 146,108 1224322.818 102,228.00 102228 1122094.8
2023 1,214,250.80 148,563 1226531.969 102,228.00 102228 1124304
2024 1,214,250.80 151,058 1228778.234 102,228.00 102228 1126550.2
2025 1,214,250.80 153,596 1231062.237 102,228.00 102228 1128834.2
2026 1,214,250.80 156,177 1233384.61 102,228.00 102228 1131156.6
2027 1,214,250.80 158,800 1235746 102,228.00 102228 1133518
2028 1,214,250.80 161,468 1238147.06 102,228.00 102228 1135919.1
2029 1,214,250.80 164,181 1240588.459 102,228.00 102228 1138360.5
2030 1,214,250.80 166,939 1243070.873 102,228.00 102228 1140842.9
2031 1,214,250.80 169,744 1245594.992 102,228.00 102228 1143367
TOTAL 24,285,015.94 2,911,307.89 24476691.45 3,433,137.26 2,044,560.00 5,477,697.26 18998994
Table 36. Computation for Economic Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road with 10% Increase in Cost (in Php)
TOTAL ECONOMIC
YEAR ECONOMIC INCREMENTAL BENEFITS ECONOMIC INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0 0 0 3,433,137.26 0 3776450.986 -3776451


2012 1,214,250.80 123,685 1337936.16 102,228.00 112450.8 1225485.36
2013 1,214,250.80 125,763 1340014.07 102,228.00 112450.8 1227563.27
2014 1,214,250.80 127,876 1342126.89 102,228.00 112450.8 1229676.09
2015 1,214,250.80 130,024 1344275.21 102,228.00 112450.8 1231824.41
2016 1,214,250.80 132,209 1346459.62 102,228.00 112450.8 1234008.82
2017 1,214,250.80 134,430 1348680.73 102,228.00 112450.8 1236229.93
2018 1,214,250.80 136,688 1350939.15 102,228.00 112450.8 1238488.35
2019 1,214,250.80 138,985 1353235.52 102,228.00 112450.8 1240784.72
2020 1,214,250.80 141,320 1355570.46 102,228.00 112450.8 1243119.66
2021 1,214,250.80 143,694 1357944.63 102,228.00 112450.8 1245493.83
2022 1,214,250.80 146,108 1360358.69 102,228.00 112450.8 1247907.89
2023 1,214,250.80 148,563 1362813.3 102,228.00 112450.8 1250362.5
2024 1,214,250.80 151,058 1365309.15 102,228.00 112450.8 1252858.35
2025 1,214,250.80 153,596 1367846.93 102,228.00 112450.8 1255396.13
2026 1,214,250.80 156,177 1370427.34 102,228.00 112450.8 1257976.54
2027 1,214,250.80 158,800 1373051.11 102,228.00 112450.8 1260600.31
2028 1,214,250.80 161,468 1375718.96 102,228.00 112450.8 1263268.16
2029 1,214,250.80 164,181 1378431.62 102,228.00 112450.8 1265980.82
2030 1,214,250.80 166,939 1381189.86 102,228.00 112450.8 1268739.06
2031 1,214,250.80 169,744 1383994.44 102,228.00 112450.8 1271543.64
TOTAL 24,285,015.94 2,911,307.89 27196324 3,433,137.26 2,044,560.00 6,025,466.99 21170857
Table 37. Computation for Economic Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road with Two Years Project Delay (in Php)
TOTAL ECONOMIC
YEAR ECONOMIC INCREMENTAL BENEFITS ECONOMIC INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0.00 0.00 0.00 1,716,568.63 0 1716568.63 -1716568.6


2012 0.00 0.00 0.00 858284.315 0.00 858284.315 -858284.32
2013 0.00 0.00 0.00 858284.315 0.00 858284.315 -858284.32
2014 1214250.80 127876.10 1342126.89 102,228.00 102228 1239898.9
2015 1214250.80 130024.41 1344275.21 102,228.00 102228 1242047.2
2016 1214250.80 132208.82 1346459.62 102,228.00 102228 1244231.6
2017 1214250.80 134429.93 1348680.73 102,228.00 102228 1246452.7
2018 1214250.80 136688.36 1350939.15 102,228.00 102228 1248711.2
2019 1214250.80 138984.72 1353235.52 102,228.00 102228 1251007.5
2020 1214250.80 141319.66 1355570.46 102,228.00 102228 1253342.5
2021 1214250.80 143693.83 1357944.63 102,228.00 102228 1255716.6
2022 1214250.80 146107.89 1360358.69 102,228.00 102228 1258130.7
2023 1214250.80 148562.50 1362813.30 102,228.00 102228 1260585.3
2024 1214250.80 151058.35 1365309.15 102,228.00 102228 1263081.1
2025 1214250.80 153596.13 1367846.93 102,228.00 102228 1265618.9
2026 1214250.80 156176.55 1370427.34 102,228.00 102228 1268199.3
2027 1214250.80 158800.31 1373051.11 102,228.00 102228 1270823.1
2028 1214250.80 161468.16 1375718.96 102,228.00 102228 1273491
2029 1214250.80 164180.82 1378431.62 102,228.00 102228 1276203.6
2030 1214250.80 166939.06 1381189.86 102,228.00 102228 1278961.9
2031 1214250.80 169743.64 1383994.44 102,228.00 102228 1281766.4
TOTAL 21,856,514.35 2,661,859.26 24518374 3,433,137.26 1,840,104.00 5,273,241.26 19245132
Table 38. Computation for Economic Internal Rate of Return for the Baybayog- Apanberang-Timbac Farm-to-Market Road with 10% Decrease in Benefits, 10% Increase in Cost and Two Years Project Delay (in Php)
TOTAL ECONOMIC
YEAR ECONOMIC INCREMENTAL BENEFITS ECONOMIC INCREMENTAL COSTS INCREMENTAL
Freight Passenger Total Capital Operating Depreciation
Benefits/Year Benefits/Year Benefits Investment Cost Cost Total Costs NET BENEFITS

2011 0.00 0.00 0.00 1,716,568.63 0 1888225.493 -1888225.493


2012 0.00 0.00 0.00 858284.315 0.00 944112.7465 -944112.7465
2013 0.00 0.00 0.00 858284.315 0.00 944112.7465 -944112.7465
2014 1214250.80 127876.10 1207914.20 102,228.00 112450.8 1095463.403
2015 1214250.80 130024.41 1209847.69 102,228.00 112450.8 1097396.89
2016 1214250.80 132208.82 1211813.66 102,228.00 112450.8 1099362.859
2017 1214250.80 134429.93 1213812.66 102,228.00 112450.8 1101361.857
2018 1214250.80 136688.36 1215845.24 102,228.00 112450.8 1103394.437
2019 1214250.80 138984.72 1217911.97 102,228.00 112450.8 1105461.165
2020 1214250.80 141319.66 1220013.41 102,228.00 112450.8 1107562.614
2021 1214250.80 143693.83 1222150.17 102,228.00 112450.8 1109699.367
2022 1214250.80 146107.89 1224322.82 102,228.00 112450.8 1111872.018
2023 1214250.80 148562.50 1226531.97 102,228.00 112450.8 1114081.169
2024 1214250.80 151058.35 1228778.23 102,228.00 112450.8 1116327.434
2025 1214250.80 153596.13 1231062.24 102,228.00 112450.8 1118611.437
2026 1214250.80 156176.55 1233384.61 102,228.00 112450.8 1120933.81
2027 1214250.80 158800.31 1235746.00 102,228.00 112450.8 1123295.2
2028 1214250.80 161468.16 1238147.06 102,228.00 112450.8 1125696.26
2029 1214250.80 164180.82 1240588.46 102,228.00 112450.8 1128137.659
2030 1214250.80 166939.06 1243070.87 102,228.00 112450.8 1130620.073
2031 1214250.80 169743.64 1245594.99 102,228.00 112450.8 1133144.192
TOTAL 21,856,514.35 2,661,859.26 22066536 3,433,137.26 1,840,104.00 5,800,565.39 16265970.86
APPENDIX H

DOCUMENTATION
Plate 2. Identification of Road Project Plate 3. Dialogue with the CHARM Officials

Plate 4. Leveling-off Training on Data Analyses Plate 5. Hands-on Training

Plate 6. Benguet Provincial Capitol Plate 7. Practicumers with Field Supervisors


Plate 8. Vegetable Terraces in Cattubo, Atok Plate 9. Barangay Hall of Cattubo

Plate 10. Key Informant Interview Plate 11. Municipal Hall of Atok

Plate 12. Data Gathering Plate 13. Bayanihan of Farmers


Plate 14. Transportation of Vegetables to Market Plate 15. Dinner with the Barangay Cattubo Officials

Plate 16. Data Processing Plate 17. Secondary Data

Plate 18. Computation for Financial and Plate 19. Analysis of Financial Feasibility
Economic Analyses
Plate 20. Analysis of Economic Feasibility Plate 21. Preparation for Presentation in Benguet

Plate 22. Presentation of Report Output Plate 23. Presentation of the Results and Discussion

Plate 24. Open Forum Plate 25. Giving Token of Appreciation