Improvement, Operation and Maintenance of Kennon Road

Project Description: 

The project involves the rehabilitation/reconstruction and improvement of Kennon Road to prevent the road slope disasters such as soil collapse, rock fall, road slip, landslide, and river erosion that frequently occur along this road.

Kennon Road is one of the major access roads leading to the Benguet Province. It provides the shortest route from Rosario to Baguio City with a total length of 33.7 km. It starts at the intersection with Manila North Road in the municipality of Rosario, La Union and ends at a roundabout connected with Marcos Highway and Governor Pack Road. About 98% of Kennon Road passes along the Bued River Valley with several river crossings. It intersects several water tributaries which may cause possible flash floods, siltation, and debris flows. It also crosses Pugo fault between the poblacion area of Rosario and Rosario junction.

Kennon Road is classified as a primary national road under the jurisdiction of three (3) District Engineering Offices namely: La Union 2nd, Benguet 1st, and Baguio City DEOs. It is composed of 12.495 km. asphalt pavement and 21.196 km. concrete pavement. There are also 12 steel bridges and 6 concrete bridges along Kennon Road. Most of the bridges were constructed in 1968 and have a load limit of 10 tons.

Project Objectives: 

This project aims to:
• Provide fast, safe, comfortable, and reliable means of transportation from Rosario to Baguio City, thus providing ease to motorists travelling to Benguet Province
• Prevent road slope disasters that frequently occur along this road such as soil collapse, rock fall, road slip, landslide, and river erosion, by installing slope protection/stabilization works and appropriate engineering countermeasures at identified sections of the road
• Rehabilitate the existing bridges in bad condition to ensure its structural integrity and increase its load limit
• Establish an adequate system to operate and maintain the thoroughfare as a toll road.

Project Benefits: 

At the end of the rehabilitation/reconstruction, the project is expected to:
• Reduce travel time from Rosario to Baguio City from 2 hours to only 50 min.
• Reduce travel time from Manila to Baguio City from 5 hours to 3 hours and 30 min. via NLEX-SCTEX-TPLEX and Kennon Road
• Provide network redundancy in the Philippine highway system so as to have an alternate route in case of road repairs, blockages, or accidents along Marcos Highway
• Contribute to the growth of the region’s tourism industry and related business activities, including their expansion to remote communities near the project area

Project Cost: 

• Original: Php 909 M (Business Case Study, 2013)
• Updated: Php 3.4 B (DPWH-CAR Regional Office estimate, 2019)

Project Status: 

• A Market Sounding Exercise was conducted on January 31, 2020 at the DPWH Central Office to gauge the private sector’s level of interest, capability, and experience in undertaking the project.
• The DPWH application for PDMF (Project Development Monitoring Facility) Support for the: a) preparation of feasibility study and project structuring, b) preparation of bid documents and assistance during the PPP bidding process, and c) assistance and advisory until financial close was approved on March 11, 2020 during the PDMF Committee Meeting of the PPP Center.
• 14 consulting firms who will receive RFPs were confirmed on June 30, 2020
• The Technical Assistance Agreement (TAA) and Terms of Reference (TOR) for the PDMF Support was finalized on July 29, 2020 and signed by Sec. Villar last October 6, 2020
• The Request for Proposals (RFP) was issued on October 16, 2020
• The Technical Proposals (TP) were opened on November 16, 2020. Four (4) consulting firms had submitted their proposals, namely: 1) Isla Lipana & Co. (PwC Philippines), International Technical Assistance Consultants (Spain), 3) RebelGroup International BV (Netherlands), and 4) Feedback Infra Private Limited (India)
• Evaluation of TPs completed on November 20, 2020
• Financial Proposals (FPs) opened on November 26, 2020
• Contract negotiations had concluded and the association led by RebelGroup International BV (Netherlands) was awarded the consulting contract on January 20, 2021

Project Alignment: 
Project Timeline: 

Activity Indicative Timeline*
1. Finalization of RFP documents  1st week of October 2020
2. RFP Issuance  2nd week of October 2020
3. Consultant Selection  2nd week of October 2020 – 4th week of November 2020
4. Commencement of consulting services  4th week of November 2020
5. Conduct of Feasibility Study  December 2020 – May 2021 (approximately 6 months)
6. Government Approval of the PPP Project  July – August 2021
7. Tender of the PPP Project  September 2021 – May 2022
8. PPP Contract Signing  May 2022
*Timeline is based on TAA signing by October 12, 2020