Rehabilitation/ Reconstruction/ Improvement, Operation and Maintenance of Kennon Road

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.

DEO RBIA Stationing Length (km.)
La Union 2nd DEO K0214+(-613) - K0215+158 1.811
Benguet 1st DEO K0216+(-845) - K0239+593 24.656
Baguio City DEO K0241+(-110) - K0248+147 7.224
TOTAL K0214+(-613) - K0248+147 33.691*

*NOTE: Total Project scope is approximately 30 km from Rosario, La Union up to Loakan Junction, Baguio City, Only

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/reconstruct 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.

OBJECTIVES OF THE STUDY/CONSULTING ASSIGNMENT:
1. Determine the optimal road alignment by conducting a Multi-Criteria Analysis (MCA) containing various criteria for route alignment selection
2. Conduct detailed technical analysis of the recommended alignment
3. Determine the most appropriate implementation strategy with the following modes of implementation as options:
a. Government implemented through applicable modes of financing;
b. PPP under Republic Act (R.A.) 6957, as amended by R.A. 7718 or the Build-Operate-Transfer (BOT) Law; or
c. Combination of (a) and (b).
4. Prepare bid/tender documents, provide advisory and transaction support to DPWH.
5. Ensure effective bid process and contract execution until financial close of the Project if the project is to be pursued through PPP.

DETAILS OF CONSULTING ASSIGNMENT:

Project Name: Project Preparation and Transaction Advisory Services for the Rehabilitation/ Reconstruction/ Improvement, Operation and Maintenance of the Kennon Road Project (PPPC/ADB/IDCA/042)
Contract Signing Date: January 27, 2021
Commencement Date: February 2, 2021
Funding Source: Project Development and Monitoring Facility (PDMF) Fund of the PPP Center under Asian Development Bank (ADB) Technical Assistance No. 7796
Procurement Framework: ADB Guidelines on the Use of Consultants
Contract Cost: USD 1,793,600.00 or PHP 89,680,000 (1$=P50)

At the end of the rehabilitation/reconstruction, the project is expected to:
• Reduce travel time from Rosario to Baguio City from 1 hour to only 30 min.
• Reduce travel time from Manila to Baguio City from 4 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.

• Php 13.24 Billion (Civil works cost)
• Php 650 Million (ROW cost)

● A copy of the Feasibility Study was transmitted to the Unified Project Management Office (UPMO) Roads Management Cluster I (Bilateral) through a memorandum dated 24 January 2024 and to the Planning Service through a memorandum dated 25 September 2023 for consideration for ODA Construction study.
● On 8 January 2024, PPP Center informed DPWH of the temporary removal of the Kennon Road Project from the pipeline of PPP Center-assisted projects published on their website, following the conclusion of the Feasibility Study (Milestone 2), the subsequent termination of the Technical Assistance Agreement between the PPP Center and the DPWH, and the decision of the Agency to pursue the project through a hybrid implementation (ODA-Construction, PPP-O&M).
● On 29 December 2023, Secretary Bonoan approved to include the Project under the ODA portfolio.

ACTIVITY INDICATIVE TIMELINE
1. Conduct of Feasibility Study  2 February 2021 - 21 December 2022 (For updating due to increase in prices and change in project structure)
2. Selection of Project Structure  17 April 2023
3. NEDA Approval  4th Quarter 2023