Ex-post Evaluation

1. Outline of the Project

Country:

Philippines

Project title:

National Construction Productivity Development Project

Issue/Sector:

Human Resource Development

Cooperation Scheme:

Project-Type Technical Cooperation

Division in Charge:

Social Development Cooperation Department

Total Costs:

Period of Cooperation

April 1993 – March 1998

(F/U): April 1998 – March 1999

Partner Country’s Implementing Organization:

Construction Manpower Development Foundation (CMDF)

Supporting Organization in Japan:

Ministry of Construction (current Ministry of Land, Infrastructure and Transport)

Related Cooperation:

Grant Aid in 1983 and 1988

1-1 Background of the Project

In the 1990s the demand for construction increased every year in the Philippines. However, most personnel in the construction industry did not have sufficient techniques or skills. Therefore the situation limited construction productivity, including its quality, duration of the construction work, and safety on the sites. Under the circumstances, the government of the Philippines requested from the government of Japan, a technical cooperation project with the aim of developing human resources and establishing a certification system in the construction industry; which would make construction management more efficient. With this request, a cooperative program was provided for five years from 1993 and the project purpose had almost been achieved by the final evaluation. It was concluded however, that the certification system of technicians would not to be established during the project implementation. Consequently, a one-year follow-up cooperation program was carried out to complete it. This evaluation refers to that follow-up period.

1-2 Project Overview

The Construction Manpower Development Foundation (CMDF), (the Philippines’ only training institution in the construction field), was provided with technical cooperation to develop and promote Work Performance Standards (WPS), and to establish a training and certification system for project supervisors and project engineers. This was in order to carry out construction in the Philippines efficiently.

(1) Overall Goal
To achieve a globally competitive Philippine construction industry through improved productivity.

(2) Project Purpose
To develop and disseminate a system that formulates and gives certification via WPS (Work Performance Standards) for construction engineers, supervisors and project managers.

(3) Outputs
1) Desirable WPS are formulated / disseminated.
2) Training for 3 rank engineers is developed and implemented to acquire necessary knowledge, skills and attitudes based on improved WPS.
3) Accreditation or certification system for 3 rank engineers is developed and implemented.
4) TQM (Total Quality Management) in the construction industry is promoted.
5) Systems and standards for continuous upgrading are established by the end of the Project.

(4) Inputs

2. Evaluation Team

Members of the Evaluation Team

Nick Baoy, JICA Philippine Office
Victor Lorenzo, Shinfield Consultancy Phil., Inc.

Period of Evaluation

December 13, 2002 – March 12, 2003

Type of Evaluation:

Ex-Post Evaluations by Overseas Offices

3. Results of Evaluation

3-1 Summary of Evaluation Results

(1) Impact
There have been no significant changes in the competitive strength of the construction industry in the Philippines since the Project was completed. According to data from the Philippine Overseas Construction Board (POCB), the domestic construction industry shared 44% of the ODA-related construction projects in 1997, and this was roughly unchanged by 1999 at 42% - possibly for the reason that cost per sale dropped due to Asian economic crisis. However, the competitiveness of the Philippine construction industry in the overseas market fell slightly. In 1998 construction companies registered with the POCB brought in a record-high USD917 billion in foreign earnings, but this had fallen to USD282 billion by 2001. The Construction Industry Authority of the Philippines (CIAP) and the POCB have stated that the domestic construction industry still have low competitiveness since many of the domestic companies are small to medium in scale, and there are few companies that meet the requirements to make a bid for international projects.

As for other impacts, the Technical Education Skills Development Authority (TESDA) has acknowledged the track record of the Construction Manpower Development Foundation (CMDF) in training personnel for the construction industry, and has accredited the CMDF training center located in Cavite as a “skills assessment center.” Additionally, the CMDF has been accredited as a training institution, and has the right to give courses on construction safety for the Bureau of Working Conditions, of the Department of Labor and Employment (BWC-DOLE). This recognition testifies to the solid reputation that the CMDF has earned from various governmental agencies in the Philippines.

(2) Sustainability
In September 2000, CMDF and CIAP agreed to integrate the Construction Managers’ Training and Certification Program (COMTCP) - a program designed to train construction project managers and supervisors, evaluate their skills and gives them accreditation. The program has technical requirements, which have to be satisfied in order to obtain a contractor’s license from the Philippines Contractors Accreditation Board (PCAB). Under this agreement, the CMDF has become the training and certifying agency for the PCAB, and they agreed to expand the areas covered in the COMTCP from the three areas developed in the Project, to 21 new areas.

The CMDF has continued to promote Work Performance Standards (WPS). As for the training, previously the courses were limited to participants from Cavite Province (about 40km from Manila), and the Manila suburbs. But the CMDF established formal connections with universities and training centers of other institutions and expanded the range of its courses. Currently, the CMDF has started courses in Visayas and Mindanao. On the downside, however, the Asian economic crisis has put the construction industry in a long-term slump, and the number of training courses is seeing an overall decline.

The CMDF reorganized things in 1999 to improve services for project managers and supervisors of construction. However, the government’s hiring-freeze policy restricted new employees and there are currently 40 posts unfilled, with the number of employees falling from 52 in 1999 to 44 currently. Furthermore, the Senate is currently considering privatizing the CMDF, and the CMDF’s organizational sustainability is unclear.

The condition and frequency for most of the donated equipment is good. The CMDF’s budget is made up of government allocations and independent income from training and seminars. Allocations from the government have been steady so far, but independent income fell by half from 1999 to 2002. The budget for equipment maintenance is also decreasing.

3-2 Factors that Promoted the Realization of Effects

(1) Factors Concerning the Planning
N/A

(2) Factors Concerning the Implementation Process
N/A

3-3 Factors that Impeded the Realization of Effects

(1) Factors Concerning the Planning
N/A

(2) Factors Concerning the Implementation Process
The Asian economic crisis has put the Philippine construction industry in a slump, which in turn has cut the number of training courses that the CMDF offers. The stagnant construction industry has also limited the opportunities CMDF trainees have to use their technology, and this has limited the Project’s impact. Furthermore, in the construction industry in the Philippines, a company’s track record of past performance determines the possibility of a government contract in bidding for public works projects. This gives large companies an advantage. This restricts the extent to which small and medium-sized companies can grow. Small and medium-sized companies are not able to meet the bidding requirements for international projects, which are determined by track record of past construction projects. Therefore the number of companies able to bid on international projects is also very limited.

3-4 Conclusion

One impact of the Project is the favorable recognition given to CMDF by TESDA and CIAP, but the international competitiveness of the Philippine’s construction industry is still considered to be low. The CMDF has 40 positions that remain to be filled, making its personnel body very weak. Its financial status has been stable up until now, but the CMDF will have to consider ways to secure financial resources for equipment maintenance. The current discussion of privatizing the CMDF makes its future role unclear.

3-5 Recommendations

The government has allocated funds to the CMDF up until this point, but the government’s own budget problems suggest that allocations to the CMDF will decrease. It is crucial that the CMDF look into the possibility of increasing its own income.

3-6 Lessons Learned

N/A

3-7 Follow-up Situation

N/A