• G. Holmes Braddock Senior High

• ECON 101

PROJECT FEASIBILITY STUDY

PROPOSED RESIDENTIAL PROJECT

LOCATED AT BARANGAY ALIBAGU

CITY OF ILAGAN

PROVINCE OF ISABELA

INTRODUCTION

The proposed conversion of use of an agricultural land to be disposed by

the landowner for residential purposes seats in a 34,920 square meters of

land located at Brgy. Alibagu, City of llagan, Isabela. The applicant

considers the conversion and subdivision into individual residential lots to

be a vital component for social and economic development, particularly,

for the local community. This study, therefore, documents the feasibility of

the proposed project in that development context.

The study has four sections. The first section discusses the project

background and the central profile of the community under which the

proposed project will be located. The purpose of this section is to present

the social and economic development profile of the province, particularly,

the City of Ilagan, which gave, rise to the housing needs and the land

development project. In relation to the first section, the second section

discusses the relevant details of the project and how will it be

implemented.

The third section attempts to establish the feasibility indicators for the

proposed project through the financial and economic analysis. In theory,

the financial analysis is confined on the feasibility analysis at the project

level. On the other hand, economic analysis looks at the project analysis

from the broader perspective of the society. The study concludes by

presenting the summary in the last and fourth section.

BACKGROUND

One of the development needs of the City of Ilagan, Province of Isabela

identified and indicated under its recent Comprehensive Land Use Plan

document, was the need for a decent shelter for its growing population.

The document noted the prevalence of barong-barong or substandard

dwelling units as well as dilapidated houses in the community. It described

the condition of a considerable number of house units needed to be

replaced: 24.73% needs major repair, while 1.66% of the total occupied

housing units are almost condemned. The plan document also cited the

inadequacy of housing to the tune of 11,000 units. It is under this

background that a housing project has been regarded to be a significant

project intervention for social development in the community.

The demand of housing project is also expected in the light of the

economic growth being experienced in the region. The identification of

Ilagan as growing city has resulted in the proliferation of many

commercial and industrial business establishments. Also, the construction

of more infrastructures and economic institutions has been undertaken to

support and sustain the development trend in the area. Correspondingly,

the increased economic investment and activities in the area has resulted

in the demand for a decent shelter.

In general, the project is expected to contribute to the development of the

province of Isabela, particularly to the City of Ilagan. The above factors

that gave rise to the need for housing project shall be further discussed in

the following sections.

I. Profile of the Project Location

Geographical Location and Characteristics. The absolute geographic

location of the city is situated between and 170-14'00" North Latitude and

121-45'00" and 122-30'00" East Longitude. It is about 96 kms. South of

Cagayan Province, Tuguegarao City and about 410 kms from Metro Manila.

To its north, it is bounded by the Municipality of Tumauini; on the

northeast by the Municipality of Divilican; on the east by the Pacific

Ocean, on the northwest by the Municipality of Delfin Albano; on the west

by the Municipality of Quirino; and to its southeast by the Municipality of

Palanan. The city is located close to the central portion of the Province of

Isabela.

Containing an area of 116,626 has., the City of Ilagan is the largest

component city in the country in terms of land area, predominantly

consist of forest, road and utilities, water bodies and protected landscape

with a total of 61.78% or 72,051.54 has, with 22.32% or 26,030.93 has.

devoted to agriculture and 15.9% or 18,543.53 has. are built-up areas and

open grasslands.

Topography. The City of llagan has a rolling terrain composed of 13.45%

plain, 36.67% mountainous and 49.88% hilly used as pastureland, orchard

and similar agricultural uses. The mountains surrounding the city are an

extension of the Sierra Madre Mountain Range. The city has seven (7)

types of soil mostly composed of undifferentiated Mountains Soil and

Sandy Clay Loams.

Climate. The climate in the City of Ilagan is regularly mild, warm during

the dry season and cooling during the wet season. The province has two

types of climates, where the City of Ilagan generally falls under the fourth

(4th) type including the mountainous part and the coastal area along the

Pacific Ocean. This type of climate has moderate rainfall and it is more or

less evenly distributed throughout the year. The western part of the city

where most of the built-up areas are concentrated has the third (3rd) type

of climate. These areas experience dry and wet seasons that are not very

pronounced. It is relatively dry during the first half of the year and

relatively wet during the second half. The average monthly rainfall

recorded is at 151.37 mm which indicates a moderate rainfall. The month

of December is the coldest with an average of 25 degrees Centigrade

while the month of May is the hottest with an average value of 33.8

degrees Centigrade. Tropical storms commonly pass through the area

between May and November.

DEMOGRAPHY

Population. The total population of City of Ilagan is 170,187. Of this total,

51% are male and 49% are female or 96 females for every 100 males. The

population growth rate is 2.33% per annum. It is expected that the