Abstract
This paper empirically identifies institutional spillover effects, i.e. the influence of one institution's actions, indirectly or unintentionally, on the actions of another institution, that resulted during the implementation of the Circumferential Road No. 3 construction project in Manila, Philippines which was funded by foreign aid. The paper shows an analysis of the mechanism of the effects, based on an examination of the behavioral process of the main actors - the donor, the recipient, the consulting company, and local organizations. First, the paper looked at the project purposes, processes, and outcomes based on relevant literature and interviews with local stakeholders. Then, focusing on a key event, institutional spillovers effects were identified. These spillover effects were examined through a process that identified the major actors, their motivations, available actions and strategies. Using a game-theoretic approach, the interactions that finally led to the amendment of policies for setting project bid-price were analyzed.
