The Asian Development Bank’s (ADB) Board of Directors has approved a $380 million loan to help the Philippine government strengthen the road network and spur economic development in Mindanao, the country’s second largest island with about 20 million people.
The Improving Growth Corridors in Mindanao Road Sector Project, ADB’s biggest infrastructure investment in the island region, seeks to improve about 280 kilometers (km) of national roads and bridges in Mindanao.
The project, which is also the first Mindanao-specific loan granted by ADB in 16 years, will help the transport system better deal with the effects of climate change through features such as elevated pavements, enhanced slope protection, and better drainage. It will benefit women by improving their access to basic infrastructure, social services, and economic or financial resources or opportunities. Communities will also benefit from road safety awareness campaigns to be conducted under the project. All project roads will be geotagged with information accessible on the Internet, so the public can monitor road investment projects throughout the project life cycle, including procurement and construction.
Additionally, the assistance will help finance the detailed design of 300 km of national highways in Mindanao, which will be constructed through other projects. Institutionally, it will help the Department of Public Works and Highways improve the long-term planning, fiscal accountability, and human resource management in the transport sector in Mindanao and the rest of the country.
The total project cost is estimated at $503 million, with the Government of the Philippines contributing $123 million.
“Improving roads in Mindanao will support the development of economic opportunities in areas such as agribusiness, ecotourism, and logistics, and improve access to markets, jobs, education, and health facilities,” said Jeffrey Miller, Principal Transport Specialist at ADB’s Southeast Asia Department.
Efficient road transport is crucial for the Philippines’ economic growth, but the sector has not kept up with population growth. About 23% of the national road network is in poor condition, due to various reasons including inadequate funding, lack of maintenance, and the impact of climate change, such as flooding.
Mindanao’s road network is less developed than the national average, with only 70% of the roads paved, compared with 82% in Luzon and 89% in the Visayas. Despite its rich natural resources, Mindanao also has the highest poverty incidence among the Philippines’ three island groups at 32%, largely because of civil conflict and low economic growth.
