ADB approves $380-M loan to improve Mindanao infrastructure

The Asian Development Bank (ADB) has approved a $380-million loan to help the Philippine government improve the road network and spur economic development in Mindanao.

The ADB said this will be its biggest infrastructure investment in Mindanao which seeks to improve about 280 kilometers of national roads and bridges.

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 like 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.

All road projects will be geotagged with information accessible on the Internet, so the public can monitor road projects, including procurement and construction.

The assistance will help finance the detailed design of 300 km of national highways in Mindanao, which will be constructed through other projects.

It will help the Department of Public Works and Highways (DPWH) improve the long-term planning, fiscal accountability, and human resource management in the transport sector in Mindanao and the rest of the country.

Road to progress

The total project cost is estimated at $503 million, with the government 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,” Jeffrey Miller, ADB principal transport specialist for Southeast Asia said.

Efficient road transport is crucial for the Philippines’ economic growth, but the sector has not kept up with population growth.

About 23 percent 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 percent of the roads paved, compared to 82 percent in Luzon and 89 percent in the Visayas.

Despite its rich natural resources, Mindanao has the highest poverty incidence among the three Philippine island groups at 32 percent, largely because of civil conflict and low economic growth.

The “Build, Build, Build” program, the centerpiece of President Duterte’s 10-point Socioeconomic Agenda, aims to increase public investment and accelerate infrastructure delivery.

Public spending on infrastructure is expected to reach 7.4 percent of the country’s gross domestic product by 2022, up from the 5.3 percent target in 2017.