Philippine commits financing for P146 billion ODA loan

MANILA, Philippines — The Marcos administration has committed sustained funding for the P145.56-billion Central Mindanao Highway Construction Project, to be borrowed from multilateral lenders, the Department of Budget and Management (DBM) said.

In a statement, the DBM said it secured the release of funding for the infrastructure project, meant to accelerate infrastructure development across the country.

The Central Mindanao Highway Construction Project seeks to link Cagayan de Oro and Malaybalay, cutting travel time to just 3.5 hours  from 6.5 hours and boosting regional economies.

This project is proposed to be financed through official development assistance (ODA) from the Japan International Cooperation Agency and the Asian Development Bank, alongside the local government’s counterpart funding.

“With the FOA (Forward Obligational Authority) in place, the government commits sustained financing for the project from FY 2026 to 2034 – removing uncertainty, preventing delays and enabling implementing agencies to proceed with full confidence,” the DBM said.

The FOA serves as a firm commitment that funds will be made available to cover the total project cost. It also guarantees that major infrastructure projects are not only approved but fully funded all the way to completion.

DBM Secretary Rolando Toledo said the issuance of the FOA translates Marcos’ directive into “real, felt impact on the ground.”

“With the President’s directive to accelerate infrastructure development, we are ensuring that the project will not be delayed due to lack of funds,” he said.

The Department of Economy, Planning and Development and some development partners have raised concerns on budget allocation and funding flows, which have delayed the implementation of ODA-funded projects.

The Philippines’ active ODA portfolio rose by six percent to $39.6 billion in 2024.

Under this project, the DBM said the faster travel, lower transport costs and more streamlined movement of goods will benefit commuters, farmers, businesses and local communities.

“Beyond convenience, the project is expected to boost trade competitiveness, attract investments and stimulate growth in key sectors such as agriculture, logistics and tourism – unlocking new opportunities across Northern and Central Mindanao,” the DBM said.