NEDA Board approves Mindanao transport project

The National Economic and Development Authority (NEDA) Board chaired by President Ferdinand Marcos Jr. approved two new major infrastructure projects on Wednesday (October 16) that will further advance the connectivity and healthcare sectors.

During its 21st meeting, the NEDA Board approved the P37-billion Mindanao Transport Connectivity Improvement Project (MTCIP), a project of the Department of Public Works and Highways (DPWH) to be financed through an official development assistance (ODA) loan from the World Bank (WB).

The project was submitted to the Investment Coordinating Committee (ICC) in July 2024. Consisting of five major components, the MTCIP involves connecting Regions 10, 11, and 12 by upgrading and ensuring the long-term maintenance of the Cagayan de Oro-Davao-General Santos Corridor with road sections encompassing 277.4 kilometers from Cagayan de Oro to Davao and 150.8 kilometers from Davao to General Santos City.

The project also involves the upgrade of three local roads totaling 129.86 kilometers. They are Link Road 1 from Sayre Highway (Patulangan) to Cawayan-Kibenton in Bukidnon; Link Road 2 from Fatima Malabog Road to Saloy-Bantol-Davao-Bukidnon Road to Panabo City; and Link Road 3 from the National Highway Junction in Poblacion Malungon to Sta. Maria Road, Davao Occidental.

The project will enhance capacity, climate resilience, road safety, capacity building, institutional development, project management, and contingent emergency response measures.

“Through the MTCIP, we anticipate significant economic growth in Mindanao's outlying regions as improved transportation will make travel more accessible and ease the delivery of agricultural goods and services,” said NEDA Secretary and NEDA Board Vice Chairperson Arsenio M. Balisacan.

The NEDA Board also approved the Philippines: Health Systems Resilience Project (HSRP) Phase 1 of the Department of Health (DOH) to help the country generate savings from reduced hospitalization and reduction in premature mortality from non-communicable diseases through the strengthening of the local health system. The project will also help avert costs in disability reduction due to reduced infections through the strengthening of emergency prevention, preparedness, and response. Further, the HSRP is expected to result into savings due to improved productivity of healthcare workers and avert costs due to a reduction in medical errors through health sector digital transformation.

Proposed for financing through an ODA loan from the WB with a total project cost of P27.92 billion, the HSRP prioritizes investments in 11 regions to strengthen service delivery and health emergency initiatives, particularly in geographically isolated and disadvantaged areas (GIDAs) that currently lack access to primary care facilities.

The NEDA Board also approved three initiatives submitted by the Committee on Infrastructure (INFRACOM).

The first initiative is the Policy and Criteria for the Selection of Purely Private Business Undertakings for Inclusion in the List of Infrastructure Flagship Projects (IFPs). This policy initiative introduces amendments to the 2023 Guidelines for the Formulation, Prioritization, and Monitoring of the Government’s IFPs to incorporate the selection process for including purely private projects in the IFP list. Said process involves, among others, ensuring the private sector entities’ (PSEs) commitment to government monitoring should their projects be included in the IFP list.

“The inclusion in the IFP list is expected to encourage, incentivize, and facilitate private sector investments in critical sectors in the country. PSEs may benefit from the advantages and incentives associated with being on this list, particularly in securing clearances, permits, and licenses, leading to a quicker implementation,” explained Balisacan.

The NEDA Board also approved two other policies that will improve service delivery and enhance monitoring of progress in the water supply and sanitation (WSS) sector. 

The Unified Resource Allocation Framework for WSS (URAF-WSS) intends to address the inequitable delivery of basic WSS infrastructure caused by inadequate funding, low technical capacities of service providers, and institutional challenges. It will rationalize and target allocation of available resources to expedite improvement and expansion of WSS services provision and promote leveraging of market-based financing, as well as leveraging grants/subsidies from the national government.

Meanwhile, the approved Definition of Terms Used for WSS in the Philippines addresses issues arising from the absence of a uniform set of data and classifications related to WSS agencies. The policy aims to align service level definitions with international standards to allow for a more comprehensive assessment and monitoring of the country’s progress in attaining targets related to water supply, sanitation, and hygiene such as the Sustainable Development Goals (SDGs).

Lastly, to further develop the healthcare sector, the NEDA Board also approved the extension of the implementation period and change in scope of the Development Objective Grant Agreement (DOAg) for Development Objective Improved Health for Underserved Filipinos (IHUF) project of the DOH and funded by the United States Agency for International Development (USAID).

Responding to the issues on logistics and pharmaceutical management, shortages of qualified health professionals in underserved areas, and inadequate public sector capacity in policy development, financing and private sector engagement, the project is now extended to September 30, 2025, and will now encompass all 17 regions in the country.