BONIFACIO GLOBAL CITY, Taguig — Recognizing the important role of transportation and health in development, two new projects approved by the World Bank’s (WB) Board of Executive Directors are targeted to improve transport connectivity and health services in Mindanao and low-capacity provinces across the country.

In a news release, WB country director for the Philippines, Malaysia, and Brunei Darussalam Zafer Mustafaoğlu said that the two projects will benefit at least 19 million Filipinos as World Bank is committed to support the Philippines in its journey towards inclusive growth and its aspiration to become an upper middle-income country in the coming years.

“Initiatives that enhance transport connectivity and boost health services in low-capacity regions, particularly in Mindanao, can address regional disparities while enhancing the quality of life for many Filipinos,” Mustafaoğlu enthused.

The first of the two new WB-funded projects is the US$454.94 million, or almost ₱26 billion, Mindanao Transport Connectivity Improvement Project that aims benefit at least 1.16 million residents along a key road corridor in Cagayan de Oro, Davao and General Santos by providing improved access to sustainable transport infrastructure and services.

The transport project covers the rehabilitation and upgrading of the 428.2-kilometer main road corridor linking the three major cities, which host key ports and airports in Mindanao. The road network comprises four highways—Sayre Highway, Bukidnon-Davao Highway, Digos-Makar Highway, and Davao-Cotabato Road—traversing six provinces, 14 municipalities, seven cities and 168 barangays.

Additionally, the project will support the upgrading of three local roads connecting to the Cagayan de Oro–Davao–General Santos corridor, with a total length of 129.86 kilometers.

World Bank senior transport specialist Pratap Tvgssshrk stated that “better rural roads reduce transportation costs and product losses for poor farmers, significantly contributing to poverty reduction.”
"Sustained growth and poverty reduction in Mindanao requires making agriculture more productive, particularly the smallholder farmers. Connecting rural and remote areas to urban centers where there is demand for farm produce is a key intervention to support growth in the agricultural sector,” Tvgssshrk explained.
The second project in line is the US$495.6-million (₱26.3 billion) Philippines Health System Resilience Project which will support government efforts to enhance climate-resilient healthcare networks, improve workforce and governance and promote high-quality health services at the provincial level.

According to World Bank senior economist Wei Han, the health project will also invest in disease surveillance, public health laboratories and emergency response systems while prioritizing 17 provinces with low healthcare access capacity and benefiting at least 17.9 million people, including those in geographically isolated and disadvantaged areas. Eleven of the targeted provinces are in Mindanao.

The project will also support digital transformation, institutional strengthening, and capacity-building at both national and local levels for effective implementation.

“The health sector in the Philippines significantly depends on the efforts of local government units (LGUs) to provide essential services. However, many LGUs face challenges due to limited resources and capacity. This project is vital as it aims to empower these low-capacity LGUs to deliver high-quality health services, thereby driving socioeconomic progress through improved health outcomes for Filipinos,” Wei described.