Only 65 percent of farm-to-market roads completed in 5 years

Only 65 percent of the 4,810 farm-to-market road (FMR) projects under the Department of Public Works and Highways (DPWH) were completed from 2021 to 2025, according to the Department of Agriculture (DA).

Only 3,135 projects were completed in the past five years, according to preliminary FMR data the DA shared with the media through its transparency platform, which is currently in beta testing.

Data showed that at least 817 FMR projects have not commenced while 34 projects have been deferred, according to the DA.

Meanwhile, there are at least 677 ongoing funded FMR projects during the five-year period.

There are still at least 27 FMR projects funded in 2021 that are ongoing while there are three more financed in 2022 that are yet to be completed, based on the database.

Data also showed that there are still 28 ongoing FMR projects funded in 2023, 213 projects in 2024 and 406 projects under the 2025 budget.

The DA is updating and refining the database since it is still in its beta stage. The DA plans to publicly launch the transparency platform, dubbed FMR Watch, by February.

The platform features real-time project monitoring and updates as well as detailed financial information and budget for every FMR project. The public can access these for free and is encouraged to scrutinize the FMR projects and subsequently provide feedback and even complaints to the DA.

Each project has been geotagged with proper progress documentation from the start of procurement up to its completion.

The DA vowed to respond to citizens’ complaints regarding FMR projects within 24 hours once the transparency portal has been rolled out.

Throughout the five-year period, the government allocated P76.52 billion for all the 4,810 FMR projects. The 3,135 completed FMR projects were equivalent to nearly 2,400 kilometers of road.

Based on its estimates, at least 721,500 farmers have benefitted from the completed FMR projects across 2,400 communities nationwide, saving them 7,800 hours in transportation time while allowing them to move 240,000 metric tons of produce, according to the DA.

Central Luzon had the top budget allocation for FMR projects at P9 billion followed by the Bicol Region at P7.7 billion and Ilocos Region at P7.4 billion.

The DA assured the public that it has all the capabilities to undertake the completion of FMR projects this year worth P33 billion. 

The implementation of the FMR projects has been transferred to the DA following the controversies and issues surrounding DPWH’s infrastructure projects.

The DA also vowed to construct cheaper but still quality FMRs this year as it seeks to build more roads with its budget. The DA said its FMR projects will cost less than the P15 million per kilometer allocated budget in the past.

Source: Philstar

Infrastructure spending slumps in July amid flood control mess

Infrastructure spending declined by 25% in July, amid sluggish disbursements by the Department of Public Works and Highways (DPWH), the Budget department said.

At the same time, Budget Secretary Amenah F. Pangandaman said infrastructure disbursements may remain subdued in the coming months amid the ongoing probe into anomalous flood control projects.

In its latest disbursement report on Thursday, the Department of Budget and Management (DBM) said expenditures on infrastructure and other capital outlays fell by 25.3% to P93.3 billion in July from P124.9 billion in the same month last year.

Month on month, it dropped by 37.3% from P123.8 billion spent on infrastructure in June. 

This marked a reversal of the 6.5% annual increase seen in June after the election ban on public works disbursements was lifted in early May.

The DBM attributed the year-on-year decline in infrastructure spending to weak disbursements by the DPWH, which is currently embroiled in a controversy over anomalous flood control projects.

The Budget department noted the slow DPWH disbursements were due to project implementation schedules, including the timing and phasing of infrastructure activities, as well as delays in procurement, incomplete submission of progress billings and required documents by contractors.

Spending in July was also affected by contractors’ compliance with the new tax clearance requirement of the Bureau of Internal Revenue (BIR) for the release of final payments.

The BIR earlier said the failure of contractors to present their tax clearance will result in the suspension of contract settlements and the imposition of a tax line over the contract amount in favor of the government.

The updated clearance guarantees that every contractor has no outstanding tax liabilities.

“Disbursements for the Revised Armed Forces of the Philippines Modernization Program (RAFPMP) of the DND (Department of Defense) were also lower in July 2025 attributed to the timing of releases, as big-ticket items were scheduled in August,” the DBM said.

At the same time, the DBM said lower spending was partly offset by higher disbursements from the Department of Transportation, driven by local counterpart funding for foreign-assisted projects and the settlement of outstanding payables.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the government should exercise caution to prevent anomalies and corruption allegations.

“However, other infrastructure projects in good order will continue,” he said.

For the January-to-July period, overall infrastructure and capital outlays disbursements slipped by 3.2% to P713.5 billion from P736.7 billion in the same period last year.

The decline was driven by combined factors, including the second-quarter election-related ban and timing of disbursements for the defense modernization program.

As of end-July, the DBM released P4.9 billion to the DPWH for nationwide classroom repairs, alongside P3.5 billion earmarked for the restoration of Gabaldon and other heritage school and the implementation of the Last Mile Schools Program.

‘TEMPORARY SLOWDOWN’

Meanwhile, Ms. Pangandaman said infrastructure spending this year was dented by the election ban, and now the ongoing investigation on flood control projects.

The Budget department warned of a temporary slowdown in infrastructure spending as the DPWH conducts tighter due diligence of projects.

“(This) following rigorous due diligence being undertaken by the DPWH to evaluate and validate status of completed projects, and employ measures to enforce stricter verification of progress billings and other payment claims,” the DBM said.

Earlier this month, the DPWH suspended the bidding of all locally funded projects for two weeks, to help the agency implement safeguards against so-called “ghost” projects.

“The DPWH has also since lifted the suspension of bidding and procurement activities for local projects to ensure continuity and timely implementation of the infrastructure program while implementing safeguards to prevent corruption and ensure compliance with existing laws, rules, and regulations,” the Budget department said.

“Infrastructure spending will hopefully normalize and catch up towards the latter part of the year.”

However, Ms. Pangandaman said it’s too early to tell if the infrastructure slowdown will dent economic growth.

“We’re working with the DBCC (Development Budget Coordination Committee) to crunch the numbers. We’ll know more after the next (DBCC) meeting,” she said.

Analysts said they expect spending to further cool until 2026 amid a widening probe on infrastructure projects.

“We may see even slower infra spending in the coming months amid scrutiny of the DPWH and the corruption scandal,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said.

Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes said the flood control scandal is a “very hot issue” that’s likely to cool infrastructure spending through yearend.

Mr. Ricafort also said slower infrastructure spending could also dampen government spending, which contributes less than a fifth to the country’s economic output.

“Risk is slowdown in infrastructure spending and overall economic growth. But would help narrow the budget deficit and curb growth in overall NG (National Government) debt,” he said.

Source: Business World

Longest road mountain tunnel nears completion.

The Department of Public Works and Highways (DPWH) has entered a significant stage in the construction of the 2.3-kilometer twin-tube tunnel—soon to be the longest road mountain tunnel in the Philippines—serving as a key feature of the 45.5 kilometer, four-lane Davao City Bypass Construction Project (DCBCP).

This flagship infrastructure is being undertaken in line with President Ferdinand R. Marcos Jr.’s Build Better More program, which aims to modernize the country’s transport network and support inclusive development, under the broader vision of Bagong Pilipinas - a new and better Philippines.

According to DPWH Senior Undersecretary Emil K. Sadain, the DCBCP has recently completed a major milestone, as the north and south portal ends of the northbound tunnel were finally connected.

Located at the challenging mountainous terrain, DCBCP will offer motorists a safer and more efficient alternative route, effectively decongesting traffic within Davao City and enhancing regional connectivity.

In his report to DPWH Secretary Manuel M. Bonoan, Undersecretary Sadain noted that the construction breakthrough of the northbound tunnel, along with the ongoing excavation works for the remaining 202 meters of the southbound tunnel—which is now 91 percent completed—marks significant progress in this strategic infrastructure project.

Financed through a combination of a loan agreement with the Japan International Cooperation Agency (JICA) and local government funds, the DCBCP spans from Barangay Sirawan in Toril, Davao City to Barangay J.P. Laurel in Panabo City. Once completed, it is expected to drive economic growth, improve logistics, and connect communities - key goals under Bagong Pilipinas.

On April 11, 2025, Senior Undersecretary Sadain led an inspection of the road mountain tunnel under Contract Package (CP) I-1, covering 10.7 kilometers and now 58.7 percent completed by the Shimizu-Ulticon-Takenaka joint venture. He was joined by UPMO-Roads Management Cluster 1 Project Director Benjamin A. Bautista, UPMO-Bridges Management Cluster Project Director Rodrigo I. Delos Reyes, and Stakeholders Relations Service Director Randy R. Del Rosario.

The team also evaluated the progress of CP II-1, which includes several bridges being constructed by the CavDeal/WECI/Coastland Joint Venture, with support from UPMO Project Managers Joselito B. Reyes, Ricarte Mañalac and Emmanuel Regodon, Project Engineers Juan M. Diña Jr. and Oliver Angeles, and Engrs. Earl Nicholas F. Rada and Divina B. Bulan.

The locally funded portions of the bypass road under CP II-1 and CP II-2 are now 72.83 percent and 63.89 percent completed, respectively. CP II-1, spanning 2.54 kilometers and valued at P4.33 billion, features a 1.3-kilometer four-lane road and seven bridges, with completion targeted in the first quarter of 2026. Meanwhile, CP II-2—a 3.52-kilometer road section worth P4.60 billion—is slated for completion in the third quarter of 2026.

Other segments under CP I-2 and CP I-3 are also progressing steadily while Package II-3 will soon start its procurement activities.

Once completed, the Davao City Bypass will reduce travel time between Toril and Panabo City from 1 hour and 44 minutes to just 49 minutes, stimulating economic activity, expanding business opportunities, and boosting tourism across Davao Region and Mindanao—concrete steps toward building a Bagong Pilipinas.

Source: Philippine Resources