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

Philippines targets 4.3% of GDP for infrastructure spending in 2026

The Department of Budget and Management (DBM) cut its infrastructure spending target to 4.3% of gross domestic product (GDP) this year from 5.1% previously, as a corruption scandal weighed on government spending and economic growth last year.

The lower target translates to about P1.3 trillion in infrastructure outlays, Acting Budget Secretary Rolando U. Toledo said on Tuesday, signaling a more cautious spending stance as the government works to restore confidence and streamline disbursements.

“Based on our approved General Appropriations Act, we’re looking at achieving our infrastructure target as [a percentage of our] GDP at 4.3%, and even at a nominal level, that is equivalent to P1.3 trillion,” he told a Palace briefing in mixed English and Filipino.

Infrastructure spending has been a key pillar of President Ferdinand R. Marcos, Jr.’s growth strategy, though execution slowed last year due to budget adjustments and project bottlenecks amid a massive graft scandal involving flood control projects.

The government had earlier set a target of 5.1% of GDP for infrastructure spending in 2026, equivalent to P1.56 trillion, lower than the 2025 target of 5.3% of GDP or P1.51 trillion.

In 2024, infrastructure spending accounted for 5.8% of GDP or P1.545 trillion.

Mr. Toledo said the government is still determined to boost investments in infrastructure in the medium term.

He said there is little risk of delays in infrastructure projects this year, after a “clean” budget process.

“There is no reason for us to delay,” Mr. Toledo said, adding that the 2026 national budget contains no “ghost projects” and that allocations across programs are fully specified, supporting the government’s ability to meet its infrastructure goals.

Mr. Marcos on Jan. 5 signed a record P6.793-trillion national budget amid a graft scandal, which has prompted tighter scrutiny of public spending and a more cautious approach to the release of funds for infrastructure and other major projects.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said slower public works spending may temper economic momentum because infrastructure has one of the highest multiplier effects in the economy.

“It may cap growth momentum, as public works have one of the highest multiplier effects in the economy,” he said via Viber.

“The more cautious stance may help restore governance credibility, but it also means less crowding-in of private investment, weaker job creation in construction and allied sectors, and slower productivity gains,” he added.

Economy Secretary Arsenio M. Balisacan last week said economic growth in the Philippines likely eased to between 4.8% and 5% in 2025, reflecting the impact of the graft scandal on the economy.

The Philippine Statistics Authority is set to publish official fourth-quarter and full-year 2025 GDP figures on Jan. 29.

Without faster execution, improved project selection, or stronger private investment to offset the slowdown, the Philippines’ economic growth could fall short of its potential even as confidence gradually improves, Mr. Rivera said.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said higher government spending — particularly on infrastructure — is likely to be the primary driver of economic growth in 2026.

He expects authorities to accelerate public works as early as the first quarter to make up for underspending last year, which he said was partly due to tighter anti-corruption measures and governance reforms.

A catch-up spending program could help bolster investor confidence and sentiment, Mr. Ricafort said, reinforcing the growth outlook.

He said prospective interest rate cuts by the US Federal Reserve and the Bangko Sentral ng Pilipinas would lower borrowing costs, supporting credit demand, investment and overall economic expansion.

Source: Business World

ARROW Act to unlock infrastructure projects

Long-delayed infrastructure projects in the Philippines could gain momentum with the passage of the Accelerated and Reformed Right-of-Way (ARROW) Act, according to analysts.

Republic Act No. 12289, signed last month by President Ferdinand R. Marcos, Jr., amended the Right-of-Way Act of 2016 to make property acquisition faster, more transparent, and predictable.

Under the new law, agencies and private concessionaires must make upfront deposits on properties slated for acquisition — including crops, trees, and improvements — equivalent to 15% of their market value.

“By standardizing compensation and requiring upfront deposits, both landowners and developers gain greater transparency and security,” said Jamie S. Dela Cruz, research manager at KMC Savills.

“For the property sector, this translates into clearer growth corridors and faster value appreciation in areas near planned infrastructure,” she added.

“Developers, investors, and businesses can plan with more certainty, while landowners benefit from more predictable compensation.”

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said the amended RoW Act will support real estate expansion outside Metro Manila.

“You cannot achieve both infrastructure implementation and decentralization if you cannot acquire the properties needed to build infrastructure,” he said.

Analysts have noted developers’ growing interest in regional areas such as Pampanga, Cebu, Bacolod, and Davao, amid favorable economic conditions and talent pools.

However, Ms. Dela Cruz cautioned that uneven implementation at the local level and potential speculative price surges in acquisition areas remain risks.

Right-of-way bottlenecks have long hindered infrastructure projects, affecting property developers’ expansion plans.

Beyond solving RoW bottlenecks, the government should strengthen urban planning and zoning to prevent congestion and ensure that infrastructure projects support balanced growth, she said.

She also stressed the need for more efficient permits, land titling, and property registration, as well as affordable housing for middle-income and working-class households.

“It should also ensure that public-private partnerships in key growth areas align infrastructure with commercial, industrial, and residential demand,” she added.

“If these issues are addressed together, the ARROW Act could become a genuine catalyst not only for infrastructure delivery but also for a more competitive, resilient, and inclusive Philippine property market,” Ms. Dela Cruz said.

Source: Business World