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

Infrastructure spending declines in December

Infrastructure spending slumped by nearly 20% in December, but still exceeded the full-year program, the Department of Budget and Management (DBM) said.

Latest data from the DBM showed that spending on infrastructure and other capital outlays fell by 19.8% or P36.3 billion to P146.7 billion in December 2024 from P183 billion in the same month in 2023.

“This was attributed to the combined impact of the base effects of high capital disbursements in 2023, as well as the ongoing processing and release of cash allocations for payments of completed and ongoing capital outlay projects of various departments/agencies during the latter part of 2024,” the DBM said.

For the full-year, expenditures on infrastructure and other capital outlays jumped by 10.1% to P1.33 trillion from P1.2 trillion in 2023. This also exceeded the P1.24-trillion program by 6.7%.

The DBM attributed the faster infrastructure spending to the implementation of the Department of Public Works and Highways’ (DPWH) banner infrastructure projects as well as defense modernization projects of the Department of National Defense.

DBM data showed overall infrastructure disbursements rose by 8.9% to P1.545 trillion in 2024 from P1.42 trillion in 2023. It exceeded the P1.473-trillion program for 2024 by 4.9%.

“This was equivalent to 5.8% of GDP, well within the 5-6% target for 2024 and sustaining the 5.8% outturn in 2023,” the department said.

Infrastructure disbursements also include infrastructure components of subsidy and equity to government-owned and -controlled corporations and transfers to local government units.

“This was credited mainly to the accelerated infrastructure spending of the DPWH for its accelerated implementation of construction activities, particularly from carry-over or previous years’ projects, progress billings from completed ongoing infrastructure projects, as well as the direct payments made by development partners for foreign-assisted rail projects of the Department of Transportation,” the DBM said.

Oikonomia Advisory and Research, Inc. Economist Reinielle Matt M. Erece said the P122.2-billion increase in infrastructure and capital outlays in 2024 was partly driven by defense modernization programs of the government.

“This can be in response to the heightened geopolitical tensions felt by a lot of countries,” he said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said faster infrastructure spending last year can be partly attributed to preparations for the May elections.

“(This is) part of the preparations for the midterm elections, as basis for accomplishments that are consideration for the voters to choose some candidates based on their completed projects and programs,” he said.

Mr. Ricafort said the government likely expedited infrastructure projects in the first three months of 2025 ahead of the election ban.

The Commission on Elections’ ban on public works spending began on March 28 and will run for 45 days. The midterm elections are scheduled for May 12.

Mr. Erece said he expects slower infrastructure spending as the government “reviewed and removed some of the unprogrammed appropriations and other expenses that the administration felt were unneeded, at least in the short term.”

Source: Business World

Infrastructure delays may disrupt developers’ plans beyond Metro Manila

Further delays in mass transport projects may complicate property developers’ expansion plans outside the National Capital Region (NCR), as improved connectivity is a key factor in unlocking new growth areas, analysts said.

“One way to temper the lackluster demand in Metro Manila is to be more aggressive in expanding outside the capital region; developers are also hinging their expansion on these infrastructure projects,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said.

“These delays will likely stall the development strategies of developers outside Metro Manila,” he added.

Among the causes of delays in major mass transport projects are right-of-way (RoW) issues, budget constraints, and procurement and technical challenges.

“Infrastructure project delays may affect the credibility of the National Government in delivering economy-enhancing projects, which, in turn, could indirectly negate investor appetite for the Philippines,” Havitas Properties President and Chief Executive Officer Jonathan F. Caro said.

For instance, delays in the North–South Commuter Railway (NSCR) could affect key developments outside Metro Manila.

The Department of Transportation recently established a Flagship Project Management Office to accelerate the implementation of key mass transportation projects, including addressing RoW challenges.

Big-ticket projects under its monitoring include the NSCR, the Metro Manila Subway Project, the EDSA Busway Project, the EDSA Greenways Project, the Cebu Bus Rapid Transit, and the Davao Public Transport Modernization Project.

Both investor and buyer confidence rely on the timely delivery of public infrastructure projects, said Spike Alphonsus Ching, project director at PH1 World Developers.

“Delays or unmet expectations could erode confidence, particularly for developments meant to benefit from these projects. However, once these projects are completed, we expect a positive impact on the market, as enhanced connectivity unlocks new growth opportunities for both investors and property owners,” he said.

Delays in mass transport projects could also affect the development of luxury properties, which are primarily located outside the capital region.

“You can’t live there if you can’t get there,” Bill Barnett, executive director of Thailand-based hospitality consulting group C9 Hotelworks, said.

Mr. Barnett added that mass transportation infrastructure is necessary to further develop metropolitan areas in the countryside.

“For luxury real estate like branded residences, there is strong opportunity outside traditional areas like Makati, BGC (Bonifacio Global City), and the Bay Area, but the catalyst for change has to be a large-scale commitment to mass transport,” he also said.

Source: Business World