At least 19 million Filipinos are set to benefit from two new projects approved by the World Bank's Board of Executive Directors. These initiatives aim to enhance transport connectivity and health services in Mindanao and other low-capacity provinces across the Philippines.
"The World Bank is committed to support the Philippines in its journey towards inclusive growth and its aspiration to become an upper middle-income country," stated Zafer Mustafaoğlu, World Bank Country Director for the Philippines, Malaysia, and Brunei Darussalam. "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."
The Mindanao Transport Connectivity Improvement Project, with a budget of $454.94 million, will benefit at least 1.16 million residents along a key road corridor in Cagayan de Oro, Davao, and General Santos. This project aims to provide improved access to sustainable transport infrastructure and services. Better rural roads are expected to 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," said Pratap Tvgssshrk, World Bank Senior Transport Specialist. "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."
The project will finance the rehabilitation and upgrading of a 428.2-kilometer main road corridor linking three major cities that host key ports and airports in Mindanao. The road network includes four highways—Sayre Highway, Bukidnon-Davao Highway, Digos-Makar Highway, and Davao-Cotabato Road—spanning six provinces, 14 municipalities, seven cities, and 168 barangays (villages). Additionally, it will upgrade three local roads connecting to this corridor with a total length of 129.86 kilometers.
Meanwhile, the $495.6 million Philippines Health System Resilience Project will support government efforts to enhance climate-resilient healthcare networks. It aims to improve workforce governance and promote high-quality health services at the provincial level while investing in disease surveillance, public health laboratories, and emergency response systems.
This health project will prioritize 17 provinces with low healthcare access capacity, benefiting 17.9 million people including those in geographically isolated areas. Eleven of these provinces are located in Mindanao.
"The health sector in the Philippines significantly depends on the efforts of local government units (LGUs) to provide essential services," said Wei Han, World Bank Senior Economist. "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."
Additionally, this project supports digital transformation as well as institutional strengthening and capacity-building at both national and local levels for effective implementation.