WASHINGTON, March 5, 2025 - At least nineteen (19) million Filipinos are expected to benefit from two new projects approved by the World Bank's Board of Executive Directors, aimed at improving transport connectivity and health services in Mindanao and low-capacity provinces across the country.
"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," said 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 US$454.94 million Mindanao Transport Connectivity Improvement Project will 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. 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," 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."
Specifically, the project will finance the rehabilitation and upgrading of the 428.2-kilometer main road corridor linking the said three major cities, which host key ports and airports in Mindanao. This 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 (villages).
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.
The US$495.6 million Philippines Health System Resilience Project will support government efforts to enhance climate-resilient healthcare networks, improve workforce and governance, and promote high-quality health services at the provincial level. It will also invest in disease surveillance, public health laboratories, and emergency response systems.
This project will prioritize seventeen (17) provinces with low healthcare access capacity, benefiting 17.9 million people, including those in geographically isolated and disadvantaged areas. Eleven (11) of these provinces are in Mindanao.
"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," said Wei Han, World Bank Senior Economist.
The project also supports digital transformation, institutional strengthening, and capacity-building at both national and local levels for effective implementation.
