The Marcos Jr. administration has committed P145.56 billion for the Central Mindanao High Standard Highway, locking in funding for the project through 2034 and effectively binding future national budgets to its completion.
The Department of Budget and Management (DBM) said it issued a Forward Obligational Authority (FOA) to guarantee sustained financing, following the directive of President Ferdinand Marcos Jr. to accelerate infrastructure development nationwide.
The FOA ensures that annual allocations for the project will be set aside over the next decade, allowing implementation to proceed without interruption.
According to the DBM, the highway is expected to cut travel time between Cagayan de Oro and Malaybalay from 6.5 hours to 3.5 hours, with projected benefits including lower transport costs and improved regional connectivity.
The project is proposed to be financed through a mix of government funds and loan proceeds from the Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB).
However, the funding mechanism effectively earmarks billions in advance, reducing the government’s room to reallocate resources in future budgets as competing priorities emerge.
The long-term commitment also underscores the growing scale of infrastructure spending, with large projects requiring sustained financing over multiple administrations.
DBM Secretary Rolando “Rolly” Toledo said the mechanism is intended to ensure uninterrupted project delivery.
“We are ensuring that the project will not be delayed due to lack of funding. With this FOA, continuous financing is guaranteed until completion – so that Filipinos, especially in Mindanao, can immediately feel the benefits of safer, faster, and more efficient travel,” Toledo said in Filipino.
“This is not just about building a road – it is about connecting communities, shortening the distance between opportunities, and making everyday life easier for our kababayans,” he added.
The project is expected to support trade, attract investments, and boost key sectors such as agriculture, logistics, and tourism in Northern and Central Mindanao.