The Department of Budget and Management on Monday approved an allocation of P145.56 billion for the construction of the Central Mindanao High Standard Highway to support economic activity in Northern and Central Mindanao.
The funding comes with a Forward Obligational Authority (FOA), in which the government commits to provide sustained financing for the project until its target completion in 2034, Budget Secretary Rolando Toledo said, “so Filipinos, especially in Mindanao, can quickly feel the benefits of more efficient, faster, and safer travel.” The FOA mechanism allows implementing agencies to proceed with long-term infrastructure projects by ensuring that funds will be available across multiple fiscal years. It minimizes the risk of delays due to annual budget constraints and provides certainty in project execution, the DBM said.
Once finished, the Central Mindanao High Standard Highway would reduce travel time between Cagayan de Oro and Malaybalay, Bukidnon from 6.5 hours to only 3.5.
“This means faster travel, lower transport costs, and more efficient movement of goods — benefits that will directly impact commuters, farmers, businesses, and local communities,” the DBM said.
“Beyond convenience, the project is expected to boost trade competitiveness, attract investments, and stimulate growth in key sectors such as agriculture, logistics, and tourism — unlocking new opportunities across Northern and Central Mindanao,” it added.
The project will have a mix of official development assistance loans and government counterpart funding. These include loan proceeds from the Japan International Cooperation Agency and the Asian Development Bank, along with allocations from the national government.