Palawan-M’danao transport link project gets $1-M ADB grant

The Asian Development Bank (ADB) will extend a $1 million technical assistance (TA) grant to develop an intermodal transport link between Palawan and Mindanao.

The TA, which came from the Japan Special Fund, will review the present integrated transport system, covering air, sea, and land transport of the two islands. It will also recommend possible areas for ADB intervention and prepare sub-projects suitable for ADB financing.

The Palawan and Mindanao intermodal link likewise supports ADB’s commitment to the regional development of the Brunei Darussalam, Indonesia, Malaysia, and Philippines-East ASEAN Growth Area (BIMP-EAGA).

The total assistance package is actually $1.426 million with the difference in the form of a counterpart fund from the Philippine government. The Department of Transportation and Communications (DOTC) will execute the TA, which is due for completion in Sept. 2005.

"Intermodal transport systems and their connections to the hinterland play a crucial role in the economic development of the widely dispersed regions of the country," an ADB statement said. "Improving road links for more efficient intermodal transport in the region can provide lifeline access for remote areas where poverty is rife."

Transport in the Philippine archipelago is conducted by air, sea, and road. However, inadequate infrastructure and the lack of reliable, safe, and efficient services constrain the development of trade and tourism.

Port facilities for container and roll-on-roll off (ro-ro) operations are limited, as well as air transport access to and within Mindanao. Road density in Mindanao and Palawan is less than half the average road density in the Philippines.

The limited transport system is thus an obstacle to regional investment, holding back development and poverty reduction, particularly in Palawan and Mindanao.

Improving the intermodal transport system is consistent with the development policies/strategies for the transportation sector under the current Medium Term Philippine Development Plan.