DAVAO Oriental is now advancing efforts to modernize its agricultural economy, with a P286.58-million road project expected to ease logistics, lower costs, and strengthen market linkages for rural producers.
The Regional Project Advisory Board (RPAB) has approved the rehabilitation and upgrading of an 8.5-kilometer Farm-to-Market Road (FMR) that will connect Barangay Mainit in Cateel to Sitio Cabasagan in Boston. Backed by funding from the Philippine Rural Development Project (PRDP) Scale-Up, the initiative is part of a broader push to enhance infrastructure that supports farm productivity and trade.
The project involves transforming the existing road into a Portland Cement Concrete Pavement (PCCP), offering a more resilient and all-weather transport route. It also includes constructing two bridges totaling 92 meters in length, which will help ensure safer, more consistent travel for farmers, traders, and residents moving between the two areas.
“Once completed, the improved road is expected to significantly cut travel time from 25 minutes to about 10 minutes, allowing faster and more efficient movement of goods and services. Traffic along the route is projected to grow by around four percent annually as accessibility improves,” Department of Agriculture-Davao Region (DA-Davao) said in its statement.
The upgraded road is expected to deliver immediate economic benefits to farmers by reducing transportation expenses and minimizing post-harvest losses. Estimates show that hauling costs could drop by 18 percent per sack and 35 percent per bundle. At the same time, losses incurred during transport are projected to decline significantly from 0.95 percent to just 0.10 percent helping improve overall returns.
Beyond cost savings, the improved infrastructure is seen to boost expansion in agricultural production. Around 23 hectares of land are expected to be brought into productive use within two years, supporting crops such as banana-cardaba, abaca, cacao, and coconut. Better road access is also likely to enable faster delivery to markets and more reliable supply chains.
The development is also set to create jobs during its construction phase, with 69 skilled positions and 164 roles for unskilled laborers expected to be generated.
Overall, about 4,285 individuals, including 903 Indigenous Peoples and 3,382 non-Indigenous residents, are projected to benefit from the enhanced connectivity and economic opportunities.
In terms of financial performance, the project reflects strong viability. It achieved an Economic Internal Rate of Return (EIRR) of 13.12 percent, surpassing the 10 percent benchmark. It also registered a Benefit-Cost Ratio (BCR) of 1.26 and a Net Present Value (NPV) of P78.77 million, indicating positive long-term gains.
Officials said the initiative demonstrates how infrastructure investments can drive rural development by improving efficiency, expanding market access, and supporting the growth of the agricultural sector in Davao Oriental. DEF