The Department of Agriculture broke ground last week on the P310.9-million Pangawan-Banao farm-to-market road in Nueva Vizcaya, aiming to improve market access for farmers in highland towns through a World Bank-backed infrastructure project.
The 10.86-kilometer project in Kayapa carries a total cost of about P28.6 million per kilometer, according to the Department of Agriculture. Financing for the initiative comes from a P248.7-million World Bank loan, supplemented by P31.1 million from the national government and an equal P31.1 million in equity from the local government unit.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. emphasized the necessity of the infrastructure during the launch. “Road projects are crucial in giving our farmers direct market access, reducing production and transport costs, and ensuring food security… By bridging remote farmlands to commercial hubs, we lower consumer food prices, curb everyday expenses, and power sustainable rural development nationwide,” Laurel said.
Funding Structure and Project Execution
The official start of construction, held on September 24, drew regional officials including DA Undersecretary Arrey A. Perez, Representative Atty. Timothy Joseph E. Cayton, Governor Atty. Jose V. Gambito, and Mayor Elizabeth D. Balasya. Project records from the DA Philippine Rural Development Project website show that the contract was awarded to Omengan Construction and Development Corp.
The project’s per-kilometer expenditure runs nearly twice the P15-million average that the department has previously cited for a standard two-lane concrete farm-to-market road, though officials note that terrain and construction scope heavily influence final expenses. The Department of Agriculture assumed oversight of the farm-to-market road portfolio earlier this year, taking over duties previously managed by the Department of Public Works and Highways following budget reductions tied to 2025 flood control scandals.
Did You Know? The Pangawan-Banao Farm-to-Market Road project is designed to span an agricultural zone covering 4,191 hectares of land primarily dedicated to high-value vegetables and coffee cultivation.
Expected Economic Impact and Safeguards
Once completed, the infrastructure is projected to cut travel times and transport losses by at least 50 percent. Planners also expect agricultural hauling costs to drop by 25 percent, input transport expenses to fall by 17 percent, and user traffic to grow by 2 percent annually.
The regional upgrade is set to directly benefit 1,078 residents across Barangays Pangawan and Banao, encompassing 251 indigenous families and 192 farming families. Department projections also indicate that tomato and coffee farming areas could expand by 2 percent and 1 percent per year, respectively.
These developments unfold amid broader national oversight of agricultural infrastructure spending. In January, Senator Francis “Kiko” Pangilinan issued warnings regarding the strict accountability measures and Senate hearings facing anyone attempting to misuse or steal farm-to-market road funds. Concurrently, the Department of Agrarian Reform reported that 537 similar road projects totaling 435.807 kilometers had been completed nationwide since the start of the administration in 2022, benefiting 155,123 agrarian reform beneficiaries.
Frequently Asked Questions
What is the total cost of the Pangawan-Banao farm-to-market road?
The project costs P310.9 million in total, which breaks down to about P28.6 million per kilometer for the 10.86-kilometer stretch.
How is the project financed?
The funding relies on a P248.7-million loan from the World Bank, alongside P31.1 million from the national government and P31.1 million in local government equity.
Who benefits directly from the new road?
The road serves 4,191 hectares of farmland and directly benefits 1,078 residents, including 251 indigenous families and 192 farming families across Barangays Pangawan and Banao.
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