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Soaring Fuel Prices Stall Philippine Farm-to-Market Road Construction

Business
April 23, 2026 · 2:01 AM
Soaring Fuel Prices Stall Philippine Farm-to-Market Road Construction

The Department of Agriculture (DA) in the Philippines has postponed the launch of nationwide farm-to-market road (FMR) projects by approximately one month, citing escalating fuel costs linked to the ongoing Middle East conflict.

Originally scheduled to commence construction in April, the agency now plans to initiate the bidding process in May as it revises construction budgets. The DA received a P33 billion allocation under the 2026 General Appropriations Act, earmarked for 1,605 infrastructure projects aimed at improving rural connectivity.

"We expect that by May, we will begin the procurement process for all these bidding activities," stated Agriculture Undersecretary Arrey Perez.

"Our challenge now is that because fuel prices are rising, we cannot finalize the costing per kilometer of our road projects."

Perez explained that the DA is collaborating with the Department of Public Works and Highways (DPWH) to establish standardized pricing per kilometer for upcoming projects. Agriculture Assistant Secretary Arnel de Mesa emphasized the necessity of these adjustments, noting, "If we insist on using the previous costing, the bidding will likely fail. We need to make the necessary adjustments to ensure that our procurement and implementation are successful."

Despite the delay, Perez confirmed that ongoing FMR projects managed by other agencies will proceed without interruption.

This year marks a significant transition, with the DA taking over FMR construction responsibilities from the DPWH. The shift follows concerns about corruption in government infrastructure projects. While leading implementation, the DA retains the flexibility to partner with government agencies, local governments, or private entities to complete the work.

To promote transparency, the agency has implemented measures including project audits and a dedicated FMR transparency portal. This digital platform allows stakeholders to monitor progress and report issues.

According to DA data, the government has invested P109.53 billion in FMR development between 2021 and 2026, funding 6,428 projects. Of these, 3,135 projects spanning 2,399.85 kilometers have been completed.