The proposed restructuring of the Samal Island-Davao City Connector Project has cleared a key government review, bringing the toll-free bridge closer to final approval as officials seek to improve mobility, commerce and access to essential services in the region.
The Investment Coordination Committee-Cabinet Committee (ICC-CC), co-chaired by Finance Secretary Frederick Go, approved the restructuring on October 22 and endorsed it to the Economic Development Council for final approval. The council is chaired by President Ferdinand Marcos Jr.
Designed as a four-lane crossing capable of accommodating about 25,000 vehicles daily, the bridge is expected to cut travel between Davao City and Samal Island to five minutes from the current 30 to 50 minutes, reducing residents’ reliance on ferry services.
The shorter journey could benefit businesses on both sides of the channel by making deliveries more predictable, improving access to workers and customers, and supporting tourism in Samal, a popular island destination. Residents could also reach healthcare facilities and other services in Davao City more conveniently.
“By improving connectivity between Davao City and Samal Island, we are supporting local businesses and creating more opportunities for communities,” Go said.
However, the restructuring’s implications for the project’s financial and construction arrangements remain unclear. The government’s 2026 Budget of Expenditures and Sources of Financing lists the project at P23.04 billion, but the announcement did not specify whether the revised arrangement would affect its total cost, funding structure or completion schedule.
Under a financing agreement signed in 2022, China extended a 2.34-billion-renminbi loan, then equivalent to about P17.39 billion, to finance 90 percent of the P19.32-billion design-and-build contract. The loan carries an annual interest rate of 2 percent and a 20-year repayment period, including a seven-year grace period.
The difference between the original contract value and the project’s 2026 budget allocation underscores the importance of clarifying the restructuring’s financial terms as the proposal advances.
Final approval by the Economic Development Council remains pending. Until the revised terms and implementation timeline are disclosed, the bridge’s projected travel savings and broader economic benefits remain dependent on the project’s eventual delivery.
