DPWH Courts Japanese Funding for P34-Billion Cagayan de Oro Coastal Road

Summary

• DPWH will seek Japanese official development assistance to fast-track the P34-billion Cagayan de Oro Coastal Road Extension Phase 2 (Puerto–Gusa Section).
• The nearly 9-kilometer alignment is already under construction, with earthfilling at Villa Ernesto Phase 2 and bored piling underway for the Gusa Coastal Bridge.
• P600 million has been released for 2026 works, and DPWH has committed close to P1 billion more for 2027 — its largest single allocation for the project to date.
• A funded coastal expressway rewrites the value map for Gusa, Cugman, Puerto and the eastern CDO growth belt.

News Content

The Department of Public Works and Highways is taking the Cagayan de Oro Coastal Road extension to foreign lenders, with Secretary Vince Dizon confirming that the roughly P34-billion requirement is too large for the agency's regular infrastructure budget alone. Dizon said he intends to raise the project with Japanese partners already heavily invested in Mindanao, with the aim of folding the Puerto–Gusa section into a broader Japanese-supported road program for the region. Construction is not waiting on that decision: P600 million has been programmed for this year, including a P220-million recent release covering an ongoing bridge component, and nearly P1 billion is queued for 2027. The separate Makabalan–Bonbon Bridge, already close to completion, is set to be funded through to finish by early next year. Together the works form a continuous coastal bypass around Cagayan de Oro's congested city core.

Real Estate Outlook

Coastal bypasses convert back-lot land into frontage. Gusa, Cugman and Puerto barangays — currently mid-tier residential and light-industrial — sit directly on the alignment and stand to benefit first, with logistics yards, mid-rise residential and roadside commercial the likely uses once the Gusa Coastal Bridge lands.