DPWH chief assures funding for Tacloban’s ‘Grand Canal’ project

TACLOBAN CITY – Department of Public Works and Highways (DPWH) Secretary Vince Dizon assured on Tuesday the completion of the PHP3.26 billion Tacloban-Palo Diversion Road by 2028 despite the absence of an allocation for the project in the agency’s 2026 budget.

Dizon told reporters that the project will receive funding in 2027 and 2028 after it was affected by a major overhaul of the DPWH’s 2026 project lineup.

“The project is assured of funding in 2027 and 2028, so this will be completed before the end of the President’s term. Even if there’s no allocation this year, there are still ongoing activities under the 2025 allocation,” Dizon said.

Several netizens earlier raised concerns over the lack of funding for the project this year, citing its importance in easing traffic congestion and reducing flooding in the city. The proposed allocation for 2026 was PHP600 million.

Also known as the “Grand Canal,” the project has already received PHP2.33 billion in funding from the 2019 and 2023 to 2025 national budgets. As of January 2026, construction is 49.38 percent complete.

The Tacloban-Palo Diversion Road is a four-lane highway stretching about 3.2 km. from San Jose District in Tacloban City to Campetic village in Palo, Leyte.

The project also includes a 16- to 22-meter-wide flood control and drainage system to be installed along the center of the road to reduce encroachment and prevent the clogging of waterways.

The larger drainage system is expected to mitigate flooding in the villages of Candahug, Pawing, and Campetic in Palo, as well as Caibaan, San Jose, Marasbaras, and Manlurip villages, including the V&G Subdivision and Imelda Village, in Tacloban.

These areas typically experience prolonged flooding during heavy rains and typhoons, with floodwaters sometimes taking weeks to recede.

The diversion road, which will also feature bike lanes, sidewalks, service roads, solar streetlights, and road safety devices, is expected to transform idle and flood-prone lands into potential commercial areas. (PNA)