Tacloban: 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.
According to Philippines News Agency, Dizon informed reporters that the project will receive funding in 2027 and 2028 following a significant 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 remarked.
Concerns had been raised by several netizens regarding the lack of funding for the project this year, emphasizing its importance in alleviating traffic congestion and reducing flooding in the city. The proposed allocation for 2026 had been set at PHP600 million.
Also referred to as the 'Grand Canal,' the project has already secured PHP2.33 billion in funding from the 2019 and 2023 to 2025 national budgets. As reported in January 2026, construction had reached 49.38 percent completion.
The Tacloban-Palo Diversion Road is a four-lane highway extending approximately 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 designed to reduce encroachment and prevent the clogging of waterways.
The enhanced drainage system is anticipated to alleviate flooding in the villages of Candahug, Pawing, and Campetic in Palo, as well as Caibaan, San Jose, Marasbaras, and Manlurip villages, including the V and G Subdivision and Imelda Village, in Tacloban. These areas often face prolonged flooding during heavy rains and typhoons, with floodwaters occasionally taking weeks to subside.
The diversion road will also include bike lanes, sidewalks, service roads, solar streetlights, and road safety devices, potentially transforming idle and flood-prone lands into commercial zones.
