Tacloban:<Text>

The Department of Public Works and Highways (DPWH) is pushing for funding for the PHP3.26-billion Tacloban-Palo Diversion Road in 2027, after the release of outlay for the ongoing construction was affected by the agency's major overhaul of its 2026 project lineup.

According to Philippines News Agency, in a media interview Wednesday, DPWH Eastern Visayas Regional Director Edgar Tabacon said they are upbeat that the project will be funded next year with its significant impact in curbing traffic congestion and flooding in this city and nearby town of Palo. "Although there's no funding in 2026, we still have ongoing activities under the 2025 budget. Every year, we ask for a budget proposal, but its approval is not within our control. For 2027, we are confident of getting funds for this," Tabacon said.

Also known as 'Grand Canal,' the project has already received an allocation of PHP2.33 billion from the 2019 and 2023 to 2025 annual budgets. As of January 2026, the project is 49.38 percent complete. The Tacloban-Palo Diversion Road is a four-lane highway extending some 3.2 kilometers, from San Jose district in Tacloban City to Campetic village in Palo town.

The project also includes a 16 to 22-meter flood control and drainage system, which will be installed along the center of the road to reduce encroachment and prevent clogging of waterways. Bigger drainage will mitigate flooding in the villages of Candahug, Pawing, and Campetic in Palo town; and in Caibaan, San Jose, Marasbaras, Manlurip, as well as in V and G Subdivision and Imelda Village here. These areas typically become swamps during the rainy and typhoon seasons, and it can take weeks for the floodwaters to recede.

The diversion road, which will also include bike lanes, sidewalks, service roads, solar streetlights, and road safety devices, is expected to convert idle, flood-prone lands into prime commercial areas.