The Department of Public Works and Highways (DPWH) has awarded the civil works contract for the initial implementation of the Davao City Bypass bypass package I-1 Project to the joint venture group of Shimizu - Ulticon - Takenaka. The scope of works involves the construction of 10.7 kilometers of four (4) lane highway inclusive of a 2.3-kilometer tunnel with an estimated investment of PHP 13.23 billion (US$ 273.63 million). The construction works are expected to be completed within 37 months of commencement.

The entire bypass road with a total length of 45.5 kilometers is divided into six (6) packages: package I-1 (10.7 km), package I-2 (12.8 km), package I-3 (6.1 km), package II-1 (2.7 km), package II-2 (3.5 km), and package II-3 (9.7 km). This bypass road will mitigate congestions in Davao City with the travel time between Brgy.

Davao City Bypass Construction Project will be funded by the Japanese Official Development Assistance signed last June providing the Government of the Philippines with a Special Terms for Economic Partnership (STEP) Loan from JICA.