[1] Its objective is to improve the transport logistics and mitigate congestion in Davao City, thereby contributing to economic and social development in Mindanao.

The construction supervision of the project is headed by a joint venture of Nippon Koei Co., Ltd., Katahira and Engineers International, Nippon Engineering Consultants Co., Ltd. in association with the Philkoei International, Inc.[3] In 2015, the Japan International Cooperation Agency (JICA) signed Japanese ODA loan agreements with the Government of the Republic of the Philippines under the second Aquino administration to provide loans of up to a total of ¥33.689 billion for Metro Manila Priority Bridges Seismic Improvement Project and Davao City Bypass Construction Project (South and Center Sections).

[6] On November 19, 2021, DPWH Secretary Roger Mercado and Japanese Ambassador Kazuhiko Koshikawa led in witnessing the start of tunnel boring activity for the 2.3-kilometer (1.4 mi) twin tunnels of the project.

[7][8] In 2024, a supplemental loan of ₱14 billion was approved by the National Economic and Development Authority (NEDA) Board headed by the Marcos Jr. administration.

[10][11][12][13] Phase I (funded by a loan agreement between the Government of the Philippines and the Japan International Cooperation Agency)[13] Phase II (funded by the General Appropriations Act, is subdivided into three contract packages)[13]