A congressional hearing on the Department of Public Works and Highways (DPWH) budget turned tense on Wednesday as a lawmaker revealed that billions of pesos in crucial, foreign-funded flood control projects had been completely slashed from the national budget, potentially jeopardizing Metro Manila’s resilience to catastrophic flooding.
During the hearing, Representative Isidro Ungab delivered a pointed inquiry to DPWH officials, questioning the status of major “big-ticket, high-impact” flood control projects financed through Official Development Assistance (ODA) from creditors like the Japan International Cooperation Agency (JICA), the World Bank, and the Asian Development Bank.
“These projects were complete with feasibility studies, approved by the DBCC (Development Budget Coordination Committee), approved by the Monetary Board, and had a sovereign guarantee,” Ungab stated. “What happened?”
DPWH Points to Budgetary Shortfalls
In response, DPWH Undersecretary Emil Sadain, who oversees Foreign Assisted Projects, explained the rigorous, multi-layered approval process these projects undergo, including stringent economic viability checks. However, he pinpointed the core issue: a critical lack of funding from the national government.
Sadain revealed that for 2024, the DPWH received a “zero budget” from the General Appropriations Act (GAA) for these ODA projects, relegating them to the uncertain “unprogrammed fund” category. This lack of a Certificate of Availability of Funds (CAF) has forced the suspension of procurement and bidding processes.
“The effect… can eventually result into a slowdown of implementation, the suspension or delay,” Sadain said, warning that the delays could trigger costly “commitment fees” from lenders due to missed project timelines.
“The Four Books”: Tracing the Disappearing Funds
Rep. Ungab, however, simplified the issue by presenting what he called “the four books of the budget,” tracing the projects’ journey from proposal to law.
He displayed documents showing that in the 2024 National Expenditure Program (NEP), ₱21.6 billion was allocated for 11 ODA flood control projects. This amount was faithfully copied into the first General Appropriations Bill (GAB). However, by the time the bill reached its third reading in the House of Representatives, it was reduced to ₱16.1 billion. The final GAA signed into law allocated zero pesos for these projects.
The pattern repeated for the 2025 budget. A proposed ₱27.5 billion was cut to ₱8.9 billion after the House’s third reading. While the Senate later added back ₱300 million, the final allocation of ₱9.2 billion still represents a 67% reduction from the original proposal.
“In other words, the ODA, foreign-funded projects, went to the small projects,” Ungab concluded. “So who are the members of the chop-chop gang here?”
Critical Projects at Stake
Ungab emphasized that the canceled projects are not minor works but are essential “superhighways” of flood control, including the Metro Manila Flood Control Project and the Pasig-Marikina Channel Improvement Project. He posed three urgent questions to the DPWH:
- Could these canceled projects have solved Metro Manila’s severe flooding problems?
- Did former DPWH Secretary Manuel Bonoan report this budgetary crisis to the President?
- Can the Philippines still avail of the already-approved loans after such significant delays and the payment of commitment fees?
DPWH Secretary Vince Dizon, a former finance official, acknowledged the gravity of the issue. “It’s a waste,” he said, agreeing that these long-term, big-ticket projects are vital. He committed to providing a detailed report and exploring options to potentially re-avail the loans.
The revelation has raised serious concerns about the country’s infrastructure planning and its credibility with international financial partners, with lawmakers demanding accountability for the deep cuts that threaten to leave the capital vulnerable to future floods.#
