MANILA – The Department of Public Works and Highways (DPWH) has significantly reduced funding for foreign-assisted flood control projects in the ratified P6.793-trillion 2026 General Appropriations Bill (GAB), dropping the allocation to P17.7 billion—a P52.3 billion cut from the original P70 billion proposed by the House of Representatives. This adjustment, part of broader scrutiny amid the ongoing P20-billion flood control corruption scandal, reflects efforts to recalibrate spending while maintaining some international commitments.
The bicameral conference committee finalized the cut in late December 2025, prioritizing transparency and efficiency. DPWH Secretary Vince Dizon had earlier defended foreign-assisted projects (FAPs) as crucial for major river basin initiatives, but lawmakers opted for deeper reductions to address underutilization and align with anti-graft measures.
Impact and Context
- Retained Funding: P17.7 billion supports ongoing FAPs with multilateral partners (e.g., Asian Development Bank, Japan International Cooperation Agency), including critical structures in Marikina, Pasig, and major rivers.
- Overall DPWH Budget: Slashed to P529.6 billion (from initial proposals over P880 billion), with zero for new locally funded flood control and emphasis on maintenance/desilting.
- Rationale: Cuts respond to delays in FAP counterpart funding, commitment fees on undisbursed loans, and calls for science-based, network-oriented flood mitigation over piecemeal projects.
Critics warn delays could incur penalties and slow disaster resilience, while proponents see it as curbing waste. The GAB awaits President Marcos’ signature in early January 2026.
Budget Comparison Snapshot (Flood Control FAPs):
| Proposal/Version | Allocation (P Billion) | Change |
|---|---|---|
| House Original | 70 | Baseline |
| Bicam Final | 17.7 | -P52.3 billion |