BBM: Zero budget for flood control projects in 2026

The proposed 2026 national budget will no longer carry new allocations for flood control projects, President Marcos said, noting that P350 billion in the 2025 appropriations remained unspent.

- ALEXIS ROMERO and HELEN FLORES

In a podcast interview aired on 24 Oras yesterday, Marcos said the Department of Budget and Management and the Department of Public Works and Highways (DPWH) would submit to Congress the revised budget proposal for 2026.

He said flood control projects would continue but would be closely monitored to ensure proper completion and quality.

ODA-funded projects delayed

Flagship infrastructure projects funded by official development assistance (ODA) under President Marcos are facing costly delays, after Congress-approved realignments diverted money elsewhere including to alleged "ghost" flood control projects - leaving the government to pay mounting fees to foreign lenders.

Budget Secretary Amenah Pangandaman told the Senate Blue Ribbon committee yesterday underfunding slowed down the implementation of foreign-assisted projects and triggered the payment of commitment fees.

"First of all, the implementation of foreign assisted projects will be slow. Second, we are paying commitment fees to creditors," Pangandaman said in Filipino, when questioned by Blue Ribbon chair Sen. Rodante Marcoleta.

Marcoleta warned that failure to meet funding requirements risks damaging the Philippines' credibility with multilateral and bilateral lenders.

"They will generate commitment fees, right? ... and then you will even sour your relations, bilateral, multilateral, whatever?" he asked.

Pangandaman replied, "That is correct." The budget chief confirmed that the Department of Public Works and Highways (DPWH) and Department of Transportation (DOT) - agencies with the largest foreign-assisted projects bear responsibility for ensur ing that ODA loans are fully supported.