Foreign assisted projects

In an episode of the BBM Podcast that aired last Aug. 4, BBM stressed the importance of ensuring that the national budget allocates sufficient funding for FAPs, warning that budget “insertions” have jeopardized vital infrastructure initiatives and damaged the country’s credibility with international financial institutions.

- BOO CHANCO

Yet, two FAPs under the Department of Transportation took major hits in the recently approved 2026 budget, which could affect their implementation timeline and incur higher commitment (delay penalty) fees.

Was BBM’s sentiment being ignored by legislators? Did BBM know what he was signing when he approved the NEP?

The Metro Manila Subway Project Phase 1 (MMSP1) ended up in the 2026 national budget with only P20.4 billion in funding from the original P39.2-billion proposal, while the North-South Commuter Railway (NSCR) system had its budget halved from P57.6 billion to P28.8 billion.

Congress had been habitually sabotaging vital infrastructure projects funded by foreign donor countries.

“For four straight budget cycles, billions of pesos meant for airports, railways, mass transport, flood control, and climate protection were quietly pulled out of the national budget. The projects were approved. The loans were negotiated. The need was undeniable. And yet, year after year, the funding was stripped away at the last moment.

“What followed was not fiscal discipline. It was paralysis. Idle loans. Delayed infrastructure. Rising costs. Missed jobs. And communities left exposed to floods, congestion, and high prices — while public money flowed elsewhere.

“This has been the fate of the Philippines’ foreign-assisted projects since 2023. This is not a debate about foreign borrowing. It is about who derailed development — and who is paying for it,” former budget secretary Butch Abad wrote in a paper, a copy of which he sent me.