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01/04/2026

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01/04/2026
LAWIN.news

DPWH slashes budget for foreign-funded flood control projects

by LAWIN.news January 3, 2026
written by LAWIN.news January 3, 2026
Photo credit: Inquirer.net
17

MANILA — All foreign-funded flood control projects under the Department of Public Works and Highways (DPWH) were given reduced allocations in the proposed 2026 national budget after Congress approved broad cuts to foreign-assisted projects, budget documents show.

A comparison of the National Expenditure Program prepared by the Department of Budget and Management and the 2026 General Appropriations Bill approved last month showed that all 10 DPWH foreign-funded flood control projects received smaller budgets. Four projects were cut by more than half, while the remaining projects lost about a quarter of their proposed funding.

The Cavite Industrial Area Flood Risk Management Project, funded by the Japan International Cooperation Agency, recorded the largest reduction. Its proposed budget of P3.961 billion was reduced to P566.5 million under the approved bill.

The Integrated Flood Resilience and Adaptation Phase 1 Project, funded by the Asian Development Bank, saw its allocation drop from P1.484 billion to P648.9 million, a reduction of P835.2 million. The project aims to develop a strategic flood risk management plan for selected major river basins and improve flood and climate resilience.

Funding for the Metro Manila Flood Management Project Phase 1, supported by the World Bank, was also reduced. The project will receive P470.4 million in 2026, down from the proposed P1.253 billion. The project involves the construction of 20 pumping stations in Manila and was originally scheduled for completion in 2024 but was delayed partly due to insufficient government counterpart funding. The delay has resulted in at least P27 million in commitment fees.

Phase IV of the Pasig–Marikina River Channel Improvement Project, also funded by Jica, had its budget cut from P7.4 billion to P1.8 billion, reflecting a reduction of P5.6 billion.

The reductions reflect overall decreases in allocations for foreign-assisted projects in the 2026 budget, which affected all DPWH flood control initiatives funded by international partners.

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