Gov’t tightens noose on flood control projects

Metro Manila, Philippines - The government will rein in approvals for flood control projects by subjecting these to tighter evaluation before implementation, Finance Secretary Ralph Recto said.

The Investment Coordination Committee-Cabinet Committee (ICC), chaired by Recto, has recommended a policy to the Economy and Development Council (EDC), previously the National Economic and Development Authority Board chaired by the president, that would allow the scrutiny of flood control projects by aggregating their classification.

In a statement on Wednesday, Sept. 3, the Department of Finance (DOF) said most of the flood control projects do not undergo ICC evaluation, as current guidelines only require assessment of projects worth more than P2.5 billion.

“This results in disaggregated projects, which do not take into account possible flooding impacts to adjacent communities within a single river basin,” the agency said.

“By aggregating flood control and management projects in a single river basin, more of these projects will be subjected to the ICC evaluation, particularly in the aspects of technical, environmental, social, and economic viability, among others,” it said.

Under the resolution, the Department of Public Works and Highways will be the lead proponent agency to submit aggregated projects to the ICC.

The move was in response to calls for an audit of alleged anomalous flood control projects.

In a budget hearing on Tuesday, Recto told senators that the economy lost between P42.3 billion and P118.5 billion from 2023 to 2025 due to alleged “ghost” flood control projects, or those listed as completed and funded but were never built.

He said the amount translated to 95,000 to 266,000 potential jobs.

Former Public Works Secretary Manuel Bonoan also said 15 out of around 1,600 validated flood control projects were considered “missing” or “non-existent.” 

The ICC approved the resolution on Aug. 12, upon recommendation of the Infrastructure Development Committee Sub-Committee on Water Resources.