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BusinessWorld

Gov’t won’t block ‘sound’ infra projects

THE government will not oppose Public Works projects funded through congressional budget allocations as long as the money…

Context & Analysis

The tension between congressional budget authority and fiscal accountability has shadowed Philippine infrastructure policy since the Supreme Court's landmark ruling against the Priority Development Assistance Fund more than a decade ago. Lawmakers have since found alternative routes to fund projects in their districts, often by inserting line items into the budgets of agencies like the Department of Public Works and Highways. The government's willingness to allow these allocations, provided they pass technical vetting, signals an attempt to balance legislative prerogative with the need to prevent wasteful or phantom spending.

For the construction sector, this matters because congressional allocations represent a meaningful share of the annual DPWH budget. Contractors, cement producers, steel fabricators, and equipment suppliers plan their capacity around the expected pipeline. When the government signals it will not blanket-block congressionally funded projects, it gives the industry confidence that the spending pipeline will remain intact. That confidence supports hiring, procurement, and financing decisions that ripple through provincial economies where much of this work takes place.

The qualifier — that projects must be "sound" — points to a technical evaluation process, typically handled by DPWH engineers who assess feasibility, design adequacy, and whether a proposed road, bridge, or drainage system actually serves a genuine need. In past budget cycles, the Commission on Audit has flagged projects that were either never implemented or built to substandard specifications, sometimes in locations that made little logistical sense. The vetting mechanism is meant to catch these before public funds flow out.

What to watch is how strictly this vetting is enforced in practice. Philippine budget politics has a long history of informal accommodations, where technically questionable projects survive committee hearings because of political bargaining. If enforcement is lax, the government risks repeating the ghost project problem that drew public ire in previous administrations. If it is too rigid, it could create friction with Congress and slow down the legislative budget process, which already runs against tight deadlines.

For businesses and investors tracking the Build Better More program, the key question is whether congressionally funded projects complement or dilute the executive's strategic infrastructure priorities. The most productive outcome would be a pipeline where local needs identified by lawmakers align with national connectivity goals, and where technical gates ensure that every peso allocated actually delivers usable infrastructure on the ground.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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