Ejercito later told DAILY TRIBUNE in an exclusive interview that the problems stemmed from the deep congressional cuts.
Headline says it all Sen. JV Ejercito raises a copy of Thursday’s DAILY TRIBUNE, reporting on P1.4 trillion in insertions that robbed railway projects of funding, during Senate budgetary deliberations.
Photograph courtesy of Senate Public Relations and Information Bureau
Senator Joseph Victor “JV” Ejercito on Thursday expressed frustration over major delays in the expansion of the Philippine National Railways (PNR) and the construction of the Metro Manila Subway Project (MMSP), blaming Congress for gutting billions from the original funding allocations.
During the Senate deliberations on the Department of Transportation budget, Ejercito pressed DoTr officials to explain why Phase 1 of the railway expansion program had been pushed back from its 2028 target completion date to 2032.
“The bulk of the DoTr budget is for the railway, so this is very important,” Ejercito said, underscoring the critical role the railway plays in national modernization efforts. PNR officials cited budget constraints and right-of-way problems as the primary causes of the delay.
Ejercito later told DAILY TRIBUNE in an exclusive interview that the problems stemmed from deep congressional cuts that derailed two of President Ferdinand Marcos Jr.’s flagship infrastructure projects: the P488.5-billion MMSP and the P873.6-billion North-South Commuter Railway (NSCR).
Together, the two projects have a combined price tag of P1.4 trillion. The projects, key components of the administration’s Build Better More program, are financed mainly through loans from the Japan International Cooperation Agency, with the Philippine government shouldering its equity contribution through the programmed appropriations in the national budget.
Ejercito said, however, that Congress diverted these allocations to legislators’ “pet projects.”
“What happened was that the President got very upset because the JICA went to him and complained about the delays brought about by this,” Ejercito said, noting that funds were released only in the third quarter of 2025.
Big-ticket items
House Senior Deputy Minority Leader Edgar Erice earlier revealed that congressional “insertions” in the 2023 to 2025 General Appropriations Acts ballooned to P1.45 trillion, displacing funding for more than 15 big-ticket projects, including the MMSP and NSCR.
During the hearing, Ejercito brandished a copy of DAILY TRIBUNE that had the Erice story for its headline: “P1.45-T insertions derail subway, PNR projects.”
Ejercito pointed to resigned Ako Bicol Rep. Elizaldy Co, the former House appropriations chair, as the one responsible for redirecting the allocations for the railway projects from the PA to the unprogrammed appropriations (UA) in the budgets.
“They prioritized their own projects in the programmed [appropriations], not realizing the consequences, which really caused delays with the loan proceeds and the contractors,” he said.
Unprogrammed appropriations may only be accessed if the government earns more revenue than expected or receives additional foreign aid. Typically, these are reserved for emergencies or unforeseen project requirements.
Acting DoTr Secretary Giovanni Lopez confirmed that the funding for the MMSP and NSCR had been repeatedly slashed in the 2023, 2024, and 2025 national budgets to make room for congressional insertions.
“One of the reasons is, again, the budget constraints. They are not placed under the programmed appropriations, and of course, there’s the right-of-way issue, which is also dependent on budget availability,” Lopez told the Senate committee on finance.
P300-B cut
Initially, the 2023 National Expenditure Program endorsed by President Marcos allocated P26.2 billion for the MMSP and P71.5 billion for the NSCR. But by the time the 2023 General Appropriations Act was passed, Lopez said the total funding had been slashed by P65 billion, leaving just P11.2 billion and P25 billion for the two projects, respectively.
In the 2024 NEP, the DoTr was allocated P68.3 billion for the subway and P76.3 billion for the NSCR, but in the enacted GAA, both projects received zero funding. For 2025, proposed allocations of P39.3 billion and P63.9 billion were again reduced to P7.8 billion and P9.4 billion, respectively.
Lopez said Congress deprived the two projects of nearly P300 billion in three years, forcing the reliance on the UA.
Ejercito, who was the DoTr’s budget sponsor, vowed to ensure that both the loan proceeds and the government counterpart funding “will be lodged under the programmed appropriations.”
He also confirmed that the massive cuts and budget irregularities contributed to the leadership shakeup in Congress that saw the resignation of Martin Romualdez as speaker and Co as a congressman.
The President had targeted the end of his term in 2028 for the completion of both the subway and commuter rail projects. But according to Lopez, the lack of programmed funding has pushed the timelines back by at least four years.
Ejercito warned that the continuing delays will affect not only the projects’ completion but also the country’s credibility with Japan, one of its most important development partners.
“The delays have tarnished our reputation,” he said. “It could affect our diplomatic ties with a long-time ally that has always been committed to helping us modernize.”
For a country choking daily in traffic and inefficiency, Ejercito said the failure to fund critical transport projects reflects a “serious lack of foresight.” He urged the government to restore the full funding to keep the rail projects on track.
