The 2025 Philippine budget, or the 2025 General Appropriations Act (GAA), was signed by President Bongbong Marcos Jr., amounting to P6.33 trillion, reflecting a 10 percent increase aimed at supporting economic growth and poverty reduction. Notably, the Department of Public Works and Highways (DPWH) received an allocation of P1.034 trillion, underscoring the government’s commitment to infrastructure development.
The increase in the DPWH budget was subjected to criticism, with the public demanding transparency on its allocation. There was even an instance when the DPWH budget was said to be higher than the budget of the Department of Education (DepEd), contrary to the mandate of the 1987 Constitution. The President had to veto a significant amount of the DPWH budget to ensure the GAA’s compliance with the law.
A huge chunk of the DPWH budget, or nearly a quarter of it, was earmarked for flood control projects. The Philippines, situated along the Pacific Ring of Fire, experiences an average of 20 typhoons annually, leading to frequent flooding and landslides, even in urban areas. The devastating impact of these natural disasters necessitates robust infrastructure to mitigate their effects. For instance, in November 2024, twin storms inundated major cities, overwhelming existing flood control systems and highlighting the urgent need for improved infrastructure.
In the recent 5th Seminar on Disaster and Management Operations, Urban Flood Control and Dam Development held in Manila, the DPWH strengthened its collaboration with Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) to combat urban flooding and enhance water resources management across the country. The DPWH-MLIT partnership aims to advance integrated flood control solutions and Integrated Water Resources Management (IWRM) using Japan’s cutting-edge technology and engineering expertise. It also seeks to enhance cooperation among key national agencies, focusing on vulnerable areas like Metro Manila and strengthening disaster management capabilities.
With the nation’s eyes peeled on how the government will utilize its funds, it is important for infrastructure projects to push through and be fully realized. One critical component ensuring the successful execution of infrastructure projects is the implementation of surety bonds, as necessitated in our Government Procurement Act, or RA 9184, as amended.
Briefly, a surety bond is a contractual agreement among three parties: the project owner (obligee),the contractor (principal) and the surety company (surety). The surety assures the obligee that the principal will perform the contractual duties. If the contractor defaults, the surety steps in to compensate the project owner or arranges for project completion. This mechanism mitigates risks associated with contractor non-performance, financial instability, or other unforeseen issues.
With the technical complexities of flood control infrastructure, it is imperative for contractors to possess the necessary expertise and resources. With the 2025 Budget signed into law, nothing must stop its implementation, unless the Supreme Court halts it due to a question of law. The test of whether the utilization of the flood control projects is efficient will come during the rainy season, when we will see if damages are more controlled compared to previous years. Let us hope and pray for less damage inflicted and for no lives lost.
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