‘Funding gaps may  delay  projects’

Business & Finance
21 Sep 2026 • 12:05 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

‘Funding gaps may  delay  projects’

SENATE Finance Committee Chairman JV Ejercito cited funding gaps for right-of-way (ROW) acquisition that could delay major transportation projects as the panel approved the proposed P300.96 billion budget of the Department of Transportation (DOTr) and its attached agencies for 2027.

The proposed P163.11 billion is 118.33 percent higher than the P137.85 billion budget this year.

The proposed budget will proceed to plenary deliberations for further scrutiny.

During the budget hearing on Friday, Ejercito said the government must ensure there are enough funds for ROW acquisition and compensation to prevent major projects from being stalled.

“We have major projects like the Metro Manila Subway and North-South Commuter Railway (NSCR) that are already moving, but their timelines can still be affected if we cannot secure the ROW and compensation requirements,” Ejercito said.

“We can fund the construction, but if we don’t have the right-of-way, the project can still be delayed. We also need to secure the ROW requirements first so that regardless of who is in office or which administration is in power, we can continue implementing government projects,” he said.

Acting Transportation Secretary Giovanni Lopez said substantial ROW funding is needed for various transport projects, including those in Davao and Cebu.

For the Metro Manila Subway, the DOTr requested about P40 billion for compensation to affected landowners.

The agency said the lack of funding could affect tunneling and other construction activities.

For the NSCR, overall ROW acquisition is about 78 percent. The N1 segment is about 99 percent complete in terms of ROW, while the N2 segment toward Clark is about 86 percent and still requires roughly P2 billion, according to the DOTr.

Funding for the South Manila-Calamba segment is about 64 percent acquired, with more than P20 billion potentially needed for additional ROW acquisition.

“What we are looking at here is not just how much we allocate, but whether the allocation is enough to make the projects operational. We don’t want to fund a project on paper but leave it stalled because of lack of right-of-way, compensation or other critical requirements,” Ejercito said.

He emphasized the need for long-term investments in transportation infrastructure.

“I have always advocated transport modernization and infrastructure development because this will really stimulate economic growth and spread out the development in the countryside, creating jobs and opportunities,” he said.

Ejercito also raised concerns over the absence of a separate allocation for the EDSA Busway in the proposed 2027 National Expenditure Program (NEP).

The DOTr had requested P1.756 billion for the project, but the program received no separate appropriation in the proposed NEP.

The Department of Budget and Management (DBM) confirmed that the busway project has no separate proposed appropriation under the 2027 NEP.

Lopez said the lack of funding could affect station modernization, accessibility improvements and security measures.

The DOTr is rehabilitating stations in Bagong Barrio, Balintawak and Guadalupe, while new stations are planned in Cubao, Magallanes and the Parañaque Integrated Terminal Exchange.

Ejercito said that the EDSA Busway should continue to receive adequate funding since it has proved its worth to commuters.

“Travel is faster, passenger flow is more orderly, and it has become an efficient public transport option for many people using EDSA,” Ejercito said.

“It would be a shame if we fail to provide it with sufficient funding. In the end, our fellow Filipinos want simple things: shorter travel times, safer and better public transportation, improved connectivity, and more time for their families and livelihoods,” he added.

The proposed P300.96-billion DOTr budget is 52.52 percent higher than the P197.33 billion proposed under the 2026 NEP, with P197.3 billion earmarked for rail transport.

Newswav Malaysia Best News App

Newswav is an online content aggregator and obtains its content from different online sources. The content in the app do not belong to Newswav nor do they reflect the opinions of Newswav and its staff. Your use of this app indicates your understanding and acceptance of this information.

Newswav Sdn. Bhd. (201701008480 (1222645-M)) 2026 All Rights Reserved