By The Environmental Network Jalaur River for the People Movement (JRPM) has raised serious concerns over the National Irrigation Administration’s (NIA) recent decision to transfer the construction of the remaining 65 kilometers of the Jalaur River Multipurpose Project Phase II (JRMP II) to local contractors.
The controversy centers on the withdrawal of the Korean contractor, Daewoo E&C, from the project. JRPM coordinator John Ian Alenciaga has criticized NIA’s explanation that Daewoo left due to “rugged terrain,” calling it “unbelievable” and questioning the credibility of the justification.
“We do not buy the NIA’s explanation. Daewoo can build massive monolithic projects on top of mountains. To say they cannot finish a canal because of rugged terrain is simply unbelievable,” Alenciaga said.
According to the NIA, Daewoo’s contract expired in November 2024, prompting the shift in responsibility to local contractors. However, Alenciaga argues that this violates the original terms of the funding agreement for the project, particularly because it was supposed to be a “tied loan.”
“When the loan was approved, it was clear this was a tied loan. The funder had its own contractor. Why is NIA suddenly bringing in local contractors now?” he questioned.
JRPM has raised alarms about the implications of this move, especially amid ongoing concerns about corruption and mismanagement in government infrastructure projects. The group warns that the sudden change could signal a lack of transparency and accountability.
A closer look at the project’s financials, which were disclosed by NIA via the Philippine Government Electronic Procurement System (PhilGEPS) last January, shows significant cost discrepancies. The bid invitation for the construction of the high-line canal and its related structures includes four packages totaling ₱819 million for just 6,575 meters of canal construction. This equates to an average cost of approximately ₱125 million per kilometer.
JRPM estimates that completing the remaining 65 kilometers of the canal could cost up to ₱8.125 billion. This new cost projection accounts for almost 40 percent of the project’s original budget. The group also points out that this figure is nearly equal to the additional ₱8.48 billion that NIA requested—and which President Ferdinand Marcos Jr. approved—in August 2023.
According to Alenciaga, JRMP II has ballooned into a ₱20 billion project. The funds are borrowed from South Korea’s Official Development Assistance (ODA) through KEXIM Bank, but the people are seeing none of the promised benefits.
“The loan was signed more than a decade ago, and payments are already being made. The bank is earning from it, but the people see no benefits. Instead, what we have are devastated ecosystems, loss of farmlands and livelihoods, and Tumandok lives sacrificed in the name of this so-called development,” Alenciaga said.
JRPM is now calling for full disclosure of the local contractors NIA plans to hire, as well as a transparent explanation of why Daewoo was removed from the project. The group argues that the lack of clarity surrounding the contractor change raises suspicions about potential mismanagement and corruption, particularly in light of previous infrastructure-related scandals in the country.
“From day one, this project has been riddled with lies, deception, and misinformation. The people have the right to know what is really going on behind closed doors,” Alenciaga concluded./PT
