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Gatchalian: ‘Overpriced’ farm-to-market roads reach P10.3B
Senator Sherwin Gatchalian on Wednesday tagged as overpriced farm-to-market road (FMR) projects in 2023 and 2024, worth a total of P10.3 billion.
At the Senate Committee on Finance’s deliberations on the proposed P176.70 billion budget of the Department of Agriculture and its attached agencies for fiscal year 2026, Gatchalian asked Agriculture Secretary Francisco Tiu Laurel Jr. if any FMR above P15,000 per meter was “overpriced.”
Tiu Laurel answered in the affirmative.
“Kasi tinitingnan namin ‘yung ibang mga gawa, like in 2024…tinignan namin ang mga projects in different areas and inilista namin ‘yung top ten, tawag namin extremely overpriced FMRs,” the senator said.
(Because we are looking at projects in different areas, like those in 2024...and we listed the top ten extremely overpriced FMRs.)
“Hindi lang ito (these are not just) extremely overpriced, [kundi] extremely, extremely, extremely overpriced, Secretary,” he added.
Tiu Laurel said he was surprised by the revelation of Gatchalian, noting that the Department of Public Works and Highways (DPWH) set the standard cost for FMRs at P15,000 per meter.
“Based on sa nakikita ko na pinapakita niyo, Mr. Chair, medyo shocking. But I guess siguro magandang itanong diyan ‘yung ating bagong secretary ng DPWH, na matulungan tayo na mahimay ito,” the DA chief said.
(Based on what you are showing, Mr. Chair, it is a bit shocking. But I guess maybe it would be good to ask our new DPWH secretary to help us solve this.)
Based on Gatchalian’s list, the ongoing concreting of the FMR in Barangay San Roque in Tacloban City, Leyte is considered the most overpriced project, at the cost of P348,432 per meter for an actual length of 0.287 kilometers.
Under the 2024 General Appropriations Act (GAA), the project was allocated P100 million for a length of 6.7 kilometers.
The contractor for the project could not be identified under the DPWH's civil works contracts database.
Gatchalian said the “cost overshoot” in fiscal year 2024 was at P6.31 billion for 871 projects, while it was at P4.03 billion for 782 projects in 2023.
“Kinompute namin ang overshoot or overpricing in 2023 and 2024, lumalabas about P10.3 billion ang overpriced farm-to-market roads, equivalent to about 683 kilometers. So ‘yung 683 km, pwede na tayong gumawa ng kalsada…two lanes all the way from Manila to Aparri,” he said.
(We computed the overshoot or overpricing in 2023 and 2024, and found that the overpriced farm-to-market roads were about P10.3 billion, equivalent to about 683 kilometers. So with 683 km, we could already build a road...two lanes all the way from Manila to Aparri.)
Gatchalian also pointed out that one of the contractors on his list was supposedly linked to former Ako Bicol Party-list Representative and House appropriations committee chairperson Zaldy Co.
“Tiningnan namin sino nakakakuha ng kontrata for 2024, galing ito sa DPWH…three of which nasa Top 15 na pinangalanan ni Presidente na contractors na nakakuha ng 20% ng total flood control projects,” Gatchalian said.
(We looked at those who got contracts in 2024, it's from the DPWH...three of which are in the Top 15 named by the President as contractors that got 20% of the total flood control projects.)
Based on the slides presented, these three companies are EGB Construction Corporation, Hi-Tone Construction & Development Corp., and Road Edge Trading & Development Services.
“Obviously, ‘yung Hi-Tone, ito ‘yung construction company na connected kay Zaldy Co. Tingin ko, hindi naman coincidental na ang pinakamalaking nakakakuha ng FMR is Region 5, tapos pangatlong pinakamaraming nakakuha is connected kay Zaldy Co,” Gatchalian added.
(Obviously, Hi-Tone is the construction company connected to Zaldy Co. I think it's not coincidental that the largest recipient of FMR is Region 5, then the third largest recipient is connected to Zaldy Co.)
In August, President Ferdinand ''Bongbong'' Marcos Jr. disclosed that 20% of the total P545 billion budget of flood control projects was awarded to only 15 contractors.
GMA News Online is getting the side of Co and will publish it as soon as it is available. —LDF, GMA Integrated News
