City’s flooding fix needs foreign loans, not budget insertions, lawmaker says

By Rjay Zuriaga Castor

Iloilo City Lone District Rep. Julienne Baronda is pushing for the use of Official Development Assistance loans to bankroll major flood control and drainage projects in Iloilo City, citing funding gaps in the national budget.

Baronda said tapping ODA would allow the city to pursue long-term flood mitigation projects without relying on annual allocations from the General Appropriations Act, which often depend on congressional insertions.

The lawmaker said she has initiated discussions with the Department of Public Works and Highways, the Department of Transportation, and the Philippine Ports Authority on the possibility of financing the projects through foreign-assisted loans.

Official Development Assistance refers to concessional loans and grants from foreign governments and international financial institutions extended to developing countries for economic development and social welfare projects. The Philippines has historically relied on ODA from countries such as Japan, South Korea, and China, as well as multilateral lenders like the World Bank and the Asian Development Bank, to fund large-scale infrastructure projects.

She noted that in the past, ODA funding was difficult to secure for projects considered local in nature, such as waterways under the jurisdiction of local government units rather than the national government.

“But there are revisions that we are pursuing,” she said, stressing that she has met with DPWH Senior Undersecretary Emil Sadain and Undersecretary Nick Conti, who heads the Planning and Public-Private Partnerships divisions.

As an initial step, Baronda disclosed that DPWH Secretary Vince Dizon has committed PHP 50 million to update the Iloilo City floodway study, which was first conducted in 1992.

The 1992 study, later supported by the Japan International Cooperation Agency, identified Iloilo as low-lying and flood-prone and proposed a diversion channel from the Aganan-Tigum rivers to the Iloilo Strait.

The study became the precursor to the Jaro Floodway, part of the Iloilo Flood Control Project, with civil works starting in 2004 and the first four-kilometer section completed around 2012 — two decades after the original plan.

Iloilo City has long been vulnerable to flooding due to its low-lying topography and its location at the confluence of several major river systems. The city experiences regular flooding during the typhoon season, with some areas inundated even during moderate rainfall events, affecting thousands of residents and disrupting commerce and transportation.

Baronda noted that the Iloilo Flood Control Project’s cost has ballooned from an initial PHP 4.8 billion to nearly PHP 14.8 billion due to rising construction costs, updated standards, and changes in project scope.

“It is now in the pipeline, and it will be a priority since once it is approved, with documentation, meaning the PHP 14.8 billion will not come from GAA or any insertion. Instead, the government will secure a loan, and the Department of Finance will ensure there are provisions to cover the annual interest payments,” she said.

Baronda added that both the Regional Development Council and the Department of Economy, Planning, and Development have expressed support for the proposal.

She said the support is crucial because RDC-backed projects are prioritized in the regional development plan, while projects supported by the Department of Economy, Planning, and Development are more likely to be included in the national ODA pipeline and secure loan approval.

“This is a big undertaking and a leap for Iloilo City,” she said.

Baronda warned that the city’s flooding problem is no longer driven solely by heavy rainfall but also by structural changes in both its river systems and urban landscape.

She explained that siltation of the Jaro River, caused by the gradual buildup of sand, sediment, and debris, has significantly reduced the river’s capacity to carry water.

She added that as the riverbed becomes shallower, excess water spills over more quickly during rainfall, increasing the risk of flooding in nearby communities.