DAM’S COST DOUBLES: Jalaur Dam price tag now pegged at P26-B

By Rjay Zuriaga Castor

The cost of completing the Jalaur River Multipurpose Project (JRMP) Stage II in Calinog, Iloilo, is now projected at PHP 26 billion – more than double its original PHP 11.2-billion budget from over a decade ago.

Iloilo Gov. Arthur Defensor Jr. confirmed in a radio interview that the updated allocation for the megadam project has been included in the 2026 General Appropriations Bill, which has already passed on third and final reading in the House of Representatives.

The PHP 6.793-trillion proposed national budget is now under Senate deliberation.

In July, Defensor wrote Budget Secretary Amenah Pangandaman, citing a Regional Development Council resolution requesting an additional PHP 5.96 billion to complete the project.

“The completion of JRMP II remains a vital priority for the Province of Iloilo and the entire Western Visayas region, as it will significantly enhance irrigation coverage, ensure water security, and boost agricultural productivity and resilience among our farmers,” he said in a follow-up letter in October.

He also emphasized that timely funding support is crucial to sustain project momentum and prevent cost escalations due to inflation and material price hikes.

The requested additional funding covers the construction of the 81-kilometer highline canal and the main lateral canals – critical components of the project’s irrigation system.

The three major dams of JRMP II – the 109-meter Jalaur High Dam, the 38.5-meter Jalaur Afterbay Dam, and the 10-meter Alibunan River Catch Dam – have already been completed.

With the PHP 5.96 billion in proposed additional funding, the total project cost would rise to PHP 26 billion.

As of 2024, aggregated data from the National Irrigation Administration (NIA) showed that total project funding had reached PHP 20.09 billion.

Of this amount, PHP 8.54 billion (42.48 percent) came from the national government, while PHP 11.56 billion (57.52 percent) was sourced through a loan from the Export-Import Bank of South Korea.

In 2024, the project was granted PHP 7.08 billion in unprogrammed funds – PHP 5 billion from the national budget and PHP 2.08 billion from the Korean loan.

JRMP II did not receive any allocation under the 2025 General Appropriations Act.

Despite the ballooning cost, NIA clarified that the increase was approved by the National Economic and Development Authority (NEDA) Board in July 2023 following a request for project restructuring.

NEDA approved an additional PHP 8.487 billion to cover inflation and rising construction costs.

“This increase in project cost was not sudden, but went through the required procedures, guidelines, and due diligence for infrastructure projects through the Investment Coordination Committee of NEDA,” NIA said.

It added that the peso’s depreciation played a major role, with the exchange rate weakening from PHP 43.10 to USD 1 in 2012 to PHP 55.68 in December 2022, significantly increasing the peso value of tax obligations and civil works costs.

NIA noted that while the peso value of the loan increased, the actual loan amount remained unchanged at USD 207 million, in line with the 2012 agreement.

JRMP II spokesperson Steve Cordero earlier explained that constructing the canal network – including 80 kilometers of highline canal and another 80 kilometers of main and lateral canals – is nearly as costly as building the dams.

He said the canal system, which spans 17 towns with the highline canal passing through nine, has numerous engineering components that drive up costs.

Korean contractor Daewoo Engineering & Construction completed about 16 kilometers of the highline canal before its contract with NIA ended on November 15, 2024.

The remaining sections of the canal system have since been divided into 13 contract packages awarded to local contractors with “Triple A” licenses.

However, the ballooning cost of the project has drawn criticism from groups such as Jalaur River for the People’s Movement (JRPM), which has long opposed the dam.

“We would really want to know why the budget of JRMP II went up from its original funding of PHP 11 billion to almost double now,” said JRPM spokesperson John Ian Alenciaga.

He also questioned the shift from Daewoo to local contractors, warning that it could open the door to inflated costs and ghost projects, citing past issues with public works.

Alenciaga further called for transparency on the source of the funds, noting that some financing in 2024 came from unprogrammed or off-budget appropriations.

“Is it easy to fund using billions of people’s money in these kinds of projects?” he said.

“Amidst the corruption issues, the people should know how taxpayers’ money is being spent.”