Group slams NIA over Jalaur project contractor shift

By Juliane Judilla

The Environmental Network Jalaur River for the People Movement (JRPM) raised concerns over the National Irrigation Administration’s (NIA) decision to transfer construction of the remaining 65 kilometers of the Jalaur River Multipurpose Project Phase II (JRMP II) to local contractors.

The controversy stems from the withdrawal of Korean contractor Daewoo E&C from the project.

JRPM coordinator John Ian Alenciaga questioned NIA’s explanation that Daewoo left due to “rugged terrain,” calling it “unbelievable.”

“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.

NIA said Daewoo’s contract expired in November 2024, which prompted the shift to local contractors.

Alenciaga argued that this violates the original funding agreement because the project was supposed to be under 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 asked.

JRPM warned that the sudden change could indicate a lack of transparency and accountability, citing recurring corruption and mismanagement in infrastructure projects.

Project financials disclosed by NIA through the Philippine Government Electronic Procurement System in January showed cost discrepancies.

The bid invitation for the construction of the high-line canal and related structures included four packages worth PHP 819 million for just 6,575 meters of canal construction.

JRPM said this equates to an average cost of PHP 125 million per kilometer.

The group estimated that completing the remaining 65 kilometers of canal could cost up to PHP 8.125 billion.

That figure accounts for nearly 40% of the project’s original budget and is almost equal to the additional PHP 8.48 billion that NIA requested and President Ferdinand Marcos Jr. approved in August 2023.

According to Alenciaga, JRMP II has ballooned into a PHP 20 billion project.

The funds come from South Korea’s Official Development Assistance through KEXIM Bank, but Alenciaga said 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 called for full disclosure of the local contractors that NIA plans to hire and a transparent explanation of why Daewoo was removed from the project.

The group said the lack of clarity fuels suspicion of mismanagement and corruption, especially given the country’s history of infrastructure-related scandals.

“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 said.