SENATOR Alan Peter Cayetano has urged the Department of Public Works and Highways (DPWH) to exercise greater accountability in handling government loans, citing the absence of clear legislative authority for certain loan-funded infrastructure projects. 

During the recent deliberation for the proposed 2025 budget of the DPWH, Cayetano criticized the practice of government agencies contracting loans for their projects without adhering to the standard process.

He pointed out that excluding these loans from the budget proposals for Congress’ consideration and approval circumvents Congress’ power of the purse.

Under standard process, government agencies must submit their project proposals to the Department of Budget and Management (DBM) and the National Economic and Development Authority (NEDA) for review and approval.

The proposals must also undergo review by the Department of Finance (DOF) to ensure alignment with fiscal policies and repayment capacity, as well as approval by the Bangko Sentral ng Pilipinas (BSP) Monetary Board to comply with monetary policies and foreign debt ceilings.

“We can only spend money that is appropriated,” Senator Cayetano said. “That is what’s in the Constitution. However, there is no law from the executive in borrowing money and then we ask this question, where is this legislative authority to release the money?” he added.

The senator also reminded the agency to be “extra careful” in consulting local governments and Congress about projects funded by loans to prevent future disputes.

He pointed to past instances in which stakeholder engagement was either insufficient or entirely absent, leading to unresolved issues. 

Cayetano brought up the Laguna Lakeshore Highway Project which affects various areas, including the City of Taguig.

He noted that despite repeated calls for consultation, major concerns — such as traffic congestion and the potential impact on ancestral homes — remain unaddressed. 

“Y’ung Laguna Lakeshore Highway during the time of P-Noy [President Benigno Aquino], PPP [Public Private Partnership] ‘yan. During the time of P-Noy, kinonsulta Senado, kinonsulta local government, congressman, [pero] hindi niyo kami [City of Taguig] kinunsulta,” he said.

The senator also raised concerns about the proposed Pasig River Expressway (PAREX), echoing criticism from urban planners and environmental advocates.

He asked why the Philippines would build a highway over a river when other countries are removing similar structures to improve urban environments.

“I’m sorry if I’m emotional because this really affects lives. Mr. Secretary [Manuel Bonoan], we’ve asked this question a thousand times. Consultation doesn’t just mean a dialogue or meeting. It doesn’t also mean na ‘pag ‘di pumayag, ‘di matutuloy. It means na kunin niyo sagot. Kung ayaw, bakit? ‘Pag sinabing OK, OK,” he said.

Cayetano proposed that the DPWH Secretary issue a memorandum defining what constitutes proper consultation to avoid misunderstandings in the future. 

“I’m for these projects but maybe the [DPWH] Secretary can issue a memorandum of what a ‘consultation’ is para klaro sa lahat,” he said. 