For many years already, the Philippines has infrastructure projects in development with the support of the Japan International Cooperation Agency (JICA) which executes the official development assistance (ODA). The right-of-way challenges, however, are putting the projects at risk and Japan has alerted the government of the Philippines about it, according to a Manila Bulletin news report.
To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…
The Japanese government’s lead development agency said that right-of-way (ROW) hurdles, rather than the tightening Philippine fiscal envelope, pose the primary risk to the completion of multibillion-peso infrastructure flagship projects.
Takashi Baba, the Japan International Cooperation Agency (JICA) chief representative in the Philippines, said that while budget reductions are sovereign prerogative, the legal obligations of bilateral agreements necessitate that Manila provides sufficient funding for land acquisition
“At this moment, we do not see any kind of delay because of the delay of the budget, but the delay of the ROW, [and] the process,” JICA Philippines chief representative Takashi Baba told Manila Bulletin last Thursday, Jan. 22.
He noted, however, that delays in ROW acquisition have already had an impact on project implementation.
“We already observed the kind of delay of the progress of the project itself. That’s why we are carefully monitoring the progress,” Baba added.
The assurance comes as the Marcos administration navigates a tighter fiscal landscape. The national government reduced unprogrammed appropriations in the 2026 budget to ₱150.9 billion, the lowest level of standby funding since 2019.
The contraction in the budget’s “standby” category directly affects the accounting of projects like the Metro Manila Subway and the North-South Commuter Railway, which rely heavily on Official Development Assistance (ODA) under JICA.
Baba added that the budget cut in the Philippines should be respected, noting that it reflects a sovereign decision.
“It should be respected,” he said, adding that the move represents “the GOP [government of the Philippines] or the government or the Philippine people’s decision in general.”
However, Baba emphasized that under the legal requirements of bilateral agreements, “the necessary budget should be allocated by the Philippine government,” particularly for ROW financing.
“When we look at the current GAA [General Appropriations Act], we notice that it’s not sufficient to cover everything like necessary budget, [the] necessary amount should be prepared by the Philippine government,” he added, noting that they are closely monitoring the situation.
Baba also highlighted that executive agencies may face difficulties in securing sufficient funding by the middle of the year, raising concerns that funding shortfalls could lead to delays in project implementation.
He said JICA is closely coordinating with the Philippine government to secure additional funding in line with agreements between the two countries.
“We are closely monitoring and also we are keeping good relationship and discussion with the Philippine government to secure another budget to cover the necessary one, which in accordance with agreed between the two countries,” Baba said.
Let me end this piece by asking you readers: What is your reaction to this development? Do you think the right-of-way issues will delay the completion of the multi-billion Peso infrastructure projects that are supported by the Japanese? What should the national government of the Philippines do to resolve right-of-way issues?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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