SENATOR Alan Peter Cayetano has urged the Department of Public Works and Highways (DPWH) to bolster accountability in handling government loans due to unclear legislative authority for certain loan-funded infrastructure projects.

Cayetano criticized concerned government agencies for not adhering to the standard process when contracting loans for their projects.

He pointed out that excluding these loans from the budget proposals for congressional 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 fiscal policies and foreign debt ceilings.

“We can only spend money that is appropriated,” Cayetano stressed.

“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 DPWH to be “extra careful” in consulting local governments and Congress about projects funded by loans to prevent future disputes.

He adverted to past instances whereby stakeholder engagement was either insufficient or entirely absent, leading to unresolved issues.

Cayetano cited as example the Laguna Lakeshore Highway Project which affects various areas, including Taguig City.

He noted that despite repeated calls for consultation on major concerns such as traffic congestion and the potential impact on ancestral homes that remained unresolved.

The senator also raised issues 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.

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