DOTr to lean on private partners, foreign aid as 2026 infra budget declines
Acting Transportation Secretary Giovanni Lopez
The Department of Transportation (DOTr) will allocate a smaller budget for its infrastructure outlay this year as it turns to overseas funding and private-sector partners to expedite the administration’s big-ticket projects.
Based on the DOTr’s presentation during the government’s economic briefing last week, the agency has earmarked ₱74.5 billion for its infrastructure projects this year, nearly 28 percent lower than last year’s ₱103.05 billion.
This is expected to have no impact on ongoing projects, since around 80 percent of the DOTr’s infrastructure projects are funded by official development assistance (ODA), or foreign aid.
Acting Transportation Secretary Giovanni Lopez said the DOTr can obligate around ₱60 billion or roughly 80 percent of the year’s infrastructure outlay within the first quarter to fast-track construction of major projects.
“The budget for DOTr for the entire year right now is around ₱103 billion, and the DOTr central alone is ₱75 billion. But we have unprogrammed appropriations so far as the loan proceeds are concerned,” he said.
While no details were provided in the spending plan this year, railway projects are expected to once again account for the lion’s share of the infrastructure budget.
Last year, the DOTr allotted ₱75.16 billion for railway projects, with obligations reaching 96.04 percent while disbursements were at 76.69 percent.
This funding complements the ODA loans extended to the government to help build projects such as the North–South Commuter Railway (NSCR), the Metro Manila Subway Project (MMSP), and Metro Rail Transit Line 7 (MRT-7).
As of November 2025, subway construction had reached 25.57 percent, with train test runs scheduled for 2028 and full operations targeted for 2032.
Construction of the 147-kilometer NSCR stood at 35.42 percent during the same period, with partial operations of the Valenzuela–Malolos segment set for next year, and the Malolos–Clark segment in 2028.
MRT-7, a project of San Miguel Corp. (SMC), was 81.83 percent complete, with commercial operations of its first 12 stations scheduled for next year.
Taking into account last year’s spending, the road sector is expected to receive the second-highest share in the infrastructure outlay for the year. In 2025, projects under the sector received ₱19.22 billion.
Priority road projects include the ongoing modernization of the EDSA Busway, and the construction of the Davao Public Transport Modernization Project (DPTMP) and Cebu Bus Rapid Transit.
The DOTr is also targeting to complete new road sections connecting to the South Luzon Expressway (SLEX), Cavite-Laguna Expressway (CALAX), Cavite-CALAX Link Expressway, C-5 Link Expressway, and Skyway Stage 3.
Last year, the agency allocated ₱6.9 billion for aviation-related projects.
For the year, infrastructure spending on aviation will focus on the rehabilitation of the airports in Siargao, Antique, and Laoag, as well as the continued expansion of the Ninoy Aquino International Airport (NAIA).
In 2025, the funding allocated for the maritime sector hit ₱1.71 billion, with key projects including the modernization of the ports of Balingaoan, Banago, and Amandayehan.
With lower infrastructure spending this year, Lopez said he wants to assure the public and investors that the funds will be spent efficiently to ensure they “truly address the needs of our commuters.
“With this, we are very much committed to continuing our efforts to expedite the completion of all existing projects and deliver them within the timeline,” he added.