The government allegedly lost around ₱10.3 billion due to overpriced farm-to-market road (FMR) projects in 2023 and 2024, according to revelations made during a Senate hearing.
In Wednesday’s session of the Senate Subcommittee on Finance, which reviewed the proposed 2026 budget of the Department of Agriculture (DA), Senator Sherwin “Win” Gatchalian, who chairs the panel, raised serious concerns about the massive overpricing of several FMR projects—particularly those listed under the 2024 General Appropriations Act (GAA).
DA Secretary Francisco Tiu Laurel stated that the standard cost of an FMR is ₱15,000 per meter, and could go as low as ₱10,000 per meter if the supposed “30% commission” is removed.
However, Gatchalian cited one particular project in Barangay San Roque, Tacloban City, which cost an alarming ₱348,432.06 per meter. The road was only 287 meters long but was allocated ₱100 million under the 2024 budget.
“Hindi lang ito extremely overpriced, extremely, extremely, extremely overpriced,” Gatchalian stressed. “Ito for me obvious sign of corruption na ito eh.”
The senator also flagged another FMR project stretching from Barangay Kidaco to Barangay San Roque in Daraga, Albay, which had a ₱46 million budget for just 0.37 kilometers, or roughly ₱124,324.32 per meter.
The contractor of the Albay project was identified as Hi-Tone Construction and Development Corporation, owned by former Ako Bicol Party-list Rep. Christopher Co, the brother of former House Appropriations Chair and Ako Bicol Rep. Elizaldy “Zaldy” Co—who has been linked to the controversial flood control project scandal.
Gatchalian disclosed that the largest allocations for FMR projects were concentrated in the Bicol Region and Eastern Visayas, raising suspicions of political favoritism.
“Tingin ko hindi naman coincidental na ang pinakamalaking nakakuha ng FMR is Region 5 tapos pangatlong pinakamara¬ming nakuhang kontrata is connected kay Zaldy Co,” he said.
For his part, Secretary Tiu Laurel distanced himself from the irregularities, saying that most of the overpriced FMRs were approved before his appointment as DA chief.
“Many of these projects were implemented before my time,” he said.
The Senate subcommittee is expected to summon more officials and contractors involved as it expands its inquiry into what appears to be another multimillion-peso infrastructure scandal.