Government flood control project is being handled by a 5-member construction firm 'Gipakyaw'
President Ferdinand 'Bongbong' Marcos Jr. has expressed serious concerns over the concentration of flood control project contracts, as five construction companies have secured a significant share of the total budget for these projects.
The five companies – Legacy Construction Corporation, Alpha & Omega Gen. Contractor & Development Corp., St. Timothy Construction Corporation, EGB Construction Corporation, and Road Edge Trading & Development Services – have projects in almost every region under the president's administration. This high concentration has led to these companies receiving a total of P100 billion, or about 18 percent of the total P545-billion budget for flood mitigation projects from July 2022 to May 2025.
The president's concerns stem from the fact that there are over 2,400 accredited contractors, yet these five firms have cornered a large share of the projects. This situation, which Marcos described as "disturbing," has prompted an audit and investigation into these projects.
The reasons behind the choice of these specific firms have not been publicly explained in detail, but the pattern suggests possible favoritism or irregularities in awarding contracts. The president raised issues such as a mismatch between flood-prone provinces and where flood control projects were implemented, and the fact that 64 percent of flood control projects lacked clear project descriptions or had identical contract costs despite being in different locations.
These concerns have led to scrutiny by government audits and legislative inquiries, with the Senate even planning to subpoena the owners of these top contractors as part of a probe into these big flood control projects.
In addition to these five companies, other construction firms with contracts for flood control projects include Topnotch Catalyst Builders Inc., Centerways Construction and Development Inc., Sunwest, Inc., and a list of 10 other companies such as Hi-Tone Construction & Development Corp., Triple 8 Construction & Supply, Inc., and L.R. Tiqui Builders, Inc.
President Marcos emphasized the importance of local government involvement and local contractors for better coordination and a personal touch. He also pointed out that having 50 projects, each with a cost of P150 million, is impossible for a single barangay, even if they are neighbouring, to have the exact same project, the exact same amount, and the exact same contractor.
The government initiated and started 9,855 flood control projects nationwide between July 2022 and May 2025, with a total cost of P545.64 billion. The president's concerns over the concentration of contracts and the need for transparency and fairness in the awarding of these contracts continue to be a topic of discussion and investigation.
[1] GMA News Online. (2025, August 12). Marcos raises concerns over concentration of flood control project contracts. Retrieved from https://www.gmanetwork.com/news/news/nation/822343/marcos-raises-concerns-over-concentration-of-flood-control-project-contracts/story/
[4] Rappler. (2025, August 13). Senate to subpoena owners of top flood control project contractors. Retrieved from https://www.rappler.com/nation/government/380334-senate-to-subpoena-owners-of-top-flood-control-project-contractors
[5] Philippine Star. (2025, August 14). Marcos orders audit, investigation into flood control projects. Retrieved from https://www.philstar.com/headlines/2025/08/14/2160917/marcos-orders-audit-investigation-into-flood-control-projects
- The president's concerns about flood control project contracts have led to discussions surrounding business ethics, finance, and industry, as five companies have secured a significant share of a P545-billion budget, raising questions about transparency and fairness.
- Given the high concentration of flood control projects awarded to a handful of companies, President Marcos Jr. has called for local government involvement and partnerships with local contractors, aiming for better coordination and fair distribution of projects within various regions of the industry.
