A severe El Niño could disrupt the Philippines’ infrastructure program in early 2027, potentially slowing project implementation as the government prepares for weather-related challenges, the Department of Budget and Management (DBM) said.
The warning comes as the government plans to increase infrastructure spending next year. The proposed 2027 budget includes P1.47 trillion for the broader infrastructure program, equivalent to about 4.4% of gross domestic product. The proposed allocation is 13.8% higher than the P1.29 trillion provided in the 2026 budget.
DBM officials said the effects of El Niño could affect the pace at which infrastructure projects are implemented, particularly if severe dry conditions create operational difficulties or require government agencies to redirect resources toward disaster response and other urgent needs.
The concern comes as PAGASA forecasts potentially severe dry conditions through early 2027. Recent projections indicate that drought, dry spells and other El Niño-related impacts could affect as many as 85 provinces through March next year.
The government has already begun preparing for the potential effects. DBM said agencies are front-loading assistance for farmers, including fertilizer and fuel support, while irrigation projects and other measures are being considered to protect agricultural production and food security.
A proposed P45.67-billion National Disaster Risk Reduction and Management Fund for 2027 would also provide an additional fiscal buffer for El Niño and other disasters. The proposed fund is 14.68% higher than its 2026 allocation and includes resources for disaster preparedness, response, rehabilitation and reconstruction.
The potential disruption comes as the government seeks to accelerate major infrastructure projects nationwide. The proposed 2027 budget includes P643.95 billion for the Department of Public Works and Highways, 21.29% higher than its 2026 allocation, with funding directed toward projects involving roads, bridges, flood control, water resources and regional connectivity.
Among the major projects included are the Laguna Lakeshore Road Network, Bataan-Cavite Interlink Bridge, Davao City Bypass, Cebu-Mactan Bridge and Coastal Road, and the Pasig-Marikina River Channel Improvement Project.
Beyond infrastructure, government officials have warned that a strong El Niño could affect agriculture, water supplies, electricity availability and economic activity. The government is therefore balancing planned development spending with preparations for possible weather-related disruptions.
How severely infrastructure spending is affected will depend on the intensity and duration of El Niño conditions, as well as the government’s ability to keep projects moving while responding to emerging climate-related needs.
