By Melvin C. Gascon
A handful of firms cornered a disproportionate number of contracts of the flood control projects in Isabela, data from Sumbong sa Pangulo showed, raising questions about concentration, political links, and possible conflicts of interest in government procurement.
An analysis of 335 projects distributed among 58 contractor entities showed a highly skewed distribution, with three contractors cornering nearly 28 percent of all contracts.
Dragon Twelve Builders & Construction Supply, JWU Construction and Supply, and Danysons Construction and Development Corp. bagged a total 92 projects, records showed.
While the average number of contracts per entity stood at only 5.8, up to 75 percent of contractors received five or fewer projects, which indicates a wide gap between the top-performing firms and the rest of the field.
Isabela, which ranked third among all provinces in total flood control allocation between 2022 and 2025, has emerged as a hotspot for infrastructure spending, drawing scrutiny over the high concentration of contracts among a few contractors.
Dragon Twelve Builders’ 1st District Dominance
Dragon Twelve Builders & Construction Supply, owned by the brother of Ilagan City Mayor Josemarie “Jay” Diaz, has drawn scrutiny for its overwhelming concentration of contracts in Isabela’s 1st Legislative District.
Government records show that the firm bagged around 16 flood control projects worth over ₱1.076 billion in Ilagan City and neighboring towns between 2022 and 2025.
This is equivalent to about 69 percent of the total flood control funds handled by the Department of Public Works and Highways (DPWH) Isabela First District Engineering Office.
Mayor Diaz has denied any conflict of interest, saying the contracts are “national and congressional projects” awarded through the DPWH’s regular bidding process.
Dragon Twelve was flagged in 2021 for substantial delays in project implementation.
In the data review, the firm showed a 97.1 percent concentration of its 35 total contracts in the 1st District, suggesting a near monopoly in that area.
EGB Construction as National Player with Local Ties
Another dominant contractor, EGB Construction Corp., has also faced scrutiny for potential conflicts of interest.
The firm is owned by Engineer Erni Baggao, who simultaneously serves as General Manager of Isabela Electric Cooperative II (ISELCO II) and was a former independent director representing contractors on the Philippine Contractors Accreditation Board (PCAB).
Sen. Panfilo Lacson earlier called for an investigation into EGB’s contracts, citing its owner’s role in the licensing board while the company received government-funded projects.
EGB is one of the five national firms that collectively cornered over ₱40 billion in flood control projects between 2022 and 2025, with 97 projects worth ₱7.98 billion under its name.
The Baggao family–owned firm, incorporated in 2021 with ₱260 million capital, expanded to ₱900 million as it grew its project portfolio.
Sen. Sherwin Gatchalian, Senate finance chair, flagged EGB for receiving the second-highest amount of farm-to-market road project awards in 2024.
In Isabela, EGB was among five contractors with a broad operational scope, working across four of the province’s six districts.
Discaya Firms Stamp Footprint in Isabela
Two other major contractors with national presence — St. Timothy Construction Corp. and Alpha & Omega General Contractor and Development Corp. were also awarded flood control projects in remote Dinapigue town, also in the 4th District.
The companies are linked to Pacifico “Curlee” Discaya II and Cezarah Rowena “Sarah” Discaya, whose firms have been included among the top 15 contractors nationwide, each securing over 100 projects worth more than ₱7 billion between 2022 and 2025.
In Isabela, Alpha & Omega’s presence was marked by a ₱49-million flood control project, which analysts described as potentially anomalous due to the high logistical costs for a Manila-based contractor operating in an isolated area.
One related company, St. Gerrard Construction, was previously blacklisted by the DPWH for a year for project delays. It was the contractor for the controversial Santiago City bypass road project.
Skewed Provincial Distribution
Beyond the top firms, the data analysis showed that some contractors appeared specialized or favored within specific districts.
- V.B. Manubay Construction had 85.7 percent of its 21 contracts in the 4th District.
- Dalcon Construction likewise concentrated 85.7 percent of its 14 contracts** in the same district.
- YZK Builders and Camberwell Construction operated exclusively in the 2nd District.
Five contractor entities, led by JWU Construction and Supply, operated in all six districts.
This could suggest a geographically diverse project portfolio, suggesting limited competition and highly localized contracting practices across the province. #
