As SBK clarifies water supply projects: Contractors back Dakay

Meanwhile, amid questions linking two bulk water supply projects in Cebu province to St. Gerard Construction—a firm owned by the controversial Discaya for alleged involvement in questionable flood control projects across the country—the SBK Construction General Contractor & Development Corp. clarified that it initiated the projects and only tapped St. Gerard to comply with licensing rules.

In a phone interview with The Freeman, Atty. Joe Kenneth Arbas, the authorized managing officer of SBK stressed that his firm was the main proponent of the Alegria and Malabuyoc bulk water projects, but had to enter into a joint venture with St. Gerard Construction due to licensing requirements.

“This is a joint venture project, dili jud ni kang Discaya lang na project,” Arbas said, pointing out that his company needed a Philippine Contractors Accreditation Board (PCAB)-accredited partner to qualify.

He explained that, while SBK had the financial capacity individually, the scope of the projects exceeded their license limits, prompting it to forge a mutual contact and introduction to Discaya’s company, St. Gerard Construction, which he personally checked in Pasig City.

“I did my due diligence … I saw nga dako kaayo siya’g building, decent man, so at that time wa’ ko mahadlok mo-partner atong kompanyaha,” Arbas recounted.

Under the agreement, SBK would implement the projects while St. Gerard’s role was limited to supervision and technical support. Arbas emphasized that St. Gerard did not deploy manpower, only sending a technical staffer occasionally.

He noted that problems with the projects did not stem from their side but rather from delays and issues involving government property and site availability.

The Alegria project, worth P109.44 million, has been hampered by the lack of a designated site for the water treatment facility and reservoir.

Arbas said the Alegria project was only about 28.20 percent complete, noting that most of the work done so far involved piping, while the bigger components—the treatment plant and reservoir—remained stalled due to the lack of an allocated lot.

Originally, the Alegria contract included a reservoir. However, this portion was removed, and plans were revised to expand piping in another area to serve more barangays.

SBK requested to resume works in July 2025 after a tentative agreement on the site location, but accessibility problems stalled construction. “We even risked bringing materials down a ravine using a backhoe because the road was inaccessible. The LGU even placed an obstruction on the road to prevent vehicles from passing,” Arbas shared.

Meanwhile, the Malabuyoc project, worth P70.99 million, is almost complete. SBK reported 95.28 percent accomplishment, but final turnover remains stalled.

“Ang ilang ingon nga wala nahuman sa Malabuyoc, dugay na’nang nahuman namo,” Arbas stressed, saying the only pending requirement is the energization of the water treatment plant.

According to SBK, the plant cannot be commissioned without an electricity supply, which should come from the provincial government, through CEBECO.

“Up to now, the province has not issued the required Sanggunian resolution needed by CEBECO to energize the site,” Arbas explained, but lamented that, despite completing their scope of work, the lack of power connection prevents them from claiming 100 percent completion.

Both projects also suffered from financial strain due to the absence of advance payments. SBK revealed it currently has a P12 million collectible from the provincial government.  “Kami ang ga-suffer sa project kay wala’y down payment, lisod kaayo mag-collect,” Arbas said.

Capitol records, however, confirm that, as of August 22 this year, Alegria was only 18.59 percent complete under official monitoring, while Malabuyoc was 86.76 percent complete.

These projects were awarded during the administration of then-governor Gwendolyn Garcia in 2023 and 2024, and are now part of the 154 infrastructure projects suspended by Governor Pamela Baricuatro for audit and review.

The Alegria system was designed to serve at least eight barangays, while the Malabuyoc project aimed to provide water to five barangays.

Both had already undergone multiple deadline extensions: Alegria from 360 days to 630 days, and Malabuyoc from 300 days to 750 days.

Public scrutiny intensified after reports tied these projects to St. Gerard Construction, owned by Discaya, who is also linked to controversial flood control projects in some part of the Philippines.

However, as Arbas have been saying, SBK was really the in charge from the very start, and that Discaya’s company was only a required joint venture partner due to licensing rules.