As the flood-control corruption scandal continues to unfold, a parallel story is taking shape along the country’s shorelines. 

A subsidiary of the state-owned China Communications Construction Company (CCCC)— the China Harbor Engineering Corporation (CHEC)—is at the center of dredging and reclamation activities branded as “flood mitigation” amid rising tensions in the West Philippine Sea. 

The subsidiary operates the vessels that transport the dredged sand and their presence in Philippine waters—in some cases, very close to the disputed areas of the West Philippine Sea—has raised national security concerns. After all, CCCC constructed, at Beijing’s behest, artificial islands in the Mischief Reef, within the Philippines’ exclusive economic zone. 

In 2009, the World Bank banned CCCC from bidding for public works projects in the Philippines because of allegations of corruption and fraud. 

In May this year, President Ferdinand Marcos Jr. ordered an investigation of dredging activities in coastal areas following reports that China is using the dredged sand to reclaim land in disputed waters. In the same month, the National Intelligence Coordinating Agency (NICA) told the Senate Special Committee on Philippine Maritime and Admiralty Zones that it is probing possible involvement of China’s People’s Liberation Army in these operations. 

The Philippine Center for Investigative Journalism mapped dredging operations across the country and  identified at least 12 large-scale dredging projects implemented under river restoration and flood control programs. These projects are spread across several provinces where flooding has become a recurring concern. The dredged sand for these projects is also being used for two ongoing reclamation projects in Manila Bay. 

In Zambales, there are four dredging operations in major river systems that flow into the West Philippine Sea. In Oriental Mindoro, following the suspension of two dredging projects, Governor Bonz Dolor signed an ordinance banning large-scale dredging in the province. Meanwhile, in Occidental Mindoro, two dredging operations have been temporarily suspended following community complaints over possible environmental effects, livelihood disruption, and safety issues. 

Of the 98 vessels being used to transport the sand, 60 are operated by CHEC, according to data from the Philippine Coast Guard and the Maritime Industry Authority (MARINA).  In addition, four ships operated by a local company, Ben Line Agencies Philippines Inc., were given special permits to conduct dredging operations for CHEC.

A flurry of reclamation projects

The dredging and reclamation projects began under the administration of former President Rodrigo Duterte. 

In 2019, Duterte signed Executive Order No. 74, placing the Philippine Reclamation Authority(PRA) under the control and supervision of the Office of the President and delegating to its Governing Board the power to approve all reclamation projects. The President retained the authority to modify, amend, or nullify any action of the PRA Board. 

Later on, Duterte signed Administrative Order No. 16, creating the Manila Bay Task Force to oversee and expedite the rehabilitation of Manila Bay. The task force was mandated to implement the Supreme Court’s 2008 Writ of Continuing Mandamus directing government agencies to clean up and restore the bay.

Despite Duterte’s public opposition to reclamation and his statement that such projects would not proceed under his term, records from PRA show that his administration approved 22 reclamation projects nationwide, 13 of which were located in Manila Bay. 

These projects were later suspended by President Ferdinand Marcos Jr. to allow a review of their environmental and national security implications. Environment Secretary Toni Yulo-Loyzaga said the suspension was to allow the government to conduct a “cumulative impact assessment”. Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas(PAMALAKAYA), for one, was concerned that these reclamation projects would adversely affect more than 32,000 hectares of fishing waters. 

At the same time, the United States Embassy in Manila raised concern over the participation of CCCC and CHEC in Manila Bay reclamation projects, citing its role in helping the Chinese military construct and militarize artificial islands in the South China Sea. 

Retired Senior Associate Justice Antonio Carpio also warned officials not to engage with these Chinese state enterprises because “they helped China seize Philippine island territories and maritime zones” by creating artificial islands that are now used as Chinese military outposts. 

While most reclamation projects were ordered suspended, two projects continue to move forward in Manila Bay. The 360-hectare Pasay Reclamation and Development Project Proposed by the City Government of  Pasay, in a joint venture with SM Prime Holdings Inc. and the 260-hectare Pasay Harbor City Reclamation Project proposed by the City Government of Pasay in a joint venture with Pasay Harbor City Corporation.

The Pasay Harbor City Corporation is a subsidiary of Ulticon Builders Incorporation, a general contractor based in Davao City, and one of the top contractors of both the Duterte and Aquino administrations.

Monopolizing the transport of dredged sand

Coast Guard data show that CHEC operates mostly near coastal provinces adjacent to the West Philippine Sea. Commodore Jay Tarriela, the Coast Guard spokesperson,  explained to PCIJ that the West Philippine Sea covers the country’s western seaboard, stretching from Batanes, Ilocos, Pangasinan, Bataan, and Zambales, down to Mindoro and Palawan, as defined under the 2013 administrative order signed by President Benigno Aquino III.

CHEC remains the dominant operator in the transport of dredged sand from coastal areas to Manila Bay. Most of its vessels are registered in the Philippines, except for 12  that were granted special permits to operate here. MARINA  allows foreign-flagged vessels to operate in Philippine territorial waters if they are under government contract or when no suitable domestic vessel is available.

[The table lists vessels documented in Notices to Mariners (NOTAMs) published by the Philippine Coast Guard between January and September 2025. The “Date” column indicates the period during which each vessel was authorized to operate. “Flag” refers to the country under which the vessel is registered—most are Philippine-flagged despite being operated by foreign entities. The International Maritime Organization (IMO) number is a unique seven-digit identifier assigned to each vessel for tracking and identification purposes; PCIJ attempted to verify these through international maritime databases. The “NSD No.” refers to the specific Notice to Mariners document number issued by the Philippine Coast Guard that authorized each vessel’s operations.]

In addition to the above, four more ships operated by  Ben Line Agencies Philippines Inc. dredge for CHEC. These ships were registered in Sierra Leone, Belize, Sierra Leone, and China.

[Source: MARINA special permits issued between January and August 2025 to Ben Line Agencies Philippines, Inc. The “Special Permit Control #” column lists the unique control number assigned to each permit. The “Issue Date” indicates when the permit was granted, while the “Duration” column shows the period during which the vessel is authorized to operate. The “Utilization” column specifies the approved purpose for which the vessel may be used, such as dredging or the transport of materials.]

The presence of all these ships has raised red flags because both CCCC and CHEC have been involved in big construction projects that have been or may be used for military purposes. 

According to the Council for Foreign Relations, 14 of 77 Chinese-funded port projects worldwide are potentially “dual-use.”. These include CCCC-built Hambantota Port in Sri Lanka. In 2022, a Chinese satellite  monitoring ship docked at the port, causing concerns that it was being used to gather intelligence on Indian missile launches.   

In 2021, the U.S.–China Economic and Security Review Commission warned of China’s construction projects on the Panama Canal, noting that these “could be turned quickly toward military capabilities” and that the People’s Liberation Army could eventually secure naval access there. CCCC and CHEC have projects on the Canal.

In the Philippines, recent events have made those concerns more urgent. In November 2024, the Philippine Coast Guard arrested 13 undocumented Chinese nationals aboard the dredging vessel MV Harvest 89 operated by CHEC in Mariveles, Bataan, and were reportedly in possession of PLA uniforms.

Tarriela explained that some dredging vessels may be involved in AIS (Automatic Identification System) spoofing, a tactic used by the Chinese government to disguise vessels under different identities or flags, sometimes making them appear as China Coast Guard ships. He said this is done to confuse authorities and create intimidation along coastal areas. Tarriela added that when the Philippine Coast Guard confirms that a dredger is being used for spoofing, the operator is required to explain or face suspension of operations, especially within Manila Bay.

Tarriela said, however, that as long as a company has complete permits, the Coast Guard does not look into the operator’s background; it only assesses the  seaworthiness of a vessel, its compliance with the rules, and its crew, regardless of their nationality. Alien seafarers must be certified by the Bureau of Immigration or the Department of Labor and Employment. “As long as they don’t violate any of our laws, we don’t really care,” he said.  

While MARINA has not received reports of violations, MARINA Spokesperson Director Luisito Delos Santos also acknowledged gaps in monitoring, stating that it’s possible some Chinese vessels are operating without proper permits.

Delos Santos also emphasized the need for a whole-of-government approach, saying that  before a reclamation project is implemented, there should be an assessment of what vessels are needed and which ones carry risks so that MARINA can decide on whether or not to issue them permits. 

The Dredging Supply Chain

River restoration projects are part of the government’s flood mitigation efforts. These are implemented at no direct cost to the government, as private contractors are allowed to extract sand in exchange for desilting riverbeds. 

In 2017, Duterte directed the dredging of heavily silted rivers across the country to address recurring floods. He instructed the Department of Environment and Natural Resources and the Department of Agriculture to work with the Department of Public Works and Highways in carrying out dredging operations in four major rivers — Agusan River, Rio Grande de Mindanao, Pampanga River, and Cagayan River. 

Under DENR Administrative Order No. 2020-07, signed by former Environment Secretary Roy Cimatu, private contractors must shoulder all expenses for dredging operations within designated river dredging zones identified by a provincial inter-agency committee. The order states that no government funds shall be used, and only companies with the technical and financial capacity to undertake large-scale dredging may apply for clearance through the DPWH.

The Philippine Reclamation Authority told PCIJ that project proponents at the dredging sites sell sand to Manila Bay reclamation project proponents. Contractors may recover and sell minerals obtained from dredging, provided they pay the required national and local taxes. The order also created a provincial inter-agency committee chaired by the governor to oversee implementation, with the DENR, DPWH, MGB, and EMB as members.

Operations continue

Seven months after President Marcos ordered an investigation of coastal dredging activities in May 2025, no public findings have been released. NICA’s probe into possible PLA involvement, announced to the Senate, has not produced public results.

Tarriela said he was uncertain whether NICA had completed its investigation. He confirmed that reports exist suggesting sand extracted from Philippine coastal municipalities is being used for island reclamation in the South China Sea, but said these findings have not been publicly confirmed and he was unaware of substantial evidence supporting the claims.

NICA told PCIJ that the investigation is still ongoing. 

As of December 2025, the 60 vessels linked to CHEC continue operations. Asked about the continued presence of Chinese nationals and vessels despite ongoing West Philippine Sea tensions, Tarriela said the Philippine Coast Guard, together with the Bureau of Fisheries and Aquatic Resources and the Armed Forces of the Philippines, continues to resist illegal activities in disputed waters. He said the government’s commitment to protecting national sovereignty remains unchanged regardless of Chinese involvement in domestic dredging or reclamation projects. — PCIJ.org