Correcting the Pitch on Nationstar

Nationstar Development Corporation is one of several contractors participating in the Davao City Bypass Road Project, a multi-component infrastructure undertaking that includes major tunneling works and is being implemented through a consortium structure due to its size, complexity, and cost.

Tengco said portraying Nationstar as a “favored” contractor reflects a disconnect between narrative and process, particularly given the firm’s participation in open, competitive bidding and consortium-based projects. (Photo: Voltaire F. Domingo, Senate of the Philippines Facebook)

According to Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco, these are facts that make any insinuation of “favored” treatment misaligned with procurement and engineering realities.

Tengco said the bypass project, which involves long-span roads, bridges and twin tunnel systems, was awarded to a consortium that includes China Road and Bridge Corporation, noting that no single local contractor could realistically execute the project on its own.

“The project’s scope and technical requirements necessitate a consortium. Nationstar is a participating contractor, not the sole proponent,” Tengco said.

He rejected suggestions that Nationstar’s participation in government projects stems from political proximity, saying such claims ignore the company’s track record of competitively bid contracts across multiple administrations.

Tengco stressed that under the Anti-Graft and Corrupt Practices Act (RA 3019) and the Code of Conduct of Government Employees (RA 6713), a conflict of interest exists only when a public official has a financial or pecuniary stake in a transaction over which they exercise official authority.

“My role as PAGCOR chairman has no direct or indirect influence on the awarding of public works contracts,” Tengco said, adding that he fully divested all interests in Nationstar in 2022, with the divestment process having begun in 2019.

Founded in 2015, Nationstar traces its operational roots to Tengco’s earlier involvement in the construction sector beginning in 1996.

The firm has undertaken both public and private projects during the administrations of Presidents Benigno Aquino III, Rodrigo Duterte, and the current administration.

During the Aquino and Duterte years, Nationstar carried out retrofit and fit-out works at Malacañang’s Premier Guest House and the Presidential Management Staff Building, projects that helped establish its technical credentials.

During the COVID-19 pandemic, the company was also tapped to construct modular hospitals nationwide, responding to urgent infrastructure needs at a time when many firms were scaling back operations.

More recently, Nationstar completed private-sector projects such as the Senior High School building at Ateneo de Manila University, as well as multiple public school facilities across the country.

These projects qualified the firm for subsequent university and infrastructure contracts through standard eligibility and bidding requirements.

Tengco said portraying Nationstar as a “favored” contractor reflects a disconnect between narrative and process, particularly given the firm’s participation in open, competitive bidding and consortium-based projects.

“Large infrastructure projects are awarded based on technical capacity, financial strength, and track record—not personal proximity,” he said.

He added that procurement rules apply uniformly to all bidders and that Nationstar operates within the same regulatory and compliance framework as other construction firms.

Tengco noted that any perceived gaps in conflict-of-interest rules fall within Congress’ mandate to address, but maintained that existing laws already draw clear lines on influence, divestment, and accountability.

“Narratives should be anchored on procurement facts and statutory definitions,” he said.

Infrastructure projects are built on scale, structure, and process—not silhouettes or insinuations. When facts are restored to their proper context, the noise tends to fade on its own.

This column does not shout it down. It simply corrects the pitch.

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