FORTY-FIVE projects funded by official development assistance (ODA) have been identified as “Actual Problem Projects” since last year due to delays, the National Economic and Development Authority (NEDA) said.
“This represents an overwhelming majority of the ongoing ODA-funded projects in the 2023 portfolio,” NEDA said in its latest ODA Portfolio Review.
Of the 45, 22 had been “Actual Problem” status since 2021 due to issues related to right of way, procurement, and compliance with regulatory requirements.
“The situation for these ODA-funded projects was further complicated by the government’s limited fiscal space, as resources were reprioritized to address the pandemic,” according to the report.
Project delays were also attributed to inadequate appropriations for loan proceeds and insufficient government funding, it added.
Within the problem category, 30 projects amounting to P1.3 trillion were flagged as Actual Problem Projects under Alert Level II or the “critical stage,” as of the end of 2023.
The NEDA-Monitoring and Evaluation Staff (MES) also identified 15 Actual Problem Projects costing P743.41 billion which were classified under Alert Level I, known as the “early warning stage.”
“Problematic” projects are given “early warning” based on physical and financial status, cost overruns, and stages of implementation, MES officer-in-charge and assistant director Paul Andrew M. Tatlonghari told reporters on the sidelines of a briefing last week.
If no improvement is seen from the unit’s quarterly assessments, its alert level will be raised to “critical stage” status.
Agencies with Actual Problem Projects are also asked to send their catch-up plans to NEDA.
NEDA then identifies whether the project should return for reapproval to the NEDA-Investment Coordination Committee (ICC), which evaluates the fiscal, monetary and balance of payments implications to key national projects.
Problematic projects in the government’s list of Infrastructure Flagship Projects are also raised to the NEDA Board, which is headed by President Ferdinand R. Marcos, Jr.
The MES also noted 10 “Potential Problem Projects” valued at P488.91 billion and three “No Problem Projects” worth P57.65 billion.
“Delayed ODA-funded projects result in less ODA that we can expect to receive from our ODA sources and will thus mean smaller assistance that can be used for national development,” Nigel Paul C. Villarete, senior adviser on public-private partnership at Libra Konsult, Inc., said via Viber.
Last year, the ICC approved 27 out of 39 requests to restructure ODA-funded projects. Most of these came from the Department of Transportation (DoTr) with eight projects, Department of Health with five, and the Department of Public Works and Highways (DPWH) with seven.
A total of 12 requests for restructuring are currently being processed as of December, it said.
Around 26 projects are expected for restructuring this year, mostly due to implementation period or loan/grant validity extensions or changes in cost, according to NEDA.
The bulk of these projects will be constructed by the DPWH and the DoTr, with nine each. — Beatriz Marie D. Cruz
