CoA flags DPWH for delayed P216-B infra projects

THE Commission on Audit (CoA) has flagged the Department of Public Works and Highways (DPWH) for delays and non-completion of about P216 billion worth of locally funded and foreign assisted infrastructure projects in 2023, citing poor project monitoring and execution.

In an audit report released in December, state auditors raised concerns over the delays hounding the timely completion of 3,064 public works projects as it could result in additional government costs while depriving Filipinos of the supposed benefits of the civil works.

Of the flagged projects, 3,047 were funded locally, costing P131.5 billion, while 17 were foreign assisted with a combined cost of P84.4 billion.

Public Works Secretary Manuel M. Bonoan did not immediately respond to an email seeking comment.

“One of the primary considerations of the government for entering into a contract is the timely completion of the infrastructure projects so that the intended benefits may be achieved,” a part of the CoA report stated.

The DPWH’s failure to efficiently implement locally funded projects were “due to inadequate planning, detailed engineering, supervision, and monitoring,” according to state auditors.

Of the delayed local projects, CoA noted that 2,234 projects amounting to P90.2 billion were not completed within the contract time, while 500 projects, worth P34.6 billion, were suspended.

The DPWH also terminated the contracts of 33 projects with a total construction cost of P2.8 billion. There were also 190 unimplemented infrastructure projects amounting to P4 billion in 2023.

“Significant delays in the implementation of the projects were caused by numerous suspension orders, time extensions and variation orders issued by the DPWH,” the CoA report stated.

The Public Works department outlined that right-of-way acquisition issues, late issuances of permits and clearances from other agencies, obstructing buildings, and inclement weather contributed to the delays.

But state auditors said that the DPWH should have planned for expected construction issues, noting their “long years of exposure and experience” with carrying out infrastructure projects.

“Except for adverse weather conditions, the other identified causes of the delay in the implementation of infrastructure projects reflect the inadequacy of planning, supervision, and monitoring by management relative to the project implementation,” CoA said.

The government should look at disqualifying and blacklisting contractors involved with the delayed projects from subsequent bids, state auditors recommended, adding that the DPWH should anticipate common construction woes in their engineering plans.

Meanwhile, the state auditing agency also expressed concerns over the DPWH’s failure to efficiently implement foreign-funded infrastructure projects, citing it could lead to higher construction costs due to the loan terms.

“[The] DPWH was not able to efficiently implement 17 Foreign-Assisted Projects with an aggregate cost of P84,411,319,510… which resulted in loan restructuring of three projects in 2023 and possible restructuring of other projects in 2024,” CoA said.

In November, the National Economic and Development Authority (NEDA) Board approved the restructuring of major flood-control projects in the capital region and nearby provinces, resulting in cost increases.

It approved a 65-month extension to the Cavite Industrial Area-Flood Risk Management Project, which was originally set for implementation in April 2024. The project’s cost doubled to P22.04 billion from P9.9 billion, according to the Presidential Communications Office.

The NEDA Board also approved a 63-month extension for Pasig-Marikina River Channel Improvement Project-Phase IV, which was initially eyed for implementation in December. Its costs ballooned by 74% to P57 billion from P33 billion.

Both infrastructure projects were flagged by CoA for delays in implementation.

The DPWH said that delays for foreign-assisted projects were also hounded by right-of-way acquisition issues and inclement weather, adding that “prolonged review, approval and concurrence of project-related documents” also led to postponements.

State auditors said the government should strengthen its monitoring of foreign-funded infrastructure projects to avoid further delays while maximizing the utilization of loan proceeds to reduce additional fees. — Kenneth Christiane L. Basilio