SIX projects funded by foreign loans or grants that were tagged “problematic” for various reasons last year have now been completed, Socioeconomic Planning Undersecretary Joseph Capuno told reporters on Thursday.
These are the Philippines Covid-19 Emergency Response Project; Arterial Road Bypass Project III; Panguil Bay Bridge Project; Flood Risk Management Project for Cagayan De Oro River; Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low-Lying Areas of Pampanga Bay; and Additional Financing for the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services National Community-Driven Development Project.
In 2023, the Monitoring and Evaluation Staff (MES) staff of the National Economic and Development Authority (NEDA) — renamed as the Department of Economy, Planning, and Development (DEPDev) — created the Alert Mechanism (AM) to identify and prioritize Official Development Assistance (ODA)-funded projects at risk of delays or cost overruns, classifying them as Potential or Actual Problem Projects for focused monitoring and support.
Problematic projects and those in critical status are marred by right-of-way issues, including land acquisition, procurement, and budget challenges.
Some 43 projects are still problematic, of which 41 worth P2.5 billion are at the “critical stage,” and the remaining two, which are at the early warning stage, but still at risk, valued at P10.8 billion, Capuno said.
To recall, DEPDev had flagged 45 projects as problematic, with 30 in the critical stage.
77 ODA projects
A total of 77 ODA projects had been approved by the Investment Coordination Committee (ICC).
Their value grew by 6.0 percent to $39.6 billion last year from $37.3 billion in 2023, spread across 426 loans and grants.
Loan commitments of infrastructure projects drove the increase, with nine of the 17 fresh loans worth $8.2 billion supporting the administration’s Infrastructure Flagship Projects (IFPs).
These include the Laguna Lakeshore Road Network Project, the Dalton Pass East Alignment Road Project Phase I, new funding for the Bataan-Cavite Interlink Bridge Project and the Metro Manila Subway Project, and the Infrastructure for Safer and Resilient Schools Project.
Transport and connectivity infrastructure were said to have accounted for the bulk of last year’s ODA portfolio, both in value ($42.81 billion or 62.7 percent) and number (120 loans or grants).
A total of 79 loans and grants valued at $6.4 billion were also listed under the governance and institutions development sector, which focuses on enhancing governance reforms, fiscal management, and institutional development.
Social reform and community development accounted for the third largest share with $5.4 billion for 113 loans and grants allocated to health, education, social protection, and human capital development programs.
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