45 ODA-funded projects tagged problematic – NEDA

MANILA, Philippines — The National Economic and Development Authority (NEDA) has flagged 45 projects with official development assistance (ODA) funding as problematic amid delays from implementation challenges including right-of-way (ROW) acquisition issues.

In its 2023 ODA portfolio review report, the NEDA said 58 of the 77 ongoing Investment Coordination Committee (ICC)-approved ODA-funded projects were assessed as of the fourth quarter of last year based on the submitted progress reports provided by implementing agencies.

Of the 58 projects, 45 projects were tagged as actual problem projects, falling either under Level I, which is the early warning stage, or Level II, which is the critical stage due to persistent unresolved issues.

The NEDA also said 10 projects are at risk of becoming problematic by breaching one of the four indicator categories, while three projects were categorized as no problem projects.

Of the 45 problematic projects, 22 had been classified as such since 2021.

These are the Philippine Rural Development – Original Loan; Forestland Management; Access to Sustainable Energy Program; Cebu Bus Rapid Transit; EDSA Greenways; New Cebu International Container Port; North South Commuter Railway (Malolos-Tutuban or N1); NSCR Extension (Clark Extension); Arterial Road Bypass Project III; Davao City Bypass Construction; Improving Growth Corridors in Mindanao Road Sector; Metro Manila Interchange Construction Phase VI; Metro Manila Priority Bridges Seismic Improvement; Reconstruction and Development Plan for Greater Marawi - Stage 2; Road Upgrading and Preservation; Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low-Lying Areas of Pampanga Bay; Central Luzon Link Expressway Phase I; Additional Financing for the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services National Community-Driven Development; Beneficiary Fast, Innovative and Responsive Service Transformation; Rural Agro-Enterprise Partnership for Inclusive Development and Growth; Jalaur River Multipurpose Phase II and the Capacity Building to Foster Competition.

“These projects have faced significant delays due to common implementation bottlenecks, such as ROW acquisition, procurement issues and compliance with regulatory requirements,” the NEDA said.

Challenges in project implementation were exacerbated by the health and logistical restrictions during the COVID-19 pandemic and the government’s tight fiscal space.

There were also additional delays due to inadequate appropriations for loan proceeds and the non-approval of proposed budgets for the ODA-funded projects starting 2022.

To address the issues, NEDA assistant director Paul Andrew Tatlonghari told reporters that implementing agencies of problematic projects were sent action letters and were asked about catch-up plans.

He said project implementation review meetings are also being conducted with implementing agencies.

If the issues cannot be addressed at the project management level, he said the secretary of the agency is being alerted about the problem.

“We flag them if they need to go back to the ICC for re-approval, if there are some parameters that’s already been breached. Like, say, if they’re nearing the closing of the loan, or if they’re already toward the end of the original target completion date. So we check those things and make sure that they comply with the latest ICC,” he said.

NEDA Undersecretary Joseph Capuno told reporters that some issues cannot be resolved within a quarter, especially if there are budget appropriation requirements.

“Our budget cycle is annual. So if you don’t get it this year, you have to wait for another year,” he said.

He said issues involving delays in the negotiation of loans or in looking for potential investment partners or bidding requirements also cannot be addressed quickly.

“But we’re trying to resolve these things,” he said, citing latest developments such as the executive order facilitating the expeditious approval of permits for infrastructure flagship projects or priority projects.