Delays and Cost Overruns in Foreign-Assisted Projects
Department of Public Works and Highways · 2024
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What Happened?
Category: Project ManagementIssue: Non-complianceNine big projects funded by foreign loans were late and over budget, causing restructuring and extra fees of about 296 million pesos.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Delays were encountered in the implementation of nine Foreign-Assisted Projects with a total cost of P103,780,055,173.34, as evidenced by negative slippages ranging from 0.76 percent to 55.96 percent, cost increases, and extended implementation periods. This led to the restructuring of five projects in CY 2024, with potential restructuring for others in CY 2025, affecting the timely delivery of benefits to the intended beneficiaries. Furthermore, the delays in project implementation also impacted the timely utilization of loan proceeds, contributing to the incurrence of commitment fees totaling P296,368,628.51 for CY 2024."