Inefficient Implementation and Delays in Foreign-Assisted Projects Causing Commitment Fees
Department of Public Works and Highways · 2024
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What Happened?
Category: Project ManagementIssue: Performance DeficiencySeveral multi-billion-peso projects funded with foreign loans fell far behind schedule, forcing the government to pay nearly 300 million pesos in commitment fees on loans it had not used, while delaying the benefits these projects were meant to deliver.
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."