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Some 45 projects funded by Official Development Assistance (ODA) have been classified as “problematic” as of end-2023, according to the National Economic and Development Authority (Neda).
According to Neda’s report, out of the 45 projects, 22 had been deemed problematic since 2021, mainly due to challenges in right-of-way acquisition, procurement issues and regulatory compliance.
These difficulties were further compounded by health and logistical restrictions during the pandemic.
Among these projects that have not significantly progressed since 2021 are the Jalaur River Multipurpose Project Phase 2, Forestland Management Project, Edsa Greenways, Cebu Bus Rapid Transit Project and Central Luzon Link Expressway Phase 1.
“Projects with problems usually, the problems are right-of-way issues. Because what is happening there, in most of the projects, the funds for the right-of-way acquisition are the government counterpart,” Neda Undersecretary Joseph Capuno said in an interview.
These ‘problematic’ projects are tagged as Level 1 or Level 2 problem projects.
Projects fall under the first level if they’re flagged for the first time based on Neda’s assessment that covers financial, physical, cost overrun and stage of implementation.
If the projects remain problematic in the next reporting quarter, they are elevated to Level 2.
Challenges
Projects under Alert Level 1 amounted to P743.41 billion or 25.86 percent of the total projects under an alert status, while those under Alert Level 2 reached P1.297 trillion or 51.72 percent as of last year.
“Some issues, even if you have an alert now, cannot be resolved in a quarter. Especially if there are budget appropriations requirements. Our budget cycle is annual so, if you don’t get it this year, you have to wait for another year,” he said.
Capuno also said that delays in the negotiation about the loans also weighed on the completion of projects.
“These are not quickly resolved in terms of time. There really is a natural demanding time schedule, processing and all that … But we’re trying to resolve these things,” Capuno added. INQ