Eight projects funded by official development assistance (ODA) loans and grants would likely seek the Investment Coordination Committee (ICC) approval anew due to restructuring, according to the National Economic and Development Authority (Neda).
In the ODA Portfolio Review, the Neda said project restructuring often refers to changes in scope, extension in implementation period or loan validity, or changes in cost.
These changes need to be reviewed, approved and confirmed by the ICC and/or the Neda Board (NB). In 2015 a total of 16 projects were reevaluated by the ICC/NB or the ICC Secretariat.
The list of loan-funded projects that would likely be resubmitted to the ICC includes the Philippine Rural Development Project (PRDP); New Bohol Airport Construction and Sustainable Environment Protection Project; Road Improvement and Institutional Development Project; and the Provincial Towns Water Supply and Sanitation Program III (PTWSSP III).
The Neda said the PRDP has a proposal to obtain additional $450 million worth of financing. Neda Deputy Director General for National Development Programming Rolando G. Tungpalan earlier told the BusinessMirror the agency is not inclined to decide on the matter, given the implementation of PRDP just started a few years ago.
The New Bohol Airport Construction and Sustainable Environment Protection Project will return to the ICC for its proposal to extend its runway length to 2.5 kilometers. The proposal change also includes the expansion of the Passenger Terminal Building from a single-story to a two-story building.
For the Road Improvement and Institutional Development Project, the Neda said a new ICC approval needs to be sought to extend the loan for the projects.
The Neda said the Department of Public Works and Highways is seeking a two-year extension of the Asian Development Bank loan to June 30, 2018, from June 30, 2016. The project was approved by the ICC-Cabinet Committee on June 6.
For the PTWSSP III, the Neda said there could be cancellation of $5.493 million of the loan by the closing date of the project on December 31, 2015.
Other loan-funded projects include the National Irrigation Sector Rehabilitation and Improvement Project; Jalaur River Multipurpose Project II (JRMP II); and the Mindanao Sustainable Agrarian and Agricultural Development Project (MinSAAD).
For the National Irrigation Sector Rehabilitation and Improvement Project, the National Irrigation Administration (NIA) encountered-exchange rate fluctuations that may render its project cost insufficient to complete the project.
The Neda said the NIA is considering to either downscale the project’s activities or to request for additional financing.
The report said the NIA may extend the implementation of the JRMP II to November 28, 2017, from March 2016 due to delays it encountered.
The Neda report stated Korean Economic Development Cooperation Fund (KEDCF) consultants said civil works will take at least 48 months to be completed. The target completion will likely be adjusted accordingly.
“Possible extension of project implementation from March 2016 to November 28, 2017, due to delays caused by late project start-up and delay in the issuance of bank concurrence for the construction of dams and highline canal,” the Neda said.
For the MinSAAD project, the Neda report said prolonged procurement of consulting services will require the Department of Agrarian Reform (DAR) to extend the project.
The list also includes a grant-funded project, the Adapting to Climate Change Impact Through the Construction of Water Impounding Facilities in the Philippines (Pasa SRIP).
The Neda said the implementation period of the Pasa SRIP may need to be extended due to delays it encountered during implementation. These delays were caused by typhoons and heavy rains in the area.
Image credits: Nonie Reyes