OWING to delays in the implementation of foreign-funded infrastructure projects attributed to the failure of the Congress and the national government to allocate counterpart funding, more than P308 million in government funds have went down the drain, a report of the Commission on Audit revealed.
The COA said the “slow availment” of official development assistance triggered the imposition of commitment fees totaling P308,448,184.70. The amount is on top of interest charges on loans for various infrastructure projects.
The recently released 2010 annual audit report for the Department of Public Works and Highways indicated that at least 35 percent of the unnecessary expenses went to the installation of bridges, 60 percent for road works while the rest for dredging, water supply and sanitation and waterways rehabilitation.
State auditors said that major contributors to the delay in project implementation include the belated procurement of goods and services; change in project scope, design and specification; land acquisition and resettlement and late or non-release of counterpart funds.
“The first three factors are within the control of DPWH while the last factor needs coordination with the Congress of the Philippines and the Department of Budget and Management,” COA stated.
In previous audit findings, the COA asked the DPWH to address the cause of delays in implementation of foreign-funded public-works projects that have bloated their cost to over P10 billion in the past three years alone.
However, the DPWH Project Management Office (PMO) countered that many projects, particularly under the multibillion-peso President’s Bridges Program, were implemented at lesser or at no extra cost to the government.
The DPWH-PMO noted that hundreds of millions of pesos were saved by the government when it completed the PBP and Urgent Bridges Development Project for Rural Development.
Specifically cited were the implementers of the Tulay ng Pangulo sa Barangay (Mabey-Johnson); Countrywide Bridges Program-SZOPAD (Mabey Johnson); and the Tulay ng Pangulo sa Kaunlaran (Mabey-Johnson), all completed during the term of former President Gloria Arroyo.
The DPWH-PMO revealed that there were no cost overruns for the project because of construction efficiency and competence demonstrated by the contracting firms and the use of permanent modular steel for the bridges.
However, cost efficiency and savings were negated by projects implemented by the Philippine Japan-Highways Loan-Project Management Office; the Special Bridges and the Urban Roads Projects Office.
It was revealed that the cost of the British-government assisted special bridges project implemented by
Balfour-Cleveland rose to 86.6 percent. On the other hand, the Austrian-assisted special bridges constructed by Waagner-Biro suffered a cost overrun of 44 percent of the original price of the project.
Reacting to the 2010 COA report, the DPWH-PMO admitted that the special bridges projects incurred commitment fees due to meager government counterpart fund released; amendments to the original plan and delay in the completion of requirements and other documentary procedures embodied in the loan agreement, among others.
