Six out of 45 projects flagged as problematic in 2023 by the Department of Economy, Planning, and Development (DEPDev) have been removed from the list of critical-stage projects, a top official said.

This, as DEPDev’s 2024 Official Development Assistance (ODA) Portfolio Review Report released on Wednesday, July 30, said that “while overall resource levels remained high, implementation challenges, particularly in large infrastructure projects, highlighted the gap between financing availability and delivery capacity.”

“Disbursement delays, capacity constraints, and coordination issues continue to affect performance, even as agencies benefit from expanded support for project preparation and monitoring,” the report read.

According to DEPDev, most implementation delays are concentrated in complex infrastructure projects, with only 17 out of 61 ongoing Investment Coordination Committee (ICC)-approved ODA projects on schedule by the end of 2024.

The remaining 44 projects experienced average delays of up to 39 months, mainly due to right-of-way (ROW) issues, procurement delays, and coordination challenges, DEPDev said.

These delays also led to increased financial costs, with the government incurring $16.8 million in commitment fees, a 21-percent rise from the previous year, it added.

Most of these delayed infrastructure projects were being implemented by the departments of Public Works and Highways (DPWH) and of Transportation (DOTr), according to the report.

For loan-funded projects, “disbursement increased overall, but delays in project execution continue to affect progress” among projects funded last year, the report said.

DEPDev said that loan disbursements from active ODA-funded projects reached a post-pandemic-high of $7.01 billion in 2024, driven by full drawdowns of program loans, though project loan disbursements fell short due to procurement, ROW, and design issues.

Domestically, budget utilization was stronger at 81 percent, but delays in counterpart funding continued to hinder project execution, it said.

DEPDev Undersecretary Joseph J. Capuno said there were indeed “problematic projects” flagged in the 2023 ODA report, referring to the 45 items, but six of them have already reached completion.

Capuno, who oversees DEPDev’s investment programming group, said during the agency’s midyear press briefing on Thursday, July 31, that “six were completed and eventually became a success, as it were,” while “the others improved their status from problematic to a somewhat neutral category.”

The six projects taken off the critical list were the Philippines Covid-19 Emergency Response Project, Arterial Road Bypass Project III (ARBP III), Panguil Bay Bridge Project (PBBP), Flood Risk Management Project for Cagayan de Oro River (FRIMP-CDOR), Integrated Disaster Risk Reduction and Climate Change Adaptation in Low-Lying Areas of Pampanga Bay (IDRR-CCA), and the additional financing for the KALAHI-CIDSS National Community-Driven Development Project (NCDDP-AF).

Capuno noted that there have been changes in the status of the 43 “problematic projects” mentioned in the 2023 report. By the end of 2024, four showed improvements in their status, while 22 remained classified as projects at risk of becoming critical.

“Unfortunately, around 10 still remain in ‘critical status.’ Those were tagged as such because of right-of-way (ROW) issues, including land acquisition, procurement, and budget challenges,” Capuno said.

Additionally, three projects were terminated or had their financing closed by the end of 2024.

Based on the 2024 ODA Portfolio Review Report, the total value of the country’s active ODA-funded projects grew by six percent from $37.3 billion in 2023 to $39.6 billion in 2024, spread across 426 loans and grants.

The increase was driven by new infrastructure loan commitments, with nine of the 17 new loans worth $8.2 billion supporting the government’s infrastructure flagship projects (IFPs), according to DEPDev.

Projects that benefited from the new loan commitments include the Laguna Lakeshore Road Network (LLRN), Dalton Pass East Alignment Phase I, additional funding for the Bataan-Cavite Interlink Bridge and Metro Manila Subway, and the infrastructure for safer and resilient schools.

Transport and connectivity infrastructure made up the largest share of the portfolio, totaling $42.8 billion or 62.7 percent, with 120 loans and grants.

The governance and institutions development sector accounted for 79 loans and grants worth $6.4 billion, or 16 percent of last year’s portfolio. Those projects focused on governance reforms, fiscal management, and institutional development.

Social reform and community development ranked third, with $5.4 billion or 13.5 percent allocated to 113 loans and grants for health, education, social protection, and human capital programs.

For his part, DEPDev Secretary Arsenio M. Balisacan said projects like the North-South Commuter Railway (NSCR) can boost long-term growth by promoting regional development and strengthening the economy’s resilience.

Balisacan stressed the government’s continued push for transformative investments to improve mobility and support regional integration.