The Department of Public Works and Highways (DPWH) had encountered delays in the implementation of the P103.78 billion foreign-assisted projects which were restructured and, thus, affected the timely delivery of benefits as of Dec. 31, 2024.

In its audit report for 2024, the Commission on Audit (COA) said the DPWH’s nine Official Development Assistance (ODA) funded projects consisted of 26 consultancy and civil works contracts worth P103,780,055,173.34.

The COA identified the projects as the Pasig-Marikina River Channel Improvement Project Phase IV; Cavite Industrial Area Flood Risk Management Project; Infrastructure Preparation and Innovation Facility (IPIF) Additional Financing Output 2-Water Projects; Samal Island-Davao City Connector (SIDC) Project; Priority Bridges Crossing Pasig-Marikina River and Manggahan Floodway Bridges Construction Project Under China Government Financing Facility; Improving Growth Corridors in Mindanao Road Sector Project (IGCMRSP); Emergency Assistance for Reconstruction and Recovery of Marawi (EARRM)-Output 2; Road Network Development Project in Conflict-Affected Areas of Mindanao (RNDP-CAAM); and the Davao City Bypass Construction Project.

In its report, the COA said that State auditors noted slippages ranging from 0.76 percent to 55.96 percent, increased contract costs, and prolonged implementation timelines.

Five contracts under three major projects were highlighted by the COA, since it has a combined value of P27,046,556,358.22. It said the three projects had negative slippages ranging from 20.95 percent to as high as 55.96 percent as of Dec. 31, 2024.

"Based on the reports submitted by the Implementing Offices, the delays were attributed to various issues, including right of way (ROW) acquisition problems, delays in the preparation and approval of detailed engineering designs (DEDs), overlapping scope of works with other DPWH office, and prolonged coordination with stakeholders and other agencies," the report said.

The COA noted that since the ROW acquisitions were not provided in the General Appropriations Act, it hampered the release of funds by the Department of Budget and Management (DBM) which ultimately slowed down the work progress.

It attributed the other delays to unfavorable site conditions caused by adverse weather conditions, pending issuance of permits and clearances from other government agencies, and modifications of plans and designs.

With the exception of adverse weather conditions, the COA cited that the delays "reflect the inadequacy of planning and monitoring of Management relative to the project implementation."

"With the long years of exposure and experience of the DPWH in the implementation of infrastructure projects, adequate planning should have taken into account regarding problems in ROW and conditions over the project location which are the perennial causes of the delays in the implementation of projects," it stressed.

At the same time, the COA said there should be “better coordination efforts within the DPWH and with other government agencies to help improve the alignment of timelines and facilitate smoother project progress."

It lamented that the implementation delays contributed to the incurrence of commitment fees of P296,368,628.51 in 2024 due to underutilized loan proceeds. It also prompted five cases to be restructured in 2024, and two more projects are anticipated to be restructured in 2025, it added.

The COA recommended that the DPWH should conduct thorough due diligence during the feasibility and engineering stages to identify and proactively address potential risks, including ROW issues, site viability, and permitting requirements, among many other things.

It also asked the DPWH to implement a real-time monitoring dashboard to track down the progress of Foreign-Assisted Projects and focus on projects with significant slippage.