The Market Monitor Minding the Nation's Business
The National Economic and Development Authority (NEDA) has flagged 45 projects with official development assistance (ODA) funding as problematic, amid delays from implementation challenges, including right-of-way (ROW) acquisition issues.
In its 2023 ODA portfolio review report, the NEDA said 58 of the 77 ongoing Investment Coordination Committee (ICC)-approved ODA-funded projects were assessed as of the fourth quarter of last year, based on the submitted progress reports provided by implementing agencies.
Of the 58 projects, 45 projects were tagged as actual problem projects, failing either under Level 1, which is the early warning stage, or Level II, which is the critical stage due to persistent unresolved issues.
Meanwhile, Finance Secretary Ralph Recto admitted that all infrastructure projects funded by ODA are delayed.
Recto made the admission during a Senate briefing by the Development Budget Coordination Committee (DBCC) after Senator Nancy Binay asked whether any ODA-funded infrastructure projects are running on schedule.
During the deliberation, NEDA Secretary Arsenio Balisacan and other DBCC officials were mummed about it, but Recto quickly cited that the Pantawid Pamilyang Pilipino Program also came from ODA.
However, Binay retorted that it was not an infrastructure project.
“In my last seven months, from what I have seen, lahat (all are) delayed. But you know, many of them were started pre-pandemic,” Recto said.
The Finance Secretary explained that infrastructure projects often have long gestation periods, with one president starting the projects and another inaugurating them.
Recto added that many delays are due to the pandemic and ongoing right-of-way (ROW) issues.
Sen. Cynthia Villar said that ROW issues should not be an excuse, as long as there is proper monetary compensation.
ODAs are foreign loans and grants meant to help a country develop different sectors.
NEDA recently reported an ODA PORTFOLIO OF $37.29 billion in 2023. The 2023 ODA was largely dedicated to infrastructure projects, with $20.36 billion allocated for bolstering Philippine infrastructure.SUGGESTED PHOTO: Images of bridges or roads being constructed.