Delays hamper ODA-funded infra

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.

- By BEN ARNOLD DE VERA and DERCO ROSAL

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 coordi-

nation 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.