The cumulative commitment fees (CFs) paid out by the national government for the official development assistance (ODA)-funded projects tagged as problematic has reached P2.2 billion, the Department of Finance (DOF) said.
“If I recall, it’s about P2.2 billion, cumulative,” finance secretary Ralph Recto said during the 2025 National Budget Deliberations in the Senate of the Philippines yesterday.
This was further confirmed by DOF international finance group undersecretary Joven Balbosa during the briefing, as he said: “For the 45, total commitment fees is at $38.5 million (or roughly P2.2 billion).”
Balbosa confirmed this can continue to increase as projects are delayed.
“Undisbursed balance… would already incur commitment fees, and as projects extend and request extensions and delays, that would continue,” he said.
According to the National Economic and Development Authority (NEDA), a commitment fee is a levy or charge imposed by lenders to the borrowers on the undrawn scheduled availment of the loan.
By paying this fee, the borrower demonstrates their commitment to taking the loan and compensates the lender for the cost of setting aside the funds.
According to the latest ODA portfolio review, the national government paid a total of $13.87 million, or nearly P800 million, in CFs in 2023 alone, marking a 30 percent increase compared to the previous year.
The report said that among the projects funded by active ODA loans in 2023, the Asian Development Bank-funded North South Commuter Railway (NSCR) Project, part of the North-South Commuter Railway System, incurred the highest CF in 2023 at $2.41 million, or roughly P138 million.
Similarly, the Malolos-Clark Railway Project, which is also part of the NSCR System, contributed notably to CFs incurred during the year, amounting to $1 million, or around P57 million.
“Together, these two projects accounted for nearly a quarter of the total CFs paid in 2023,” the portfolio review said.
Earlier, it was reported that 45 official ODA-funded projects, valued at roughly P2 trillion, were assessed or flagged as “actual problem projects,” representing an overwhelming majority of the ongoing ODA-funded projects in the 2023 portfolio, due to persistent unresolved issues.
These projects have faced significant delays due to common implementation bottlenecks, such as right-of-way acquisition, procurement issues and compliance with regulatory requirements.
