THE Commission on Audit has hit delays in 15 foreign-assisted projects of the Department of Transportation (DOTr) with a combined cost of P1.313 trillion, saying the prolonged implementation is costing taxpayers millions in additional cost.
In the list released by the COA are the P628.42 billion North-South Commuter Railway-Extension System; the P356.964 billion Metro Manila Subway Project; the P149.13 billion PNR North I (Malolos-Tutuban); the P64.915 billion Light Rail Transit Line 1; the P21.966 billion MRT-3 Rehabilitation Project; the P16.309 billion Cebu Bus Rapid Transit Project; the P14.38 billion PNR South Long-Haul Project; the P10.869 billion New Communications, Navigation and Surveillance/Air Management System Development;
the P9.962 billion New Cebu International Container Port Project; the P9.511 billion LRT Line 2; the P8.915 billion New Bohol Airport; the P8.017 billion Maritime Safety Capability Improvement Project-Phase II; the P5.464 billion Metro Manila Bus Rapid Transit Project; the P5.142 billion Philippine Ports and Coast Guard Capability Development Project; and the P2.64 billion Infrastructure Preparation and Innovation Facility (IPIF) Output 3.
The restrictions and slowdown of economic activities bought about by the COVID-19 pandemic was the top cause of delay cited by the DOTr in 11 of the listed projects.
Other issues mentioned were hitches in budget and funding processes, site conditions, government approval, procurement of supplies, and design and technical modifications.
“Various issues/setbacks encountered in the implementation of 15 DOTr-FAPs in CY 2020 …resulted in prolonged/extended implementation…delays, possible changes in total project cost and slippages or low physical accomplishments,” the COA said
Worse, auditors noted that seven of the delayed projects have incurred P158.224 million in additional commitment fees that the government has to pay, according to Bureau of Treasury figures.
Of these, the Malolos-Clark Railway Project has incurred the biggest commitment fee totaling P102.77 million.
The others are the IPIF Output 3 (P30.86 million), the Capacity Enhancement of LRT Lines 1 and 2 extensions (P14.9 million), Metro Manila BRT Line 1 (P7.2 million), Cebu Bus Rapid Transit (P2.22 million), Philippine Ports and Coast Guard Capability Development (P167,316.84), and the New Bohol Airport project (P96,221.56.)
A commitment fee is levied by the foreign lending company on the unreleased portion of a loan, payable in the currency on which the loan was drawn.
“It bears stressing that delays in project implementation need to be addressed immediately to prevent further extension or services/project completion and possible incurrence of additional CFs,” the audit team warned.
The DOTR said it had prepared a workable schedule at the start of 2020 but the outbreak of the COVID-19 pandemic forced revisions of the project timetables.
