(UPDATE) THE National Economic and Development Authority (NEDA) said 45 projects funded through foreign loans or grants were problematic, with 30 of these in the "critical stage."
There are 77 Official Development Assistance (ODA) projects approved by the Investment Coordination Committee (ICC).
The NEDA Monitoring and Evaluation Staff (MES) created the Alert Mechanism (AM) to identify and prioritize ODA-funded projects at risk of delays or cost overruns, classifying them as Potential or Actual Problem Projects for focused monitoring and support. An evaluation of these projects was conducted last year.
The Enhanced AM specifically monitors ICC-approved ODA projects from the start of their loans or grants until their closing dates.
The agency found that 30 projects worth P1.3 trillion were at Alert Level 2 or critical stage, while 15 projects valued at P743.41 billion were at Level I or early warning stage.
Another 10 projects worth P488.91 billion are at risk of becoming problematic, while three were classified as having no issues.
Socioeconomic Planning Undersecretary Joseph Capuno told reporters on Thursday that many of the projects faced major delays due to right-of-way problems, procurement challenges and regulatory compliance.
"Usually, the problems involve right-of-way issues. Even though the national government allocates funds for right-of-way acquisition and resettlement issues if it's not included in the budget, other parts of the project can't proceed as planned, like construction," Capuno said.
Without securing the land, construction can't proceed, leading to most of the problems, which are not only about funding but also the challenging task of relocating occupants, he said.
"They have to agree to be relocated, and that new place needs to have certain amenities. This can be quite difficult because it involves coordinating with other agencies, like the DSWD (Department of Social Welfare and Development) and the local government units," Capuno said.
"So even if the money is available, if the coordination with other agencies isn't arranged, it can still be a challenge," he said.
Among the problematic projects since 2021 were the Department of Environment and Natural Resources' Forestland Management Project and the Department of Energy's Access to Sustainable Energy Program.
Other government agencies with problematic projects:
Department of Transportation. Cebu Bus Rapid Transit Project, EDSA Greenways, New Cebu International Container Port Project, NSCR Project (Malolos-Tutuban or N1), and NSCR Extension Project (Clark Extension).
Department of Public Works and Highways. Arterial Road Bypass Project III, Davao City Bypass Construction Project, Improving Growth Corridors in Mindanao Road Sector Project, Metro Manila Interchange Construction Project, Phase VI, Metro Manila Priority Bridges Seismic Improvement Project, Reconstruction and Development Plan for Greater Marawi-Stage 2, Road Upgrading and Preservation Project, Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low-Lying Areas of Pampanga Bay, and Central Luzon Link Expressway, Phase I.
Department of Social Welfare and Development. Additional financing for the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services National Community-Driven Development Project, and Beneficiary Fast, Innovative and Responsive Service Transformation.
Department of Trade and Industry. Rural Agro-Enterprise Partnership for Inclusive Development and Growth (Rapid Growth) Project, the Jalaur River Multipurpose Project, Phase II of the National Irrigation Administration, and the Capacity Building to Foster Competition Project of the Philippine Competition Commission.
The NEDA-MES said it has put in place coordination and feedback mechanisms to improve project implementation, especially for those with persistent issues.
The mechanisms include conducting Project Implementation Review meetings, organizing one-on-one problem-solving sessions with agencies, and maintaining open communication with implementing agencies.
Capuno said the NEDA board will meet this week to assess which projects remain at the critical stage and which have shown improvement.
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