Our leaders get excited at every Official Development Assistance (ODA) projects offered by friendly governments to our country.
The trouble is that we grab them without even a well-defined project or program (including completed feasibility studies for them), even if such ODAs have stringent strings attached (including materials and consultants to be sourced from the ‘generous’ offerors).
The result: we find our country deep in debt, including interest and surcharges and penalties for non-payment or late payment that further buries us deep in debt burden.
They may be called ODAs or even grants but, mind you, they carry stiff interests, penalties and surcharges over a long period of time, especially if payments are delayed.
These are debts that even future generations of Filipinos must shoulder.
On Sunday, August 11, the National Economic and Development Authority (NEDA) reported that 45 ODAs projects, obviously obtained from the Duterte administration which shunned PPPs (public private partnerships) in favor of ODAs (where obviously someone can earn something somewhere) are in serious delays and financial challenges from unresolved issues ranging from right of way, procurement issues and compliance with regulatory requirements.
These include the Philippine Rural Development – Original Loan; Forestland Management; Access to Sustainable Energy Program; Cebu Bus Rapid Transit; EDSA Greenways; New Cebu International Container Port; North South Commuter Railway (Malolos-Tutuban or N1); NSCR Extension (Clark Extension); Arterial Road Bypass Project III; Davao City Bypass Construction; Improving Growth Corridors in Mindanao Road Sector; Metro Manila Interchange Construction Phase VI; Metro Manila Priority Bridges Seismic Improvement; Reconstruction and Development Plan for Greater Marawi - Stage 2; Road Upgrading and Preservation; Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low-Lying Areas of Pampanga Bay; Central Luzon Link Expressway Phase I; Additional Financing for the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services National Community-Driven Development; Beneficiary Fast, Innovative and Responsive Service Transformation; Rural Agro-Enterprise Partnership for Inclusive Development and Growth; Jalaur River Multipurpose Phase II and the Capacity Building to Foster Competition.
NEDA reported that as of 2013, 15 projects with a total value of P743.41 billion are classified at alert level 1, or the early warning stage, having been flagged as problematic for the first time.
The remaining 30 projects, valued at P1.3 trillion, are at alert level 2, or the critical stage, as they have been flagged for two consecutive quarters. Of the 45 projects identified as problematic in 2023, 22 have been classified as such since 2021.
NEDA’s 2023 ODA portfolio review report 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.
‘Problematic’ projects?
Of the 58 projects, 45 projects were tagged as actual problem projects, falling either under Level I, which is the early warning stage, or Level II, which is the critical stage due to persistent unresolved issues, the Philippine Star said.
The NEDA also said 10 projects are at risk of becoming problematic by breaching one of the four indicator categories, while three projects were categorized as no problem projects.
Challenges in project implementation were exacerbated by the health and logistical restrictions during the Covid-19 pandemic and the government’s tight fiscal space.
There were also additional delays due to inadequate appropriations for loan proceeds and the non-approval of proposed budgets for the ODA-funded projects starting 2022.
In a briefing, NEDA Assistant Director Paul Andrew Tatlonghari said that to address the issues, the implementing agencies of problematic projects were sent action letters and were asked about catch-up plans.
He said project implementation review meetings are also being conducted with implementing agencies.
If the issues cannot be addressed at the project management level, he said the secretary of the agency is being alerted about the problem.
“We flag them if they need to go back to the ICC for re-approval, if there are some parameters that’s already been breached. Like, say, if they’re nearing the closing of the loan, or if they’re already toward the end of the original target completion date. So we check those things and make sure that they comply with the latest ICC,” he said.
Budget woes
NEDA Undersecretary Joseph Capuno said some issues cannot be resolved within a quarter, especially if there are budget appropriation requirements.
“Our budget cycle is annual. So if you don’t get it this year, you have to wait for another year,” Inquirer quoted him saying.
He said issues involving delays in the negotiation of loans or in looking for potential investment partners or bidding requirements also cannot be addressed quickly.
“But we’re trying to resolve these things,” he said, citing latest developments such as the executive order facilitating the expeditious approval of permits for infrastructure flagship projects or priority projects.
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