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Elizabeth Marcelo - The Philippine Star
December 5, 2025 | 12:00am
MANILA, Philippines — The Commission on Audit (COA) has flagged the Department of Public Works and Highways (DPWH) over delays and inefficiencies in the implementation of locally funded and foreign-assisted infrastructure projects amounting to P138 billion and P103 billion respectively.
“The DPWH was unable to efficiently implement 2,596 locally funded projects with an aggregate cost of P138,227,528,871.99 due to inadequate planning, detailed engineering, supervision, and monitoring, which resulted in delayed completion and non-implementation of various projects contrary to pertinent provisions of the Revised Implementing Rules and Regulations of Republic Act (RA) 9184 (Government Procurement Reform Act) and the agreed terms and conditions of the contract,” the COA said in its 2024 annual audit report on DPWH.
The COA said its audit team’s verification and evaluation of the status of the 2,596 locally funded projects implemented by various DPWH regional offices revealed that a majority of the projects remained unfinished while several projects had yet to start as of Dec. 31, 2024.
The locally funded projects included school buildings and farm-to-market roads, according to COA.
The audit breakdown showed that 1,435 projects with total cost of P77.432 billion were “not completed within the specific contract time” while 523 projects amounting to P33.566 billion were suspended due range of factors such as “delays in issuance of necessary permits, presence of site obstructions such as pipelines or structures, and inaccessibility due to terrain conditions.”
“In other instances, adjustments to project plans and designs, limited availability of construction materials, and dependencies on the completion of related of related projects contributed to delays,” the COA added.
Meanwhile, 491 projects with a total cost of P19.212 billion have already incurred negative slippages of 10 percent and higher. A slippage pertains to the difference between the target accomplishment under the contract and the actual accomplishment during the project implementation.
The audit body said the high negative slippages were due to unresolved right-of-way (ROW) issues, unfavorable weather, variation orders, poor contractor performance and other problems that remain unaddressed by the agency.
It said the concerned DPWH offices “should have prepared contingency plans or initiated the termination of the contract or takeover of the remaining work by administration or assignment to another contractor or appropriate agency.”
Furthermore, 114 projects amounting to P6.725 billion remained “unimplemented” or have not yet started as of end of 2024.
The COA said the delays in the commencement of the projects were mainly due to late release of funding, pending project modifications as well as issues on site verification processes, duplication of projects and right-of-way.
In addition, 33 projects worth P1.291 billion were “terminated” due to unresolved road right-of-way issues, major deviations in original plans, structural and architectural modifications and technical impracticality.
“Delays in infrastructure projects have broader implications for public welfare and government efficiency. Communities are unable to benefit from essential services and the government faces financial inefficiencies and potential cost overruns,” the COA said.
“Furthermore, delayed projects can impact local economic growth and job creation. Overall, improving the speed and efficiency of project delivery is important to meet the goals of economic development and enhanced public services,” it added.
The COA also flagged the DPWH for the delayed implementation of foreign-assisted projects (FAPs) totaling P103.78 billion.
“Delays were encountered in the implementation of nine foreign-assisted projects with a total cost of P103,780,055,173.34, as evidence by negative slippages ranging from 0.76 percent to 55.96 percent, cost increases and extended implementation period,” the COA said.
It added that because of delays the government has incurred P296.368 million in commitment fees.
A commitment fee is paid to a bank or lender in exchange for the agreement to grant the loan at a later date. It serves as compensation to the lender for setting aside the amount of loan instead of utilizing it for other purposes to earn interests.
The COA said the reasons for the delays cited by the concerned implementing offices of the DPWH were right-of-way acquisition problems, delay in preparation and approval of detailed engineering designs, overlapping scope of works and prolonged coordination with stakeholders and other agencies.
“It is imperative for Management to urgently address the root causes of these delays to avoid further project cost escalations, mitigate risks of future restructuring and ensure that the intended socioeconomic benefits are delivered without further setbacks,” the COA told the DPWH.
