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By Darwin G. Amojelar, Reporter
Five government agencies incurred
billions in cost overruns in their foreign-funded projects in 2007.
Documents obtained from the
National Economic and Development Authority (NEDA) showed that 19
ongoing projects bankrolled by foreign donors exceeded spending by
P31.15 billion last year, from P30.33 billion in 2006.
Of the 19 projects, nine
undertaken by the Department of Public Works and Highways incurred
cost overruns amounting to P12.70 billion; four by the Department of
Transportation and Communications, P6.7 billion; also four by the
National Irrigation Administration, P4.1 billion; one by the Bases
Conversion and Development Authority, P6.47 billion; and also one by
the Light Rail Transit Authority, P1.12 billion.
NEDA said the reasons that the
five agencies gave for such overruns were high bids, consultancy
services, additional civil works, rights-of-way and land
acquisitions, currency-rate movements, increased administrative
costs and claims for price escalations.
Of the 19 foreign-funded
projects, 16 of them worth P26.23 billion were funded by Japan Bank
for International Cooperation; one costing P2.47 billion, by South
Korea; also one worth P1.24 billion, by China; and still another one
costing P1.22 billion, by the World Bank.
The cost overruns are subject to
reevaluation by the development authority’s Investment
Coordinating Committee.
Under the guidelines and
procedures of the authority and the committee, an ongoing program or
project involving changes in costs, scope, implementation period or
extension of loan validity beyond 12 months and resulting in cost
overruns or time overruns of more than 20 percent is subject for
reevaluation.
As of last year, the total
cumulative loans obtained as official development assistance, or ODA,
which financed 125 ongoing projects, reached $9.28 billion, broken
down into project loans of $8.17 billion and program loans of $1.31
billion.
Japan Bank for International
Cooperation continued to be the largest source of aid, accounting
for $2.5 billion of the total, followed by Asian Development Bank
with $2 billion, others at $1.9 billion, and the World Bank with
$1.8 billion.
Also in 2007, the Philippine
government’s total donor aid disbursement fell 17.9 percent to
$1.62 billion, from $1.97 billion in 2006. Its target for aid
disbursement last year was $1.96 billion.
The Philippines spent $1.03
billion of project loans, a decline of 16 percent, from $1.22
billion in 2006. Similarly, program loans went down by 21 percent to
$593 million last year, from $750 million in 2006.
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