Author Topic: Only 34% of DPWH 2017 budget utilized  (Read 92 times)

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Only 34% of DPWH 2017 budget utilized
« on: July 08, 2018, 12:01:19 AM »
Only 34% of DPWH 2017 budget utilized
Elizabeth Marcelo (The Philippine Star) - July 8, 2018 - 12:00am

https://www.philstar.com/headlines/2018/07/08/1831586/only-34-dpwh-2017-budget-utilized

MANILA, Philippines — Bureaucratic bottlenecks have stalled the administration’s flagship “Build, build, build” infrastructure program.

As a result, the Department of Public Works and Highways (DPWH) failed to utilize 66.4 percent or P440 billion of its P662.69-billion allocated budget for 2017, a report by the Commission on Audit (COA) showed.

The COA said that although the DPWH was able to obligate 92.19 percent or P610.93 billion of its allotted budget for 2017, only P222.66 billion or 34.14 percent was actually disbursed as of yearend.

The COA cited the “delayed/non-implementation of infrastructure projects” as the primary reason for the DPWH’s low fund disbursement.

It said the DPWH’s inability to efficiently utilize its budget was apparent for the last three years, as the agency was only able to disburse 34.14 percent or P185.12 billion of its P542.23-billion allotted budget in 2016 and 34.03 percent or P148.23 billion of the P435.58-billion allotted budget in 2015.

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Commitment fees
The COA said the delayed implementation of the infrastructure projects has also caused the government to lose P27.647 million in commitment fees for the loans extended by Japan International Cooperation Agency (JICA).

Commitment Fee (CF) is a fee paid to a bank in exchange for the bank’s agreement to grant a loan at a later date.

Records showed that in 2012, JICA extended P4.94 billion in loans to the Philippines for six infrastructure projects – Central Luzon link expressway; arterial road bypass project II; Pasig-Marikina River channel improvement phase II; flood risk management project for Cagayan River, Tagolaon River and Imus River; road upgrading and preservation; and road improvement and institutional development projects.

The COA said a review of the DPWH’s loan utilization showed that only 15.45 percent or P762.70 million has been disbursed as of the end of 2017.

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