COA calls out DPWH over P60B worth of delayed projects

Some P60 billion worth of Department and Public Works and Highways (DPWH) projects had not been completed during the target completion date as of end-2022, according to the Commission on Audit (COA).

In its annual audit report on DPWH, COA said a total of 1,798 projects were not finished or completed within the specific contract time or completion date, while 413 others, amounting to P27.47 billion, were suspended.

The COA also said 90 DPWH projects amounting to P5.1 billion were terminated or were for termination while 94 projects worth P3.55 billion had not been started at all during the year.

These over 2,300 projects cover locally-funded infrastructure projects, school buildings, and Farm-to-Market Roads (FMR), the state auditors said.

"Perusal of the report on the status of projects showed that significant delays in the implementation of the projects were caused by numerous suspension orders, time extensions and variation orders issued by the DPWH offices," COA said in its report.

It added that the projects were hampered by the following factors which the DPWH and its consultants were unable to consider during the preliminary engineering study on the viability of the projects:

• unfavorable site conditions caused by adverse weather conditions;
• road Right-of-Way (RROW) acquisition problems/issues;
• relocation/obstruction of public utilities and communication facilities (Maynilad, Meralco, and the like);
• pending issuance of permit/clearance from local government units, the Department of Natural Resources, the Department of Education, and from other agencies;
• modification and/or changes in feasibility studies, plans, detailed engineering design and program of works;
• slow/unsatisfactory performance of the contractor;
• accessibility of the project site is dependent on the completion of the other project;
• demolition of remaining/existing structures and other clearing related issues;
• delays in approval of time suspension/extension and variation orders;
• inaccessibility of the project site;
• resettlement of informal settlers’ families (ISF);
• unavailability of workable area caused by obstruction of ISF structures;
• overlapping of project/scope of works with projects implemented by LGUs, MMDA, DPWH ROs/DEOs, and other government offices;
• insufficient workforce/manpower, materials and equipment resources provided by the contractors;
• volcanic activities of Mayon Volcano under Alert Level 2;
• awaiting completion of ongoing construction projects for preceding phases;
• peace and order situation/insurgency;
• scarcity/non-availability of construction materials in the locality;
• late delivery of construction materials to project site;
• late release of funds;
• COVID-19 pandemic and
• failure/late conduct of bidding

According to COA, such reasons for delays are not all valid.

"Except for the COVID-19 pandemic and adverse weather conditions, the other identified causes of the delay in the implementation of infrastructure projects reflect the inadequacy of planning, supervision and monitoring of management relative to the project implementation,” the commission said.

"With the long years of exposure and experience of the DPWH in the implementation of infrastructure projects, adequate planning should have been considered regarding problems in RROW and conditions over the project location which are the perennial causes of the delays in the implementation of projects," it added.

The COA also said the causes or reasons of project delays need to be fully and immediately addressed by instituting remedial measures provided under DPWH Department Order No. 193.

This, it said, is to avoid further extension of project implementation period and possible incurrence of additional project costs, and to ensure the timely delivery of services and desired benefits to the intended users or beneficiaries.

The state auditors made the following recommendations:

• ensure full coordination with other government agencies, among others, the LGUs and DENR, including the community and private utilities, to achieve effective and more synchronized planning and implementation of programs and projects;
• consider the disqualification and/or blacklisting of contractors involved, and initiate the immediate takeover process of terminated projects to facilitate completion of the projects within the project timeframe; 
• thoroughly reviewing and evaluating the Program of Works to ensure  that project designs and estimates are properly prepared and that all phases of the projects are covered to minimize variation orders and time extensions which often resulted in the increase of project cost and delayed completion;
• strict monitoring and supervision of the status/progress of projects implemented by different DPWH offices, among others.

The DPWH, COA said, agreed with the abovementioned recommendations.

GMA News Online has reached out to DPWH for comment and will publish its reply as soon as it is made available. —KBK, GMA Integrated News