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Photo from the Facebook page of the Department of Public Works and Roads
MANILA, Philippines – The Department of Public Works and Highways (DPWH) has delayed and failed to implement projects worth P101.690 billion, the 2019 report from the Audit Commission (COA) showed.
According to COA, this is “contrary” to the Revised Implementation Rules and Regulations of the Republic Law No. 9184 or the Public Procurement Reform Law, as well as the agreed terms and conditions established for the contracts of the draft.
COA said that the “inadequate detailed engineering due to the absence of an adequate coordination mechanism with the LGUs (local government units) and other interested agencies, and the failure to establish the technical feasibility of the projects during the feasibility study and preliminary engineering, resulted in a delay in completion and implementation of 2,411 [DPWH] projects for a total of P101,690 billion ”.
It also said that the liquidated damages required for 54 projects with a contract amount totaling P607,811 million were not imposed, which have incurred delays that exceeded the allowed 10 percent of the specified original or revised contract time.
“However, (DPWH) management did not terminate / terminate the contracts or award damages to the contractors concerned as required by rules and regulations,” he added.
COA said an assessment on the status of the 2,411 regular infrastructure projects, school buildings, and farm-to-market highway projects implemented by DPWH offices from 2015 to 2019 revealed the following findings:
- 1,740 projects with a total cost of P65,989 billion were not completed or completed within the specific contract time or required completion date
- 550 projects worth P31 billion were suspended
- 40 projects were completed with a cost of at least P1,444 million
- 81 projects worth P3,206 billion were not started at all during the year
COA said the significant delays in the implementation of the projects were caused by suspension orders, time extensions and modification orders issued by the DPWH offices due to the following factors:
- Typhoon or unfavorable weather conditions
- Situation of peace and order
- Highway right-of-way
- Pending the issuance of the excavation permit / authorization from the LGU and the permits to cut down trees from the DENR and the necessary authorization from other agencies
- Modification of plans, design and works program
- Modification and realignment of the location / unavailability of the project site location
- Insufficient labor / labor provided by contractors
- Lack of equipment and transfer of equipment from one project site to another by the contractor with two or more projects
- Lack of availability and difficulty in transporting construction materials.
- Shortage of materials in the locality
- Project site inaccessible to heavy equipment
- Inadequate supervision and monitoring of the project
- Late release of funds
COA noted that DPWH’s consultants and management did not consider these factors during the preliminary engineering study on the feasibility of the projects.
“The absence of a coordination mechanism, which is among the vital parts of the feasibility study and preliminary engineering, hampered the immediate completion of projects resulting in inefficient implementation of programs / projects,” state auditors said in your 2019 report.
In its comment to the COA, the DPWH explained that the delayed implementation of the projects was due to the delayed release of capital outlay allocations that only began in June 2019 as a result of the delayed passage of the General Appropriations Act.
He also assured that close coordination is being carried out with interested agencies and local government units to resolve problems regarding the acquisition of rights of way and permits for the projects in question.
DPWH further said it is sending demand letters and notices to contractors to expedite project completion and observe project timelines.
KGA
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P118.4-B of DPWH projects delayed or not implemented – COA
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