COA: DPWH records over P100B delayed, unimplemented projects for second year

The Department of Public Works and Highways (DPWH) recorded over P100 billion worth of delayed and unimplemented projects for the second straight year in violation of Procurement law and agreed contracts, the Commission on Audit (COA) said.

In its 2019 annual audit report on DPWH, state audits said that these delayed and unimplemented projects reached P101 billion in 2019, lower than 2018 figure of P118 billion.

COA said that P101 billion covers 2,411 infrastructure projects, school buildings and farm to market road projects broken down to:

• P65.9 billion which were not finished nor completed within the specific contract time or required completion date;
• suspended projects worth P31 billion;
• terminated projects costing at least P1.44 billion and
• P3.2 billion worth of projects which have not been started at all during the year

COA said that the delays were due to the following:

• typhoon or unfavorable weather condition;
• peace and order situation;
• road Right-of-Way;
• pending issuance of excavation permit/clearance from LGUs, and permits for cutting trees from Environment department and necessary clearance from other agencies;
• modification of plans, design and program of works;
• modification and realignment of location/nonavailability of project site location;
• insufficient workforce/manpower provided by the contractors;
• lack of equipment and transfer of equipment from one project site to another site by the contractor with two or more projects;
• unavailability and difficulty in hauling construction materials;
• scarcity of materials in the locality;
• inaccessible project site for heavy equipment;
• inadequate project supervisions and monitoring; and
• late release of funds.

Further, state auditors noted the required liquidated damages were not imposed for 54 projects with contract amount totaling P607.811 million—projects, which have incurred delays that exceeded the allowable 10% of the specified original/revised contract time.

“Except for typhoon or unfavorable weather condition, all issues enumerated above are factors which are unintentional but procedural and consequential issues that should have been considered and resolved during the preliminary engineering study on the viability of the project and pre-construction activities,” COA said.

“Absence of coordination mechanism in place, which is among the vital parts of the feasibility and preliminary engineering study, hampered the immediate completion of the projects that resulted in inefficient implementation of the programs/projects, contrary to the afore-cited provisions of Procurement law,” COA added.

Given the findings, COA reiterated its previous year’s recommendations which include:

• ensuring full coordination with other government agencies, among others, the LGUs and DENR, including the community and private utilities;
• imposing liquidated damages on the contractors for every day of delay and initiate termination/rescission of contract on infrastructure projects when liquidated damages reaches 10% and negative slippages reach more than 15% arising from contractor’s fault or negligence;
• impose sanctions on erring DPWH personnel who may be remiss of their obligations
• consider disqualification and/or blacklisting of contractors and
• initiate the immediate take-over process of terminated projects to facilitate completion of the projects within the project timeframe

In response to COA’s findings, DPWH attributed the delayed implementation of projects to the delayed release of capital outlay allotments, which only started in June 2019 due to delayed approval of 2019 national budget law.

DPWH also vowed close coordination with the concerned national government agencies, LGUs, ISFs and other agencies to address/resolve issues pertaining to right-of-way acquisitions and permit and sending demand letters and notices to contractors to fast track the project completion at the soonest possible time.

DPWH also said that efforts such as planning, coordination, periodic inspection and close coordination are being made, and that it will send letters to contractors with negative slippage to accelerate implementation.

As to right of way issues on suspended projects, DPWH assured the public that constant monitoring and coordination will be implemented, as well as Preliminary Detailed Engineering will be improved to address the issue.

As regards the termination of contracts, DPWH said coordination is being made with the concerned contractors for the submission of relevant documents.  —KBK, GMA News