COA: DPWH failed to efficiently carry out P138 billion projects in 2024

The Department of Public Works and Highways (DPWH) failed to efficiently implement P138 billion worth of locally-funded projects in 2024, the Commission on Audit (COA) said.

In its 2024 annual audit report on the DPWH, the COA said the inefficient implementation of these projects was due to inadequate planning, detailed engineering, supervision, and monitoring.

The P138 billion worth of projects affected by the inefficiency include:

• 1,435 projects not completed within the specific contract time worth P77.4 billion
• 523 suspended projects worth P33.6 billion
• 33 terminated projects worth P1.29 billion
• 114 unimplemented/not yet started projects and worth P6.72 billion, and
• 491 projects with negative slippages of 10 percent and above worth P19.2 billion.

“These resulted in delayed completion and non-implementation of various projects contrary to pertinent provisions of the Revised Implementing Rules and Regulations of Republic Act No. 9184 and the agreed terms and conditions of the contract,” the audit body said.

“Delays in infrastructure projects have broader implications for public welfare and government efficiency. Communities are unable to benefit from essential services, and the government faces financial inefficiencies and potential cost overruns,” the COA added. 

State auditors added that the DPWH also spends additional time in managing delays, which can divert resources from other important initiatives.

“Delayed projects can impact local economic growth and job creation. Overall, improving the speed and efficiency of project delivery is important to meet the goals of economic development and enhanced public services,” the COA said.

They urged the DPWH to address these inefficiencies with the following actions: 

• ensure full coordination with other government agencies, among others, the local government units (LGUs) and the Department of Environment and Natural Resources (DENR), including the community and private utilities, to achieve effective and more synchronized planning and implementation of programs and projects;
• enforce liquidated damages for contractors responsible for delays, consider the disqualification and/or blacklisting of contractors involved, and initiate the immediate take-over process of terminated projects and projects with negative slippages of 15% and above to facilitate completion of the projects within the project time frame; 
• minimize/avoid further delays in project implementation by conscientiously carrying out the detailed engineering to ensure that issues such as the relocation of informal settlers and the viability of the project sites are properly addressed during the feasibility or preliminary engineering study prior to project implementation;
• 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 result in an increase in project cost and delayed completion;
• directing the Bids and Awards Committee to properly verify and evaluate during post-qualification the operating conditions of equipment and other construction requirements, among others, to ensure the adequacy, availability, and suitability of the contractor's technical capability; and 
• strict monitoring and supervision of the status and progress of projects implemented by different DPWH offices.

The DPWH is at the center of the flood control controversy, which has implicated not just DPWH officials but lawmakers in alleged irregularities and corruption.

Earlier, the House of Representatives reduced the DPWH’s proposed 2026 budget by P255 billion and realigned this to items for education and social service, such as:

• P32.6 billion for the Department of Social Welfare and Development’s (DSWD) Assistance to Individuals in Crisis Situations (AICS)
• P14.82 billion for the Department of Labor and Employment’s (DOLE) Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD)
• P56 billion for the additional funding to the Philippine Science High School System (PSHS system), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), and State Universities and Colleges (SUCs), among others.

— JMA, GMA Integrated News