Recto: Philippines’ ODA-Funded Infrastructure Projects Delayed

Finance Secretary Ralph Recto confirmed on Tuesday that all Philippine infrastructure projects funded by official development assistance (ODA) are currently delayed. This acknowledgment came in response to inquiries from senators about the status of these projects, which Recto indicated might incur commitment fees if further delayed.

Reasons for Delays

Recto attributed the delays to the pandemic, explaining, “In my last seven months, from what I have seen, lahat delayed. But many of them started pre-pandemic and many of them kaya na-delay din because of the pandemic.” He emphasized the importance of funding these projects within the year to avoid additional commitment fees.

Funding and Budget Considerations

For 2024, some foreign-assisted projects are listed under unprogrammed appropriations, meaning they will be funded only if the government collects excess revenues or secures new loans for these projects. Recto outlined that there are approximately P178 billion in foreign-assisted projects for 2024, with the government planning to provide P50 billion. This brings the total funds for ODA projects to roughly P228 billion.

Recto also mentioned using idle funds to finance infrastructure projects without incurring additional debt or imposing new taxes on citizens. He stated, “Kung gagamitin natin ‘yung mga natutulog na pondo para magawa ‘yung mga infrastructure projects ng walang dagdag utang, walang dagdag buwis sa mamamayan, so ‘yun ang ginawa namin kung anong inutos ng Kongreso.”

Senate Reactions

Senator Cynthia Villar, a member of the bicameral conference committee for the 2024 budget bill, expressed that the committee was not informed about the transfer of foreign-assisted projects from programmed to unprogrammed appropriations. She mentioned, “We were not informed that there was a transfer… ang tsismis d’yan tinransfer ‘yung right of way ng DPWH at saka ‘yung equity para sa foreign assisted project to unprogrammed account tapos hindi sinabi sa amin.”

Senator Loren Legarda also committed to investigating this issue, stating she would ask the Senate Legislative Budget Research and Monitoring Office (LBRMO) about the decision process. “Aalamin namin kung anong parte ng proseso pinasok ‘yun para hindi na mangyari na muli na hindi naiintindihan lahat yung repercussions noon,” Legarda said.