The Metropolitan Manila Development Authority (MMDA) opened the southbound lane of the EDSA-Kamuning Flyover in Quezon City on August 15, 2024. Maria Tan, ABS-CBN NewsMANILA — The Commission on Audit (COA) has flagged 22 out of 58 flood control projects of the Metro Manila Development Authority (MMDA) with a budget of P510.58 million for "not being completed within the original contract time" as of December 31,2023.

The delayed projects and programs are part of Phase 1 of the Metro Manila Flood Management Project (MMFMP 1).

In its annual audit report, the COA said the delays were attributed to poor strategies in the monitoring and implementation which often led to revisions in the target completion date.

The report said delays ranged from one to 310 days as of December 31,2023.

Of the 58 total projects, 39 were for procurement of goods and other services but only 19 were implemented. 20 are still for implementation.

Twelve projects involved consultancy services, but only one was implemented, five are on-going and six have yet to be implemented. 

As for the seven infrastructure projects, three were completed, one was listed as on-going and three are for implementation.

In its review, state auditors found that delays were mostly caused by supplier's request for extension of deliveries, change in procurement specifications, delay in procurement activities and revision of contract cost or duration. 

COA also found 29 flood control projects amounting to P371.029 million were not implemented due to non-observance of the conduct of early procurement activities and cancellation of projects.

According to Section 20 of General Provisions of Republic Act No. 11639, agencies are allowed to undertake early procurement activities as soon as the proposed national budget is submitted to Congress, notwithstanding mandatory procurement timelines. 

COA pointed out that the government has incurred P32.9 million commitment fees from 2018 to 2023 in relation to MMDA loan components due to implementation delays. 

"The foregoing observations indicate non-observance by the MMDA of the conduct of early procurement activities. It also manifested the Project Management Office’s inadequacy of strategies to strictly implement the planned programs/projects and closely monitor the implementation," the report read. 

"The MMDA must expedite the implementation of programs and projects as these will also improve the quality of services rendered to the public," it further stated. 

COA also found that the incurrence of higher commitment fees was caused by slow availment/low utilization of loan proceeds. 

The audit team reiterated its recommendations from the previous year.

In its reply, the MMDA explained the reasons behind the delayed projects.

"The PMO provided that the 22 sub-projects noted as 'not completed within the original contract time' have approved time extensions on the delivery of goods and services. The requests from service providers are mainly due to custom clearances, port congestion, changes of design and specifications for custom-made goods, re-conceptualization, changing weather conditions, time suspensions and variation orders," the MMDA said.

In its rejoinder, the audit team acknowledged the provision of approved time extensions. But it said "several revisions in the target completion time of projects may be an indication of ineffective planning." 

State auditors encouraged the PMO to enhance its planning mechanism and address foreseeable circumstances that may affect implementation.