DPWH put on notice to improve spending

THE Department of Public Works and Highways (DPWH) has been asked to adopt catch-up measures after failing to meet spending targets for its key programs, the Department of Budget and Management (DBM) said.

In its mid-year report, the DBM flagged the DPWH, which has one of the government’s biggest budgets, for falling short of its first-half targets.

“In the first half of 2024, the DPWH… had an average accomplishment rate of only 13%,” the DBM said.

According to the report, the DPWH’s Convergence and Special Support program posted the highest accomplishment rate at 31.3%.

The program aims to extend the length of access roads leading to airports, seaports, tourist destinations, industries, and railway stations. It also seeks to build infrastructure to support National Security roads, among others. 

On the other hand, the Network Development Program had a 0.9% accomplishment rate, the lowest among all programs. It aims to extend the length of newly constructed as well as widened roads.

Other programs that failed to meet the DPWH’s targets include the Asset Preservation Program, the Bridge Program, and the Flood Management Program.

“Given the Department’s low physical performance in the first semester, DPWH is strongly recommended to implement catch-up measures to ensure that the targets for the current year are met by the end of the year,” the DBM said.

According to the DBM, the DPWH should closely monitor project implementation, compare progress against targets, adjust quarterly targets, and address bottlenecks.

As of the end of June, DPWH allotments rose 25.2% year on year to P1.22 trillion. Of the total, P857 billion was obligated while P307.2 billion was disbursed.

The DPWH’s disbursement performance is expected to improve in the second half of the year due to payments and progress billing for completed and ongoing public works, including those initiated and fast-tracked during the dry season, the report said.

Meanwhile, the DBM also noted that the Department of Transportation (DoTr) failed to meet its targets for the Railway Construction, Rehabilitation and Improvement Sub-Program.

This was mainly due to the reduction of programmed appropriations for the DoTr’s foreign-assisted project (FAPs) to P3.5 billion, significantly lower than the P42.9-billion allocation last year.

The program only posted a 47.5% completion rate, against a 60.9% target. Its progress is measured via the percentage completion of both new and expanded railway system projects.

Rail expansion projects also failed to meet the 4.7% completion target, hitting a rate of 4.3%.

“Considering also the releases from the unprogrammed appropriations for support to foreign assisted projects, the DoTr is advised to prepare and implement catch-up plans to achieve the set target for the year,” the DBM said.

Total allotment releases to the DoTr dropped 21.2% to P176.4 billion. — Beatriz Marie D. Cruz