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Business

NIA clarifies status of projects amid COA flagging over delays

Louise Maureen Simeon - The Philippine Star

MANILA, Philippines — The National Irrigation Administration has reported that 257 contract packages have been completed after the Commission on Audit flagged the agency over the delays in its implementation of 299 irrigation projects totaling P20.7 billion.

In a statement, NIA said as of last month, 257 contract packages were completed, 11 ongoing, one suspended, five mutually terminated, and 11 blacklisted.

NIA conducted an assessment of the projects and it was found out that the 299 projects are actually 293 contract packages representing 134 projects.

“This means that there are projects with several contract packages. Reasons for the delay included unfavorable weather condition and delayed released of funds, which usually coincides with cropping season that virtually put a stop to construction especially in existing irrigation systems,” NIA said.

Of the 257 completed, 16 incurred liquidated damages (LD), of the 11 ongoing, seven incurred LD, while those terminated and blacklisted were either repackaged and therefore rebid or undertaken thru force account works.

“In both cases, further delay in the completion of these contract packages is expected. The 23 contract packages were meted with LD in the amount of P193.5 million,” NIA said.

The agency emphasized that there are multi-year big ticket projects which cannot be completed in a year’s time but rather three to five years, at most.

One of which is the Balog-Balog Multipurpose project which was started by then president Corazon Aquino but did not gain ground due to reasons beyond NIA’s control.

NIA administrator Ricardo Visaya has assured the public especially the farmers who are beneficiaries of the irrigation projects that NIA will fast track completion of the contract packages, however with the exception of big multi-year projects as well as those terminated blacklisted since it will undergo the same procurement process.

It was last August when COA scolded NIA, saying the completion of the projects has been delayed for up to 2,287 calendar days or 6.2 years “owing to the unsatisfactory performance of contractors.”

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COMMISSION ON AUDIT

NATIONAL IRRIGATION ADMINISTRATION

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