COA flags DOTr over delayed projects

The photo of the Commission on Audit's office in Quezon CIty taken on Aug. 17, 2021.
The STAR / Michael Varcas

MANILA, Philippines — The Commission on Audit has called out the Department of Transportation (DOTr) over its delayed projects amounting to P8.1 billion, which could have improved the mass transportation system.

In its 2021 annual audit report on the DOTr, the COA noted that as of Dec. 31, 2021, four major projects of the agency have yet to be completed, with delays ranging from four months to five years from the agreed completion dates.

Among the projects cited by the audit body was the supply of 48 light rail vehicles (LRVs) for the Metro Rail Transit Line 3 (MRT-3) capacity expansion projects.

The supply contract, amounting to P3.76 billion, was entered into with Dalian Locomotive and Rolling Stock Co. of China. It was supposed to be implemented from Feb. 26, 2014 to Jan. 20, 2017.

The COA, however, noted that as of end-2021, only nine of 48 LRVs were provisionally accepted from Dalian, pending their overhaul and final inspection.

Thirty-nine others have yet to undergo testing and commissioning, thus were not yet considered as accepted.

The COA in its previous audit report on the DOTr revealed that the LRVs were not equipped with an automatic train protector system when delivered by Dalian, contrary to what was agreed in the contract.

In a comment, the DOTr said it is pursuing a “catch-up implementation” for the project and has requested cash allocation from the Department of Budget and Management in order to settle the outstanding payables to Dalian.

The DOTr said that after the payment, conduct of testing and commissioning works could resume and the accepted LRVs “may then be gradually deployed for passenger service.”

Another delayed project cited in the audit report was the construction of the Unified Grand Central Station – Area A at North EDSA in Quezon City with a contract cost of P2.783 billion.

The project involved the construction of an additional viaduct for Light Rail Transit Line 1 as well as a platform, concourse area and trail track to be labeled as “EDSA Wing Line 1/Line 3” that would connect the LRT-1 and MRT-3.

The COA said the contract, awarded to BF Corp. and Foresight Development and Surveying Co. (BFC-FDSC), was supposed to be implemented for 20 months or 600 calendar days with the original target completion date of Jan. 4, 2021.

However, the BFC-FDSC requested for two contract time extensions (CTEs) – on April 13 and June 18, 2020 – citing the delayed project site access or possession due to restrictions caused by the COVID pandemic.

The approved CTEs prompted the adjustment of the target project completion date to July 31, 2021.

Another delayed project flagged by the audit body was the replacement of license plates of registered vehicle owners supposed to be implemented by the DOTr’s attached agency, the Land Transportation Office (LTO).

The COA said that as of the end of 2021, a total of 2.6 million pairs of replacement plates amounting to P1.15 billion, representing the fees collected from the owners of four-wheeled motor vehicles, remained undelivered.

The LTO had committed to fast-track the production and issuance of the backlog MV license plates, it said.

The fourth delayed project was the Public Utility Vehicle Modernization Program (PUVMP), with a total project cost of P392.62 million, supposed to be implemented by the Land Transportation Franchising and Regulatory Board. – Iris Gonzales

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