ALTHOUGH the implementation of projects funded with official development assistance (ODA) improved slightly last year, the Department of Economy, Planning, and Development (DepDev) said majority of the country’s ongoing projects remained behind schedule.
In its 2025 ODA Portfolio Review, DepDev said 47 of the 68 ongoing ODA-assisted projects monitored during the year, or 69.12 percent, were delayed. These projects have a combined approved cost of P3.50 trillion.
Of these, 37 were already delayed in 2024, while eight slipped from on-schedule status. Two other delayed projects were newly added to the portfolio.
Meanwhile, only 21 projects, or 30.88 percent, were on schedule, up from 27.87 percent at end-2024.
‘Delayed implementation remained the prevailing status of the portfolio, indicating continuing constraints affecting project start-up, procurement, site readiness, and execution against approved timelines,’ DepDev said.
Infrastructure projects accounted for the bulk of delayed initiatives, according to the agency.
Of the 47 delayed projects, 17 were being implemented by the Department of Public Works and Highways (DPWH), while another 12 were under the Department of Transportation (DOTr).
Usual slew of problems
The concentration of delays in infrastructure projects, DepDev said, reflects the difficulties involved in implementing large, multiyear developments.
These include securing rights of way and site access, relocating utilities, completing procurement and design reviews, complying with safeguards requirements, and obtaining necessary approvals from development partners and oversight agencies.
Other agencies with delayed projects included the Department of Agriculture (DA), with four; the Department of Finance (DOF), with three; and the Department of Education (DepEd), with two.
The slowdown in ODA implementation was also reflected in lower loan disbursements, which declined by 11.7 percent to $6.19 billion in 2025 from $7.01 billion in the previous year.
The decline was largely driven by program loans, whose drawdowns fell by 20.59 percent to $3.74 billion from $4.71 billion in 2024, reflecting lower releases from policy-based and budget support operations.
Project loan disbursements, however, rose by 6.52 percent to $2.45 billion from $2.3 billion. DepDev said the release of project loans remained dependent on procurement progress, civil works implementation, delivery milestones, and compliance with loan withdrawal requirements.
Despite the increase in project loan disbursements, implementation delays remained substantial. The average delay among projects with available data narrowed to 30.91 months in 2025 from 38.84 months in 2024, while the median delay stood at 17.47 months.
DepDev attributed the lower average delay largely to ‘approved implementation period extensions, which realigned selected project timelines with current implementation conditions.’
Transport projects continued to post the longest delays, with DOTr projects averaging 51.50 months behind schedule.
Longest delay: Cebu bus project
The Cebu Bus Rapid Transit Project recorded the longest delay at 132.96 months, with physical accomplishment reaching only 11.43 percent as of end-2025.
Its implementation continued to be hampered by site acquisition and right-of-way issues, including a cease-and-desist order covering lots owned by the Cebu provincial government, as well as procurement delays involving the remaining civil works packages, the DepDev said.
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DPWH projects followed with an average delay of 36.48 months. Among these, the Metro Manila Priority Bridges Seismic Improvement Project was delayed by 128.51 months, with physical accomplishment at just 4.62 percent.
The project continued to face right-of-way and resettlement issues, including pending relocation arrangements for informal settler families affected by the works.
Majority at risk
DepDev also flagged potential implementation problems in 44 of the 68 ODA projects approved by the Investment Coordination Committee (ICC) or the Economy and Development Council.
More than half of the projects, or 37, were classified under At-Risk Level II, or the Critical Stage, indicating that implementation concerns had persisted across reporting periods. These accounted for 54.41 percent of the portfolio.
Another seven projects, equivalent to 10.29 percent, were placed under At-Risk Level I, or the Early Warning Stage, indicating emerging problems that could still be addressed through early intervention.
Meanwhile, 14 projects, or 20.59 percent, were classified as For Attention, while 10 projects, or 14.71 percent, had not breached any risk category.
Most projects with comparable year-on-year assessments retained their previous risk classifications. Several remained under At-Risk Level II because of persistent issues involving physical progress, procurement, site readiness, financing, and project restructuring, DepDev said.