THE World Bank has extended the closing date of a $300-million project in the Philippines after delays in civil works prevented the program from meeting key targets, including the retrofitting of public buildings in Metro Manila.
A restructuring paper released by the Washington-based lender showed that the Philippines’s ‘Seismic Risk Reduction and Resilience’ project’s closing date has been moved by six months to December 31, 2026 from the original June 30, 2026 deadline.
Approved in June 2021, the project seeks to improve the seismic safety of around 425 public buildings in Metro Manila, including schools and other government facilities, while strengthening the emergency response capabilities of the Department of Public Works and Highways (DPWH).
Nearly five years after its approval, however, no retrofitting works have been completed.
‘The Project is currently rated Moderately Unsatisfactory on the achievement of the [Project Development Objective] and Implementation Progress. The first PDO indicator is not met because no civil works have been completed and the second PDO indicator is partially achieved with equipment procured,’ the World Bank said.
Data from the lender showed that only $66 million, or 22 percent of the project’s $300 million financing, had been disbursed as of the latest assessment, leaving more than $231 million undisbursed.
The World Bank attributed the delays largely to bureaucratic bottlenecks, citing ‘complex internal review and approval processes’ as well as ‘heavy documentary and signatory requirements.’
‘This has delayed project implementation, especially civil works, the largest component in the project,’ it said.
Despite the setbacks, the lender noted signs of progress in recent months. Contracts for the retrofitting of the first 67 schools were awarded in May, while procurement for additional buildings is expected to proceed in the coming months.
Still, the World Bank said the six-month extension is only an interim measure as the government completes internal approval processes for a more comprehensive restructuring that would likely include a longer implementation period and revisions to project targets needed to achieve the project’s development objectives.
‘The second restructuring will be processed upon completion of all necessary internal procedures. The PDOs will be achievable under extended implementation timeframe, after the second restructuring,’ it added.