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COA Report: P261-M Bohol infrastructure projects face 10-month procurement delay

A recent audit report from the Commission on Audit (COA) has revealed significant delays in the implementation of infrastructure projects in Bohol province, potentially impacting development efforts.

The report, which focuses on the Intensified Building-Up of Infrastructure and Logistics for Development (I-BUILD) component of the Philippine Rural Development Project (PRDP), revealed procurement issues that have led to extended timelines and postponed benefits for intended beneficiaries.

According to the COA findings, the procurement activities for two I-BUILD subprojects, with a combined cost of P261.969 million pesos, took 420 days to complete. This duration far exceeded the prescribed timeline of 123 calendar days under the project’s guidelines, resulting in a delay of 297 days.

The I-BUILD component is part of the PRDP, a nationwide initiative that aims to establish a network of strategic rural infrastructure. The project focuses on linking priority value chains in targeted areas through the regional Agricultural and Fisheries Modernization Plan.

The audit report states that out of seven approved I-BUILD subprojects in Bohol from 2014 to 2022, with an aggregate cost of P549,392,887.39 pesos, five subprojects costing P287,423,149.49 pesos were completed between 2016 and 2022.

These completed projects were funded through the original financing, amounting to P162,366,830.40 pesos, and the first additional financing of P125,056,319.09 pesos.

However, the remaining two subprojects, valued at P261,969,737.90 pesos, were still undergoing the procurement process. These uncompleted projects are being funded by the second Additional Financing (AF2) program of PRDP for I-BUILD.

The delayed subprojects include:

1. Rehabilitation of Poblacion-Candijay FMR in Loon, Bohol, with a cost of P91,448,601.20 pesos .

2. Rehabilitation of Campagao-Cabacnitan FMR in Bilar, Bohol, costing P170,521,136.70 pesos.

A detailed breakdown of the procurement process revealed several stages that significantly exceeded their allotted timeframes. The most notable delay occurred during the “Conduct of Evaluation and comparison of bids including post-qualification and submission of Bid Evaluation Report (BER) to RPCO” stage, which took 231 days instead of the prescribed 30 days, resulting in a 201-day delay.

The COA report attributes part of the delay to issues in the Bid Evaluation procurement stage.

The BAC Secretariat disclosed that there was a problem in the Bid Evaluation procurement stage for the two subprojects that took almost eight months of consultation between the Provincial Government of Bohol and the Regional Program Coordination Office (RPCO), Project Support Office (PSO), and National Project Coordinating Office (NPCO).

The PPMIU Alternate Head also reported that various consultancy meetings and communications were conducted during this period to address the issues.

The delay in the procurement process has had a cascading effect, postponing the start of contract implementation by the winning bidders and the completion of the subprojects. This setback has consequently delayed the intended beneficiaries from enjoying the benefits of these infrastructure improvements.

The I-BUILD component of the PRDP is designed to support various rural infrastructure projects, including:

– Farm-to-Market roads (FMRs)

– Bridges

– Communal Irrigation System (CIS)

– Potable Water System (PWS)

– Production and post-production facilities

– Other infrastructure such as fish landings, fish sanctuary, and protected area guardhouse

The project is structured as an 80:10:10 financing scheme, with loan proceeds from the Government of the Philippines (GOP) accounting for 80%, the Local Government Unit (LGU) providing 10% cost-sharing, and the remaining 10% coming from other sources.

Despite the delays, the audit report notes that several completed Farm-to-Market Road (FMR) subprojects under I-BUILD are now operational and being used for their intended purpose of improving access and delivery of farm products to the market. These completed projects include:

1. Rehabilitation of San Agustin-Canmaya Diot FMR, Sagbayan, Bohol (P48,189,515.51 pesos)

2. Rehabilitation of Del Carmen-Weste via Tugbas FMR, Balilihan, Bohol (P27,715,128.50 pesos)

3. Rehabilitation of Baang-Mahayag Norte FMR, Catigbian, Bohol (P29,857,820.21 pesos)

4. Rehabilitation of Dagnawan-Dagohoy FMR, Inabanga, Bohol (P125,056,319.09 pesos)

5. Rehabilitation of Alagria-Bugho FMR, Loboc, Bohol (P56,604,366.18 pesos)

The total cost of these completed projects amounts to P287,423,149.49 pesos.

The timely completion of these rural infrastructure projects is crucial for improving agricultural productivity, enhancing market access for farmers, and ultimately contributing to the overall economic development of Bohol’s rural communities, COA said.

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