Philippines ODA project delays persist as 69% of portfolio misses schedule

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Philippines ODA project delays

Highlights

At the end of 2025, 47 of 68 ongoing ODA-funded projects in the Philippines, representing 69.12% of the portfolio, remain behind schedule.
The approved cost of the 68 projects reaches P3.5 trillion, with infrastructure agencies responsible for 29 delayed projects and transport projects averaging a 51.5-month delay.
The active ODA portfolio expands to $41.84 billion at end-2025, up 5.71%, as loan commitments climb to $39.71 billion, led by Japan as top development partner.

2025 portfolio review highlights persistent execution gaps

As reported by BusinessWorld, citing the Department of Economy, Planning, and Development, 47 of 68 ongoing ODA-funded projects approved by the Investment Coordination Committee and the Economy and Development Council are behind schedule as of the end of 2025, while 21 remain on track. The findings appear in the agency's 2025 ODA Portfolio Review Report.

The delayed share falls to 69.12% from 72.13% in 2024, but the number of delayed projects rises from 44 out of 61 a year earlier. DEPDev says delayed implementation remains the dominant status across the portfolio, pointing to continued constraints in project startup, procurement, site readiness and execution against approved timelines.

The 68 assessed projects carry a combined approved cost of P3.5 trillion, made up of 61 loan-financed projects worth P3.39 trillion and seven grant-financed projects worth P111.52 billion. Of the 47 delayed projects in 2025, 37 were already behind schedule in 2024, eight moved from on-schedule to delayed status during the year, and two newly added projects also became delayed.

DEPDev says 22 projects have exceeded their original appraised completion dates, although several have secured extensions, while eight have gone beyond their latest ICC or ED Council-approved implementation end dates as of end-2025. The department says this underscores the need for earlier resolution of project readiness, procurement, site availability and approval requirements, as well as timely restructuring or extension requests when implementation moves beyond approved parameters.

Infrastructure agencies account for most delays

Projects handled by the Departments of Public Works and Highways and Transportation account for 29 of the delayed projects, reflecting the execution profile of large, multi-year infrastructure works. DEPDev says progress is often disrupted by right-of-way acquisition, site access, utility relocation, procurement, design validation, safeguards compliance and development partner or oversight approvals.

Among delayed projects with available data, the average delay narrows to 30.91 months in 2025 from 38.84 months a year earlier, largely because approved extensions realign some project timelines with current implementation conditions. Transport projects post the longest average delay at 51.5 months, with the Cebu Bus Rapid Transit Project the most delayed at 132.96 months and physical accomplishment of 11.43% at the end of 2025.

DEPDev says the Cebu project remains affected by site acquisition and right-of-way issues, including a cease-and-desist order covering Cebu Provincial Government-owned lots, as well as procurement delays for remaining civil works packages. DPWH projects record an average delay of 36.48 months, and the Metro Manila Priority Bridges Seismic Improvement Project is the department's most delayed project at 128.51 months behind schedule, with physical accomplishment at 4.62% at end-2025.

To address recurring slippages, DEPDev urges agencies to complete site validation, right-of-way mapping, utility relocation planning, safeguard compliance and land acquisition before procuring civil works where feasible. It also calls for earlier coordination with local government units, utility providers, affected communities and regulators, as well as closer work with the Department of Budget and Management and oversight agencies to improve the timing and adequacy of budget submissions and funding releases.

The broader ODA pipeline continues to expand despite the execution issues. The active ODA portfolio stands at $41.84 billion at the end of 2025, up 5.71%, while loan commitments rise 6.69% to $39.71 billion across 112 loans; grant value declines to $2.13 billion even as the number of grants increases to 340. Japan remains the largest development partner for a third straight year, followed by the Asian Development Bank, the World Bank and South Korea, while the U.S. holds the largest grants portfolio by value.

In our earlier article on the Philippines’ planned sovereign bond reforms and potential inclusion in J.P. Morgan’s Government Bond Index-Emerging Markets, we explained that modernization can support liquidity and broaden the investor base, but it does not automatically translate into stronger investment and productivity. We also noted that the payoff depends on fiscal credibility and, crucially, on how effectively the government converts any cheaper borrowing into well-selected, timely infrastructure and other productive spending—since delays, weak planning, or poor governance can erode the benefits.

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