THE National Economic and Development Authority (Neda) has reported projects funded by official development assistance (ODA) incurred cost overruns totaling P14.25 billion in 2008.

Nine projects are involved. They were implemented by the North Luzon Railway Corp. (NLRC), Department of Public Works and Highways (DPWH), National Irrigation Administration (NIA), Philippine National Railways (PNR), Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP).

“The Investment Coordination Committee [ICC] secretariat received nine requests for cost increase from six agencies. Taken together, the request of NLRC and the DPWH account for the bulk, or 79 percent of the total P14.25-billion cost increase recorded for CY 2008,” according to the Neda.

“Cost overruns of two relending facilities amounting to P2.07 billion are in the nature of supplemental financing to augment existing loans due to robust demand for the facilities,” the Neda added.

The projects are the Northrail Project Phase 1 Section 1 and Northrail Project Phase 1 Section 2, the Southern Philippines Irrigation Sector Project, Rural Power Project of the DBP, and Northrail-Southrail Linkage Project Phase 1 of the PNR;

The Iloilo Flood Control Project II, Central Mindanao Road Project, and Urgent Bridge Construction Project for Rural Development of the DPWH, as well as investments in local government units of the LBP.

The Neda said projects funded by the Chinese government posted—the two Northrail projects—accounted for P5.99 billion, or 42 percent of the total cost overruns.

The main reasons cited for the costs over and above budget were cost increases in civil works recorded as cost increases in civil works which amounted to P10.43 billion or 73.2 percent of the total cost; contingencies, P2.75 billion; land acquisition, P1.95 billion; forex adjustments, P3.11 billion; and the robust demand for loans from the credit facilities of LBP and DBP, amounting to P2.07 billion.

In April, preliminary figures released by the Neda showed that the cumulative amount of overbudget spending for all 29 ODA projects as of December 2008 was P43.32 billion.