2017 ODA Audit Report Highlights Commitments, Availments and Recommendations

2017
Consolidated Audit Report

on
Official Development Assistance
Programs and Projects
TABLE OF CONTENTS
Page
1.0 INTRODUCTION
1.1 Legal Basis 1
1.2 Scope and Sources 2
1.3 Methodology 4
2.0 HIGHLIGHTS OF THE REPORT

2.1 Gross Commitments 6
2.2 Availments 7
2.3 Undrawn Commitments 7
2.4 Repayments 8
2.5 Debt Service Expenditures for the year 8
2.6 Commitment Fees for the year 9
2.7 Audit Observations and Recommendations 9
3.0 STATUS OF ODA-FUNDED PROJECTS

3.1 Cumulative Gross Loan Commitments 10
3.2 Availments 14
3.3 Undrawn Commitments 19
3.4 Repayments 21
3.5 Debt Service Expenditures 25
3.6 Outstanding Balances 28
4.0 AUDIT OBSERVATIONS AND RECOMMENDATIONS

4.1 Consolidated Audit Observations and Recommendations 33
A. Project Sustainability 33
B. Project Implementation and Management 35
C. Financial Management 49
D. Compliance with Existing Laws, Rules and Regulations and 60
Provisions of the MOA
E. Reliability of Financial Statements 70
4.2 General Audit Recommendations 76
4.3 Status of Implementation of Prior Years’ Audit Recommendations 77
5.0 CHARTS
I Loan Structure by Sector and Creditor Type Indicating the Number of 3
Loans Contracted and CNLC
II Loan Status 6
III CGLC, CL and CNLC 6
IV Schedule of Availments and Undrawn Balances by Type of Creditor 7
V Loan Availments, Repayments and Balances by Type of Creditor 8
VI Comparative Repayments in relation to Availments 22
VII Debt Service Expenditures 25
VIII Outstanding Balance by Creditor Type 28
IX Number of Loans and Outstanding Balances by Sector 29
6.0 TABLES
I Status and Breakdown of Loans 3
II Current and Cumulative Loan Availments by Project and Government 7
Sector
III Debt Service Expenditures by Creditor Type 9
IV Debt Service Expenditures by Sector 9
V Commitment Fees Paid by Type of Creditors and Loans 9
VI List of New ODA Loans 10
VII Cancelled Commitments for 2017 10
VIII Schedule of Cumulative Net Loan Commitments by Creditor 11
IX Schedule of Cumulative Net Loan Commitments by Sector 13
X Schedule of Cumulative Net Loan Commitments by Implementing 13
Agency
XI Cumulative and Current Year Availments by Creditor 14
XII Cumulative and Current Year Availments by Project Sector 16
XIII Cumulative and Current Year Availments by IA 16
XIV Programs and Projects for Implemention by Various IAs out of 17
CY 2017 Availments
XV Schedule of Loans with Undrawn Balances by Creditor 19
XVI Schedule of Undrawn Balances by Project Sector 20
XVII Schedule of IAs with Undrawn Balances 21
XVIII Cumulative and Current Year Repayments by Creditor 22
XIX Cumulative and Current Year Repayments by Project Sector 23
XX Cumulative and Current Year Repayments by IA 24
XXI Debt Service Expenditures by Creditor 25
XXII Debt Service Expenditures by Implementing Agencies 26
XXIII Debt Service Expenditures by Project Sector 27
XXIV Changes on Loan Outstanding Balance 28
XXV Outstanding Balances by Specific Creditor 28
XXVI Five Loans under each Project Sector with big Outstanding Balances 30
XXVII Outstanding Balances by Government Sector 31
XXVIII Outstanding Balances by IA 32
XXIX Operational Status of Completed Projects 33
XXX Status of Implementation of PY’s Audit Recommendations 77
LIST OF ACRONYMS
4 Ps Pantawid Pamilyang Pilipino Program

AARNR Agriculture, Agrarian Reform and Natural Resources
ABC Approved Budget for the Contract
ACSP Agricultural Credit Support Project
ACT Area Coordinating Teams
ADB Asian Development Bank
AFC Automated Fare Collection
AO Accountable Officer
APP Annual Procurement Plan
ARBP PH II Arterial Road Bypass Project, Phase II
ARCP II Agrarian Reform Communities Project II
ARE Acknowledgement Receipt for Equipment
ARIIP Agno River Integrated Irrigation Project
AWOL Absent without leave
BAC Bids and Awards Committee
BFAR Bureau of Fisheries and Aquatic Resources
BIR Bureau of Internal Revenue
BOC Bureau of Customs
BRS Bank Reconciliation Statement
BS Bank Statements
BSPMC Barangay Sub-project Management Committee
BTr Bureau of the Treasury
CA Certificate of Acceptance
CAAR Consolidated Annual Audit Report
CADF Carbon Asset Development Program
CAMDP Clark Area Municipal Development Project
CAR Cordillera Administrative Region
CAs Cash Advances
CBFMMP Community-Based Forest and Mangrove Management Project
CBRT Cebu Bus Rapid Transit
CCC Commodity Credit Corporation
CCP Coastal Commodity Package
CCT/MCCT Conditional Cash Transfer/Modified Conditional Cash Transfer
CEMTSMMP Capacity Enhancement of Mass Transit Systems in Metro Manila Project
CFI Community Financial Institution
CHARMP Cordillera Highland Agricultural Resource Management Program
CHI-I China National Construction and Agriculture Machinery I
CIB-LCCA Cash in Bank – Local Currency, Current Account
CIP Construction In Progress
CIS Communal Irrigation Systems
CLC Cumulative Loan Cancellation
CNLC Cumulative Net Loan Commitment
CNS/ATM Communication, Navigation, Surveillance/Air Traffic Management
CO Central Office
COA Commission on Audit
CSC Civil Service Commission
CTEs Contract Time Extensions
LIST OF ACRONYMS
CY Calendar Year
DA Department of Agriculture
DAR Department of Agrarian Reform
DARPO Department of Agrarian Reform Provincial Office
DBM Department of Budget and Management
DBP Development Bank of the Philippines
DENR Department of Environment and Natural Resources
DepEd Department of Education
DFIMDP Diversified Farm Income and Market Development Project
DILG Department of Interior and Local Government
DMAD Debt Monitoring and Analysis Division
DO Department Order
DOE Department of Energy
DOF Department of Finance
DOH Department of Health
DOTr Department of Transportation
DPWH Department of Public Works and Highways
DSWD Department of Social Welfare and Development
DTI Department of Trade and Industry
DV Disbursement Voucher
ECGD Export Credit Guarantee Department - Deutsche Bank
EDC Export Development Corporation
EHRDP Expanded Human Resources Development Program
EIB European Investment Bank
ENP Emergency Network Project
EO Executive Order
EPC Estimated Project Cost
E-Trike Energy Efficient Electric Vehicles Project
EU-HSPSP II EU-Health Sector Policy Support Programme
FAP Foreign-assisted Projects
FAR Financial Accountability Report
FFIs Foreign Funding Institutions
FLAD Foreign Loan Accounting Division
FMP Forest Management Project
FMR Farm-to-Market Road
FO Field Office
FXRC Foreign Exchange Risk Cover
FY Fiscal Year
GAA General Appropriations Act
GAM Government Accounting Manual
GCF General Control Fund
GID Governance and Institutions Development
GMDSSP Global Maritime Distress Safety System Project
GOCCs Government Owned and Controlled Corporations
GPPB Government Procurement Policy Board
GSIS Government Service Insurance System
HOPE Head of the Procuring Entity
LIST OF ACRONYMS
IA Implementing Agency
IARCDSP Italian Assistance to the Agrarian Reform Community Development Support
Program
IBRD International Bank for Reconstruction and Development
I-BUILD Intensified Building up of Infrastructure and Logistics for Development
IIRUP Inventory and Inspection Report of Unserviceable Property
IMA Implementation Management Agreement
IMOs Irrigation Management Offices
Infra Infrastructure
InfRES Infrastructure for Rural Productivity Enhancement Sector Project
INREMP Integrated Natural Resources and Environmental Management Project
I-REAP
Investments in Rural Enterprises and Agriculture and Fisheries Productivity
IRR Implementing Rules and Regulations
ITT Industry, Trade and Tourism
JEV Journal Entry Voucher
JICA Japan International Cooperation Agency
JRMPP Jalaur River Multi Purpose Project Stage
JSDF Japan Social Development Fund
KALAHI- Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of
CIDSS Social Services
KC-AF KALAHI CIDSS - Additional Financing
KC-NCDDP KALAHI CIDSS - National Community-Driven Development Project
LAF Livelihood Assistance Fund
LBP Landbank of the Philippines
LCCA Local Currency Current Account
LCE Local Chief Executive
LD Liquidated Damages
LGUs Local Government Units
LIGs Livelihood Interest Groups
LRT Light Rail Transit
LRTA Light Rail Transit Authority
LRV Light Rail Vehicles
MASELCO Masbate Electric Cooperative
MBUSSP Mindanao Basic Urban Services Sector Project
MCW Magna Carta on Women
MDFO Miunicipal Development Fund Office
MDP Monthly Disbursement Program
MDS Modified Disbursement System
MESP Missionary Electrification Subsidy Program
MIMAROPA Mindoro, Marinduque, Romblon, Palawan
MINSAAD Mindanao Sustainable Agrarian and Agriculture Development
MLGU Municipal Local Government Unit
MM Municipal Monitor
MOA Memorandum of Agreement
MOMARO Mindoro Oriental Marinduque Romblon
MOOE Maintenance and Other Operating Expenses
LIST OF ACRONYMS
MRD Monthly Report of Disbursement

MSCIP Maritime Safety Capability Improvement Project
MSIP III Maritime Safety Improvement Project, Phase 3
MSSP Manila Second Sewerage Project
MWSS Manila Water and Sewerage System
NAC National Advisory Committee
NBAC-SEPP New Bohol Airport Construction and Sustainable Environmet Protection Project
NCA Notice of Cash Allocation

NCAA Non-Cash Availment Authority
ND Notice of Disallowance
NEDA National Economic Development Authority
NFA National Food Authority
NG National Government
NGAs National Government Agencies
NGAS New Government Accounting System
NGDAD National Government Debt Accounting Division
NGOs/POs Non-Governmental Organizations/Peoples' Organization
NIA National Irrigation Administration
NICIS Non-intrusive Container Inspection System
NIS National Irrigation Systems
NISRIP National Irrigation Sector Rehabilitation and Improvement Project
NOL No Objection Letter
NPCO National Project Coordination Office
NPMO National Project Management Office
NPS-ENRMP National Program Support for Environment and Natural Resources
Management Project
NRIMP National Roads Improvement and Management Project
NS Notice of Suspension
NYI Not Yet Implemented
ODA Official Development Assistance
ORs Official Receipts
OTC Over the Counter
PAD Project Appraisal Document
PAR Property Acknowledgment Receipt
PAS Philippine Accounting Standards
PB Progress Billings
PCCP Portland Cement Concrete Pavement
PD Presidential Decree
PEEP Philippine Energy Efficiency Project
PENRO Provincial Environment and Natural Resources Office
PHP Philippine Peso
PIA PHIVIDEC Industrial Authority
PIDP Participatory Irrigation Development Project
PLGU Provincial Local Government Unit
PMO Project Management Office
PMU Project Monitoring Unit
LIST OF ACRONYMS
PO Purchase Order
POPSTIRP Pepeng Short-Term Infrastructure Rehabilitation Projects
PPADP Puerto Princesa Airport Development Project
PPCGCDP Philippine Ports and Coast Giard Capability Development Project
PPE Property, Plant and Equipment
PPELC PPE Ledger Card
PPIADP Puerto Princesa Airport Development Project
PPMIU Provincial Project Management Implementing Unit
PPRPC Pantawid Pamily Regional Program Coordinator
PPSAS Philippine Public Sector Accounting Standards
PR Purchase Request
PRDP Philippine Rural Development Project
PREMRP Pasig River Environment Management and Rehabilitation Project
PRES Philippine Rural Electrification Service
PRRC Pasig River Reconstruction Commission
PS-DBM Procurement Service – Department of Budget and Management
PSO Project Support Office
PTA Philippine Tourism Authority
PTR Property Transfer Form
PWDs Persons with Disabilities
PWS Potable Water System
PWU Provincial Women's Union
QPRO Quarterly Physical Report of Operation
QTP Qualified Third Party
RA Republic Act
RCI Report of Checks Issued
RD Regional Director
RFO Regional Field Office
RFQ Request For Quotation
RIIDP Road Improvement and Institutional Development Project
ROW Right-of-Way
RPCI Report on the Physical Count of Inventory
RPCO Regional Project Coordination Office
RPCPPE Report on the Physical Count of Property, Plant and Equipment
RPMO Regional Project Management Office
RSMI Report of Supplies and Materials Issued
RUPP Road Upgrading & Preservation Project
RZOA Raiffeissen Zentralbank Osterreich Aktiengeselschaft
SARO Special Allotment Release Order
SBC Small Business Corporation
SBMA Subic Bay Metropolitan Authority
SC Supreme Court
SCBAA Statement of Comparison of Budget and Actual Amounts
SCHARMP Second Cordillera Highland Agricultural Resource Management Project
SFP Statement of Financial Performance
SHS Solar Home Systems
SL Subsidiary Ledger
LIST OF ACRONYMS
SP Sub-projects
SPMB Subproject Monitoring Board
SPs Sub-Projects
SPSP Social Protection Support Project
SRCD Social Reform and Community Development
SREs Statement of Receipts and Expenditures
SRPMO Sub-Regional Project Management Office
SRRDP Social Reform Related Feeder Ports Development Projects
SSAF Sources and Application of Funds
SSC Staff Selection Committee
SUSIMO Sub-project Site Management Office
SWD Social Welfare and Development
SWDRP Social Welfare and Development Reform Project
TADP Third Airports Development Project
TCT Transfer Certificate of Title
TE Time Extension
TESDA Technical Education and Skills Development Authority
TIEZA Tourism Infrastructure and Enterprise Zone Authority
TS Technical Specifications
TSC Technical Support Consultant
TSPs Technical Service Providers
TWG Technical Working Group
UBCPRD Urgent Bridges Construction Project-Rural Development
UME-DEMS Upgrading of the Medical Equipment of DEMS
USPL U.S. Public Law
WB World Bank
WFP Work and Financial Plan
WHO World Health Organization
YRP Yolanda Reconstruction Program
ZDN Zamboanga del Norte
ZDS Zamboanga del Sur
ZSP Zamboanga Sibugay Province
1.0 INTRODUCTION
CONSOLIDATED AUDIT REPORT ON
OFFICIAL DEVELOPMENT ASSISTANCE
FOR THE CALENDAR YEAR 2017
1.0 INTRODUCTION
1.1 Legal Basis
Official Development Assistance is governed by Republic Act (RA) No. 8182,

approved on June 11, 1996 as amended by RA No. 8555, approved on February 26, 1998,
entitled:
“An Act Excluding Official Development Assistance (ODA) from

the Foreign Debt Limit in order to Facilitate the Absorption and
Optimize the Utilization of ODA Resources, Amending for the
Purpose Paragraph 1, Section 2 of RA No. 4860, as amended”.
The law was issued to facilitate the absorption and optimize the utilization of ODA
resources. It also excluded ODA loans from foreign debt limit of US$10 billion or its
equivalent in other foreign currencies as set under Presidential Decree (PD) No. 1939, the
law amending RA No. 4860. The ODA loan remains the preferred source of financing priority
development projects of the country due to its lower interest rate and longer maturity periods
compared to other foreign loans.
Under Section 2 of RA 8182, ODA is defined as a loan, or a loan and grant, which
meets all of the following criteria:
a. It must be administered with the objective of promoting sustainable social and

economic development and welfare of the Philippines;
b. It must be contracted with governments of foreign countries with whom the

Philippines has diplomatic, trade relations or bilateral agreements or which are
members of the United Nations, their agencies and international or multilateral
lending institutions;
c. There are no available comparable financial instruments in the capital market;

and
d. It must contain a grant element of at least twenty-five percent (25%). Grant

element is the reduction enjoyed by the borrower whenever the debt service
payments which shall include both principal and interest and expressed at their
present values discounted at ten percent (10%) are less than the face value of
the loan or loan and grant. The grant element of a loan or loan and grant is
computed at the ratio of (i) the difference between the face value of the loan or
loan and grant and the debt service payments to (ii) the face value of the loan
or the loan and grant.
Public debt is governed by RA No. 4860, issued on August 8, 1966. Under Section
1 of this Act, the President of the Philippines is authorized, in behalf of the Republic of the
Philippines, to contract such loans, credits and indebtedness with foreign governments,
agencies or instrumentalities of such foreign governments, foreign financial institutions, or
1
other international organizations, with whom, or belonging to countries with which, the
Philippines has diplomatic relations, as may be necessary and upon such terms and
conditions as may be agreed upon, to enable the Government of the Republic of the
Philippines (ROP) to finance, either directly or through any government office, agency or
instrumentality or any government-owned or controlled corporations, industrial, agricultural
or other economic development purposes or projects authorized by law. It is also provided
in this section that the authority of the President of the Philippines shall include the power
to issue, for the purposes herein before stated, bonds for sale in the international markets,
the income from which shall be fully tax-exempt in the Philippines.
The total amount of loans, credits and indebtedness, excluding interests, which the
President is authorized to incur, as provided under Section 2 thereof, shall not exceed US$1
billion or its equivalent in other foreign currencies at the exchange rate prevailing at the
time the loans, credits and indebtedness are incurred, provided that the total loans, credit
and indebtedness incurred shall not exceed US$250 million or its equivalent in other
currencies in the fiscal year of the approval of the Act, and US$250 million or its equivalent
in other currencies every fiscal year thereafter.
The foreign debt limit was, however, increased under PD No. 1939 issued on June
27, 1984 amending RA No. 4860 to an amount not exceeding US$10 billion or its equivalent
in other foreign currencies at the exchange rate prevailing at the time the loans, credits or
indebtedness are incurred at terms of payment of not less than 10 years except those
contracted in the interest of national security and rehabilitation resulting from natural
calamities. Section 2 of PD No. 1939 further amended the last paragraph of Section 3 of
RA 4860 to read as follows:
“The total amount of loans, credits or indebtedness incurred, and the

proceeds of bonds, securities or other evidences floated or issued, which
may be guaranteed by the President under this Section shall not be more
than US$7.5 billion or its equivalent in other foreign currencies at the
exchange rate prevailing at the time the guarantee is made excluding
interests and other normal banking charges imposed or charged by the
International Bank for Reconstruction and Development (IBRD), the Asian
Development Bank (ADB) and other similar international financial
institutions”.
The President, under Section 20, Article VII, of the 1987 Philippine Constitution, may
also contract or guarantee foreign loans in behalf of the Philippines with the prior
concurrence of the Monetary Board, and subject to such limitations as may be provided by
law. The Monetary Board shall, within thirty days from the end of every quarter of the
calendar year, submit to Congress a complete report of its decision on applications for loans
to be contracted or guaranteed by the Government or government-owned and controlled
corporations (GOCC) which would have the effect of increasing the foreign debt, and
containing other matters as may be provided by law. As discussed earlier, ODA loans are
excluded from foreign debt limit of US$10 billion or its equivalent pursuant to RA No. 8182.
1.2 Scope and Sources
1.2.1 The report contains data on 459 ODA loans consisting of 73 program loans and 386
project loans contracted and guaranteed by the National Government (NG) from
January 1, 1995 to December 31, 2017. Project loans are foreign loans obtained to
finance specific projects. On the other hand, Program loans are multi-purpose foreign
loans not intended to finance specific projects, but are conditioned on basic changes
2
in economic, monetary or fiscal policies, among others. RA No. 8182, as amended
by RA No. 8555, applies only to loans contracted from January 1, 1995 onward.
The status and breakdown of 459 ODA loans with cumulative net loan commitment
(CNLC) 1amounting to P1.93 trillion (US$38.64 billion) are presented in Table I.
Table I – Status and Breakdown of Loans

CNLC
Breakdown
Status (in billion)
Program Project Total USD PHP
Active 4 43 47 9.24 461.62
New: 2 11 13 1.74 86.89
Newly Signed/ Effective 2 10 12 1.70 85.17
Not Yet Effective 1 1 0.03 1.72
Closed 67 325 392 27.63 1,380.29
Cancelled 0 7 7 0.03 1.51
Total 73 386 459 38.64 1,930.31
USD 15.07 23.56 38.64
CNLC (in billion)
PHP 753.08 1,177.24 1,930.31
Difference between totals and sum of components is due to rounding off.
1.2.2 The loans were obtained from bilateral, multilateral and commercial creditors and
utilized for various projects under the Sector of Infrastructure (Infra); Social Reform
and Community Development (SRCD); Industry, Trade and Tourism (ITT);
Agriculture, Agrarian Reform and Natural Resources (AARNR); and Governance and
Institutions Development (GID). The graphical presentation of the loan structure by
Sector and Creditor Type is shown in Chart I.
Chart I – Loan Structure by Sector and Creditor Type Indicating the Number
of Loans Contracted and CNLC
1
The specified amount of loan or line of credit is made available to the named borrower at a certain interest rate, during a certain period and,
usually, for a certain purpose. The cumulative net loan commitment (CNLC) is the amount of loan commitments after deducting the amount of
commitments cancelled as of the given period.
3
(Chart I, continued)
Num ber of Loans Contracted by CNLC by Sector and Creditor Type
Source/ Sector (in billion)
Creditor
Total
Type AARNR GID ITT Infra. SRCD Total AARNR GID ITT Infra. SRCD
US$ PHP
Bilateral 45 6 11 140 20 222 92.85 44.30 37.37 667.52 57.87 18.01 899.91
Commercial 8 1 1 37 12 59 11.51 1.23 0.31 58.07 8.99 1.60 80.12
Multilateral 44 16 13 53 52 178 108.91 174.97 33.55 164.13 468.73 19.02 950.29
Total PhP 97 23 25 230 84 459 213.27 220.50 71.23 889.72 535.59 38.64 1,930.31
Total US$ 4.27 4.41 1.43 17.81 10.72 38.64
1.2.3 The data are sourced from the following:
a) Status Report on NG Direct and Guaranteed Loans prepared by the Debt

Monitoring and Analysis Division (DMAD), Bureau of the Treasury (BTr) showing
the details of foreign loans by loan account number, creditor and implementing
agency with summary on the type of loans and creditors.
b) List of ODA loans signed during the year forwarded to the Commission on Audit
(COA) by the Department of Finance (DOF) and Status of Loans submitted by
the National Economic Development Authority (NEDA).
c) Summary of Debt Service Expenditures - Foreign prepared by the National

Government Debt Accounting Division (NGDAD), BTr showing payments by the
NG broken down into Principal, Interests, Commitment Fees and Other Charges
for the Direct and Relent Loans.
d) Actual Debt Service, ODA - Funded Projects prepared by concerned GOCCs

showing direct payments by the GOCCs to their creditors for the NG Guaranteed
loans.
1.2.4 The Project Status and Consolidated Audit Observations and Recommendations as
of December 31, 2017 to be presented later are based on the reports submitted by
the concerned auditors of the implementing agencies.
The above table does not include Foreign-Assisted Projects (FAPs) funded from
ODA grants.
1.3 Methodology
COA maintains database on ODA loans which is updated annually based on the
Status Report submitted by the DMAD BTr, the list of new loans submitted by DOF, the
status of loans extracted from NEDA Report and project status as reported by the
implementing agencies (IAs).
Based on updated database file, COA prepares schedules of ODA loans by creditor,
sector and IA indicating the data on commitments, availments, repayments, and undrawn
and outstanding balances per loan account and project. COA adopted the sectoral
classifications of loans/projects being used by NEDA. The data are presented in tables and
charts with narrative discussion.
4
All balances were translated to local currency equivalent using the BSP weighted
average rate at reporting date which was published on the first working day of the ensuing
year. Third currency balances are first converted to US Dollars (USD) before translating to
Philippine Peso (PhP) using the exchange rate at reporting date.
Considering the provisions under Section 8 (b) of RA No. 8182, as amended,

mandating COA to conduct an audit of ongoing and completed projects and submit report
to Congress, COA directed Auditors of the National Government Agencies (NGAs), GOCCs
and Local Government Units (LGUs) implementing ODA funded projects to undertake the
audit of said projects and submit their ODA Audit Report to their Cluster and Sector head
for consolidation. The consolidated report are required to be submitted to the Office of the
Assistant Commissioner, National Government Sector (NGS), for preparation of overall
consolidated Audit Report on ODA Funded Projects. The consolidated audit observations
and recommendations were grouped into audit issues for emphasis.
5
The NG contracted 459 ODA loans (including seven cancelled loans), from 1995 to
2017, with Cumulative Gross Loan Commitments (CGLC) of P2.14 trillion (US$42.93 billion)
and Cumulative Net Loan Commitments (CNLC) of P1.93 trillion (US$38.64 billion) for
financing 409 programs and projects of the Government. Of the total CNLC, P1.48 trillion
(US$29.65 billion), representing 76.75 percent, was availed as of December 31, 2017,
leaving total undrawn amount of P448.85 billion (US$8.98 billion). The undrawn amount
represents 23.25 percent of the CNLC. On the other hand, of the total amount availed of
P1.48 trillion (US$29.65 billion) as of December 31, 2017, cumulative repayment as of the
same period amounted to P562.64 billion (US$11.26 billion) leaving outstanding balance of
P918.53 billion (US$18.37 billion), as presented in Chart II.
Chart II – Loan Status (in billion PhP)
Cum. Undrawn Cum. Outstanding

CGLC CLC CNLC CNLC Repayments
Availments Balances Availments Balances
Amount 2,144.68 214.37 1,930.31 1,930.31 1,481.47 448.85 1,481.47 562.64 918.83
Percentage 100.00 10.00 90.00 100.00 76.75 23.25 100.00 37.98 62.02
In 2017, 10 ODA loans were contracted with net loan commitments of P74.85 billion
(US$1.50 billion). Of the net loan commitments, only P299.75 million (US$6.0 million) were
availed leaving undrawn amount of P74.55 billion (US$1.49 billion). This amount represents
99.60 percent of the total net loan commitments for the loans contracted during the year. On
the other hand, debt service expenditures for 2017 amounted to P66.97 billion inclusive of
interest of P16.20 billion, commitment fee of P230.17 million, guaranty fee of P644.21 million
and other charges of P1.41 billion.
Of the 409 programs and projects financed out of these loans, 336 were completed, 53
are on-going, 8 are yet to be started, while 12 were cancelled.
2.1 Gross Commitments – P2.14 trillion (US$42.93 billion)
The CGLC from 459 ODA loans as of December 31, 2017 amounted to P2.14
trillion or US$42.93 billion. Of the amount, P214.37 billion (US$4.29 billion) or 10.0
percent represents Cumulative Loan Cancellations (CLC) leaving CNLC of P1.93 trillion
(US$38.64 billion), as graphically presented in Chart III.
Chart III – CGLC, CLC and CNLC (in billion PhP)
6
(Chart III, continued)
No. of CGLC CLC CNLC % to
Creditor Type
Loan US$ PHP US$ PHP US$ PHP Total
1 Bilateral 222 20.05 1,001.85 2.04 101.94 18.01 899.91 46.62
2 Commercial 59 1.90 94.78 0.29 14.67 1.60 80.12 4.15
3Multilateral 178 20.98 1,048.05 1.96 97.76 19.02 950.29 49.23
Total 459 42.93 2,144.68 4.29 214.37 38.64 1,930.31 100.00
% to CGLC 100.00 10.00 90.00
2.2 Availments – P1.48 trillion (US$29.65 billion)
ODA loans availed by the Government were intended to implement programs and
projects of the different sectors. Total cumulative availments from 452 loan accounts
(excluding cancelled loans) as of December 31, 2017 amounted to P1.48 trillion
(US$29.65 billion). Of the total availments, P70.21 billion (US$1.41 billion) were availed
in CY 2017. The current year and cumulative loan availments by creditor type, and
distribution by project and government sector are presented in Table II.
Table II- Current and Cumulative Loan Availments by Project and Government Sector (in billion)
Sources Distribution
Amount % to G o v e rn- Amount % to Project Amount % to
Creditor Type m e nt
US$ PHP Total Secto r US$ PHP Total Sector US$ PHP Total
2017 Availments
1 1 AARNR 0.14 7.02 9.99
Bilateral 0.25 12.61 17.97 1 GOCCs 0.06 3.05 4.34
2 GID 0.02 0.99 1.41
2 3 ITT - - -
Commercial 0.02 0.99 1.41 2 LGUs - - -
4 Infra. 0.31 15.27 21.75
3 Multilateral 1.13 56.60 80.63 3 NGAs 1.34 67.16 95.66 5 SRCD 0.94 46.93 66.85
Total 1.41 70.21 100.00 Total 1.41 70.21 100.00 Total 1.41 70.21 100.00
Cumulative Availments
1 1 AARNR 3.42 170.86 11.53
Bilateral 12.35 617.00 41.65 1 GOCCs 6.74 336.73 22.73
2 GID 3.91 195.58 13.20
2 3 ITT 1.43 71.22 4.81
Commercial 1.60 80.04 5.40 2 LGUs 0.21 10.63 0.72
4 Infra. 11.86 592.49 39.99
3 Multilateral 15.70 784.42 52.95 3 NGAs 22.70 1,134.10 76.55 5 SRCD 9.03 451.33 30.46
Total 29.65 1,481.47 100.00 Total 29.65 1,481.47 100.00 Total 29.65 1,481.47 100.00
Difference b etween totals and sum of components is due to rounding off.
2.3 Undrawn Commitments – P448.85 billion (US$8.98 billion)
The undrawn commitments of P448.85 billion (US$8.98 billion) as of December

31, 2017 represents 23.25 percent of the CNLC. Shown in Chart IV is the graphical
presentation of CNLC, in relation to availments and undrawn balances as of December
31, 2017, summarized by type of creditor.
Chart IV- Schedule of Availments and Undrawn Balances by Type of Creditor

(in billion PhP)
7
(Chart IV, continued)
Cumulative Undrawn
CNLC % to
Creditor Type Availments Commitments % to CNLC
CNLC
US$ PHP US$ PHP US$ PHP
1 Bilateral 18.01 899.91 12.35 617.00 68.56 5.66 282.91 31.44
2 Commercial 1.60 80.12 1.60 80.04 99.90 0.00 0.08 0.10
3 Multilateral 19.02 950.29 15.70 784.42 82.55 3.32 165.86 17.45
Total 38.64 1,930.31 29.65 1,481.47 76.75 8.98 448.85 23.25
2.4 Repayments – P562.64 billion (US$11.26 billion) and Outstanding Balances –

P918.83 billion (US$18.39 billion)
Out of the cumulative availments of P1.48 trillion (US$29.65 billion), P562.64

billion (US$11.26 billion) was already repaid with outstanding balances of P918.83
billion (US$18.39 billion). The amount is equivalent to 62.02 percent of the total
cumulative availments which represents balances from 330 loan accounts out of 452
total loan (net of cancelled loans) accounts.
Shown in Chart V are the loan cumulative Availments, Repayments and Balances
as of December 31, 2017, summarized by type of creditor.
Chart V - Loan Availments, Repayments and Balances by Type of Creditor

(in billion)
Cumulative % to Outstanding
Repayments % to
Creditor Type Availments Avail- Balances A v a ilm e nt s
US$ PHP US$ PHP ments US$ PHP
1 Bilateral 12.35 617.00 5.05 252.16 40.87 7.30 364.84 59.13
2 Commercial 1.60 80.04 1.14 57.14 71.39 0.46 22.90 28.61
3 Multilateral 15.70 784.42 5.07 253.34 32.30 10.63 531.08 67.70
Total 29.65 1,481.47 11.26 562.64 37.98 18.39 918.83 62.02
2.5 Debt Service Expenditures for the year – P66.97 billion
During the year, the total debt service payments to creditors amounted to P66.97
billion inclusive of interest, commitment fees and other charges, as presented in Table
III.
8
Table III- Debt Service Expenditures by Creditor Type (in million PHP)
Commit- Guaranty Other % to

Creditor Type Principal Interest Total
ment Fees Fee Charges Total
1 Bilateral 20,397.97 4,893.28 111.56 462.39 964.34 26,829.55 40.06
2 Commercial 2,521.84 772.40 6.07 50.12 140.47 3,490.89 5.21
3 Multilateral 25,562.95 10,537.82 112.54 131.70 306.87 36,651.88 54.73
Total 48,482.76 16,203.50 230.17 644.21 1,411.69 66,972.32 100.00
% to Total 72.39 24.19 0.34 0.96 2.11 100.00
Difference between the totals and the sum of the components is due to rounding off.
By Project Sector, 36.42 percent of debt service expenditures represent

repayment to loans falling under infrastructure sector, as shown in Table IV.
Table IV - Debt Service Expenditures by Sector (in million PHP)

Commit- Guaranty Other % to
Sector Principal Interest Total
ment Fees Fee Charges Total
1 AARNR 7,292.11 2,070.64 47.27 21.55 161.75 9,593.33 14.32
2 GID 11,074.12 2,372.47 1.60 - 268.14 13,716.33 20.48
3 ITT 3,674.43 518.23 0.22 60.51 30.56 4,283.94 6.40
4 Infra. 18,493.26 4,466.42 72.75 562.16 795.15 24,389.74 36.42
5 SRCD 7,948.84 6,775.75 108.33 - 156.07 14,988.98 22.38
Total 48,482.76 16,203.50 230.17 644.21 1,411.69 66,972.32 100.00
% to Total 72.39 24.19 0.34 0.96 2.11 100.00
2.6 Commitment Fees for the year – P230.17 million
Commitment fees paid for 35 loan accounts during the year alone for the
undrawn balance amounted to P230.17 million or 0.24 percent of the undrawn balances
of these accounts amounting to P96.11 billion, as presented in Table V.
Table V- Commitment Fees Paid by Type of Creditors and Loans (in million PHP)
Commitment Fees % to
No. of Undrawn
Creditor Type NG- NG Undrawn
Loans Balance NG Direct Total
Guaranteed Relent balance
1 Bilateral 18 50,401.15 76.59 34.97 - 111.56 0.22
2 Commercial 2 61.78 6.07 - - 6.07 9.82
3 Multilateral 15 45,647.31 112.32 0.22 - 112.54 0.25
Total 35 96,110.24 194.98 35.18 - 230.17 0.24
% to Total 84.71 15.29 - 100.00
2.7 Audit Observations and Recommendations
The audit observations and recommendations, summarized and grouped together

by audit issues or by nature of deficiencies were presented in Part 4. Details are
discussed in the Annual Audit Reports of the concerned Agency.
9
3.0 STATUS OF ODA LOANS –
FUNDED PROGRAMS AND
PROJECTS
3.0 STATUS OF ODA LOANS – FUNDED PROGRAMS AND PROJECTS
3.1 Cumulative Gross Loan Commitments (CGLC) – P2.14 trillion (US$42.93 billion)
As discussed earlier, of the 459 loans contracted by the NG as of December 31, 2017
with CGLC amounting to P2.14 trillion (US$42.93 billion), 10 loans amounting to P74.85
billion (US$1.50 billion), representing 3.49 percent, were secured and signed during the
year.
The 10 new loans were secured by NGAs and GOCCs with 48.29 percent of the gross
commitment going to the Social Reform and Community Development Sector with the DILG,
TESDA/DTI/DOLE and BTr/SEC as the implementing agencies. The projects to be financed
from the new loans for implementation by 11 NGAs and LBP are tabulated in Table VI.
Table VI - List of New ODA Loans (in billion)

Loan Account Cre- Com m itm ents % to Availm ents % to Undraw n Balance % to
Nam e of Project IA
No. ditor US$ PHP Total US$ PHP Total US$ PHP Total
TOTAL 1.50 74.85 100.00 0.01 0.30 100.00 1.49 74.55 100.00
Agriculture, Natural Resources & Agrarian Reform 0.12 6.02 8.05 0.01 0.30 100.00 0.11 5.72 7.68
1 PH-P264 Harnessing Agribusiness
Opportunities through Robust LBP JICA 0.04 2.19 36.42 - - - 0.04 2.19 38.32
and Vibrant Entrepreneurship
2 8762-PH Inclusive Partnerships for
Agricultural Competitiveness DAR IBRD 0.07 3.31 55.01 - - - 0.07 3.31 57.89
Project
3 200000177 Scaling-Up the Second
3-PH Cordillera Highland DA IFAD 0.01 0.52 8.57 0.01 0.30 100.00 0.00 0.22 3.78
Agricultural Resource
Infrastructure 0.66 32.83 43.86 - - 0.00 0.66 32.83 44.03
Infrastructure Preparation DOTr/
4 3589-PHI ADB 0.10 5.00 15.22 - - - 0.10 5.00 15.22
and Innovation Facility DPWH
Cavite Industrial Area Flood
5 PH-P265 DPWH JICA 0.14 7.09 21.59 - - - 0.14 7.09 21.59
Risk Management Project
Metro Manila Flood
Management Project (MMFMP - DPWH/
6 8784-PH IBRD 0.21 10.37 31.59 - - - 0.21 10.37 31.59
Phase 1) (cofinanced w ith MMDA
AIIB)
Metro Manila Flood
000023-1- Management Project (MMFMP - DPWH/
7 AIIB 0.21 10.37 31.59 - - - 0.21 10.37 31.59
PHL Phase 1) (cofinanced w ith MMDA
IRBD)
Social Reform & Com m unity Developm ent 0.72 36.00 48.10 - - 0.00 0.72 36.00 48.29
8 CPH 1026 Local Governance Finance
01 R and Fiscal Decentralization
DILG AFD 0.12 6.03 16.74 - - - 0.12 6.03 16.74
Reform Program, Subprogram
2
9 3530-PHI Facilitating Youth-School-to-
TESDA/
Work Transition Program - ADB 0.30 14.99 41.63 - - - 0.30 14.99 41.63
DTI/DOLE
Subprogram 1
10 3595-PHI Encouraging Investment
through Capital Market
BTr/SEC ADB 0.30 14.99 41.63 - - - 0.30 14.99 41.63
Reforms Program -
Subprogram 2
During the year, commitments amounting to P19.91 billion (US$398.53 million)

covering eight loan accounts were cancelled, as presented in Table VII.
Table VII - Cancelled Commitments for 2017 (in million)

Am ount
Loan Account No. Nam e of Project IA Creditor
USD PHP
Total 398.53 19,909.81
AGRICULTURE, AGRARIAN REFORM AND NATURAL RESOURCES 1.65 82.60
1 PH-P242 Agrarian Reform Infrastructure Support Project, DAR JBIC 1.15 57.67
Phase III
10
(Table VII, continued)
Am ount
Loan Account No. Nam e of Project IA Creditor
USD PHP
2 2311 PHI Integrated Coastal Resources Management Project DENR ADB 0.50 24.94
INFRASTRUCTURE 396.66 19,816.39
3 PH-P243 Environmental Development Project DBP JBIC 0.28 14.10
4 2964-PHI Market Transformation through Introduction of DOE ADB 268.06 13,391.76
Energy Efficient Electric Vehicles Project
5 8261-PHI Market Transformation Thru Introduction of Energy DOE ADB 91.70 4,581.06
Efficient Electric Vehicles Project
6 BAC (213.469) Improvement of Nat'l Secondary Road System DPWH BAC 0.07 3.46
7 PH-P244 Agricultural Credit Support Project LBP JBIC 36.55 1,826.00
SOCIAL REFORM AND COMMUNITY DEVELOPMENT 0.22 10.81
8 KFW Health Sector Reform Project DOH KFW 0.22 10.81
No.7113011
Difference b etween the totals and the sum of the components is due to rounding off.
3.1.1 By Creditor
The CNLC, considering cancellations as of December 31, 2017, is presented by

creditor in Table VIII.
Table VIII- Schedule of Cumulative Net Loan Commitments by Creditor

(in million)
CGLC CLC CNLC % to
No. of
Creditor Total
Loans USD PHP USD PHP USD PHP
CNLC
Total
459 42,929.69 2,144,681.28 4,290.98 214,368.60 38,638.71 1,930,312.67 100.00
Com m itm ents
Bilateral 222 20,053.80 1,001,847.64 2,040.45 101,936.99 18,013.34 899,910.66 46.62
1 JICA 125 15,475.74 773,136.94 1,622.98 81,080.61 13,852.76 692,056.33 35.85
2 ECGD 5 771.36 38,535.54 - - 771.36 38,535.54 2.00
3 BNP PARIBAS 4 1,065.45 53,227.53 344.56 17,213.55 720.89 36,013.99 1.87
4 KEXIM 15 629.10 31,428.80 14.71 735.12 614.39 30,693.68 1.59
5 AFD 5 556.26 27,789.42 - - 556.26 27,789.42 1.44
6 KFW 21 344.90 17,230.55 35.00 1,748.70 309.90 15,481.85 0.80
7 USPL 10 235.00 11,740.13 0.87 43.59 234.13 11,696.54 0.61
8 AIIB 1 207.60 10,371.44 - - 207.60 10,371.44 0.54
9 IBRD 1 207.60 10,371.44 - - 207.60 10,371.44 0.54
10 ICO 9 117.36 5,863.17 0.02 1.00 117.34 5,862.16 0.30
11 ANZ/EFIC 1 97.68 4,879.77 2.32 115.69 95.36 4,764.08 0.25
12 EFIC 3 89.48 4,470.48 0.22 10.86 89.27 4,459.62 0.23
13 FP 9 46.56 2,326.20 2.45 122.42 44.11 2,203.78 0.11
14 EIB 1 36.68 1,832.28 - - 36.68 1,832.28 0.09
Natixis
15 1 34.40 1,718.60 - - 34.40 1,718.60 0.09
(French Gov't)
16 Artigiancassa 1 31.59 1,578.19 - - 31.59 1,578.19 0.08
17 KFAED 1 21.29 1,063.82 1.54 76.80 19.76 987.02 0.05
18 SOCIETE GEN 1 15.09 753.96 - - 15.09 753.96 0.04
19 KBC 1 13.69 684.03 0.00 0.00 13.69 684.03 0.04
20 Fortis Bank 1 10.23 511.09 - - 10.23 511.09 0.03
21 ITALY II 1 9.79 489.02 0.04 2.17 9.75 486.85 0.03
22 Belgian 1 7.62 380.43 0.06 2.88 7.56 377.55 0.02
23 JFA 1 4.86 242.72 0.04 1.80 4.82 240.92 0.01
24 SFD 1 20.00 999.16 15.64 781.20 4.36 217.97 0.01
11
(Table VIII, continued)
CGLC CLC CNLC % to
No. of
Creditor Total
Loans USD PHP USD PHP USD PHP
CNLC
25 SIDA 1 2.24 112.02 0.01 0.59 2.23 111.43 0.01
26 LEONIA BANK 1 2.22 110.91 0.00 0.00 2.22 110.91 0.01
Multilateral 178 20,978.62 1,048,049.84 1,956.94 97,764.59 19,021.68 950,285.26 49.23
1 ADB 86 11,535.35 576,282.95 1,187.59 59,329.82 10,347.75 516,953.13 26.78

2 IBRD 72 9,103.56 454,795.75 742.56 37,096.64 8,361.01 417,699.11 21.64
3 IFAD 11 201.21 10,052.20 8.76 437.71 192.45 9,614.49 0.50
4 OPEC 6 97.00 4,845.93 16.37 817.56 80.63 4,028.36 0.21
5 EIB 1 26.50 1,323.89 - - 26.50 1,323.89 0.07
6 NDF 2 15.00 749.13 1.66 82.85 13.34 666.28 0.03
Com m ercial 59 1,897.27 94,783.79 293.59 14,667.03 1,603.68 80,116.76 4.15
1 CEXIM 6 790.52 39,492.61 220.60 11,020.64 569.92 28,471.97 1.47

2 BAC 6 236.14 11,797.00 0.07 3.46 236.07 11,793.54 0.61
3 ECGD 5 142.97 7,142.68 - - 142.97 7,142.68 0.37
4 EDC 2 124.44 6,216.77 2.26 112.96 122.18 6,103.82 0.32
BNP
5 5 147.21 7,354.24 38.22 1,909.29 108.99 5,444.95 0.28
PARIBAS
6 CAMC 2 59.97 2,995.76 4.07 203.23 55.90 2,792.54 0.14
7 BBV 5 52.15 2,605.36 0.02 1.00 52.13 2,604.36 0.13
8 RZOA 2 47.10 2,353.09 - - 47.10 2,353.09 0.12
9 FP 10 40.09 2,002.93 2.19 109.19 37.91 1,893.74 0.10
10 CCDF 2 45.54 2,274.89 14.58 728.56 30.95 1,546.34 0.08
Banco
11 1 25.75 1,286.61 - - 25.75 1,286.61 0.07
Santander
12 ANZ/EFIC 1 23.44 1,171.14 0.59 29.42 22.85 1,141.72 0.06
13 BA 1 22.50 1,124.05 0.02 1.13 22.48 1,122.92 0.06
14 ERSTE 1 21.91 1,094.80 0.00 0.00 21.91 1,094.80 0.06
15 NIB 1 21.38 1,068.06 - - 21.38 1,068.06 0.06
16 ICO 1 18.95 946.57 - - 18.95 946.57 0.05
17 ING Bank 1 17.61 879.72 - - 17.61 879.72 0.05
18 EFIC 1 14.80 739.38 0.72 36.08 14.08 703.30 0.04
19 SOCIETE GEN 1 12.65 632.00 0.12 5.77 12.54 626.23 0.03
20 Fortis Bank 1 7.99 399.38 - - 7.99 399.38 0.02

21 Bancaja 1 7.01 350.42 - - 7.01 350.42 0.02
22 SIDA 1 10.00 499.58 3.81 190.15 6.19 309.43 0.02
23 NDF 1 7.14 356.73 6.33 316.15 0.81 40.58 0.00

0.00 - less than five thousand.
Inclusive of the CNLC are current year’s commitments on new loans amounting to
P74.85 billion (US$1.50 billion) as presented in Table VI.
3.1.2 By Project Sector
Of the CNLC, 46.09 percent was intended for the implementation of projects
categorized under the infrastructure sector account, as presented in Table IX.
12
Table IX - Schedule of Cumulative Net Loan Commitments by Sector (in billion)
CGLC Cumulative Cancellation CNLC
Project
Sector % to % to % to
USD PHP USD PHP USD PHP
Total Total Total
Infra. 20.44 1,021.36 47.62 2.63 131.64 61.41 17.81 889.72 46.09
SRCD 10.88 543.38 25.34 0.16 7.78 3.63 10.72 535.59 27.75
GID 4.94 246.75 11.51 0.53 26.26 12.25 4.41 220.50 11.42
AARNR 5.10 254.56 11.87 0.83 41.28 19.26 4.27 213.27 11.05
ITT 1.57 78.64 3.67 0.15 7.41 3.46 1.43 71.23 3.69
Total 42.93 2,144.68 100.00 4.29 214.37 100.00 38.64 1,930.31 100.00
% to CGLC 100.00 10.00 90.00
3.1.3 By Implementing Agency
Around 80.36 percent of the CNLC represents loans by the NGAs of which 26.51 and
15.87 percent were availed by the DOF and DPWH, respectively. The implementing
agencies (IAs) of the loans secured are presented in Table X.
Table X - Schedule of Cumulative Net Loan Commitments by Implementing Agency

(in million)
% to
No. of CGLC Cum ulative Cancellation CNLC
IA Total
Loans
USD PHP USD PHP USD PHP CNLC
Total 459 42,929.69 2,144,681.28 4,290.98 214,368.60 38,638.71 1,930,312.67 100.00
NGAs 323 33,665.72 1,681,872.28 2,616.47 130,713.83 31,049.25 1,551,158.45 80.36
1 DOF 41 10,802.65 539,678.86 561.39 28,046.07 10,241.26 511,632.79 26.51
2 DPWH 87 6,475.35 323,495.35 344.42 17,206.49 6,130.93 306,288.86 15.87
3 DOTr 42 5,116.51 255,610.64 389.59 19,462.94 4,726.92 236,147.71 12.23
4 DSWD 9 2,765.23 138,145.26 4.41 220.10 2,760.82 137,925.16 7.15
5 DepEd 13 1,622.43 81,053.14 76.97 3,845.04 1,545.46 77,208.10 4.00
6 DAR 25 1,327.97 66,342.53 105.41 5,266.15 1,222.55 61,076.38 3.16
7 DA 23 1,229.53 61,425.09 204.92 10,237.41 1,024.61 51,187.68 2.65
8 DILG 11 755.34 37,735.27 43.76 2,186.39 711.58 35,548.88 1.84
9 DENR 13 803.54 40,143.04 408.09 20,387.18 395.45 19,755.86 1.02
10 DOE 4 778.51 38,892.90 403.73 20,169.61 374.78 18,723.29 0.97
11 TESDA 6 370.72 18,520.40 7.30 364.65 363.42 18,155.75 0.94
12 SC 2 321.90 16,081.48 1.29 64.44 320.61 16,017.04 0.83
13 DOH 19 339.90 16,980.95 27.49 1,373.23 312.42 15,607.72 0.81
14 BTr/SEC 1 300.00 14,987.40 - - 300.00 14,987.40 0.78
15 BOC 2 184.76 9,230.26 0.12 6.05 184.64 9,224.21 0.48
16 BFAR 9 178.50 8,917.71 20.36 1,017.23 158.14 7,900.49 0.41
17 PRRC 2 88.69 4,430.88 12.00 599.51 76.69 3,831.37 0.20
18 OCD 1 60.31 3,012.97 - - 60.31 3,012.97 0.16
19 BFP 2 49.44 2,469.88 - - 49.44 2,469.88 0.13
20 NAMRIA 1 25.75 1,286.61 - - 25.75 1,286.61 0.07
21 DOT 1 18.12 905.18 0.70 34.87 17.42 870.31 0.05
22 PMMA 2 16.03 801.06 0.10 4.82 15.94 796.24 0.04
23 UP 2 13.56 677.35 - - 13.56 677.35 0.04
24 OP 4 9.98 498.54 0.14 7.00 9.84 491.54 0.03
25 BIR 1 11.00 549.54 4.30 214.65 6.70 334.88 0.02
GOCCs 129 9,033.42 451,291.40 1,656.82 82,771.28 7,376.60 368,520.12 19.09
1 DBP 24 1,706.88 85,272.13 296.90 14,832.56 1,409.98 70,439.57 3.65
13
(Tab le X, continued)
% to
No. of CGLC Cum ulative Cancellation CNLC
IA Total
Loans
USD PHP USD PHP USD PHP CNLC
2 LBP 23 1,371.69 68,526.72 170.56 8,521.06 1,201.12 60,005.66 3.11
3 PSALM 18 1,459.70 72,923.87 297.96 14,885.68 1,161.74 58,038.19 3.01
4 NIA 13 842.67 42,098.09 53.83 2,689.29 788.84 39,408.80 2.04
5 LRTA 7 885.78 44,251.91 145.04 7,246.16 740.74 37,005.76 1.92
6 BCDA 1 525.90 26,272.99 8.00 399.86 517.90 25,873.13 1.34
7 MWSS 6 394.46 19,706.53 29.83 1,490.42 364.63 18,216.11 0.94
8 PPA 4 258.58 12,918.11 8.50 424.64 250.08 12,493.47 0.65
9 LWUA 7 273.84 13,680.29 90.23 4,507.57 183.61 9,172.73 0.48
10 NLRC 2 400.00 19,983.20 219.21 10,951.05 180.79 9,032.15 0.47
11 SBMA 5 246.58 12,318.41 73.06 3,650.07 173.51 8,668.34 0.45
12 PNOC 2 180.98 9,041.59 87.36 4,364.12 93.63 4,677.47 0.24
13 P HIVIDEC 1 73.63 3,678.58 0.01 0.45 73.62 3,678.13 0.19
14 NPC 3 213.48 10,664.88 148.10 7,399.02 65.37 3,265.86 0.17
15 SBGFC 3 56.22 2,808.48 0.26 12.97 55.96 2,795.51 0.14
16 PNR 2 46.68 2,332.24 0.01 0.28 46.68 2,331.96 0.12
17 PFDA 1 24.99 1,248.20 - - 24.99 1,248.20 0.06
18 NFA 3 19.86 992.09 0.04 1.89 19.82 990.20 0.05
PTA
19 1 12.04 601.67 0.01 0.67 12.03 601.01
(TIEZA) 0.03
20 LLDA 2 15.00 749.37 8.20 409.49 6.80 339.88 0.02
21 PEZA 1 24.46 1,222.04 19.70 984.06 4.76 237.99 0.01
LGUs 7 230.55 11,517.59 17.68 883.49 212.86 10,634.10 0.55
1 ARMM 6 191.99 9,591.52 6.46 322.89 185.53 9,268.63 0.48
2 PG-LDN 1 38.55 1,926.07 11.22 560.61 27.33 1,365.47 0.07
3.2 Availments – P1.48 trillion (US$29.65 billion)
As of December 31, 2017, cumulative availments reached P1.48 trillion (US$29.65

billion), equivalent to 76.75 percent of the CNLC, as presented in Chart II. Of the total
availments, P70.21 billion (US$1.41 million) or 4.74 percent were availed during the year.
3.2.1 By Creditor
The cumulative and current year availments from different creditors are presented in
Table XI with cumulative availments from multilateral and bilateral creditors at 80.63
percent and 17.97 percent, respectively. Only around 1.41 percent was availed for
commercial loans.
Table XI- Cumulative and Current Year Availments by Creditor (in million )
No. of Cumulative Availments % to CY Availments % to
Creditor
Loans USD PHP Total USD PHP Total
Total Availm ents 459 29,654.25 1,481,466.99 100.00 1,405.30 70,205.95 100.00
Bilateral 222 12,350.44 617,003.36 41.65 252.50 12,614.17 17.97
1 JICA 125 9,776.84 488,431.19 32.97 237.02 11,841.19 16.87
2 ECGD 5 544.95 27,224.73 1.84 - - -
3 BNP PARIBAS 4 378.80 18,924.04 1.28 - - -
4 AFD 5 377.87 18,877.43 1.27 - - -
5 KEXIM 15 284.83 14,229.55 0.96 15.47 772.98 1.10
6 KFW 21 279.69 13,972.82 0.94 - - -
14
(Tab le XI, continued)
Creditor
7 USPL 10 234.13 11,696.54 0.79 - - 0.00
8 ICO 9 117.34 5,862.15 0.40 - - -
9 ANZ/EFIC 1 95.36 4,764.08 0.32 - - -
10 EFIC 3 89.27 4,459.62 0.30 - - -
11 FP 9 44.11 2,203.74 0.15 - - -
12 EIB 1 30.09 1,503.28 0.10 - - -
13 KFAED 1 19.76 987.02 0.07 - - -
14 SOCIETE GEN 1 14.59 729.12 0.05 - - -
15 KBC 1 13.69 684.03 0.05 - - -
16 Fortis Bank 1 10.23 511.09 0.03 - - -
17 ITALY II 1 9.75 486.85 0.03 - - -
18 Artigiancassa 1 7.95 397.34 0.03 - - -
19 Belgian 1 7.56 377.55 0.03 - - -
20 JFA 1 4.82 240.92 0.02 - - -
21 SFD 1 4.36 217.97 0.01 - - -
22 SIDA 1 2.23 111.43 0.01 - - -
23 LEONIA BANK 1 2.22 110.91 0.01 - - -
Multilateral 178 15,701.68 784,424.74 52.95 1,133.03 56,603.83 80.63
1 ADB 86 8,822.32 440,745.60 29.75 472.89 23,624.57 33.65

2 IBRD 72 6,666.57 333,048.28 22.48 646.62 32,304.05 46.01
3 IFAD 11 117.91 5,890.36 0.40 7.23 361.02 0.51
4 OPEC 6 58.36 2,915.72 0.20 6.29 314.18 0.45
5 EIB 1 23.19 1,158.50 0.08 - - -
6 NDF 2 13.34 666.28 0.04 - - -
Com m ercial 59 1,602.12 80,038.89 5.40 19.78 987.95 1.41
1 CEXIM 6 569.61 28,456.44 1.92 - - -

2 BAC 6 234.82 11,731.24 0.79 19.78 987.95 1.41
3 ECGD 5 142.97 7,142.68 0.48 - - -
4 EDC 2 122.18 6,103.82 0.41 - - -
5 BNP PARIBAS 5 108.99 5,444.95 0.37 - - -
6 CAMC 2 55.90 2,792.54 0.19 - - -
7 BBV 5 52.13 2,604.36 0.18 - - -
8 RZOA 2 47.10 2,353.09 0.16 - - -
9 FP 10 37.91 1,893.71 0.13 - - -
Credit Com'l de
10 2 30.95 1,546.34 0.10 - - -
France
11 Banco Santander 1 25.75 1,286.61 0.09 - - -
12 ANZ/EFIC 1 22.85 1,141.72 0.08 - - -
13 Bank of America 1 22.48 1,122.92 0.08 - - -
14 ERSTE 1 21.91 1,094.80 0.07 - - -
15 NIB 1 21.38 1,068.06 0.07 - - -
16 ICO 1 18.95 946.55 0.06 - - -
17 ING Bank 1 17.61 879.72 0.06 - - -
18 EFIC 1 14.08 703.30 0.05 - - -
19 SOCIETE GEN 1 12.54 626.23 0.04 - - -
20 Fortis Bank 1 7.99 399.38 0.03 - - -
21 Bancaja 1 7.01 350.42 0.02 - - -
22 SIDA 1 6.19 309.43 0.02 - - -
23 NDF 1 0.81 40.58 0.00 - - -
15
Cumulatively, the infrastructure sector is the greatest beneficiary of ODA loans at

39.99 percent. However, for current year, the SRCD sector availed significant
percentage of the loan at 66.85 percent.
Table XII - Cumulative and Current Year Availments by Project Sector (in billion)
Cumulative Availments % to CY Availments % to
Creditor
USD PHP Total USD PHP Total
Total Availments 29.65 1,481.47 100.00 1.41 70.21 100.00

1 Infra. 11.86 592.49 39.99 0.31 15.27 21.75
2 SRCD 9.03 451.33 30.46 0.94 46.93 66.85
3 GID 3.91 195.58 13.20 0.02 0.99 1.41
4 AARNR 3.42 170.86 11.53 0.14 7.02 9.99
5 ITT 1.43 71.22 4.81 - - 0.00
The NGAs’ availments reached P1.13 trillion (US$22.70 billion) or 76.55 percent of
the total cumulative availments. The GOCCs availed P336.73 billion (US$6.74 billion)
or 22.73 percent while LGUs availed P10.63 billion (US$0.21 billion) or 0.72 percent.
The cumulative and current year availments by IAs, grouped by government sector,
is presented in Table XIII.
Table XIII - Cumulative and Current Year Availments by IA (in billion)

IA
Total Availments 458 29.65 1,481.47 100.00 1.41 70.21 100.00

NGAs 322 22.70 1,134.10 76.55 1.34 67.16 95.66
1 DOF 41 9.74 486.78 32.86 - - -
2 DPWH 87 4.23 211.12 14.25 0.18 9.06 12.90
3 DSWD 9 2.07 103.35 6.98 0.56 27.98 39.85
4 DOTr 42 1.35 67.58 4.56 0.08 3.81 5.43
5 DepEd 13 1.28 63.91 4.31 0.13 6.46 9.21
6 DAR 25 0.95 47.26 3.19 0.02 1.15 1.64
7 DA 23 0.69 34.38 2.32 0.10 4.81 6.85
8 DILG 11 0.59 29.52 1.99 0.25 12.49 17.79
9 DOE 4 0.34 16.79 1.13 - - -
10 SC 2 0.32 16.02 1.08 - - -
11 DOH 19 0.31 15.59 1.05 - - -
12 DENR 13 0.22 10.97 0.74 0.01 0.40 0.57
13 BOC 2 0.18 9.22 0.62 - - -
14 BFAR 9 0.10 4.78 0.32 0.00 0.01 0.01
15 PRRC 2 0.08 3.83 0.26 - - -
16 TESDA 6 0.06 3.13 0.21 - - -
17 OCD 1 0.06 3.01 0.20 - - -
18 BFP 2 0.05 2.41 0.16 0.02 0.99 1.41
19 NAMRIA 1 0.03 1.29 0.09 - - -
20 DOT 1 0.02 0.87 0.06 - - -
21 PMMA 2 0.02 0.80 0.05 - - -
22 UP 2 0.01 0.68 0.05 - - -
23 OP 4 0.01 0.49 0.03 - - -
16
(Tab le XIII continued)
IA
24 BIR 1 0.01 0.33 0.03 - - -
GOCCs 129 6.74 336.73 22.73 0.06 3.05 4.34
1 DBP 24 1.40 70.10 4.73 - - -
2 PSALM 18 1.16 58.04 3.92 - - -
3 LBP 23 1.01 50.55 3.41 0.05 2.34 3.33
4 LRTA 7 0.74 37.01 2.50 - - -
5 NIA 13 0.53 26.30 1.78 0.01 0.65 0.92
6 BCDA 1 0.52 25.87 1.75 - - -
7 MWSS 6 0.25 12.62 0.85 0.00 0.06 0.08
8 PPA 4 0.25 12.49 0.84 - - -
9 NLRC 2 0.18 9.03 0.61 - - -
10 SBMA 5 0.17 8.67 0.59 - - -
11 LWUA 7 0.12 5.88 0.40 0.00 0.01 0.01
12 PNOC 2 0.09 4.68 0.32 - - -
13 PHIVIDEC 1 0.07 3.68 0.25 - - -
14 NPC 3 0.07 3.27 0.22 - - -
15 SBGFC 3 0.06 2.80 0.19 - - -
16 PNR 2 0.05 2.33 0.16 - - -
17 PFDA 1 0.02 1.25 0.08 - - -
18 NFA 3 0.02 0.99 0.07 - - -
19 PTA (TIEZA) 1 0.01 0.60 0.04 - - -
20 LLDA 2 0.01 0.34 0.02 - -
21 PEZA 1 0.00 0.24 0.02 - - -
LGUs 7 0.21 10.63 0.72 - - -
1 ARMM 6 0.19 9.27 0.63 - - -
2 PG-LDN 1 0.03 1.37 0.09 - - -
0.00 - less than five million
DOF and DPWH availed most of the loan with percentage share of 32.86 and 14.25,
respectively, of the total cumulative availments of P1.48 trillion (US$29.65 billion).
During the year, DSWD had the highest at 39.85 percent of the total current year
availments. The programs and projects for which loans were availed in CY 2017,
implemented by various agencies are presented in Table XIV.
Table XIV - Programs and Projects for Implemention by Various IAs out of CY 2017 Availments
(in million)
CY Availments
IA/ Loan Account No./Project Name Creditor % to Total
USD PHP
Total 1,405.30 70,205.95 100.00
NGAs 1,344.28 67,157.77 95.66
DSWD 560.04 27,978.51 39.85
1 3369-PHI Social Protection Support Project 100.00 4,995.80
2 ADB2662 1.03 51.39
ADB
PHI
3 3100-PHI KALAHI-CIDSS National Community- 100.40 5,015.71
4 8335-PH Driven Development Project 138.61 6,924.84
5 8584-PH Social Welfare Development and Reform IBRD 220.00 10,990.76
Project 2
17
(Tab le XIV, continued)
CY Availments
USD PHP
DILG 250.00 12,489.50 17.79
1 3505-PHI Local Government Finance and Fiscal ADB 250.00 12,489.50
Decentralization Reform Program -
Subprogram 2
DPWH 181.33 9,058.71 12.90
Davao City Bypass Construction Project
1 PH-P261 0.63 31.37
(South and Center Sections)
JBIC PH- Flood Risk Management Project for
2 17.52 875.30
P253 Cagayan River, Tagoloan River, and Imus
River Risk Management Project for CDO
Flood JICA
3 PH-P259 1.47 73.63
River
Metro Manila Interchange Construction
4 PH-P258 0.40 19.75
Phase VI
Metro Manila Priority Bridges Seismic
5 PH-P260 0.61 30.42
Improvement Project
IBRD 7552 National Roads Improvement and
6 Management Project 2 IBRD 15.75 786.75
PH
Integrated Disaster Risk Reduction and
7 PHL-17 0.32 16.11
Climate Change Adaptation Measures in KEXIM
8 PHL-18 the Low Bay
Panguil Lying AreasProject
Bridge of Pampanga Bay 0.63 31.43
OPEC Road Improvement and Institutional
9 OPEC 4.85 242.31
1446P Development Project
JBIC PH- Arterial Road Bypass Project, Phase II
10 9.20 459.56
P250
JBIC PH- Central luzon Link Expressway Project
11 35.39 1,767.81
P249 JICA
JBIC PH- Pasig-Marikina River Channel 24.87 1,242.29
12
P252 Improvement Project, Phase III
13 PH-P247 Road Upgrading and Preservation 60.95 3,045.11
ADB2836- Road Improvement and Institutional
14 ADB 8.74 436.86
PHI Development
DepEd 129.40 6,464.57 9.21
1 8344-PH Learning, Equity and Accountability IBRD 129.40 6,464.57
Program Support Project
DA 96.26 4,808.92 6.85
1 IBRD 8421- Phillippine Rural Development Project IBRD 89.86 4,489.37
PH
2 200000177 Scaling-Up the Second Cordillera 6.00 299.75
3-PH Highland Agricultural Resource
4 IFAD 749- Second Cordillera Highland Agricultural 1.60 79.91
IFAD
PH Resource Mgnt. Project (CHARM2)
5 IFAD 767- Rapid Food Production Enhancement (1.20) (60.11)
PH Programme
DOTr 76.27 3,810.47 5.43
1 JBIC PH- New Communications, Navigations 11.85 592.00
P228 Surveillance/Air Traffic Mgmt. (CNS/ATM) JICA
System Development Project
2 PH-P255 Capacity Enhancement of Mass Transit 1.83 91.47
Systems in Metro Manila Project
3 PH-P256 New Bohol Airport Construction and 13.16 657.23
JICA
Sustainable Environmet Protection Project
4 PH-P257 Maritime Safety Capability Improvement 34.92 1,744.33
Project for the Philippine Coast Guard
5 PHL-11- Puerto Princesa Airport Development KEXIM 14.52 725.44
EDCF Project
DAR 23.10 1,154.06 1.64
1 ADB2465 Agrarian Reform Communities Project II ADB 7.80 389.62
PHI
18
(Tab le XIV, continued)
CY Availments
USD PHP
2 JBIC PH- Mindanao Sustainable Agrarian and JICA 13.86 692.57
P251 Agriculture Development Project
3 OPEC Agrarian Reform Communities and OPEC 1.44 71.87
1225-P Projects II
BFP 19.78 987.95 1.41
1 AG. No. Capability Building Program, Phase II BAC 19.78 987.95
234.967
DENR 7.96 397.79 0.57
JBIC PH- Forestland Management Project 3.58 178.63
1 JICA
P248
ADB2311 Integrated Coastal Resources (0.02) (1.11)
2
PHI Management Project ADB
3 2957-PHI Integrated Natural Resources and 3.72 186.09
Environmental Management Project
5 I-890-PH IFAD 0.68 34.17
BFAR 0.15 7.30 0.01
Fisheries, Coastal Resources and
1 PH-1258 IFAD 0.15 7.30
Livelihood Project
GOCCs 61.01 3,048.18 4.34
LBP 46.81 2,338.75 3.33
1 8162-PH Metro Manila Waste Water Management IBRD 46.30 2,312.89
Project
2 JBIC PH-
Agricultural Credit Support Project JICA 0.52 25.86
P244
NIA 12.99 648.73 0.92
IBRD 7709 Participatory Irrigation Development IBRD 6.70 334.87
1
PH Project
JBIC PH- National Irrigation Sector Rehabilitation JICA 6.28 313.86
2
P254 and Improvement Project
MWSS 1.11 55.46 0.08
1 3377-PHI Angat Water Transmission Improvement ADB 1.11 55.46
Project
LWUA 0.10 5.23 0.01
1 3389-PHI Water District Development Sector Project ADB 0.10 5.23
3.3 Undrawn Commitments – P448.85 billion (US$8.98 billion)
Of the 459 ODA loans from 43 creditors, commitments for 96 loans from 19 creditors
were not fully drawn with undrawn balances of P448.85 billion (US$8.98 billion) as of
December 31, 2017.
3.3.1 By Creditor
The loans with biggest undrawn balances or unavailed commitments are loans from
JICA under bilateral creditors which represent 45.37 percent of the total undrawn
balances. The loans with undrawn balances are presented in Table XV.
Table XV - Schedule of Loans with Undrawn Balances by Creditor (in million)

Cum ulative Availm ents Undraw n Balances
Creditor No. of % to
USD PHP USD PHP
Loans Total
Total 1,153.78 57,640.31 90 8,984.46 448,845.69 100.00
Bilateral 251.98 12,588.31 48 5,662.90 282,907.30 63.03
1 JICA 236.51 11,815.34 21 4,075.93 203,625.14 45.37
19
(Tab le XV, continued)
Cum ulative Availm ents Undraw n Balances
Creditor No. of % to
USD PHP USD PHP
Loans Total
2 BNP PARIBAS - - 3 342.09 17,089.94 3.81
3 KEXIM 15.47 772.98 8 329.56 16,464.14 3.67
4 ECGD - - 3 226.41 11,310.81 2.52
5 AIIB - - 1 207.60 10,371.44 2.31
6 IBRD - - 1 207.60 10,371.44 2.31
7 AFD - - 2 178.39 8,911.99 1.99
8 Natixis (French Gov't) - - 1 34.40 1,718.60 0.38
9 KFW - - 3 30.21 1,509.03 0.34
10 Artigiancassa - - 1 23.64 1,180.85 0.26
11 EIB - - 1 6.59 329.00 0.07
12 SOCIETE GEN - - 1 0.50 24.85 0.01
13 FP - - 1 0.00 0.04 0.00
14 ICO - - 1 0.00 0.02 0.00
Multilateral 882.02 44,064.04 37 3,320.00 165,860.52 36.95
1 IBRD 646.62 32,304.05 12 1,694.44 84,650.83 18.86
2 ADB 221.88 11,084.78 15 1,525.43 76,207.53 16.98
3 IFAD 7.23 361.02 6 74.55 3,724.13 0.83
4 OPEC 6.29 314.18 3 22.27 1,112.64 0.25
5 EIB - - 1 3.31 165.39 0.04
Com m ercial 19.78 987.95 5 1.56 77.87 0.02
1 BAC 19.78 987.95 2 1.25 62.30 0.01
2 CEXIM - - 1 0.31 15.52 0.00
3 FP - - 1 0.00 0.03 0.00
4 ICO - - 1 0.00 0.02 0.00
Loans fully availed are not included in the list.
The infrastructure sector with the highest cumulative net commitments has also the
biggest undrawn balances of P297.23 billion (US$5.95 billion) representing 66.22
percent of the total undrawn balances of P448.85 billion (US$8.98 billion), as
presented in Table XVI.
Table XVI - Schedule of Undrawn Balances by Project Sector (in million)
CNLC Cum ulative Availm ents Undraw n Balances

% to
Creditor
No. of Total
Loans
1 Infra. 17,809.37 889,720.43 11,859.68 592,485.76 55 5,949.69 297,234.66 66.22
2 SRCD 10,720.87 535,593.36 9,034.13 451,327.06 14 1,686.74 84,266.31 18.77
3 ARRNR 4,269.05 213,273.34 3,419.98 170,855.46 22 849.07 42,417.88 9.45
20
(Tab le XVI, continued)
% to
Creditor
No. of Total
Loans
4 GID 4,413.68 220,498.70 3,914.95 195,582.84 2 498.74 24,915.85 5.55
5 ITT 1,425.73 71,226.84 1,425.51 71,215.86 3 0.22 10.98 0.00
Total 38,638.71 1,930,312.67 29,654.25 1,481,466.99 96 8,984.46 448,845.69 100.00
% to CNLC 100.00 76.75 23.25
DOTr has the highest undrawn balance which represent 37.56 percent of the total
undrawn amount and 89.46 percent of the CNLC. There were no availments from
loans intended for the construction/implementation of North-South Commuter Railway
Project, Cebu Bus Rapid Transit Project and Maritime Safety Capability Improvement
Project II with total CNLC of P116.26 billion (US$2.33 billion). This amount alone
already represents 25.90 percent of the total undrawn amount. Along with DOTr are
13 other agencies with unavailed commitments ranging from 53.84 percent to 100.00
percent as of December 31, 2017, as shown in Table XVII.
Table XVII - Schedule of IAs with Undrawn Balances (in million)

% to % to
Sector/ IA No. of C N LC
USD PHP USD PHP USD PHP Total
Loans
Total 13,130.22 655,959.37 4,145.76 207,113.68 91 8,984.46 448,845.69 100.00 68.43
NGAs 12,077.41 603,363.02 3,729.20 186,303.34 76 8,348.21 417,059.68 92.92 69.12
1 DOTr 3,771.70 188,426.46 397.45 19,855.75 14 3,374.25 168,570.71 37.56 89.46
2 DPWH 3,084.74 154,107.30 1,179.72 58,936.67 27 1,905.01 95,170.63 21.20 61.76
3 DSWD 1,701.10 84,983.75 1,008.98 50,406.67 4 692.12 34,577.08 7.70 40.69
4 DOF 500.00 24,979.00 2.50 124.90 1 497.50 24,854.11 5.54 99.50
5 DA 549.91 27,472.23 213.54 10,667.88 4 336.37 16,804.36 3.74 61.17
6 TESDA 307.00 15,337.11 6.24 311.60 2 300.76 15,025.50 3.35 97.97
7 BTr/SEC 300.00 14,987.40 - - 1 300.00 14,987.40 3.34 100.00
8 DAR 683.39 34,140.88 406.85 20,325.44 9 276.54 13,815.44 3.08 40.47
9 Deped 600.00 29,974.80 333.75 16,673.48 2 266.25 13,301.32 2.96 44.38
10 DENR 201.27 10,054.95 25.33 1,265.40 3 175.94 8,789.56 1.96 87.42
11 DILG 208.28 10,405.15 87.65 4,378.66 2 120.63 6,026.49 1.34 57.92
12 BFAR 67.34 3,364.28 4.82 240.74 2 62.52 3,123.54 0.70 92.84
13 DOE 40.24 2,010.37 1.57 78.64 2 38.67 1,931.73 0.43 96.09
14 BFP 49.44 2,469.88 48.20 2,408.13 2 1.24 61.75 0.01 2.50
15 DOH 13.00 649.45 12.60 629.38 1 0.40 20.07 0.00 3.09
GOCCs 1,052.81 52,596.35 416.56 20,810.34 15 636.25 31,786.01 7.08 60.43
1 NIA 429.35 21,449.32 166.97 8,341.59 4 262.37 13,107.73 2.92 61.11
2 LBP 351.47 17,558.54 162.25 8,105.76 4 189.21 9,452.78 2.11 53.84
3 MWSS 123.30 6,159.82 11.26 562.37 1 112.04 5,597.45 1.25 90.87
4 LWUA 72.30 3,612.13 6.41 320.08 2 65.90 3,292.04 0.73 91.14
5 DBP 54.32 2,713.62 47.59 2,377.68 2 6.72 335.94 0.07 12.38
6 NPC 22.08 1,102.92 22.08 1,102.85 2 0.00 0.07 0.00 0.01
Loans fully availed are not included in the list.
3.4 Repayments – P562.64 billion (US$11.26 billion)
As of December 31, 2017, cumulative repayments to principal loans reached P562.64

billion (US$11.26 billion), which is equivalent to 37.98 percent of the total cumulative
21
availments of P1.48 trillion (US$29.65 billion). This is relatively higher by 1.55 percent
compared to 2016 repayments in relation to availments of only 36.43 percent. Of this
amount, P48.04 billion (US$0.96 billion) or 8.54 percent represent repayments during the
year. Comparative figures in five years are presented in Chart VI.
Chart VI – Comparative Repayments in relation to Availments

Cum ulative Cum ulative
% to
Availm ents Repaym ents
Year Cum ulative
(in billion) (in billion)
Availm ents
USD PhP USD PhP
2017 29.65 1,481.47 11.26 562.64 37.98
2016 27.51 1,369.07 10.02 498.80 36.43
2015 26.12 1,230.59 9.06 426.77 34.68
2014 24.13 1,079.53 8.33 372.56 34.51
2013 23.29 1,034.02 7.60 337.23 32.61
3.4.1 By Creditor
The details of repayments by creditors are shown in Table XVIII.
Table XVIII - Cumulative and Current Year Repayments by Creditor (in million)
Cumulative Repayments % to CY Repayments % to
Creditor
Total Repayment 11,262.25 562,639.37 100.00 961.54 48,036.53 100.00
Bilateral 5,047.45 252,160.59 44.82 413.51 20,658.19 43.01
1 JICA 3,575.02 178,600.77 31.74 321.22 16,047.47 33.41
2 ECGD 535.59 26,756.92 4.76 3.12 155.94 0.32
3 BNP PARIBAS 198.20 9,901.65 1.76 37.88 1,892.40 3.94
4 KFW 144.64 7,225.73 1.28 5.54 276.69 0.58
5 USPL 134.05 6,697.08 1.19 10.66 532.73 1.11
6 ANZ/EFIC 95.36 4,764.08 0.85 - - -
7 EFIC 89.27 4,459.62 0.79 - - -
8 KEXIM 72.35 3,614.58 0.64 11.26 562.50 1.17
9 ICO 49.54 2,475.13 0.44 5.58 278.52 0.58
10 AFD 36.19 1,807.78 0.32 12.06 602.59 1.25
11 EIB 30.09 1,503.28 0.27 - - -
12 FP 19.13 955.55 0.17 1.78 88.74 0.18
13 KFAED 18.50 924.18 0.16 1.26 62.84 0.13
14 Fortis Bank 10.23 511.09 0.09 - - -
15 ITALY II 9.75 486.85 0.09 - - -
16 SOCIETE GEN 8.76 437.47 0.08 1.46 72.91 0.15
17 KBC 8.22 410.42 0.07 1.10 54.72 0.11
18 SFD 4.36 217.97 0.04 - - -
19 JFA 2.89 144.55 0.03 0.24 12.05 0.03
20 SIDA 2.23 111.43 0.02 - - -
21 LEONIA BANK 2.22 110.91 0.02 - - -
22 Belgian 0.87 43.58 0.01 0.36 18.07 0.04
Multilateral 5,071.07 253,340.64 45.03 500.30 24,994.07 52.03
1 ADB 3,382.92 169,004.02 30.04 317.70 15,871.46 33.04
2 IBRD 1,618.30 80,847.22 14.37 175.52 8,768.59 18.25
3 OPEC 24.32 1,215.10 0.22 3.66 182.72 0.38
4 EIB 23.19 1,158.50 0.21 - - -
22
(Tab le XVIII, continued)
Creditor
5 IFAD 20.33 1,015.85 0.18 3.16 157.98 0.33
6 NDF 2.00 99.94 0.02 0.27 13.33 0.03
Commercial 1,143.72 57,138.14 10.16 47.73 2,384.27 4.96
1 CEXIM 290.73 14,524.20 2.58 25.92 1,294.95 2.70
2 ECGD 142.97 7,142.68 1.27 - - -
3 EDC 122.18 6,103.82 1.08 - - -
4 BAC 119.50 5,969.87 1.06 13.20 659.30 1.37
5 BNP PARIBAS 105.47 5,269.11 0.94 0.54 27.05 0.06
6 CAMC 55.90 2,792.54 0.50 - - -
7 BBV 52.13 2,604.36 0.46 - - -
8 FP 34.83 1,740.06 0.31 1.27 63.38 0.13
9 Credit Com'l de 30.95 1,546.34 0.27 - - -
10 France
RZOA 27.43 1,370.28 0.24 3.81 190.27 0.40
11 Banco 25.75 1,286.61 0.24 - - 0.40
12 Santander
ANZ/EFIC 22.85 1,141.72 0.23 - - -
13 Bank of America 22.48 1,122.92 0.20 - - -
14 NIB 21.38 1,068.06 0.20 - - -
15 ING Bank 17.61 879.72 0.19 - - -
16 EFIC 14.08 703.30 0.16 - - -
17 SOCIETE GEN 12.54 626.23 0.12 - - -
18 ERSTE 8.22 410.55 0.11 1.83 91.23 0.19
19 Fortis Bank 7.99 399.38 0.00 0.80 40.18 0.08
20 SIDA 6.19 309.43 0.00 - - -
21 Bancaja 2.40 119.66 0.00 0.34 17.09 0.04
22 NDF 0.15 7.30 0.00 0.02 0.81 0.00
- Loans without repayments for the current year are either fully paid or still within the grace period.
Of the cumulative and current year repayments, 55.52 percent and 39.19 percent,
respectively, were paid for the loans falling under the infrastructure sector accounts
as presented in Table XIX.
Table XIX - Cumulative and Current Year Repayments by Project Sector (in million)
Project Sector
Total Repayments 11,262.25 562,639.37 100.00 961.54 48,036.53 100.00
1 Infra. 6,253.10 312,392.33 55.52 376.84 18,825.98 39.19
2 GID 1,806.85 90,266.83 16.04 214.37 10,709.58 22.29
3 AARNR 1,423.19 71,099.72 12.64 130.70 6,529.35 13.59
4 SRCD 1,066.83 53,296.45 9.47 160.01 7,993.54 16.64
5 ITT 712.28 35,584.04 6.32 79.63 3,978.09 8.28
3.4.3 By implementing Agency
The details on repayments by government sector and implementing agency showing

that NGAs’ share represent 66.56 percent and 79.38 percent of the cumulative and
current year repayments, respectively, are presented in Table XX.
23
Table XX - Cumulative and Current Year Repayments by IA (in million)
Cummulative Repayments % to CY Repayments % to
IA
Total 11,262.25 562,639.37 100.00 961.54 48,036.53 100.00
NGAs 7,496.11 374,490.79 66.56 763.28 38,131.71 79.38
1 DOF 2,551.92 127,488.57 22.66 309.95 15,484.36 32.23
3 DPWH 1,931.46 96,491.72 17.15 150.92 7,539.50 15.70
4 DOTr 749.31 37,433.94 6.65 36.41 1,818.88 3.79
5 DAR 433.86 21,674.97 3.85 46.88 2,342.21 4.88
6 DepEd 392.35 19,600.82 3.48 56.69 2,832.12 5.90
7 DILG 280.99 14,037.82 2.49 9.75 487.14 1.01
8 DA 244.29 12,204.45 2.17 27.86 1,391.94 2.90
9 DOE 208.60 10,421.03 1.85 26.39 1,318.47 2.74
10 DOH 158.90 7,938.36 1.41 20.68 1,033.26 2.15
11 SC 118.24 5,907.28 1.05 24.27 1,212.54 2.52
12 DENR 103.13 5,152.24 0.92 12.34 616.64 1.28
13 BOC 75.90 3,792.04 0.67 12.31 614.95 1.28
14 DSWD 74.95 3,744.55 0.67 15.64 781.50 1.63
15 BFAR 59.52 2,973.31 0.53 2.40 120.04 0.25
16 PRRC 32.61 1,629.04 0.29 4.42 220.87 0.46
17 NAMRIA 25.75 1,286.61 0.23 - - 0.00
18 TESDA 23.87 1,192.73 0.21 3.47 173.38 0.36
19 PMMA 8.66 432.77 0.08 0.30 14.82 0.03
20 UP 8.60 429.54 0.08 0.33 16.52 0.03
21 OP 6.63 331.37 0.06 0.24 12.00 0.02
22 DOT 4.00 199.76 0.04 0.57 28.53 0.06
23 BIR 1.68 83.79 0.01 0.56 27.93 0.06
24 BFP 0.88 44.10 0.01 0.88 44.10 0.09
GOCCs 3,627.77 181,236.00 32.21 192.46 9,614.73 20.02
1 PSALM 1,161.74 58,038.19 10.32 - - 0.00
2 LBP 519.34 25,945.22 4.61 39.49 1,972.97 4.11
3 DBP 445.28 22,245.11 3.95 38.41 1,919.05 3.99
4 LRTA 330.94 16,533.34 2.94 31.72 1,584.58 3.30
5 NIA 197.87 9,885.31 1.76 22.08 1,103.26 2.30
6 NLRC 180.79 9,032.15 1.61 - - 0.00
7 PPA 178.27 8,906.01 1.58 6.29 314.08 0.65
8 MWSS 119.72 5,981.04 1.06 14.85 741.69 1.54
9 BCDA 110.37 5,514.01 0.98 16.98 848.30 1.77
10 PNOC 93.63 4,677.47 0.83 - - 0.00
11 SBMA 64.95 3,244.97 0.58 6.14 306.66 0.64
12 LWUA 64.88 3,241.12 0.58 5.08 253.63 0.53
13 NPC 51.43 2,569.33 0.46 1.08 53.71 0.11
14 PFDA 24.99 1,248.20 0.22 - - 0.00
15 PHIVIDEC 19.31 964.79 0.17 2.41 120.59 0.25
16 NFA 17.89 893.83 0.16 0.55 27.65 0.06
17 SBGFC 17.27 862.87 0.15 3.09 154.30 0.32
18 PNR 17.03 850.59 0.15 3.11 155.30 0.32
19 PTA (TIEZA) 7.34 366.48 0.07 0.59 29.32 0.06
20 PEZA 2.56 127.72 0.02 0.23 11.61 0.02
21 LLDA 2.17 108.26 0.02 0.36 18.04 0.04
LGUs 138.37 6,912.58 1.23 5.81 290.09 0.60
1 ARMM 126.11 6,300.04 1.12 4.60 229.84 0.48
2 PG-LDN 12.26 612.54 0.11 1.21 60.25 0.13
24
3.5 Debt Service Expenditures for CY 2017 – P66.97 billion
Total debt service for the year amounted to P66.97 billion which is relatively higher by
P5.85 billion or 9.57 percent when compared to debt service expenditures in 2016. Of the
total payments, P 48.48 billion represents payment to principal which accounts to 72.39
percent of the total debt service expenditure for 2017. The remaining balance, which
accounts to 27.61 percent represents payment for interest, commitment fee, guaranty fee
and other charges as presented in Chart VII.
Chart VII - Debt Service Expenditures (in billion PhP)
% of
Increase
9.57
3.5.1 By Creditor
Of the total debt service expenditures, P36.65 billion, equivalent to 54.73 percent
represent payments to multilateral creditors with the biggest payments made to ADB
in the amount of P21.52 billion representing 32.13 percent of the total debt service as
presented in Table XXI.
Table XXI - Debt Service Expenditures by Creditor

Amount (in million PHP)
Particulars % to Commit- Guaranty Other
Total Principal Interest
Total ment Fee Fee Charges
GRAND TOTAL 66,972.32 100.00 48,482.76 16,203.50 230.17 644.21 1,411.69
Bilateral 26,829.55 40.06 20,397.97 4,893.28 111.56 462.39 964.34
1 JICA 20,447.92 30.53 15,319.85 3,870.89 89.96 446.64 720.57
2 BNP PARIBAS 2,186.34 3.26 1,799.96 264.61 - - 121.78
3 USPL 1,632.23 2.44 1,238.17 389.10 - - 4.96
4 KEXIM 702.97 1.05 546.24 137.81 - - 18.92
5 AFD 674.49 1.01 520.83 78.62 18.69 - 56.36
6 KFW 369.77 0.55 287.30 60.65 2.91 15.75 3.17
7 ICO 312.37 0.47 264.98 36.22 - - 11.17
8 ECGD 170.88 0.26 148.32 15.96 - - 6.60
9 FP 117.52 0.18 78.46 31.32 - - 7.74
10 SOCIETE GEN 66.82 0.10 59.89 0.30 - - 6.63
11 KFAED 64.32 0.10 59.60 3.91 - - 0.81
12 KBC 52.01 0.08 47.30 - - - 4.71
13 JFA 15.71 0.02 11.46 3.34 - - 0.92
14 Belgian 15.62 0.02 15.62 - - - -
15 Artigiancassa 0.56 0.00 - 0.56 - - 0.00
Commercial 3,490.89 5.21 2,521.84 772.40 6.07 50.12 140.47
1 CEXIM 1,735.74 2.59 1,257.47 396.90 - 49.24 32.12
2 BAC 808.98 1.21 569.85 160.99 1.60 - 76.54
25
(Tab le XXI, continued)
3 FP 538.45 0.80 392.19 138.92 4.47 0.89 1.99
4 RZOA 228.12 0.34 164.46 47.09 - - 16.57
5 ERSTE 111.88 0.17 78.85 24.85 - - 8.17
6 Fortis Bank 37.02 0.06 34.73 0.94 - - 1.35
7 BNP PARIBAS 26.88 0.04 23.38 - - - 3.49
8 ICO 2.69 0.00 - 2.69 - - 0.00
9 NDF 1.14 0.00 0.92 - - - 0.23
Multilateral 36,651.88 54.73 25,562.95 10,537.82 112.54 131.70 306.87
1 ADB 21,519.27 32.13 16,315.20 4,915.12 67.81 21.73 199.42
2 IBRD 14,589.68 21.78 8,812.45 5,534.09 44.73 109.97 88.44
3 IFAD 280.48 0.42 240.46 24.72 - - 15.30
4 OPEC 245.53 0.37 182.03 61.99 0.00 - 1.51
5 NDF 16.93 0.03 12.82 1.90 - - 2.21
0.00 - less than five thousand
The BTr payments for loans directly used by the NGAs and those relent to GOCCs
amounted to P56.67 billion of which P40.98 billion or 72.31 percent represents
payment to principal while P15.69 billion or 27.68 percent represent payments for
interest, commitment fees and other charges. On the other hand, GOCCs payments
direct to their creditors for loans guaranteed by the NG amounted to P10.31 billion as
presented in Table XXII.
Table XXII - Debt Service Expenditures by Implementing Agencies

GRAND TOTAL 66,972.32 100.00 48,482.76 16,203.50 230.17 644.21 1,411.69
Paid by BTr 56,666.67 84.612 40,976.65 14,097.51 194.98 - 1,397.52
% to Total 100.00 72.31 27.69
NG-Direct 55,073.16 82.23 39,563.54 13,982.44 194.98 - 1,332.20
1 DOF 22,556.73 33.68 15,865.14 6,369.67 - 321.92
2 DPWH 9,341.31 13.95 7,059.91 1,843.92 27.65 409.83
3 DepEd 3,858.18 5.76 2,805.61 998.82 9.78 43.96
4 DAR 2,892.16 4.32 2,233.94 537.56 5.45 115.21
5 DSWD 2,508.01 3.74 778.54 1,644.18 72.54 12.75
6 DOTr 2,467.47 3.68 1,857.15 453.13 29.58 127.62
7 DA 1,832.84 2.74 1,471.98 345.33 - 15.52
8 NIA 1,490.83 2.23 1,070.71 374.23 2.26 43.64
9 DOE 1,476.97 2.21 1,255.32 150.06 4.78 66.82
10 SC 1,390.31 2.08 1,207.96 176.90 - 5.46
11 DOH 1,290.33 1.93 1,040.20 213.31 2.20 34.61
12 DENR 766.33 1.14 612.59 133.77 10.88 9.09
13 BOC 719.32 1.07 572.78 119.43 - 27.12
14 DILG 678.95 1.01 424.47 197.80 9.27 47.41
15 NPC 551.12 0.82 383.95 160.71 4.47 1.99
16 ARMM 318.16 0.48 227.13 86.29 - 4.74
17 PRRC 257.13 0.38 212.82 37.33 - 6.98
18 TESDA 211.59 0.32 158.65 41.27 - 11.68
26
(Tab le XXII, continued)
19 BFAR 135.17 0.20 116.71 14.15 - - 4.32
20 PG-LDN 76.05 0.11 57.31 14.92 - 3.81
21 BIR 63.34 0.09 27.82 35.12 - 0.40
22 BFP 57.97 0.09 38.12 6.14 1.60 12.11
23 DOT 34.21 0.05 27.14 5.26 - 1.81
24 OCD 26.29 0.04 - 11.75 14.54 0.00
25 LLDA 25.29 0.04 17.98 7.07 - 0.25
26 UP 17.52 0.03 16.46 0.80 - 0.27
27 PMMA 17.17 0.03 12.81 2.74 - 1.62
28 OP 12.41 0.02 10.37 0.77 - 1.27
NG-Relent 1,593.51 2.38 1,413.11 115.07 - - 65.33
1 LRTA 1,213.07 1.81 1,061.49 96.64 - - 54.93
2 LBP 201.39 0.30 188.17 8.99 - - 4.23
3 PHIVIDEC 119.36 0.18 114.70 - - 4.66
4 SBGFC 34.45 0.05 27.97 6.02 - - 0.47
5 NFA 15.71 0.02 11.46 3.34 - - 0.92
6 MWSS 9.53 0.01 9.32 0.08 - - 0.13
Paid by GOCCs 10,305.65 15.388 7,506.11 2,105.99 35.18 644.21 14.16
NG-Guaranteed 10,305.65 15.39 7,506.11 2,105.99 35.18 644.21 14.16
1 LBP 2,483.61 3.71 1,890.84 359.15 0.53 230.64 2.45
2 DBP 2,232.79 3.33 1,662.37 564.94 5.26 - 0.23
3 BCDA 1,271.49 1.90 860.35 199.80 - 209.74 1.59
4 MWSS 1,061.99 1.59 741.23 252.33 - 66.31 2.12
5 NFA 1,048.28 1.57 723.00 323.18 - - 2.10
6 LRTA 621.36 0.93 469.14 109.70 - 42.52 0.00
7 PPA 418.64 0.63 300.02 81.25 - 37.37 0.00
8 SBMA 418.29 0.62 308.08 55.34 - 54.86 -
9 LWUA 301.93 0.45 245.22 56.00 0.71 - 0.00
10 PNR 205.70 0.31 153.19 46.85 - - 5.67
11 PEZA 201.88 0.30 122.15 51.04 28.69 - -
12 PTA 39.70 0.06 30.53 6.41 - 2.76
(TIEZA)
0.00 - less than five thousand
Of the total debt service expenditures for the year, 36.42 percent were payments for
loans availed by the Infrastructure sector, as presented in Table XXIII.
Table XXIII - Debt Service Expenditures by Project Sector

1 Infra. 24,389.74 36.42 18,493.26 4,466.42 72.75 562.16 795.15
2 SRCD 14,988.98 22.38 7,948.84 6,775.75 108.33 - 156.07
3 GID 13,716.33 20.48 11,074.12 2,372.47 1.60 - 268.14
4 AARNR 9,593.33 14.32 7,292.11 2,070.64 47.27 21.55 161.75
5 ITT 4,283.94 6.40 3,674.43 518.23 0.22 60.51 30.56
Total 66,972.32 100.00 48,482.76 16,203.50 230.17 644.21 1,411.69
% to Total 72.39 24.19 0.34 0.96 2.11
27
3.6 Outstanding Balance – P918.83 billion (US$18.39 billion)
As of December 31, 2017, ODA loans have outstanding balance of P918.83 billion
(US$18.39 billion) which Table XXIV - Changes on Loan Outstanding Balance
increased by P48.56
billion (US$0.91 billion) Amount (in billion) % to
Particulars
compared with last US$ PHP Total
year’s balance of P870.27
Balance as of December 31, 2016 17.49 870.27 94.72
billion (US$17.49 billion).
The increase was due to Add/(deduct):
adjustments, revaluation Adjustments 0.03 1.40 0.15
of foreign currency and Forex Revaluation 0.43 24.99 2.72
availments and CY Availments and Repayments 0.44 22.17 2.41
repayments during the Balance as of December 31, 2017 18.39 918.83 100.00
year. The details are
shown in Table XXIV. Increase 0.91 48.56 5.58
3.6.1 By Type of Creditor
As to type of creditor, balances from Multilateral creditors represents 58 percent of

the total balances. The outstanding balances to lenders by type of creditors are
presented in Chart VIII.
Chart VIII – Outstanding Balances by Creditor Type (in billion PhP)

PhP Outstanding
22.90 Balances % to
Creditor Type
(2%) PhP Total
US$ PHP
364.84 PhP
(40%) 1 Multilateral 10.63 531.08 0.58
531.08
(58%)
2 Bilateral 7.30 364.84 0.40
3 Commercial 0.46 22.90 0.02
Multilateral Bilateral Commercial
Total 18.39 918.83 100.00
The specific creditors by type are presented in Table XXV.
Table XXV - Outstanding Balances by Specific Creditor (in million)

Amount
Creditor % to Total
US$ PHP
Total 18,392.00 918,827.62 100.00
Bilateral 7,302.99 364,842.77 39.71
1 JICA 6,201.82 309,830.42 33.72
2 AFD 341.68 17,069.65 1.86
3 KEXIM 212.48 10,614.97 1.16
4 BNP PARIBAS 180.60 9,022.39 0.98
5 KFW 135.06 6,747.08 0.73
6 USPL 100.07 4,999.46 0.54
7 ICO 67.80 3,387.02 0.37
8 FP 24.98 1,248.19 0.14
9 ECGD 9.36 467.81 0.05
28
(Tab le XXIV, continued)
Amount
Creditor % to Total
US$ PHP
10 Artigiancassa 7.95 397.34 0.04
11 Belgian 6.69 333.97 0.04
12 SOCIETE GEN 5.84 291.65 0.03
13 KBC 5.48 273.61 0.03
14 JFA 1.93 96.37 0.01
15 KFAED 1.26 62.84 0.01
Multilateral 10,630.61 531,084.10 57.80
1 ADB 5,439.40 271,741.58 29.57
2 IBRD 5,048.26 252,201.06 27.45
3 IFAD 97.57 4,874.51 0.53
4 OPEC 34.04 1,700.62 0.19
5 NDF 11.34 566.34
Commercial 458.40 22,900.75 2.49
1 CEXIM 278.88 13,932.24 1.52
2 BAC 115.32 5,761.37 0.63
3 RZOA 19.67 982.81 0.11
4 ICO 18.95 946.55 0.10
5 ERSTE 13.70 684.25 0.07
6 Bancaja 4.62 230.76 0.03
7 BNP PARIBAS 3.52 175.84 0.02
8 FP 3.08 153.65 0.02
9 NDF 0.67 33.27 0.00
The Project Sector with the highest outstanding balances is the Social Reform and
Community Development (SRCD) sector while the Industry, Trade and Tourism
(ITT) sector has the lowest outstanding balances as graphically presented in Chart
IX.
Chart IX – Number of Loans and Outstanding Balances by Sector
29
(Chart IX, continued)
No. of loans Outstanding Balance (in billion PhP)
Project Sector
2016 2017 2016 2017
AARNR 78 76 96.59 99.76
GID 19 20 112.50 105.32
ITT 18 18 37.84 35.63
Infra. 148 150 269.07 280.09
SRCD 65 66 354.27 398.03
Total 328 330 870.27 918.83
The first five loans under each project sector with big outstanding balances are
presented in Table XXVI.
Table XXVI - Five Loans under each Project Sector with big Outstanding Balances (in million)
Loan Account Am ount % to
Nam e of Project IA Creditor
No. US$ PHP Total
Total Outstanding Balance 18,392.00 918,827.62 100.00
Infrastructure 5,606.58 280,093.43 30.48
Subic-Clark-Tarlac Expressw ay
1 PH-P226 BCDA JBIC 407.52 20,359.12 2.22
Project
2 PH-P243 Environmental Development Project DBP JBIC 221.05 11,043.01 1.20
Pow er Sector Development

3 2282 PHI DOF ADB 210.74 10,527.90 1.15
Program Cluster
4 PH-P247 Toad Upgrading and Preservation JBIC 200.64 10,023.67 1.09

DPWH
National Roads Improvement and
5 7552 PH IBRD 186.44 9,314.04 1.01
Management Project 2
Governance and Institution Developm ent 2,108.09 105,316.01 11.46
Governance in Justice Sector
1 2840-PHI DOF ADB 254.15 12,696.65 1.38
Reform Program- Subprogram 2
Food Crisis Response Development
2 7913-PH Policy Operation: Supplemental DepEd IBRD 250.00 12,489.50 1.36
Support for Post-typhoon Recovery
Governance in Justice Sector
3 2489 PHI SC ADB 192.70 9,626.82 1.05
Reform Program
Development Policy Support
4 2450 PHI DOF ADB 189.59 9,471.57 1.03
Program Cluster-Sub Program 2
First Development Policy Loan
5 7424 PH DOF IBRD 187.45 9,364.63 1.02
Program
Agriculture, Agrarian Reform and Natural Resources 1,996.79 99,755.74 10.86
MM Air Quality Improvement Sector
1 PH-CL 020 JBIC 227.94 11,387.54 1.24
Development Program
DOF
Food Crisis Response Development
2 7615 PH 200.00 9,991.60 1.09
Policy
IBRD
Phillippine Rural Development
3 8421-PH DA 171.74 8,579.76 0.93
Project
Environmental Infrastructure
4 PH-P199 DBP 131.91 6,589.82 0.72
Support Credit Program, Phase II
JBIC
Agrarian Reform Infrastructure
5 PH-P242 DAR 101.46 5,068.87 0.55
Support Project, Phase III
Social Reform & Com m unity Developm ent 7,967.30 398,030.61 43.32
Emergency Assistance for Relief
1 3080-PHI and Recovery from Typhoon DOF ADB 500.00 24,979.00 2.72
Yolanda
30
(Table XXVI, continued)
Loan Account Am ount % to
Nam e of Project IA Creditor
No. US$ PHP Total
Disaster Risk Management and
2 8085-PH DOF 500.00 24,979.00 2.72
Development
Second Development Policy Loan to
Foster Inclusive Grow th: IBRD
3 8328-PH Supplemental Financing for Post- DOF 500.00 24,979.00 2.72
Typhoon Recovery and Amendment
to the Original Loan Agreement
4 PH-SB1 Post Disaster Stand- by Loan DOF JBIC 445.40 22,251.29 2.42
Social Welfare and Development
5 7805-PH DSWD IBRD 405.00 20,232.99 2.20
Reform Project
Industry, Trade and Tourism 713.24 35,631.82 3.88
Industrial Support Services
1 PH-P198 DBP JBIC 226.56 11,318.60 1.23
Expansion Program, Phase II
Financial Market Regulation &
2 2278 PHI DOF ADB 93.66 4,679.07 0.51
Intermediation Program Cluster
Domestic Shipping Modernization
3 PH-P189 DBP JBIC 93.21 4,656.36 0.51
Program, Phase II
4 2199 PHI Microfinance Development Program DOF ADB 61.10 3,052.18 0.33
Support for Strategic Local
5 4833 PH LBP IBRD 43.56 2,176.41 0.24
Development & Investment Project
3.6.3 By Government Sector
The loan balances by government sector with the NGAs having the highest
outstanding balance representing 82.67 percent of the total loan balances are
shown in Table XXVII.
Table XXVII - Outstanding Balances by Government Sector

Amount
No. of Loans
Implementing (in million) % to
Agency NG Total
NG Direct NG- Relent Total US$ PHP
Guaranteed
GOCCs 16 9 50 75 3,112.58 155,498.11 16.92
LGUs 5 5 74.49 3,721.52 0.41
NGAs 250 250 15,204.93 759,607.99 82.67
Total 271 9 50 330 18,392.00 918,827.62 100.00
Amount PhP 780,673.35 21,138.52 117,015.74 918,827.62
(in million) US$ 15,626.59 423.13 2,342.28 18,392.00
Table XXVIII shows the loan balances by implementing agency with the DOF and
DPWH having the highest outstanding balances representing 39.10 percent and
12.48 percent of total loan balances.
31
Table XXVIII - Outstanding Balances by IA (in million)
No. of Outstanding Balances
Creditor % to Total
Loans US$ PHP
Total Oustanding Balance 330 18,392.00 918,827.62 100.00
NGAs 250 15,204.93 759,607.99 82.67
1 DOF 37 7,191.84 359,290.11 39.10
2 DPWH 69 2,294.46 114,626.51 12.48
3 DSWD 9 1,993.75 99,603.53 10.84
4 DepEd 12 886.86 44,305.96 4.82
5 DOTr 25 603.37 30,143.06 3.28
6 DAR 18 512.15 25,585.97 2.78
7 DA 22 443.95 22,178.88 2.41
8 DILG 7 309.95 15,484.57 1.69
9 SC 2 202.37 10,109.76 1.10
10 DOH 12 153.11 7,649.29 0.83
11 DOE 3 127.52 6,370.53 0.69
12 DENR 11 116.38 5,814.07 0.63
13 BOC 2 108.73 5,432.17 0.59
14 OCD 1 60.31 3,012.97 0.33
15 BFP 2 47.32 2,364.02 0.26
16 PRRC 2 44.08 2,202.34 0.24
17 TESDA 5 38.78 1,937.51 0.21
18 BFAR 5 36.10 1,803.63 0.20
19 DOT 1 13.42 670.55 0.07
20 PMMA 1 7.28 363.48 0.04
21 BIR 1 5.03 251.10 0.03
22 UP 1 4.96 247.81 0.03
23 OP 2 3.21 160.17 0.02
GOCCs 75 3,112.58 155,498.11 16.92
1 DBP 17 957.98 47,858.52 5.21
2 LBP 13 492.57 24,607.67 2.68
3 LRTA 6 409.79 20,472.42 2.23
4 BCDA 1 407.52 20,359.12 2.22
5 NIA 12 328.59 16,415.77 1.79
6 MWSS 3 132.86 6,637.62 0.72
7 SBMA 2 108.56 5,423.37 0.59
8 PPA 2 71.81 3,587.45 0.39
9 PHIVIDEC 1 54.31 2,713.34 0.30
10 LWUA 6 52.84 2,639.57 0.29
11 SBGFC 3 38.69 1,932.64 0.21
12 PNR 2 29.65 1,481.37 0.16
13 NPC 2 13.94 696.46 0.08
14 PTA (TIEZA) 1 4.69 234.53 0.03
15 LLDA 2 4.64 231.62 0.03
16 PEZA 1 2.21 110.27 0.01
17 NFA 1 1.93 96.37 0.01
LGUs 5 74.49 3,721.52 0.41
1 ARMM 4 59.42 2,968.59 0.32
2 PG-LDN 1 15.07 752.93 0.08
32
4.0 AUDIT OBSERVATIONS
AND
RECOMMENDATIONS
4.0 AUDIT OBSERVATIONS AND RECOMMENDATIONS
4.1 Consolidated Audit Observations and Recommendations
Audit Observations Recommendations

A. Project Sustainability
Sustainability of completed projects was not assured. Management to require

Existing conditions of at least 17 projects with loan concerned officials to:
availments of P23.31 billion and existing loan balances
of P13.98 billion would manifest inability of the a) Assess LIGs since more than
implementing agencies/recipients to sustain the gain one-year business cycle has
from the projects. elapsed instead of just
waiting for the completion
Based on the records provided by the BTr, 459 loan payment of the Livelihood
agreements were entered into from 1995 to 2017, of which Assistance Fund (LAF);
392 loans were closed from 1996 to 2017. The closed/ Issue termination notice to
terminated loans were used to implement 63 programs and the LIGs as provided in the
288 projects, of which, only 275 were declared completed. MOA in case of business
Of the 392 loans, 284 have remaining loan balances ranging operation failure; and retrieve
from P4.28 million to P24.98 billion. the funds from Community
Financial Institution (CFI) for
The concerned Auditors tried to determine from the terminated LIGs. (DA/
monitoring reports or any available documents of the SCHARMP)
implementing agencies (IAs), the status/condition of these
projects to establish whether the concerned IAs/recipients b) LGUs and other beneficiary
were able to sustain the projects established upon associations, to include in
completion. Evaluation of documents submitted by the their budget, funds for the
concerned Agency officials disclosed that of the 275 maintenance of the
completed projects as of December 31, 2017, only the status transferred projects; and
of 105 projects were so far established as reflected in Table establish the obligations of
XXIX. each party in the MOA to
sustain the projects. (various
Table XXIX - Operational Status of Completed Projects projects)
Amount
No. of (in million PHP) c) Implementing Agencies to
Status
Pojects Outstanding include sustainability plan in
Availments
Balance the general plan of the
Operational 88 216,201.20 99,068.41 project; to closely monitor the
utilization of projects
Partially Operational 10 19,483.60 12,188.64 transferred to the recipient
Not Operational 7 3,828.66 1,793.55 LGUs/associations; and to
require them to submit Status
No Status Reported 170 411,016.80 182,212.67 Report showing the condition
Total 275 650,530.26 295,263.27
of the transferred project as
well as problems, issues and
concerns in the utilization of
The status/condition of 170 projects cannot be established the turned-over project and
due to, among others, the following: act accordingly to sustain the
project. (various projects)
a) Inavailability of records and information considering that
employees who implemented the projects were no longer d) Implementing agencies to
connected with the IA or recipient agency. assess the capability of the
recipient agency to sustain
33
b) Absence of monitoring by the IA of the status of the project, otherwise
completed projects. transfer the project to an
LGU committed to comply
As reported by the concerned Audit Teams, the with the requirements, and
status/condition of projects which were not sustained or fully worthy to be a project
sustained follows: beneficiary. (various
projects)
Amount Loan
IA Project Remarks
(Million P) Balances e) NPC to reassess the
DA SCHARMP 2.422 1,130.56 Various Livelihood Interest Groups (LIGs) requirements and prospects
have outstanding balances beyond the of bringing power generation
one-year business cycle due to poor and the associated power
business management, contrary to the
MOA signed by the parties. delivery systems to
commercial viability and
CHARMP Not 240.16 Out of 84 projects inspected, only 37 were
Indicated maintained by the Local Government lower production costs by
Units (LGUs) and 23 others rehabilitated; coordinating with Masbate
Seven other projects were damaged Electric Cooperative
while 17 others were partly damaged. (DA
CAR) (MASELCO) for a possible
Qualified Third Party (QTP)
Most beneficiary POs who were expected take over thru the Missionary
to care, maintain and support the
established plantation were already Electrification Subsidy
desolved. (DA/CAR) Program (MESP); Devise
more efficient collection
DFIMDP 3.320 673.78 Of the 13 food terminals established in strategies/mechanism to
the different barangays in the Provinces
of Cavite, Rizal and Laguna, out of funds
improve collection efficiency
transferred by DA to the LGUs and of power receivables;
barangays as of December 31, 2009, only Conduct physical inventory
two remains operational. (DA RFO IV-A)
taking of defective SHS and
NPC PRES 0 696.46 Mini Grid System Component - prepare an assessment
Notwithstanding the high production cost report on whether the
and low collection efficiency from continuance of the SHS
customers, NPC maintained the
operation of 128 out of the 154 installed component of the project
generator sets with the support from the would yield a more
MESP. advantageous result; and
The Solar Photovoltaic (PV) Systems -
Out of the total 5,129 solar panel units Address the identified
installed, only owners of 307 units were operational and mobilization
able to replace battery to make them issues. (NPC/PRES)
operational, 4,102 units are with
discharged batteries; 5 units were
reported accidentally burned; 4 units were f) Negotiate with the identified
reported stolen, and 801 units were LGUs/private organizations
reported defective. There were no
reported collections from the Solar Home to operate the LWMF in order
Systems (SHS) for CY 2017. to serve its purpose; Provide
the Audit Team with the
DOE PEEP 75.335 1,129.59 DOE failed to operationalize the Lamp
Waste Management Facility (LWMF), one updates/information on the
of the components of the project. results of the negotiation with
the LGUs or other
LRTA AFC 83.11 Replaced by new Automatic Fare
Collection System or Beep Cards.
government and private
organizations; and Provide
DILG ENP 843.17 Of the 16 units of ENP equipment, only justification as to why this
one was operational with limited transaction may not be
functions. It can only serve calls but
unable to do recording. All other units disallowed in audit.
were not serviceable due to (DOE/PEEP)
obsolescence, gutted by fire or damaged
by typhoon.
34
Amount Loan
IA Project Remarks
(Million P) Balances
DOTr GMDSSP 157.93 Abandoned by the contractor in CY 2000
due to non-payment of advance payment
for variation order and extra management
cost.
MSIP-3 461.53 No information in CY2017 report. Based

on CY 2008 CAAR, project equipment
were unserviceable/unutilized.
UP- UME- 247.81 In CY 2016, equipment costing 243.31

PGH DEMS million were declared unserviceable due
to wear and tear per Report of the
Property and Supply Division.
DILG CAMDP 32.89 In CY 2016, the Buldozer, dump truck and

five equipment under Solid Waste
Management were reported
unserviceable.
RWSSSP- 135.80 In CY 2016, some units were reported

5 unserviceable due to:
a. No water source;
b. Not potable for daily use;
c. With traces of lead; and
d. Parts or facility are heavily damaged
which become irrepairable.
MBUSSP 6.38 788.50 Of the 39 subprojects, only status of 28

projects were reported, of which 27 are
still serviceable. Lugait equipment with
projects cost of P6.38 million was
reported unserviceable.
PRRC PREMRP 1,928.72 Of the 59 components, 16 were not

operational
BOC NICIS 5,432.17 One unit located at Port of Davao with

pending case (BOC vs. Acquarius
Container Yard), with status quo order
from the court.
B. Project Implementation and Management
1. Completion of 17 projects within the loan period is Management to require

unlikely considering the reported project status. The concerned officials to:
benefits then to be derived therefrom will be delayed
in addition to payments of commitment fees. Based on a) Formulate realistic and
BTr report, out of the total debt service for CY attainable work plan and
2017 alone, P230.17 million represents payment of budget by: i) Preparing
commitment fees for delayed withdrawal/availment of Monthly Disbursement
loans. Program (MDP) and ensuring
that it matched with the
Considering the status of implementation of 17 projects as budgetary and disbursement
reported by the concerned Auditor Teams, the timely requirements; ii) Ensuring
completion of these projects is unlikely. The projects that programs, projects and
affected and their conditions follow: activities are ready for
implementation upon the
Amount release of allocated funds;
IA Project Remarks
(Million P) and iii) Installing budget
DA PRDP Not The project’s overall physical progress performance tracking and
Indicated of 59 percent is not commensurate
35
Amount similar system to monitor
IA Project Remarks
(Million P) utilization of allotments to
DA PRDP with the actual disbursement status of prevent lapsing of cash
32 percent as of December 31, 2017 allocations and loan
indicating very low fund utilization for
drawdowns. (DA/PRDP;
the past three years of project
DOTr/CEMTSMMP)
implementation.
4,747.00 Out of P4.747 billion allotment b) Fast track disbursement

received for CY 2017, only 15 percent process to settle possible due
or P716.861 million has been and demandable obligations
disbursed as of December 31, 2017. to fully utilize available NCA
Unobligated balance of FY 2017 GAA balances. (DA/PRDP)
amounted to P546.066 million or 26
percent. c) Review operations to
determine bottlenecks and/or
316.832 Cash allocation of P316.832 million or reasons for low utilization of
39 percent of the total allocation of funds and act accordingly;
P818.721 million received by NPCO, Fast track resolution of
PSO Luzon B and RPCO IVB in CY issues, implementation of
2017 was not utilized. planned programs, projects
and activities to avoid lapsing
19,869.00 Of the 389 total subprojects in CYs of cash allocation; Submit a
2014-2021 under the I-Build Project catch up plan for the NCA
Component with aggregate project received; and Accomplish
cost of P19.869 billion, 152 MRDs or FAR No. 4 properly
subprojects costing P6.637 billion and completely in compliance
were targeted for completion as of
with Appendix 23, GAM,
December 31, 2017. Of the targeted
Volume II. (DOTR/PPADP,
projects, only 67 subprojects costing
P1.929 billion were completed leaving NBAC-SEPP, New
85 subprojects costing P4.708 billion CNS/ATM, CEMTS-MMP,
either ongoing, for implementation or MSCIP Phase I, MSCIP,
cancelled/ terminated. Forty five of the Phase II Cebu BRT &
uncompleted subprojects costing PCGCDP; DA/PRDP)
P1.653 billion are already beyond
target date of completion. d) Provide COA with the list of
WFP not obligated, reasons
1,899.00 Proposals for I-REAP subprojects for non-obligation,
remained low in the span of three documentary requirements of
years generating only 599 subproject subprojects with extended
proposals costing P1.899 billion or 47 contract time to evaluate
percent out of the total cost allocation validity thereof pursuant to
of P4.003 billion targeted to be the provisions of RA 9184
implemented over the six-year project IRR, status of cancelled/
duration. Moreover, the required
terminated subprojects and
midterm assessment report was not
those with 10 percent and
yet submitted due to the delayed
engagement of the third-party expert.
above negative slippages,
Also, the 599 subproject proposals and approval of any fund
cover only 73 PLGUs out of the 81 realignment. (DA/PRDP)
PLGUs nationwide.
e) Revisit subproject profile of
306.832 Of the 566 total subprojects to be participating LGUs and
implemented for CYs 2016-2019 prioritize proposals for PWS
under the I-REAP Project Component considering the additional
36
Amount financing under the I-Build
IA Project Remarks
(Million P) Component; Submit the duly
DA PRDP P439.092 million were targeted for approved subproject profile
completion as of December 31, 2017. eligible for expenditure of
Of the targeted projects, only 132
prioritized proponent LGU;
subprojects costing P132.260 million
and establish basis for
were completed leaving 210
subprojects costing P306.832 million
evaluation and approval of
still ongoing, or for implementation. proposal for other
infrastructure subprojects.
Not Approved subprojects for communal (DA/PRDP)
Indicated irrigation system (CIS) and potable
water system (PWS) remained f) Direct the contractors to fast-
substantially low at 6 and 32 percent, track the completion of the
respectively, hence not corresponding projects, considering that
with the targets specified in the Project these should have already
Appraisal Document (PAD). been completed as of report
date; and monitor regularly
330.026 The accomplishments/work progress the status of implementation
of the Construction of FMR of the projects. (DA/PRDP)
subprojects in PLGU Camarines Sur,
MLGUs Esperanza, Masbate and g) Impose liquidated damages
Sison, Surigao del Norte were notably for the delay in project
sluggish contrary to the goals and
completion and take legal
objectives of PRDP, thus delaying the
action as applicable; Demand
delivery of much needed roads.
from contractors repair of
305.066 Improvements of farm-to-market roads
damaged portions of the
in Mountain Province, CAR are behind projects; and consider
schedule. providing sanctions for LGUs
in case of non-compliance
3.291 The Mountain Province Arabica Coffee with terms and conditions in
Enterprise project under (I-REAP) the scale-up of projects.
component has not yet been started (DA/PRDP/SCHARMP)
despite availability of funds intended
for the project. h) Address any project viability/
location sites, civil works or
1.536 Fund transfers from DA-CAR for the right of way issues during the
Philippine Rural Development Project planning or preliminary stage
remained unutilized contrary to of procurement, prior to
provisions of the Memorandum of bidding and project
Agreement. (Municipality of Banko, implementation, to avoid
CAR) delays and incurrence of
additional cost. (DA/PRDP/
2.702 The procurement of various equipment SCHARMP; NIA/JRMPII)
for implementation of I-REAP
subproject in PLGU Albay, was i) Ensure that the additional
delayed by an average of 314 days
financing/fund realignment to
from the time the purchase requests
cover the pipelined SPs is in
were issued until the receipt of the
NOL2, thereby delaying its
line with the PRDP results
implementation. Moreover, MLGU framework as prescribed in
Burgos, Ilocos Sur failed to the PAD; Submit disposition
immediately issue to the end-user the for the unfunded SP
purchased farm tractor amounting to proposals amounting to
P0.950 million depriving the intended P15.269 billion considering
37
Amount the depleted fund for I-Build
IA Project Remarks
(Million P) Component to ensure that
DA PRDP user of the early use of the same. these can still be
implemented. Resolve the
Not Additional expenses for materials and insufficient funding
Indicated other inputs needed for the
requirement for the remaining
implementation of the projects were
14 PLGUs with pending SP
incurred using the contributed equity of
the PG-CSOs. (PLGU Iloilo) proposal. (DA/PRDP)
9,168.00 The remaining unprogrammed fund j) Direct the LCE of MLGU

including the additional financing is Esperanza, Masbate to
still insufficient to cover the (a) prioritize and take
pipelined sub-projects (SPs) pending appropriate action in the
approval costing P24.437 billion; and implementation of Charcoal
(b) projected number of PLGUs to Briquette Production
engage as provided in the Project Enterprise to warrant timely
Appraisal Document (PAD). delivery of the benefit
therefrom. (DA/PRDP)
SCHARMP 24.137 Three infrastructure subprojects were
not fully implemented with unfinished k) Require the LGUs to
portions costing P1.907 million as of complete the projects
December 31, 2017, as of closing date immediately or return the
of the project, thereby, depriving the unliquidated amounts to the
public of the services and benefits that
SCHARMP and allocate
could have been derived from the
funds for its operation and
project.
maintenance as required
Recon- 16.322 Cash allocation of P16.322 million or under the MOA; Resolve the
struction 74 percent of the total allocation of problem on right of way for the
of DA/ P21.946 million received in CY 2017 installation of pipes; and
NAFC for the construction of the new building Demand from the contractor
LDC was not utilized by Management. repair of the damaged
Bldg. portions of the projects;
NRIMPPII 0.023 The lapses in the procurement, (DA/SCHARMP)
delivery and distribution of Universal
Testing Machines prolonged the l) Submit to COA, copy of the
attainment of the Agency’s objective of contract on the Procurement
upgrading the capacity for material of New Rolling Stock LRV
testing in Sub-Regional Laboratories (4th Generation) and
and deprived the intended recipients justifications/ causes of delay
of the immediate benefits that could be or negative slippages of the
derived therefrom, as well as, CEMTSMMP components
incurrence of unnecessary expenses. and courses of actions taken
to address delays; Prepare a
DOTr PPADP 19.899 Of the total allotments received revised Detailed Time
(7 Projects) NBAC- inclusive of continuing appropriations,
SEPP Schedule and a catch-
the amount of P15.400 billion or 77.39
New up/work plan to attain the
percent was obligated, leaving an
CNS/ target completion dates
unobligated allotment of P4.499 billion
ATM indicated in the contracts;
CEMTSMMP or 22.61 percent as of 31 December
2017. On the other hand, of the total Require all stakeholders to
MSCIP
Phase I/II cash allocations received of P4.549 avoid/minimize delays in the
Cebu million, only P2.358 billion was procurement process and
BRT & utilized, resulting in the reversion of implementation of the project.
PCGCDP P2.192 billion or 48.18 percent to the (DOTr/CEMTSMMP)
BTr.
38
Amount
IA Project Remarks
(Million P)
CEMTSMMP
m) Effectively plan and monitor
10,562.00 Despite availability of the loan facility
the project accomplishment
amounting to ¥43.252 billion, financed
by JICA to fund the Construction of the so that timely decisions can
LRT Line 1 South (Cavite) Extension be undertaken, such as
and LRT Line 2 East (Masinag) submission of requests in
Extension Projects, implementation case of realignments, and
was delayed due to slow procurement follow-ups for the issuance of
process. The delay in project No Objection Letter (NOL)
implementation also resulted in low and Clearance from DBM for
utilization/availment of loan proceeds, timely settlement of
hence, the accumulation of obligations.
Commitment Fees for CYs 2013- (DENR/INREMP)
2017.
n) Strengthen selections of
DENR INREMP Not DENR CAR has no disbursement for targeted performance
Indicated INREMP-LP and registered low indicators to come up with a
disbursement rate of 66.67 percent for more attainable performance
INREMP-GOP due to the delayed
indicators that are within the
implementation of the project.
control of the DOH; Include
end-users during the
DOH EU- 415.000 Non-achievement of three targeted
HSPSP II performance indicators required for selection and procurement
the release of the variable tranche planning of all civil
resulted in non-availment of €3.9 works/infrastructure projects
million grant; and Slow or delayed to minimize, if not totally
implementation of civil avoid, changes delaying
works/infrastructure resulted in project implementation; and
unutilized grant amounting to P415 Monitor and strengthen
million. coordination with IAs to
ensure timely project
NIA JRMPP II 1,103.000 Completion of the project within the completion. Also incorporate
five (5) year period of November 28, lessons learned from
2012 to November 28, 2017 and completed projects to avoid
extended project completion of incurrence of the same
September 2021 was affected by the project deficiencies in the
following: future. (DOH/EU-HSPSP II)
 Delays in implementation resulted in
o) Direct project engineers to
deferment of provision of year-
ensure that plans and
round irrigation to 31,840 hectares
of farm lots in the Province of Iloilo. program of works are as
This is despite incurrence of accurate as possible to
cumulative expenses as of minimize variations; and Act
December 31, 2017. with dispatch in resolving the
existing issues/problems that
 Delay in procurement of are currently hampering/
Consultancy Services for the delaying the completion of
Detailed and Construction the projects. (NIA-JRMMPII)
Supervision, and the Writ of
Kalikasan. p) ACT/RPMO personnel to:
Closely monitor, supervise
As at year-end, the Engineering and provide technical
Department reported under its Status assistance to the BSPMC
during project
39
Amount implementation and
IA Project Remarks
(Million P) immediately correct the
NIA JRMPP II Report an Overall Physical Weighted defects/deficiencies noted for
Accomplishment of only 13.56 percent the full continuity and
despite availability of funds and
functionality of the SPs;
personnel.
Conduct regular coordination
with other infrastructure
DSWD KC- Not The project registered a physical
(2 Projects) NCDDP Indicated accomplishment of 81.32 percent as government agencies to
ADB & WB of December 31, 2017, slightly below avoid overlapping of projects
the 85 percent KC-NCDDP Results to the extent that completed
Framework for CY 2017 requirement KC projects are inadvertently
per loan agreement, thus, falling short removed to make way for
of its objective of providing selected other agency’s (e.g. DPWH)
community of improved access to infra projects; Provide
services and infrastructure and to storage facilities before the
participate in more inclusive delivery of the construction
management planning, budgeting and materials at the site for
implementation. security; Institute necessary
action against the
4,804.86 The lapses in monitoring and reporting RPMO/ACT/ BSPMC who
by NPMO and Regional PMO resulted were remiss in monitoring
in low percentage of implementation/ and evaluation of the SPs;
downloading of community grants of and Ensure all work items
62.58 percent as against the 82.65 necessary to make the
percent target per KC-NCDDP project functional/operational
Operations Manual; and huge
are properly identified in the
unutilized amount which remained in
planning stage particularly in
the bank as of December 31, 2017,
thus depriving the community of the the preparation of the
immediate benefits due them. Program of Works. (DSWD-
KC-NCDDP-ADB & WB)
KALAHI- Ineffective asset management of
CIDSS KALAHI-CIDSS Projects in q) NPMO/RPMO to:
Sub- subprojects such as in adequately Systematize downloading of
Projects/ maintained or damage projects, no funds and ensure that the
GPPB/BUB
longer fully functional, inactive and available proceeds are
unregistered/ unaccredited implemented in accordance
associations for completed Income- with approved budget, project
Generating Projects. milestones, and performance
expectations; and Prepare
BFAR Fish 8.277 Cash allocation of 14.71 percent of the monthly monitoring reports
Coral NCA of P56.257 million received as as feedback mechanism to
of December 31, 2017 was not utilized ensure that project
by management due to various deficiencies and problems
constraints resulting in the reversion encountered are
thereof and delay in the appropriately and
implementation of various activities. immediately addressed by
concerned officials.
(DSWD/KC-NCDDP-ADB &
WB)
r) DSWD RPMO of KALAHI-

CIDDS to: Make
representations with LGUs to
monitor/revisit the different
40
projects implemented in the
different municipalities and
barangays; Continue the
Sustainability Evaluation Test
to ascertain the
functionalities of the different
subprojects; Require the
contractor to immediately
correct the
defects/deficiencies noted for
the full functionality of the
SPs for the benefits of the
intended beneficiaries in
accordance with Section 12.5
of the Special Conditions of
the Contract which provides
for a warranty period of 15
years; to assess their status
and functionality, in order to
address the problems on a
timely manner and avoid
wastage of government
funds. (DSWD/KALAHI-
CIDSS: KKB or GPPB
Project)
s) Ensure that programs,

projects and activities are
ready for implementation
upon the release of the
allocated funds; and Install
budget performance tracking
system to monitor the
utilization of allotments in
order to prevent the lapsing
of cash allocations;
(BFAR/Fish Coral)
2. Implementation of various projects was affected by Management to require the

either delayed/non-submission/inability of recipients concerned officials to:
to meet documentary requirements, or deficiencies in
the contract and its implementation, delayed a) Closely coordinate with the
procurement process, or non-compliance with RA No. NEDA-ICC and the French
9184 or contract covenants, among others, which may Government for the approval
adversely affect completion of projects on time and/or
effective utilization of completed projects. and concurrence of the
amended Terms of Reference
Further evaluation by the concerned audit team disclosed to facilitate the awarding of the
that the implementation of various projects are affected by contract to the winning
the following conditions: contractor and the registration
to the Financial Protocol to
avoid further delays in the
41
Amount implementation of the project.
IA Project Remarks
(Million P)
(BFAR/PHILOPP2)
BFAR PHILO Not The implementation of the project
Project Indicated was not yet started after almost two
Phase 2 years since the approval of the Loan b) Municipal personnel
Agreement in CY 2016 due to concerned in MLGU Placer,
delayed procurement process which Masbate to prepare and
caused the non-registration of
submit the updated schedule
approved contracts to the Financial
Protocol between the two contracting of disbursement and project
governments. implementation plan;
(DA/PRDP)
DA PRDP Non-preparation/revision of SP
components and procurement
c) PSO Luzon B to include in the
plan/Work and Financial Plan
(MLGU Placer, Masbate and PLGU IMA all required provisions
Iloilo) including penalty
clause/sanctions in case of
PRDP 2,125.00 Various issues in the IMA entered non-compliance or non-
NPCO, into by the PSO Luzon B and
performance and
PSOs proponent LGUs for the
implementation of I-Build cessation/winding up of the
Component subprojects consisting of project/contract or support
the following: IMA with document that would
compensate for the deficient
a. Stipulations in the IMA as well as
its supporting documents were provisions to form part of the
deficient/not submitted or not terms and conditions, and
compliant with the I-Build Manual, submit to the concerned
GAA and IMA; Auditor for audit to preclude
the issuance of NS, as
b. Schedules of releases of fund
inconsistent with the provisions in applicable;
the I-Build Manual;
d) Provide for the bases of two
c. Signatories in the ORs, are non- different Schedule of Fund
compliant with the DA General
Releases, and schedule of
Memorandum Order on the
delegated authority; fund release for the
improvement of Sta. Catalina
d. Incomplete documentary Norte-San Isidro-Kinatihan II-
requirements to support the fund Kinatihan I FMR located in
transfer to the proponent LGU;
MLGU Candelaria, Quezon;
and
e. Contract Cost in excess of e) Issue a written policy in the

Estimated Project Cost (EPC) appropriate adjustment of
ABC in conjunction with the
Not Various non-compliance in the
existing provisions with RA
Indicated implementation of I-REAP
subprojects in PLGU Antique were 9184 IRR and GPPB
noted including (a) retention of Resolution, as applicable,
income by the recipient affecting define the extent of
subproject sustainability; (b) non- “substantially higher” bid that
compliance on sale and collections
procedures; (c) non-compliance on should be rejected outright
the disbursement of funds policy; (d) within the scope of PRDP
42
Amount subproject procurement
IA Project Remarks
(Million P)
consistent with prevailing
DA PRDP no binding contract agreement
NPCO, between the Lead PG and recipients laws, rules and regulations,
PSOs resulting in undefined accountability and resolve the inconsistent
of the contracting parties; and (e) provisions in the IMA on
non-maintenance of financial records additional cost for contract
contrary to the provisions of I-REAP
cost exceeding the EPC and
Operations Manual, Enterprise
Investment Agreement and Business the bases thereof considering
Plan. the depleted fund for the I-
Build Component. (DA/PRDP)
The project incurred negative
slippage of 5.33 percent deviating
f) PRDP Project Director to:
from the approved plans and
project's S-Curve; thus, delaying its Direct the NPCO and PSO
completion and the benefits that the Luzon B to submit proof,
constituents could have derived document or report showing
therefrom. (CAR-Benguet) that the identified 17
geotagged devices, DSLR
The project was not constructed in
accordance with the plans and cameras were actually used
specifications that might result to for its intended purpose to
inferior quality of the project and preclude the issuance of ND
eventually deny the constituents of as a result of
its extensive utilization. (CAR-
Benguet) unnecessary/excessive
procurement, and provide a
The implementation of the project definite timeline for the
was suspended due to non- installation and utilization of
compliance with the 18% gradient of the fax machine as the use of
the PRDP delaying its final
completion and the benefits that the equipment could not be
farmers could derive therefrom. ascertained at a specific time.
(CAR-Benguet)
g) Require the Head of NPCO to
0.314 Purchase of semi-expendable PPE identify each recipient of the
outside the purpose for which it was
intended or not utilized at all hence mobile wifi indicating the
considered unnecessary. reasons for the need for the
same with certification from
PRDP 219.881 Concreting of Pinagwarasan to Lanot DA officials that no gadget of
Road project (I-Build Component)
was not completed on schedule or similar nature was previously
within the specified contract time, issued to them. (DA/PRDP
contrary to Memorandum of NPCO, PSOs)
Agreement (MOA) and Section 2 of
PD No. 1445, thus, the delivery of h) Strictly monitor
desired benefits of farmers and
fishers to improve their lives was not implementation of the project
achieved. (Camarines Norte) in accordance with the plans
and specifications; Compel
Not The project Rehabilitation/ the Contractor to immediately
Indicated Concreting of Poblacion-Farmington- complete the project and
Galingon-Balacbaan-Cabong-
Tilubong FMR, Municipality of repair defects, remove and
Tampilisan ZDN, is 39.751% replace the sections with
43
Amount severe honeycombs or any
IA Project Remarks
(Million P)
defective installed items; and
DA PRDP complete per report of the PPMIU
Resident Engineer. It was institute legal actions against
determined that as of December 31, the contractor for failure to
2017, the project should have been undertake and/or complete
42.22% completed thereby incurring the project within the periods
a negative slippage of 2.47%.
specified in the contract.
(Zamboanga del Norte)
(DA/PRDP/Puerto Princesa &
The steel screen surrounding the Mt. Provinces)
Cacao Production and Marketing,
Municipality of Piñan, ZDN for the i) Consider a different gradient
vermicast was already partly
for PRDP projects
damaged as evidenced by presence
of rust. The project will be delayed by implemented in the Province
1 to 2 months due to the grafting of of Benguet or whole of
the seedlings. The PPMIU of the Cordillera Administrative
PLGU did not conduct monitoring Region because of the terrain
and evaluation of the project which is
required under Section 5.0 of the in the region; and henceforth,
signed IMA. (Zamboanga del Norte) conduct survey on all
proposed project sites to
The Abaca Fiber, Municipality of determine their actual
Kalawit, and Swine Production and physical conditions before the
Marketing Enterprises, Municipality
of Siayan, both ZDN projects, have preparation of plans and
not yet commenced. The PLGU has specifications to prevent
already set up its counterpart funds suspension of the projects
for the project. (Zamboanga del during implementation.
Norte) (DA/PRDP)
DA ARCP II 22.420 Delayed implementation and non-
completion of the Rehabilitation with j) Comply with the provisions of
2.0 km Concreting of Sitio Bolanao- the IMA and the Manual of
Litolet FMR and Moyo-Sitio Pase implementation for PRDP I-
FMR projects within the time frame, Build project specifically the
resulting in the cancellation of
allocated funds in violation of Annex imposition of liquidated
I, Revised IRR of RA No. 9184. damages for all contract or
(Zamboanga del Norte) project which incurred
delayed. Should there be time
26.021 Non-completion within the time frame extension, submit all pertinent
of the Concreting of Motibot- Sto.
Rosario FMR as provided in the documents for evaluation.
contract and Revised IRR of RA No. (DA/PRDP)
9184.
k) Monitoring & Evaluation Sub-
DA PRDP 0.200 Deficiencies in the implementation of
Unit, and the Procurement
4.613 the Concreting of Bukang Liwayway-
Makandring FMR at Bgy. Langogan Sub-Unit to provide necessary
and preparation of the ABC and assistance to fast-track
POW was not in accordance with the procurement of goods
guidelines set forth under DPWH DO necessary for implementation
No. 22 dated February 18, 2015,
of the project "Mountain
thus, resulting in excessive contract
costs. (Puerto Princesa) Province Arabica Coffee
44
Amount Enterprise". (DA-Mt. Province/
IA Project Remarks
(Million P)
PRDP)
I-REAP 305.066 The implementation of four FMR
projects is behind schedule resulting
in delayed delivery of better road l) Consult
networks to the intended residents/beneficiaries and
beneficiaries. (Mt. Province) consider their
recommendation and other
3.291 The project component has not yet
been started despite the availability factors that would affect the
of funds intended for the project. output of the projects to avoid
wastage of resources.
MINSAAD Not Implementation and completion of (DA/MINSAAD)
Indicated various Agri-Business, Agro-
Forestry, and Infrastructure Projects
was not implemented within the time m) Instruct personnel to closely
frame, thus, delaying delivery of monitor accomplishment and
benefits to the intended mobilization of the POs to
beneficiaries. (Compostela Valley) ensure project completion by
year 2022. (DENR/FMP)
Rice seedlings distributed did not
sustain for long time due to
unsuitable climate condition, thus, n) Instruct the PPMO to monitor
did not benefit the beneficiaries. and evaluate the adherence of
(Compostela Valley) the POs to the WFP for SD
contracts awarded to ensure
Implementation of seventeen
MINSAAD projects of DARPO Davao the proper implementation of
del Sur is considerably delayed with the projects; and Adopt
only two being completed as of measures or catch up plan to
December 31, 2017, depriving the address the delayed
intended beneficiaries of the benefits
expected to be derived from its implementation of the
purpose. (Compostela Valley) activities in the SD contracts;
(DENR/FMP)
DENR FMP Insufficient funds in PENROs Ifugao
and Quirino and delayed mobilization o) ACTs and RPMOs personnel
of People’s Organization in PENROs
Quirino, Nueva Vizcaya and Iloilo to: Regularly monitor the on-
going and unimplemented
Not The Work and Financial Plan on the SPs especially those at the
Indicated site Development Contract with the far-flung areas and fast track
People's Organizations was not their completion; Request
strictly followed resulting in the
delayed implementation of the same assistance from the LGUs in
and the low utilization of funds. the acquisition of project sites;
(Iloilo) Make representation with the
concerned government
DSWD KC- 15.340 Fourteen SPs were found deficient agencies for the immediate
NCDDP due to failure of RPMO/SRPMO as
ADB & well as project proponents to monitor release of clearances and
WB and resolve project issues, thus, may permits needed for the
compromise the efficient and projects; Enjoin the
effective use of the facility and not in community to work within the
keeping with KC-NCDDP Community
timeline of the project
Empowerment Activity Cycle and
Monitoring and Evaluation Sub- implementation; Furnish the
45
Amount BSPMCs with the list of good
IA Project Remarks
(Million P)
standing contractors and
Manual for Program Implementer.
suppliers; and blacklist erring
SPSP 1,205.80 The account balances of CCT/MCCT contractors and suppliers.
beneficiaries under the cash card, (DSWD/KC-NCDDP-ADB &
prepaid card, and FCB mode of WB)
payment included 1.89 million
accounts with balance of P1.206
billion, ranging from P501 to more p) Officials to remit in full to the
than P50,000 that were not BTr the amount refunded by
withdrawn from 30 to 2,190 days conduits representing
upon pay-out, thereby showing that unclaimed cash grants of prior
there is no immediate need for the
years; and Revisit and
financial assistance, and casting
doubt on the eligibility of the chosen strengthen the policy on
beneficiaries. Moreover, 32,783 forfeiture of unclaimed cash
accounts with a total balance grants and remittance of
P108.614 million have no date of last refunds to the BTr to ensure
monetary activity, but still included in
the list of beneficiaries. that government resources
are maximized.
DA SCHARMP 0.286 The project, “Rehabilitation of Masla- (DSWD/SPSP)
Duagan Farm to Market Road” still
incurred deficiencies as re-validated q) Issue final notice to Contractor
and re-inspected by COA Technical
Services. to correct deficiency,
otherwise, ND will be issued
DOTr CBRT 312.65 Transfer of the procurement of covering the amount of
Technical Support Consultant (TSC) deficiency. (DA/SCHARMP)
by the Department of Transportation
(DOTr) to the Procurement Service –
Department of Budget and r) Submit the reason/causes of
Management (PS-DBM) despite the delay and/or negative
having its own Bids and Awards slippages of the project
Committee (BAC) caused further components, and work plan to
overall delay in the implementation of address the delays, and
Cebu Bus Rapid Transit (CBRT)
Project for more than one year and justification on the transfer of
two months as of year-end and procurement of TSC to the
incurrence of unnecessary PS–DBM despite WB and
administrative cost of P2.952 million GPPB’s recommendations;
in the form of service fee. The delay
Prepare a catch-up/work plan
in project implementation also
resulted in low utilization/availment of to attain the target completion
loan proceeds hence the dates indicated in the agreed
accumulation of CFs for CYs 2015- timelines; Require all
2017. stakeholders to
avoid/minimize further delays
NBACSE 1,333.53 Recoupment of CY 2016 balance of
PPCEMT the account Advances to Contractors in the procurement process of
SMMP: of P3,411.100 million and additional the remaining project’s
CBRT advances of P217.471 million during components and their
Project; the year, or a total of P3.629 billion
New implementation; and Require
was only P2.295 billion or 67.28
CNS/ATM the PMO-CBRT to adopt an
percent thereby, leaving a balance of
the account of P1,333.526 million as effective project monitoring
46
Amount system and to fully utilize the
IA Project Remarks
(Million P)
work of the Financial
Project; at year-end. The low recoupment
MSCIP & rate could be attributed to the Management Specialist to
PPADP delayed submission of claims for maximize loan availments and
progress billings of the consultant for avoid accumulation of CFs.
New Bohol Airport Construction and (DOTr/CBRT)
Sustainable Environment Protection
Project (NBACSEPP).
s) Ensure continuous and
DPWH CLLExP, 27.647 Delayed procurement procedure and effective monitoring of
ARBP II, project implementation by selected additions/payments and
PMRCIP contractors; and current issues on recoupments of Advances to
II, FRMP, relocation of informal settlers and
RUPP viability/practicability of project sites Contractors and require all the
and which should have been addressed PMOs to adopt an effective
RIIDP during feasibility or preliminary project monitoring system;
engineering study. require contractors and/or
consultants to expedite
NRIMPP 0.023 Lapses in the procurement, delivery
II and distribution of Universal Testing submission of Claims for
Machines resulting in incurrence of Payment or Progress Billings;
unnecessary expenses. and submit
reason/justification on the late
DOE E-Trikes 94.029 The specifications of some items filing of the said PBs and
offered by the winning bidder were
not in conformity with the Agency actions taken by PMOs.
requirements and contract (DOTr/NBACSEPP;CEMTSM
specifications. Further, the MP:CBRT Project; New
reasonableness of the contract cost CNS/ATM Project; MSCIP;
could not be determined due to the and PPADP)
absence of detailed breakdown of
the Approved Budget for the Contract
(ABC) and Contract Cost. There was t) Adopt efficient and timely
only six months remaining before the procurement procedure and
closing of the loans. Commitment comply with duly responsive
charges and management fees
strategies adopted to
were incurred due to low loan
availment. accelerate fund utilization;
Prepare catch up plan to
MDFO ARCP 2 Not Delayed/Non-submission of or ensure that the projects are
Indicated inability of the LGUs to meet implemented on targeted
documentary requirements for the
schedule; Impose liquidated
release of fund for sub-projects.
damages; and initiate
NIA PIDP 44.74 The leniency of BAC and TWG termination/rescission of
resulted in the award of a contract for contract on projects with
Mindoro Oriental Marinduque liquidated damages of 10
Romblon (MOMARO) IMO to a non-
percent and negative
compliant/ineligible contractor as
discussed below: slippages of more than 15
percent due to contractor’s
 Completeness of information in the fault or negligence, pursuant
Contractor’s Key Personnel’s to Section 68 and Annex I, of
Affidavit of Commitment to Work
the Revised IRR of RA 9184;
on the Contract to know whether
the Contractor and his key Disclosed during the planning
47
Amount stage any problems on
IA Project Remarks
(Million P)
relocation of informal settlers
personnel have on-going project/s
with other IMOs within the NIA and viability of the project
MIMAROPA Region not verified. discovered during preliminary
engineering study should be.
 No proof of actual inspection of (DPWH/CLLExP, ARBP II,
equipment and/or evaluation of
PMRCIP II, FRMP, RUPP,
ownership or lease/purchase
agreement supporting the RIIDP & NRIMPP II;
Equipment Utilization Schedule of DA/PRDP)
on-going projects of the Contractor
to ensure that equipment are still u) Provide explanation and/or
available for Contract
implementation.
basis for accepting the
winning bidder’s offer despite
 Comparison of the List of its non-conformity with the
Contractor’s Equipment disclosed required technical
that the Contractor pledged some specifications and provide the
equipment which were already
detailed breakdown of the
provided in the first two (2)
Contracts with MOMARO IMO. ABC and Contract Cost.
Henceforth, require the
 Duly-approved Construction establishment of an ABC for
Safety and Health Program and all projects, including ADB-
Contractor’s Environment
funded projects, as a basis to
Management Plan were not
submitted. determine if the bidders’ offer
is acceptable or not. (DOE/E-
 Surety bond was posted by the Trikes)
Contractor instead of either of the
required forms, particularly, cash,
v) Identify issues/difficulty in the
cashier’s/manager’s check, or
bank guarantee. submission or compliance by
LGUs with documentary
NIA ARIIP Not ARIIP is yet to be fully turned-over to requirements and provide
Indicated NIA Regional Office No. I which is not technical assistance to LGUs
in accordance with NIA
as deemed necessary to
Memorandum Circular No. 43 S. of
2007 and Plans of Action under maximize availment of grants.
Unnumbered NIA Memorandum (MDFO/ARCP 2)
dated March 24, 2015, thus affecting
the account balances reflected in the w) BAC and TWG to: Ensure that
financial statements of the Regional
Office. procurement requirements
are consistently followed from
DBP DSSDP The Branch granted loans to private bid documents to project
corporations out of ODA funds completion, and that bid
contrary to Section 4 of RA No. 8182 evaluation and post-
dated June 11, 1996, thus depriving
other bonafide recipients of qualification procedures
government priority economic and prescribed in the Revised IRR
social development projects of of RA No. 9184 and GPPB
needed funds. ODA shall not be Manual of Procedures for the
availed of or utilized directly or Procurement of Infrastructure
indirectly for the Financing for private
to commercial credit. Wadeford Projects are strictly followed;
48
Amount and Require the Head of the
IA Project Remarks
(Million P)
Procuring Entity (HOPE) of
Foundation, Inc. and Saint Dominic
School of Kalibo, are private NIA-Occidental Mindoro IMO
corporations with ready access to to request the IAS and the
commercial credit. (Region VI) Legal Department of the NIA-
HO to conduct investigation to
determine the extent of
participation of the members
of the BAC and its TWG
including NIA officials in the
award of contracts to non-
compliant contractors and to
file appropriate charges, if
warranted. (NIA-PIDP)
x) Coordination with the former

officials of ARIIP who are
presently employed in
ARISEP in the turn-over of
completed project. Any
concerns relating to the
turnover must be discussed
by both parties and resolved.
In addition, assistance from
the Construction CMD of NIA
CO may be sought in case of
issues which could not be
resolved by the parties
involved in the turn-over.
(NIA/ARIIP)
y) Grant only term loans to

borrowers whose program
and projects are in
consonance with the national
priority projects pursuant to
Section 4 of RA No. 8182
dated June 11, 1996, and
submit valid justification for
the deviation from the criteria.
(DBP/DSSDP)
C. Financial Management
1. Payments were made even for transactions with Management to require the
incomplete/inadequate documentation, without legal concerned officials to:
basis or non-compliant with existing rules and
regulations, among others. In other cases, payments
49
were made in full without deducting the required a) Submit all required
retention money. supporting document
including evidentiary support
In a number of instances, transactions without legal basis
on contract time extension;
and/or with incomplete or inadequate supporting
computation of ABC and its
documents or non-compliant with existing rules and
supporting Market Survey
regulations were just the same paid. The Team also
and true copy of the JEV
noted payments in full without deducting the required
issued by Region XII,
retention money:
covering recorded receipt of
Amount two units excavator,
IA Project Remarks
(Million P) transferred from the books of
DA PRDP Not Contractors/PG paid despite the NIA Central Office, ARE
Indicated incomplete supporting documents.
(PLGUs Bataan; Camarines Sur; and report of Physical Count
Camarines Norte; Guimaras, Iloilo of PPE as of December 31,
MLGUs Paoay, Ilocos Norte; 2014 and December 31,
Buenavista, Quezon; Nasipit, Agusan 2015 duly verified by the
del Norte; Trento, Agusan del Sur)
COA Auditor to evaluate the
Time extensions were granted several propriety of payments to the
times despite deficient documentary contractor/PG. See to it that
requirements. (PLGUs Camarines disbursements of public
Norte; Iloilo MLGU Veruela, Agusan funds are supported with
del Sur)
complete documentation in
Other deficiencies in the submission of compliance with the
contract and liquidation reports provisions of Section 4 of PD
(PLGUs Sorsogon; Guimaras; Iloilo) 1445.
(DENR/INREMP/FMP;
Travel expenses amounting to DA/PRDP; NIA/NISRIP)
P300.00 or less incurred by the
officials and employees of RPCO IV-A
were not supported by a Certification b) PPMIU of PLGU Sorsogon
of Expenses Not Requiring Receipts to ensure that PRDP
as required by COA Circular No. 2017- transactions are legal and
01 dated June 19, 2017.
valid; require submission of
Several claims for travelling expenses liquidation documents,
and per diems by the PRDP for the physical and financial
period August 2016 to June 2017 were reports in accordance with
paid in excess of the amounts allowed existing guidelines.
under EO No. 248 as revised under
(DA/PRDP)
EO No. 298 dated March 23, 2004,
thus, considered as excessive
expenditures pursuant to COA c) Comply with the existing
Circular No. 2012-003 dated October laws, rules and regulations
29, 2012. (Region II) regarding the payment of
travelling expenses and per
DA PRDP Not Non-deduction of retention money
Indicated from the claim of Contractors. (CLGU diems and refund the excess
Lucena, Quezon and PLGU Albay) claims. (DA/PRDP)
Absence of or expired performance
security. (PLGU Albay and MLGU d) Accountant to withhold the
Trento, Agusan del Sur)
uncollected/deficient
50
Amount retention money from
IA Project Remarks
(Million P)
subsequent billings of
DA 0.354 Payments for Representation
Expenses, Relocation Allowance in contractors in CLGU
PSO Visayas and various purchases Lucena, Quezon and PLGU
in RPCO XI were not supported with Albay, and to strictly
valid documentary requirements to implement proper
prove the reasonableness and
withholding of retention
necessity of the transactions, thus,
rendered the occurrence and validity money on partial billings by
of the disbursements, doubtful. contractors, as applicable;
(DA/PRDP)
15.803 Honorarium/ incentive was paid to DA
officers and employees detailed to
e) BAC and/or PEO of PLGU
NPCO, PSO Luzon A, RPCOs II, III, X
and XI on a part-time or full-time basis Albay and MLGU Trento,
without complying with the guidelines Agusan del Sur to strictly
set forth in the DBM Circular No. 2007- comply with the Revised IRR
2 dated October 1, 2007 and COA of RA No. 9184 on the proper
Circular No. 2012-001 dated June 14,
2012, thus, documentary posting of performance
requirements to support the payment security and require
thereof were inadequate. contractors to renew the
performance bond as
The payment of performance incentive applicable and furnish the
on March 2, 2017 by the PRDP to its
consultants/ COS/project-hired and Auditor a copy thereof;
DA personnel has no legal basis and
not in accordance with National f) Monitor implementation of
Budget Circular No. 433 dated March infrastructure projects with
1, 1994 and Civil Service Commission more than one year contract
(CSC) Resolution No. 020790 dated
June 5, 2002, thus, considered as duration; (DA/PRDP)
irregular and excessive expenditures
pursuant to COA Circular No. 2012- g) Stop the practice of paying
003 dated October 29, 2012. (Region honoraria to DA employee
II)
assigned to the PRDP on a
2.305 The procurement procedural lapses part-time or full-time basis;
such as non-posting of the Invitation to and Require the concerned
Bid and posting of 5% performance personnel to refund the
security in the claim for the amount of the honoraria
implementation of I-REAP sub-
received. (DA/PRDP)
projects for civil works portion,
Oriental Mindoro Calamansi Trading
Center and Buying Station, with a total h) Stop payment of salary
contract cost of P2,305,362.00 differential to full-time
violated Sections 21.2.1 (b) and 39.2 detailed officials/personnel
of the Revised IRR of RA No. 9184.
in NPCO, RPCOs II and III,
Moreover, the paid disbursement
vouchers on this claim were not PSOs Luzon A and Visayas
supported with complete pending the Decision on the
documentation contrary to Section 4.6 Petition for Review filed by
of PD No.1445. the PRDP before the COA-
CP on November 6, 2017 on
the disallowed salary
51
Amount differential granted in CY
IA Project Remarks
(Million P)
2015 and the response of
DA PRDP- 77.934 The incomplete submission of
I-REAP documents for the final inspection of DBM on the letter of inquiry
I-BUILD the PRDP I-BUILD infrastructure submitted by PRDP as to the
subprojects, Concreting of Bagong validity of payment to full-
Silang-Macatoc Farm to Market Road time employees. (DA/PRDP)
(FMR) at Victoria and Concreting of
Dulangan I-II FMR, Baco, Oriental
Mindoro, and I-REAP civil works i) PLGU Isabela to ensure that
portion, Construction of Oriental all work items are computed
Mindoro Calamansi Trading Center at using the Detailed Unit Price
Bayanan II, Calapan City and Buying Analysis of DPWH to avoid
Station at Poblacion III, Victoria,
incurrence of over costing of
Oriental Mindoro, with a total contract
cost of P77,934,368.49, violated COA contracts and those found to
Circular No. 2012-001 dated June 14, be defective based on
2012 and COA Circular No. 2009-001 results of Technical
dated February 12, 2009. Evaluation and Inspection by
COA TAS be corrected
PRDP 5.426 Salary differential equivalent to the
difference between the PRDP rate and and/or rectified. Request for
basic salary rate was paid to full time re-evaluation/inspection
DA/PLGU personnel designated to upon correction of the
work in NPCO, PSOs Luzon A and deficiency. (DA/PRDP)
Visayas, RPCOs II and III on a full-
time basis contrary to Section 58,
General Provisions of RA No. 10717 j) PLGU Iloilo to review the
or the FY 2016 GAA and DBM Budget computations in the ABC
Circular No. 2007-2 dated October 1, and Contract Cost for the
2007. quantity take off versus
COA Calculation which
Not Defective road construction of PLGU
Indicated Isabela was noted in the resulted in the variance
implementation of I-Build and I-REAP indicated in the TSO Report;
subprojects. and effect corrections, if
warranted; and MLGUs
PRDP- 1.426 PSO Mindanao continued to grant
Trento, Agusan Del Sur and
I-REAP year-end incentive to DA organic
I-BUILD personnel on detail to PRDP and to Nasipit, Agusan Del Norte to:
personnel on consultancy contract of Instruct the Municipal
services despite the absence of Accountant and Treasurer to
legal basis. withhold/deduct the excess
amount from the amount
DA PRDP- 2.938 The Approved Budget for Contract
I-REAP (ABC) and contract cost of the
payable to the contractor,
I-BUILD Rehabilitation of Imbang-Grande- otherwise, a ND will be
Tagubong-Gemumua-Agahon-Agtabo issued. (DA/PRDP)
FMR, Passi City in PLGU Iloilo are
over by P2.375 million and P2.192 k) Comply with the provisions
million, respectively, due to the
erroneous mathematical computation and guidelines in the
of 1,800.70 square meters in the total Revised IRR of RA No. 9184
area of Item 311-Portland Cement particularly on budget
Concrete Pavement (PCCP). allocation, preparation of the
Likewise, the contract cost for the
approved budget for the
52
Amount contract, procurements
IA Project Remarks
(Million P)
involving catering services,
DA Rehabilitation/Concreting of FMR in
PLGU Isabela and MLGU Trento, procurements based on the
Agusan del Sur and Rehabilitation of approved APP, documentary
CIS in PLGU Nasipit, Agusan del requirements such as duly
Norte was found to be excessive signed request for
considering that it is higher than the
Quotations by the
COA estimated cost. (PLGUs Iloilo,
Isabela, MLGUs Trento, Agusan del prospective suppliers; and
Sur and Nasipit, Agusan del Norte). Pre and Post Repair
PRDP 1.087 Catering Services of various trainings Inspection Report. (various
RPCO X and seminars in CY 2016 and 2017 projects)
were paid prior to the perfection of the
terms and conditions agreed upon per
Purchase Order (PO), contrary to the l) Submit all lacking
provisions of the Revised IRR of RA documents to the Audit
No. 9184. Team and COA-TAS for the
final evaluation and
0.424 Purchases of plane tickets on official
inspection of the affected
travels of personnel were not included
in the approved Annual Procurement projects. (DA/PRDP/I-
Plan (APP) of the agency and REAP/I-BUILD/IBRD)
procured without competitive bidding
contrary to IRR and RA No. 9184, m) Stop the practice of
thus, no assurance that the prices
obtained/offered were the lowest costs procuring plane tickets
prevailing in the market. directly from DAMPC,
instead include its cost in
IBRD-WB- 0.200 The COA TAS noted several cash advances granted to
PRDP 4.613 deficiencies in the implementation of the concerned personnel in
project Concreting of Bukang Liwayway-
Makandring Farm to Market Road accordance with EO No. 248
(IBRD-WB-PRDP project) at Bgy. dated May 19, 1995, as
Langogan. Moreover, preparation of amended by EO No. 248A
the ABC and Program of Work (POW) dated August 14, 1995 and
was not in accordance with the EO No. 298 dated March 23,
guidelines set forth under DPWH
Department Order (DO) No. 22 dated 2014. (DA/PRDP)
February 18, 2015, thus, resulting to
excessive contract costs. (RO 4B, n) Require the recipients of the
Palawan) CY 2017 Year-End
Incentive, performance
Not Payment of Progress Billing for the
Indicated Concreting of Bukang Liwayway to incentive and honorarium to
Makandring Farm to Market Road refund the amount received
Project, Barangay Langogan did not in full; and Stop the grant of
meet the required minimum physical unauthorized benefits.
percentage of accomplishment based
(DA/PRDP;
on the schedule stated on the PRDP
Project Implementation Management DENR/InREMP/FMP)
Agreement (IMA).
o) Prepare the ABC and POW
Provisions of RA No. 9184 not in accordance with the
observed resulting in irregular
revised guidelines set forth
expenditures. Several goods and
services were purchased without any under DPWH DO No. 197
53
Amount dated October 7, 2016; and
IA Project Remarks
(Million P)
Require all contractors of the
perfected contract and/or fully/partially
delivered/rendered prior to the affected projects to refund
approval/issuance of the Purchase the total excess cost of
Request (PR), Request For Quotation P4,613,412.88 or deduct the
(RFQ) and Purchase Order (PO). same from any money claim
Procurement of goods and services
or retention fee due them or
not coursed through the Bids and
Awards Committee (BAC); and other securities posted by
business name and address of them; and to repair the
prospective suppliers not indicated in defects and other installed
the RFQ when issued, and items or unperformed works
procurement of motorcycle is irregular.
(Ifugao, CAR) noted amounting to
P200,141.25 or deduct the
DAR ARCP II 0.784 There were project expenses charged amount of cost deficiencies
to GCF in CY 2017 although funds from any money claim or
transferred were for prior years and retention fee due them or
without the corresponding legislative
enactment for the use thereof for other securities posted by
current expenses, contrary to Section them. (DA/ IBRD-WB-PRDP
28, Chapter 4, Book VI of EO No. 292. project)
Likewise, expenses thereto were not
properly documented and recorded. p) Strictly comply with the MOA
or IMA, particularly in the
CONVER- 0.385 A fixed monthly honoraria were given
GE to personnel without valid and financial management
justifiable basis. system for National
Government Agency funded
MINSAAD 0 Mobile paid for CY 2017 was not programs/ projects/activities
supported with authority/Special
in a manner adequate to
Order specifying the officials and reflect the operations of the
employees entitled to mobile
privileges.
City Government in carrying
out the Sub-project or any
DENR INREMP 0.460 Disbursements for catering services part thereof.
during the conduct of four days
Seminar-Trainings in PENRO-Lanao q) Refrain from using the
del Norte exceeded the approved
budgets for the activities in violation of
balance of the GCF for
the provisions of Sections 10 and 31.1 current year expenses.
of the Revised IRR of RA No. 9184, (DAR/ARCP II)
Section 4 of PD No. 1445 and COA
Circular No. 2012-001 dated June 14, r) Submit legal basis for the
2012, thereby casting doubt on the
validity of the transactions paid. payment of honoraria with
report of accomplishments
PENRO Not Payment for reimbursement of showing level of difficulty of
Ifugao Indicated travelling expenses of PENRO- their duties and
Bukidnon personnel during CY 2017 responsibilities, the extent of
were not evaluated with regard to its
urgency and necessity, as the number productivity and quality of
of days allegedly travelled in achieving performance of the
their respective purposes were recipients of honoraria.
excessive. (DAR/CONVERGE)
54
Amount
IA Project Remarks
(Million P)
s) Submit justification for
FMP 0.425 Payment of Honoraria to DENR RO VI
and PENRO Iloilo officials and charging the expenses to the
personnel was not included in CY project instead of from the
2017 FMP Work and Financial Plan regular funds and the basis
(WFP), thus, may be considered for claiming in excess of
illegal expenditures.
P1,000.00 monthly
Non-deduction of retention money for allocation for division chiefs;
warranty as required under Section and concerned claimants to
54.5 and Section 62 of the 2016 attach a copy of the SO
Revised IRR of RA No. 9184, thus, entitling them to cellphone
correction of defects for the works
allowances.
done was not assured. (PENRO-
Ifugao) (DAR/MINSAAD)
0.707 Plantation sites with total area of t) Discontinue the practice of

138.53 hectares were established charging to Fund 101 Trust
within the existing natural forest
account, expenses which
contrary to DENR Memorandum
Circular No. 11, dated Oct. 11, 1988 was not related to the
thus resulting in overpayment. (CAR, purpose for which the trust
Ifugao) was created.
(DENR/INREMP/FMP)
0.055 Honoraria paid to DENR RO VI
officials involved in the implementation
of the Forestland Management Project u) PENRO Ifugao to consider
(FMP) was charged against the Fund disposing fully depreciated
101 Trust contrary to Section 4 (3) of vehicle and no longer
PD No. 1455 and DBM Budget economical to maintain to
Circular No. 2007-002 dated October
1, 2007, thus, may be considered as avoid further incurrence of
illegal expenditures. (Region VI) expenses and make
representation with the DBM
0.114 Repair of vehicle in PENRO Ifugao is for acquisition of a new
beyond the 30 percent maximum vehicle. (DENR/FMP)
allowable cost of repair of vehicle,
thus, considered unnecessary and
excessive. v) Request the repair shop
concerned to fix air
DENR INREMP 0.434 Unit costs of contracts awarded for the conditioning unit of the
PENRO implementation of afforestation and vehicle free of charge; and
Kalinga reforestation projects for CY 2016 are
inconsistent with FMB Technical deduct retention for warranty
Bulletin 1-2, thus unnecessarily security or require special
increasing expenditures. (CAR, bank guarantee pursuant to
Kalinga) Section 62.1 of the 2016
Revised IRR of RA No. 9184.
LBP YRP Not The Progress billings/payments to
Indicated LGUs and Contractors for the projects (DENR/FMP-PENRO
lacks documents required in the Ifugao)
separate Agreement to the Financing
and Project Agreement and related w) Submit justification on
Progress Billing Procedures. The
payment of plantation site
YRP Special Deposit Account
disclosed deviations from the terms within the existing natural
55
Amount forest. Henceforth, consider
IA Project Remarks
(Million P)
the existence of micro forest
and conditions of the Separate
Agreement to the Financing and in future reforestation
Project Agreement, such as: non- contracts to avoid waste of
submission of certain requirements for government funds.
progress billings/payments; and the (DENR/FMP/PENRO-
total amount of ORs issued by the
Ifugao)
Contractor does not
correspond/reconcile with the total
amount released to LGUs. These x) Make representation with
were not supported by ORs. higher authorities for
clarifications on the
NIA PIDP 0 The documents supporting payments
inconsistencies in unit cost
made to Equi-Parco Construction
Company for Contract No. PIDP11-C- and submit replies to the
BRISN-3 were not complete, contrary office of the auditor; and
to Section 4(6) of PD No. 1445. Amend contracts awarded if
warrantied to avoid
Thus, validity and propriety of
payments could not be ascertained. disallowance in audit.
The incomplete documentation, along (DENR/INREMP/PENRO-
with the non-approval of key Kalinga)
personnel replacements and quantity
changes, inconsistent signatories, and y) Comply with disbursement
excessive time extension without
supporting no objection document procedures in the Separate
from World Bank (WB) and without Agreement Financing and
approved revised PERT/CPM Project Agreement between
Network Diagram; are indicative of the KfW and LBP, and
poor execution, supervision,
related Progress Billing
monitoring, and evaluation of the
procurement and implementation of Procedures to ensure
the Project. successful implementation
of the project; and Require
NISRIP 13.365 The non-submission of documentary LGU to submit ORs issued
requirements for procurement of
by the Contractor for funds
goods for the supply and delivery of
one (1) unit Hydraulic Excavator, received. (LBP-YRP)
crawler mounted and one (1) unit
Hydraulic Excavator, crawler swampy, z) PIDP PMO to submit lacking
cast doubt on the propriety of the documents and ensure
disbursement. Likewise, the
adequate supervision over
inconsistencies in the dates of the
delivery and acceptance of the implementation of the
equipment as shown/reported in Contract; Monitor the
various documents resulted in equipment mobilized and
inadequate imposition of liquidated key project personnel
damages (LD). LD should have been
computed from September 28, 2014 to
deployed in the Project;
July 22, 2015, equivalent to 296 days Prepare and submit Daily
in the amount of P1.34 million, but the Inspector’s Report to PIDP
penalty imposed and paid by the PMO; and Completely
contractor per NIA’s OR No. 221250 evaluate work
dated May 26, 2017 was only
P44,045.83, short of P1.29 million. accomplishment to
determine whether each
56
Amount work item delivered is
IA Project Remarks
(Million P)
compliant with the Technical
Hotel accommodation and meals of
personnel from other Offices were Specifications (TS) of similar
paid from NIA INIMO Fund 501 LFPs contracts. (NIA-PIDP)
contrary to Section 6 of Executive
Order No, 298, s. 2004. (Region I) aa) Impose liquidated damages
for every delay in the
TIEZA BEIP 442.636 Transfer Certificate of Title (TCT) to
the Investment Properties acquired by subproject implementation;
TIEZA either by purchase or donation Bill the contractor and collect
remained not in its name. the remaining liquidated
damages; Initiate the
conduct of an investigation
to determine the extent of
participation of NIA officials
and employees in the
delivery of equipment
resulting in non-imposition of
the maximum liquidated
damages and file
appropriate charges if
warranted.
(NIA/NISRIP;DA/PRDP)
bb) Payment of travel expenses

shall be strictly in
accordance with Section 6,
EO No. 298 s. 2004, in case
of payment of actual
expenses, the necessity of
such expense shall be
certified by the head of the
agency. (NIA/NISRIP)
cc) Expedite the transfer of the

real properties’ title in the
name of TIEZA. (BEIP)
2. The financial reports/documents were not submitted Management is required to:

to the concerned Auditors within the period
prescribed under existing laws, rules and a) Accountant, Focal Person
regulations. and Finance Unit to
immediately submit DVs,
The concerned implementing agencies failed to submit to IMA, Purchase Orders,
the concerned Audit Teams financial statements and
reports within the period prescribed under foreign donors’ contracts duly supported,
guidelines/manuals, existing laws, rules and regulations. terminal reports, Statement
Thus, timely audit actions cannot be undertaken as in the of Receipts and
following instances: Expenditures and all
57
Amount accounting and financial
IA Project Remarks
(Million P)
reports to COA, otherwise,
DA PRDP 61.535 The accounting and financial
reports/statements and DVs and/or suspension of the salaries of
Statement of Receipts and concerned personnel will be
Expenditures and RCI of three recommended until they
PSOs, four RPCOs, eight PLGUs complied with the
and six MLGUs were not submitted
requirements of the
for review within the prescribed
period contrary to Sections 6.7.1 Commission; Strictly
and 6.7.2 of PRDP Financial observe the reglementary
Management Operations period in the submission
Guidelines. thereof as stated in the
PRDP FMOM and existing
666.608 Copy of IMA, POs and contracts
together with supporting documents laws, rules and regulations.
were not submitted by RPCO V, (DA/PRDP/EHRDP/
PSO Mindanao and MLGU Trento, SCHARMP; LBP/CADF)
Agusan del Sur within five days after
its perfection, contrary to COA
Circular No. 2009-001, RA No. 9184 b) Submit BRS and Monthly
Revised IRR, World Bank Reports of Official Travels
Procurement Guidelines and PRDP and Fuel Consumption
Operations Manual (FMOM). within the timeframe
established by regulations;
Not Bank Reconciliation Statements
Indicated (BRS) under MDS and Trust and Coordinate with the
accounts were not in conformity with Government Service Banks
the prescribed GAM format and were on the use of internet
not submitted within the prescribed banking facility, particularly
period. (Region II) on its capability to access
SCHARMP 1.310 Sixty one (61) DVs pertaining to the and download statement of
period September and December accounts/bank statement
2017 remained unsubmitted as of needed in the preparation of
audit date. BRS and use the prescribed
format provided in GAM
EHRDP Not Approved Terminal Report and
Indicated financial reports to establish the Volume II in the preparation
physical and financial of BRS.
accomplishment of the Program not (DENR/FMP/INREMP;
submitted. DA/PRDP)
DENR FMP Not BRS were not submitted within the
INREMP Indicated prescribed period, contrary to
Section 5, Chapter 21 of the GAM,
Volume I; Section 74 of PD No. 1445
and COA Circular No. 92-125A.
The Monthly Report of Official

Travels and Monthly Report of Fuel
Consumption were not submitted,
contrary to COA Circular No. 2013-
002.
58
Amount
IA Project Remarks
(Million P)
FMP Not CY 2017 DVs for the months of June
Indicated and August to December 2017 for
Fund 102-GOP; and May to
December 2017 for
Fund 102-LP, not yet submitted.
LBP There was significant delay in the

submission of the financial
statements and supporting
documents resulting in the late
issuance of Audit Report for the year
ended December 31, 2016, contrary
to paragraph 2.06 (c) of the Annex to
the CADF Grant Agreement and
further affecting bank reputation.
The Special Account Statement,
Statement of Expenditures and
Notes to Financial Statements for the
year ended December 31, 2016
were submitted only on January 30,
2018.
3. Implementing agencies failed to revert back or remit Management to require

collections and unused balances and interest income concerned officials:
generated therefrom to the BTr.
a) Accountants to deposit to the
Huge amounts of unutilized funds and collections were BTr the unremitted
not reverted back or remitted by the concerned performance bond, other
implementing agencies to the BTr and remained in their
respective depositary accounts: refunds and interest income
generated therefrom and
Amount from foreign currency
IA Project Remarks
(Million P) deposits. (DA/PRDP;
DA PRDP 0.325 NPCO and PSO Mindanao failed to
comply on the mandatory remittance
DENR/InREMP;
of various collections and refunds MDFO/NPS/ENREMP/MRD
due to BTr. P2 and LOGOFIND)
1.539 Interest income was not remitted to b) Revert back the balance of
the BTr by NPCO, PSOs Luzon B
and Mindanao contrary to Section 65
the GCF Trust account to the
of PD No. 1445. National Treasury.
(DAR/ARCP II)
DAR ARCP II 48.731 DAR continued to maintain the
General Control Fund (GCF) under c) NPMO to coordinate with
Account No. 0702-1042-03 with an
unbooked balance despite the
LBP on the status of cash
absence of authority to maintain cards issued to beneficiaries
thereof from the Permanent and make necessary actions
Committee contrary to the Joint COA to recover the amount to be
and DBM Circular No. 4-2012 dated remitted to the Btr; Expedite
September 11, 2012.
the validation, investigation
59
Amount or re-assessment of the
IA Project Remarks
(Million P)
eligibility of concerned
DENR INREMP 0.202 Interests earned from foreign
currency account deposits for beneficiaries and fast tract
CY 2017 were not remitted to the the implementation of the
BTr. resolution to address the
MDFO NPS- 108.571 Cash balances from proceeds from problem; Intensify
ENRMP refunds of unexpended balances
monitoring and follow-up of
MRDP2 & made by LGUs, unutilized cash
LOGO- balances from completed projects, beneficiaries by field
FIND and interests earned from three (3) personnel and update the
completed projects not remitted to data base for non-
the BTr. compliant/delisted
beneficiaries; and Strictly
DSWD SPSP 5,385.00 Refunds from LBP conduits in CYs
2013 to 2017, representing implement the NAC
unclaimed cash grants of 4Ps Resolution No. 41, Series of
beneficiaries for OTC mode of 2017. (DSWD-SPSP)
payment, were not returned to the
BTr pursuant to Section 88 of the
d) Program Manager to
General Provisions of the GAA.
immediately coordinate with
DOH WHO 2.130 Unspent amount of P2.076 million the implementing agencies
and Interest Income in the amount of to submit accomplishment
P55,428.09 was unreturned due to and/or utilization reports and
non-submission of accomplishment
forward the same to the
utilization reports for every biennium
activities/project funded under WHO. Finance Staff for the proper
disposition of the unspent
POPSTI 2.910 Unutilized cash balances of dormant cash balance of the previous
RP accounts and interest income earned biennium. Also the Finance
were not remitted to the BTr.
Staff to immediately remit
the interest income to the
BTr. (DOH/WHO)
D. Compliance with Existing Laws, Rules and Regulations and Provisions of the MOA
1. Existing laws, rules and regulation were not observed Management is required to:
and/or complied with in the implementation of various
projects. a) Provide for the proper
disposition of the Due from
Further review of the documents by the concerned audit NGAs-PS (DBM) pertaining
teams disclosed the following: to account balances of
completed projects.
Amount (DA/InfRES)
IA Project Remarks
(Million P)
DA InfRES Not Advances to PS-DBM sourced
Indicated from InfRES project funds aged b) PSO Mindanao to
four to seven years were still consistently follow-up
outstanding in the books despite liquidation of long overdue
completion and closure of the CAs for travel from personnel
project.
who are no longer connected
with the agency and exhaust
60
Amount all means to settle the
IA Project Remarks
(Million P)
unliquidated balance; Stop
DA PRDP 0.610 Non-compliance with the
guidelines pertaining to the grant, the practice of treating
utilization, and liquidation special purpose CA as petty
of cash advances in PSO operating expenses under
Mindanao resulting in the regular CAs; Instruct
accumulation of unliquidated cash
Accountant to verify
advances aged from 28 days to
579 days as of December 31, accountable officer’s
2017. liquidation reports (LRs) and
either record these within 10
Not Out of nine implemented sub- days upon receipt if
Indicated projects of the PRDP, only two complete; demand
were liquidated thereby leaving immediate submission of
seven unliquidated as of date
lacking documents to enable
contrary to COA Circular No. 94-
013 due to delay in processing of drawing of entries for
liquidations. (Region 5, Sorsogon) liquidation; Stop the grant of
additional CAs unless the
Various deficiencies were noted in previous CA is settled or a
the liquidation reports submitted
proper accounting thereof is
by Proponent Groups contrary to
pertinent accounting rules and made; Direct all AOs to
other financial requirements liquidate CAs within the
mentioned in the prescribed period, and at the
Not PRDP-IREAP Financial end of the year; and Instruct
Indicated Management Operations
the Accountant to require all
Guidelines. (Region 5, Sorsogon)
AOs to use the RCD form in
15.541 Despite purchase and utilization of liquidating special CAs.
12 motor vehicles for NPCO and (DA/PRDP)
PSO Luzon B, no markings of “For
Official Use Only” were seen on
c) NPCO and PSO Luzon B to:
these units, contrary to COA
Circular No. 75-6 dated November Provide explanation for the
7, 1975 failure to procure the
required stickers/ prescribed
11.149 The PPE accounts of NPCO, PSO markings for all the PRDP
Luzon B and RPCO V were not motor vehicles; Submit
insured with the GSIS or any definite timeline for the
financially sound and reputable
procurement of the
insurance companies against
damage or loss through theft, fire prescribed markings in
and other fortuitous events, which compliance with COA
is not in consonance with RA No. Circular Nos. 75-6 and 75-
656 or the Property Insurance Law 6a; and Submit report on the
as amended by PD No. 245 dated
follow-ups made by the
July 13, 1973.
PRDP on the status of
Not PRDP Accountable/ Property unissued government vehicle
Indicated Officers accountable for the plates with the LTO.
various PPE were not properly (DA/PRDP)
bonded, contrary to Treasury
Circular No. 02-2009 dated August
6, 2009.
61
Amount d) Direct the PAccO to prioritize
IA Project Remarks
(Million P)
the processing of PRDP
DA PRDP 2.042 The withholding tax rate used in
the payment of honorarium to part- liquidation reports to reflect
time personnel for CYs 2016 and correct and timely events in
2017 was only 10 percent contrary the financial reports to be
to the provisions prescribed under furnished to its oversight
Revenue Regulations No. 10-2008
agencies. (DA/PRDP)
dated July 08, 2008 resulting in the
under-withholding of tax
amounting to P1.075 million and e) Direct the PPMIU to train and
P0.967 million. supervise adequately the
Proponent Groups on
4.215 Withholding taxes on government
financial requirements and
payments in RPCO V and 4B,
Oriental Mindoro were not remitted procedures to correct any
to the BIR within the period deficiencies in accomplishing
prescribed under Revenue liquidation reports based on
Regulation No. 2-98. accounting rules and
procedures including those
4.215 The Withholding taxes on Value-
Added Tax and Creditable Income prescribed in the PRDP
Taxes Withheld-Expanded were manuals. (DA/PRDP)
not remitted within ten days
following the end of the month f) Accountable Officers for all
contrary to BIR Revenue
Regulation (RR) 4-2002 dated PPE of NPCO, PSO Luzon B
March 26, 2002 and RPCO V in coordination
with the Accounting Division,
67.589 Non-compliance with laws, rules to facilitate the preparation
and regulations resulted in the and submission of the list of
total disallowances and
suspensions in the audit of various insurable PPEs for inclusion
transactions amounting to in the annual work and
P70.696 million of which P3.107 financial plan, so that the
million were settled, thereby, necessary insurance
leaving an outstanding balance of coverage for all the assets
P67.589 million.
a. Non-compliance on the policy can be applied with the GSIS
on partial settlement of audit or other reputable insurance
disallowances in NPCO, PSOs companies. (DA/PRDP)
Luzon B and Mindanao –
P6.094 million.
g) Accountable Officers to be
b. Non-settlement of
resigned/separated properly and sufficiently
consultants and DA personnel bonded pursuant to existing
no longer assigned to NPCO, COA rules and regulations;
PSOs Luzon B and Mindanao (DA/PRDP)
– P4.615 million.
c. Low settlement of suspended
accounts in RPCO V – 1.19% h) Accounting Office to (i)
submit proof of remittance of
Not Settlement of audit disallowances the under withheld taxes to
Indicated with Notice of Finality of Decision BIR in excess of the
(NFD) were not strictly complied
allowable statutory amount of
and approved request for
instalment payment enforced/ P82,000.00, as applicable;
62
Amount and (ii) ensure that
IA Project Remarks
(Million P)
appropriate withholding
DA PRDP implemented in violation to
Section 7.1 of COA Circular 2009- taxes are deducted from any
006 dated September 15, 2009 payments in accordance with
and COA Resolution No. 2017- the Revised Withholding Tax
021 dated November 3, 2017. Table/ schedule in the TRAIN
(Region II)
Law and to remit to BIR
Project signages in PLGU Iloilo within the prescribed period
were not compliant and updated starting CY 2018.
with the information required in (DA/PRDP)
Item 3.6.4 of the PRDP I-Build
Operations Manual and COA
i) NPCO, PSO Luzon B and
Circular No. 2013-003, thus,
deprive the people of information Mindanao, RPCO V to
on matters of public concern and submit a request for
participation in the monitoring and settlement of disallowances
validation of the efficiency of on installment basis in
project implementation, contrary to
the transparency and accordance with COA
accountability principle on the use Resolution No. 2017-021,
of public funds. otherwise refund
immediately are unsettled
15.523 Interest earned from PRDP I- balances and enforce
BUILD and I-REAP GOP
Counterpart and Loan Proceeds settlement from
Trust Funds were not transferred resigned/separated
to the General Fund, contrary to employees by sending
Section 305(d) of RA No. 7160, demand letters; Take legal
otherwise known as the Local actions to compel concerned
Government Code of 1991, thus,
they were not considered as part consultants to refund their
of the local funds which are overdue liabilities and
available for the payment of consider withholding a
expenditures and obligations of retention money equivalent
the Municipality. (Region 4A,
to one/half month
Quezon Province)
consultancy fee earned for
Not Copy of the MOA was not provided the first month of service to
Indicated to the PGS prior to fund transfer compensate for any future
from PRDP and deposit of loss in case of AWOL or
corresponding LGU counterpart
similar instances; and Submit
contrary to COA Circular No.
2012-001. (Region 5, Sorsogon) complete supporting
documents of transactions
0.443 Salaries of several job order suspended in audit,
employees for the “Muyung otherwise, initiate the
Project” were inappropriately
necessary administrative
charged against the Local
Counterpart, instead of the Grant, and/or criminal action in case
contrary to the approved project of unjustified failure/refusal to
proposal and itemized budget, effect compliance with the
which could adversely affect the settlement of suspensions.
attainment of the goals and
(DA/PRDP)
objectives of the project. (CAR-
Ifugao)
63
Amount j) Enforce
IA Project Remarks
(Million P)
compliance/settlement of the
DFIMDP 2.703 BPI could not determine the
employees/officials responsible or audit disallowances and
accountable for the various PPE comply strictly with the
recorded in the books sourced provisions of COA Circular
from DFIMDP funds as of 2009-006 dated September
December 31, 2017 due to the
15, 2009 and COA
failure of the Property Officer to
maintain the PAR, or formerly Resolution No. 2015-031
ARE. dated August 20, 2015, as
amended by COA Resolution
DENR CBFMMP 1.202 PARs were not issued/renewed 2017-021 dated November 3,
every three years and every time
2017.
there is a change in accountability,
thus, exposing the property to the
risk of possible loss or misuse. k) PPMIU to require the
Provincial Engineering Office
FMP Not Budget of at least five percent was to ensure that all required
Indicated not allocated for gender and
information in the Project
development in the Work and
Financial Plan for CY 2017, Signboard be provided and
contrary to Section 37 A.2 of RA updated; and in the
No. 9710 or the Magna Carta on prescribed size that can be
Women (MCW) and its IRR. clearly seen by the public.
(DA/PRDP)
0.062 Cash advances for traveling
expenses of PENRO Iloilo
amounting to P61,608.00 were not l) Municipal Accountant to
liquidated by the concerned effect the transfer of interest
accountable officers within the income from CY 2015 to CY
prescribed period resulting in the
non-recording of traveling 2017 totaling P15,523.67 to
expenses in the period these were the General Fund and
incurred. prepare correcting entry to
reflect the interest income
DENR FMP- Not Proper procurement process was earned on June 2017 in
PENRO Indicated not followed in the repair of vehicle
and retention money was not relation to IREAP.
Ifugao
deducted for warranty contrary to (DA/PRDP)
RA No. 9184.
m) Direct the PPMIU to secure
DOH EU- 243.613 Non-liquidation of fund transfer to immediately a copy of the
HSPSP II Implementing Agencies (IAs),
contrary to COA Circular No. 94- MOA from the DA to ensure
013 dated December 13, 1994. that PRDP transactions are
legal and valid. (DA/PRDP)
WHO 7.094 Fund transfer to nine
UNICEF 0.393 implementing agencies remained n) Charge the salaries of the
unliquidated for six to nine months
due to non-monitoring of project Administrative Officer and
status by program managers. Assistant against the grant
component instead of the
DPWH RIIDP 1.280 Unrecouped cash advances from local counterpart of the
completed projects. This should “Muyung Fund” pursuant to
have been recouped from the
progress billings of the contractor.
64
Amount the Grant Agreement and the
IA Project Remarks
(Million P) itemized budget; (DA/PRDP)
This is outstanding for more than
one year. o) Property Officer to determine
the Accountable Officers who
KC- Not The completed infrastructure
projects under the KC-NCDDP, are in possession of the PPE
NCDDP– Indicated
ADB, WB, KC-NCDDP Additional Financing procured under DFIMDP.
Additional and JSDF-CDED SLP as of (DA/DFIMDP)
Financing December 31, 2017 were not
& JSDF immediately made available in the
p) Issue PARs every time there
Grant for agency’s website, contrary to
Section 92 on Transparency in is change in accountability or
CEDPPP
Infrastructure Projects per GAA, custodianship to actual users
thus, depriving the right of the of equipment and renew the
people to information on matters of PARs issued to end-users
public concerns at the least
every three years thereafter
possible cost on public funds.
to properly establish
KC- 5,109.00 The non-liquidation of fund accountability over the use
NCDDP transfers to various NGOs/POs and custody of the assets.
ADB & and the pending/unrecorded (DENR/CBFMMP)
WB liquidations with Community-
Beneficiaries and KC-NCDDP
Field Offices Finance resulted in q) Officials and employees
the minimal settlements, long concerned to immediately
outstanding accounts, and liquidate their cash advances
accumulation of the account and see to it that all cash
balance as at year-end contrary to
Sections 5.3 and 5.4 of COA advances are liquidated as
Circular No. 2007-001. required upon return of
accountable officers to their
DSWD KC- 448.357 Capital expenditures of permanent official stations.
NCDDP infrastructure projects were (DENR/FMP)
categorized in the budget
proposals of DSWD as MOOE
instead of Capital Outlays, thus, r) PENRO Ifugao to consider
capital expenditures were disposing fully depreciated
accounted as Subsidies-Others, vehicle and no longer
contrary or inconsistent with the economical to maintain in
state policy on the preparation/
formulation of budget proposal accordance with existing
that harmonize budgetary and regulations to avoid further
accounting code classification of incurrence of expenses and
government expenditures. make representation with the
DBM for acquisition of a new
4Ps 10,746.00 Funds transferred to the LBP of
P183.357 billion for OTC vehicle. (DENR/FMP-
payments to the 4Ps beneficiaries PENRO Ifugao)
has unliquidated balance of
P10.746 billion as of December s) Accountant to draw adjusting
31, 2017, of which P4.655 billion
entries to reflect the correct
or 43.32 percent represents fund
transfers from CY 2012 to 2016, balance of the Due from
thus, not in keeping with Section NGOs/POs and Financial
V-B, paragraph 8 of DSWD and
65
Amount Assistance accounts.
IA Project Remarks
(Million P)
(DENR/ SCHARMP)
LBP MOA dated July 14, 2011.
DOTr CBRTP, 75.19 Of the 2017 year-end aggregate t) Project Manager/PMO to

NBACSE balance of P535.45 million of exert all efforts by requiring
PP accounts Due from NGAs, Due the IAs to immediately submit
TADP, & from GOCCs and Due from LGUs,
liquidation/ utilization reports
LADP 85.96 percent or P460.26 million
was aged below one year and the as well as accomplishment
14.04 percent or P75.19 million reports on funds transferred;
had been outstanding for more (DOH/EU-HSPSP II;
than a year to over ten years. The DOH/WHO/UNICEF)
liquidation of the 2016 ending
balance of P88.99 million was
registered at 15.50 percent or u) Submit Inventory report of
P13.80 million only as of 31 PPEs and other documents
December 2017 due to dormancy that form part of the phase-
of Due from GOCC and Due from out plan of the Project in
NGAs prior years’ balances of
P47.41 million and P10.47 million, compliance with DO No.
respectively. 2017-0238; Execute deed of
donation of completed
DAR IARCDSP 0.028 Withheld taxes of prior years were project to the recipient LGU
still not remitted to the BIR as of and coordinate with the
December 31, 2017, contrary to
DOF, DBM and COA Joint Circular Accounting Division to record
No. 1-2000. partially/completed
infrastructure projects.
(DOH/ EU-HSPSP II)
v) Management to direct the

Chief Accountant to facilitate
the recoupment of advances
to contractors amounting to
P1,280,146.48 relative to
completed RIIDP contracts.
(DPWH/RIIDP)
w) FOs to issue demand letter to

organizations concerned
pursuant to the guidelines
set forth in COA
Memorandum No. 2017-010
and compel them to refund
the unliquidated amounts,
otherwise, file appropriate
legal action, if warranted;
Include in the MOA
stipulations, such as the
responsibility of the
concerned NGOs/POs to
66
account and settle the funds
transferred and the legal
sanctions in case of failure to
liquidate the same; and
Require KC-Regional PMO
to fast track review and
evaluation of liquidation
documents for immediate
recording in the books.
(DSWD/KC-NCDDP-ADB &
WB)
x) DSWD FO No. XIII to prepare

its budget proposals for
capital expenditures on
infrastructure projects in
accordance with existing
budgetary policies so that
capital expenditures are
captured, from the time of
budget appropriation until
funds are disbursed, under
capital outlay accounts.
(DSWD/KC-NCDDP)
y) LBP to strictly adhere to the

provisions of the MOA and to
explain or justify the non-
release of needed cash for
the 4Ps beneficiaries, if
warranted. (DSWD/4Ps)
z) Monitor strictly the

compliance by the IAs with
the provisions of COA
Circular No. 94-013 and
MOAs on the timely
submission of liquidation
reports for fund transfers to
avoid long outstanding and
dormancy of balances of
Inter-Agency Receivables; In
cases where submission of
liquidation reports is already
nil, require the IAs to issue
certifications that the
projects funded out of the FT
67
have been completed and
recognized in the books of
accounts, duly verified by
their respective COA
Auditors. These certifications
shall be used as supporting
documents in recording
liquidation in the DOTr
books; and Consider the
filing of a request for write-off
of dormant long outstanding
accounts with the COA
pursuant to COA Circular No.
2016-005 dated December
19, 2016. (DOTr/CBRTP,
NBACSEPP, TADP, &
LADP)
aa) Immediately cause the full

remittance to the BIR of all
unremitted withheld taxes
and review and analyze the
entries in the General
Ledger and prepare the
necessary adjustments.
(DAR/IARCDSP)
2. The provisions and/or requirements under the Management is required to:

Memorandum of Agreement (MOA) or
contract/project document or Project Operations a) PLGU Ilocos Norte to
Manual were not strictly observed and/or not appropriate P252,915.21
complied with in the implementation of various representing its share for the
projects. Solar Drying Pavements
sub-project as stated in the
As reported by the concerned audit teams, certain IMA. (DA/PRDP)
provisions in the MOA or contract/project document were
not observed in the implementation of the following b) Ensure the submission of
projects: required reports within the
deadline set to enable the
Amount Audit Team to promptly audit
IA Project Remarks
(Million P)
and settle the agency’s
DA PRDP 0.253 The amount of P252,915.21
representing 10 percent transactions and accounts.
counterpart of PLGU Ilocos Norte (DA/PRDP)
was not actually provided by
MLGU Vintar, Ilocos Norte which c) Make representation with the
is not in accordance with the
BTr for the necessary
prescribed cost-sharing stated in
the IMA, thus the non-usage of the amendment to the pertinent
68
Amount portion of the MOA treating
IA Project Remarks
(Million P)
on the application of
said amount.
exchange rates for the
Not Monthly, quarterly and annual computation of FXRC claims
Indicated report were not submitted to the based on mutual agreement
Audit Team contrary to the I-Build by both parties. (DBP/EDP-
Operations Manual and Financial
NW)
Management Operations Manual
of the PRDP. (CAR/Apayao)
d) Apply the provision of the
DBP EDP-NW 9.268 The MOA by and between the BTr MOA on the imposition of
and DBP was not revisited and penalty for payments
amended as mutually agreed
received after 10 banking
upon by both parties, particularly
the computation by the Bank of days from BTr’s receipt of
FXRC claims from the BTr on DBP’s billing. (DBP/EDP-
foreign-denominated ODA NW)
borrowings that is not aligned with
the pertinent provisions of the
e) Pursue with JICA the
MOA, resulting in a net overclaim
for CY 2017. approval of the existing fund
pooling system for the
The Bank did not levy penalty for booking and monitoring of
all 2017 payments of FRXC claims ACSP-funded accounts to
received after 10 banking days
comply with the requirement
from the BTr receipt of the billing,
contrary to the provisions of the of Section 6(1) of the Loan
MOA by and between the NG/BTr Agreement No. PH-P244.
and the DBP. (LBP-ACSP)
LBP ACSP Not The Revolving Fund Account for
Indicated the Agricultural Credit Support
f) Obtain copies of documents
Project was not established, thus, from the creditor evidencing
deviating from Section 6, Article III payments made on the loans
of the Loan Agreement between with the corresponding
LBP and JICA. The LBP, instead, interests. (NFA/ 1995 USPL
used its current fund pooling
system with booking/tagging Title I Program)
mechanism capable of monitoring
fund movements. In principle, the
requirements of Section 6(1) of
the Loan Agreement is satisfied.
JICA should defer the issuance of
no objection to the request
pending resolution of some
matters with LBP.
NFA 1995 USPL Not In CY 2017, NFA has complied

Title I Indicated with the terms and conditions on
Program payment of the principal and
interest provided in the MOA.
Based on the letter of Commodity
Credit Corporation (CCC)
submitted by Management to the
Audit Team, its record is
reconciled with NFA’s books.
69
Amount
IA Project Remarks
(Million P)
However, the afore-mentioned
letter is not sufficient as it is not
considered official, even the
information provided therein did
not substantiate all the payments
made by NFA.
E. Reliability of Financial Statements
The propriety and accuracy of FS accounts of various Management to require

projects cannot be established due to inclusion of concerned officials to:
unserviceable PPE and/or exclusion of other accounts,
unreconciled balances and errors in recording, among a) Prepare the Inventory and
others. Inspection Report of
Unserviceable Property and
As reported by the concerned Auditors, the financial submit to the Accountant for
records of the following projects were unreliable due to the the preparation of JEV to
following reasons: clear the PPE accounts from
unserviceable property.
Amount (DA/PRDP/SHARMP;
IA & Project Accounts Remarks
(Million P) DENR/CB FMMP)
DA/ PPE 0.091 Damaged PPE were not yet reported as
PRDP unserviceable, not yet disposed and
were still carried in the books of PSO b) Conduct physical inventory
Visayas. of all properties including
2.694 Non-inclusion of PPE accounts in the unserviceable property for
RPCPPE of NPCO and PSO Visayas disposal; and prepare
CIB 103.173 Absence of BRS and Ledger in PSO RPCPPE to include all PPE
Mindanao accounts in the NPCO and
Receivables- 2.333 The Receivables – Disallowances/
NDs/NCs Charges reported is doubtful due to the
PSOs and to exclude all PPE
existence of an unreconciled amount. transferred to the agencies.
(Region II) (Various Projects)
CIB-LCCA 28.465 Twenty-four (24) unreleased
commercial checks at year end were not c) Request depositary bank to
reverted back to the cash account as of release Bank Statement on
December 31, 2017 thus, understated
time, and Accountant to
the Cash in Bank – Local Currency,
Current Account as of December 31, prepare BRS and
2017. corresponding adjusting
Due from 75.93 Expended fund transfer still outstanding entries and to submit to COA
LGUs & in the receivable accounts of PSO for verification of the ending
CIP Luzon B balances of cash accounts
8.766 Unadjusted and/or unreconciled recorded in the books.
variance between the balance per
books and the results of confirmation of
(Various Projects)
receivable accounts in PSO Luzon B
Accounts 15.885 Overstated due to a misclassification of d) Direct the Accountant to
Payable & account and insufficiency of supporting draw a JEV to recognize
Other documents to support the validity of necessary adjustments and
Payables some claims (Region II)
to draw a JEV at the end of
Due to 0.803 Non-maintenance of SL Due to National
NGAs Government Agencies (NGAs) account. each year to adjust the
Books vs 29.069 Unreconciled amounts of obligation and reversion of unreleased
FAR 85.388 disbursement between PRDP NPCO commercial checks to the
report and those presented in the cash account at year end
70
Amount whenever applicable;
(Million P) Ensure that issuance of
Financial Accountability Report (FAR).
check and approval of
Inventory 0.287 Purchases of inventory items in NPCO
and RPCO V were directly recognized related DVs are based on
as expense accounts contrary to the valid claims and duly
prescribed perpetual inventory item per supported with complete
Section 9, Chapter 8 of GAM for NGAs documentation. (DA/PRDP)
Volume I.
Not Agricultural produce, supplies and
Indicated materials purchased were not recorded
e) LGUs to fast track
first as inventories in the books of submission of liquidation
accounts resulting in ineffective control documents to DA and other
and misstatement of the financial government agencies for the
statements. (CAR/Ifugao) adjustment of account
PPE 0.387 Irregular procurement of motorcycles balance and for fair
DA/ Due from 3.350 Fund transfers treated as expense
presentation in the books of
SCHARMP NGOs/ POs instead of recording as Due from
and NGOs/POs; thereby understating the the Due from LGUs and CIP
Expense account Due from NGOs/POs and accounts for I-Build
Account overstating the expense account. Component and expense
PPE 11.974 Equipment found during inspection of account for I-REAP
P0.117 million, unserviceable but Component.
remained in the books of accounts of
P0.915 million equipment; and
equipment transferred to other agencies f) Accounting and Budget
which remained in the books costing Divisions to resolve the
P10.942 million discrepancies of the fund
SCHARMP 3.350 Recorded directly as an expense utilization status report
instead of recording it as Due from between the records of
NGOs/POs, thereby understating the
account Due from NGOs/POs and
PRDP NPCO and in the
overstating the expense account FAR. (DA/PRDP)
DA/ PPE 2.047 Difference between property records of
DFIMDP P12.272 million and accounting records g) Submit to the Accountant
of P10.225 million. and to COA accurate and
DA/ Inventory 0.300 Overstated due to non-preparation of
properly accomplished
InfRES RSMI
0.264 Non-moving SL account balances since RPCPPE not later than
October 2014 January 31 of each year as
PPE Not Non-recording of Communication prescribed in the GAM for
Indicated Equipment in the books of INFRES NGAs. (Various Projects)
which are included in the RPCPPE and
found during the physical count
DAR/ Receivable 11.300 Overstated due to non-reconciliation of
h) Accountant of NPCO and
ARCP II Accounts balances with IAs; IAs not also RPCO V to observe the
compelled to submit liquidation reports proper accounting in the
within the prescribed period, thus, purchase of inventory items
accumulating receivable balances. using the prescribed
Cash Not Non-submission of BRS for the GCF perpetual inventory system.
Indicated Trust Fund (Account No. 0702-1042-
(DA/PRDP)
03) and FAPsO MDS with Account No.
2070-9015-04
Non-submission of the Statement of i) Identify issues/difficulty in
Comparison of Budget and Actual the submission or
Amount compliance with
DAR/ PPE 12.167 Property and Equipment for Distribution documentary requirements
ARCP II and other Property Plant and
GOP and Equipment (PPE) and the
and provide technical
LP corresponding accumulated assistance to LGUs as
depreciation amounting to deemed necessary to the
P1,006,663.12 were recognized in the
71
Amount maximize availment of
(Million P) grants. (DAR/ARCP II)
books under Fund 158 and Fund 102
ARCP II-GOP and LP despite the
absence of supporting documents and j) Accountants to draw
actual receipt of PPE and crediting adjusting entries to restate
Subsidy from Central Office thus, beginning balances or
affecting the reliability of the balance of correct erroneous entry
the said accounts as of December 31,
2017. (Region IX)
and/or reflect correct
DAR/ CIB-LCCA 4.659 Unaccounted difference between book balances of PPE and Cash in
CONVERGE and bank balances and non-preparation Bank accounts and all other
of adjusting entry/ies to reflect the said affected accounts or
variance. reclassify account to
Due from 5.687 Recording in the books under Fund appropriate account.
Central Office 102-ARCP II-LP & GOP, Fund 102- (Various projects)
& Subsidy Project ConVERGE funding checks not
from Central yet received by debiting Due from
Office Central Office and crediting Subsidy k) Prepare and regularly
from Central Office, resulting in the update SLs including SLs for
overstatement/ misstatement of the Due to NGAs, Advances to
said accounts as of December 31, 2017 Contractors, CIP, and PPE
(Region IX) to support the reported
Due from 3.817 Transactions were recorded in the
Operating books despite the absence of
balances in the books of
Unit (asset appropriate basis for recognition of the accounts. (Various Projects)
account); same, resulting in the misstatements of
Training 4.522 Due from Operating Unit (asset l) Accountant to reconcile with
Expense; & account) of P3.817 million; Training project personnel to
Payables 7.065 Expense (expense account) of P4.523
million and Payables as of December
determine the
31, 2017 of P7.065 million. (Region IX) variance/unreconciled
Payables; 48.018 Transactions were recognized in the figures and disposition and
Expenses; & 7.268 books under Fund 102 despite the propriety of, outstanding
Asset 40.750 absence of perfected contracts/POs inventory items as well as
Accounts and actual receipt of goods and analyze the non-moving
services, resulting in the overstatement
subsidiary account balances
of expenses for the Payables and
assets as of December 31, 2017. and effect adjustments, if
DARPO- Subsidy and 49.412 Recognition in the books under Fund warranted.
ZDS/ Due from 102-Project Converge of Subsidy from (DA/InfRES/PRDP)
CONVERGE Central Office Central Office without corresponding
receipt of fund overstated Subsidy and m) Management adjust and
Due from Central Office.
restate the beginning
Payable 11.954 Recording of obligations under Fund
Accounts 102-Project Converge for the balances of the affected
procurement of farm inputs/hauling accounts as of January 1,
trucks in favor of the DARRO IX to avoid 2018 to reflect the correct
the lapsing and reversion of unused account balances. (DAR/
appropriation was not in keeping with CONVERGE)
Section 11 of the GAM- Volume I.
Due from 32.778 The agency recorded in its books of
Central Office accounts Subsidy from Central Office n) Ensure that obligations
& Subsidy (Credit) for funding checks not yet recorded are duly supported
from Central received and debiting Due from Central with documents as required
Office Office under Fund 102-Project under existing laws and
Converge based on verbal instruction regulations.
from DAR Central Office, resulting in the
overstatement of the said accounts as
(DA/CONVERGE)
of December 31, 2017.
o) Stop the practice of
recording Subsidy Income
72
Amount not yet received and require
(Million P) the Accountant to make an
DAR/ Cash Not Non-submission of the SCBAA and
IARCDSP Indicated BRS for FAPsO MDS with Account No.
adjustment restating the
2070-9015-04 balance of the account
DAR/ Consultancy 2.238 Understated Consultancy Services due balances as at January 1,
MINSAAD Services to non-inclusion of the tax portions on 2018. (DA/CONVERGE)
payments of consultancy services
Duties, 0 Overstated by the same amount due to p) Instruct Budget Officer to
Taxes and recording of the tax portions as prepare and submit the
Licenses separate Taxes, Duties and Licenses
expense
SCBAA to the Office of the
Travelling 0.039 Honoraria for the month of December Auditor for verification.
Expenses 2017 recorded as Travelling Expenses. (DAR/ARCP II/ IARCDSP)
Cash 163.432 Overstated Inter-agency Receivables
Accounts due to non-reconciliation of q) Update the recording of
balances with IAs and non-submission
liquidation reports submitted
of liquidation reports within the
prescribed period by the IAs; exert effort in
DENR/ PPE (Fund 5.201 Absence of physical inventory and non- reconciling the balances of
CBFMMP 102 and 171) submission of the RPCPPE and IIRUP the accounts with the IAs
CIP-LI and 66.469 Completed projects not reclassified to (NGAs and GOCCs); and
LI-RPs (Fund the appropriate fixed asset account Issue demand letters to
102 and 171) Land Improvement, Reforestation concerned IAs to liquidate
Projects before transferring the
accounts to Fund 101 funds utilized or refund
DENR/ Inventory 1.702 Unreconciled balance of P287,402.60 unutilized amount of
FMP between the accounting and property completed projects.
records of Region II; and failure to (DAR/ARCP II/MINSAAD)
conduct the physical count of
inventories and to submit the RPCI in r) Accountant to adhere to
FMB and Region III
Fuel, Oil & Not Non-submission of the Monthly Report
applicable laws in the proper
Lubricants Indicated of Official Travels and the Monthly recording of transactions.
Expenses Reports of Fuel Consumption. (Region (DAR/MINSAAD;
6, Iloilo) DA/SCHARMP)
Advances to 31.622 SLs not maintained in PENRO Iloilo,
Contractors thus, reconciliation with the GL
s) Request from the
controlling account not possible
Office 0.126 Absence of disclosure regarding the Implementing
Equipment existence of one unit Nikon SLR D800 Agency/Contractor/End-
and ICTE digital camera with complete users, submission of final
accessories which was not returned by report/required documents
the former Assistant Secretary, FASPS as basis for reclassifying the
and error in recording the digital camera account CIP-Land
under account Office Equipment
instead of account Information and Improvement to appropriate
Communications Technology account. (AVIAN, 2WHSMP
Equipment and BIP-RIOC401-NTCCO
DENR/ CIB-LCCA 0.151 Unreconciled book and bank balances Phase II)
INREMP
DOH/ Inventory 17.767 Non preparation of Report of Supplies
EU- PPE and Materials (RSMI); and Property
t) Exert efforts in retrieving the
HSPSPII Transfer Form (PTR) for inventory digital camera by sending
issuances and property/asset demand letters to the former
transferred, as well as non-conduct of DENR official for the return
physical inventory count of the equipment; Provide
CIP 3.990 Completed and accepted birthing necessary disclosure in the
PPE facility not yet reclassified/transferred to
Financial Statements
the appropriate PPE account
regarding the status of the
equipment, nature of prior
73
Amount period errors and amount of
(Million P) correction for each line item
16.064 Non-recording of partially and
affected. (DENR/FMP)
completed infrastructure project due to
failure to prepare inventory of PPE
AVIAN, Inventory 12.059 Non-preparation/maintenance/ u) Submit immediately the
2WHSMP PPE 26.110 submission of reports of issuances and Monthly Report of Official
and BIP- non-proper turn-over of previous Travels with the
RIOC401- Property Officer, deterring also the corresponding Reports of
NTCCO closure of the books of accounts
Phase II CIP 9.449 Non-submission of Certificate of
Fuel Consumption to the
Completion by the IAs and Acceptance Audit Team for verification of
of the end-users of completed the recorded Fuel, Oil &
constructions projects Lubricants Expenses and
MWSS – CIP 759.297 Completed projects not transferred to henceforth, within a
NWSDP, appropriate asset account and inclusion reasonable period every
UATP & of unreconciled accounts
MSSP
month thereafter; and Advise
DOTr PPE 25.673 Errors/omissions in recording of the designated drivers of the
transactions; non-conduct of physical agency to properly
count of properties; non-submission of accomplish the trip tickets.
Report on the Physical Count of (DENR/FMP)
(RPCPPE) and non-maintenance of
PPE Ledger Cards (PPELCs)
DPWH Cash and Not Non-preparation of periodic BRS v) Supply and Property Division
NRIMP Cash Indicated to consistently/regularly
PII Equivalents prepare the RSMI and PTR
POPSTIRP PPE 375.192 PPE accounts misclassified as for every issuance of
DPWH Construction in Progress – Buildings inventories and transfer of
NRIMP and Other Structures properties. (DOH/EU-
HSPSPII; DA/InFRES)
PII Intangible 61.183 Recorded in the book at zero net book
POPSTIRP Assets value for project G-07 Database
Management System, computer w) Review and analyze the cost
software due to the practice of using an of completed projects and
estimated useful life of five (5) years for make necessary
its intangible assets reclassification to the
DPWH/ CIP-IA 155,879.670 Due to various errors/omissions and appropriate PPE accounts,
RIIDP existence of unreconciled balances supported with Certificate of
RUPP amounting to P23.072 billion
PMRCIP Accounts 12,857.511 Due to non-reversion of long
Completion and Acceptance,
PIII Payable outstanding/ undocumented payables and compute for the
NRIMP PII and unrecorded direct payment to Accumulated Depreciation of
ARBP II contractors/ consultants by the FLI the six Completed Projects
FRMP Due to BIR 43.809 Unremitted taxes withheld and from the year of completion.
MMICP VI existence of negative SL balances (Various Projects)
CLLeX representing amount remitted for taxes
MPBSIP withheld without setting-up the account,
double remittance of taxes withheld and x) Chief Accountant to review
amount still for reconciliation by the the useful life of intangible
Accounting Division. assets at least each
NIA Various 136.14 Undisclosed prior period adjustments reporting period to determine
PIDP Accounts made to correct prior period errors if expectations differ from
which restated some account balances
in CY 2015 in the Notes to Financial previous estimates in
Statements contrary to Philippine Public accordance with Section 11,
Sector Accounting Standards (PPSAS) Chapter 12, Volume I of the
No. 3 GAM. (DPWH/NRIMPPII)
Accum. 7.66 Difference between the depreciation for
Depreciation the year presented in the Statement of
Financial Performance (SFP) of y) Analyze and review non-
P23.209 million and the amount of moving SL accounts
74
Amount including Payable Accounts
(Million P) and revert balances
provision of depreciation presented in
outstanding for two (2) years
the Notes to Financial Statements No. 8
– PPE of P30.872 million. The variance or more, undocumented and
indicates that an adjustment was made without valid/ actual
in the accumulated depreciation for CY claimants, pursuant to
2015 but the balance was not restated Section 98 of PD 1445 and
NIA Various 233.73 Difference between the reported EO 109 dated June 10,
PIDP Accounts amounts of funds received, fund utilized 1999; and make
and fund balance of P26.537 million,
P132.120 million and P75.076 million, representation with the
respectively, in the Statement of DBM, aside from sending
Sources and Application of Funds follow-up letters, for
(SSAF) and in the Financial immediate issuances of the
Statements; The Statement of NCAA to facilitate recording
Comparison of Budget and Actual
of direct payments made to
Amount was also not prepared contrary
to PPSAS No. 1 contractors/ consultants.
PPE 1,423.69 Non-inventory taking of PPE costing (DPWH/RIIDP, ARBP II,
P37.346 million, variance of P27.07 FRMP, MMICP VI, RUPP,
million between the result of physical CLLeX, MMPBSIP;
count and recorded PPE, non-allocation DA/InFRES)
of overhead cost of P86.875 million to
CIP and Water Systems accounts, and
absence of documents to support the z) Remit amounts due to BIR;
transfer of equipment in the amount of Analyze and reconcile
P34.164 million to NIA offices negative balances in SL
CIB-LCCA 7.89 Non-submission of documents accounts and review the
supporting the BRS, discrepancy records of taxes withheld/
between book balance and the remitted. (DPWH/ NRIMP PII
corresponding bank statements, and
non-adjustment of reconciling items.
CLLeX)
(Regions III, IV-B and XI)
aa) Accounting Division of
Central and Regional Offices
to reconcile records with
Foreign Loan Accounting
Division (FLAD) and PIDP
PMO and make necessary
adjustments in the books of
accounts and FLAD and
PMO reports. FLAD and
PMO to prepare statement of
comparison of actual
expenditures against the
approved budget per project
component. (NIA-Various
accounts)
bb) Reconcile the depreciation

amount reflected in the SFP
and the Notes to FS (NIA-
Accumulated Depreciation).
cc) Allocate management fee

and general engineering
supervision and
75
administrative cost to
various projects
implemented; and
dd) Submit Invoice Receipts and

PARs or AREs covering
equipment transferred by
CO to various NIA offices
and Property Division to
submit to Accounting
Division certified true copies
of Invoice Receipts for all
assets transferred. (NIA-
PIDP)
4.2 General Audit Recommendations
In view of the significance of the foregoing observations and the need for appropriate
actions by the Implementing Agencies and oversight agencies, we recommend the following:
4.2.1 For the Implementing Agencies
Consider project readiness and ability to implement, own and maintain the project before
submitting project design/proposal to ensure smooth implementation of the project and
avoid delay and unnecessary commitment fees and other charges;
Identify potential/actual problems and root causes of delays in project implementation

using among others, the NEDA-PMS Quarterly Alert Mechanism Report and take
necessary and appropriate measures to address the same;
Exert best efforts to comply with loan conditionalities within the prescribed period/target
date to facilitate project start-up activities;
Strictly follow existing accounting and auditing rules and regulations on the grant, utilization
and liquidation of cash advance/fund transfer to prevent accumulation of account balances;
Maintain the required accounting records and reconcile reciprocal and related accounts
including cash account and bank balances;
Conduct regular physical inventory of supplies and equipment and reconcile accounting
and property records.
4.2.2 For the Oversight Agencies
4.2.2.1 National Economic Development Authority
4.2.2.1.1 Sustain the review of necessity of projects, project design and

implementation strategies, and absorptive capacity of implementing
agencies to undertake and sustain/maintain; and
76
4.2.2.1.2 In the review of project feasibility studies, consider lessons learned
from similar projects as aid in determining project design deficiencies
and viability of the project.
4.2.2.2 Department of Finance
4.2.2.2.1 Facilitate request for loan cancellation with the Foreign Funding
Institutions (FFIs) to minimize payment of commitment fees. Ensure
that the amounts of loans contracted are necessary and can be
absorbed by the IAs;
4.2.2.2.2 Institute a system where IAs are informed of commitment fees paid by
the NG due to delays in project implementation and require explanation
from the IAs on the causes of delay; and
4.2.2.2.3 Establish effective networking among IAs, LGUs, DBM and other
concerned agencies. Facilitate compliance with loan conditions to
ensure loan effectiveness and timely completion of projects.
4.2.2.3 Department of Budget and Management
4.2.2.3.1 Ensure adequate and timely release of project funds, both loan/grant
proceeds and GOP counterpart funds;
4.2.2.3.2 Consider inclusion of debt service and commitment fees against

implementing agencies’ budget for proper accountability and reporting
of expenditures; and
4.2.2.3.3 Release immediately the Non-Cash Availment Authority to facilitate the

recording of settlement of liabilities for goods delivered and services
rendered.
4.3 Status of Implementation of Prior Years’ Audit Recommendations
Out of the 586 prior years’ (PYs) audit recommendations included in prior years’
Consolidated Annual Audit Reports of 32 National Government Agencies (NGAs),
Government Owned and Controlled Corporations (GOCCs), and Local Government Units
(LGUs), 250 or 43 percent were implemented, 188 or 32 percent were partially implemented
or implementation in-progress, 66 or 11 percent were yet to be implemented, while status of
implementation of 82 or 14 percent are still for verification, as presented in Table XXX.
77
Among the reasons cited for the partial or non-implementation of the audit
recommendations are:
 Failed biddings of projects;

 Fortuitous events like bad weather condition;
 Lack of manpower complement;
 Management’s inaction in effecting adjustments due to, among others,
incomplete turned-over documents or non-availability of documents, delayed
preparation of completion reports, unsettled billings, non-creation of committee
to conduct examination and verification of operator’s books of accounts;
 Uncorrected weaknesses in existing processes and procedures;
 Unclean database and/or not updated data/information;
 Unclear guidelines and criteria in the selection of beneficiaries;
 Weak coordination between and among parties;
 Non-reconciliation of records;
 Delayed issuance by DBM of NCAA;
 Delayed/non-reconciliation of accounts or reconciliation in process;
 Non-disposal of unserviceable properties;
 Agencies plan to seek approval from DBM to utilize unused fund balances;
 Projects terminated;
 With pending issues with the Court and/or Arbitral Tribunal;
 Concerned employees no longer in the service or cannot be located;
 On-going adjustments of subsidiary ledger;
 Contractor’s inaction;
 Non-issuance of demand letters on due and demandable accounts;
 Delayed and/or non-submission of financial statements, and other financial and
operational reports, and documentary requirements including liquidation reports
despite notices and constant follow-ups;
 Slow procurement process and Road Right of Way (ROW) issues and concerns;
 Ownership/acquisition issues and concerns;
78

2017 ODA Audit Report Highlights Commitments, Availments and Recommendations

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2017 ODA Audit Report Highlights Commitments, Availments and Recommendations

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2017

Consolidated Audit Report

2.0 HIGHLIGHTS OF THE REPORT

3.0 STATUS OF ODA-FUNDED PROJECTS

4.0 AUDIT OBSERVATIONS AND RECOMMENDATIONS

4 Ps Pantawid Pamilyang Pilipino Program

MRD Monthly Report of Disbursement

NCA Notice of Cash Allocation

1.1 Legal Basis

Official Development Assistance is governed by Republic Act (RA) No. 8182,

“An Act Excluding Official Development Assistance (ODA) from

a. It must be administered with the objective of promoting sustainable social and

b. It must be contracted with governments of foreign countries with whom the

c. There are no available comparable financial instruments in the capital market;

d. It must contain a grant element of at least twenty-five percent (25%). Grant

“The total amount of loans, credits or indebtedness incurred, and the

1.2 Scope and Sources

Table I – Status and Breakdown of Loans

1.2.3 The data are sourced from the following:

a) Status Report on NG Direct and Guaranteed Loans prepared by the Debt

c) Summary of Debt Service Expenditures - Foreign prepared by the National

d) Actual Debt Service, ODA - Funded Projects prepared by concerned GOCCs

Considering the provisions under Section 8 (b) of RA No. 8182, as amended,

Chart II – Loan Status (in billion PhP)

Cum. Undrawn Cum. Outstanding

2.1 Gross Commitments – P2.14 trillion (US$42.93 billion)

Chart III – CGLC, CLC and CNLC (in billion PhP)

2.2 Availments – P1.48 trillion (US$29.65 billion)

2.3 Undrawn Commitments – P448.85 billion (US$8.98 billion)

The undrawn commitments of P448.85 billion (US$8.98 billion) as of December

Chart IV- Schedule of Availments and Undrawn Balances by Type of Creditor

2.4 Repayments – P562.64 billion (US$11.26 billion) and Outstanding Balances –

Out of the cumulative availments of P1.48 trillion (US$29.65 billion), P562.64

Chart V - Loan Availments, Repayments and Balances by Type of Creditor

2.5 Debt Service Expenditures for the year – P66.97 billion

Commit- Guaranty Other % to

By Project Sector, 36.42 percent of debt service expenditures represent

Table IV - Debt Service Expenditures by Sector (in million PHP)

2.6 Commitment Fees for the year – P230.17 million

2.7 Audit Observations and Recommendations

The audit observations and recommendations, summarized and grouped together

Table VI - List of New ODA Loans (in billion)

During the year, commitments amounting to P19.91 billion (US$398.53 million)

Table VII - Cancelled Commitments for 2017 (in million)

The CNLC, considering cancellations as of December 31, 2017, is presented by

Table VIII- Schedule of Cumulative Net Loan Commitments by Creditor

1 ADB 86 11,535.35 576,282.95 1,187.59 59,329.82 10,347.75 516,953.13 26.78

1 CEXIM 6 790.52 39,492.61 220.60 11,020.64 569.92 28,471.97 1.47

19 SOCIETE GEN 1 12.65 632.00 0.12 5.77 12.54 626.23 0.03

20 Fortis Bank 1 7.99 399.38 - - 7.99 399.38 0.02

23 NDF 1 7.14 356.73 6.33 316.15 0.81 40.58 0.00

3.1.2 By Project Sector

3.1.3 By Implementing Agency

Table X - Schedule of Cumulative Net Loan Commitments by Implementing Agency

3.2 Availments – P1.48 trillion (US$29.65 billion)

As of December 31, 2017, cumulative availments reached P1.48 trillion (US$29.65

1 ADB 86 8,822.32 440,745.60 29.75 472.89 23,624.57 33.65

1 CEXIM 6 569.61 28,456.44 1.92 - - -

Cumulatively, the infrastructure sector is the greatest beneficiary of ODA loans at

Total Availments 29.65 1,481.47 100.00 1.41 70.21 100.00

3.2.3 By Implementing Agency

Table XIII - Cumulative and Current Year Availments by IA (in billion)

Total Availments 458 29.65 1,481.47 100.00 1.41 70.21 100.00