SENATOR Joel Villanueva has raised concerns about the Department of Transportation’s (DOTr) low loan utilization rate during the deliberation of the agency’s proposed 2025 budget.
Villanueva cited figures from the National Economic Development Authority (NEDA) which project a total of P2.3 trillion in funding required to complete 69 infrastructure projects from 2024 onwards. Of these projects, DOTr has the highest budgetary requirement at around P1.2 trillion. However, the 2023 Official Development Assistance (ODA) report reveals that DOTr has 26 loans with a net commitment of $13.78 million (equivalent to P813.86 million), but only $1.728 million (P102.06 million) has been disbursed, resulting in a 33.8% utilization rate.
“If these figures are accurate, we want to understand why the DOTr has such a low loan utilization rate,” Villanueva questioned.
Senator Joseph Victor “JV” Ejercito, in response, explained that the majority of these foreign-assisted projects are railway projects, including the North-South Commuter Line and the Metro Manila Subway System. These projects, which began in 2020-2021, have only recently reached full implementation. Ejercito added that the loan duration extends until 2027-2028, contributing to the low utilization rate.
