Senator Joel Villanueva raised concerns about the Department of Transportation’s low loan utilization rate and project delays, questioning the need for foreign loans when the agency does not appear ready or capable of implementing the projects.
As senior vice chairperson of the Senate Committee on Finance, Villanueva pointed out the significant gap between loans granted and actual disbursements.
The agency currently has an outstanding loan portfolio of $13.78 billion from 26 foreign loans, yet its loan utilization rate is only 33.8 percent, he said.
This inefficiency has resulted in high commitment fees, which Villanueva highlighted by asking: “Why are we taking these loans if we are not ready or do not have the capacity to implement these projects?”
He said delays in major infrastructure projects, especially the large railway initiatives, not only waste resources but also impose a financial burden on the government.
Villanueva noted the South Commuter Railway Project incurred the highest commitment fee in 2023, amounting to $2.41 million.
“This $2.41 million has gone to waste, while the public still hasn’t seen any tangible progress on these projects,” Villanueva said.
Commitment fees arise when the government fails to draw down funds from foreign loans as expected, the senator explained.
