Politics · Philippines Bureau
Philippines questioned on P295M in unused transport project fees
Senate President Sherwin Gatchalian has raised concerns over millions in commitment fees paid for major transport infrastructure projects that remain delayed or unable to secure funding from international development banks.
LSN Philippines ·
MANILA — Senate President Sherwin Gatchalian flagged P295 million in commitment fees paid by the government for large-scale transport projects that have faced extended delays or failed to obtain loans from multilateral development institutions.
Gatchalian raised the issue during a Senate finance subcommittee hearing on the Department of Transportation's budget allocation on Friday, questioning the expenditure on projects that have not progressed as planned.
The commitment fees represent payments made to development banks to hold financing in reserve for infrastructure initiatives. However, with several projects stalled or unable to meet funding requirements, the senator sought clarification on how these funds have been utilized and the timeline for project completion.
The Department of Transportation has overseen numerous foreign-assisted transport initiatives aimed at improving the country's infrastructure network. The hearing underscored ongoing concerns about project implementation and the efficiency of government spending on major transport development programs.
The Senate finance subcommittee's examination of the transportation budget reflects broader legislative scrutiny of infrastructure project execution and accountability for public funds committed to development initiatives.