DOTr’s disbursement up, projects threatened by budget cut

In a television interview over ANC, DOTr Secretary Arthur Tugade said the department’s disbursement rate has reached 44 percent as of October 2019, as compared to 27.73 percent in 2015, 41.58 percent in 2016, 32.55 percent in 2017, and 39.98 percent in 2018 –an increase of over 16 percent in the last five years. (File Photo: Department of Transportation – Philippines/Facebook)

MANILA — The Department of Transportation (DOTr) on Wednesday reported an increase in its disbursement rate in 2019, and warned that slashing its next year’s budget by PHP60 billion would put its projects in jeopardy for the next two and a half years.

In a television interview over ANC, DOTr Secretary Arthur Tugade said the department’s disbursement rate has reached 44 percent as of October 2019, as compared to 27.73 percent in 2015, 41.58 percent in 2016, 32.55 percent in 2017, and 39.98 percent in 2018 –an increase of over 16 percent in the last five years.

“We have an obligated amount of more than 80 percent. Of this 80 percent, 44 percent have actually been disbursed for 2019,” Tugade said.

Disbursement is defined by the Department of Budget and Management (DBM) as the actual withdrawal of cash from the Bureau of Treasury due to encashment of checks issued by government agencies, compared to obligation which is defined as liabilities legally incurred and yet to be paid by the government.

Following calls by some lawmakers to slash the DOTr’s budget by PHP60 billion due to low a disbursement rate, Tugade said such a move was not a “very accurate approach.”

“Because, as I have explained, isama mo naman ‘yung mga virtual na natapos na yung mga proyekto (you should include those virtually disbursed, or projects that have already been completed),” Tugade said.

Disbursement, he said, does not reflect the actual accomplishments of the department since it excludes situations where projects have been completed but have yet to be paid in full.

“Tapos na ‘yung Panglao airport, ginagamit na ‘yung airport, pero hindi pa ho bayad ng kabuuan. Bakit? Kasi ho para bayaran, meron ho mga progress billings at meron mga vina-validate na number (The Panglao airport is already completed, it is already operational but it is not yet paid in full. Why? Because there are progress billings and there are numbers to be validated before this will be paid),” Tugade said.

When asked why some completed projects are yet to be fully disbursed or paid, Tugade said the process of disbursement depended on billings submitted by project contractors which were subject to further review.

“Before you actually disburse, there actually has to be billing submitted. And you just don’t accept the billings hook, line, and sinker. You have to review this, rerepasuhin mo (verify it),” Tugade said.

Tugade further said reducing the DOTr’s budget for any reason would simply endanger its projects for the remaining years of the Duterte administration.

“How can we operate on projects which we have forecasted and there is no budget?,” he said.

On President Rodrigo Duterte’s recent call to expedite prerequisites of project construction through the immediate demolition of acquired properties, Tugade said the order will be followed by the DOTr but they may still be limited by “realities on the ground.”

“Kapag nagdala ka ng bulldozer dun, maglalagay sila ng tao na nakaharang dun bago mo bulldozering (If you bring a bulldozer, people might simply lie down and block its way). So, there are delays and there are hiccups along the way,” he added.

Last week, senators suggested cuts in the proposed PHP147-billion budget of the DOTr for 2020 due to low disbursement rate, and for the amount to be distributed among other government agencies instead.

Opposition senator and Senate Minority Leader Frank Drilon also claimed that the “Build, Build, Build” program of the Duterte administration was a massive failure, but was belied by Tugade citing the DOTr’s accelerated spending and several completed and ongoing projects under the current administration.