SENATE President Win Gatchalian on Wednesday called for a comprehensive audit of the Department of Transportation’s (DOTr) infrastructure and technical support projects, citing delays in major transport initiatives and the government’s payment of P139 million in commitment fees last year.
Gatchalian said the DOTr should identify nonessential foreign-funded projects and cancel unused official development assistance (ODA) loans to prevent taxpayers from shouldering unnecessary borrowing costs.
He raised the concern during the Senate hearing on the proposed 2027 budget of the DOTr and its attached agencies.
Projects that Gatchalian flagged included the Cebu Bus Rapid Transit Project, Davao Public Transport Modernization Project, EDSA Greenways Project A, and the Facility for Accelerating Studies for Infrastructure.
“If an ODA project is no longer necessary, let us not take out a loan, as the cost will just be passed on to us. I suggest we audit the projects,” Gatchalian said.
Commitment fees are charges imposed by lenders on undisbursed loans, typically to keep approved credit facilities available to borrowers. Such fees can add to government expenses when project implementation is delayed.
Gatchalian stressed that the DOTr should ensure that foreign-funded projects remain necessary and are implemented within reasonable timelines, rather than allowing unused loans to generate additional costs.
He said savings from commitment fees and unnecessary borrowing could instead be allocated to urgent transport programs that directly benefit commuters.
“Every peso saved from commitment fees and unnecessary borrowing can be redirected toward urgent transport programs that directly benefit Filipino commuters,” Gatchalian said.
The proposed audit would cover the DOTr’s infrastructure and technical support projects to identify delayed, unnecessary, or underutilized foreign-funded initiatives and reduce the financial burden of the government.