Several flood control projects in Metro Manila have been delayed due to the misuse of nearly three-quarters of a loan from the World Bank issued seven years ago.
According to an implementation status and financial report released on September 30, only $57.31 million, or roughly 27% of the $207.6 million World Bank loan, has been utilized for the project.
This has raised concerns among authorities as the loan is set to expire on November 30 of this year.
Should this issue remain unresolved, the loan may require restructuring, or an extension of the closing date could be requested.
Despite the delays, the overall risk rating of the project was raised from ‘moderate’ to ‘substantial.’
The World Bank noted that significant progress has been made, with 15 out of 34 pumping stations upgraded, and four new stations currently under construction.