The Commission on Audit (COA) has flagged the Department of Transportation (DOTr) for significant delays in the ₱175-billion Philippine National Railways (PNR) South Long-Haul Project, which has shown minimal progress over the past two years ending December 31, 2024.
The 639-kilometer railway system—intended to connect Manila to Legazpi, Matnog, and Batangas City—remains stalled, with COA reporting that only Project Management Consultancy (PMC) and Loan Acquisition registered actual accomplishment. The project posted a total weighted negative slippage of 6.17%.
COA said that “there is no ongoing funding for the remaining project components because China EXIM, the foreign lending institution, has yet to respond to their application for the design and construction of the project. Meanwhile, the management is currently exploring other financing partners for the continuation of the project.”
According to DOTr, right-of-way activities will continue since the alignment is already fixed and studies have been completed. The agency also expects the project to undergo restructuring due to increased construction and ROW costs, and delays in implementation.
While acknowledging the funding uncertainty, COA noted that “the project progressed despite the lack of funds for certain components.” It recommended that the DOTr direct the project management office to regularly update auditors on efforts to secure new financing.
The DOTr assured COA that pre-construction works remain active in preparation for the Design and Build Contractor, regardless of financing changes.