Statement On The Second National Roads Improvement And Management Program (NRIMP2) in the Philippines

Contact in Washington, DC:
Elisabeth Mealey (emealey@worldbank.org)
+1-202-458-4475
Contact in Singapore:
Peter Stephens (pstephens1@worldbank.org)
+ 65-6324-4612
Contact in Manila:
Leonora Gonzales (lgonzales@worldbank.org)
+632-917-3003

More information The World Bank’s internal investigation process

The National Road Improvement and Management Program is the Government of the Philippines’ main tool for modernizing the country’s road management–through stronger business processes and reformed institutions for financing and managing roads. 

During the first phase of the program (2000-2007), the Government made major progress toward putting in place a modern, transparent and accountable national road management system. Some 90 percent of the project goals were achieved: 382 kilometers of roads were built or upgraded in provinces across the Philippines and a further 975 kilometers of existing roads resurfaced and maintained. As a result, people throughout the Philippines have benefited through a more efficient and transparent road system, improved access to social services, lower transport costs and reduced traveling times.

In 2003, however, signs of procurement problems in the first phase of the program were identified. Between 2003 and 2006, the World Bank rejected two large road contracts in three successive rounds of bidding because of strong signs of collusion and excessive pricing. The World Bank team and other stakeholders brought this information to the World Bank’s internal investigations unit, the Department of Institutional Integrity (INT) which launched an investigation of the project. Investigative findings were discussed with the Philippine’s relevant authorities who requested that the investigation proceed.

The rejected contracts, worth around $33million, representing about 10 percent of the total project cost, were never financed by the World Bank.

Building on the experience of the first phase and the lessons learned from the INT investigation, and in line with the World Bank’s governance and anti-corruption strategy, the Government and World Bank team jointly developed stringent anti-corruption measures for the second phase of the Program. The package of measures incorporated in the project design includes:

• Independent procurement assessment and technical audit, that strengthens transparency of the bidding process;
• Enhanced processes for procurement, financial management, internal controls and audits of the road management agencies; and
• Inclusion of a new and innovative coalition of citizen and road user groups, called “Road Watch” in the project management set-up.  Road Watch will monitor project implementation and procurement and issue periodic report cards on the performance of the road sector.

With the INT report now completed, the discussion of the Phase Two project at the Board has been deferred until the Government and the Board members receive the information they have requested.

The World Bank continues to support the Philippines and remains actively engaged with Government and civil society on strengthening governance and fighting corruption.