The Asian Development Bank (ADB) on Sep. 2 criticised the Philippine government over a failed US$167 million airport project.

The government had planned improvements for major regional airports and minor upgrades elsewhere under the 1998 project.

But the bank said it had cut off funding for the initiative in 2005, and blamed governance levels.

"There was an overall lack of good governance, although no direct allegations of corruption were reported," the bank said.

Problems included the length of time taken to acquire land and relocate affected residents, together with civil works and equipment difficulties, it said.

The bank had pledged US$93 million in loans at market rates, equivalent to nearly one-third of its average annual lending to the Philippines of US$290 million.

The bank said inadequate domestic Philippine airports limited "direct internal and external trade links and constrains increased regional investment and development."

The project would still be beneficial for the Philippines, the bank said, but added it had no plans to resume financing it.