National ID Delays Worsen as BSP Cancels Supplier Contract

The long-awaited Philippine National ID project has hit another major roadblock. The Bangko Sentral ng Pilipinas (BSP) has terminated its contract with AllCard Inc. (ACI), the company responsible for producing physical National IDs under the Philippine Identification System (PhilSys). The move raises concerns about further delays in delivering the IDs to the millions of Filipinos who have registered but have yet to receive their physical cards.

Also read: 7 Valid IDs in the Philippines You Should Have Right Now as an Adult

Expect longer Philippine National ID delays

The decision comes after ACI failed to meet crucial deadlines, including the timely delivery of materials needed to produce the IDs. BSP Governor Eli Remolona confirmed that the central bank is now seeking arbitration for damages while also actively searching for a new supplier to continue the project. ACI, however, is contesting the termination and has filed a motion for reconsideration, claiming it has been in "full compliance" with its contractual obligations.

The termination could have significant consequences. According to ACI, around 60 million already-produced National IDs may go to waste. The project, initially intended to streamline identity verification across the country, now faces greater uncertainty, with 36 million Filipinos still waiting to receive their physical cards.

In response to the growing frustration over the delays, the Philippine Statistics Authority (PSA) has assured the public that alternative ID formats, such as the ePhilID and the digital National ID, remain available. These can be accessed through registration centres or via the recently launched eGOV mobile app. Both versions are legally recognized and can be used for official transactions.

As of August 2024, more than 89 million Filipinos have registered for PhilSys, yet only 53 million physical IDs have been delivered. The government initially promised a six-month delivery window after registration, but some have been waiting years for their cards. The delays are partly due to issues with ACI, which had already accumulated penalties exceeding 10% of the contract price due to machine downtime and late deliveries.

Also read: How to Claim Printed ePhilID: A Step-by-Step Guide

While the government continues to push for digital alternatives, the question remains: will the switch to a new supplier speed up the process, or will Filipinos face even longer waits for their National IDs? For now, the digital National ID serves as the best option for those needing valid identification as the country waits for a resolution to the ongoing delays.

All image credit goes to PSA Philippine Identification System | Official Facebook page