Cebu City hospital: COA flags ₱1.13B spent on delayed CCMC project

CEBU CITY, Philippines — The Commission on Audit (COA) has flagged the Cebu City Government’s implementation of the long-delayed Cebu City Medical Center (CCMC) project, after finding that ₱1.13 billion had already been spent on the project despite major engineering deficiencies, contract issues, and prolonged delays that prevented auditors from completing a full technical evaluation.

The findings add another layer of scrutiny to one of the city’s largest and longest-running infrastructure projects. These are contained in COA’s 2025 Annual Audit Report on the Cebu City Government.

The Cebu City hospital project has remained unfinished more than a decade after the 2013 Bohol earthquake rendered the old hospital building unsafe.

COA said that deficiencies in detailed engineering activities, inadequately substantiated contract time extensions, and the failure to submit required technical documents contributed to “significant implementation delays.”

Engineering, documentation lapses

It also led to contract terminations in some phases and kept state auditors from fully inspecting and doing a technical evaluation of portions of the project.

READ FOR BACKGROUND: CCMC ‘most corrupt,’ Tomas says; Council seeks project audit

The audit covered five infrastructure contracts comprising the proposed new CCMC, which had accumulated ₱1,130,186,007.55 in project costs as of Dec. 31, 2025, against a total contract value of ₱1,904,225,845.36.

The observations come as the Archival administration pushes to complete the hospital by the end of 2026 and after city officials themselves acknowledged lingering concerns over the quality and management of previous construction phases.

Cebu City hospital project issues

In its report, COA said that the Department of Engineering and Public Works (DEPW) failed to submit several required documents needed for a proper technical audit. This prevented auditors from completing engineering evaluations required under government regulations.

Among the deficiencies auditors identified were inadequate detailed engineering activities before project implementation, insufficient justification for contract time extensions, prolonged suspensions of construction works, and missing technical records for several project phases.

The audit cited inconsistencies with Presidential Decree No. 1870, the Government Procurement Reform Act (Republic Act No. 9184), and COA Circular No. 2009-001, which prescribes documentary requirements for infrastructure audits.

COA asks for technical documents

For Phases I, II, as well as the interior masonry, mechanical, electrical, plumbing and fire protection works on the fifth and sixth floors, COA directed the DEPW to submit all lacking technical documents to facilitate the completion of the audit.

As for Phase III, auditors ordered the city to justify the reported 574-day suspension of the project and recover any overpayments if warranted.

Referring to Phase IV, COA required city engineers to explain excess and non-bill of quantities (BOQ) items, justify corresponding payments, and account for the reported non-functionality of installed systems as well as the absence of testing and commissioning.

How did implementation problems slip through?

Auditors also instructed the city to explain why implementation problems slipped through the detailed engineering stage undetected.

They further asked the city to submit an approved master plan clearly identifying work assignments for each construction phase. They asked for the detailed Program of Works and Estimates showing how activities were distributed across the hospital’s different sections.

COA further recommended evaluating unfinished contracts for possible termination or takeover through the city’s Contract Termination Review Committee.

Finally, the commission urged the city government to ensure that future infrastructure projects undergo adequate detailed engineering. All required documents must be submitted on time to allow proper audit and technical evaluation.

Findings echo recent concerns

The audit findings closely mirror concerns Cebu City officials recently raised over the hospital’s prolonged construction.

Last week, Mayor Nestor Archival said he supports hiring an independent project management consultant to oversee the remaining works.

He said the project has become too complicated after passing through multiple contractors over the past decade.

Archival also disclosed that recent inspections found portions of previous construction that may not satisfy technical standards, particularly involving the building’s mechanical, electrical, plumbing and fire protection systems. These still require extensive testing before completion can proceed.

Council orders investigation

The mayor said that city engineers have already instructed the current contractor to conduct technical tests. Results will determine whether the city needs to replace previously installed systems.

The contractor also received an additional 145 days to complete portions of the project because of these technical requirements.

The COA observations also came days after the Cebu City Council ordered an investigation into the project’s repeated delays.

During last week’s regular session, Vice Mayor Tomas Osmeña described the reconstruction as the city’s “most corrupt” infrastructure project and questioned the absence of a complete program of works despite multiple contractors handling different phases over the years.

Cebu City hospital needs professional oversight

Councilor David “Dave” Tumulak likewise urged the city government to hire an independent project management consultant, saying professional oversight has become necessary to coordinate contractors, monitor schedules, ensure quality control, and protect taxpayers’ money.

The council subsequently referred the matter to its committees on infrastructure, health, and laws for further inquiry.

The reconstruction of the new CCMC began after the magnitude 7.2 Bohol earthquake in October 2013 rendered the original hospital building structurally unsafe.

More than a decade unfinished

Since then, successive city administrations have allocated billions of pesos for the project.

But changing contractors, procurement issues, contract disputes, engineering deficiencies, missing technical documents, and administrative transitions repeatedly stalled completion.

The city resumed Phase 5 construction earlier this year and aims to complete the building by December 2026, with full hospital operations targeted in early 2027.

Once completed, the expanded facility will add 400 to 500 hospital beds. That will significantly increase Cebu City’s capacity to provide tertiary healthcare services.

Your subscription could not be saved. Please try again.

Your subscription has been successful.