Cebu City Mayor Nestor Archival remained confident that the long-delayed Cebu City Medical Center (CCMC) will be completed by December 2026 despite new audit findings citing construction deficiencies, project delays, and over P1 billion in government spending.
Archival acknowledged the Commission on Audit (COA) findings but said most of the issues identified were inherited from previous administrations. He stressed that the city’s priority is now to complete the public hospital project.
“The report is correct, but these are issues from previous years. Our focus now is to finish the project,” Archival said during a press conference on Wednesday, July 15.
His statement came after COA’s 2025 Annual Audit Report showed that the city had spent P1.13 billion on the CCMC project, although only one of the five infrastructure phases had been completed by the end of 2025.
COA attributed the delays to repeated design revisions, insufficient engineering preparations, project management issues, terminated contracts, and incomplete documents that prevented auditors from fully assessing nearly P897.34 million in project expenditures.
Archival said ongoing construction also uncovered substandard works from previous contractors, adding another challenge to the project’s completion.
He said the city tapped Dakay Construction about two months ago to continue the remaining works under the existing contract. However, consultants later discovered portions of the previous construction that failed to meet required standards.
The mayor said the city has already informed the Department of Health (DOH) and COA regarding the findings.
He explained that the city cannot immediately remove the defective portions, as these must first undergo testing and documentation before any demolition or corrective action is undertaken.
“The contractor cannot immediately proceed because the defective works have to be tested first. Once the testing is completed, we will report the findings to the DOH and COA before removing them,” Archival said.
He added that the city has already notified the contractor responsible for the substandard work and directed it to address the deficiencies.
Because of the additional testing and documentation process, Archival said the project’s completion timeline was extended by about 45 days.
The mayor said the civil works, which were earlier targeted for completion by October, are now expected to be finished by December 2026.
However, he clarified that the hospital will not immediately begin operations once construction is completed.
The installation of medical equipment and hospital facilities is expected to start in the first quarter of 2027.
“By December, the building should be finished. The installation of equipment will follow in the first quarter next year,” he said.
Archival said the construction team has also adjusted its work strategy to reduce disruptions while allowing the hospital’s existing operations to continue.
He directed workers to prioritize the fourth floor before proceeding downward, with plans to eventually vacate and complete the third floor where some hospital operations remain.
The phased construction approach is intended to allow work to continue while addressing unfinished sections of the building.
COA’s audit report traced the CCMC delays to several engineering and administrative issues that accumulated over more than a decade.
The project was initially planned as a 10-story hospital but was later redesigned into a six-story structure after construction had already started.
The changes resulted in contract modifications, suspension orders, redesigns, and additional engineering requirements.
Auditors also flagged terminated contracts, lengthy work suspensions, and incomplete building systems, including mechanical and air-conditioning components that lacked required testing.
COA also noted that the city’s engineering department failed to provide key documents covering P897.34 million in construction expenses, preventing auditors from determining whether the costs were properly supported.
The audit body directed the city government to submit the lacking documents, justify prolonged suspension periods, recover any validated overpayments, and improve project planning and engineering oversight.
Despite the findings, Archival said the city remains committed to completing the CCMC project.
“We are still on track. Our intention is to finish the project,” he said.
Photo courtesy of Philippine News Agency
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