More than half of the projects funded through Lapu-Lapu City’s 20% Development Fund in 2025 remained unimplemented at the end of the year, leaving P379.59 million in appropriations tied up in delayed projects, the Commission on Audit (COA) said.
Only 29 of the 61 projects programmed under the fund were either ongoing or completed as of Dec. 31, 2025, resulting in an implementation rate of 47.54%.
COA attributed the delays to unfinished preliminary engineering activities, procurement requirements and other preparatory work needed before projects could proceed.
In its 2025 audit observations, COA said the delays were inconsistent with Section 3.2.3 of the DBM-DOF-DILG Joint Memorandum Circular No. 1 dated Nov. 4, 2020.
The guidelines require local government units to ensure that projects funded through the 20% Development Fund are properly planned and “procurement-and-implementation-ready” before they are included in the budget.
The unimplemented projects had total appropriations of P379,592,460.81, COA said, limiting the city’s ability to efficiently use funds intended for development projects.
The city’s implementation performance has also fluctuated in recent years. The rate was 47.37% in 2022, increased to 69.01% in 2023, fell to 44.44% in 2024 and slightly improved to 47.54% in 2025.
COA noted that 32 projects under current appropriations were not implemented in 2025, while 34 projects under continuing appropriations also remained unimplemented.
City offices cited land acquisition, machinery and equipment procurement and infrastructure preparations as among the factors behind the delays.
The Project Development and Monitoring Office told COA that the process of acquiring properties had left one project still in the surveying stage.
Some projects under continuing appropriations were also pending because of alignment issues with the Department of Public Works and Highways. Other properties were assessed as not requiring compensation after no owners or structures were identified.
Procurement issues also contributed to the backlog.
The City General Services Office reported that only one of four machinery and equipment items under current appropriations was ongoing, involving the Lapu-Lapu City Hospital. The remaining items under the City Engineer’s Office had no purchase requests filed.
Of 22 machinery and equipment items under continuing appropriations, only the acquisition of a digital portable X-ray machine for Sta. Rosa Hospital had reached the bid-opening stage in 2026.
The remaining items either had no purchase requests or had their requests canceled.
Infrastructure projects made up another significant portion of the unimplemented appropriations.
The City Engineer’s Office reported that 27 infrastructure projects under current appropriations, with a combined allocation of P141.34 million, had yet to be implemented.
Fourteen projects worth P97 million were still undergoing preparation of their Program of Works and Estimates, plans or detailed engineering requirements.
Two projects worth P2.34 million had been reverted and charged to electrical expenses, while three projects worth P5.5 million had already reached the bidding stage.
COA also identified one P2-million project affected by lot issues and another P18-million project donated to the Armed Forces of the Philippines Visayas Command, Navy and Air Force.
Three projects worth P4.5 million had been awarded but were still awaiting processing of their Notices to Proceed. Another P3-million project needed to be rebid, while two projects worth P9 million had unspecified status.
COA said only about four of the infrastructure projects had reached or completed the procurement process.
“Critical preliminary activities, namely, the preparation of plans and drawings, POWE, and detailed engineering, were not accomplished prior to budget inclusion,” the auditors said.
COA said this indicated that some projects were included in the 2025 20% Development Fund despite not being ready for procurement and implementation.
For projects funded through continuing appropriations, one had been completed, three had either been reverted or were scheduled for reversion, while two remained under the finalization of their terms of reference and detailed engineering or drawings.
COA also found that some projects reported as reverted had appeared with the same status in the previous year’s Statement of Allotments, Obligations and Balances but continued to be included under continuing appropriations.
The auditors said delays in preliminary engineering work, procurement documentation and the failure to initiate or the delayed initiation of procurement activities resulted in an “accumulation of unimplemented projects.”
The backlog, COA said, constrained the city’s use of its 20% Development Fund and pointed to weaknesses in project planning and readiness assessment.
Under the same joint memorandum circular, COA said responsibility for ensuring that development projects funded through the 20% Development Fund comply with the guidelines and contribute to the city’s socioeconomic targets rests with the local chief executive and other officials concerned.
COA recommended that the City Planning and Development Coordinator take a comprehensive and realistic approach in identifying priority projects under the Local Development Investment Program.
The auditors said only projects that are already procurement- and implementation-ready should be included in the Annual Investment Program and annual budget.
COA also recommended that the City Planning and Development Coordinator, together with the implementing office, review projects that can no longer be implemented and propose the reprogramming, rationalization or reprioritization of funds for other essential projects.
The OIC-City Engineer, Project Monitoring and Development Officer and OIC-City General Services Officer were also urged to fast-track preparatory requirements for delayed projects and establish systems to ensure that future projects are ready for implementation.
When sought for comment, the Lapu-Lapu City Government said it had yet to receive a copy of the audit report.
Photo courtesy of Wikipedia
Comments