CCMC still unfinished after nearly a decade, P2B expenditure

Delos Santos questiones transparency of funds, urges Acting Mayor Garcia to halt venturing into another bidding

CCMC file photo.

CEBU CITY, Philippines – Delays and unfinished projects have sadly now become a signature issue for Cebu City, as shown by one of its long-standing projects, the Cebu City Medical Center (CCMC).

The city has grappled with a recurring challenge — projects began with promise, only to languish incomplete.

The CCMC, which has been under construction for nearly nine years and has seen an expenditure of approximately P2 billion, still remains unfinished with only three floors partially operational.

In a privilege speech during the council’s regular session on June 26, City Councilor Mary Ann Delos Santos shed light on the prolonged and troubled construction of the Cebu City Medical Center.

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Delos Santos began by expressing her cautious optimism following Acting Mayor Raymond Alvin Garcia’s recent commitment to expedite the CCMC’s completion.

“I want to express my jubilation at the recent pronouncement of the acting mayor regarding the continuation of the CCMC construction. I am humbled by the gesture because I, too, was deeply involved with the conceptualization of the hospital,” she said.

CCMC starts construction in 2015

She detailed the project’s turbulent history, beginning with its launch in 2015 after the original CCMC building was demolished after the 2013 earthquake.

According to Delos Santos, C.E. Padilla Construction Inc. (Cepci) was awarded the first phase of the CCMC building contract for P514.97 million. The construction initially progressed smoothly; however, it soon encountered immediate challenges.

In 2016, Acting Mayor Margot Osmeña ordered the suspension of the construction work on the new CCMC after it was discovered that the building lacked building permits, mechanical and electrical permits, and even a barangay clearance, as revealed by Josefa Ylanan, the former head of the Office of the Building Official.

“Then she [Margot Osmeña] said the construction will continue as soon as the lapses are resolved. Also in 2016, when Mayor Tommy Osmeña assumed office, he said, “If only to prevent further delays, he would rather stick it out with the current contractor tasked to finish the new CCMC than look for another,’” Delos Santos reiterated.

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Former Mayor Tommy Osmeña’s tenure saw attempts to salvage the project despite a 23 percent slippage by the contractor. He resisted terminating CE Padilla’s contract to avoid further delays.

Delos Santos quoted the former mayor, “If we are going to cancel the project now and rebuild the whole thing, it will take years to be completed. So, we’re trying to save what we have now because remember, this is not a road. If there’s a slippage in road construction, you can always stop it. But this is a hospital and there are many components there.”

The project saw multiple budget proposals and delays, with additional funding of 300 million pesos in 2017 and a 500 million peso budget in 2020 that was temporarily halted by then-Vice Mayor Michael Rama.

Rama, now the city mayor, who has recently been preventively suspended, had been actively seeking private donations. Delos Santos said that the donations reportedly secured commitments of nearly one billion pesos from both Filipino and Chinese business entities.

Delos Santos questions transparency of funds, multiple delays in completion, contractors

Despite these efforts, she highlighted ongoing concerns regarding transparency and oversight.

The CCMC building underwent several phases: Charlz Construction handled Phase 1.1, Cepci managed Phases 1 and 2, Garay Philwide Builders oversaw Phase 3, and M.E. Sicat Construction was responsible for Phase 4.

The contract with M.E. Sicat Construction was terminated in 2022 due to an 11.72 percent negative slippage, said the councilor.

She questioned the current status of the project, the lack of council involvement in the termination and subsequent contractor negotiations, and the absence of a clear, detailed plan for completion.

“Is there a new contractor for the hospital without the council’s participation?” she asked.

According to Delos Santos, last November 16, a report indicated that the now-suspended City Administrator Rosell had announced a mutual agreement between the city and the contractor to terminate the hospital’s construction contract.

The city government was reported to be in the process of calculating the payment owed to the contractor for the work completed so far.

Delos Santos raised questions about whether the payment had been finalized and the council’s role in the contract termination, considering its authorization of the mayor to engage with M.E. Sicat Construction.

She recalled that during the city flag-raising on December 18, Mayor Rama had vowed to complete the construction of CCMC by February 2024 at no cost to the city government, stating that they already had the funds, which did not originate from City Hall.

Rama wants to finish CCMC reconstruction without a ‘single centavo’ spent from City Hall coffers

Delos Santos did not mince words regarding the need for rigorous oversight.

“Mr. Chair, how will the city monitor and assess its progress if there are no spelled-out terms of reference for its construction? If it runs not smoothly, where lies the transparency and accountability?” she asked.

Delos Santos urges Acting Mayor to halt plan for another bidding

Moreover, Delos Santos said the city has 700 million pesos in savings from the 1 billion pesos initially awarded to M.E. Sicat Construction, whose contract was terminated in 2022 due to delays. These savings are now available for the CCMC project.

Delos Santos noted that the acting mayor wants to expedite CCMC construction but cautioned against ignoring rules, processes, and proper monitoring. She emphasized that the council needs to understand the current status and accomplishments of the project, based on Rama’s calendar, before proceeding with the 700 million pesos.

He questioned whether a contractor is already working on the CCMC and if the acting mayor’s promise to complete the construction by February 2024 at no city cost requires a memorandum of agreement or council authorization to accept donations.

Delos Santos also raised concerns about reconciling the acting mayor’s plans with Mayor Mike Rama’s statement that funds from private companies are already available, questioning the possibility of having two contractors working on the same building simultaneously.

“Let me assure the acting mayor of my support, Mr. Chair, however, the council has to be abreast first of the current status, inventory of accomplishments of the construction based on the calendar of activities of then-Mayor Michael Rama before embarking on another transaction of 700 million so as not to complicate its implementation,” Delos Santos said.

She added, “If the acting mayor will push through with his plans for CCMC using the amount of 700 million, then how do you reconcile with the statement of Mayor Mike Rama that the city already has the money that did not come from City Hall?”

Resolving clauses

In her speech, Delos Santos outlined three resolving clauses aimed at addressing the ongoing issues with the Cebu City Medical Center (CCMC) construction:

Firstly, she proposed that the Department of Engineering and Public Works (DEPW) be formally requested to provide the council with a comprehensive report within 15 days. The report should detail the progress made since the project’s inception in 2015, offering a clear account of the construction phases completed thus far.

Secondly, Delos Santos recommended that the office of the budget officer furnish the council with a detailed financial report. The report would include a thorough breakdown of all expenditures related to the CCMC construction, encompassing funds allocated by the city government as well as contributions from various donors.

Lastly, she urged the acting mayor to put on hold his plan of using P700 million savings in venturing into another bidding process until everything about CCMC construction is well explained.

Meanwhile, in a corollary motion, Councilor Nestor Archival called for an executive session with the Department of Engineering and Public Works (DEPW), and the Cebu Medical Society to provide updates and detailed plans for the CCMC.