Lapu-Lapu City fails to implement: P379.6 million project backlogs – COA

CEBU, Philippines —  The Commission on Audit (COA) flagged P379.59 million worth of projects in Lapu-Lapu City that remained unimplemented as of December 31, 2025, citing delays in preliminary engineering activities and the finalization of procurement documents.

In its 2025 audit report, COA said the delays violated Section 3.2.3 of the DBM-DOF-DILG Joint Memorandum Circular (JMC) No. 1 dated November 4, 2020, which requires local government units to ensure that projects funded through the 20% Development Fund are well-planned and “procurement-and-implementation-ready.”

The finding covered projects with total appropriations of P379,592,460.81, which COA said remained unimplemented and consequently constrained the city’s ability to efficiently utilize its 20% Development Fund.

An analysis of the city’s Statement of Allotments, Obligations and Balances as of December 31, 2025 showed that only 29 of the 61 projects programmed for the year had been implemented, either ongoing or completed, representing an implementation rate of 47.54%.

COA noted that the city’s project implementation performance had also been inconsistent over the past four years. The implementation rate was 47.37% in 2022, rose to 69.01% in 2023, then dropped to 44.44% in 2024 before slightly increasing to 47.54% in 2025.

The state auditors said the 2025 figure remained below 50%, reflecting inconsistent project implementation performance over the four-year period.

According to COA, 32 projects under current appropriations were not implemented, while another 34 projects remained unimplemented under continuing appropriations for 2025.

Responses from the concerned city offices identified several factors behind the delays, including land acquisition, machinery and equipment procurement, and infrastructure project preparations.

On land acquisition, the Project Development and Monitoring Office told COA that the rigorous process involved in acquiring properties had left one project still in the surveying stage. For continuing-appropriation projects, some areas remained pending because of alignment issues with the Department of Public Works and Highways, while other properties were later assessed as not requiring compensation because no owners or structures were identified.

Procurement of machinery and equipment also contributed to the delays. The City General Services Office reported that of four items under current appropriations, only one was ongoing, involving the Lapu-Lapu City Hospital.

The remaining items from the City Engineer’s Office had no purchase requests filed. Of 22 items under continuing appropriations programmed for acquisition, only the purchase of one digital portable X-ray machine for Sta. Rosa Hospital had progressed to a bid opening in 2026, while the remaining items either had no purchase requests or had their requests canceled.

Infrastructure projects accounted for another significant portion of the unimplemented appropriations.

Based on the City Engineer’s Office response, 27 infrastructure projects under current appropriations, with a combined budget allocation of P141.34 million, had yet to be implemented.

Of these, 14 projects worth P97 million were still at the stage of preparing their Program of Works and Estimates, plans or detailed engineering requirements.

Another two projects worth P2.34 million had been reverted and charged to electrical expenses, while three projects worth P5.5 million were for bidding.

COA also listed one project worth P2 million with lot issues; one worth P18 million donated to the Armed Forces of the Philippines Visayas Command, Navy and Air Force; three projects worth P4.5 million that had been awarded but were still awaiting processing of their Notices to Proceed; one project worth P3 million to be rebid; and two projects worth P9 million with unspecified status.

COA said only about four of these 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, indicating that the projects funded under the 2025 20% Development Fund were not procurement- and implementation-ready when included in the budget.

For continuing projects, COA noted that one project 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.

The auditors also noted 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.

COA said the delays in preliminary engineering work, procurement documentation and the non-initiation or delayed initiation of procurement activities resulted in an “accumulation of unimplemented projects.”

The backlog, according to the auditors, constrained the city’s ability to efficiently use its 20% Development Fund and highlighted weaknesses in project planning and readiness assessment.

Under Section 4 of the same JMC, COA said responsibility and accountability for ensuring that development projects funded under the 20% Development Fund comply with the guidelines and contribute to the city’s socio-economic targets rest with the local chief executive and other officials concerned.

To address the issue, COA recommended that the City Planning and Development Coordinator adopt a comprehensive and realistic approach in assessing 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 toward other essential projects.

Meanwhile, the OIC-City Engineer, Project Monitoring and Development Officer and OIC-City General Services Officer were urged to fast-track the completion of preparatory requirements for delayed projects and establish systems to ensure that future projects are implementation-ready.

When sought for comment, the Lapu-Lapu City Government told The Freeman that it had yet to receive a copy of the audit report. (CEBU NEWS)