CEBU City Mayor Nestor Archival will review the contract for the Cebu City Medical Center’s (CCMC) upper floors. This decision comes days after former mayor Raymond Alvin Garcia awarded a P700 million project for the hospital’s fifth phase, covering the third to seventh floors.
The announcement followed the turnover ceremony of the Cebu City seal at City Hall on Monday, June 30, 2025. Garcia, for his part, defended awarding the Phase 5 contract to Dakay Construction, stating that the bidding process began last December.
Archival’s new administration signals a cautious approach to the CCMC project, which has faced significant delays since the old structure’s demolition and reconstruction in 2014, following damage from a 2013 earthquake.
Currently, only three floors of the planned 10-story building are operational. The fourth through seventh floors lack interior partitions, while the eighth through 10th floors are yet to be constructed. The City Government has already spent more than P1 billion on the project.
Concerns
Archival expressed concerns about past work at the City-owned hospital, citing a lack of clear, transparent goals and accomplishments in previous phases.
He plans to meet with the Department of Engineering and Public Works (DEPW) and Dakay Construction to identify specific deliverables for the P700 million project, which primarily focuses on completing interior partitions for the fourth through seventh floors.
“This is a campaign promise; I will take charge of the CCMC construction,” Archival said, referring to pledges made during the midterm election last May, where he defeated Garcia, who also campaigned on the hospital’s completion.
While he welcomed news of the contract award, Archival worried that a rushed completion without clear deliverables could lead to further problems and additional budget allocations.
“I would like to sit down with them so that inyong mapa-explain sa katawhan og unsay atong i-deliver (So you can explain to the people what we will deliver),” he said. The mayor stressed the need for public understanding of the project’s scope and remaining work.
Archival intends to thoroughly review the contract’s contents. He referenced previous phases (1, 2, 3, and 4), claiming deliverables were unclear and resulted in an “incomplete” hospital, even lacking a generator for the elevator.
Defense
Garcia stated that awarding the contract to Dakay Construction was not a last-minute or rushed decision as he neared the end of his term. He explained that the preparation of the program of work and estimate, along with the bidding process, occurred before the election.
The bidding took place on Dec. 23, 2024, and the contract was signed on Thursday, June 26. Last Friday, June 27, Garcia announced the winning bidder. Construction of Phase 5 is set to begin; however, the project does not include the procurement of hospital equipment.
Garcia acknowledged Archival’s right to review previous project phases and hold discussions. He stressed, however, that the CCMC’s completion should not be further delayed. He highlighted his efforts during his one-year stint as mayor to prioritize the CCMC’s completion, noting his satisfaction with upcoming progress on at least the fourth through seventh floors.
Garcia urged the new administration to continue the work his team had begun.
The estimated completion time for Phase 5 is eight months. The City may allow additional time for Dakay Construction or terminate the contract early if the contractor does not show satisfactory progress and incurs a negative slippage of 15 percent or more.
According to DEPW figures, the City Government has spent a total of P1.138 billion on civil works at CCMC for at least five construction phases since 2014. This includes P566 million for Phase 1, P36 million for Phase 1.1, P299 million for Phase 2, P99 million for Phase 3 and P136 million disbursed out of a P916 million contract for Phase 4.
Phase 5 was previously awarded to contractor M.E. Sicat Construction, but that contract was terminated in November 2022 due to delays. / EHP