CEBU City Councilor Jose Abellanosa has raised alarm over the stalled P1.3-billion flood control project awarded to Manila-based A.M. Oreta & Co. Inc. The contract, meant to ease perennial flooding across major city thoroughfares, has dragged on for four years without even a finished design. Yet the contractor already received almost P200 million in advance payments.
In separate development, Mayor Nestor Archival threatened Kimwa Construction with a cease and desist order if it fails to fix safety lapses at its Nivel Hills road concreting project in Barangay Lahug. He gave the firm until Friday, Sept. 26, 2025, to comply with traffic and safety requirements or risk a shutdown.
The flood project stalemate
Abellanosa said in his privilege speech on Tuesday, Sept. 23, that the project was designed to install drainage mains across key city streets. Construction should have started six months after the design phase, with completion originally set for November 2023. But “nothing has been done and accomplished, not even the design phase,” he told the council.
The Commission on Audit has already issued a notice of disallowance, ruling that the City was damaged by tying up funds without any benefit. City Hall has sent demand letters for the refund of P199 million, but the contractor has appealed.
Vice Mayor Tomas Osmeña, for his part, pushed to file charges not only against the company but also against officials who approved the deal under the late mayor Edgardo Labella. The council has since ordered the City Legal Office to pursue recovery of funds, terminate the contract and prepare cases if the contractor fails to pay back the advance.
Archival’s warning
On the other front, Archival inspected the Nivel Hills roadwork after mounting complaints from motorists about traffic jams and safety hazards. The P101 million project, funded by the Department of Public Works and Highways (DPWH), started in June and is slated for full completion by January 2026. Archival directed Kimwa Construction to put up proper signage, assign traffic aides, keep the site clean and submit a written commitment to finish the pavement concreting by Oct. 30.
Failure to meet the deadline could trigger a P500,000 penalty, plus daily fines. He warned that if Kimwa does not comply by Friday, the City will stop the project the next day.
What’s at stake
For the flood project, the concern is about wasted public funds and a city still vulnerable to heavy rains. Abellanosa framed it bluntly: “P199 million is already going down the drain.” Beyond the refund battle, questions linger on accountability — from the contractor to the city officials who signed off on the deal.
For the Nivel Hills roadworks, the stakes are commuter safety and business disruption. Archival noted not only lost time in traffic but also accidents tied to poor road management. With DPWH involved, the issue also tests coordination between national and local government over infrastructure standards.
What we don’t know yet
Will A.M. Oreta ever return the P199 million? If the City sues, will the process stretch on for years? And will the project itself be salvaged or scrapped entirely? In Lahug, it remains to be seen whether Kimwa will meet Archival’s deadline, avoid penalties, and deliver the Oct. 30 target for pavement completion. Another open question is whether City Hall will really shut down the project if the contractor falters.
The CLO has 15 days to report back on the flood project’s legal remedies and recovery efforts. Lawsuits against Oreta and liable city officials may soon follow. For Nivel Hills, Friday is the first big test — Kimwa must show compliance or face a stop-work order. Oct. 30 looms as the next key date, with penalties waiting if the road pavement is not finished.
In both cases, the City Government is caught between contractors’ delays and public frustration. The next weeks will decide whether City Hall can enforce accountability or whether residents will again bear the cost of failed projects. / CDF WITH BRYCE KEN ABELLON, USJ-R INTERN