THE PNP served a Notice of Decision to Terminate the contractor of the P557.86 million PNP Medical Plaza project last May 20, 2024 following a recommendation from the Commission on Audit due to negative slippages or delays of more than 25 percent – well beyond the 15 percent allowed by the rules.
In the 2023 audit of the PNP released this week, state auditors noted that the project has already missed its original target completion date of May 9, 2023 by more than two years.
What was envisioned as a state-of-the-art hospital to provide healthcare for all PNP personnel was approved by former President Rodrigo Duterte in 2019 to be erected at Camp Panopio on P. Tuazon Boulevard in Cubao, Quezon City.
The P557.86 million contract was awarded to Mecel Construction and Electrical Inc, (MCEI) on June 23, 2021 and the demolition of old structures on the proposed site started shortly after.
But as of February 21, 2024 – one year and nine months past the target completion date – the audit team found that work on the hospital building has stalled at 34.28 percent.
The contractor raised multiple explanations as to why it failed to meet the project timetable, including work suspension due to rainy days; enhanced community quarantine in Metro Manila; upgrading of s structural column; lack of manpower and worksite interruption; delayed delivery of base isolators; testing of base isolators pending in China; foundation design issues; and presence of informal settler families (ISFs) on the proposed location of sewerage treatment plant.
Based on the audit report, the Quezon City Police District (QCPD) had already evicted 127 ISFs earlier but there were still 39 families on the worksite refusing to leave.
Of the 144 Seismic Base Isolators approved for installation, only 62 have been delivered. While 52 more were expected to be delivered as of January 2024, not one unit arrived as of inspection on February 27, 2024.
Auditors said the contractor had already received P252.15 million in payment, including the 15 percent mobilization fund and the 30 percent work accomplishment as of November 2022.
With the hospital structure bogged by various delays, the rest of the contracts in relation to the project have also remained frozen, unable to proceed.
These include the P374.21 million “details and finishing” work, the P120.66 million multi-level parking building; the P60.24 million construction of PNCO/Non-uniformed personnel condominium; P40.93 million ground development of the Lower Level; the P48.49 million installation of electrical facilities on the Medical Plaza, the P16.08 million installation of the pumphouse and cistern for water supply and fire safety, and the P2.03 million laundry facility.
Auditors noted that the pendency of all these projects meant their budget allotments could have gone to other equally urgent projects and programs of the PNP.
A bigger headache lurks on the sidelines: more delays translate to bigger budget needs.
“The increased project costs affected the financial viability despite the fact that the funds were already reverted to the National Treasury. This also hindered the benefits of a state-of-the-art Medical Plaza that should provide superior hospital care and support to the PNP,” the COA said.
The audit team recommended that the contract termination process be expedited and the performance bond posted by the contractor forfeited.
