The problematic EBMC hospital building project

Undeterred by the issue of government-mandated pricing of construction materials for all infrastructure projects of local government units, the provincial government has scheduled the submission and opening of bids for the P100-million first phase of the EBMC hospital building this Feb. 5, 2026.

It may be recalled that the EBMC project is a top priority of the administration of Governor Patrick Alain T. Azanza, who had posted architectural drawings of the new provincial hospital on his social media account during the 2025 electoral campaign.

Late December, the Bids and Awards Committee (BAC) chaired by Senen Razal posted its Invitation to Bid for the first phase of the project, involving the construction of a three-story edifice alongside the existing main building, with an approved budget of P99,999,954.38 and contract duration of 350 calendar days.

Thirteen (13) construction firms expressed interest in the project, with a number of their representatives attending the pre-bid conference held at the Capitol last month.

It was during this meeting that a member of the BAC Technical Working Group (TWG), no less, brought up the issue of a directive issued by the Department of the Interior and Local Government (DILG) on Dec. 16, 2025 to all regional directors on the adoption of Presidential Directive (PD) No. PBBM-2025-1763 mandating the alignment of government project costs with prevailing market prices.

The TWG official said that they only learned of the directive recently and if it is implemented, the program of work and cost estimates for the first phase would be overpriced by P30 million.

Initiated following the huge public outcry over the DPWH flood control controversy, the DILG circular advised field officers to inform all LGUs under their jurisdiction regarding the directive and to ensure the adoption of the same pricing system for their respective infrastructure projects such as roads, buildings, water system projects and other similar undertakings.

Subsequently, the DILG Bicol Regional Director issued a similarly worded memo to all DILG provincial directors, including Catanduanes PD Uldarico Razal Jr., on Dec. 19, 2025 and asked that a status report on the implementation be submitted within 30 days from receipt.

Presumably, the Program of Work and Detailed Estimates for the EBMC Phase I hospital building construction was already completed when the Invitation to Bid was published on the PhilGEPS website by the PLGU-BAC.

According to the Construction Materials Price Data (CMPD) in the DPWH website, the unit costs for several key construction materials indicated for use by the Catanduanes DEO are considerably lower than the prevailing prices for the same materials as monitored by the Department of Trade and Industry (DTI) provincial office in the capital town of Virac.

Notably, the cost of rebars and plywood in local hardware stores are higher by two to 18 percent compared to the CMPD levels.

Construction aggregates, which constitute a large chunk of the materials requirement in concrete construction, are double or triple the cost set by DPWH.

While the CMPD sets the unit cost of fine aggregate sand in Catanduanes at P400 per cubic meter, a local supplier’s price for “crushed sand” is P1,200 per cubic meter while gravel is available at P800 per cubic meter or double the CMPD cost of P400 per cubic meter.

Apparently, the legal and financial ramifications of the Malacanang directive have not fazed the members of the PLGU-BAC, which proceeded with the bidding process.

It did not even hold a second pre-bid conference despite having announced during the “first” pre-bid meeting aired live on Facebook that it was postponing the meeting due to the issue raised by the TWG.

Thus, contractors participating in the Feb. 5 bidding, including a local company said to have been offered the project by a chief executive, could find themselves in uncertain territory once the contract is awarded and the project is commenced.

There being no supplemental notice from the PLGU-BAC that the program of work and detailed estimates for the project have been adjusted to comply with the DILG directive, the winning contractor runs the risk of incurring huge losses if the usual vociferous critics of the administration compile enough evidence to file charges against Capitol officials before the Ombudsman.

And this does not include the certainty of failing to abide by the agreement with whomever offered the project, again assuming that the bidding has been “arranged.”

The administration’s haste in implementing the project is understandable considering its considerable payoff in terms of social media “likes,” but concerned officials should be remember that road to hell is paved with good intentions.

The history of past administrations at the Capitol is littered with lessons from former ranking officials having to pay huge sums as restitution to the government in exchange for jail time, having been convicted of various corrupt practices but with their bosses – the real masterminds – enjoying their loot unpunished.

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