MMDA personnel, along with local government workers and volunteers, conduct the “Bayanihan sa Estero” cleanup drive at Maligaya Creek near La Loma Cemetery in Barangay 120, Caloocan City, on Wednesday, June 11, 2025. Maria Tan, ABS-CBN News/File
MANILA — More than P8.47 billion worth of flood control infrastructure of the Metropolitan Manila Development Authority is not insured, the Commission on Audit said in its 2025 annual audit report.
State auditors said the uninsured assets include 77 pumping stations and floodgates. COA said it had flagged the problem in a previous report, but the assets remain without coverage.
The pumping stations and floodgates are the largest block of uninsured assets on the MMDA's books. They are followed by 44 pieces of construction and other heavy equipment worth P220.19 million, and 15 ferry office stations worth P212.11 million.
READ: Why was flooding so bad in Metro Manila? MMDA cites extreme rain, drainage limits
Only around P4 billion of the agency's P13.65 billion in insurable properties was covered in 2025, which left P9 billion or 66% uninsured.
COA said the lapse is non-compliance with the Property Insurance Law. It said this exposes the government "to risk of loss without right of indemnification and to unnecessary insurance expenditures."
The law requires government agencies to insure their properties with the Government Insurance Fund, which is administered by the Government Service Insurance System.
"Pumping stations and floodgates play a vital role in managing water levels and preventing widespread flooding in Metro Manila," the auditors said. Without insurance, damage or loss from fire, typhoons, flooding or earthquakes "may require substantial government resources for repair or replacement,” the report read.
Four buildings worth P183.93 million also lacked coverage. These include the Traffic Academy in Sta. Mesa, Manila, the Effective Flood Control Operation System office, the Flood Control and Sewerage Management Office's equipment satellite office and emergency quarters, and the Traffic Engineering Division.
The MMDA told auditors that some insurers require land titles or ownership documents, which it lacks for some assets. It also cited high premium costs and said some facilities are on waterways or areas with jurisdictional limitations.
COA recommended that MMDA offices arrange GSIS coverage for all insurable assets, including pumping stations, floodgates and ferry stations.
It also urged the MMDA to coordinate with GSIS "to determine acceptable documentation or alternative arrangements" for assets without land titles or on easements and public property. It also asked the agency to include premiums in its annual budget proposals and to reconcile insurance records with property records so unserviceable items are dropped from coverage.
OUT OF SERVICE PUMPS DESPITE 100% RELIABILITY CLAIM
MMDA also reported 100 percent reliability of its pumping stations for 2025, but COA found that 28 of 119 pumps in its large pumping stations were unserviceable. They were under repair, awaiting replacement or being rehabilitated.
"This indicates that actual operational capacity is below expected performance levels," the audit said.
Three stations fell below MMDA's own threshold, under which a station is operational if more than half its pumps work.
READ: Gov't to build water cisterns, detention ponds to solve floods—MMDA
Uli-Uli and Makati pumping stations had no working pumps, and Libertad had two of six working. COA attributed these to rehabilitation and warranty repairs being handled by the Department of Public Works and Highways' Unified Project Management Office.
During heavy rain, "reduced or absent pumping capacity in specific locations may delay the removal of floodwaters, thereby increasing localized flood risk," the auditors said.
MMDA said the issue started from a 2002 agreement under which flood control operations were transferred to it, while major repairs and capital projects stayed with the DPWH. As a result, MMDA "must coordinate with DPWH or contractors before defective pumps can be restored," and repair priorities are not always the ones funded.
COA also noted that some completed stations were not immediately accepted because they needed corrective work. It cited the Sunog Apog Pumping Station in Manila.
The agency spent an average of P110.44 million a year on pumping operations from 2023 to 2025.
COA recommended that MMDA, through the Office of the Chairman, endorse to Congress the need for direct and adequate funding and "better alignment of responsibility, authority, and resource control."
It also asked for faster repairs, full functionality before acceptance of new facilities, clearer criteria for operational status, and studies on electric-powered systems.
The Flood Control and Sewerage Management Office said ongoing rehabilitation "does not hamper the operability" of pumping stations.
At Libertad, it said, four pumps suffice for average rainfall, and all six are used only in heavy rain. At Uli-Uli, it said, mobile pumping units are on stand-by.
MMDA Chairman Romando Artes said the agency is working with the Department of Information and Communications Technology to automate pumping stations and link them to a command center for remote control.
P371-M INFRA PROJECTS DELAYED
MMDA "was not able to ensure timely completion" of 17 infrastructure projects worth P370 million, COA said.
Delays extended from 19 to 1,346 calendar days, contrary to Republic Act 12009, the New Government Procurement Act, its implementing rules and the contract terms.
As of Dec. 31, 2025, 11 projects worth P293.7 million were ongoing, three worth P28.3 million were suspended and three worth P49 million were terminated.
The longest delay, 1,346 days, was the Pasig River Linear Park in Mandaluyong's Barangay Vergara, a P19.9 million project that was due for completion in April 2022 and remains suspended.
The ongoing projects include the P141.9 million Smart City Infrastructure Package 2 for EDSA, which was 67 days late.
Seven of the 11 ongoing projects were delayed by 78 to 467 days because barangays and local governments issued clearances and permits late, the report read.
COA said securing permits usually takes two to six weeks after the notice to proceed, but this "was not considered in the original project schedule as it was not included in the critical path."
“The foregoing delays indicate gaps in project planning, risk assessment, and coordination among implementing units and external stakeholders. The inability to adequately anticipate permit requirements, right-of-way constraints, and potential design revisions contributed to significant deviations from contract timelines,” COA said.
“Prolonged project implementation delays the delivery of intended public infrastructure services, may increase project costs, and limits the Agency’s ability to realize the expected benefits of infrastructure investments within the planned period,” it added.
COA told MMDA to make representations with local officials to eliminate permit bottlenecks and to submit variation, suspension and termination documents immediately.
It also urged MMDA to consider blacklisting contractors, take over terminated projects and those with negative slippage of 15 percent or more, and impose liquidated damages where appropriate.
MMDA said it had submitted the required suspension orders and approved time extensions. The Flood Control and Sewerage Management Office said most delays were due to late permits, so Artes asked to be told of projects with permit issues so he can coordinate directly with local governments.
For the Pasig River Linear Park, MMDA said "a structure hindering the completion" prevented work from continuing. At an exit conference, Artes told the Health, Public Safety and Environmental Protection Office to study amending the contract with the finance and legal offices.
MMDA added that terminated projects had been re-bid and were ongoing, and recovery of advances from previous contractors was in process.
In a rejoinder, auditors said they received only a partial submission of the required documents.
FLOOD PROJECT DELAYS PILE UP P41M IN FEES
Meanwhile, twelve projects under the Metro Manila Flood Management Project Phase 1, worth P516 million suffered implementation delays of 23 to 769 days, COA said.
It said the delays, which were attributed to port congestion, unavailable materials and constant plan revisions, breached the World Bank's procurement regulations.
COA said the 12 delayed projects were worth P370.5 million, while four contracts worth P145.7 million were terminated in 2025 and repackaged or re-bid.
The delays deferred flood and solid waste management work and slowed the use of loan proceeds. As a result, the government paid commitment fees totaling P41.4 million from 2018 to 2025, COA said.
The longest delay, 769 days, involved the design and construction of trash traps on the Estero de Paco and San Juan River. It finished 279 days beyond its extended deadline.
The terminated contracts include a P94.6 million nature-based neighborhood upgrading project along the San Juan River and a P38.9 million water hyacinth harvester purchase. COA attributed the terminations to repackaging of activities, supplier problems such as equipment pull-out, and the need to re-bid.
"This, in turn, resulted in the incurrence of commitment fees, representing additional financial costs to the government without corresponding outputs during the period of delay. Moreover, prolonged implementation required sustained monitoring and administrative effort, thereby reducing overall project efficiency," state auditors said.
COA recommended for MMDA to improve coordination with suppliers, minimize plan revisions and variation orders, expedite re-procurement of terminated contracts, and speed up implementation to reduce commitment fees.
The project management office replied that the trash trap delay was due to land ownership issues on the proposed conveyor site, and liquidated damages were imposed on the final billing. It said ongoing consulting contracts were extended because the World Bank "deemed it prudent to continue with the same consultants."
All terminated activities were repackaged and awarded, some in December 2025 for implementation in 2026, MMDA said.
It added that extension requests came with catch-up plans and that monitoring had been intensified.