Auditors flag P290-M Clark air traffic control tower project delays, cost overruns

MANILA, Philippines – State auditors flagged the P290.3-million New Clark Air Traffic Control Tower project, awarded in January 2021 and expected to be completed within a year, saying it remains unfinished with no target turnover date.

The 2024 audit report on the Clark International Airport Corporation (CIAC) showed the project has been extended six times, adding 930 days to the original 365-day contract, but was only 91% complete as of 2024. Costs had also risen 22% to P354.41 million.

Auditors attributed the delays to weak procurement planning, poor project monitoring and possible shortcomings in the contractor’s capacity. They also noted the project broke ground without the required building, electronic, electrical, mechanical, plumbing and sanitary permits from the Clark Development Corporation, the regulator for the Clark Freeport Zone.

Auditors stressed that building permits are mandatory under the National Building Code, with violations carrying fines of up to P20,000 or jail terms of up to two years.

“It was only on April 29, 2024 that CIAC was able to secure the necessary permits from the CDC. The absence of necessary permits during the construction period raises serious concerns regarding regulatory compliance, project authorization, and risk management,” the report read in part.

Auditors said the missing permits reflected poorly on the contractor’s ability to plan and questioned why construction continued for years without them.

“Securing permits is a fundamental requirement in the construction industry, and failure to do so casts doubt on the contractor’s capability to manage regulatory requirements effectively. This oversight not only hindered the project’s progress but also highlighted deficiencies in due diligence and adherence to standard construction protocols,” the report added.

State auditors said CIAC management failed to intervene early, allowing procedural violations to persist.

The contractor sought a suspension of the height clearance limit on March 17, 2022 – two months after the original January 2022 completion date – after the Civil Aviation Authority of the Philippines (CAAP) denied permits for the tower and tower crane for exceeding allowable height. The control tower’s proposed top elevation was 228.81 meters, compared with CAAP’s 192-meter limit, a 36.81-meter excess.

The report noted that the approval of the Final Aeronautical Study and the redesign of the 4-Instrument Flight Procedures remained pending.

With shortening the tower out of the question, CAAP required an aeronautical study for a height clearance exemption. COA said the study assessed deviations from aerodrome standards, proposed safety measures, and recommended procedures to offset the deviation.

The contractor commissioned an international firm in 2023 to conduct the three-month study, costing P3.9 million. A portion of the findings stressed that “considering the existing defenses and proposed mitigation measures, the risks associated with the new control tower in its final situation are deemed acceptable.”

The results, along with a new Height Clearance Permit application, were submitted to CAAP on October 11, 2023. As of December 31, 2024, the permit had not been issued.

“Further verification revealed that CAAP requires additional documentation to support the aeronautical study report,” the audit showed.

Auditors also found the installed elevators did not match the specified brand in the paid progress billings. While the project listed a German-made Schneider elevator, inspection revealed a different brand.

They said, “According to the approved Bill of Quantities, the contracted brand was Schneider, a German brand. However, during an inspection conducted on March 20, 2025, the installed elevator was identified as Global Fuji, a Chinese brand. A review of records confirmed that this substitution was approved by the then president and chief executive officer of CIAC.” – Rappler.com