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NEW SENATE BUILDING COST NOW AT P31.6B — CAYETANO

Senator Alan Peter Cayetano’s independent review of the New Senate Building continues to unveil alarming revelations about its escalating costs, highlighting the absence of a final project price which remains a “moving target.”

Cayetano, who assumed the position of Accounts Committee chair following a Senate leadership change in June this year, disclosed that the total building cost has increased from P21.7 billion to now a whopping estimate of P31.6 billion.

“Ituloy lang project as planned – ay aabot ito ng P33 billion.”

“Medyo nalungkot ako sa report na aabot nga ng three to four years or 36 to 48 months daw [ang completion ng phase 3 ng NSB] sabi ng DPWH… Nung kinuwenta din namin lahat kung kasama ang lupa [at furnitures], with apples-to-apples comparison – meaning ituloy lang project as planned – ay aabot ito ng P33 billion,” the veteran legislator said via Facebook Live recently.

The seasoned lawmaker explained that it is through the NSB review that the Senate established a timeline and overall project cost following the Department of Public Works and Highways (DPWH)’s completion of the Revised Detailed Architectural and Engineering Designs (R-DAEDS) in September.

“Again this is not about finger-pointing or, sa ngayon, holding people accountable. Wala nga kaming sinasabing irregularity o anomalya. We’re just focused on finding out the facts – what happened and how can we fix it,” the senator said.

In an interview last July when he began the review, Cayetano had said what he wanted to find out were the actual cost and timeline of the project. 

“Kasi kung hindi, we will not get to the conclusion kung magkano ba talaga at kailan matatapos,” he said.

The timeline of the New Senate Building reveals a troubling pattern of escalating costs, with prices being uncovered only at each phase of the project.

In March 2019, the amount of P8.9 billion was awarded for Phase 1 which covered only the core and shell construction.

By January 2023, an additional P2.5 billion was awarded for Phase 2, which included fit-out package and furnishings and tiles, bringing the total building cost to P11.4 billion.

In March 2023, the DPWH reported an additional P7.3 billion for Phase 3, covering “works to complete.” The Senate side was to procure an additional P2.97 billion for specialty systems, bringing the total project cost to P21.7 billion.

As the review progressed, however, a new issue emerged: the cost estimates did not account for inflation and other factors. By July 2024, projections suggested that the total cost could range from P25 to P27 billion.

It was only on September 17, 2024 that the DPWH submitted the overall project cost after completing the R-DAEDS. This submission included a DPWH revision of Phase 3 to P10 billion, up from a previous estimate of P7 billion.

This led his team to provide an independent estimate of a staggering P31.6 billion for the total project building cost.

Furthermore, the DPWH has communicated a new completion timeline for the phase 3 of the New Senate Building, extending from 36 to 48 months from the time of its awarding.

Cayetano, who has led several fact-finding reviews in the past, said he finds these developments troubling and unacceptable.

With the guidance of Senate President Chiz Escudero, he said they will present their own timeline to move into the new building.

“The instruction is to speed up.”

“The instruction is to speed up. We’ll be meeting with the DPWH kung bakit [ang estimate timeline ng Phase 3 ay] 36 to 48 months because we want [to move in the new building] sana na middle or end of 2026. And then of course, we want to spend much, much less,” Cayetano explained via Facebook.

He added that the main goal is to bring down the cost significantly without compromising quality and safety.

“We (Escudero and I) are studying everything together now. We’re looking now at functionality and quality na nandoon pa rin,” Cayetano said.

“We have to not allow it to become a white elephant. We want to make sure na matapos ito nang maganda and it is something that we can be proud of,” he concluded.

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