Senator Alan Cayetano is urging the Department of Public Works and Highways (DPWH) to finalize the New Senate Building (NSB) budgetary cost of P25 billion to P27 billion, which is now higher than an earlier estimate of P23.3 billion.
Cayetano said it was revealed in the Senate Committee on Accounts hearing which he conducted on Wednesday that the cost for the construction of the NSB would be much higher.
The senator, committee chairperson, initiated the Senate inquiry due a spike of the budget allocation from P8.9 billion to over P23 billion.
“This is the problem when you submitted additional submissions, the price is already old. Meaning that the total project cost is P23 billion,” Cayetano said.
The DPWH said the changes in budgetary cost estimates are due to inflation.
To clarify the situation, he provided a breakdown of the total budgetary cost and the implications of applying a “conservative 20 percent inflationary cost” increase as referenced by the DPWH.
Cayetano shared that Phase 1’s cost currently increased to P8.6 billion from P8.067 billion due to variation orders.
Additionally, the senator also said Phase 2’s budgetary cost estimate is P2.375 billion with potential increases and Phase 3’s P10.33 billion cost, is currently under review.
In response to DPWH’s admission, the senator urged the agency to “keep their eyes on the ball” and finalize the cost based on 2024 prices to keep the project moving.
He also told them to issue the final design and get the final costing
