Cayetano review on New Senate Building uncovers dramatic cost increase
October 18, 2024
Cayetano review on New Senate Building uncovers dramatic cost increase
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.
"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 senator said via Facebook Live on October 11, 2024.
Cayetano 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," he said.
In an interview last July when he began the review, Cayetano had said what he wants to find out are 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.
Dizzying project cost and phases
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 Senator Cayetano's 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 Francis "Chiz" Escudero', he said they will present their own timeline to move into the new building.
"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," the senator 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," he 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 added.
Matinding pagtaas ng presyo, lumilinaw sa pagsusuri ni Cayetano sa New Senate Building
Patuloy na naglalantad ng mga nakababahalang pagtaas ng gastos at kawalan ng huling presyo ang independienteng pagsusuri ni Senador Alan Peter Cayetano sa itinatayong New Senate Building.
Ibinunyag ni Cayetano, na naging chair ng Accounts Committee matapos ang pagbabago sa liderato ng Senado noong Hunyo, na ang kabuuang gastos sa gusali ay umakyat mula P21.7 billion at ngayo'y tinatayang nasa P31.6 billion na.
"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," wika ng senador sa isang Facebook Live nitong October 11, 2024.
Ipinaliwanag ni Cayetano na sa pagsusuri ng NSB, nakapaglatag ang Senado ng timeline at kabuuang gastos para sa proyekto matapos makumpleto ng Department of Public Works and Highways (DPWH) ang Revised Detailed Architectural and Engineering Designs (R-DAEDS) noong Setyembre.
"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," wika ng senador.
Sa isang panayam noong Hulyo nang simulan niya ang pagsusuri, sinabi ni Cayetano na ang nais niyang malaman ay ang aktwal na gastos at ang takdang panahon ng proyekto. "Kasi kung hindi, we will not get to the conclusion kung magkano ba talaga at kailan matatapos," aniya.
Nakakalulang gastos
Ang timeline ng New Senate Building ay nagpapakita ng pattern ng patuloy na pagtaas ng gastos, kung saan natutuklasan lamang ang mga presyo bawat phase ng proyekto.
Noong March 2019, iginawad ang halagang P8.9 billion para sa Phase 1 na sakop lang ang core at shell ng gusali.
Pagsapit ng January 2023, nadagdagan ito ng P2.5 billion para sa Phase 2, na kasama ang fit-out package, mga kasangkapan, at tiles. Dahil dito, umabot sa P11.4 billion ang kabuuang gastos ng gusali.
Noong Marso 2023, iniulat ng DPWH ang karagdagang P7.3 billion para sa Phase 3, na sakop ang "works to complete." Dapat din maglaan ang Senado ng karagdagang P2.97 billion para sa specialty systems, na nagtulak sa kabuuang gastos ng proyekto sa P21.7 billion.
Ngunit sa gitna ng pagsusuri, isang bagong isyu ang lumitaw: hindi isinaalang-alang ng mga pagtatantya sa gastos ang inflation at iba pang mga kadahilanan. Pagsapit ng July 2024, itinantiya na ang kabuuang gastos ay maaaring maglaro na sa pagitan ng P25 hanggang P27 billion.
Nitong September 17, 2024 lamang naisumite ng DPWH ang kabuuang halaga ng proyekto pagkatapos makumpleto ang R-DAEDS. Kasama nito ang rebisyon ng DPWH ng Phase 3 hanggang P10 billion, mula sa dating tantiya na P7 billion.
Ito ang nagbunsod sa opisina ni Senador Cayetano na magbigay ng independiyenteng pagtatantya ng P31.6 billion para sa kabuuang halaga ng pagtatayo ng proyekto.
Higit pa rito, nagpahayag ang DPWH ng bagong timeline ng pagkumpleto para sa phase 3 ng Bagong Gusali ng Senado, na umaabot mula 36 hanggang 48 buwan mula sa oras ng paggawad nito. Ikinabahala ito ni Cayetano at sinabing hindi ito katanggap-tanggap.
Sa patnubay ni Senate President Francis "Chiz" Escudero', sinabi niyang magsusumite sila ng sarili nilang timeline para lumipat sa bagong gusali.
"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," paliwanag ng senador sa Facebook.
Idinagdag niya na ang pangunahing layunin ay upang pababain ang presyo nang hindi nakompromiso ang kalidad at kaligtasan.
"We (Escudero and I) are studying everything together now. We're looking now at functionality and quality na nandoon pa rin," wika ng senador.
"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," dagdag niya.
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