THE total project cost to construct the new Senate building would hit P25 to P27 billion due to the more expensive cost of construction materials caused by inflation, the Department of Public Works and Highways (DPWH) said yesterday.
DPWH Undersecretary for Convergence Project Antonio Molano Jr. told the Senate Committee on Accounts that the cost of materials will roughly increase by 20 to 25 percent due to inflation.
“To my estimate… from the (time that the) project was bidded out, more or less 20 to 25 percent (na ang itataas) … Aabutin ng P25 billion to P27 billion, including the cost of land, plus inflationary cost, kasama po (It may now cost around P25 billion to P27 billion, including the cost of land plus inflationary costs),” Molano said in response to the questioning of Cayetano, who is the committee chairperson.
Cayetano said he asked about the updated construction cost because the DPWH project cost that he has was still dated March 2023.
Agreeing with Molano, Cayetano noted that the average rise in the cost of materials since the construction started could have been more than five percent since there were a number of factors to be considered, such as the ongoing Russia-Ukraine war, prices of oil in the world market, and the booming of the construction industry.
Cayetano said from the original cost of P8.9 billion to the last figure of P23.3 billion, the costing will now reach a conservative estimate of P26.6 billion.
“So, lilinawin ko lang, between P25 billion to P27 billion na ang cost now. That is assuming na walang bagong gagastusin sa RDAED diba? Pero may binago sila, that can entail additional cost (So, let me clarify, the cost now is between P25 billion to P27 billion. That is assuming that there will be more RDAED [redesigning), but if otherwise, that can entail additional cost),” he also said.
The project started in 2021. Last week, the DPWH said the project is already 852 days delayed.
Cayetano said the figures that he and Sen. Nancy Binay argued about during last week’s hearing were both outdated.
It can be recalled that Cayetano and Binay engaged in a heated argument after the latter said the construction of the building would only cost P21.7 billion, while the former said it will reach P23.3 billion.
Binay last Monday filed an ethics complaint against Cayetano, citing the latter’s supposed unparliamentary actions during the hearing.
Yesterday, Cayetano said that with the DPWH’s briefing, it now turns out that both he and Binay were right.
“Ang total project cost mahigit P23 billion, ang total construction cost ay P21.7 billion. So, pareho kaming tama pero dahil ganoon yung pag argue namin, pareho kaming may tama, di ba? (The total project cost is more than P23 billion, while the total construction cost is P21.7 billion. So, we are both right, but because of the way we argued, we both erred),” he said.
Binay did not attend yesterday’s hearing.
