The PHP23 billion cost of the new Senate building in Taguig City’s financial district Bonifacio Global City (BGC) ‘shocked’ Senate President Francis Escudero, prompting him to order the suspension of the construction work on it and call for a comprehensive review of the project.

“Hindi totoo na makakalipat tayo sa bagong gusali, lupa at building ng Setyembre. Hindi rin totoo na aabot tayo makalipat bago matapos ang taon. Kahit hanggang 2025, sa palagay ko ay hindi pa rin dahil marami pang bagay na kailangang ihanda at maraming bagay din na aming nakita at nagisnan na kailangan pang suriin at pag-aralan,” he announced during his first flag-raising ceremony this Monday as head of the Senate.

The new Senate building project in BGC was started during the term of then-Senate President Vicente Sotto III and was continued by his successor, former Senate President Juan Miguel Zubiri.

Escudero, who has replaced Zubiri as head of the Senate, revealed that the project was initially budgeted at PHP8.9 billion, but its cost has now ballooned to PHP13 billion, plus PHP10 billion more for completion, bringing the total to PHP23 billion.

He said he was shocked and in disbelief at the unexpectedly high projected costs needed to complete the new building.

“Nung nakita ko ito, medyo nagulantang ako at hindi ko inasahan na ganun kalaki aabutin ang gagastusin para sa ating magiging bagong tahanan. Sa aking pananaw, masama ito sa panlasa ng karamihan, lalong masama sa panlasa ng nakararami nating mga kababayan, lalo na sa gitna ng krisis ng ekonomiya at sa kahirapan na nakikita ng marami sa ating kababayan. Para sa akin, medyo mabigat lunukin at kagulat-gulat naman talaga,” he stated.

Escudero bared that he received last Friday a detailed report and recommendations about the project from Senator Alan Peter Cayetano, the new chairman of the Committee on Accounts responsible for overseeing the project’s quality and timeliness and ensuring the smooth transfer of the Senate to the new building.

Cayetano’s report pertains to the escalating costs, quality issues, and management inefficiencies surrounding the project, Escudero said.

He noted that the preliminary review conducted by the committee discovered several variations, deviations, and modifications to the project that have not been properly validated, and which have resulted in additional expenses amounting to P833 million, or almost 10 percent of the original contract price.

Inspections conducted by the Senate Coordination Team also raised questions about the quality of workmanship and adherence to the original terms of reference, Escudero also revealed.

The report likewise took note of procurement delays and missteps by the project manager, the Department of Public Works and Highways (DPWH), which have contributed to project slowdowns and cost overruns, he shared.

Cayetano recommended identifying immediate and underlying problems in the project and compelling the DPWH ‘to question, evaluate, and rectify issues that can still be corrected.’

The DPWH’s actions will be decisive in determining whether the agency and the contractor, HillMarc’s Construction Corporation, will implement the remaining portion of the project, which has an approved budget of P10.33 billion but is yet to be awarded, he explained.

Additionally, the DPWH should create a high-level liaison team for this project, composed of the department’s Unified Project Management Office as the project manager and the Bureau of Design for proper coordination, Cayetano also suggested, as he likewise advised engaging a third-party construction management team to help clarify and validate the project to date, both technically and financially.

This, he stressed, will aid in a ‘value engineering exercise’ aimed at reducing the cost of the building.

Escudero said he agreed with all of Cayetano’s recommendations, stating, “Inutusan ko na si Senator Cayetano, base na rin sa kanyang rekomendasyon at sulat, na ipagpaliban muna anumang bayarin o gawain hangga’t hindi natin nasusuri at napag-aaralan.”

“Hindi kwestyonable, wala akong nakitang irregularity; nao-o-OA-yan lang ako,” the Senate President clarified, even as he hinted that he deemed the requirement to spend PHP23 billion for the project as ‘OA’ or over acting.

Meanwhile, Committee on Accounts former chairperson Senator Nancy Binay remarked, “Sa totoo lang, nagulat din ako kung saan nanggagaling ang info ni SP [Senate President] Escudero with regard the new Senate Building.”

She added, “Sadly, kung noong una pa man sana ay nagkaroon ng time si SP na magtanong at alamin ang tungkol sa construction developments, sana’y mas naliwanagan siya at nakapagbigay s’ya ng inputs at suggestions kung paano mas makakatipid at ‘di maantala ang paglipat ng Senado sa bagong gusali.”

Binay pointed out that Escudero, being an incumbent senator in 2019 and part of the 17th Congress, has been made aware of the project costs.

She underscored, “In February 2019, Sen Panfilo Lacson (as former Committee on Accounts chair) made it clear on the floor that the approved Multi-year Obligation Authority (MYOA) for the new Senate building is PHP8.9B which covers the ‘core and shell’ of the four-tower new building–and the interior and fit-outs are entirely separate.”

“During my watch as chair of the Committee on Accounts, we sent official invitations to all senators for ocular inspections and one-on-one briefings about the progress, status, timelines, and other matters with regard the project,” Binay elaborated.

She also added, “Eto na naman po tayo tungkol sa parking. Meron pong three-level basement parking ang Senate building sa Taguig. Fake news po ‘yung [sinasabing] walang parking.”

Binay said she understands that Escudero ‘meant well in reviewing the budget for the project, but said, “Sana madaliin nila ang review. We want to avoid any unnecessary expense brought by the delay. There is a sense of urgency to complete the construction by 2025. Delays would mean cost adjustments, additional charges, penalties, and another round of rental.”

Binay declared, “Naghihintay po lamang ako na ako’y ipatawag. If there are questions and some clarifications, or things that need to be verified or validated… Kung sana ay nakapag-usap kami ni SP, mas malinaw at factual info ang maibibigay ko, kaysa umasa s’ya sa mga ‘Marites’ at mga bubuyog na bumubulong-bulong.”

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