The Department of Public Works and Highways (DPWH) should finalize the projected cost of the New Senate Building which is expected to rise significantly between P25-billion to P27-billion, Sen. Alan Peter Cayetano said.

Cayetano, chairman of the Senate Committee on Accounts which is conducting a thorough review of the NSB project, said the amount is a substantial increase from the P21-billion to P23-billion estimated in 2021. 

The senator said arguing over the projected cost with Sen. Nancy Binay, who headed the accounts panel before he took over it, is pointless since the estimated cost can go higher up to P27-billion or higher due to inflation and global economic conditions.

“I’ll be very honest, this is what we want to avoid. Senator Nancy and I debated the cost. The total project cost was over P23 billion, and the total construction cost was P21.7 billion. Both figures are correct depending on the argument, but cooler heads, including myself, can reconcile those numbers,” Cayetano explained during the panel’s hearing on Wednesday, July 10, addressing his concerns to the DPWH.

“The problem is, the additional submissions you gave me are outdated. So, our debate over P21.7 billion or P23 billion is moot because the total project cost now exceeds P23 billion,” he said.

Soledad Florencio, DPWH project director for the NSB, admitted that the estimates need to be updated as it is based on 2021 costs.

“We admit these are not updated. So, in your terms, Mr. Chair, we need to update them,” she said.

Cayetano said it is imperative to come up with more accurate figures, noting that construction professionals provided varying estimates of 20 percent to 40 percent increases.

Such variations reflect changes over three years, particularly the post-2021 Ukraine conflict which surged steel and cement prices by 2022, and the construction boom following the pandemic.

“Based on a conservative 20-percent increase, the cost is between P25 and P27 billion now,” Cayetano said.

Construction of the NSB was initially budgeted at P8.9 -billion but the costs have since escalated, with the 2021 estimate reaching P23.3-billion. 

Of this amount, the P8.9 billion is designated for the core and shell, while P2.5 billion covers the fit-out, corresponding to the first and second phases of the project, respectively. Additionally, the land cost is P1.6 billion, with the final payment due in 2025, bringing the total to P13 billion.

But the Senate put on hold the additional P10.3-billion required for the completion of Phase 3 while the review of the NSB project is ongoing.