Senate President Francis ‘Chiz’ G. Escudero announced on Monday that he has ordered the suspension of the construction work on the new Senate building in Taguig City, citing concerns over escalating costs and the need for a comprehensive review.
Escudero made the announcement during his first flag-raising ceremony as Senate chief, informing officials and employees that the planned transfer to the new building would be delayed.
“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,” Escudero said.
Escudero expressed his shock and disbelief at the unexpectedly high projected costs needed to complete the new Senate building, noting that these expenses are particularly hard to accept given the economic crisis faced by most Filipinos.
“Nung nakita ko ito, medyo nagulantang ako at hindi ko inasahan na ganun kalaki aabutin ang gagastusin para sa ating magiging bagong tahanan,” Escudero said.
“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,” he added.
Initially budgeted at P8.9-B, Escudero revealed that the cost of the project has now ballooned to P13-B, with an additional P10-B required for completion, bringing the total to P23-B.
“Para sa akin, medyo mabigat lunukin at kagulat-gulat naman talaga,” Escudero remarked.
In response to these findings, Escudero said he has already given specific instructions to Senator Alan Peter Cayetano, the new chairman of the Committee on Accounts, who is responsible for ensuring the smooth transfer of the Senate to the new building and overseeing the project’s quality and timeliness.
“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,” Escudero said.
According to Escudero, he made the decision after receiving a detailed report and recommendations last Friday from Cayetano concerning the escalating costs, quality issues, and management inefficiencies surrounding the New Senate Building project.
Cayetano’s report highlighted several critical issues, including a dramatic increase in the project’s budget from an initial P8.9-B to a projected P23.3-B.
The preliminary review conducted by the committee revealed numerous variations, deviations, and modifications to the project that have not been properly validated. These changes have resulted in additional expenses amounting to P833-M, which is nearly 10 percent of the original contract price.
Moreover, inspections by the Senate Coordination Team have raised questions about the quality of workmanship and adherence to the original terms of reference.
The report also pointed out 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.
In light of these initial findings, Escudero ordered a deeper review of the project to address current issues, improve project management, and ensure the highest standards of quality and efficiency.
Escudero agreed with all of Cayetano’s recommendations, including identifying immediate and underlying problems in the project and compelling the DPWH to question, evaluate, and rectify issues that can still be corrected.
In his report, Cayetano explained that 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 suggested compelling the DPWH to create a high-level liaison team for this project, composed of the DPWH’s Unified Project Management Office as the project manager and the Bureau of Design for proper coordination.
Cayetano also advised engaging a third-party construction management team to help clarify and validate the project to date, both technically and financially.
This, he said, will aid in a value engineering exercise intended to reduce the cost of the building, considering the high projected cost, subsequent delays, and the desire to turn over a building that conforms to the original design intent.