NEDA Panel Oks Cost Increases In Mindanao Railway, MM Bridges

The National Economic and Development Authority Board’s Investment Coordination Committee-Cabinet Committee (ICC-CabCom) on July 10, 2019 approved changes in two ongoing projects.

These include the increase in cost for the Mindanao Railway Project Phase 1-Tagum-Davao-Digos Segment (MRP-TDD), and the implementation extension of the Metro Manila Priority Bridges Seismic Improvement Project.

For the MRP-TDD, the project cost increase amounting to PHP82.9 billion—from its previously approved cost of PHP35.9 billion in 2017—will cover changes in cost of structural and construction works, among others.

In terms of scope, the ICC-CabCom also approved the additional Davao Satellite Depot of the MRP-TDD.

For the Metro Manila Priority Bridges Seismic Improvement Project, the cost increases to PHP7.9 billion from PHP4.3 billion will cover the changes in construction technology to be applied to the Guadalupe Bridge, putting up of temporary detour bridges in Guadalupe, and additional work shift to reduce the construction period, among others.

In addition, the implementation extension of one year and eight months until August 2023, inclusive of a one-year defects liability period, will help the project catch up with its target completion date.

The ICC-CabCom also noted the inclusion of the Project Management Consultant with a cost of PHP14.39 billion, inclusive of VAT and contingencies, in the scope of works for the PNR South Long-Haul Project.

“We see changes in scope and cost as opportunities to optimize the project components and update the estimates. The Government aims to speed up implementation while ensuring quality,” said Socioeconomic Planning Secretary Ernesto M. Pernia, who co-chaired the meeting with DOF Secretary Carlos G. Dominguez.

Meanwhile, it was reported in the same meeting that the NEDA Board confirmed ad referendum the ICC-CabCom approval of changes in three projects, namely:

1. Implementation of extension and loan validity extension of the Central Luzon Link Expressway (CLLEX) Project, Phase I of the Department of Public Works and Highways.

2. Change in project cost and scope of works and extension of loan validity and implementation duration of the National Irrigation Sector Rehabilitation and Improvement Project (NISRIP) of the National Irrigation Authority.

3. Change in project scope and loan validity extension of the Metro Manila Wastewater Management Project (MWMP) of the Land Bank of the Philippines.

These latter changes had been approved by the ICC-CabCom on May 17, 2019. (PNA)

Photo Credit: neda.gov.ph

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