Escudero stops construction of new Senate building due to “escalating costs”

(1st UPDATE) Senate President orders halt after meeting with Senator Alan Peter Cayetano, who pointed out the “dramatic increase in the project budget from the original P8.9 billion to a projected P23.3 billion.”

MANILA, Philippines – Newly installed Senate President Francis “Chiz” Escudero has suspended the construction of the new Senate building in Fort Bonifacio, Taguig, due to “rising costs and the need for a comprehensive review.”

Escudero made the announcement on Monday, June 10, during the flag-raising ceremony with officials and staff of the Senate at its current building in Pasay City, which is rented by the Government Service Insurance System.

The Senate President pointed out that the completion of the construction would entail additional costs of P10 billion.

The original budget was only P8.9 billion. Before the suspension, additional costs amounted to P4.1 billion.

“It is a great honour for me to meet and meet with the others (For me, this is hard to swallow and really shocking),” he told Senate staff, referring to the estimated total cost of P23 billion to complete the construction.

“Well, that’s what I care about, and I’m not going to let my attention be focused on the new situation.” Escudero said. (When I saw this, I was kind of surprised and didn’t expect that building our new house would be so expensive.)

Senate officials and staff had initially considered moving to the new building in September. “Hindi, I have never heard anything like this. In 2025, it was not easy for most people to give up their lives and impress their family members and get married,” said Escudero.

(We will not be able to move into the new building before the end of the year. Even in 2025 I think it is impossible because there are still many things that need to be prepared and checked and investigated.)

Escudero said he decided on the suspension after meeting with Senator Alan Peter Cayetano, who now heads the committee, who pointed to the “dramatic increase in the project budget from the original P8.9 billion to a projected P23.3 billion.”

Cayetano’s report also highlighted issues related to procurement delays and missteps by the project manager, the Department of Public Works and Highways (DPWH), which “contributed to project delays and cost overruns.”

“Senator Cayetano has spoken out as a presidential candidate for the United States during his term and will now continue his term.“Escudero said. (I have asked Senator Cayetano based on his own recommendation and letter that we must put on hold what needs to be done and paid for pending review and investigation.)

The inspections carried out by the Senate’s coordination team revealed a lack of “quality of execution and compliance with the original task”.

Construction began under the leadership of former Senate President Tito Sotto. Former Senator Ping Lacson was then chairman of the Committee on Accounts.

The contract was awarded to Hilmarc’s Construction Corporation, the same company that was involved in the overpriced construction of Makati City Hall Building II worth P2.3 billion.

Lascon’s response

In a message to Senate reporters, Lacson said that while he agreed with Escudero’s suspension, he stressed that not a single peso of the P10.3 billion were paid to the DPWH because Senator Nancy Binay, who succeeded him as Audit Chair, had “objected to the DPWH’s requests for amendment orders (VOs).”

“The DPWH is the executive agency and therefore submits cost estimates and VOs. However, ultimately, it is the Senate that approves or rejects the DPWH’s proposed additional budget allocations,” he said.

Lacson also defended the new completion cost of P23 billion as it “includes the cost of equipment and technical components of the security system as well as the land acquisition, which was then estimated at P1.62 billion.”

Delays mean more cost adjustment

In a statement later Monday, Binay said it was clarified in 2019 that the initial P8.9 billion was only for the “core and shell” of the building, meaning the furnishings and interiors are “completely separate.”

Binay also said that Escudero was informed about the project costs as early as 2019.

“During my tenure as Chair of the Committee on Public Accounts, we sent official invitations to all Senators for eye inspections and one-on-one meetings on the progress, status, timelines and other matters related to the new Senate building,” she said.

“There is an urgent need to complete construction by 2025. Delays would mean cost adjustments, additional fees, penalties and another round of rentals (fees to GSIS),” Binay added. – Rappler.com