NEDA approves cost adjustments for Mindanao railway, Metro Manila bridges

MANILA, Philippines — The Cabinet-level Investment Coordination Committee (ICC) of the National Economic and Development Authority (NEDA) has approved the increase in project cost for the Mindanao Railway and Metro Manila Bridges Project to cover the extensions in scope and to speed up their implementation.

Approved was the increase in cost for the Mindanao Railway Project Phase 1-Tagum-Davao-Digos Segment (MRP-TDD) to P82.9 billion from the previously approved project cost of P35.9 billion in 2017 to cover changes in the cost of structural and construction works that comes with the extended scope.

ICC-Cabcom also approved the construction of the additional Davao Satellite Depot of the MRP-TDD.

Also approved was the cost increase to P7.9 billion from the previous approval of P4.3 billion for the Metro Manila Priority Bridges Seismic Improvement Project to 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.

The implementation period for this project was also extended by one year and eight months until 2023, inclusive of a one-year defects liability period.

“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 Pernia, who co-chaired the meeting.

Also tackled during the recent ICC-Cabcom meeting was the inclusion of the project management consultant in the scope of works for the PNR South Long Haul Project with a cost of P14.39 billion, inclusive of value added tax and contingencies.

It was reported in the same meeting that the NEDA Board confirmed the scope changes approved by ICC-CabCom in three projects on May 17.

These were: the implementation extension and loan validity extension of the Central Luzon Link Expressway (CLLEX) Project, Phase I of the Department of Public Works and Highways; 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; and the change in project scope and loan validity extension of the Metro Manila Wastewater Management Project (MWMP) of the Land Bank of the Philippines.