To cost ‘much less than P50 billion’
MANILA, Philippines — The construction of a new Bangko Sentral ng Pilipinas (BSP) Complex in Clark will cost “much less than P50 billion” and financed entirely from the central bank’s own reserves, Monetary Board member Benjamin Diokno said.
In an interview with The STAR, Diokno, who was BSP governor when the project was initiated, said the final price tag would be known only after an open, competitive bidding scheduled for October to November, with project completion targeted “on or before June 30, 2028.”
“The estimated cost of the project has gone up since it was conceived, designed and approved by the Monetary Board during my term (2019–2022). But the estimated cost is much less than P50 billion,” Diokno said, countering claims the project could reach P50 billion.
Diokno said the project is already fully funded from reserves set aside by the BSP in previous years. It is not dependent on the annual General Appropriations Act.
“I assure the potential contractor(s) that there is zero corruption at BSP, they will be paid within 15 working days after each billing and the project will be awarded through an open, competitive bid,” he added.
The 2026 National Expenditure Program does not carry any budgetary allocation for the BSP project, consistent with Diokno’s statement that the complex will be built without national government funding.
The clarification comes amid heightened public scrutiny of government infrastructure spending following recent controversies over “ghost” or questionable projects, including large flood-control programs flagged by the Senate Blue Ribbon Committee.
Diokno also defended the need for a new headquarters outside Metro Manila, citing both business continuity requirements and climate-related risks. He noted that as early as 2003, the Monetary Board – the policy-setting body of the BSP – directed banks and financial institutions to maintain back-up operations “far enough (at least 20 kilometers away) from where the primary operations are located.”
“Recent studies and events show that we should consider more consequential risks other than cyber risks and data breakdowns, such as climate change risks including the sinking of a large part of the metropolis and severely damaging earthquakes,” he said.
He also pointed to a 2021 Greenpeace study warning that Manila Bay is rising at 13.24 millimeters per year while the city itself is sinking by 10 centimeters annually, exposing billions of dollars in economic activity to flooding by 2030.
The former BSP chief also framed the relocation as a contribution to decongesting Metro Manila, citing a 2022 Japan International Cooperation Agency study projecting that traffic congestion costs could nearly double to P9.4 billion a day by 2027 if no action is taken.
New Clark City (NCC), he added, offers advantages over other potential sites such as Silang, Cavite, including integrated transport links, disaster-resilient infrastructure and sustainable urban planning.
“Unlike many cities in the Philippines (such as, for example, Manila, Cebu, Baguio), the NCC has the benefit of urban planning which incorporates sustainability, resilience and community engagements as foundational principles,” Diokno said.
The complex will house the BSP’s new security plant and other key operations. Procurement for design consultancy services for the “Restricted Zone,” where the currency production facilities will rise, is already underway, with an approved budget of P75.7 million for the architectural and engineering contract funded from BSP’s corporate resources.
Diokno said he chairs the Monetary Board committee overseeing construction and expressed confidence the project would continue under current BSP leadership.