Design changes up MRT-4 cost by P28 billion

MANILA, Philippines — The government will spend about P28 billion more for the construction of the Metro Rail Transit Line 4 (MRT-4) due to changes in the project’s design and technology.

Documents obtained by The STAR showed that the government will now require at least P87 billion to deliver the civil works and procure the systems and trains for MRT-4.

The Department of Transportation (DOTr) had expected to spend just P59.3 billion to build the rail line that will run from Quezon City to Taytay, Rizal.

Broken down, the DOTr will invest P2.32 billion for the early works of MRT-4. Bulk of that amount, or P1.03 billion, will be used for structural demolition and site clearing operations in the areas where the railway will stand.

The DOTr will pay $865 million or P48 billion to the contractors tasked to deliver the depot, main line, stations and receiving substations. It will also allocate an additional budget for the 600-meter elevated walkway connecting MRT-4 with MRT-3.

The DOTr will also need $674 million or P37 billion for the electromechanical and track works, as well as the rolling stock supply of MRT-4.

MRT-4 project manager Jomar Ramos said the cost of the project has gone up due to the technical changes made by Spanish multinational IDOM in its consultancy work.

“The cost has increased due to the change in technology after the consultant conducted an update of the demand study,” Ramos told The STAR.

However, Ramos said the DOTr has yet to finalize how much the increase in project cost would be. Once identified, the Department of Finance will make final adjustments in the loan request of the government for MRT-4.

The MRT-4 will be co-funded by the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank. The Philippines has a pending $900 million request for a loan from the ADB to finance the construction of the rail line.

The ADB will send a fact-finding team to examine the viability of the project from Aug. 28 to 31 and will hold a management review meeting on Oct. 30.

The government hopes to sign the loan contract for MRT-4 with ADB within the year, as it looks to start the procurement of contractors toward the close of 2023.

On the other hand, Ramos said the government is pushing through with its plan to make MRT-4 a metro rail system similar to the heavy train, rapid transit structure of Light Rail Transit Line 2.

Prior to this, the DOTr had planned on making the MRT-4 a monorail system requiring less space for its operations. The agency decided to follow IDOM’s recommendation of turning the railway into a metro rail to ensure that passenger demand in the alignment will be served.

Based on the timetable, the DOTr should commence its early works by the first quarter of 2024. Between 2023 and 2024, it will procure the project management consultancy for the project and bid out contract packages for the civil works and railway systems and trains.

Construction should begin by the third quarter of 2024, with full operations slated for 2028.

The MRT-4 will extend for 12.7 kilometers, made up of 10 stations, covering two cities in Metro Manila (Quezon City and Pasig City) and two municipalities of Rizal (Cainta and Taytay).

The railway – which will be connected with MRT-3 and the Metro Manila Subway – will cut travel time between Taytay and Ortigas to 30 minutes.