THE Mindanao Railway Project, an ambitious effort to link most southern cities and provinces by rail, will now cost 125.25 percent more, after the interagency Investment Coordination Committee (ICC) Cabinet Committee (Cabcom) approved the increase for its Phase 1 (Tagum-Davao-Digos Segment).
In a recent meeting, Cabcom also approved the increase in the cost of the Metro Manila Priority Bridges Seismic Improvement Project, which seeks to make two major bridges, Lambingan and Guadalupe Bridge, fit to withstand the “Big One” or the earthquake that experts foresee could hit the capital region anytime.
Documents obtained from the National Economic and Development Authority (Neda) showed the Mindanao Railway Project Phase 1 will now cost over P80 billion, or a 125.25-percent increase from P35.91 billion.
Data showed the increase in cost was due to the addition of a Davao satellite depot. There were several options presented and the ICC Cabcom chose Option 3 without land development.
Option 3 without land development cost P80.887 billion to undertake. It also provides for a single track project, no second track provision and no provision for electrification.
The amount, however, did not cover the new depot, which, when added to the cost of Option 3, could bring the project up to around P82 billion.
The Mindanao Railway System is a 2,000-kilometer railway with two segments that will connect various provinces in Mindanao.
Bridges
Meanwhile, for the Metro Manila Priority Bridges Seismic Improvement Project, the ICC Cabcom approved an 84-percent project cost increase to P3.64 billion.
Eight reasons are cited for the increase in project cost, topped by the additional length for the steel pipe pile and steel pipe sheet needed for the Guadalupe Bridge, which will require a P1.645-billion cost increase or 45.17 percent of the increase in cost.
Other reasons for the cost increase: the funds needed to construct a detour bridge at Guadalupe to facilitate the traffic flow during construction, which will require an additional P299.31 million or 8.22 percent of the cost increase; the use of high-strength steel for the superstructure of the Lambingan Bridge, P158.83 million additional or 4.36 percent of the cost increase; and approach road at the Lambingan Bridge, P152.9 million or 4.2 percent of the increase in cost.
The list also includes higher import and value-added taxes worth an additional P433.22 million; contingencies, P403.14 million; administration costs, P235.78 million; and demolition costs, P170.8 million.
1 comment
Ano nang nangyari doon sa rason na kaya na delayed ang project na dapat ang simula daw ng construction ay first quarter ng 2019 ay dahil babaguhin at gagawing double track at electrified ngayon ganyan ang kalalabasan another “pwede na”mentality kaya nga inferior ang quality ng mga infustructures natin kumpara sa ating katabing bansa.