The Investment Coordination Committee-Cabinet Committee (ICC-CabCom) of the National Economic and Development Authority (NEDA) Board on July 10 approved the increase in project cost of 131% for the first phase of the Mindanao Railway Project (Tagum-Davao-Digos).
The project cost amounting to P82.9 billion—from the previously approved cost of P35.9 billion in 2017—covers changes in the cost of structural and construction works, among others.
The committee also approved the addition of the Davao Satellite Depot to the project’s terms of scope.
The first phase of the project comprises one of the three segments of the Mindanao Railway Project. Construction of the more than 100 kilometers of railway is targeted to start next year, and to be completed by 2022.
Last May, Socioeconomic Planning Secretary Ernesto M. Pernia said the railway project will be financed by China.
The ICC-CabCom also noted the inclusion of the P14.39 billion in cost of the project management consultant, inclusive of value-added tax and contingencies, to the scope of works for the Philippine National Railways South Long Haul Project.
“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,” Pernia, who co-chaired the meeting, said.
Meanwhile, it was reported in the same meeting that the NEDA Board confirmed ad referendum on May 17 the ICC-CabCom’s approval of the implementation of the extension of the Central Luzon Link Expressway (CLLEX) Project, Phase I of the Department of Public Works and Highways, as well as the extension of the project’s loan validity.
