CAGAYAN DE ORO CITY – The Northern Mindanao Regional Development Council (RDC-X) Executive Committee, during its special meeting on 12 May 2022, endorsed the proposed change in scope of works and increase in cost of the Flood Risk Management Project for Cagayan de Oro River (FRIMP-CDOR) to the NEDA – Investment Coordination Committee for approval.
The FRIMP-CDOR aims to strengthen the resilience of communities along the Cagayan de Oro River. The project implemented structural and non-structural measures for flood risk management, which are designed to withstand flood damage with intensities similar to that caused by Tropical Storm Sendong in 2011. The project commenced in 2019 and is expected to be completed by 2023.
The Department of Public Works and Highways, as the implementing agency, proposed a 46.66 percent increase in cost from the PhP8.549 billion as originally approved in 2016 to PhP12.538 billion.
Among the reasons for the increase include the difference between the original civil work cost estimates based on the feasibility study using the 2014 price level and the revised cost based on the actual bid at 2018 price levels. Further, the year-on-year inflation rate significantly escalated the cost of materials, labor, and other inputs.
Additional works also had to be undertaken which were not considered in the original plan such as the construction of a resettlement site for the affected communities, revision of engineering designs, and construction of additional facilities to enhance the overall project design.