COA: P1.1-B Macapagal Boulevard not overpriced

The most expensive stretch of road in the country is not after all that expensive, according to government auditors.

A six-member Commission on Audit team has concluded that the P1.1-billion, 4.9-kilometer President Diosdado Macapagal Boulevard at the reclamation area in Pasay City — a project of the scandal-ridden Public Estates Authority (PEA) — has not been overpriced as asserted by PEA board member Sulficio Tagud Jr.

Tagud’s lawyer Leonard de Vera, however, shrugged off the COA report, saying that COA has reversed itself several times.

"It would file cases before the court based on their reports. And then when the prosecution would request the court for and be granted a review of an audit, the COA would admit that it was wrong," he told The STAR in a telephone interview.

De Vera admitted he has not yet seen a copy of the report but said he remains confident Tagud would be able to prove his claim.

Copies of the COA report were sent to senators yesterday. The Senate Blue Ribbon Committee investigated the alleged irregularity but has not come up with its findings.

The controversial stretch of road named after President Arroyo’s late father is just 2.3 kilometers in length but was built by contractor J.D. Legaspi Construction at a cost of P837.3 million.

Two other contractors were hired to build two other portions of the road. The SM Group constructed a 1.4-kilometer stretch for P132.5 million, while R-1 Construction built a 1.2-kilometer portion for P164.8 million.

On a per linear meter basis, the J.D. Legaspi portion cost taxpayers P302,472.18; the SM stretch, P54,139; and the R-1 part, P86,023.15.

Tagud’s complaint of overpricing and plunder against fellow PEA officials was based on the huge disparity between the cost of J. D. Legaspi and the two other contractors.

Tagud claimed the project was overpriced by about P600 million.

But in its report, the COA team said its "technical evaluation of the project shows that the total project cost, including the price adjustments, is reasonable and therefore not overpriced."

"The project is constructed in accordance with the approved design, scope of work and as-built plans and specifications. The audit team, therefore, finds no sufficient basis to support the allegation of overpricing," it said.

The team conducted "borehole tests" and examined the road materials used in coordination with the Bureau of Research and Standards of the Department of Public Works and Highways.

It said the portion built by J.D. Legaspi cost much more because the contractor did more work "to attain the required soil consolidation and stability."