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    Value Engineering/Value Analysis:: The Philippine Experience

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    JM Panganiban
    The document summarizes the Philippine experience with value engineering/value analysis (VE/VA) studies administered by the National Economic and Development Authority (NEDA). It outlines NEDA's role in conducting VE/VA studies for major infrastructure projects from 2009-2020. These studies have identified cost savings opportunities ranging from 8-9.8% of total project costs. Challenges include limited local capacity in VE/VA. The way forward includes recommending VE/VA funds, expanding high-impact project coverage, monitoring study results, building local capacity, and further integrating VE/VA in project development.

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    Value Engineering/Value Analysis:: The Philippine Experience

    Uploaded by

    JM Panganiban
    63 views20 pages
    The document summarizes the Philippine experience with value engineering/value analysis (VE/VA) studies administered by the National Economic and Development Authority (NEDA). It outlines NEDA's role in conducting VE/VA studies for major infrastructure projects from 2009-2020. These studies have identified cost savings opportunities ranging from 8-9.8% of total project costs. Challenges include limited local capacity in VE/VA. The way forward includes recommending VE/VA funds, expanding high-impact project coverage, monitoring study results, building local capacity, and further integrating VE/VA in project development.

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    Original Title

    5667_PlantaGOPPresentationfortheVACAnnualConference2020

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    The document summarizes the Philippine experience with value engineering/value analysis (VE/VA) studies administered by the National Economic and Development Authority (NEDA). It outlines NEDA's role in conducting VE/VA studies for major infrastructure projects from 2009-2020. These studies have identified cost savings opportunities ranging from 8-9.8% of total project costs. Challenges include limited local capacity in VE/VA. The way forward includes recommending VE/VA funds, expanding high-impact project coverage, monitoring study results, building local capacity, and further integrating VE/VA in project development.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    63 views20 pages

    Value Engineering/Value Analysis:: The Philippine Experience

    Uploaded by

    JM Panganiban
    The document summarizes the Philippine experience with value engineering/value analysis (VE/VA) studies administered by the National Economic and Development Authority (NEDA). It outlines NEDA's role in conducting VE/VA studies for major infrastructure projects from 2009-2020. These studies have identified cost savings opportunities ranging from 8-9.8% of total project costs. Challenges include limited local capacity in VE/VA. The way forward includes recommending VE/VA funds, expanding high-impact project coverage, monitoring study results, building local capacity, and further integrating VE/VA in project development.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 20

    Value Engineering/Value Analysis:

    The Philippine Experience

    RODERICK M. PLANTA
    Assistant Secretary, NEDA Investment Programming Group
    October 2020
    Presentation Outline

    I. The Philippine’s Commitment on implementing VE/VA


    II. VE/VA Studies Administered by National Economic and
    Development Authority (NEDA)*
    III. Challenges/Opportunities
    IV. Way Forward

    *www.neda.gov.ph
    The Philippine Experience
    "Institution Strengthening of the National Economic and
    Development Authority (NEDA) and other Oversight
    Agencies on Value Engineering, Contract Preparation and
    Performance Monitoring of Infrastructure Projects"
    ✓ A reference for the Government of the
    Philippines (GOP) in reviewing and
    validating value analysis studies
    conducted by proponent agencies

    ✓ Shall help assure that the GOP is


    getting the best value for money in
    major development projects reviewed
    by the Investment Coordination
    Committee

    www. http://www.neda.gov.ph/wp-
    content/uploads/2014/01/Value-Analysis-
    Handbook.pdf
    The Philippine Context
    VE/VA and Risk Analysis in the Project Development Cycle

    Implementing Agency NEDA-ICC* Implementing Agency


    FEASIBILITY
    CONCEPT APPROVAL DESIGN CONSTRUCTION OPERATION
    STUDY

    Report of Report of Evaluation Tools Value analysis of variations


    value analysis value analysis Report of value analysis study
    study of options study of alternative Evaluation of Value of alternative variations to
    to get the designs to get the Analysis Reports minimize cost increases or to
    RIGHT RIGHT improve cost efficiency to get the
    PROJECT PROJECT RIGHT VARIATION

    Value Value
    analysis analysis at Value
    at options feasibility analysis of
    stage stage variations

    * Investment Coordination Committee (ICC)


    VE/VA Studies Administered by NEDA
    2009 Pilot Study
    VE/VA and Risk Analysis on Line 1 South Extension Project

    Resulted in

    8%
    cost savings

    Photo Source: Rappler


    2014
    VE/VA on the Study on Cebu Bus Rapid Transit (BRT) Project

    Recommended
    Depressed BRT Option

    Potential

    8.5%
    Total Project Investment Reduction
    2014
    VE/VA Study on Rail Gauge and Train Type
    Development of a Unit Cost Study for the Road Transport Sector

    Recommended
    to retain Narrow Gauge
    with dual gauge capability,
    implement Dual Mode Unit,
    and maintain Diesel
    Locomotive Technology for
    Freight Systems

    Photo Source: BusinessMirror


    2016
    VE/VA Study for the Automated-Guideway Transit (AGT) System
    As part of the Feasibility Study for the Project
    Supported the case for
    the implementation of an
    AGT system as a good
    compromise to serve as a
    feeder system in Metro
    Manila and decongest
    major thoroughfares in
    smaller urban areas.

    Photo Source: DOST


    2018 / 2019
    VE/VA for Infrastructure Development Projects
    Panay River Basin Integrated Development Project (PRBIDP)
    Derived alternatives
    with better value
    compared to baseline.
    Potential

    9.8%
    cost savings

    Photo Source: River Basic Control Office


    Capacity Building Activities

    Contract for the Advisory Services for Capacity Building


    on VE/VA Infrastructure Projects
    2015
    On-the-Job Capacity Building on VE/VA of Infrastructure
    Projects
    On-the-Job Capacity Building on VE/VA of Infrastructure
    2017
    Projects Phase 2
    Value Methodology Associate (VMA) Program and
    2019
    Certification for NEDA Technical Staffs and Managers
    VE/VA Studies Administered by NEDA
    2009 - 2020

    COMPLETED
    Project Specific 5
    Policy and Capacity Building 8
    ONGOING
    Project Specific 1
    2020 (Ongoing)
    VE/VA for the M'lang and Masbate Airport Development Projects

    Duration: 01 September
    2020 to 30 March 2021

    Conduct of VE/VA Study


    and VMF1 Workshop:
    October to November
    2020
    Challenges
    Challenges / Opportunities
    1. The VE/VA process as defined/applied by international institutions
    is not yet widely or fully recognized, understood and
    institutionalized in the Philippines.
    2. While local consulting firms have started equipping their
    personnel in VEVA, Government has to rely largely on foreign
    Certified Value Specialists (CVS) given local limited capacity.
    3. Decision makers have yet to fully realize the importance of
    VE/VA.
    Way Forward
    Way Forward

    1. Recommend VE/VA Funds in the annual budget.


    2. Enhance the project selection process focusing on high-impact
    projects.
    3. Establish a system for monitoring results of VE/VA studies
    specific for Infrastructure Projects
    4. Expand the coverage of capacity-building of personnel on VE/VA.
    5. NEDA to continue supporting the integration of VE/VA in the
    Government’s Project Development Cycle
    Value Engineering/Value Analysis:
    The Philippine Experience

    RODERICK M. PLANTA
    Assistant Secretary, NEDA Investment Programming Group
    October 2020

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