DPWH eyes reducing cost of infra materials per region

The Department of Public Works and Highways (DPWH) is planning to cut the cost of materials for its projects per region as some were found to be overpriced, Secretary Vince Dizon said Monday.

Dizon said this during the Senate committee on finance’s deliberations on the proposed P625.78-billion of the DPWH for fiscal year 2026.

“‘Yung pinaka-importante na reporma na ginagawa namin ngayon -– tinawag na ito ni Senator Win Gatchalian, tinawag din ito ni Congressman Leandro Leviste — na kailangan ibaba natin ang cost of materials ng DPWH kasi marami dito ay mas mataas sa totoong cost of materials all over the country. We are also doing that now,” the DPWH chief said.

(The most important reform that we are doing now — Senator Win Gatchalian and Congressman Leandro Leviste already raised this — is to lower the cost of materials of the DPWH. Many of them were found to be higher than the real cost of materials all over the country. We are also doing that now.)

To recall, the DPWH initially proposed an P880-billion budget for 2026, but this was reduced to P625 billion after the removal of locally funded flood control projects amid the revelations of substandard or ghost projects.

Dizon, during the hearing, admitted that cost of materials in DPWH projects, such as steel and cement, were “really overpriced,” and this even differs per region.

“Sa aming initial studies, meron talagang overpriced na overpriced. And when I say very overpriced, above 20%. Merong mas mababa sa 20%... merong lampas 30% sa ibang rehiyon,” he said.

(Based on our initial studies, some materials are really overpriced. And when I say very overpriced, that’s above 20%. Some are below 20%, while others are over 30% in other regions.)

He said that the DPWH will be releasing a recommendation based on its assessment on the cost of materials in the next few weeks.

“This must be applied immediately, not just moving forward, but must be applied immediately, especially for those projects that are still ongoing procurement… Any savings that can be generated from these can be used even now for more important or equally important services for our people,” he explained.

“Very soon, we will be coming out with not just an across-the-board, but a region per region adjustment in the cost of materials throughout the country,” he added.

Dizon said this following the suggestion of Senator Loren Legarda that the DPWH implement a strategic 25% to 30% reduction across all its infrastructure line items “treating the adjustment as a cleansing or recalibration step rather than a punitive cut.” — RSJ, GMA Integrated News