Marcos orders DPWH: Slash cost of construction materials for gov't projects by 50%

President Ferdinand "Bongbong" Marcos Jr. has tasked the Department of Public Works and Highways (DPWH) to reduce the cost of construction materials for government projects by at least half amid the ongoing probe into the alleged corruption in flood control projects.

"In order to ensure that the costs of DPWH will reflect the costs of the market and to ensure that the people's money is correctly spent, I have directed the DPWH Secretary to bring down the cost of materials by as much as 50% which will result in savings in the Capital Outlay spending of at least 35 to 45 billion pesos," Marcos said in his pre-departure speech on Saturday at Villamor Air Base in Pasay City.

The President departed for Kuala Lumpur in Malaysia to attend the upcoming 47th Association of Southeast Asian Nations (ASEAN) Summit and Related Summits.

"This is money that we can use for services such as health, education, and food, that our people desperately need," Marcos said.

The Chief Executive said the DPWH continues to review projects and contracts and to file cases against those who have perpetrated corruption. 

"In addition, DPWH has looked into the pricing of construction materials and found that several items, like asphalt, steel bar, cement, were overpriced by as much as 50%… Actually, there are some egregious examples which are even more than that," the President said.

Last Monday, DPWH Secretary Vince Dizon said his department is planning to cut the cost of materials for its projects per region as some were found to be overpriced.

'Single biggest reform'

In an interview with reporters following the President’s departure, Dizon described Marcos’ directive as "the single biggest reform ever in the DPWH."

The Public Works chief said that as early as several weeks ago, the DPWH has already begun reviewing and benchmarking the costs of construction materials.

"At tama po ang Pangulo, marami po talaga dito na talagang ang layo ng presyo sa merkado ng iba't ibang materyales. In the next few days, ia-announce na natin ang mga pagbabagong gagawin natin sa presyo," Dizon said.

(The President was right, there was really a huge discrepancy in the prices of materials in the market. In the next few days, we will announce the changes we will be implementing on the prices.)

He said the agency’s cost review and benchmarking could also be adopted by other departments in government.

The DPWH is at the center of the flood control projects corruption scandal involving its former officials, lawmakers, and private contractors who allegedly pocketed billions of pesos worth of public funds through implementing "ghost" or non-existent projects as well subpar flood control structures. — VDV, GMA Integrated News