Escudero seeks price analysis system for infra projects

Senator Francis “Chiz” Escudero has filed a bill seeking to adopt a Detailed Unit Price Analysis (DUPA) system which aims to ensure that appropriations for infrastructure projects reflect actual market costs and are backed by proper documentation.

Under Senate Bill No. 1467, filed on October 27, all infrastructure projects of national government agencies and instrumentalities shall ensure that appropriations for infrastructure projects are supported by documentation that establishes the technical and financial basis for their determination.

Such documentation shall be contained in the DUPA, which provides a detailed itemization of the cost and quantity of labor, equipment, materials, and other expenses needed for a project. 

This documentation will also be required before any project is included in the National Expenditure Program (NEP) and the General Appropriations Act (GAA), and before any procurement or fund release can proceed.

The measure will also mandate the creation of a national reference manual for the DUPA, which shall be updated at least once every three years. The manual will be prepared by the Department of Public Works and Highways (DPWH), in collaboration with relevant agencies. 

The DPWH shall also be tasked to design and implement a capacity building program for government engineers, budget officers, auditors, and other personnel involved in preparing and evaluating budget and project proposals. 

Escudero said the bill was in response to the call of President Ferdinand “Bongbong” Marcos Jr. 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.

“By establishing this uniform and transparent method of estimating appropriations, this measure can deter unscrupulous budget practices, promote fiscal discipline, create fiscal space for other priority programs and projects, and provide a technical and financial safeguards against corrupt and inefficiencies in public spending,” Escudero said in the bill’s explanatory note. 

“Ultimately, this intervention will serve as a vital mechanism in strengthening public trust in the processes and institutions of government, grounded on the principle that every peso spent by the people should be translated into tangible outcomes for the benefit of the public,” he added. 

Marcos previously said that he directed DPWH Secretary Vince Dizon 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 P35 billion to P45 billion. 

Dizon had said the DPWH is planning to cut the cost of materials for its projects per region as some were found to be overpriced.—AOL, GMA Integrated News