Dizon: DPWH to save at least P60B with construction materials price cut

The Department of Public Works and Highways is poised to generate at least P60 billion in savings in 2026 following its move to reduce prices of some construction materials, Public Works Secretary Vince Dizon said Monday.

Dizon made the remarks as he announced the DPWH will be cutting the costs for several building materials such as cement, asphalt, and sheet piles for government projects after the agency found out that prices have been bloated to up to 74% in some regions.

“Dekada na ito na malalaki ang deperensya pero kailangan na natin gawin ito ngayon. Kapag naibaba na natin ito, mami-minimize natin ang opportunities for corruption,”said Dizon in a media briefing.

(Overpricing has been a practice for decades but we will stop it now. Once we stop this, there will be minimized opportunities for corruption.)

According to the DPWH construction materials price data (CMPD), some building materials in Region IV-B were overpriced at up to 74.89%. Similar cases were seen in Region III, where the prices of the materials were inflated by up to 57.61%; NCR with up to 57.40%; and Region IV-A with 56.10%, among others.

“Additional 1,600 kilometers of concrete road. Ang total monetary value nito is P60 billion estimated total savings in 2026 budget,” said Dizon.

(This will equate to an additional 1,600 kilometers of concrete road; and at least P60 billion in savings for our 2026 budget.)

Earlier, President Ferdinand Marcos Jr. tasked the 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.

“The directive of the President to do this is probably the single biggest reform in the DPWH. This will do a lot to curb reduction but still maintain quality,” said Dizon.  

During a Senate hearing, Dizon previously said the DPWH is planning to cut the cost of materials for its projects per region as some were found to be overpriced.—Sundy Locus/AOL, GMA Integrated News