DPWH seeks restoration of fund cuts in proposed 2026 budget

The Department of Public Works and Highways (DPWH) on Saturday appealed to the Senate to restore amounts deducted from the agency’s proposed 2026 budget due to reductions based on the Construction Materials Price Data (CMPD).

The DPWH made the appeal a day before the Bicameral Conference Committee was set to deliberate on its proposed spending plan for next year.

“The DPWH has asked that it be allowed to implement project cost changes using the updated CMPD Special Issuance, in the exercise of its executive functions, to ensure proper project execution,” the agency said.

Days before the bicam—which was live-streamed for the first time on Saturday—the Senate, on final reading, slashed the DPWH’s proposed 2026 budget to P570.48 billion from P624.48 billion in the House of Representatives’ version.

Senate Finance Committee chairperson Sherwin Gatchalian said the major amendments included the use of adjustment factors, following President Ferdinand “Bongbong” Marcos Jr.’s directive to reduce the cost of construction materials for government projects.

He also said all infrastructure projects now carry station numbers and specific coordinates as safeguards against so-called ghost projects.

The President earlier ordered government agencies to cut project costs following revelations of a widespread practice among DPWH engineers of inflating prices to accommodate so-called “commitments” or kickbacks, including those allegedly intended for lawmakers listed as project “proponents.”

In its statement, the DPWH, however, said its motion for reconsideration before the upper chamber was “made to ensure that the detailed process of applying the new CMPD will be followed,,."

This is supposedly to "avoid inaccurate costing and potential project unimplementability, which may lead to underspending and related legal and administrative issues.”

To ensure strict compliance with the updated CMPD, the agency said it issued a Department Order mandating the following for DPWH implementing offices, including Regional and District Engineering Offices:

Follow a workflow to adjust all pay items in the Programs of Work (POW) using the updated CMPD;

• Revise all Approved Budgets for the Contract (ABCs);
• Require detailed documentation and quality assurance; and
• Ensure mandatory compliance before procurement.

“The Department assures the Senate and the House of Representatives that the updated CMPD will be strictly implemented at the Regional and District Engineering Offices, and that failure to comply with this Order shall be subject to administrative sanctions under existing Civil Service and Department rules, as well as the filing of appropriate administrative and/or criminal charges under relevant laws,” it said.—MCG, GMA Integrated News