The Department of Public Works and Highways (DPWH) could save as much as ₱60 billion in its proposed 2026 budget following President Ferdinand “Bongbong” Marcos Jr.’s directive to drastically reduce construction material costs, Public Works Secretary Vince Dizon announced on Monday.
In a press briefing, Dizon described the President’s order to cut the cost of all DPWH projects by up to 50% as the agency’s “biggest reform” to date — a major step toward curbing corruption and inflated pricing in government infrastructure spending.
Marcos issued the directive after controversies surrounding overpriced flood control projects raised concerns about systemic irregularities in infrastructure procurement.
“During the Senate hearing, sinabi ko nga marami nang DPWH secretary ang dumaan, marami nang budget ng DPWH ang dumaan, deka-dekada na, pero andyan pa rin ang overpriced custom materials… Alam natin na hindi yan ang presyo sa merkado, mas mataas ang presyo dito kesa sa presyo sa merkado,” Dizon said.
According to DPWH data, asphalt recorded a -50% variance in average price per metric ton nationwide — with some rates in Mimaropa ranging from nearly ₱6,000 to over ₱23,000.
Other materials also showed wide price gaps: sheet piles at -36%, gravel grade 1 and sand both at -32%, while reinforcing steel bars (grade 60 and grade 40) posted -32% and -30% variances, respectively. Cement prices had a -10% variance, and ready-mix concrete showed a -7% difference.
“Kapag nababa na natin ito, medyo, kahit papano, sabi nga ni Pangulo, mami-minimize natin ang opportunities for corruption… Kasi dati, dahil overpriced, madaling mangurakot,” Dizon explained.
He added, “Doon sa budget niyan, overpriced. Pero pag binili mo, alam mong hindi naman ‘yun ang presyo eh. So saan napupunta ‘yung pera ngayon? Obviously, in all likelihood, napupunta yan sa pagnanakaw.”
Dizon clarified that the current figures do not yet include construction materials for schools, hospitals, and other public facilities, but said a comprehensive report would soon be released.
The DPWH chief also revealed plans to coordinate with the Department of Transportation (DOTr) and the Department of Agriculture (DA) to standardize material costs across government projects.
“Hindi lang sa 2026 budget namin ito ia-apply. ‘Yung order ko applies this even for 2025 projects na hindi pa na-award, na wala pang kontrata, na prino-procure pa lang. Yung mga projects na prino-procure pa lang, na inabutan nito, magbabago na ‘yun. So 2025 pa lang, magkaka-savings na,” Dizon said.
If fully implemented, the cost-cutting directive could lead to billions in savings, helping fund more infrastructure projects while tightening the government’s grip on corruption within the sector.