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Manila Bulletin devider Philippines devider National devider DPWH slashes construction material costs, eyes ₱60 B in savings

DPWH slashes construction material costs, eyes ₱60 B in savings

Published Nov 3, 2025 03:32 pm

At A Glance

  • DPWH announces major cut in construction material costs.
  • Potential savings of up to ₱60-B in 2026.
  • Action follows President Marcos' directive to reduce material costs by up to 50%.
  • Over 60 individuals linked to overpricing in flood control projects may face charges.
  • Savings could fund additional infrastructure and priority sectors such as healthcare and education.
Department of Public Works and Highways (DPWH) Secretary Vince B. Dizon (Mark Balmores/MB)
Department of Public Works and Highways (DPWH) Secretary Vince B. Dizon (Mark Balmores/MB)
The Department of Public Works and Highways (DPWH) announced on Monday, Nov. 3, that it is slashing construction material costs and cracking down on overpricing and corruption in government projects, potentially saving up to ₱60-B in 2026.
The move follows President Marcos' directive for the DPWH to cut material costs by up to 50 percent.
Describing the initiative as “one of the single biggest reforms in DPWH,” Secretary Vince Dizon vowed to overhaul procurement and pricing practices.
“Ayusin na natin ang presyuhan sa DPWH, ang daming mga scandal sa korapsyon ang daming nasisiwalat pero nauulit naman ulit (Let’s fix pricing in the DPWH, many corruption scandals have been exposed but they keep recurring),” he stressed.
The department will closely monitor and standardize prices of essential construction materials, including cement, asphalt, steel sheet piles, gravel, and reinforcing steel bars, after uncovering a “massive discrepancy” between market rates and DPWH project costs.
“If the private sector can build a road at those prices, why cannot government do the same?” Dizon asked.
“No other reason except for corruption,” he added.
In one cited case, asphalt costs in Region IV-B reportedly reached over ₱23,000 per metric ton, which the DPWH now says can be reduced to less than ₱6,000.
Accountability and legal action
DPWH Usec. Rico Bernabe is reviewing potential legal liabilities for overpricing, with some cases already filed, including that of former Ako Bicol Rep. Zaldy Co, now under the Ombudsman’s review.
Dizon said he is “very confident” that around 60 individuals linked to alleged anomalies in flood control projects will face charges.
“Marami ang magpapasko sa kulungan (Many will spend Christmas behind bars),” he added, while the department will also pursue recovery of assets from those responsible.
₱60-B in potential savings
The reforms could save up to ₱60-B in the 2026 national budget, enough to build 1,600 kilometers of concrete roads and 1,000 kilometers of asphalt overlay nationwide.
Potential savings could also be redirected to fund other infrastructure projects.
They could additionally support vital sectors such as healthcare and education, enhancing the government’s delivery of public services.
The initiative will also cover unawarded 2025 projects, ensuring that more than half of current material cost discrepancies are eliminated by aligning prices with market rates.

Related Tags

DPWH construction materials cost government projects overpricing President Marcos
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