Department of Public Works and Highways (DPWH) Secretary Vince Dizon on Sunday, December 14 has urged Congress to restore the funds that were slashed from its budget for next year, making senators skeptical of the agency’s sudden request.

Department of Public Works and Highways (DPWH) Secretary Vince B. Dizon (MB File)

Dizon was present during the second day of the bicameral conference committee meeting appealing to senators and congressmen to restore about P45-billion of the deducted amounts in the agency’s proposed 2026 budget.

Sen. Sherwin Gatchalian, chairman of the Senate Committee on Finance, defended the decision of the chamber to reduce the DPWH budget due to the Construction Materials Price Data (CMPD), though he invited Dizon to the hearing to explain the agency’s position.

Gatchalian pointed out that the adjustment was due to the statements of the DPWH itself using the data and inputs submitted by the agency to them, and the Senate is just supporting it.

“The budget should reflect the lower prices of the time, especially in this context where many of our countrymen are angry about the flood control issue, and many of our countrymen are angry about the overpriced issue. The Senate lowered the price, first to save money, and second to prevent overpricing within the budget,” Gatchalian stressed.

Sen. Loren Legarda agreed saying all the documents and facts came from the DPWH and the Senate finance panel did not put down the cost unilaterally or arbitrarily.

“We are willing to listen of course, we are reasonable people that is why we serve the people but let it be very clear, the senators did not invent the numbers, these are from the DPWH previous administration and the new incumbent administration,” she added.

But Dizon clarified that in appealing for the restoration of the P45-billion, the agency only wants to ensure that projects would be properly implemented.

He also cited President Marcos, saying that while the Chief Executive directed the agency to lower material prices to eliminate overpricing, the President is also conscious of the need to ramp up the country’s economy and infrastructure spending.

“We all know that in the second quarter, the economy grew only by four percent largely due to cuts in public expenditure, especially in infrastructure. The President does not want that to happen,” Dizon said.

Dizon, then, presented data to the bicameral panel showing how the reductions made under House Bill No. 4058 affected the project costs for asphalt overlay, citing the project budget for Region IV-B as an example.

The budget for Region IV-B was reduced from P41.15-million under the House version to P12.97-million, even though the actual cost of the program amounts to P31.53-million, resulting to an P18.56 million shortfall.

This, in effect, rendered the project underfunded, according to Dizon.

“Our fear is that the cut made using our adjustment factors, across the board, across roughly 10,000 projects in the GAB (General Appropriations Bill) may result inevitably in projects that will end up being unimplementable because of the way that they were applied to the various projects,” the DPWH chief said.

Sen. Francis “Kiko” Pangilinan also expressed puzzlement over Dizon’s request, recalling that during the Senate budget hearings, he admitted of the overpricing, and he himself suggeted to “cut the fat.”

Dizon clarified that the price of the projects in the 2026 budget will surely decreased based on the new cost of materials passed by the DPWH.

“That would surely be decreased. But the question would be who would make the reduction? Will it be Congress or will it be the Senate? Or will it be the Executive?”

The Cabinet official also vouched on the department order he earlier issued directing all DPWH offices—including regional and district engineering offices—to strictly comply with the updated CMPD.

Dizon earlier said he had issued a department order directing all DPWH implementing offices, including regional and district engineering offices, to strictly comply with the updated CMPD.

“So these won’t be new projects. So therefore, this is not an insertion…But I think, first of all, I understand the comments of our countrymen and I can't blame him. But all we want to say is that based on the President's order, the price of materials has been reduced. This will be implemented by the DPWH, if you see fit. If the Senate and Congress give the DPWH the opportunity to implement this, we will implement it before these projects are even put out to bid,” Dizon told the bicameral panel in response to Sen. Erwin Tulfo’s query.

“And if I may just read Mr. Chairman, Section 6 of the Department Order that we issued which reads as: mandatory compliance prior to procurement. It says here: the bids and awards committees must require certification from the concerned head of office attesting to the application of the updated CMPD,” he explained.

“Ensure that no procurement shall commence without the certification from the head of office and reject or return any project that is not jury certified. No procurement activity may proceed without meeting this requirement,” Dizon further said.

Gatchalian, meanwhile, agreed with Pangilinan’s view, saying senators do want the projects to be implemented. “We don’t want our economy to stop but we also don’t want overpricing items within the budget.”