The country’s infrastructure program faces potential cost increases from rising global oil prices but construction projects nationwide will continue as planned, Department of Public Works and Highways (DPWH) Secretary Vince Dizon said Tuesday, March 10.

Dizon said many government infrastructure projects rely heavily on fuel-powered equipment, which could drive up construction costs if fuel prices continue to rise.

He added that this applies to a wide range of government works, including roads and bridges, where heavy machinery is essential for construction.

“Ang atin pong mga proyekto na kailangang matapos—mga kalye, mga tulay, at iba pang infrastructure—marami diyan ay dependent sa fuel lalo na ang heavy equipment (Many of our projects that need to be completed—roads, bridges, and other infrastructure—rely heavily on fuel, especially for heavy equipment),” he said.

He also noted that higher oil prices could trigger increases in the cost of key construction materials such as steel, cement, and asphalt.

Global oil prices are hovering around $120 per barrel and diesel prices continue to climb, adding to potential cost pressures on government projects.

Despite these challenges, Dizon said government contracts include price escalation provisions that allow adjustments when fuel or material costs rise unexpectedly.

Price adjustments or variation orders may be applied for new projects this year.

Ongoing projects could also be granted variation orders to accommodate unforeseen cost increases.

He emphasized that such adjustments must be implemented properly and should not be abused.

The DPWH chief also cited speculation in global markets and tensions in the Middle East as factors contributing to rising prices of construction supplies.

Still, Dizon stressed that infrastructure development across the country will proceed in line with President Ferdinand Marcos Jr.’s directive to further intensify the national infrastructure program despite global economic uncertainties.

Dizon made the remarks while inspecting road works along the Maharlika Highway in Eastern Visayas, including sections between Catarman in Northern Samar and Tacloban City, where ongoing construction has already improved travel time in some areas.

He added that the government is working to ensure smoother travel along major routes ahead of the expected increase in travelers during the Holy Week break.

Meanwhile, the DPWH continues to process payments to contractors for completed project milestones.

Dizon said disbursements still depend on the release of cash authority from the Department of Budget and Management (DBM).

“Ngayon pong first quarter, nasa 50 percent pa lang po dahil hinihintay pa po natin 'yung cash galing sa DBM. Halos wala pang 50 percent ang ating nababayaran. Pero ngayon meron na hong dumating ulit kahapon, meron na tayong in-expect ulit this week (As of the first quarter, we have only paid around 50 percent because we are still waiting for funds from the DBM. Almost half of our payments have yet to be made. But some funds arrived yesterday, and we are expecting more this week),” he said.

Once funds are released and project accomplishments are verified, Dizon assured that payments to contractors will proceed.