DPWH denies restoring higher prices, reviving scrapped projects
MANILA, Philippines — Department of Public Works and Highways (DPWH) Secretary Vince Dizon has refuted claims that his agency is restoring higher construction prices or seeking to revive scrapped projects, saying it is only asking Congress to return about P45 billion in budget cuts so projects can proceed properly under the updated Construction Materials Price Data (CMPD).
Dizon made the clarification on the second day of bicameral conference committee deliberations on the proposed 2026 national budget. He said misleading claims circulated on social media after the DPWH released a statement on his letter to Sherwin Gatchalian, chair of the Senate finance committee, outlining the proper application of the updated CMPD and the process for adjusting project budgets under the agency’s 2026 proposal.
“Before I begin, I want to correct some of the reports we’ve been hearing. First of all, it is not true that the DPWH is restoring the original prices. That is not true. I saw it on social media yesterday after we released our statement, and I’ve heard it again today. The prices that were already lowered will not be returned to the old, higher rates,” Dizon said, speaking inappropriately mix of Filipino and English, during the bicameral deliberations.
“Second, the DPWH is not restoring any projects. None. Whether flood control projects or any other projects, our correspondence with Senator Gatchalian and the House contingent does not state that any removed projects are being reinstated. No flood control projects, bridges, roads, or multipurpose buildings are being brought back,” he added.
Dizon said the agency is only requesting the restoration of budget cuts to ensure projects are properly implemented.
Citing President Ferdinand Marcos Jr., Dizon said that while the Chief Executive instructed the DPWH to lower material prices to eliminate overpricing, he is also “conscious of the urgent need to ramp up infrastructure spending and implementation.”
“We all know that in the second quarter, the economy grew by only 4 percent, largely due to cuts in public expenditure, especially in infrastructure. The President does not want that to happen,” Dizon said.
To support his request, Dizon presented data to the bicameral committee showing how project costs for asphalt overlay were affected by reductions made under House Bill No. 4058 following the Senate’s third reading and the issuance of the CMPD.
In Region IV-B, the project budget was reduced from P41.15 million under the House version to P12.97 million, a 68 percent cut, despite the actual cost under the program of work amounting to P31.53 million. Dizon said this resulted in a funding shortfall of P18.56 million, rendering the project underfunded.
In contrast, an asphalt overlay project in Central Visayas saw only a minimal reduction—from P25.545 million to P24.76 million, or 3 percent—while its actual cost stood at P16.03 million, resulting in an excess of P8.74 million.
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.
READ: DPWH asks Senate to restore deductions in its 2026 proposed budget
The DPWH chief also cited the mandatory workflow that implementing offices must follow when applying the updated CMPD, including:
- adjusting all pay items in the programs of work using the updated CMPD;
- revising all approved budgets for the contract;
- requiring detailed documentation and quality assurance; and
- ensuring mandatory compliance prior to procurement.
Under Department Order No. 10 dated December 11, 2025, Dizon said personnel who fail to comply “shall be subject to administrative sanctions under existing Civil Service and Department rules, including but not limited to reprimand, suspension, and dismissal, depending on the gravity of the violation.” /jpv
