DPWH to release funds in lump sum for quicker project completion

THE Department of Public Works and Highways (DPWH) said it would release funds for infrastructure projects in a lump sum instead of in tranches to prevent delays in implementation. Public Works Secretary Vince Dizon, in a press briefing, said the move is in line with ongoing reforms in the budgeting and implementation of government projects to curb corruption. He said lessons have been learned from the flood control scam in which trillions of pesos in public funds were stolen through ghost, substandard and incomplete projects. “Why do it in installments? Let’s just get straight to the point. Isn’t it because the funds that are being put into projects are already being looted? That’s the truth,” Dizon said in Filipino. Dizon said President Ferdinand Marcos Jr. wants all funds needed to complete priority projects by next year to be fully included in the national budget. “The President’s commitment is that whatever funds are needed to finish the projects by next year must already be put in the budget,” he added. Dizon made the remarks during his inspection on Tuesday of the ongoing construction of the 20-story building of the Philippine Cancer Center in Quezon City, which is scheduled to be completed in 2027. He said the P3.8-billion project still needs P1.5 billion to P1.8 billion to ensure its completion next year. “As per instruction of the President, we should immediately request the said amount in the 2027 national budget to ensure that it will be finished as scheduled. That will be our priority,” Dizon added. Under his watch, Dizon vowed the DPWH would implement only quality projects, using the right specifications of materials at the right price. “That’s possible — the price can be right, it can be fast, it can be quality,” he said. He added that all heads of implementing offices of the DPWH are under strict orders to adhere to the latest guidelines in the procurement of construction materials, which use existing market values in determining prices for all government projects. Dizon recently issued the Construction Materials Price Data (CMPD), which sets guidelines and procedures for establishing the prices of construction materials, labor rates and equipment rental rates pursuant to Department Order 125, Series of 2025. “The Construction Materials Price Data is recognized as one of the primary references in determining the unit cost of pay items in all infrastructure projects of the department,” he said. Effective immediately, Dizon said the cost of construction materials for all government infrastructure projects will be based on prevailing market prices. Dizon noted that prior to the CMPD, there was a marked difference of up to 50 percent between the cost of materials in DPWH projects and actual market values, saying this was one of the root causes of corruption in government projects. “The CMPD will eliminate overpricing and standardize material costs per region, reflecting the actual market cost of materials,” he said. The cost-cutting measure, he added, will give the government P60 billion in savings from the 2026 national budget, which could instead be spent on education and health, among others. He said the P60 billion could fund the construction of an additional 1,600 kilometers of concrete roads and 1,000 kilometers of asphalt overlay. The reform, he said, is meant to ensure public funds are used efficiently and that prices of construction materials for government infrastructure projects reflect real market conditions.