Ched Rick Gatchalian

DPWH sees P60 billion in savings as it addresses overpricing of construction materials

Article (news)

Andrea Taguines

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1762153053747avif.png" style="width:960px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left">The Department of Public Works and Highways (DPWH) building is seen in this photo taken on August 25, 2025. Jonathan Cellona, ABS-CBN News</span></span></span></div><div><br/></div><p>MANILA — The Department of Public Works and Highways (DPWH) on Monday said it expects to save up to P60 billion in 2026 as it corrects the cost of overpriced construction materials to match real market prices.</p><p>President Ferdinand Marcos Jr. earlier ordered the agency to <a href="https://www.abs-cbn.com/news/nation/2025/10/25/marcos-jr-orders-dpwh-to-lower-material-costs-for-infra-projects-by-as-much-as-50-pct-1226">bring down the cost of materials for government infrastructure projects </a>by as much as 50 percent to minimize opportunities for corruption.</p><p>But after assessing the prices of cement, asphalt, sheet piles, and steel bars, among other things, across the different regions, Dizon said some materials were seen to be overpriced by as much as 70 percent.</p><p>For instance, in Region IV-B or MIMAROPA, the price set by the DPWH for asphalt was at more than P23,000 per metric ton. The new DPWH leadership found that its market price was below P6,000.</p><p>“Talagang napakalayo. Kaya sinabi ko, this is probably the single biggest reform ever sa DPWH. Kasi dati, dahil doon sa budget ay overpriced, so saan napupunta ang perang yan? In all likelihood, napupunta yan sa pagnanakaw,” he said.</p><p>Dizon said he has also signed a Department Order institutionalizing the new price guide, which is used to come up with the overall cost of infrastructure projects.</p><p>“Kahit na sino pang administrasyon, hindi na pwedeng baguhin yan,” he said.</p><p>Dizon also assured the public that even with lower material costs, the quality of DPWH projects will not be compromised.</p><p>“Yung mga presyong nakita niyo, (galing sa) accredited suppliers yan. Yan din ang mga supplier ng SM, ng Megaworld, ng Robinsons, ng San Miguel, ng Metro Pacific,” he said.</p><p>“If the private sector can build a road at those prices, why can’t government do the same? So sisiguraduhin natin na kalidad pa rin ito,” added Dizon.</p><div><br/></div><div><strong>IMPACT OF LOWER COST OF MATERIALS</strong></div><div><br/></div><p>According to Dizon, based on their initial study, the DPWH will be able to build more key infrastructure as a result of this new reform.</p><p>“Dagdag na 1,600 na kilometro ng kalye yan dahil lang sa pagbaba natin ng materyales so you can just imagine yung magagawa pa, kasama na mga farm-to-market roads dyan,” he said.</p><p>“Aspalto naman, 1,000 additional kilometers of asphalt ang pwede nating idagdag dyan, so yung mga bako-bako nating kalsada dyan na nakikita natin all over the country (maaayos na),” added Dizon.</p><p>As for the rest of the savings, Dizon said he will leave it up to Congress to decide where to reallocate these funds.</p><div><a href="https://www.abs-cbn.com/news/nation/2025/10/20/gatchalian-says-p271-b-red-flags-in-2026-dpwh-budget-2019">Gatchalian says P271-B &#x27;red flags&#x27; in 2026 DPWH budget</a></div><p>“Ang napag-usapan nung budget hearing ay magkakaroon ng provision sa GAA (General Appropriations Act) para alamin kung saan mapupunta ang savings na mage-generate nito sa 2026 budget. The President has also given his suggestions already,” he said.</p><p>Dizon added that the policy will also already apply to infrastructure projects that have yet to be bid out this 2025.</p><div><br/></div><div><strong>RELATED VIDEOS</strong></div><div><br/></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/CTz8aDj5HNQ?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/Sl1daHU6e7M?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>DPWH Secretary Vince Dizon said some materials were seen to be overpriced by as much as 70 percent.</p>

DPWH Secretary Vince Dizon said some materials were seen to be overpriced by as much as 70 percent.