Senators eye “across-the-board” 15-30% DPWH price cut

Several Senators supported an “across-the-board cut” of 20 to 30% in the price of projects of the Department of Public Works and Highways (DPWH) during the agency’s Senate budget hearing on Monday, October 20, chaired by Senator Sherwin Gatchalian.

According to DPWH Secretary Vince Dizon, “Iyong pinakaimportante na repormang ginagawa po namin ngayon, itinawag na po ito ni Senator Win Gatchalian, itinawag na din po ito ni Congressman Lean Leviste na kailangan ibaba natin ang cost of materials ng DPWH, kasi marami po dito ay mataas sa totoong cost of materials all over the country. We are reviewing the CMPD and also the DUPA, which is based on the CMPD, the cost of materials, kailangan po natin review-in ito, in fact, ito po ay ginagawa ngayon natin ongoing, at malapit na po tayong ilabas ito sa mga susunod na linggo.”

Senator Loren Legarda proposed “an across-the-board reduction say of 25-30% on all DPWH infrastructure line items.” “If this is 50% overpriced, or even a 25%, how can we in conscience work on the budget or affix our signature on an overpriced budget? Kung sasabihin natin, hindi namin ginawa iyong 2026 budget, sa 2027 pa ito, hindi ko po malalagdaan ang aking pirma sa 2026 General Appropriations Act kung hindi natin binaba iyong presyo ng line items, so iyung across-the-board, magandang pahiwatig po ito na tayo ay seryoso sa reporma sa ating budgetary process,” she said.

“The fact is, materials cost in DPWH are really overpriced… Sa aming initial studies, meron pong talagang overpriced na overpriced, and when I say very overpriced, above 20%. Meron pong mas mababa sa 20%. Meron po akong nakita lampas 30% sa ibang rehiyon… Kailangan po hindi lang classrooms, kasi nakikita din po natin sa iba pang mga proyekto, sa mga public buildings, sa mga kalye, sa asphalting, sa iba pa pong mga bridges… para hindi lang mababa ang cost, pero at the same time wag naman overdesign na sinasadya para lang magnakaw,” Dizon stated.

Senator Bam Aquino added, “We agree there Mr. Secretary. Namungkahi ni Senator Loren na across-the-board cut, napag-uusapan namin ho iyan, across-the-board cut, nabanggit niya 25, initially 20% po ang nabanggit ko, across-the-board cut sa inyong budget kung hindi po makikita iyung mga changes na nais natin makita… Sa konsensiya po namin, hindi kami makakapag-pirma pag alam namin iyung disenyo at cost of materials ay naka-overprice, but since December pa naman po ang budget and as you’re very familiar, umaabot po ito ng third week of December, there’s time…I will support the 20% cut on the budget, just to make sure na wala iyung tabang iyan, iyung ginagamit para sa parking, sagasa, kung ano pa, matanggal natin iyan, diba, tanggalin natin iyan, let’s go for the real price of these projects dahil iyun po iyung nararapat sa taumbayan.”

“We fully support the efforts of the Senate po to do that, Mr. Chairman,” Dizon remarked.

In a previous interview, Senate President Vicente “Tito” Sotto III said the DPWH price cut was agreed with Senate Finance Committee Chair Sherwin Gatchalian.

“Across-the-board, ika-cut namin between 15% to 20% ang pondo ng bawat proyekto,” he said. (30)