Legarda to DPWH: Review and Reallocate Savings from Questionable 2025 Projects to Education

Senator Loren Legarda has urged the Department of Public Works and Highways (DPWH) to conduct a comprehensive review of questionable infrastructure projects in the 2025 budget, emphasizing that potential savings from overpriced or poorly implemented projects should be redirected to urgently needed social infrastructure, especially education.

During the continuation of the Senate Committee on Finance hearing on the DPWH’s proposed 2025 budget, Legarda raised concerns over projects amounting to nearly 1 trillion pesos that may still reflect outdated or inflated cost estimates.

“Another source of savings, if I may, would be questionable 2025 projects,” Legarda said.

“I believe there is still 1 trillion worth in projects being implemented. So what do you do with those already being implemented but based on the cost of materials alam niyo na na-overpriced? Dapat mag-renegotiate, at dapat ay ibaba iyong presyo maski may kontrata dahil puwede naman iyan, may mga provisions naman sa New Government Procurement Act. Hindi tayo dapat patuloy na magpaloko sa mga nag-o-overprice. Things will not simply straighten out on their own by 2026 if we allow ₱1 trillion worth of projects to remain overpriced,” the senator explained.

DPWH Secretary Vince Dizon acknowledged Legarda’s concerns and assured the Committee that the Department has begun implementing cost adjustments to reflect the current, lower prices of materials.

“For 2025, for those that have not yet been procured, we will apply already the new cost of materials,” Dizon said. “For those that have already been awarded and are already ongoing. We will consult on papaano natin mahahabol, if kaya, iyong mga ongoing na at awarded na, but for those na hindi pa, definitely po we will apply the new cost already, we will not wait for 2026, we will apply the new cost already now.”

The four-term senator also urged DPWH to submit a district-level breakdown of projects that can be renegotiated or terminated, consistent with the President’s advisory to lower the Detailed Unit Price Analysis (DUPA).

“May we receive from the engineering districts a list of projects not yet implemented that can generate savings from renegotiated contracts based on the President’s advisory on lowering the DUPA? Second, for ongoing projects na alam niyong overpriced naman at niloloko tayo, bago pa makapasok ang bagong team, maaari niyo namang i-terminate ang mga ito — nagawa niyo na rin naman ito sa ibang distrito, ‘di ba?” Legarda asked.

Legarda emphasized that DPWH has both the authority and responsibility to pursue contract renegotiations and terminations where warranted.

“So the DPWH can actually do a sweep of these projects ongoing for 2025, terminate those that it can terminate, or renegotiate for a lower price based on the President’s advisory for a lower DUPA, so that we can generate more savings,” Legarda said.

Dizon confirmed that DPWH has already taken action against erring contractors.

“Yes, in fact, we have terminated already based on the cases that have been filed as well as the licenses that have been cancelled,” Dizon said.

“We have terminated several already, particularly all the contracts of the Discaya companies as well as their joint venture partners, as well as the other companies where we have filed, companies such as Wawao, SYMS. We will consult with the Office of the Solicitor General, and we will see papaano natin mahahabol ito,” Dizon added.

As Chairperson of the Senate Committee on Higher, Technical, and Vocational Education, Legarda underscored the need to redirect potential savings toward school infrastructure.

“Iyong savings na sinabi po ni Chair kanina, na gusto niya ngayon na-i-allocate, huwag na pag-antayin ang mga tao, iyong kay Presidente pa lang, 45 o 50 billion na iyon, assuming lang sa classrooms,” Legarda said. “I would assume, ‘pag classroom, hindi naman siguro madadaya, hindi naman siguro ma-ghost, hindi naman siguro subject to anomang anomalya o korapsyon, at magiginhawaan ang ating sektor ng basic education. Sang-ayon ako sa sinabi ng Chair na iyong kaya nang ma-save ngayon, i-re-allocate na natin sa ibang imprastraktura, at ang aming bias ay edukasyon, para sa school building.”

Legarda’s remarks underscore her commitment to fiscal discipline and prioritizing education in national infrastructure planning. (30)