Palace backs DPWH plea to restore P45B in budget
The last-ditch effort of Public Works Secretary Vince Dizon to restore about P45 billion of the Department of Public Works and Highways’ (DPWH) proposed budget for 2026 to properly implement projects of the agency has the blessing of President Marcos, Malacañang said on Monday.
Palace press officer Claire Castro said the President was already made aware of Dizon’s appeal before members of the bicameral conference committee finalizing the 2026 national budget.
“If the request of the DPWH will not be granted [by the bicam], it will not be possible for the agency to implement nearly 10,000 projects,” Castro warned.
The third day of bicam deliberations on the proposed P6.793-trillion 2026 national budget was suspended on Monday following the deadlock over the DPWH issue.
Sen. Sherwin Gatchalian, Senate finance committee chair, said the suspension on the part of the upper chamber was to allow lawmakers to resolve disagreements on the DPWH’s budget.
Senate President Pro Tempore Panfilo Lacson believes Dizon should own up to the supposed errors in the computation of cost reductions on the agency’s 10,000 infrastructure projects next year since putting the blame on the Senate would result only in a deadlock.
Funding cuts
During the second day of the bicam meeting on Sunday, Dizon made a last-minute appeal to lawmakers to restore the cuts made by the Senate due to the supposed reduction of project costs based on the agency’s adjusted Construction Materials Price Data (CMPD).
The CMPD, as well as labor rates and equipment rental rates, are used as bases in the computation of the detailed unit price analysis (Dupa), the program of works (POW) and the approved budget for the contract.
He also clarified that the agency was not requesting the restoration of infrastructure projects that were removed from the proposed 2026 budget.
For its 2026 budget, the DPWH originaflly proposed an allocation of P881.31 billion under the National Expenditure Program, also known as the President’s budget.
Following the order of President Marcos to provide zero funding for all of the DPWH’s locally funded flood control projects, the House of Representatives reduced this to P625.78 billion.
But in the Senate, the DPWH’s budget was further cut down to P571.79 billion, or by P54 billion, of which P45 billion was due to CMPD.
Wrong assumption
Dizon explained that the CMPD reduction should not be applied by senators across all projects per region, but instead be computed per project depending on its program of works, a detailed plan outlining the schedule, activities, resources and costs of a specific undertaking.
“Some projects require more cement, some require more steel, while others require more gravel. It depends on the [POW],” the DPWH chief explained.
Instead of applying the budget cuts on the 2026 budget, Dizon suggested that the DPWH be made responsible for cutting the budget of projects based on their respective POW.
Dizon cited a department order he issued requiring regional directors and district engineers to apply the reduced CMPD in projects prior to bidding.
He also assured that the DPWH offices are not allowed to proceed with procurement without clearance from the central office.
Dizon then presented a possible solution to the budget issue, suggesting that the bicam adopt the version of the DPWH budget contained in the House’s GAB, and let the DPWH implement on its own the cost reduction on materials.
Projects under the DPWH’s reduced 2026 budget, Dizon said, can still be implemented if specifications are modified to fit available funds.
Risky proposal
But Bataan Rep. Albert Garcia, House committee on appropriations senior vice chair, warned that giving regional and district offices discretion over such modifications could create new opportunities for corruption.
Dizon’s suggestion was hinged on the principle that under the general provisions of the General Appropriations Act (GAA), the DPWH is legally allowed to modify project specifications.
This authority, Dizon said, is outlined in DPWH Department Order No. 13, series of 2023, which directs all implementing offices to comply with updated project specifications and the required workflow for modifications.
For instance, he said that if a project originally budgeted at P41 billion is slashed to P13 billion, the DPWH can shorten the road, reduce lanes, or adjust other specifications so it can still be implemented.
This means that while the project will differ from the original plan and may not fully connect as intended, such modifications are legally permitted and ensure construction can proceed despite the funding cuts.
Bicam decision
Senators also reminded Dizon that it is him whom they trust—and not district officers of the DPWH.
Several lawmakers, including Gatchalian, explained to Dizon that it would not be easy to put back the DPWH funds they have removed, especially since it was borne out of Dizon’s own revelations that many items in the proposed DPWH projects were overpriced.
According to Gatchalian, he believes corrupt officials who have not been sacked yet will try their best to manipulate the budget given to their district offices.
Sen. Loren Legarda also reminded Dizon that the Senate’s decision to slash DPWH funding was largely based on the secretary’s responses during budget deliberations and other hearings.
In the end, Dizon conceded that he is leaving it up to the wisdom of the bicam to decide whether it would be Congress who would make the cut, or the DPWH. —WITH A REPORT FROM MAILA AGER
