The Department of Public Works and Highways (DPWH) expects to save around P60 billion next year by lowering the cost of key construction materials, enabling the government to build thousands of additional kilometers of roads under the 2026 budget.

Public Works Secretary Vince Dizon said at a media briefing on Monday that the reform will permanently align the prices of cement, gravel, asphalt, and other materials with prevailing market levels, which he described as “the single biggest reform in the DPWH.”

“This is probably the single biggest reform in DPWH. No administration can change it anymore. To future DPWH secretaries, please, have some shame if you even try,” Dizon said.

He noted the cost reduction would allow the government to construct an additional 1,600 kilometers of concrete roads and 1,000 kilometers of asphalt roads.

“Can you imagine, just by lowering the price of materials — cement, gravel, asphalt, and others — we can add that much? The total monetary value of this is P60 billion in the 2026 budget,” he said.

Dizon said the initiative, signed last Thursday before the long weekend, was the first time in decades that the DPWH has standardized material pricing.

“This has only been done now in the DPWH. For decades, there have been significant price differences, but we really need to address this. Once we lower the prices, we will be able to minimize corruption. Where does the money go? Obviously, in all likelihood, it goes to theft. We will carry out thorough and genuine reform,” Dizon said.

“If the private sector can build roads with those prices, why can’t the government? What could be the reason? Corruption,” he added.

Based on the updated Consolidated Material Price Data (CMPD) for the fourth quarter, average material costs have dropped by up to 74 percent compared to the previous quarter.

Asphalt registered the steepest reduction, with prices dropping by an average of 50 percent — from P13,863.85 per metric ton to P6,961.32. Steel sheet piles (U-type) also saw a major adjustment, down by 36 percent from P62.07 to P39.89 per kilogram.

Reinforcing steel bars likewise declined, with Grade 60 prices falling by 30 percent to P36.06 per kilogram, and Grade 40 dropping by 32 percent to P690.12 per kilogram from the previous P1,014.56.

The price of gravel, Grade 1, decreased by 32 percent from P951.53 to P649.93 per cubic meter, while sand posted a similar 32 percent reduction from P54.04 to P36.99 per cubic meter.

Cement prices fell by 10 percent to an updated average of P213.05 per 40-kilogram bag from P236.31, while ready-mix concrete (3500 psi, 14 days) recorded a seven-percent cut—from P5,781.69 to P5,402.39 per cubic meter.

“Each region has different prices. It’s the same in the private sector — prices vary by location. There are regions like Region 10 where it’s not that high, but you can already see in asphalt alone that the difference is huge,” Dizon said.

Dizon, however, assured that the DPWH will not compromise project quality while implementing the reform. “We will not sacrifice the quality, but we will curb corruption,” he said.

The DPWH is now reviewing possible liabilities related to past overpricing and preparing cases against former officials accused of approving irregular project costs.

Dizon said he is confident that several contractors and public officials could be “spending Christmas in jail” as the Department of Public Works and Highways (DPWH) moves to file corruption cases against those behind unfinished or unimplemented projects.

“(I am) very confident (that some will be spending Christmas in jail),” Dizon said in a media briefing Monday. “It’s simple — there’s the budget, you were paid in full, but you didn’t do anything. As the district engineering office said, it was paid, but nothing was completed. It’s very clear, and I’m confident these people will go to jail.”

He said both the Department of Justice and the Office of the Ombudsman have confirmed that several cases are already underway, involving at least 48 individuals from the DPWH alone. “Of course, there are also contractors, definitely more than 50, maybe around 60 in total. Those cases move quickly,” he added.

He said former Ako Bicol Representative Zaldy Co and La Union Representative Eric Yap are among those set to face charges.

“We will not stop until we file cases against those who must be held accountable. We will not stop while those who should be jailed and held liable are being made to answer — we will also go after their assets,” Dizon said.

“This Christmas, justice will be served,” he added, emphasizing that the crackdown reflects the government’s resolve to hold erring officials accountable.

He said the department will file one to two cases before the Ombudsman this week, along with two others to be referred to the Philippine Competition Commission, covering projects in La Union and Davao Occidental.

The DPWH, he added, is also tightening internal controls to ensure transparency and guarantee that infrastructure projects are completed on time and within budget.

Elsewhere in government, the Bureau of Customs announced upcoming public auctions of the seized assets of district engineers and contractors caught up in anomalous projects, while the Office of the Solicitor General has readied its first asset seizure.