Presidential Legislative Officer and Secretary Joey Sarte Salceda said infrastructure reforms directed by President Ferdinand R. Marcos Jr. and implemented by Department of Public Works and Highways Secretary Vince Dizon are showing results in several key project-completion indicators, but warned that declining bank credit to legitimate contractors could eventually undermine these gains.

“President Marcos directed a comprehensive cleanup of the public works system, and Secretary Dizon has acted decisively against ghost projects, substandard work and unqualified contractors. The latest DPWH reports indicate improvements in several important categories,” Salceda said in a statement on Sunday.

Based on the DPWH’s Quarterly Physical Report of Operations, the fourth-quarter rate of bridge projects completed in accordance with plans and specifications increased from 79 percent in 2024 to 97 percent in 2025.

The comparable rate for network development projects improved from 78 percent to 82 percent, while projects under the Convergence and Special Support Program increased from 74 percent to 80 percent.

“The direction of the President’s reforms is correct. We are beginning to distinguish legitimate contractors that can deliver from contractors that should never have received public projects in the first place,” Salceda said.

However, he cautioned that the construction sector is facing tightening bank credit.

Bangko Sentral ng Pilipinas data showed that outstanding construction loans declined from P591.6 billion in December 2024 to P477.5 billion in June 2026, a 19.3-percent reduction.

Construction lending also fell by 12.8 percent year-on-year as of June 2026, even as total bank lending for production activities grew by 9.1 percent.

“Some legitimate contractors report that bank facilities which previously covered the full or nearly full contract price are now being approved at substantially lower coverage. If a qualified contractor cannot borrow enough to mobilize equipment, purchase materials and begin construction, project completion rates will eventually suffer,” Salceda said.

He said the government must adopt a broad, all-of-government response involving the DPWH, Department of Finance, BSP, Development Bank of the Philippines, Land Bank of the Philippines, Philippine Guarantee Corporation and the construction industry.

“The President has already addressed procurement, contractor performance and project monitoring. We must now address the financing side. The government cannot clean up the contractor pool and then leave the legitimate contractors without sufficient working capital,” he said.

Salceda said DBP and LANDBANK have a crucial role as state financial institutions, proposing the expansion and updating of DBP’s Infrastructure Contractor Support Program and LANDBANK’s contractor-financing facilities, with faster processing for contractors covered by DPWH’s proposed green lane.

Financing may be based on awarded contracts, certified statements of work accomplished, validated progress billings and properly assigned government receivables.

Salceda also proposed expanded PhilGuarantee coverage to allow government and private banks to share the credit risk of lending to qualified contractors.

“Guarantees are important because we do not want to compel banks to ignore genuine risks. The solution is to reduce those risks through verified receivables, transparent project monitoring and appropriate government guarantees,” he said.

Salceda added that the government can maximize the Agriculture, Fisheries and Rural Development Financing Enhancement Act. Republic Act No. 11901 allows bank lending for the construction and upgrading of farm-to-market roads and other public rural infrastructure benefiting rural communities to be counted toward the mandatory 25-percent agriculture, fisheries and rural development financing requirement.

“DPWH projects involving farm-to-market roads, rural bridges, irrigation support, flood control, drainage, public markets and similar rural infrastructure should be clearly identified and certified as eligible. Loans to legitimate contractors implementing these projects should then be given a clear route for recognition as bank compliance with the law,” Salceda said.

He proposed that the BSP, Agricultural Credit Policy Council, DPWH, DBP and LANDBANK jointly develop the project-certification and reporting mechanism.

“This is consistent with President Marcos’s whole-of-government approach. We clean up procurement, accelerate project implementation, identify legitimate contractors, improve access to financing and protect the banks through verified receivables and guarantees. Every part of government must reinforce the President’s infrastructure reforms,” Salceda said.