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 that the cost reduction will 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 added.
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.
He noted that material prices differ across regions, with some areas seeing reductions as high as 75 percent.
“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.
He also said the department is now studying potential liabilities related to past overpricing and reiterated his commitment to pursue those accountable.
“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.