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DPWH targets lower construction material costs

The Department of Public Works and Highways (DPWH) is taking major steps to lower the prices of construction materials used in government infrastructure projects, following the directive of President Ferdinand R. Marcos Jr. to ensure efficiency and transparency in public spending.

DPWH Secretary Vince Dizon announced during a press conference on Monday that the department is aligning material costs with prevailing market rates to eliminate overpricing, calling it “the biggest single reform” to be implemented under his leadership.

“This major reform measure will lower the amount of overpriced costs of materials,” Dizon said.

Among the key materials targeted for price reduction are cement, asphalt, sand, gravel, steel sheet piles, and steel bars. Dizon said the initiative will apply to projects slated for 2026, including some ongoing projects that have not yet been awarded.

According to Dizon, the move could save the government around PHP60 billion from next year’s national budget — savings that could translate to the construction of 1,600 kilometers of concrete roads and 1,000 kilometers of asphalt roads.

Earlier, President Marcos instructed the DPWH to cut material prices by 50 percent, ensuring lower costs without compromising the quality and integrity of public structures.

In line with its transparency efforts, the DPWH also signed a memorandum of agreement with the Philippine Space Agency (PhilSA) to enhance monitoring of infrastructure projects using satellite technology.

The agreement, signed by Dizon and PhilSA Officer-in-Charge Gay Jane Perez, will enable the agency to track projects more accurately — from implementation to completion.

“This partnership signals the start of our road toward more transparency and a more effective way of monitoring projects,” Dizon said.

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