Legarda tells DPWH to redirect project savings to education

MANILA – Senator Loren Legarda has called on the Department of Public Works and Highways (DPWH) to conduct a full review of potentially overpriced infrastructure projects in the 2025 budget and reallocate any savings to the education sector.

During the Senate Committee on Finance hearing on DPWH’s proposed 2025 budget, Legarda raised concerns over nearly PHP 1 trillion worth of ongoing projects that may still reflect outdated or inflated material costs.

“Another source of savings, if I may, would be questionable 2025 projects,” Legarda said.

“I believe there is still 1 trillion worth in projects being implemented,” she added.

“So what do you do with those already being implemented but based on the cost of materials alam niyo na na-overpriced? Dapat mag-renegotiate, at dapat ay ibaba iyong presyo maski may kontrata dahil puwede naman iyan, may mga provisions naman sa New Government Procurement Act,” she said.

“Hindi tayo dapat patuloy na magpaloko sa mga nag-o-overprice,” Legarda added.

“Things will not simply straighten out on their own by 2026 if we allow PHP 1 trillion worth of projects to remain overpriced.”

DPWH Secretary Vince Dizon acknowledged the senator’s concerns and assured the committee that adjustments are underway to reflect current, lower construction costs.

“For 2025, for those that have not yet been procured, we will apply already the new cost of materials,” Dizon said.

“For those that have already been awarded and are already ongoing, we will consult on papaano natin mahahabol, if kaya, iyong mga ongoing na at awarded na, but for those na hindi pa, definitely po we will apply the new cost already, we will not wait for 2026, we will apply the new cost already now,” he added.

Legarda also requested that DPWH submit a district-level breakdown of projects that can be renegotiated or terminated, following President Ferdinand Marcos Jr.’s advisory to lower the Detailed Unit Price Analysis (DUPA).

“May we receive from the engineering districts a list of projects not yet implemented that can generate savings from renegotiated contracts based on the President’s advisory on lowering the DUPA?” Legarda asked.

“Second, for ongoing projects na alam niyong overpriced naman at niloloko tayo, bago pa makapasok ang bagong team, maaari niyo namang i-terminate ang mga ito — nagawa niyo na rin naman ito sa ibang distrito, ‘di ba?” she added.

She emphasized that DPWH has the authority and responsibility to act on suspicious contracts to ensure transparency and fiscal accountability.

“So the DPWH can actually do a sweep of these projects ongoing for 2025, terminate those that it can terminate, or renegotiate for a lower price based on the President’s advisory for a lower DUPA, so that we can generate more savings,” Legarda said.

Dizon confirmed that DPWH has already acted against contractors involved in questionable deals.

“Yes, in fact, we have terminated already based on the cases that have been filed as well as the licenses that have been cancelled,” he said.

“We have terminated several already, particularly all the contracts of the Discaya companies as well as their joint venture partners, as well as the other companies where we have filed, companies such as Wawao, SYMS,” he added.

“We will consult with the Office of the Solicitor General, and we will see papaano natin mahahabol ito.”

As Chairperson of the Senate Committee on Higher, Technical, and Vocational Education, Legarda emphasized the urgent need to reallocate savings from infrastructure projects to school construction.

“Iyong savings na sinabi po ni Chair kanina, na gusto niya ngayon na-i-allocate, huwag na pag-antayin ang mga tao, iyong kay Presidente pa lang, 45 o 50 billion na iyon, assuming lang sa classrooms,” Legarda said.

“I would assume, ‘pag classroom, hindi naman siguro madadaya, hindi naman siguro ma-ghost, hindi naman siguro subject to anomang anomalya o korapsyon, at magiginhawaan ang ating sektor ng basic education,” she added.

“Sang-ayon ako sa sinabi ng Chair na iyong kaya nang ma-save ngayon, i-re-allocate na natin sa ibang imprastraktura, at ang aming bias ay edukasyon, para sa school building.”

Legarda’s remarks highlight her long-standing commitment to budget transparency and her advocacy for prioritizing education in national development planning.