Metro Manila, Philippines – Lawmakers finalizing the proposed 2026 budget suspended their meeting on Sunday, Dec. 14, with Public Works Secretary Vince Dizon’s last-minute appeal remaining unresolved, stretching the bicameral conference committee meeting to a third day.
At the heart of the issue was the P45 billion in deducted amounts of Department of Public Works and Highways (DPWH) projects next year — a funding cut introduced by the Senate as a result of the reductions in the construction materials price data (CMPD).
“Our fear is that the cut made using our ‘adjustment factor’ across the board, across roughly 10,000 projects in the General Appropriations Bill may result inevitably in projects that will end up being unimplementable,” Dizon told the bicam members.
Senators aired their frustration with the seeming backtracking of Dizon, but the Cabinet official said the restoration of P45 billion was only for the correct implementation of the projects.
“Hindi natin ibabalik ang presyo ulit at itataas,” Dizon said of his appeal.
“Ikalawa, wala kaming project na ipapadagdag ulit, walang ibabalik. Walang duplicate project na itinanggal na ibabalik, walang flood control [project] na ibabalik, klaro ‘yan,” he said.
[Translation: We are not reinstating the high prices. Secondly, no project will be returned. No duplicate project nor flood control project that was removed will be added again. Let it be clear.]
President Ferdinand Marcos Jr. ordered the DPWH to lower material costs in government projects in a bid to avoid overpricing and prevent corruption amid the flood control mess.
But Dizon said Marcos also wanted to ramp up the country’s infrastructure spending and implementation for better economic growth.
After over five hours of talks, the contingents of the House of Representatives and the Senate agreed to suspend the meeting until Monday afternoon.
A fix or another problem?
Senators ultimately have to decide on whether to move forward with their budget cut or consider Dizon’s surprise last-minute appeal to have implementable government projects next year.
Both Senate finance committee chairperson Win Gatchalian and Sen. Kiko Pangilinan argued that even with the Senate’s version of a slashed DPWH budget, projects may be modified so that it could go through implementation next year.
Dizon supported such a fix, explaining that there is a provision in the General Appropriations Act allowing the DPWH to modify projects that are line items.
Cagayan de Oro Rep. Rufus Rodriguez disagreed, underscoring that modifications would only delay all affected projects.
“Pwede [It can be] but it has all the complications and difficulties that we are avoiding,” Rodriguez said.
Bataan Rep. Albert Garcia pointed out that this might create another problem.
“Kung modification, discretionary na naman ito ng regions and districts. Kung may discretion, this can be another area that is prone to corruption,” Garcia said.
[Translation: If we go with modification, it would be discretionary again to the regions and districts. If they have the discretion, this can be another area that is prone to corruption.]
Heated discussion
The bicameral conference committee meeting was already delayed for over two hours from the supposed 2 p.m. schedule on Sunday after senators conducted their caucus first to discuss “some concerns” on next year’s spending plan.
But heated discussion erupted as Nueva Ecija Rep. Mikaela Suansing, the House appropriations committee chairperson, made a motion to invite Dizon to let him present the issue on the DPWH budget.
The Senate contingent was displeased in inviting the DPWH secretary in the latter stages of the budget process, pointing out that department chiefs have been given the chance to explain during budget hearings. The motion was later approved.
Gatchalian stressed that the formula or the “adjustment factor” for the overpriced materials came from the DPWH.
Dizon said the adjustment should have been applied only to the materials costs and not to the entire project’s expenses.
“Nanggaling sa inyo na ‘bawasan niyo ang budget ko… kasi talagang hindi ako gumawa ng NEP (National Expenditure Plan) na ‘yan. Bawasan niyo ang budget ko kasi talagang overpriced.’ Sabi mo pa, ‘pwedeng across the board.’ You’re very aggressive about it,” Sen. Loren Legarda said.
[Translation: It was you who said to cut the budget because it was not an NEP that you created, it was overpriced. You also said the cut may be across the board. You’re very aggressive about it.]
Dizon assured that he has issued an order mandating all regional directors and district engineers to strictly follow lower prices on construction materials or risk unauthorized procurement for the projects.
