Manila: The bicameral conference committee on the proposed 2026 national budget suspended its second conference on Sunday night without addressing the Department of Public Works and Highways' (DPWH) request to reinstate portions of its proposed allocation that were reduced due to construction materials price data (CMPD) adjustments.
According to Philippines News Agency, Public Works and Highways Secretary Vince Dizon made the appeal during the second day of bicameral deliberations. This followed a heated exchange between Senate and House members that led to a motion by House Committee on Appropriations chairperson Rep. Mikaela Angela Suansing, who requested the DPWH chief to personally explain the agency's stance.
Dizon expressed concern that the CMPD-based reductions applied to approximately 10,000 projects in the General Appropriations Bill could make some contracts unimplementable. He emphasized that the department was not seeking to increase prices or revive deleted items, such as flood control projects.
He urged for the restoration of the budget to ensure proper implementation, highlighting that while the President instructed him to reduce material prices to avoid overpricing, there is also a pressing need to enhance infrastructure spending and execution.
Dizon referenced economic data indicating slower growth in the previous quarter, attributing this largely to cuts in public expenditure, particularly in infrastructure. He noted that the across-the-board cuts could lead to a number of projects being unimplementable due to the way adjustments were applied.
Under the CMPD special issuance, reductions aim to reflect lower base material costs while maintaining project scope and quantities, with savings incorporated at the contract level through updated programs of work. Dizon provided examples where budget cuts exceeded actual CMPD-based savings, resulting in underfunded projects.
To address concerns over trust and accountability, Dizon issued a department order instructing all regional directors and district engineers to implement the lower pricing strictly. He warned that procurement would not be authorized, and penalties could be imposed for noncompliance.
Despite Dizon's presentation and assurances, the bicameral conference committee was suspended at the request of the House of Representatives delegates, leaving the DPWH request unresolved. The bicameral conference on the 2026 General Appropriations Act is scheduled to reconvene at the Philippine International Convention Center in Pasay City at 4 p.m. on Monday.
