Manila: President Ferdinand R. Marcos Jr.'s infrastructure reforms through the Department of Public Works and Highways (DPWH) are showing results across several key project indicators, Presidential Legislative Liaison Office Secretary Joey Sarte Salceda said Monday. 'President Marcos directed a comprehensive cleanup of the public works system, and DPWH Secretary Vince Dizon has acted decisively against ghost projects, substandard work, and unqualified contractors. The latest DPWH reports indicate improvements in several important categories,' Salceda said in a statement.
According to Philippines News Agency, DPWH's quarterly physical report on operations, the fourth-quarter completion rate for bridge projects in accordance with plans and specifications increased from 79 percent in 2024 to 97 percent in 2025. The comparable rate for network-development projects improved from 78 percent to 82 percent, while projects under the Convergence and Special Support Program rose from 74 percent to 80 percent.
'The direction of the President's reforms is correct. We are beginning to distinguish legitimate contractors that can deliver from contractors that should never have received public projects in the first place,' Salceda said. He, however, cautioned that the construction sector is facing tighter bank credit. Bangko Sentral ng Pilipinas (BSP) data show that outstanding construction loans declined from PHP591.6 billion in December 2024 to PHP477.5 billion in June 2026, a reduction of 19.3 percent.
Construction lending fell by 12.8 percent year-on-year as of June 2026, even as total bank lending for production activities grew by 9.1 percent. 'Some legitimate contractors report that bank facilities which previously covered the full or nearly full contract price are now being approved at substantially lower coverage. If a qualified contractor cannot borrow enough to mobilize equipment, purchase materials and begin construction, project completion rates will eventually suffer,' Salceda said.
He said the government must adopt a broad, all-of-government response involving the DPWH, Department of Finance, BSP, Development Bank of the Philippines (DBP), Land Bank of the Philippines, Philippine Guarantee Corporation and the construction industry. 'The President has already addressed procurement, contractor performance, and project monitoring. We must now address the financing side. The government cannot clean up the contractor pool and then leave the legitimate contractors without sufficient working capital,' he said.
Salceda emphasized DBP and LBP's crucial roles as state financial institutions. He proposed expanding and updating DBP's Infrastructure Contractor Support Program and LandBank's contractor-financing facilities, with faster processing for DPWH green lane contractors. He added that the government can maximize Republic Act 11901, the Agriculture, Fisheries and Rural Development Financing Enhancement Act.
The decree allows bank lending for the construction and upgrading of farm-to-market roads and other public rural infrastructure benefiting rural communities to be counted toward the mandatory 25-percent agriculture, fisheries and rural development financing requirement. 'DPWH projects involving farm-to-market roads, rural bridges, irrigation support, flood control, drainage, public markets and similar rural infrastructure should be clearly identified and certified as eligible. Loans to legitimate contractors implementing these projects should then be given a clear route for recognition as bank compliance with the law,' Salceda said.
