The government can save around P400 billion should it decide to reprice or outright cancel Department of Public Works and Highways (DPWH) existing projects worth P1.6 trillion, Batangas Representative Leandro Legarda Leviste said on Thursday.
Leviste, in a statement, cited the case of the DPWH Regional Office IV-A’s decision to terminate a P95.99 million flood control project in Lemery, Batangas, even if it was awarded to a contractor last June 2025.
The lawmaker relayed that DPWH Regional Director Jovel Mendoza said that the contract has been terminated because of a ‘change in government policy on the implementation of flood control-related projects,’ before adding that no payments would be made since it was only recently awarded.
‘After all the hearings and protests against corruption in DPWH, we must remember there are over P1 trillion ongoing projects and another P600 billion in upcoming projects that DPWH can still do something about: Use its grounds to terminate contracts, and lower the DUPA (Detailed Unit Price Analysis), to save P400 Billion from P1.6 Trillion in projects,’ Leviste said.
‘DPWH is continuing to spend on overpriced projects every day, losing over P1 billion per day or P30 billion per month, and it is within DPWH’s power to stop these losses now,’ he added.
Leviste said he and the Lemery local government unit (LGU) questioned the flood control project, as it was supposedly implemented without coordination with local officials, without a building permit, and despite the lack of alignment with the LGU’s flood control master plan.
According to Leviste, DPWH contracts allow for ‘Termination for Convenience’ if the project has become ‘economically, financially, or technically impractical and/or unnecessary, such as, but not limited to, fortuitous event(s) or changes in law and national government policies,’ without any penalty to the government
‘DPWH contracts also allow for ‘Termination for Unlawful Acts’ if the contractor has committed unlawful acts including ‘corrupt, fraudulent, collusive and coercive practices; drawing up or using forged documents; using adulterated materials, means or methods, or engaging in production contrary to rules of sincere or the trade’,’ Leviste pointed out.
‘[.] (The) DPWH can invoke ‘Termination for Convenience’ as DPWH Regional Office IV-A did in the case of the Lemery flood control project, or ‘Termination for Unlawful Acts’, citing the testimony of former DPWH Undersecretary Roberto Bernardo that ‘almost 100 percent’ of DPWH bids in the whole country are rigged, and the testimony of former DPWH Bulacan 1st District Engineer Brice Hernandez that ‘all’ DPWH projects in his district need to be substandard because of 25-30 percent kickbacks that contractors pay to win rigged bids,’ he added.
During the entire deliberations on the proposed 2026 national budget, Leviste has been looking for ways to trim down the DPWH budget-and possibly realign it towards funding college scholarships. Last September 12, the lawmaker said a lower allocation for DPWH can be used to provide college scholarships through the Commission on Higher Education’s Tulong Dunong Program.
On August 19, Leviste said that amid concerns about corruption and substandard work in flood control projects, the over P250 billion fund allocated for such projects in 2026 should be redirected to the construction of classrooms and other more pressing matters.
Leviste said that since President Ferdinand Marcos Jr. himself has indicated that flood control projects may have been affected by corruption, half of the funds for this purpose can be used to create more classrooms, while the other half can help in lowering taxes.
In response, Budget Secretary Amenah Pangandaman said that it is up to Congress’s prerogative if they see that flood control funds are better off with the education sector-especially since the executive branch has made it a point to focus on education for 2026.
Eventually, the resubmitted DPWH budget was slashed by P255.5 billion, part of which was allocated towards social aid, health programs, and a higher education budget.
Last September 18, Leviste secured Secretary Vince Dizon’s approval to reduce DPWH costs to 10 percent, allowing the country to save more funds.
Leviste suggested lowering the DUPA by 10 percent. DUPA is the breakdown of costs for projects like construction materials, expense for use of equipment, and labor. According to Leviste, during the time of former Public Works Secretary Rogelio Singson, the DUPA was brought down by 10 percent, and he believes it can be cut down by 15 to 20 percent currently.