Construction dominates PH procurement as health stays marginal-data expert

Government procurement data from 2000 to 2021 reveal that construction has consistently dominated spending, while health has remained marginal, even during crises, according to an analysis of PhilGEPS records.

Dr. Rogelio Alicor Panao, INQUIRER Metrics data scientist and associate professor at the University of the Philippines, found that construction surged after 2007, capturing more than half of all contracts nearly every year, peaking at over 70 percent in 2018.

‘Even in terms of procurement awards from 2000 to 2021, construction still dominates. It appears to surge after 2007 to capture more than half of all contracts nearly every year, and peaking above 70 percent in 2018,’ Panao noted in his analysis.

He added that this trend intensified under the Build, Build, Build program adopted by the Duterte administration and which prioritized massive infrastructure spending as a driver of national development.

Health procurement lagged behind

In contrast, procurement for health rarely exceeded five percent of total awards. ‘Even during crises – such as the COVID-19 pandemic in 2020 – procurement for medicines, hospitals, and medical supplies rarely exceeded 5 percent of total awards,’ Panao said.

The analysis, Panao explained, suggests that while hospitals may be constructed, operational capacity – including medicines, supplies, and equipment – has remained relatively underfunded.

‘This suggests that while hospitals may be built, the operational capacity to deliver care – supplies, equipment, and medicines – is relatively underfunded,’ he emphasized. The imbalance between infrastructure and health spending, Panao noted, ‘raises fundamental questions about whether procurement is truly advancing citizen welfare or primarily generating projects that are politically and visually rewarding.’

The findings come at a time when debates over public spending remain heated. The government’s massive allocations for flood-control projects have been questioned following multiple Commission on Audit (COA) fraud audit reports flagging ‘ghost’ or mismatched projects in Bulacan.

Meanwhile, the COVID-19 pandemic exposed long-standing weaknesses in the country’s health system. Despite new hospital buildings, shortages in medicines, equipment, and protective supplies were reported in many areas at the height of the crisis.

As discussions on infrastructure and health budgets continue ahead of the 2026 appropriations, the data highlights a long-term imbalance: trillions directed toward construction, while essential health procurement remains comparatively small.

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