SENATOR Loren Legarda has urged the Department of Public Works and Highways (DPWH) to review and reallocate potential savings from questionable infrastructure projects in the 2025 budget toward urgently needed education infrastructure.

During the continuation of the Senate Committee on Finance hearing on the DPWH’s proposed 2025 budget, Legarda flagged nearly ₱1 trillion worth of projects that may still reflect outdated or inflated cost estimates.

“Another source of savings, if I may, would be questionable 2025 projects,” Legarda said.

“I believe there is still ₱1 trillion worth of projects being implemented. So what do you do with those already being implemented but based on the cost of materials that you already know are overpriced? There should be renegotiation, and prices should be lowered even if there’s already a contract—because that’s possible. We should not allow ourselves to be fooled by those who overprice,” she added.

DPWH Secretary Vince Dizon acknowledged Legarda’s concerns and assured the committee that the department has started adjusting project costs to reflect current, lower material prices.

“For 2025, for those that have not yet been procured, we will already apply the new cost of materials,” Dizon said.

“For those that have already been awarded and are ongoing, we will consult on how we can catch up. But for those not yet procured, we will definitely apply the new cost—we will not wait for 2026,” he added.

Legarda further urged the DPWH to submit a district-level report identifying projects that can be renegotiated or terminated, in line with President Ferdinand Marcos Jr.’s advisory to lower the Detailed Unit Price Analysis (DUPA).

“May we receive from the engineering districts a list of projects not yet implemented that can generate savings from renegotiated contracts based on the President’s advisory on lowering the DUPA?” she asked.

Legarda stressed that the DPWH has both the authority and responsibility to pursue renegotiations and terminate contracts where warranted.

“The DPWH can actually do a sweep of ongoing 2025 projects, terminate those that can be terminated, or renegotiate for a lower price—so that we can generate more savings,” she said.

Dizon confirmed that the department has already taken action against several erring contractors.

“Yes, in fact, we have already terminated contracts based on cases filed, as well as cancelled licenses,” he said. “We have terminated several, particularly all contracts of the Discaya companies and their joint venture partners, as well as other companies such as Wawao and SYMS.”

As Chairperson of the Senate Committee on Higher, Technical, and Vocational Education, Legarda emphasized that any savings recovered from questionable projects should be redirected toward school infrastructure.

“The savings identified should be reallocated immediately,” she said. “Even just from the President’s own advisory, that’s already ₱45 to ₱50 billion—assuming those go to classrooms. I would assume that when it comes to classrooms, there will be no ghost projects, no anomalies, no corruption—only relief for our education sector.”

Legarda’s statements reaffirm her push for fiscal discipline and the prioritization of education in the government’s infrastructure spending.