Thursday, May 21, 2026
Today's Print

Disruption in public works is weakening the GDP

Prolonged project delays could weaken supply chains (and) disrupt economic recovery …

Department of Public Works and Highways (DPWH) Secretary Vince Dizon is signaling a shift from controversy to corrective action in the infrastructure sector.

After weeks of heightened scrutiny over alleged irregularities in public works projects, the focus is now on restoring transparency, ensuring compliance and protecting the economic value of government spending.

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Infrastructure remains a critical driver of the Philippine economy. The government, per the 2026 General Appropriations Act, set an infrastructure spending of about ₱1.3 trillion, or roughly 4.3 percent of the gross domestic product (GDP).

Earlier projections were slightly higher at around ₱1.56 trillion (5.1 percent of GDP), but even the current target represents a major commitment to physical connectivity, employment and economic stimulus.

Construction output is projected to grow around 5 percent in real terms in 2026, supporting thousands of jobs and sustaining local supply chains across transport, materials and logistics sectors.

But delays or disruptions in public works not only slow down project completion. They have a ripple effect on the economy. They undermine growth, investor confidence and employment.

Stability, transparency and predictability are critical for both contractors and investors.

A central feature of Dizon’s approach is a digital portal designed to improve monitoring and reporting of projects. While the technology itself is a tool, its broader value lies in ensuring that data is accurate, accessible and tamper-resistant.

The need for such systems is evident from recent controversies. Senate Blue Ribbon Committee chair Panfilo Lacson raised concerns over “wrong grid coordinates” submitted by the previous DPWH leadership, which complicated verification of certain flood control projects.

Some projects labeled as “ghost” works were later confirmed on the ground in Bulacan, having been inspected and validated by both the DPWH and local governments.

These errors highlight the importance of distinguishing between administrative lapses and fraudulent activity. Contractors performing their duties in good faith should not be penalized for misreported data.

Dizon has also taken concrete steps to address incomplete or substandard works. He has ordered the immediate repair of damaged flood control structures and instructed contractors to comply strictly with contract specifications and quality standards.

Encouraging contractors to complete or correct their work promptly, rather than relying on court processes, is a wise move. Litigation is slow, expensive, and can stretch over years, leaving communities at risk and projects unfinished.

By asking builders to act now, the government ensures faster results, protects vulnerable areas ahead of the rainy season and avoids the bottleneck of long judicial procedures.

Existing contractual safeguards, including warranties, performance bonds, and deadlines for corrective work, allow the government to enforce compliance efficiently while protecting its interests.

Contractors who meet their obligations are being compensated promptly, reinforcing fairness and maintaining sector confidence.

The timing of this directive is critical. The country is entering the rainy season in a few months―and flood-prone areas remain vulnerable.

Any delay in completing flood control projects could expose communities to avoidable risks. By urging contractors to finish work now, the government ensures that structures are functional well ahead of the heavy rains.

Avoiding litigation also frees resources and attention that might otherwise be tied up in courts, allowing the DPWH to focus on inspection, validation and support of ongoing projects.

Several contractors have already begun remedial actions and acknowledged accountability where appropriate. This cooperation is essential not only to restore credibility in the sector but also to maintain momentum in project execution. The construction industry employs thousands of workers and drives economic activity in many regions.

Prolonged project delays could weaken supply chains, disrupt economic recovery and leave communities exposed to infrastructure gaps. Dizon’s insistence on immediate compliance demonstrates an understanding of both social and economic urgency.

The economic stakes are clear. Transparent monitoring, enforceable contracts and prompt action by contractors create a predictable environment for builders, protect public funds and ensure that infrastructure continues to support communities, particularly those vulnerable to flooding.

By embedding accountability into both process and practice, Dizon is demonstrating that infrastructure policy can be both fair and efficient.

If effectively implemented, these measures will help the sector move beyond controversy, sustain jobs, accelerate project delivery and reinforce the government’s broader economic objectives.

Public works are more than just concrete and steel―they are an engine of growth and accountability is the key to keeping it running.

E-mail: rayenano@yahoo.com

or extrastory2000@gmail.com

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