Dizon: Most infrastructure contracts to be awarded by end-September

MANILA, Philippines – Public Works Secretary Vince Dizon vowed Wednesday to award 80 percent of all pending construction projects by September, a move that could give the economy a much-needed boost after a slowdown in infrastructure spending contributed to its slump.

Dizon acknowledged the “economy is really suffering” as construction procurement activity slacked after a crackdown on shady public works projects following last year’s multi-billion peso graft controversy.

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“I’m sure this is also a concern of many of our honorable members that public infrastructure spending is low this year, which is reflective of the underperforming growth rates that we have,” he told lawmakers, pitching a 21.34 percent increase in the DPWH’s budget for 2027, from P529.59 billion approved for this year.

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Economic growth slowed in the second quarter this year, expanding by 2.3 percent in the April-to-June period from a year earlier. Philippine gross domestic product (GDP) grew by 2.8 percent in the previous quarter.

State infrastructure spending and capital outlays hit P269.4 billion from January to May, down by 42.9 percent from P471.5 billion last year. 

Dizon said of the 17,764 infrastructure projects – amounting to roughly P460 billion – lined up for this year, about 76 percent or 15,032 contracts totaling P349.5 billion had been advertised for procurement. 

“We are confident that by the end of September, more than 80 percent of these projects will have been awarded already,” he said. The public works department had awarded 7,467 projects amounting to P146.1 billion so far. /jpv