As Congress finishes deliberations on the 2026 budget, Batangas 1st District Representative Leandro Legarda Leviste is proposing that the Department of Public Works and Highways (DPWH) cancel or re-price P1.6 Trillion of ongoing and upcoming projects to save P400 Billion or over P1 Billion per day so the government can fund its priority health and education programs.
Leviste’s suggestion arises as DPWH Regional Office IV-A has terminated a P95.99 Million flood control contract in Lemery, Batangas that was awarded to Omnicon Builders in June 9, 2025. DPWH Regional Director Jovel Mendoza wrote that the contract “is hereby terminated due to change in government policy on the implementation of flood control-related projects,” and said the contractor would not be paid since it was only recently awarded.
In August, Leviste and the Lemery local government unit (LGU) questioned the fact the project had no coordination with the LGU, had no building permit, and was not aligned with Lemery LGU’s flood control master plan. Leviste and Lemery LGU found that certain of the project’s sheet piles that were supposed to be 12 meters measured only 6 meters. After this audit, the sheet piles were transported away from the site and the contractor abandoned the project.
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 points out that 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%” of DPWH bids in the whole country are rigged, and the testimony of former DPWH District Engineer Brice Hernandez that “all” DPWH projects in his district need to be substandard because of 25-30% kickbacks that contractors pay to win rigged bids.
Leviste has also previously advocated for DPWH to re-compute the Detailed Unit Price Analysis (DUPA) to decrease the approved unit prices for future DPWH projects. DPWH Secretary Vince Dizon has committed to reviewing the DUPA and has agreed that the DUPA can be decreased by “at least 10 percent,” with others estimating that larger decreases are possible.
Citing the example of the Lemery flood control project, Leviste suggests that DPWH Secretary Dizon can invoke the applicable grounds for termination on the over P1 Trillion of DPWH projects ongoing in 2025, and the over P600 Billion of DPWH projects planned for 2026. Leviste estimates that if the government saves an average of 25%, the government could save P400 Billion on P1.6 Trillion in projects.
Leviste said: “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, to save P400 Billion from P1.6 Trillion in projects. 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.”
