BATANGAS 1st District Representative Leandro Legarda Leviste today proposed a solution to lower the prices of the Department of Public Works and Highways (DPWH) in light of the Bicameral Conference Committee’s disagreement over the proposed ₱624 billion 2026 DPWH budget.
“Even if DPWH’s prices in the 2026 budget remain high, the DPWH can still lower the prices by automatically rejecting bids if they are not on average at least 10% below the Approved Budget for Contract. Along with an across-the-board cut on prices in the budget, this was the formula of former DPWH Secretary Babes Singson,” Leviste said.
“The Bicam can add a special provision to require that DPWH’s contract prices be on average at least 10% below the approved budgets to generate another ₱60 billion in savings through truly competitive biddings. Most DPWH bids are only 0-5% below the approved budget, suggesting collusion and bid-rigging, because in the private sector, bids are 10-30% below approved budgets,” Leviste added.
Leviste said in a privilege speech in Congress on Monday night: “The overpricing of DPWH projects is caused by bid-rigging. It is said that almost all DPWH bids in Batangas are ‘bidding-bidingan’, which is consistent with former Undersecretary Roberto Bernardo’s testimony that ‘almost 100%’ of bids in the DPWH are rigged. The Ombudsman is even investigating that losing bidders get paid 3% of DPWH contracts. It is in the power of the DPWH Secretary to end this and Congress to ensure it.”
To combat bid-rigging, Leviste suggested that DPWH open bids first and then do post-qualification and announce the prices before DPWH can disqualify bidders, and implement an auction system to avoid collusion and force contractors to give lower prices.
Leviste concluded: “Whatever budget the Bicam finalizes, the DPWH can ensure ₱60B savings in 2026 by adopting the Singson formula and rejecting bids that are not sufficiently below the approved budgets.”
