DPWH governance reform generates billions in savings PDF Print E-mail
Monday, 22 August 2011 13:16

Department of Public Works and Highways Secretary Rogelio Singson said the transformation program at the agency resulted in expected savings of P7 billion by year-end.

Singson said among the reforms implemented in the agency are: more transparent and simplified bidding process that has resulted to bidders submitting on bidding date itself, only five documents against 20 documents in the past; and actual savings of P2.5 Billion from the open, competitive and transparent bidding nationwide of 3,692 projects (civil works, goods, consultancy services) from July 2010 to May 2011.

Through competitive bidding and reducing indirect costs, the agency was able to bid out the 7.53-kilometer Plaridel By-Pass Road Contract Package No. 2 in Bulacan for only P543 million in 2010, which was one-third of the cost of the similar 7.93-km Contract Package No. 1, which was bid out in July 2008.

While the two projects are of the same road specifications, the cost of Contract Package No. 1 was 8.5 percent above the approved agency estimate while Contract Package No. 2 cost 23 percent lower than the agency estimate, saving a total of P163.2 million.

Singson said due to institutional reforms implemented, temporary delays were encountered during the first quarter of the year 2011 in the implementation of projects.
“Instead of indiscriminate releasing of project funds which was a practice in the past, I require revisions in plans, program of work and detailed estimates of these realigned projects as one project is totally different from other before they can be bid out,” said Singson.

However, after resolving the causes of delays, as of end of July, of the 2,124 projects under the 2011 General Appropriations Act, 1,631 projects or 77 percent have been advertised; 1,516 projects or 71 percent were already bid out and 1,255 or 59 percent have been issued Notice to Proceed valued at P24.16 billion.

In support to the government’s sustained economic growth and poverty reduction program, DPWH is targeting to make all temporary bridges along national roads by 2016.

Singson said to achieve this target, the DPWH will undertake the replacement of about 8,544 lineal meters of temporary bridges nationwide.

By 2016, the present 31,242 kilometers length of national road network is being targeted to be 100 percent paved which involves the paving of 5,962 kms (1,443 kms-Arterial Roads & 4,519 kms-Secondary Roads) with a total investments requirement of P171.331 billion from 2011 to 2016.

Also, by 2016, about 4,626 kilometers damaged paved roads will be rehabilitated/reconstructed/upgraded with a total investment requirement of P141.546 billion.