Manila: Sen. Francis Escudero has introduced a legislative measure designed to institutionalize a system aimed at standardizing the budgeting process for infrastructure projects, with the goal of curbing overpricing. The proposed Senate Bill No. 1467, titled ‘An Act Institutionalizing a Detailed Unit Price Analysis System (DUPA) in the Determination of Appropriations for Any and All Infrastructure Projects in the National Expenditure Program and the General Appropriations Act,’ requires that all infrastructure appropriations align with actual market costs and are backed by comprehensive technical documentation.
According to Philippines News Agency, Escudero emphasized the necessity of this reform in light of President Ferdinand R. Marcos Jr.’s directive to cut the cost of materials such as asphalt, cement, and steel bars by up to 50 percent. This initiative seeks to make permanent the transparency reforms that Department of Public Works and Highways (DPWH) Secretary Vince Dizon has already begun. Escudero highlighted that the public infrastructure budget for Fiscal Year 2026 is projected to reach PHP1.56 trillion, accounting for 22.94 percent of the national expenditure program.
Escudero criticized the current arbitrary and inconsistent methods used to determine infrastructure project appropriations, which he claims are prone to distortion and misrepresentation. He has sent a copy of the bill to Sen. Sherwin Gatchalian, chairperson of the Committee on Finance, advocating for its inclusion in the ongoing 2026 budget discussions.
He stressed that the Detailed Unit Price Analysis (DUPA) system should be a necessary condition for incorporating any infrastructure project into the National Expenditure Program and the General Appropriations Act. This system should also be a prerequisite for fund release or procurement initiation. The bill mandates that all infrastructure projects, whether single-year or multi-year, must include a DUPA document, which details labor, equipment, materials, and ancillary expenses required for execution. Without this documentation, no project can be included in the national budget or be procured.
The DPWH, in collaboration with the Department of Budget and Management, Commission on Audit, and National Economic and Development Authority, is tasked with preparing a national reference manual for cost estimation. This manual will serve as a pricing standard and will be updated every three years to reflect regional price variations, inflation, and technological advancements.
To ensure effective implementation, the DPWH, along with the Department of Economy, Planning and Development, and the Civil Service Commission, must organize capacity-building programs for engineers, budget officers, and auditors. The measure also sets penalties for officials who falsify or omit data in the DUPA, including permanent disqualification from public office and potential criminal or administrative charges.
Initially, the measure will apply to FY 2026 infrastructure projects of key agencies such as the Departments of Agriculture, Education, Health, Public Works and Highways, and Transportation. Escudero concluded that by establishing this uniform and transparent method of estimating appropriations, the measure could deter unscrupulous budget practices, promote fiscal discipline, create fiscal space for other priority programs and projects, and offer technical and financial safeguards against corruption and inefficiencies in public spending.
