Presidential Legislative Officer Joey Sarte Salceda announced on Sunday that institutional reforms implemented by President Ferdinand Marcos Jr. have driven faster completion rates across key infrastructure projects. According to Department of Public Works and Highways (DPWH) reports, fourth-quarter bridge project completion rates complying with specifications rose from 79 percent in 2024 to 97 percent in 2025.
Did You Know? Based on DPWH quarterly physical reports of operations, network-development project completion rates improved from 78 percent to 82 percent, while projects under the convergence and special support program increased from 74 percent to 80 percent.
Infrastructure Progress and DPWH Reforms
Salceda stated that Public Works Secretary Vince Dizon has acted decisively against ghost projects, substandard work, and unqualified contractors. These actions directly align with the President’s directive to clean up the public works system. Salceda noted that while procurement, contractor performance, and project monitoring have been addressed, attention must now shift to financing.
Data from the Bangko Sentral ng Pilipinas (BSP) cited by Salceda show that outstanding construction loans dropped from ₱591.6 billion in December 2024 to ₱477.5 billion in June 2026. This marks a reduction of 19.3 percent. Furthermore, construction lending fell by 12.8 percent year-on-year as of June 2026, even though total bank lending for production activities grew by 9.1 percent.
Financing Pressures on Legitimate Contractors
Salceda warned that declining bank credit to legitimate contractors could eventually undermine recent infrastructure gains. He pointed out that some qualified contractors report bank facilities previously covering full or nearly full contract prices are now approved at substantially lower coverage.
Without sufficient working capital to mobilize equipment and purchase materials, project completion rates may suffer. Salceda emphasized that the government cannot clean up the contractor pool while leaving legitimate builders without enough funds to begin construction.
Proposed All-of-Government Response
To prevent project delays, Salceda stated that the government must adopt a broad, all-of-government response. This initiative would involve the DPWH, the Department of Finance, the BSP, the Development Bank of the Philippines, the Land Bank of the Philippines, the Philippine Guarantee Corporation, and the construction industry.
Frequently Asked Questions
What caused the changes in infrastructure completion rates?
According to Salceda, reforms instituted by President Ferdinand Marcos Jr. and decisive actions by Public Works Secretary Vince Dizon against substandard work and ghost projects led to faster project completions.
How much did construction loans decline according to BSP data?
Outstanding construction loans dropped by 19.3 percent, falling from ₱591.6 billion in December 2024 to ₱477.5 billion in June 2026.
Which agencies are proposed to handle the financing challenge?
Salceda recommended an all-of-government response involving the DPWH, Department of Finance, BSP, Development Bank of the Philippines, Land Bank of the Philippines, Philippine Guarantee Corporation, and the construction industry.
How will banking institutions respond to the calls for expanded credit coverage for infrastructure contractors?
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