Politics · Philippines Bureau
Cost pressures derail classroom construction bids under DepEd-DPWH program
Rising fuel prices and contractor concerns over project viability have stalled bidding for classroom construction under a P21.4-billion education infrastructure agreement. The Department of Public Works and Highways cited cost challenges as bids repeatedly failed to meet project requirements.
LSN Philippines ·
MANILA — The Department of Public Works and Highways has attributed failed bidding attempts for classroom construction projects to mounting fuel costs and contractors' apprehension over project economics, according to statements made to the Senate finance subcommittee.
The construction delays affect a P21.4-billion agreement between the DPWH and the Department of Education aimed at expanding classroom infrastructure. DPWH Undersecretary Lara Marisse Esquibil presented the cost pressures as a primary impediment to advancing the projects, which have encountered successive unsuccessful bid rounds.
Contractors have grown hesitant to submit competitive bids as fuel expenses and other input costs continue to rise, creating uncertainty about project profitability. The combination of volatile commodity prices and fixed contract terms has made the initiatives less attractive to prospective bidders.
The failed bidding cycles have created uncertainty about the timeline for classroom construction nationwide. Education officials have not yet disclosed contingency measures or revised budget allocations to address the cost escalation affecting the joint infrastructure program.