Fuel costs, inflation derail classroom construction bids under DepEd-DPWH accord

MANILA — The Department of Public Works and Highways has attributed failed bidding attempts for classroom construction projects to escalating fuel costs and contractor concerns over project viability, threatening progress on a major infrastructure initiative aimed at addressing the education sector's classroom shortage.

Under a P21.4-billion agreement between DPWH and the Department of Education, multiple rounds of bidding for classroom construction have been unsuccessful as contractors reassess their cost projections amid volatile fuel prices and general inflation pressures. DPWH Undersecretary Lara Marisse Esquibil disclosed the implementation obstacles during Senate proceedings on Friday, signaling that the construction timeline for the collaborative program faces potential delays.

The failed bidding cycles underscore broader challenges confronting major infrastructure projects in the Philippines, where volatile energy markets and rising input costs have made project costing increasingly uncertain for contractors. Officials did not immediately specify whether bid parameters would be adjusted or procurement timelines extended to accommodate market realities.

The DepEd-DPWH partnership represents one of the government's significant commitments to expanding classroom capacity across the country. The setbacks in bidding suggest that achieving the program's objectives may require reassessment of budget allocations or project scope to make construction contracts more attractive to qualified bidders.