Pag-IBIG Fund entered into a partnership with Megawide Construction Corp. to expedite the delivery of 7,143 middle-class housing units under the Expanded Pambansang Pabahay para sa Pilipino Program, or Expanded 4PH. Pag-IBIG Fund said the houses are expected to be priced below market prices for similar units, bringing them within the range of habitable houses, and amenities that are usually found in high-priced developments, and be available within two to three years.
The partnership will include the first two sites in Dasmariñas, Cavite, which include 4,185 houses in the Dasmariñas-Salitrán area and 2,958 houses in the Dasmariñas-Paliparan area, supporting the National Government’s goal of increasing residential housing through greater participation of the private sector and rapid project delivery.
Department of Human Settlements and Urban Development Secretary Jose Ramon P. Aliling, chairman of the Pag-IBIG Fund Board of Trustees, said the partnership is designed to increase the supply of affordable housing while allowing for quick construction and affordable prices for Filipino families.
“This approach supports President Ferdinand R. Marcos, Jr.’s directive to expand access to viable home ownership options for Filipino families by allowing the private sector to build quickly and at scale under the Expanded 4PH,” said Mr. Aliling. “By strengthening partnerships that increase housing supply, we are helping to create more opportunities for Filipino workers and their families to be closer to homeownership. We hope this will further encourage the participation of the private sector in building affordable homes.”
Megawide is a leading engineering and construction company in the Philippines and a strong partner of the government in public-private partnerships, with extensive experience and a track record in delivering major projects.
Under the partnership, the Pag-IBIG Fund will invest up to P10 billion through the subscription of preferred shares in the project company, which will be financed in three phases: P5 billion for the first phase, and P2.5 billion each for the second and third phases. Preferred shares carry 9% annual cash dividends, paid annually, with a step up to 18% if the shares are not exercised.
Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said the investment enhances Pag-IBIG Fund’s mandate to increase home ownership opportunities for Filipino workers and to manage members’ savings wisely so they can continue to earn and grow.
“Every peso our members save through the Pag-IBIG Fund represents their hard-earned money and their hope for a better future,” said Ms. Acosta. “By supporting the development of thousands of houses while achieving a return on investment, we strengthen the Pag-IBIG Fund’s ability to serve more members, increase their savings and promote home ownership.”
Ms. Acosta added that the partnership model aims to demonstrate that systematic and secure investment can encourage greater involvement of the private sector in housing, help accelerate project rollout and increase the inventory of affordable, livable housing.
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