STATE-RUN Pag-Ibig Fund has partnered with Megawide Construction Corp. to speed up the delivery of 7,143 affordable housing units under the government’s flagship housing program, in a move aimed at scaling up socialized housing while mobilizing private sector capital.
Pag-Ibig said the medium-rise residential projects, to be developed under the Expanded Pambansang Pabahay para sa Pilipino Programme (Expanded 4PH), are expected to be completed within two to three years and priced below prevailing market rates for comparable units, bringing them within the socialised housing range.
The initial developments will be located in Dasmariñas, Cavite, covering 4,185 units in the Dasmariñas-Salitrán site and 2,958 units in Dasmariñas-Paliparan, the agency said.
In a statement sent, the Housing Secretary Jose Ramon P. Aliling, who chairs the Pag-Ibig Fund Board of Trustees, said the partnership supports President Ferdinand R. Marcos Jr.’s directive to widen access to homeownership by allowing the private sector to build at scale and at a faster pace.
“This approach enables faster construction and more accessible pricing for Filipino families, while expanding the supply of socialised homes,” Aliling said in a statement.
Megawide, a listed engineering and construction firm with experience in large-scale public-private partnership projects, will serve as the private sector partner for the developments.
Under the agreement, Pag-Ibig Fund will invest up to 10 billion (US$175 million) through a subscription to preferred shares in the project company. The investment will be released in three tranches, with P5 billion for the first tranche and P2.5 billion each for the second and third tranches.
The preferred shares will carry a nine percent annual cash dividend, payable yearly, with a step-up to 18 percent if the shares are not redeemed.
Pag-Ibig Fund Chief Executive Officer Marilene C. Acosta said the investment supports the agency’s mandate to expand access to housing while ensuring members’ savings continue to earn returns.
“By supporting the development of thousands of housing units while securing investment returns, we strengthen Pag-Ibig Fund’s capacity to serve more members and promote homeownership,” Acosta said.
She added that the partnership model aims to encourage broader private sector participation in affordable housing and help accelerate project rollouts. / KOC