In a major push to address the housing backlog, the state-run Pag-Ibig Fund has forged a strategic partnership with construction giant Megawide Corporation. The collaboration aims to accelerate the construction of 7,143 affordable housing units in Cavite, significantly scaling up the government's flagship housing initiative.
Accelerating Housing Delivery Through Private Partnership
This joint venture falls under the Expanded Pambansang Pabahay para sa Pilipino Programme (Expanded 4PH). The goal is to complete the medium-rise residential projects within two to three years. Crucially, the units will be priced below current market rates, placing them firmly within the socialized housing bracket and making homeownership accessible to more Filipino families.
Housing Secretary Jose Ramon P. Aliling, who also chairs the Pag-Ibig Fund Board of Trustees, emphasized that this model supports President Ferdinand R. Marcos Jr.'s directive to widen access to housing. By leveraging private sector efficiency and capital, the government can build at a larger scale and a much faster pace.
"This approach enables faster construction and more accessible pricing for Filipino families, while expanding the supply of socialised homes," Aliling stated.
Project Details and Strategic Investment
The initial phase of this massive housing project will be located in Dasmariñas, Cavite. The development will be split between two sites:
- Dasmariñas-Salitrán site: 4,185 units
- Dasmariñas-Paliparan site: 2,958 units
To finance the venture, Pag-Ibig Fund will invest up to P10 billion (approximately US$175 million). This capital will be channeled through a subscription to preferred shares in the project company specially established for this development.
The investment will be released in three tranches:
- First Tranche: P5 billion
- Second Tranche: P2.5 billion
- Third Tranche: P2.5 billion
The preferred shares will carry a 9% annual cash dividend, payable yearly. This rate will step up to 18% if the shares are not redeemed according to the agreed terms.
Ensuring Returns While Fulfilling Mandate
Pag-Ibig Fund Chief Executive Officer Marilene C. Acosta highlighted the dual benefit of this partnership. It allows the agency to pursue its core mandate of expanding housing access while prudently managing its members' funds.
"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 explained.
She added that this partnership model is designed to serve as a blueprint, encouraging broader private sector participation in the affordable housing sector. The involvement of Megawide, a listed firm with extensive experience in large-scale public-private partnership projects, is seen as key to ensuring timely and efficient project rollout.
This landmark deal represents a significant step in mobilizing private capital for public good, directly addressing the urgent need for quality, affordable homes for Filipino families.
