The Pag-IBIG Fund has partnered with Megawide Construction Corp. to accelerate the delivery of 7,143 housing units in medium-rise residential developments under the government's Expanded Pambansang Pabahay para sa Pilipino Program, or the Expanded 4PH. The Pag-IBIG fund said the prices of the houses are expected to be lower than general market prices for comparable units, which will bring them within the social housing range, with amenities usually found in higher-priced developments, and will be available within two to three years.
This partnership will cover two initial sites in Dasmariñas, Cavite, consisting of 4,185 housing units in the Dasmarinas-Salitran site and 2,958 housing units in the Dasmarinas-Paliparan site, supporting the national government's effort to increase social housing through greater private sector participation and faster project delivery.
Jose Ramon P. Elling, Secretary of the Department of Human Settlements and Urban Development and Chairman of the Pag-IBIG Fund Board of Trustees, said the partnership is designed to expand the supply of social homes while enabling faster construction and more accessible pricing for Filipino families.
“This approach supports the directive of President Ferdinand R. Marcos, Jr. to expand access to viable homeownership options for Filipino families by enabling the private sector to build faster and on a larger scale under the expanded 4PH,” Mr. Elling said. “By strengthening partnerships that increase housing supply, we help create more opportunities for Filipino workers and their families to move closer to homeownership. We hope this will further encourage private sector participation in building affordable homes.”
Megawide is a leading Philippine engineering and construction company and a strong government partner in public-private partnerships, with extensive experience and track record in delivering large-scale projects.
Under the partnership, the Pag-IBIG Fund will invest up to P10 billion in the project company through subscription of preferred shares, to be funded in three tranches: P5 billion for the first tranche, and P2.5 billion for the second and third tranches. Preferred shares carry a 9% annual cash dividend, payable annually, increasing to 18% if shares are not redeemed.
Pag-IBIG Fund Chief Executive Officer Marilyn C. Acosta said this investment furthers the Pag-IBIG Fund's dual mandate of expanding homeownership opportunities for Filipino workers and prudently managing members' savings so that they can continue to earn and grow.
“Every peso our members save with the Pag-IBIG Fund represents their hard-earned money and their hope for a better future,” Ms. Acosta said. “By supporting the development of thousands of housing units while securing investment returns, we strengthen the capacity of the Pag-IBIG Fund to serve more members, increase their savings, and promote home ownership.”
Ms Acosta said the partnership model aims to demonstrate how structured and secured investments can encourage broader private sector participation in housing, helping to accelerate project rollouts and expand the inventory of affordable, ready-to-move-in homes.
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