Creation of Housing Department pushed

The 16^th Congress is urged to create the Department of Housing and  Urban Development (DHUD) to allow the government more efficiency in the coordination of its housing programs.

“Creating the DHUD will promote the efficient management and development of land resources and enhance coordination and integration of plans, programs and projects of the government in housing and urban development,” Housing and Urban Development Coordinating Council (HUDCC) Deputy Secretary General Atty. Wendel Avisado said.

Avisado said the bill creating the DHUD was passed during the 3^rd and final reading of the 15^th Congress but did not take off in the Senate. Its creation will simplify all the processes required to make the government’s housing programs work.

At present, he said, there are various shelter agencies under the HUDCC umbrella. These include the HDMF or Pag-IBIG which funds the housing of its members, National Housing Authority which produces housing units, SHFC which funds socialized housing for the informal sector, HLURB which regulates and oversees land use plans, NHMFC which mobilizes funds and HGC which guarantees funds.

He said the creation of HUDC is important especially now that the housing sector is faced with many challenges including the urbanization of the Philippines which is now at 49% and is expected to increase to 65% by 2030.

“With urbanization comes critical issues like high poverty incidence, environmental degradation, lack of urban housing and proliferation of slums and informal settlers,

” he said. The country’s housing needs was 3.5 million in 2010 and is estimated to reach 5.7 million units by 2015, he added.

Avisado said the scarce availability of non-flood prone land for socialized housing especially in Metro Manila have compounded the challenges that come with urbanization.

While the HUDCC has adopted strategies to address these issue and concerns, he said, there is still a need to create the DHUD.

Pag-IBIG Fund members urged to voluntarily increase contributions

Pag-IBIG Fund president and CEO Darlene Marie Berberabe is encouraging Fund members to voluntarily increase their contributions as a way to build financial freedom.

“But we are urging our members to voluntarily increase their monthly savings considering that after 20 years they will be able to triple their money,” she said. A third of the contribution comes from the members themselves, another third from the employers and then from the dividends.

Pag-IBIG has paid a total of P9.3 Billion total dividends to its members last year and she said, these dividends are tax-free compared to banks which impose a 20% withholding tax.

Berberabe said they are constantly looking for innovative ways to be more relevant to their members without increasing their contributions. Our marching orders from the vice president were to improve the benefits for members without increasing the monthly cost, she said.

To do that, she said, they increased their membership base from 8 million to 12.7 million. Pag-IBIG has doubled the maximum loan amount to P3.6 million while reducing the calamity interest rates from 10.5% to 5.95% with monthly contribution still at P100.

The Home Development Mutual Fund, more popularly known as Pag-IBIG Fund is set to link up with at least 19 business partners per region every quarter in up to 32 key cities in the country to make the Fund more relevant to the daily lives of its members.

“How do we make Pag-IBIG Fund more relevant to those who are saving but are not yet ready to borrow money for housing” was one of their concerns according to Pag-IBIG Fund president and CEO Darlene Marie Berberabe Wednesday.

Berberabe, who was in the city Wednesday for the signing of the memorandum of agreement with its partners, said the Fund now has 12 million members with up to 60,000 members borrowing every year. But what about the rest, she said.

She said the Pag-IBIG Privilege Cardholders Program, which will be officially launched and piloted in the cities of Cebu, Davao and Baguio, was conceptualized to make the Fund more relevant to members.

Among the first partners of Pag-IBIG’s new program in Davao are New City Commercial Corporation, Davao Doctors College and Penong’s Franchise Corporation. These companies have offered different discounts levels to cardholders every time they purchase or make payments at the stores.

Pag-IBIG is still looking for partners and is yet to bid for the services of a company which will produce the Privilege Cards which will be made available to members for a minimal fee. Once issued hopefully before the year ends, users of the Privilege Card in various cities in the country can avail of the discounts provided by the partner companies.

“We are focusing on companies relating to health, education, groceries, schools and restaurants,” she said.

Ms. Berberabe said the target is to issue around 200,000 Pag-IBIG Privilege Cards once the program is official launched next year. She said they now have 32 partners in the pilot areas but are still looking for partners nationwide.

“I am sure we will get more partners because with Pag-IBIG’s 12 million members and the opportunity to get their stores marketed to these members, it is a good marketing strategy for these businesses,” she said.

Ace O. Cayonda, Penong’s Marketing head, said their restaurants cater to the lower A to C markets and since most of Pag-IBIG members are regular wage earners, they see the linkage as a good opportunity to promote their brand.

OSHDP pushing for socialized housing condominium

The Organization of Socialized Housing Developers of the Philippines (OSHDP) is pushing for the inclusion of the condominium as a socialized housing project through an amendment in Republic Act 7279, paving the way for socialized housing condominiums.

Under the law, socialized housing referred to “housing programs and projects covering houses and lots or home lots only, undertaken by the Government or the private sector for the underprivileged and homeless citizens.”

“Housing for the poor remains sluggish and if the Aquino administration wants to address this problem and provide safer and disaster-resilient communities for the marginalized sector then this will be a significant legislation,” OSHDP President Atty. Ryan T. Tan told BusinessWorld during the second day of the OSHDP and HUDCC 4^th national Convention held at Marco Polo Hotel.

Mr. Tan said housing problems in the country remain huge, with 600,000 informal settler families all over the country and 104,000 in NCR alone. The need for housing is also increasing faster than actual production of housing units, he added.

He said amending the law will encourage private sector developers to build 5-story socialized housing condominiums that can house hundreds of people compared to only a few families that occupy horizontal housing developments. With buildings or condominiums included in RA 7279, private sector developers will be able to build socialized housing condominiums and include them as their compliance under Section 18 which requires developers to allocate 20% of their project area or project cost to socialize housing.

“Private sector developers will also be able to enjoy the tax exemptions once socialized housing condominiums are included in the law,” he said.

Mr. Tan said such legislation is very timely because climate change has compelled the government to do something about the informal sectors especially in Metro Manila.  Providing incentives to private developers has a social benefit because it will give the government an option when it comes to relocating the informal sectors living near the waterways and in esteros, he said.

By now, he said, it is obvious that relocating the informal sector outside of Manila is not working because they just flock back to Mania and sell the land or home lots awarded to them. In-city or on-site development for urban centers is the way to go, he added.

He said lots in Manila and in other major cities are expensive but somehow, private developers will be able to lower the cost with socialized housing condominiums.

OSHDP has submitted its proposal to HUDCC and is willing to initiate the filing of the proposed bill that will not only make condominiums more affordable to the marginalized sector but will also help the government solve its problem on the informal sector.

Engr. Carol R. Angel, Regional Manager of the National Housing Authority, said they are supporting OSHDP’s move because this will greatly benefit not only Metro Manila but also urban areas like Davao where there are no socialized or even lost cost condominiums. 

“Low income earners do not want to be relocated far from their workplace because that will be double expenses for them in terms of living allowance or transportation cost,” she said.

Mr. Tan said it cannot be denied that there is a gap between policy statements and actual housing related government programs for the poor. Private sector participation is always at its highest when state policies call for it, he said, and this legislation will be effective in bridging this gap.

Pag-IBIG Fund link up with businesses to become more relevant

The Home Development Mutual Fund, more popularly known as Pag-IBIG Fun is set to link up with at least 19 business partners per region every quarter in up to 32 key cities in the country to make the Fund more relevant to the daily lives of its members.

“How do we make Pag-IBIG Fund more relevant to those who are saving but are not yet ready to borrow money for housing” was one of their concerns according to Pag-IBIG Fund president and CEO Darlene Marie Berberabe Wednesday.

Ms. Berberabe, who was in the city Wednesday for the signing of the memorandum of agreement with its partners, said the Fund now has 12 million members with up to 60,000 members borrowing every year. But what about the rest, she said.

She said the Pag-IBIG Privilege Cardholders Program, which will be officially launched and piloted in the cities of Cebu, Davao and Baguio, was conceptualized to make the Fund more relevant to members.

Among the first partners of Pag-IBIG’s new program in Davao are New City Commercial Corporation, Davao Doctors College and Penong’s Franchise Corporation. These companies have offered different discounts levels to cardholders every time they purchase or make payments at the stores.

NCCC offers a 5% discount for every P1,000 worth of purchase from their hardware and 5% discount for premium cakes bought at their Bakery during the cardholder’s birthday month. DDS has agreed to provide up to 15% discount on tuition fees of cardholders and their beneficiaries up to third degree of consanguinity or affinity upon full payment of the fees. Penong’s offer discounts and freebies for every P500 worth of transactions.

Pag-IBIG is still looking a partner and is yet to bid for the services of a company which will produce the Privilege Cards which will be made available to members for a minimal fee. Once issued hopefully before the year ends, users of the Privilege Card in various cities in the country can avail of the discounts provided by the partner companies.

“We are focusing on companies relating to health, education, groceries, schools and restaurants,” she said.

Ms. Berberabe said the target is to issue around 200,000 Pag-IBIG Privilege Cards once the program is official launched next year. She said they now have 32 partners in the pilot areas but are still looking for partners nationwide.

“I am sure we will get more partners because with Pag-IBIG’s 12 million members and the opportunity to get their stores marketed to these members, it is a good marketing strategy for these businesses,” she said.

Ace O. Cayonda, Penong’s Marketing head, said their restaurants cater to the lower A to C markets and since most of Pag-IBIG members are regular wage earners, they see the linkage as a good opportunity to promote their brand.

Ms. Berberabe said they are constantly looking for innovative ways to be more relevant to their members without increasing their contributions. Our marching orders from the vice president were to improve the benefits for members without increasing the monthly cost, she said.

To do that, she said, they increased their membership base from 8 million to 12.7 million. Pag-IBIG has doubled the maximum loan amount to P3.6 million while reducing the calamity interest rates from 10.5% to 5.95%, with the monthly contribution still at P100.

“But we are urging our members to voluntarily increase their monthly savings considering that after 20 years they will be able to triple their money,” she said. Pag-IBIG has paid a total of P9.3 Billion total dividends to its members last year and she said, these dividends are tax-free compared to the bank which imposes a 20% withholding tax.

New professions seek PRC regulation to prepare for Asean integration

Philippine professionals are in a mad rush to prepare themselves for the 2015 ASEAN (Association of Southeast Asian Nations) integration with several professions already seeking regulation with the Philippine Regulation Commission (PRC) for competitiveness.

“There are pending applications from new professions that want to be regulated by the PRC now,” PRC chairperson Atty. Teresita R. Manzala said during the Mindanao Pre-Summit Conference held at the Grand Regal Hotel last week. The Pre-Summit was a venue for the different professions to present the regional and national development that will impact on the competitiveness of the Filipino professionals.

Among the professions seeking PRC regulation are Microbiology, Instrumentation, Food Technology and Human Resources.

Ms. Manzala said the best time to prepare for the Asean integration is now. It is time to prepare and develop the different roadmaps for each profession now if Filipino professionals are to compete in Asean by 2015, she added.

She said the Philippines has to develop the Asean Qualifications Reference Framework (AQRF) by 2014, in preparation for 2015. “It is time to start putting in place our ABCs or Action, Branding and Communication,” she said.

The AQRF is the common reference framework which will function as a translation device to enable comparisons of qualifications across participating ASEAN countries.

The ASEAN is made up of 10 member-states, she said, and each one has different levels of development and education. There is a need to harmonize all these qualifications through the AQRF, she added.

AQRF is based on the 1995 ASEAN Framework Agreement on Services (AFAS) agreed upon by the ASEAN economic ministers in order to substantially eliminate restrictions to trades in services.

Leandro a. Conti of the Board of Mechanical Engineering said the major professional services initiated the Mutual Recognition Arrangements (MRAs) to enable to qualifications of professional service suppliers to be mutually recognized by signatory member states. The Registry for Engineering started in 2005, ahead of the other professions like Nursing which started in 2006, Architecture in 2007, Dentistry in 2008 and Accountancy in 2009.

When the Asean integration happens, Ms. Manzala said, it will pave the way for the mobility of professionals within ASEAN as well as the exchange of information and enhance the cooperation in mutual recognition of practitioners.

Ms. Manzala said it is easier to assess the standards of professions with PRC regulation. “For unregulated professional they will have a hard time doing that,” she added.

By 2015, she said, there will be integration, transmigration and cross border connectivity among professionals. We have to plan our offensive and defensive strategies now as well as out safeguards if our professionals are to remain competitive in Asean by that time, she added.

Construction industry a big boost to Mindanao’s economy

The conduct of the 4^th PhilConstruct Mindanao at the SMX Convention Center on September 5 to 7, 2013 (with over 100 exhibitors) has put into perspective the impact of the construction industry on Mindanao’s economic growth with an estimated worth of P40 Billion.

“We have 700 contractors registered with the Board and 60% are based in Davao,” Department of Trade and Industry (DTI) Davao City Director Teolulo T, Pasawa said. The distribution of wealth is not trickling down, he said, so it is pulling its resources to the construction industry since it has a bigger multiplier effect.

Event Chairperson Engr. Ramon F. Allado said there may be a similar number of contractors not registered so it is possible that we have at least 2000 contractors here with close to half a million workforce. Mindanao, he said, is the single biggest producer of construction workers who are trained here and are sent to other parts of the country and of the world.

“The construction industry provides money for the local economy with a 15 times minimum multiplier effect in terms of suppliers, workers, lodging establishments and other support facilities,” he said.

Mr. Allado said there is a boom in Mindanao construction industry today, especially in Davao. There are two 300-MW coal-powered plants in full construction in the Region today, he said, with Therma South’s project 40% completed and SMC Global Power Holdings Corporation’s project in Malita just starting out. Two more coal-powered plants in Misamis and South Cotabato will start constructing soon, he added. “That’s only the power sector eh yung mining sector pa.”

He said the tourism sector is another big user of the construction industry with various tourism construction projects going on and many that are yet to be developed.

Mr. Allado said the Department of Education (DepEd) has completed the public-private partnership (PPP) bidding for 20,000 classrooms in Mindanao. Sector, which comprises almost the other half of Mindanao with 10,000 classrooms to be built in one and a half years.

“All of these spell at least P40 Billion for Mindanao alone,” he said.

The booming construction industry is one of the reasons why the organizers have decided to make PhilConstruct Mindanao a yearly event every September. With more than a hundred innovative suppliers of equipment, technology suppliers, materials and tools, the stakeholders of Mindanao’s construction industry need not go to Manila or Cebu to get the latest in construction technology, he said.

Mr. Pasawa said “Davao is a very good market for the construction industry with a 2.4% growth per annum, 1.5 million people and vast availability of land that is seven times larger than Cebu and three times larger than Metro Manila.”

He said the city has a very reliable 24/7 power supply which is also among the country’s cheapest at P6 per kilowatt-hour (kwh) (beaten only by Lanado del Sur) compared to the almost P8 per kwh in Cebu. The city has also consistently ranked at the top of the Most Competitive Cities Survey by the Asian Institute of Management (AIM), he added.

Davao City has a very vibrant construction industry, he said, that DTI has established desks and officers for regulatory purposes including the Philippine Contractors Accreditation Board which handles registration and the Construction Manpower Development Authority which handles arbitration cases.

Kadayawan sa Davao not over yet

The City Tourism Office will only be able to quantify Davao City’s gains from the conduct of the Kadayawan Festival 2013 after August 31, 2013 since there are still festival-related activities that will be conducted up to the end of the month.

“We are still coordinating with the hotels as to their occupancy rate during the Kadayawan Festival but until the festival-related activities are over then that will have to wait,” City Tourism Officer Ma. Felisa Marques said. “We are also doing an exit survey on the airport arrivals but as of now me humahabol pa na tourists,” she added.

Marques said the main events of the Kadayawan namely the Indak-Indak sa Kadalanan and the Pamulak Parade may be over but there are still many Kadayawan-related activities that are on-going and still to be conducted.

On top of this is the 2013 Phoenix Accelerate Vega Hot August Races slated at the Speed City Drag Strip in Maa Diversio Road on August 31 and September 1, 2013. This racing event is a battle among drag racers in the Pro Class, Sportsman Class, Clubman Class and Quick Eight.

The Drag Race may just be the biggest legal drag race in Visayas and Mindanao with around 80 participants from Cebu and major cities in Mindanao.

Marques said Dabawenyos and visitors can still enjoy the on-going Kadayawan-related activities and shows such as the Durian Festival at SM Premier Lanang up to August 25. The eat-all-you can durian festival at P150 is still on-going so those who want to indulge in durian can still try the King of Fruits, she said.

The Agri-Trade Fair at SM City Ecoland which features plants and a bountiful harvest of fruits in season is still on-going at the SM Car Park until August 27. She said “we should strengthen Kadayawan especially now that this is being replicated in many parts of the world including Japan.”

She said that even before the Kadayawan officially closes, they are already conducting meetings to prepare for the next festivals in the city such as the Paskuhan sa Davao and a bug summer festival which will be launched in conjunction with the Summer Fest.

Marques said Davao City’s strength lies in domestic tourists who make up 93 percent of the arrivals. One percent of tourist arrivals in the city are Balikbayans while only 6 percent are foreign tourists comprising of Americans, Australians, Japanese and Koreans.