Standardization of Housing Construction Materials and Components

October 14, 1981

LETTER OF INSTRUCTIONS NO. 1168

WHEREAS, the provision of adequate shelter is a declared policy of government; casia

WHEREAS, the government is equally concerned with the provision of housing that is economically viable and within the affordable levels of the people; casia

WHEREAS, the greater portion of present housing construction cost is accounted for by the cost of housing materials;

WHEREAS, significant savings on the cost of construction materials can be realized through systematized volume purchases by government and making them directly available to builders and developers; cdt

WHEREAS, this move shall harness existing industries enabling them to increase their present capabilities which are way below their rated capacities;

WHEREAS, the current construction industry practices do not apply such standards that can effect maximum materials utilization and minimum wastes that result in further increasing costs; acd

WHEREAS, the standardization of housing construction materials and components shall result in significant cost savings; casia

WHEREAS, the government is in a position to provide the necessary impetus for the adoption of these measures;

WHEREAS, the MHS is tasked with the mission of ensuring the delivery of economically viable and generally affordable housing, either as a direct undertaking or in joint venture with the private sector;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested upon me by law, do hereby direct that:

1. Immediate steps be taken by the HSDC in conjunction with the agencies and offices concerned to ensure volume purchases of construction materials and the timely acquisition of the same by builders and developers. aisa dc

2. Standard specifications for housing components be adopted in all MHS-undertaken and MHS-assisted housing projects. aisa dc

3. Savings realized through the above stated approaches shall result to proportional reduction of selling prices of completed units.

4. Immediate acquisition from its present owners and operationalization of NHC by HSDC to allow the government to provide the lead in this undertaking.

For this purpose, the HSDC is hereby authorized to restructure the NHC loan with DBP with terms and conditions protecting the interest of the government and the financial institutions concerned. In addition, NHC as reorganized shall establish regional offices and networks for stockpiling/inventory and production activities as well. Rediscounting by DBP and/or other government banking institution of the stockpiling and inventory financing is likewise authorized.

5. The NHC through HSDC shall be authorized to import related equipments and machineries required in its production activities and regional networks. Corollary to these activities, NHC may go into equipment leasing at terms and conditions to be approved by the HSDC Board. Financing arrangements for the leasing activities shall be arranged with DBP, PNB or Land Bank.

6. Proceeds from the sale of Biglang Bahay Bonds may be utilized for the realization of the foregoing. In addition, an operating working fund equivalent to P15 million from Special Activities Fund is hereby authorized for release to NHC to operationalize the restructured NHC plants and its various regional networks.

7. This Letter of Instructions shall take effect immediately. aisa dc

DONE in the City of Manila, this 14th day of October, in the year of Our Lord, Nineteen Hundred and Eighty-One. acd