Gov’t changes privatization strategy from outright sale to long-term lease

The Department of Finance (DoF) said that it is abandoning its predecessor’s privatization strategy by favoring long-term lease on prime real assets over outright sale.

Finance Secretary Cesar V. Purisima, said the government is finalizing its inventory of all state assets and will soon determine which prime properties will be privatized.

“We will review our privatization strategy. We want to continue to raise income without selling the nation’s jewels,” he said.

Purisima said the government will likely start with long-term lease development of the Welfareville compound in Mandaluyong, the National Penitentiary in Muntinlupa, the Davao Penitentiary and the Navy properties along Roxas Boulevard and at Fort Bonifacio.

“While we will be pragmatic, our bias is toward long-term leases of these assets rather than outright sales. We want to preserve the government’s asset base for future generations,” Purisima said.

The 100-hectare Welfareville in Barangay Addition Hills, which is administered by the Department of Social Welfare and Development, has been colonized by squatters since 1986.

The DSWD sought to dispose the property and asked permission from the Department of Budget and Management (DBM) to apply the proceeds for its own programs and projects. The latter component of the proposal was rejected by President Arroyo in 2009.

The National Bilibid Prisons (NBP) property has been a perennial “candidate” for privatization over the years at a price tag of P10 billion to P11 billion. During the term of President Corazon Aquino, a portion of the property, about 104.22 hectares, was carved out for the housing needs of Department of Justice employees and other agencies and is now known as Katarungan Village. –CHINO S. LEYCO, Manila Bulletin