Revised privatization plan to focus on big-ticket items

MANILA, Philippines – The government is open to moving the privatization of various real estate properties including the Bilibid property in Muntinlupa to 2011 to prioritize the sale of big-ticket items this year, a Finance official said yesterday.

“There are legal details that would have to be sorted out,” said Finance Undersecretary Gil Beltran.

The government hopes to raise at least P30 billion from privatization this year, more than twice the original target of P12.5 billion.

The revised program includes at least P13 billion from the sale of the Food Terminal Inc. property in Taguig, P12 billion from the sale of the government’s stake in Philippine National Oil Co.-Exploration Corp. and at least P3 billion from the lease and development property of its real estate property in Fujimi, Japan.

Government data showed that there are at least P10 billion worth of real estate properties that may be offered to investors. These include the Bilibid property in Muntinlupa, the government’s 18-hectare Ortigas property held by the Presidential Commission on Good Government and its real estate lot in Welfare Ville in Mandaluyong City.

Beltran said “the government is flexible” with these targets as it wants to prioritize the major items which were programmed to be sold last year.

Last year, the government set a target of P30 billion to be raised from the privatization of FTI, PNOC-EC and Fujimi.

However, the government was unable to sell FTI because there were no bidders that showed up during the public bidding last October. The government is now in talks with private developers for a negotiated sale.

It is also laying the groundwork to sell its 60-percent stake in Philippine National Oil Co.-Exploration Corp. (PNOC-EC) instead of just 40 percent as earlier planned. The government expects roughly P15 billion if it is able to sell the 60-percent stake instead of just P12 billion from the sale of only 40 percent.

As for the Fujimi property in Japan, the government has entered into negotations with at least three real estate properties for the lease and development contract of the property. –Iris C. Gonzales (The Philippine Star)