The government will take back state-owned prime lands to harness the long-term value of these properties, according to Trade Secretary Ramon Lopez.
Lopez said this forms part of the government’s move to consolidate properties owned specifically by the National Development Co. (NDC) which is currently in negotiations with joint venture (JV) partner Chevron Philippines for the government to reacquire a 120-hectare property being leased by the oil firm.
Lopez, chairman of the NDC board, also said the government will also consolidate a 18-hectare (ha). prime property in Las Pinas which used to house the manufacturing facilities of tire maker Goodyear Philippines.
“We invoked our right of first refusal so we can buy the shares back. Once we consolidate that, it will benefit the government. We can plan better the future for that property,” Lopez told reporters in Makati City yesterday.
Lopez said NDC also owns the 1.8-ha. Pinagkaisa property owned by GE near the race tracks in Makati.
He said those properties will not be sold and once consolidated, government will have control on how to handle those assets.
As in the Chevron case, Lopez said the private sector can either renegotiate on the lease, or enter into a JV with the government.
“If we want it to package (the assets) as JV in the future with a real estate project, the government will benefit… we will not sell the properties because government will not benefit on the appreciation. If ever, those will be on a long term-lease or )they can participate) in a JV project (where we can) can extract more value,” Lopez said.
On Chevron, Lopez said the liquidation committee will be formed to close the JV, Batangas Land Co., to close the company after the corporate life expires in 2021.
Lopez is confident that even with new owners and new structure, government is not reneging on its contract with Chevron which was given enough time to prepare for the eventual review of the contract.
“It was not a unilateral decision to revise or change the (terms). And Chevron is not being kicked out. They will simply renegotiate. If they want the value of the property, they can continue operating there but they have to negotiate under the new terms,” Lopez said.
He said the new lease rates have yet to be determined but said it would be based on the market value next year when they renegotiate.
“They will have to bid… They will have to offer a good price also for that since they have the property there already,” Lopez said.
He said the NDC will fund the buyout of Chevron either through its own funds or with a bank loan.
