Govt eyes two-pronged assets sale; 28,665 items lined up for bids

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The Department of Finance (DOF) said yesterday at least 28,665 small assets of the government will be offered for sale under a new privatization tack.

The two-pronged plan aims to generate about P100 billion in revenues and at the same time dispose of assets that are non-performing, costly to maintain and a drain on national coffers, according to Finance Secretary Ralph Recto.

“By disposing of these non-performing assets, we eliminate unnecessary expenditures and unlock resources that can address the pressing needs of our people. This approach ensures the efficient use of public funds,” Recto said.

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An asset size as small as 200 square meters may be easier to dispose of and fits the budget ofretail buyers, Recto said.

Assets for sale will be published through newspapers of general circulation and posted to government websites to ensure full transparency.

The new privatization push is in line with Executive Order 323, which established the Inter-agency Privatization Council (PrC) and the Privatization Management Office (PMO).

In September 2024, the national government approved the new guidelines on the privatization and disposition of government assets by the PrC.

PrC sets the minimum base price of each asset which is typically the fair market value (FMV) as assessed by third-party valuations or appraisals.

There are currently 28,665 non-performing assets transferred to the PMO for privatization.

An attached agency of the DOF, the PMO facilitates an orderly, coordinated, and efficient program for the prompt disposition of non-performing assets of government financial institutions, and certain government-owned or controlled corporations (GOCCs), which have been found unnecessary or inappropriate for the government sector to maintain. 

The Social Security System (SSS) and Government Service Insurance System (GSIS) are being tapped to relay these the assets that would serve as good long-term investments for the pension funds.

Last year, the Marcos administration raised P4.44 billion from the sale of government assets.

“The privatization of idle and underperforming government assets is a win-win solution for both the national government and investors, as compensation from the sale will support priority programs and projects that will benefit the Filipino people,” the DOF said in a statement.

The DOF has yet to provide a list of the non-performing assets it plans to sell this year.

PMO’s website showed among those assets transferred to its care were printing machines and equipment from the APO Production Unit Inc.; parcels of land under the names of Cultural Center of the Philippines, Asialand Development Corp., Atlas Textile Mills, Central Santos Lopez, Davao Timber Corp., Delta Motor Corp., and Elorde Sports and Tourism Development Corp., among others; warehouses in Mariveles, Bataan under the name of Asiatic Integrated Corp.; mining claims and rights under Basay Mining Corp., Hercules Minerals and Oils Inc., Marinduque Mining and Industrial Corp. Nonoc Mining and Industrial Corp.; and even shares of stocks of Metro Manila Transit Corp., Panay Railways Inc., Paper Industries Corp. of the Philippines, Philippine Aerospace Development Corp., Philippine National Railways, and Philippine Sugar Corp.

 In 2024, the DOF concluded the sale of government share in NLEX Corp. worth P2.9 billion through a negotiation with the Metro Pacific Tollways Corp.

It aso awarded the contract for the Ninoy Aquino International Airport to the consortium led by   San Miguel Corp.and would be receiving a total of P900 billion in revenues from the partnership over 15 years.

In September, DoF Undersecretary Domini Velasquez said officials were studying the sale of around 145 million shares of Semirara Mining Corp.

 Velasquez said five other properties have been under consideration for privatization: Star City, Mile Long Building of the National Economic and Development Authority, United Chemicals Inc., Elorde Sports and Tourism Development Corporation, and Condominium Units in Atrium, Makati City.

In particular,Star City has an appraised value of P15 billion, the DOF said.

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