The Department of Finance (DOF) expects the guidelines for the privatization and disposal of government assets to be published soon.
This move is set to institutionalize policies, improve the disposal process, and allow the government to generate more revenue while releasing dormant properties.
In a statement shared to reporters earlier this week, the DOF said the guidelines, approved by the Privatization Council last September 6 and is pending publication in the Official Gazette, will guide both the public and private sector in ensuring the process, rules and regulations are clear and transparent.
The guidelines also include provisions that allow the submission of unsolicited proposals, negotiated sales, direct purchases by present occupants of the residential properties and accreditation of real estate brokers to assist in the sale of the properties.
Last year, the government raised P4.44 billion in the privatization of assets. It seeks to raise P100 billion this year following the implementation of the new guidelines.
“We’re hoping, if not to raise significant revenues, at least to already dispose these assets because it (takes up) government expenses to maintain and hold on to the assets that are not of much value (to the government),” Finance Undersecretary Catherine Fong told reporters at the DOF office last Thursday.
The list of assets for sale this year is not available as of press time.
“For the privatization guidelines, a key change will be the ability for anybody to make an unsolicited offer because a lot of… the 28,000 titles in the PMO database are small assets, like 200 square meters. It’s too small for government to market, and we don’t have a marketing arm,” Fong said.
“The objective is to just publish the data base, and anybody who is interested with those properties, they can make an offer. Basically, a lot of these assets are in the provinces, so we are looking into Filipinos buying their own home properties,” she added.
Fong said the Land Bank of the Philippines is likewise interested to have a fire sale of repossessed assets, as there are a lot of small state-owned properties.
“The idea is to just post the database online and anybody can bid. Just write a letter with the offer,” Fong said.
John Paolo Rivera, Philippine Institute for Development Studies Senior Research Fellow, told Malaya Business Insight yesterday the inclusion of unsolicited proposals and negotiated sales introduces more flexibility into the privatization process, allowing the government to respond to market demand or interest from private entities more efficiently.
“This could potentially accelerate the disposal of state assets. Unsolicited proposals allow private sector entities to present innovative ideas or strategies for the use of state assets, which could maximize the value of these properties. This approach also broadens the pool of interested parties beyond those participating in traditional bidding processes,” Rivera said.
