BCDA reports P8.9-million income for 2009

MANILA, Philippines - The state-owned Bases Conversion and Development Authority (BCDA) recorded a net income of P8.9 million for its operations in 2009.This was the clarification made by the state-owned company, following reports that it ended the year with a loss.

While BCDA realized a net income it reported an operating loss of P1.148 billion in the same year 2009, because BCDA started to recognize the full-year depreciation expense of P1.201 billion for the Subic-Clark-Tarlac Expressway (SCTEX) This is in accordance with generally accepted accounting principles.

Likewise, BCDA recognized non-cash depreciation of P549.5 million and unrealized foreign exchange loss of P6.6 billion in 2008 due to the re-statement of its yen-denominated loan from the Japan International Cooperation Agency (JICA) for the construction of the SCTEx. These are non-cash accounting “paper” losses from foreign exchange fluctuations and depreciation; and therefore do not at all reflect BCDA’s real financial performance.

On a cash flow basis, BCDA generated net operating cash inflows of P3.11 billion in 2008 and P7.8 million in 2009. As a percentage of total revenues, BCDA’s Personal Services (PS) expenses are only 11 percent in 2008 and 13 percent in 2009.

Under the law, BCDA is mandated to generate funds from the disposition of Bonifacio and Villamor where the proceeds go to the conversion of Subic and Clark, and their extensions and to the AFP Modernization Program which gets the highest share from the proceeds. 

BCDA generated gross proceeds from disposition of around P5.4 billion in 2009 and around P5 billion in 2008. BCDA generated P1.5 billion upfront cash this year and P20 billion over 22 years from the disposition of the JUSMAG property. 

Additionally, BCDA expects to generate at least P2-billion upfront cash and P25.9 billion in 20 years from the Bonifacio Naval Station/Philippine Marine Corps/Army Support Command/Special Services Unit (BNS/PMC/ASCom/SSU) area, for which BCDA has started the disposition process.