DOF expects P8 B from sale of FTI

MANILA, Philippines - The government is eyeing to sell the Food Terminal Inc. (FTI) property in Taguig for more than P8 billion, Finance Undersecretary for Privatization John Sevilla said.

Sevilla said while the government was unable to sell FTI last year, the Department of Finance (DOF) is still determined to sell it this year.

The government is still pursuing a negotiated sale with the Ayala Group, Sevilla also said, adding that two to three other groups have earlier expressed interest to bid for the property.

When asked how much the government would be selling it, Sevilla said it would definitely be higher than the previous valuation of P7 bilion to P8 billion.

The P7 billion to P8-billion price tab was set by the previous government for the agro-industrial estate.

The property has been offered to giant developers including the Ayala Group, Robinson’s Land and Henry Sy’s SM Development Corp.

In 2009, private property developers snubbed a public bidding for the property, resulting in a failure of bidding.

FTI is a 120-hectare agro-industrial commercial estate in Taguig.

It was originally built to be a food processing and consolidation center for agricultural products. It houses more than 300 small-to-medium scale companies engaged in different industries such as manufacturing, garments and electronics.

Of the 120-hectare property, the government is selling 103 hectares. The National Food Authority owns the remaining 17 hectares.

FTI is among the three big-ticket items the Macapagal-Arroyo administration tried but failed to sell.

The previous administration also tried to sell the government’s stake in Philippine National Oil Company-Exploration Corp. (P17 billion) and its real estate property in Fujimi, Japan (P3 billion).   

When asked what other properties are up for privatization this year, Sevilla said there are no other plans yet but to push through with the sale of FTI.

Earlier, the government started an inventory of state-owned assets that may be privatized by the Aquino administration but the government has yet to finalize it.