Gov’t eyes P2B from sale of assets

MANILA, Philippines -  The government is hoping to raise P2 billion this year from the sale of land and mining assets.

Newly-appointed Finance Undersecretary Jose Emmanuel Reverente said the Aquino administration is embarking on an aggressive privatization program with at least nine government assets already identified for disposal until 2016.

He refused to name these assets but said these could include military camps.

Reverente said the Department of Finance is consulting with the Armed Forces of the Philippines and the Bases Conversion Development Authority regarding the possible sale of military bases.

“I’m working with the Privatization Management Office to dispose off more government assets this year. We want to support the government’s revenue efforts.  We plan to raise P2 billion a year up to the end of President Aquino’s term in 2016,” Reverente said.

Reverente said the nine assets have yet be valued so it could proceed with the government’s planned divestment program.

“Some of the assets, if not all, have outdated valuations. So that’s why we’re working with transaction advisers to determine the value of those assets. And that’s the first step, so this is like the PPP center doing a project feasibility,” Reverente said.

“So once we have proper valuations we can tell the market now have what we call a reserve price.  Our goal is to have the valuation exercise  completed at the end of the year,” he added.

The BCDA late last year said it was developing a master plan for the partial privatization of the 150-hectare Camp Aguinaldo and other military camps.

The BCDA is mandated to transform former military bases into alternative productive civilian use.

Aside from these, Reverente said the government may also sell shares in some mining companies which include Semirara Mining Corp. and the Nonoc Nickel Mine in Surigao City.

“We have not made a determination whether we will sell it or not. We have about 0.2 percent, it’s not a market mover,” he said.