DOF: Gov’t eyes selling P1.5B in assets to boost revenues
THE Philippine government eyes selling more assets through privatization this year to generate revenues and address budget constraints, an official said.
Finance Secretary Benjamin Diokno said the government aims to sell some P1.5 billion worth of assets under the Privatization and Management Office (PMO).
Most of the assets for disposition are real estate properties, as well as mining rights. No list of assets was given, but the Mile Long property and the Basay mine were mentioned during a media briefing.
Aside from assets under PMO, the government is also eyeing to privatize other properties following the successful bidding of the 165 MW Casecnan hydropower facility in Nueva Ecija.
Diokno said the Fresh River Lakes Corp, subsidiary of First Gen Corporation, won the bid by offering $526 million or P29.6 billion. It will still undergo a post-qualification process to verify the accuracy and authenticity of the eligibility documents submitted.
“This is the first asset privatization under the PBBM administration. The privatization of Casecnan will ensure that the sector remains competitive, so as to reduce energy prices,” Diokno said.
First Gen and ABS-CBN are part of the Lopez group of companies.
Meanwhile, Department of Finance Undersecretary Catherine Fong of t he Privatization and Corporate Affairs Group said t he government could do better than the P1.5 billion target.
Fong intends to double the amount they received last year in privatizing idle assets, which was P1.5 billion.
She explained that the government still has many assets, with some coming from dissolved agencies, among others.
Aside from the Basay mine, the government is also eyeing other mining rights to be auctioned off particularly nickel and copper mines, pending clearance since some of these assets are under litigation.
Fong clarified that the government is talking to international agencies regarding the best practices in terms of auctioning off mining rights in a more responsible way.
When asked about the privatization of PAGCOR, Fong said the “policy of the government is to separate regulatory powers from proprietary powers. Nakaplano na ‘yun.” However, no timeline has been set yet.