Gov't plans to privatize over P100 billion worth of assets

The Privatization and Management Office (PMO) is banking on multiple strategies apart from aggressive sales of idle assets to reach the P101-billion target set for 2025, a top official said in a report by BusinessMirror.

Finance Undersecretary for Privatization and Corporate Affairs Catherine L. Fong told the BusinessMirror that PMO has a plan to reach the privatization target. The latter was increased by 140 percent to P101 billion from this year’s P42 billion based on the 2025 Budget of Expenditures and Sources of Financing.

“I wouldn’t say I’m confident [in reaching the target since] there are always surprises that spring up,” Fong said. “But there’s definitely a plan to reach it and that plan is always to aim for more [in case something goes wrong].”

For one, Fong said the PMO is pushing for more solicited public-private partnerships (PPPs) to build more infrastructure and services through private sector financing and hopefully, secure more upfront payment for the national government.

The PMO is an attached agency of the Department of Finance (DOF) mandated as the marketing arm of the government concerning transferred assets, government corporations and other properties assigned to it by the Privatization Council (PrC) for disposition.

Fong wasn’t able to provide figures on how much would be raised from the PPPs saying these are relative to the transaction and, in addition, the projects are yet to be valued.

The PMO is also drafting amendments to the PrC’s guidelines to allow unsolicited proposals, wherein the sale could be initiated by a private proponent through offering for the assets.

Since the government has many small properties, the occupants will be enabled to make offers on those properties, Fong said.

Overseas Filipino workers who also might be interested in buying idle government properties could acquire these remotely through online platforms and bank transfers, Fong added.

The new guidelines will also allow brokers, who could help in marketing the properties that are small in size and located in remote areas, such as in Mindanao.

“We’re thinking that it has more value for people who would want to own their own homes but the PMO has no capacity to market them, so brokers are welcome,” Fong told the BusinessMirror.

She added that the PMO targets to submit the revised guidelines before the end of August.

The dissolution of defunct government-owned and -controlled corporations (GOCCs) is also seen as one of the factors in helping the PMO reach the privatization targets.

Earlier, Governance Commission for GOCCs (GCG) Commissioner Gideon DV. Mortel said the speedy disposition of assets owned by 31 defunct GOCCs could generate more than P25 billion for the government.

Moreover, the PMO is looking into disposing of the 2.2-hectare Mile Long Complex in Makati City, mining rights, government shares in toll roads, amusement park Star City in Pasay City and the Food Terminal Incorporated (FTI) in Taguig City this year.

The PMO sold the government’s stake in North Luzon Expressway (Nlex) and raised P3.3 billion last July.

Revenues from privatization rose by 673.97 percent year-on-year to P411.52 million from January to June 2024 from P53.17 million, according to the Bureau of the Treasury.