Gov’t to raise P12.5B from real estate sale

By Ronnel Domingo
Philippine Daily Inquirer
August 23, 2009

THE DEPARTMENT OF FINANCE will auction prime real estate in Metro Manila, including the controversial “Payanig sa Pasig” property, as it sets a goal of P12.5 billion in privatization proceeds in 2010.

Finance Secretary Margarito B. Teves clarified that there was no decision yet as to which of the various properties held by the Privatization Management Office and the Presidential Commission on Good Government would be sold.

“But the list [of properties slated for sale] next year possibly includes the 18.5 hectares in Ortigas,” Teves said.

The resolution of opposing claims on the ownership of the property remains pending in court.

Teves said other properties being considered were those in Welfareville in Mandaluyong City and a portion of the National Penitentiary area in Muntinlupa City.

The target revenue from privatization next year is less than half of this year’s P30-billion goal.

According to Finance Undersecretary Crisanta S. Legaspi, the revenue target was reduced partly to avoid controversy as 2010 is an election year, although there was no legal prohibition to do so.

Still, the P12.5-billion goal for next year represented an increase of P10 billion from the originally set target of P2.5 billion.

The revision is related to the deficit program for 2010, which the Development Budget Coordination Committee has raised to P233 billion from the previous plan of P208 billion.

Government economic managers said they preferred to keep spending beyond the budget next year to follow through with the economic resiliency program that ensured funding for efforts to stimulate continued growth.

In an earlier interview, Legaspi said the plan for next year was to sell relatively small assets like those located in Metro Manila.

Legaspi declined to cite examples, but the Privatization Management Office’s list of assets tagged for the auction block included parcels of commercial lands such as a 4.9-hectare developed property along Kalayaan Avenue and the 4,400-square-meter parking lot of the Don Bosco church, both in Makati City.