MANILA, Philippines — The Department of Finance (DOF) is turning to unsolicited proposals to help reach its privatization goals, estimating that around P20 billion in revenues is achievable this year.
Finance Undersecretary Catherine Fong stated that this figure represents a conservative estimate based on current assets marked for disposal. However, this is just 20 percent of the P100-billion privatization target for 2025.
New Privatization Rules to Speed Up Sales
Despite the shortfall, Fong remains optimistic that the new privatization guidelines, which took effect yesterday, will accelerate the sale of state-owned assets.
“With the guidelines, we’re hoping that the disposal will be faster, to boost our target and create more economic activities for the idle assets,” Fong told The STAR.
She added, “This (P20 billion) is just conservative; it does not yet include the potential revenues from unsolicited proposals.”
Among the state assets up for disposal this year are:
- Food Terminal Inc.
- Philippine National Construction Corp.
- Financial Center Area
- Ecology Villages
- Mile Long Complex
- National Housing Authority-Caloocan property
- Fil-Eastern Woods Industries Inc.
- Pioneer Glass Manufacturing Corp.
- Mindanao Progress Corp.
Other properties include the Office of the Ombudsman’s real estate holdings in Laguna, Baguio, and Batangas, as well as assets from the Technology Resources Corp., Al-Amanah Islamic Investment Bank of the Philippines, Sta. Clara Lumber Co. Inc., and Peninsula Development Bank.
Additionally, 28,000 real estate titles of varying sizes are also up for sale.
Unsolicited Bids to Open More Opportunities
The most significant change in the new rules is the allowance of unsolicited proposals, which enables direct negotiation for asset purchases. This is in addition to traditional public auctions and government-to-government transactions.
“We have a lot of properties, not on the radar or not in the priority (list) to be sold, but people come to us and ask if they can buy it,” Fong said.
“There’s no way to sell directly before, and it’s a long process. That’s why it isn’t easy to sell. But people are interested in buying,” she added.
Prior to the new rules, Fong revealed that several buyers had already expressed interest in bidding for various government-owned assets.
Encouraging Filipinos to Invest in Government Lands
The updated privatization guidelines also aim to attract ordinary Filipinos and overseas Filipino workers (OFWs) to invest in government-owned lands.
“Once we sell, there will be productive use as people will pay taxes. Unlike now that the republic owns these, the assets are tax-exempt,” Fong explained.
Under the revised system, any interested party can submit an unsolicited proposal detailing the property description, price offer, and payment terms.
The bidder must also submit at least 10 percent of the asset’s market value as a bid security, which will be counted as part of the purchase payment.
Privatization remains a key strategy under the Marcos administration to increase revenue generation without imposing new taxes and to expand the country’s limited fiscal space.
