State-owned Bases Conversion and Development Authority (BCDA) expects to generate around P7 billion in revenue by the end of this year, its President and Chief Executive Officer Arnel Paciano Casanova said.
In a briefing on Monday, Casanova said 2015 would be a banner year for the government-owned and controlled corporation (GOCC) with revenue rising from approximately P4.0 billion in 2014.
Half of the projected revenue is from a P3.5-billion contract between the BCDA and Manila North Tollways Corp. (MNTC) to upgrade the Subic-Clark-Tarlac Expressway (SCTEX).
The agreement made MNTC responsible for the management services, toll collection, traffic safety and security management, toll road and facilities maintenance – including greening and landscaping, public relations and marketing, and all necessary support services.
Another revenue generating factor is that the BCDA gets 50 percent of the SCTEX’s gross toll revenues.
“In BGC (Bonifacio Global City) we are always expecting P400 million to P500 million a year. That’s the minimum,” Casanova also said, adding that the BCDA already received around P1.5 billion from the joint venture, leases, and dividends in the development of the BGC.
“We can reach P2 billion in BGC alone,” the BCDA chief pointed out.
Currently, the BGC is 45-percent developed.
He said the GOCC also received P875 million from the McKinley West development.
Another P165 million can be expected to be added before the year ends from a joint venture with Filinvest Land Inc. for the 288-hectare mixed development in Clark Green City in Central Luzon.
Moreover, the BCDA, as mandated by law to transform former military bases into alternative productive civilian use, has boosted the Armed Forces of the Philippines (AFP), Casanova claimed.
He said that from May 1993 to November 2015, the BCDA generated P69.3 billion from its Asset Disposal Program. The AFP received around P27.3 billion or 39 percent of the total amount.
Among the BCDA’s developments are BGC, McKinley Hill, McKinley West and Heritage Park in Taguig; Newport City in Pasay; and the SCTEX.
Eyes sale of BCG lot in 2016
In another development, Casanova said the BCDA was planning to bid out a 47-hectare parcel of land at BGC that it regained earlier this year.
Casanova said the GOCC would be revisiting a masterplan for property in preparation for a bidding in 2016.
“We have a master plan for that. Again we have to revisit our strategies,” he told reporters.
He said the BCDA wants the property to be a mixed-use development that is primarily high-end residential with commercial and institutional components.
He added that the agency was looking selling the property by parcel, rather than wholesale, to generate bigger returns.
“Since we have exponentially increased our revenues, we are looking in a strategic land banking probably,” he said.
“We can get higher revenues in the long run. You don’t lose ownership of the property and at the same time you generate revenues.”
The BCDA regained the control of 47-hectare property after the Supreme Court cancelled the ownership of Navy Officers’ Village Association, Inc. in October this year.
Casanova said the estimated worth of the property was P47 billion based on a current selling price of about P100,000 per square meter.