The Governance Commission for GOCCs (government-owned and –controlled corporations) or GCG said the Intercontinental Broadcasting Corp. (IBC-13) will be up bidding following its privatization, as approved by President Benigno Aquino 3rd.
“The privatization rationalizes the state’s portfolio in the communications sector in view of the overlap with PTV-4 [Philippine Television Network Inc.], which is already sufficient to address market failures in the private broadcast industry such as providing programs with social value but are not considered profitable,” the GCG announced on Monday.
GCG said this comes in the wake of the recent revitalization of PTV-4 mandated by Republic Act 10390, which identified the privatization of IBC-13 as one of the sources of funding the increase in PTV-4’s capital.
IBC-13 was in financial distress, operating at an average net loss of P45.26 million from 2010 to 2014 and receiving operational subsidies amounting to P23.56 million in 2015.
“The privatization should pave the way for infusion of additional capital to revitalize the network, which will also be able to operate with more flexibility as a private entity,” the CGC said.
The privatization of IBC-13 will be done through public bidding with an estimated floor price of P1.977 billion.
A committee composed of representatives from GCG, the Presidential Communications Operations Office, and IBC-13 shall implement and conduct the public bidding.
IBC-13 started out in 1960 as a private company known as Inter-Island Broadcasting Corp. It was then sequestered by the Presidential Commission on Good Government in 1986 as part of the efforts to recover the ill-gotten wealth of the Marcos regime.
It has been one of two networks considered as GOCCs besides PTV-4. The government also has a minority share in Radio Philippines Network.
Since the GCG was established in 2011 as the central advisory and oversight body for ensuring the active exercise of state ownership rights in GOCCs, it has abolished 22 nonperforming GOCCs and classified 25 more as inactive or nonoperational.
Earlier, the commission said it is targeting under its rationalization program to reduce the number of state-run firms to 85 by 2020.