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THE government has tapped state-run Development Bank of the
Philippines (DBP) for advise on the scheduled privatization of the
Food Terminal Inc. (FTI) property in Taguig.
Finance Undersecretary Crisanta Legazpi said the
programmed bidding for the 120-hectare property would push through
in the third quarter, adding the government is updating the
property’s appraisal.
The government, which expects to raise P29.6
billion from the sale of state assets this year, said it should earn
at least P15 billion from the sale of FTI. Legazpi said half of the
proceeds of this year will come from FTI.
Last January, the government sold shares in
Manila Electric Co. The state’s Fujimi property in Tokyo valued at
P1.3 billion, as well as the old penitentiary lot in Muntinlupa are
up for privatization this year.
State-owned Government Service Insurance System
(GSIS) earlier showed interest in FTI, but Legazpi said the pension
fund has yet to officially signify its intention to buy the
property.
Winston Garcia, GSIS president and general
manager said the pension fund is interested in the property for P7.5
billion, adding it will develop the land in the next five to seven
years
But Finance Secretary Margarito Teves said GSIS’
offer is way below what the government wants for the property.
“I think again based on newspaper report[s],
Winston was suggesting something like P7 billion to P8 billion. For
the meantime, we’re looking at better alternatives,” Teves said.
He said the finance department has to generate
as much revenue as it can this year because state funding “is a
bit tight.”
The government is planning to balance its budget
this year, after a decade in the red.
In February, it incurred an P18.9-billion budget
deficit, reversing the previous year’s surplus of P11 billion.
-- Chino S. Leyco
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