BCDA to generate P30.4-B from joint venture and lease projects
Assures steady flow of funds for AFP Modernization and big impact projects in Central and Northern Luzon
Posted: March 13, 2012 | Category: General News
The state-owned Bases Conversion Development Authority (BCDA) projected recurring income from its lease and joint venture developments projects in Bonifacio Global City and Newport City to reach a total of P30.4 billion in the next 20 years.
BCDA President and CEO Arnel Paciano D. Casanova said that aside from the outright sale of properties in Bonifacio Global City, the BCDA has entered into joint-development agreements and lease agreements with the private sector that have resulted in annual secured fixed payments totaling P30.416 billion for the years 2012 to 2032.
“This assures us of a steady flow of funds for the Armed Forces of the Philippines (AFP) Modernization Fund and infrastructure development projects of BCDA areas of operation that include the Bonifacio Global City and its economic zones in Central and Northern Luzon,” Casanova said.
Aside from pumping its share of its disposition proceeds to the development of its ecozones, Casanova cited the development of the San Fernando Airport in La Union and the BCDA monorail project as among the high impact infrastructure projects that the BCDA will be pursuing in the near future.
Under Executive Order 309, the AFP gets fifty percent of net proceeds from non-sale transactions and 35 percent of the net proceeds from sale transactions pursuant to RA 7917.
Casanova said that since 2002, BCDA has made joint-venture deals with Ayala Land Inc., the Alliance Global Group, and Megaworld Properties Holdings Inc. for the development of Bonifacio Global City and Newport City.
He pointed out that the P30.4 billion projected revenues can even go higher once BCDA secures more lease and joint-venture agreements in the future. He said that the BCDA has asked President Aquino’s approval of its disposition plans, adding that it is now with the Office of the President.
“Of course we have not yet factored in the new joint venture agreements and the sale transactions that will be made in the future that will translate to higher revenues not only for the AFP but for the entire government,” Casanova said.
He said that the BCDA has generated a total of P52.977 billion from the disposition of Metro Manila camps from the period May 1993 to February 2012 and has remitted a total of P33.630 billion to the National Treasury covering the proceeds from both sale and non-sale transactions. Of the remitted amount, P21.788 billion went to the AFP, broken down to P12.292 billion for the AFP Modernization Program and P9.496 billion for the replication of military facilities.
Of the generated P52.977 billion, the AFP Share had 41 percent of the proceeds at P21.788-B; BCDA share had 21 percent at P10.891-B; and 14 percent represented the share of the 14 government beneficiary agencies under A.O. 236 at P7.272-B. The remaining amount represents payments in the form of taxes and fees, replication of non-military facilities, share of the contiguous municipalities and direct expenses consisting of relocation of informal occupants, construction of site development projects, and administrative expenses.
Casanova said that in 2011 alone, the BCDA remitted P2.137 billion to the National Treasury for the AFP and the Government Arsenal.
He said that the share of the AFP and the 14 government beneficiaries is directly remitted to the National Treasury and, in turn, the Department of Budget and Management (DBM) is responsible for the programming and releasing the appropriation to the AFP to finance their modernization program.
The 14 government beneficiaries include the National Housing Authority, National Home Mortgage Finance Corporation and Home Insurance and Guarantee Corporation; Department of Public Works and Highways and the Department of Transportation and Communications; Philippine Health Insurance Corporation; Mount Pinatubo Assistance, Rehabilitation and Development Fund; Philippine Veterans Affairs Office; Department of Science and Technology; National Bureau of Investigation, Bureau of Corrections, Philippine National Police and the Bureau of Jail Management and Penology; Department of Education, Culture and Sports and Department of Social Welfare and Development; Philippine Economic Zone Authority; Commission on Higher Education; OSEC, Department of Justice and the Ombudsman; Supreme Court of the Philippines and Lower Courts, Sandiganbayan, Court of Appeals and Court of Tax Appeals; Department of Social Welfare and Development; Department of Labor and Employment.