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Public-private partnership to help boost Aquino government coffers
Author: http://www.president.gov.ph/news/default.aspx?n=Public-private%20partnership%20to%20help%20boost%20Aquino%20government%20coffers
Posted: September 06, 2010 | Category: Investment And Projects
The administration of President Benigno S. Aquino III could benefit from pursuing public-private partnerships (PPP) through the Bases Conversion and Development Authority (BCDA) to boost the coffers of the cash-strapped government, BCDA President and Chief Executive Officer Narciso Abaya said yesterday.
Abaya said PPP through government entities like the BCDA “provides a ray of hope to help augment the revenues generated by the government” amid the shortfall in the collection targets of the Bureaus of Internal Revenue and Customs for the month of July.
Executive Secretary Paquito N. Ochoa, Jr. said that these developments "complement current initiatives aimed at enabling the Department of Finance to hit and possibly exceed its revenue targets,” adding that exploring public-private partnerships through the maximization of our assets is one way we can raise much-needed funds for the government.
According to Abaya, BCDA is equipped with the experience and expertise to properly and profitably dispose of government assets within its jurisdiction. BCDA has raised P46.495 billion in disposition proceeds as of December 2009, he added.
Under the law, bulk of the proceeds from the disposition of former military camps and base lands will go to the AFP Modernization Fund to cover the military’s replication and relocation expenses.
Recently, SM Land, Inc. (SMLI) submitted an unsolicited proposal to develop a 33.1-hectare property in Fort Bonifacio.
Under the offer, SMLI will give an upfront cash of P2 billion and P25.9 billion secured revenues over 20 years. On top of these, SMLI has committed to advance the replication expenses of military facilities of the Philippine Navy, the Philippine Marines and the Philippine Army, which are presently occupying the property.
The BCDA has already published a notice of invitation for the submission of comparative proposals to challenge the unsolicited proposal of SMLI for the Bonifacio South property.
Abaya said that there is also a plan by BCDA to facilitate the construction of two major infrastructure projects in partnership with the Ayala Land, Inc. and the Campos Group, the cost of which will be shouldered by the private sector. The twin projects, which are expected to improve access from Bonifacio Global City to the eastern, northern and southern areas of Metro Manila and vice versa, have a combined project cost of P500 million.
Finance officials are under pressure to tap new sources of revenues for the government after the budget deficit hit an all-time high of P229.4 billion, or almost 70 percent of the total target of P325 billion for the entire 2010.
While July revenues amounted to P102.9 billion, or 4.6 percent higher than the P98.4 billion posted the previous 12 months, collection was still short of P7.6 billion.
“Every government agency must pitch in to address the deficit. We must institute austerity measures to streamline government and eliminate wastage,” Ochoa said.
