Whenever I get a first-hand account from the Bases Conversion Development Authority (BCDA) of the proceeds of their dispositions, I inevitably get light-headed. The dizzying amounts, in the billions, they so casually and nonchalantly report on should be enough to pluck us out of indebtedness as a nation, I thought. But why have we not gotten far, in spite of it?
Definitely, it’s not for lack of diligence and professional management from this group of dedicated men and women who see the agency’s projects through. Their records have been made public, available for perusal by anybody who cares to look, and their Executive Vice President, Ms. Aileen Zosa speaks for the agency as clearly and as definitive as one can wish for.
In 2010, they generated proceeds of P3.2 billion, a hefty amount in itself, but in 2009, they generated more than P5 billion. The 43 percent contraction is largely because many of the properties were released to the market in 2009, and one can’t expect to flood the market with a lot more the following year. Prudence dictates that you give the market sufficient time to absorb the real estate bulk just released.
Aileen reports on the P26 billion they have generated. These mainly came from joint projects/lease proceeds with Ayala Land, Market Market (lease only), Mega World on North Bonifacio (joint venture) for eight hectares, McKinley Hill (joint venture), Jusmag property (P873 million for the next twenty years). Within the next six years, this figure would reach P30 billion, P9 billion of which would be generated from 2011 to 2016.
Between 2011-2021, they expect proceeds of P14 billion from fixed and secured revenues, which means that this is only a minimum figure. Talking on the upside, the figure could definitely go much higher, depending on the market conditions, but it cannot go lower than P14 billion.
Of the expected proceeds of P30 billion proceeds and counting another P50 billion in proceeds, the BCDA has a clear mandate on the issuances of proceeds. RA 7197 stipulates that for sale of assets, the following are the beneficiaries: the AFP Modernization Program, the National Shelter Program, Commission on Higher Education, Judiciary Reform Program, and the BCDA programs.
Leases are covered by Executive Order 309 which gives 50 percent of proceeds to the AFP Modernization Program (again!) and 50 percent to the BCDA.
If you’re wondering where the additional P50 billion earlier mentioned came from, it is from the disposition of the Bonifacio and Villamor properties which as of January 2011 came out to P50.8 billion. Of this, P21.19 billion went to the Armed Forces of the Philippines for the relocation and replication of the military facilities affected by the sale. P9.49 billion went to the modernization trust fund (again!!), P464 million was remitted to the National Treasury for the contiguous municipalities that were affected by the sale of Villamor and Bonifacio, and another P690 million for non-military facilities affected by the developments in these areas. Other government programs got benefited to the tune of P7.2 billion, bringing the total to almost P33 billion. The rest were retained in the BCDA coffers to fund their programs in Subic and Clark which they estimate to run to P10.3 billion, leaving them a balance of P11 billion. Most of this went to direct expenses incurred by the agency in their development/disposition of assets, but the agency hastened to add that almost half of this P11 billion was paid to the BIR for taxes and various fees. Curiously, BCDA was declared tax-exempt, but the BIR chose to tax them heftily nevertheless. Well, out one pocket and into another.
Aren’t these figures mind-boggling? Seeing how the proceeds have contracted substantially in the last year, many would fear that the lands for conversion are actually drying up. Fear not—thankfully they haven’t. They still have over 60 hectares of prime land for disposition. These come mostly from Bonifacio South where the Jusmag property is. We’re talking of 33 hectares in this property alone and the Supreme Court had to rule on the legitimate ownership of this huge tract of expensive land over a year ago. The BCDA went into a joint venture with Mega World for this one.
The rest of the Bonifacio South property is where the B & S property is. This one is 33 hectares, home to the Philippine Marine Corporation Headquarters, the Bonifacio Naval Station and some Philippine Army properties.The BCDA has actually started to dispose of these properties, though they are all still under policy review by the President’s office. Pres. P-Noy reportedly prefers leases over direct sales. Whatever it is they finally decide on, BCDA is confident they will be able to dispose of all 33 hectares by the end of the present year.
Beside the 33 hectare property of the B & S is another 25 hectare property which an entity called the Navy Officers Village Association (NOVA) is laying claim to. The government maintains that this entity got their title through a fake proclamation, and they have elevated the case to the Supreme Court.
Many of us do not realize that in the Bonifacio Global City development (joint venture with Ayala Land and the Campos group called the Fort Bonifacio Dev. Corp.), the government through the BCDA owns 45 percent of it. The Ayala-Campos consortium owns 55 percent. Although the land in Bonifacio Global City has been exhausted, BCDA’s part of the development has been converted into shares. These shares will eventually form part of the disposition proceeds if the government wishes to sell its stake of 45 percent.
Noteworthy here are the allocations for the AFP Modernization Program. Aside from the huge share they got from the multi-billion joint ventures, they get 50 percent of all lease proceeds, which are continuing. Talk about mind-boggling.
(P.S. – All this money and they can’t even support a road safety program.)
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