Gov't eyes privatizing 9 land, mining assets


Posted at Apr 08 2014 02:51 PM | Updated as of Apr 08 2014 10:51 PM

MANILA, Philippines – Government is planning to sell at least nine state assets before the term of President Aquino ends in 2016, the Department of Finance (DOF) said Tuesday.

Finance Undersecretary Jose Emmanuel Reverente said government plans to dispose land and mining assets this year to raise at least P6 billion in revenues by 2016.

The names of the assets eyed for privatization were not disclosed, however, as the DOF has yet to update valuations.

“I’m working with the Privatization Management Office to dispose of more government assets this year and we aim to privatize before the end of the term, at least nine more assets in land and mining,” the newly-appointed finance official said.

He said the privatization is being discussed with the Armed Forces of the Philippines (AFP) and Bases Conversion and Development Authority (BCDA).

“Some of the assets, if not all, have outdated valuations. So that's why we're working with transaction advisers to determine the value of those assets and that's the first step,” Reverente said.

“Most of these assets have transferred asset value. The property could be worth P2 billion, but in the books, it’s only P1 billion. Once we have proper valuations, that’s the time when we can tell the market,” he added.

Reverente said government has shares in Semirara as well as in Nonoc Nickel Mine in Surigao City, which could be one of the positive assets up for privatization.

The DOF said the Court of Appeals has already issued a temporary restraining order against the auction of certain machinery and equipment found in Nonoc Island.

The city government of Surigao sought the sale of some of Nonoc Island's assets because it said that real property taxes amounting to P200 million were not paid for the machinery and equipment from 2000 to 2010.