P30-B target from gov't asset sales unlikely; deficit hike looms
abs-cbnNEWS.com | 10/09/2009 8:09 PM
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MANILA - The government may miss its P30-billion revenue target from privatization this year, according to the Congressional Planning and Budget Department (CPBD), a state-run think tank.
In a paper submitted to the Finance Department, CPBD said the government has not even reached half of its asset sales goal this year. As of August, the government has generated only P786 million from privatization projects.
"The CPBD doubts the realization of P30 billion privatization proceeds in 2009 due to poor investor appetite," CPBD said.
Just this week, the government's auction of 103 hectares of Food Terminals Inc. (FTI) complex in Taguig city was declared a failure after bidders skipped the sale.
Four firms earlier expressed interest to bid for the FTI complex, which the government has been trying to sell for years. However, nobody made an offer for the agricultural-industrial lot, which had a floor price of P12.956 billion.
FTI is among the assets the government is trying to privatize within the year to generate funds that could help cover its ballooning budget deficit estimated to hit a record P250 billion.
Other items scheduled to be bid out this year are the government's 40% stake in PNOC-Exploration Corp., and a 50-year lease for government property in Fujimi, Japan.
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