Sale of military camps reached P51-B

By Max V. de Leon, Business Mirror

Posted at Jan 19 2011 08:39 AM | Updated as of Jan 19 2011 04:39 PM

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) has generated P50.822 billion in total revenues for the government from the disposition of former military camps since 1993, with its 2010 output valued at P3.28 billion.

The proceeds cover the disposition of former camps in Fort Bonifacio and the Villamor Air Base, among others, where properties such as the Bonifacio Global City, Market! Market!, Serendra, McKinley Hill and Jusmag Property are currently located, according to a BCDA report.

“Of this amount, P19.32 billion has been remitted to the National Treasury for the account of the Armed Forces of the Philippines [AFP], broken down into P9.823 billion for the AFP modernization program and P9.496 billion for the military replication expenses,” the state-run agency said.

Besides the P3.28 billion in disposition revenues it generated in 2010, the BCDA also earned P4.791 billion last year from the redemption of its preferred shares in Fort Bonifacio Development Corp. (FBDC), the joint- venture company developing Bonifacio Global City, where the BCDA holds 45% equity. Of the amount, the BCDA is set to remit P1.847 billion for the AFP share.

Based on current projections, some P26 billion more are expected from joint-venture transactions already entered into for the development of Bonifacio properties with firms, such as Ayala Land and Megaworld. This is besides the projected revenues from the 45% share being held by the BCDA in FBDC.

The BCDA also remitted to the National Treasury P462.2 million, representing the shares of the contiguous municipalities of Taguig, Pateros and Makati, as well as P7.092 billion in favor of 14 government beneficiary-agencies mandated under Republic Act 7227, the Bases Conversion and Development Act (RA), as amended by RA 7917.

These government agencies include the National Shelter Program, which finances mass social-housing project for the underprivileged and homeless citizens of the country.

BCDA also supports other government programs using the proceeds from its asset-disposition program.