Government privatization plans
Below are some government assets for privatization this year:
(source, a BusinessWorld story, the date I forgot to note :-/)
1) Makati property, formerly the International School (IS) campus, along Kalayaan avenue.
48,832 sq.m. (or 4.88 hectares), with a floor price of P1.186 billion.
Interested buyers are Century properties and AMA group of companies.
This property has been on auction since 2002, but past privatization plans have failed.
Government will get 80% of the proceeds, and IS to get the 20%.
2) Government share in Maynilad Water, 84% in subscription fees in a debt-to-equity scheme with the Lopezes.
Projected revenue is at least $22.67 million.
3) Iloilo airport, 60 hectares, near SM Manduriao.
(no amount of projected revenues reported)
4) Al Amanah Islamic Investment Bank of the Philippines.
5) PNOC-EDC, to sell 25 to 30% thru IPO.
Could yield P7 billion.
2005 privatization proceeds was P2 billion, mainly from sale of government shares in PNB to Lucio Tan.
Personally, I hope to see someday that ALL government corporations, financial institutions, and their subsidiaries, and most (if not all state universities and colleges) be privatized. Why?
One, use the proceeds to pay back and retire at least P1 trillion of the P6+ trillion government debts. This huge government debts is the main reason why government keeps on raising existing taxes (eg, VAT from 10% to 12%; corporate income tax from 32% to 35%), or invent and create new taxes.
Two, make the business environment's playing field more level and competitive. And why would government have corporations and financial institutions that directly compete with private corporations and financial institutions that government milk with multiple taxes, fees and regulations, which finance the same set of regulators, politicians and bureaucrats?
Three, reduce political patronage and bribery. To placate many disgruntled supporters, administration critics (opposition politicians, media people, NGO leaders, others), win them on the side of the incumbent President, and the OP runs out of regular agencies and bureaucracies to place them as Secretaries or Executive Directors, those government corporations and financial institutions are good depositories for them. As Presidents, CEOs, members of the board, VPs, other high officials.
(source, a BusinessWorld story, the date I forgot to note :-/)
1) Makati property, formerly the International School (IS) campus, along Kalayaan avenue.
48,832 sq.m. (or 4.88 hectares), with a floor price of P1.186 billion.
Interested buyers are Century properties and AMA group of companies.
This property has been on auction since 2002, but past privatization plans have failed.
Government will get 80% of the proceeds, and IS to get the 20%.
2) Government share in Maynilad Water, 84% in subscription fees in a debt-to-equity scheme with the Lopezes.
Projected revenue is at least $22.67 million.
3) Iloilo airport, 60 hectares, near SM Manduriao.
(no amount of projected revenues reported)
4) Al Amanah Islamic Investment Bank of the Philippines.
5) PNOC-EDC, to sell 25 to 30% thru IPO.
Could yield P7 billion.
2005 privatization proceeds was P2 billion, mainly from sale of government shares in PNB to Lucio Tan.
Personally, I hope to see someday that ALL government corporations, financial institutions, and their subsidiaries, and most (if not all state universities and colleges) be privatized. Why?
One, use the proceeds to pay back and retire at least P1 trillion of the P6+ trillion government debts. This huge government debts is the main reason why government keeps on raising existing taxes (eg, VAT from 10% to 12%; corporate income tax from 32% to 35%), or invent and create new taxes.
Two, make the business environment's playing field more level and competitive. And why would government have corporations and financial institutions that directly compete with private corporations and financial institutions that government milk with multiple taxes, fees and regulations, which finance the same set of regulators, politicians and bureaucrats?
Three, reduce political patronage and bribery. To placate many disgruntled supporters, administration critics (opposition politicians, media people, NGO leaders, others), win them on the side of the incumbent President, and the OP runs out of regular agencies and bureaucracies to place them as Secretaries or Executive Directors, those government corporations and financial institutions are good depositories for them. As Presidents, CEOs, members of the board, VPs, other high officials.
posted by Bienvenido Oplas Jr | 1:39 AM
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