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Proceeds from sale of bases placed at P50B

[ ] January 19, 2011
Why is the Department of Finance pushing the sale of more military camps? The numbers provide the answer.
The Bases Conversion and Development Authority (BCDA) yesterday said proceeds from the sale of former military camps in Metro Manila has reached P50.82 billion in 17 years although the money coming in started declining in 2010.
BCDA said another P26 billion is expected in earnings from joint venture transactions entered into by the BCDA in developing one former military facility, Fort Bonifacio, alone but this revenue stream would come in 20 years.
In 2010, the BCDA generated P4.79 billion, including proceeds from the disposition of the Jusmag. An upfront cash of P1.5 billion was paid by Megaworld Corp. upon contract signing.
BCDA spokesman Roy Rosales said the P26 billion would be generated over the long term. It would come from leases and shares in BCDA’s joint ventures with, among others, Ayala Land Inc. for Market! Market! and Serendra and with Megaworld for McKinley Hill.
Rosales said this is over and above the projected revenues from the 45 percent share being held by BCDA in Fort Bonifacio Development Corp. (FBDC), the private real estate firm currently developing the fast-rising Bonifacio Global City which is controlled by ALI and the Campos Group.
Rosales did not provide additional data.
The P50.82-billion proceeds cover the period May 1993 when the BCDA was created up to December 2010 when it sold key properties like Bonifacio Global City, Market! Market!, Serendra, McKinley Hill, Jusmag in Fort Bonifacio and in Villamor Air Base.
Of this amount, P19.32 billion has been remitted to the National Treasury for the account of the Armed Forces of the Philippines, broken down into P9.823 billion for the AFP modernization program and P9.496 billion for replication expenses.
Also remitted to the National Treasury was P462.2 million representing the shares of the LGUs Taguig, Pateros and Makati and P7.092 billion in favor of 14 government beneficiary agencies mandated under Republic Act 7227 (the Bases Conversion and Development Act).
These government agencies include the National Shelter Program that finances mass social housing project for the underprivileged and homeless citizens. Other government programs are the National Health Insurance Program; Higher Education Development Fund, otherwise known as the Higher Education Act of 1994 that finances students’ scholarship, faculty development and the improvement of physical plants of colleges and universities under the Commission on Higher Education; science and technology scholarships for young Filipino scientists and students in selected countries through the Department of Science and Technology; the Study Now Pay Later Program for poor but deserving youths who shall enroll or are enrolled in science and technology; the multi-year program of the prosecution service; the modernization program of the National Bureau of Investigation, the Philippine National Police (PNP); and improvement of prison facilities; the judicial reform program; the establishment of preschool and day-care centers nationwide; the summer program for the education of students; the construction of Senior Citizens Centers; and the emergency and contingent needs of the areas devastated by the Mount Pinatubo.
Remaining proceeds in the amount of P10.675 billion went to the following: taxes and fees paid to the Bureau of Internal Revenue and local government units; housing and relocation expenses of informal occupants affected by the developments; survey, titling and masterplanning; site development/utilities; and replication expenses of non-military facilities formerly located in the military camps.
Some P8.482 billion went to the conversion and development of former US military bases like Clark, Poro Point in La Union and Camp John Hay in Baguio as well as to the Subic-Clark-Tarlac Expressway which enhances the complementary development of Subic and Clark.

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