By Aubrey Rose A. Inosante, Reporter
THE DEPARTMENT of Finance (DoF) is eyeing to raise P193.65 billion from the privatization of big-ticket government assets, including the Financial Center Area in Pasay City and Food Terminal, Inc. (FTI) property in Taguig City, by 2026.
In a document sent to BusinessWorld, the Privatization and Management Office (PMO) outlined a pipeline of 11 major assets slated for disposal this year and in 2026.
Finance Undersecretary Catherine L. Fong said the department has a “solid plan” for privatization but expects challenges in implementing it.
“The reason I’m not confident is that even if there’s a willing buyer, every sale includes so many things we need to do or fix before a sale is actually concluded and it always takes time,” she said in a Viber message on Monday.
The 2026 pipeline includes the 129,548-square-meter (sq.m.) Financial Center Area in Pasay City which has an estimated value of P53.5 billion.
The sale of the FTI property in Taguig City is estimated to generate P40.4 billion.
Also, up for sale are the Ecology Villages I, II, and III in Makati City, collectively valued at P13.61 billion.
Ms. Fong earlier said the PMO is currently in the process of selling the Ecology Villages to the occupants but may take a while since they still need to determine the metes and bounds, subdivide titles and negotiate on the common areas.
The Mile Long Complex in Makati City, valued at P12.26 billion, is also scheduled for privatization next year.
The sale of the 210,000-sq.m. National Housing Authority property in Tala, Caloocan is expected to generate P2.74 billion.
“Currently classified as PEZA (Philippine Economic Zone Authority) area occupied by various locators and under the management of Land Bank Resources and Development Corp. (LBRDC),” it said.
The Pioneer Glass Manufacturing Corp. property in Rosario, Cavite, which covers 17 parcels of land, is expected to generate P2.06 billion. The land is currently occupied by around 15 informal settler families.
The PMO also plans to sell 24 condominium units and 21 parking slots at the Atrium in Makati City, with an estimated value of P449.6 million.
The list also includes the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plants, even though the Power Sector Assets and Liabilities Management Corp. issued a notice of award last month to the Thunder Consortium. The consortium, composed of Aboitiz Renewables, Inc., Sumitomo Corp., and Electric Power Development Co., submitted a P36.27-billion bid.
The PMO clarified that the sale of the CBK power plants is “still awaiting financial close.”
SALE OF SHARESThe government is also planning to sell its shares in several companies, including South Luzon Expressway Corp. and Semirara Mining and Power Corp. (SMPC).
According to the PMO, it plans to sell 725 million shares in South Luzon Expressway, which are valued at between P12.04 billion and P24.8 billion, based on a per-share value ranging from P16.61 to P34.21 apiece.
It also plans to sell over 145 million shares in SMPC, valued at P4.73 billion or P32.50 per share.
Consunji-led SMPC is the country’s largest coal producer. It supplies fuel to power plants, cement factories, and other industrial facilities across the Philippines, and exports to markets including China, South Korea, and Brunei.
The government is also looking to sell 682 million shares in United Coconut Chemicals, valued at P2.82 billion or P4.13 apiece. The state currently holds a 92.85% ownership stake in the company.
Asked about the exclusion of Star City amusement park in Pasay City from the list of assets to be privatized, Ms. Fong said the property is being used to back Sukuk bonds.
“We cannot sell it until the Sukuk bonds are done. Although we’re open to selling it in advance but we cannot transfer ownership until after the period of the Sukuk bonds,” she said.
The government is targeting to generate P101 billion from the privatization of assets in 2026.
For 2025, Ms. Fong said the government has collected P5.53 billion in privatization revenues, exceeding its P5-billion target.
Finance Secretary Ralph G. Recto earlier said no other major assets are expected to be sold this year aside from the Laguna power plant.
AMBITIOUS GOALAnalysts said the government hitting its “ambitious” privatization goal remains feasible but cautioned against relying on asset sale to address fiscal constraints.
“It is ambitious but feasible provided the government accelerates the pipeline and addresses investor concerns such as regulatory stability, asset valuation, and ease of transaction,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.
Mr. Rivera warned that privatization should not be pursued solely to generate revenues, but to improve efficiency, reduce fiscal risks, and deliver improved public services.
“If an asset is well-managed or strategic to national interest, NG (National Government) should retain control. But if underperforming or commercially viable in private hands, privatization, done right, can help fund infrastructure, social programs, and debt reduction without raising new taxes,” Mr. Rivera added.
Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the privatization target is “ambitious but doable.”
“The CBK sale was a strong start, and the pipeline is deep,” Mr. Ravelas said in a Viber message on Monday.
He also suggested that after the CBK, the government can work on the privatization of the Agus-Pulangi hydropower complex in Mindanao.
