DoF: Gov’t privatization income up 129% to P4.44B

The government gained a P4.44 billion income from sales and lease of government assets and dividends this year, helping raise its non-tax revenues to a record P555.3 billion, the Department of Finance (DoF) said in a statement released Saturday.

The DoF said the Privatization Management Office reported a 129 percent growth in the related income from the level a year ago, which increased the total non-tax revenues by 45.6 percent.

“On top of tax collections, the non-tax revenue sources help us marshall additional resources to equip the government in delivering more and better services in critical areas like healthcare, education, food security, social protection, and national security,” DoF Secretary Ralph Recto said.

Major privatization transactions

The major privatization transactions this year include the sale of government shares in the NLEX Corporation which amounted to P2.9 billion.

The government negotiated with Metro Pacific Tollways Corp. of the Manny Pangilinan Group to secure the divestment.

Another is the awarding of the Public-Private Partnership Solicited Proposal for the Rehabilitation of the Ninoy Aquino International Airport to a consortium led by San Miguel Corp.

DoF said the government will be receiving a total of P900 billion in revenues from the partnership over 15 years.

“More privatization of public assets is underway with the approval of the guidelines on the Privatization and Disposition of Government Assets by the Privatization Council in September,” DoF said.

Semirara Mining Corporation

In September, DoF Undersecretary Domini Velasquez said officials have been studying the privatization of government shares in Semirara Mining Corporation to further raise non-tax revenues.

She said the government owns around 145 million shares in Semirara.

“We needed to scout for new funding sources without inflicting new taxes,” Velasquez said.

Consunji-owned Semirara supplies coal to power plants and other industrial firms in the country.

Velasquez said five other properties have been under consideration for privatization: Star City, Mile Long Building of the National Economic and Development Authority , United Chemicals Inc., Elorde Sports and Tourism Development Corporation, and Condominium Units in Atrium, Makati City.

“These idle assets will not only generate revenues for the government but will also increase the value of these assets that have been lying around in Metro Manila,” she said.

The DoF said Star City has an appraised value of P15 billion.