The Bureau of Corrections (BuCor) hosted a market sounding summit to unveil plans to lease its vast land assets as part of preparations for the closure of the New Bilibid Prison (NBP) by 2028.

BuCor director general Gregorio Catapang Jr. said the current prison site will be transformed into a mixed-use development, marking a significant milestone for the property.

The summit highlighted a 160-hectare portion of the Bilibid property available for purely commercial leasing, alongside an additional 106 hectares designated for public-private partnerships or joint venture agreements.

The strategic move aims to generate steady revenue to fund the bureau’s ongoing development and modernization plan, Catapang said.

Catapang assured the public that while sections of the property will be leased, no government assets will be sold. Monthly lease rates are projected between P65 and P100 per square meter, inclusive of value-added tax.

Based on those rates, annual lease revenues from the 160-hectare commercial area could range from roughly P1.25 billion to P1.92 billion.

Financial parameters set for open bidding require an upfront payment equivalent to five years of rent, totaling between P6.24 billion and P9.6 billion.

Rent payments will be subject to an escalation rate every three years of either 5 percent or the Consumer Price Index, whichever is higher.

The arrangement will be structured as a commercialized long-term lease. All improvements made on the property will remain the sole property of the bureau to ensure there is no divestment of government assets.

The proposed initial contract duration is 50 years, with options to renew for an additional 20 to 49 years.

Catapang said the initiative paves the way for the redevelopment of one of the country’s largest correctional facilities while utilizing asset management to secure sustainable institutional growth.                        DT