The National Government hopes to raise up to P22 billion from the privatization of government assets this year.
Committee on Privatization (COP) documents show that the bulk of the P22-billion privatization proceeds will come from the privatization of three big-ticket items namely the government shares in Manila Electric Co. (Meralco), Philippine National Construction Co. (PNCC) and Philippine National Bank (PNB).
The National Government intends to reduce budget deficit to P62.5 billion or 1.8 percent of gross national product (GNP), from P111 billion or 3.6 percent of GNP last year.
COP said other major privatization transactions scheduled in the near-term include: National Power Corp., Philippine National Oil Co.- Energy Development Corp., Food Terminal Inc., Philippine Phosphate Fertilizer Corp., IBC-13 and RPN-9.
COP said in the future, there will be more privatization activities in the infrastructure sector such as airports, ports and railways.
As of end-December 1999, the list of government-owned corporations up for privatization includes: Al Amanah Islamic Investment Bank of the Phils., Apo Production Unit, Basin Dredging and Development Corp., Integrated Feedmills Corp., Leyte Park Hotel, Marawi Resort Hotel Inc., Mindeva Coco-coir Development Corp., Mountain Spring Development Corp., Northern Foods Corp., Philippine Fruit & Vegetable Industries, Philippines Pyrite Corp., Phividec Panay Agro-Industrial Corp., Republic Transport and Shipyard Corp., Ridge Resort and Convention, and San Carlos Fruit Corp.
Other items to be sold are Development Bank of the Philippines Data Center Inc. and Government Service Insurance Corp., Meat Packaging Corp.
Under the National Development Co., the items to be privatized include Batangas Land Co., Inter-Island Gas service Storage Corp., GY Real Estate Inc., Kamayan Realty Corp., Manila Gas Corp., Metro Transit Organization Inc., Pagkakaisa Gas Storage Corp., Refractories Corporation of the Phils.
Under the PNOC wings, the firms to be disposed are: PNOC-Energy Development Corp., Filoil Industrial Estate Inc., and Filoil Refinery Corp.
For the past 13 years since the creation of COP in 1987 to Dec. 31, 1999, there were some 460 companies/assets that were privatized, generating gross revenues of P191.5 billion for the government.
Total remittance to the National Treasury arising from privatization reached P121 billion .
The government had a fiscal surplus from 1994 to 1997 largely due to significant contributions coming from privatization remittances during the period. In 1999, privatization remittances reached P5 billion.
The Republic Act 8785 passed by Congress extended the life of COP and APT by one year from Jan. 1, 2000 to Dec. 1, 2000. Under the said law, disposition activities can only be undertaken by COP and APT until Nov. 30, 2000.