According to the Department of Finance (DOF), the bidding for the build-operate-transfer (BOT) contract is now being finalized and the terms of reference are being readied for the prospective bidders.
Finance Undersecretary Eric O. Recto said plans are also under way for the auction of the government’s Mile Long property which includes Ecology Village, and some undeveloped parcels of land in the same area of Makati City.
However, Recto said the auction will likely cover only the undeveloped portions of the property where there are no structures and occupants to complicate the bid.
The government had planned to raise at least P1 billion from the sale of its idle assets this year.
For the Japan properties, at least 13 prospective investor groups have signified interest in bidding for the contract and the Bids and Awards Committee (BAC) has already invited investors to apply for eligibility both in the Philippines and Japan.
The bidding has been set on Nov. 28.
The BAC has appointed the engineering consultancy group of TCGI Engineers-Yoshi Kankyo Kentiku Sekkei Co. Ltd. to advise the government on the optimum development plan for the properties.
The group would prepare the design parameters for the consular offices and ambassador’s residence as well as conduct market appraisals for the properties and preparation of the bid documents.
The DOF said the developers would be able to build the structure, operate and lease out space and ultimately, the buildings and permament improvement would be turned over to the government free of charges, liens, taxes and encumbrances.
The Arroyo administration made a commitment last year to World War II veterans that government would sell its assets in Japan to finance the retirement benefits that have so far not received budgetary allocations.
The DOF has been looking at several ways to dispose of the assets in Japan and whether it was even advisable to do so at the time when the Japanese economy is in recession and opportunities are not clear.
After closing the joint-venture deal for the controversial Roponggi property, the government still had four disposable real estate assets in Japan – two of them were in Tokyo, one in Kobe and one in Osaka.
One of the properties in Tokyo is currently in use as the official residence of the Philippine ambassador to Japan and the other is the former location of the Philippine embassy.
Since the Philippine Embassy is now located in the Roppongi estate, the former site could now be disposed of, depending on the outcome of the review process.