The awarding of the development contract is waiting only for the approval of Finance Secretary Juanita Amatong, a transaction that would give the government at least ¥1.7 billion.
Finance Undersecretary Eric O. Recto told reporters over the weekend that the privatization committee has re-submitted its recommendation to award the contract as soon as possible.
The Japan properties were originally bid out in November last year but the Arroyo administration did not award the development contract amid protests from legislators who thought the properties were actually sold.
"We’ve been explaining since then that we are not selling these properties," Recto said. "We only bid out the development contract, the property will continue to belong to the Philippine government."
The waiting period lapsed for the first time in March but the bidders extended their bids for another 110 days and this period lapsed for the second time this July.
According to Recto, the bidders willingly extended their bids for another 110 days, indicating their continued interest in the property.
"So the bidding and awards committee is re-submitting its recommendation to award the contract to the winning bidder," he said.
When the waiting period first lapsed in March, the winning bidder has already offered to accelerate the payment for the development contract.
Sources disclosed that the bidder-a Japanese property developer-has offered to advance the settlement of the Y1.7-billion bid price to six months after the award instead of the original three years.
Distancing itself from the expected political backlash, Malacanang has left it up to the Department of Finance to decide on whether it would award the controversial Japan properties to the winning bidders for the development contract.
Amatong, however, has not authorized the issuance of a notice of award and as early as Friday, sources said the bidders have started to renew the bonds they posted when they made their bids.
The transaction became controversial when legislators led by Sen. Aquilino Pimentel opposed what they thought was the sale of the properties.
Under the terms of the privatization scheme, the government would get at least Y356 million when the agreement is signed between the Philippine government and the successful bidders and another Y384 million after three months.
The properties involved one 4-storey building space in Tokyo with a total floor area of 2,489 square meters and two other properties in Kobe with 3,014 square meters and 764 square meters.
"Essentially, all three properties will be leased for 50 years under a variation of the BOT scheme," said Recto. "The properties are leased for an initial period of 25 years which would be renewable for another 25 years."
The 50-year tenure is a stretch of Philippine laws but sources said the properties had to be packaged for that long in order to get the maximum price.