BCDA eyes P1.45 trillion from sale of freehold properties

MANILA, Philippines — State-run Bases Conversion and Development Authority (BCDA) said it  may generate as much as P1.45 trillion in revenues if it is allowed to sell properties for residential purposes with the proposed conversion of five percent of its ecozones to freehold status.

In a statement, the BCDA welcomed the approval on third and final reading of House Bill 8505, which seeks to amend Republic Act 7227 or the Bases Conversion and Development Act of 1992.

The bill seeks to convert five percent of BCDA’s economic zones to freehold status from leasehold, authorizing the BCDA to sell these properties for residential purposes.

Currently, lands within BCDA economic zones are only available on leasehold, preventing the entry of affordable housing developers.

The BCDA stressed that converting portions of the ecozones to freehold will liberalize the residential market for an average Filipino and allow full ownership of the property.

“Once this is implemented, workers within our economic zones will be able to have their own homes, be closer to their jobs and live comfortably with their families,” BCDA president and CEO  Joshua Bingcang  said.

The BCDA estimates that this provision will free up 1,856 hectares of land, which can potentially generate P451.26 billion up to P1.45 trillion in revenues.

It stressed that this revenue may be earmarked for the military pension fund, a priority of President Marcos.

“The amendments we seek will not only extend the life of BCDA, but allow us to further unlock the potential of our ecozones. These will give BCDA the powers to accomplish more for the government and the people, particularly in real estate, infrastructure, and sustainable development,”Bingcang said.

“The House approval provides us one less hurdle to overcome, and we hope the Senate will also support our proposed bill as this will translate to better lives for the Filipino people,” he said.

House Bill 8505 ensures the continuity of the BCDA’s function as a builder of great cities and a prime mover of national development, while also helping the state-run firm conquer legislative hurdles that could restrict the full development of its properties – from Fort Bonifacio in Metro Manila to Poro Point in La Union.

“Our economic landscape is evolving at a tremendous pace, thus the need for BCDA to take big, bold moves to adapt with these changes and deliver the socioeconomic transformation we envision for our development areas in Clark,” Bingcang said.

“This bill will aptly address these gaps in our current charter and we couldn’t be more happy to express our gratitude to our friends in the House of Representatives for passing this bill on third and final reading,” he said.

Under the proposed bill, the BCDA’s corporate term will be extended for another 50 years from its current remaining corporate life of 19 years.

The state-run firm said this extension would  increase the confidence of investors when transacting with BCDA, as well as allow BCDA to continue its support to the AFP Modernization Program.

Moreover, the bill also seeks to increase the authorized capital of the BCDA to P400 billion from P100 billion.