6 firms eye military properties for lease

MANILA, Philippines - At least six firms have expressed interest in the proposal to lease military properties to bankroll the modernization of the Armed Forces of the Philippines (AFP).

Acting Navy chief Rear Admiral Danilo Cortez said one company has already submitted a proposal to Malacañang while the rest are conducting studies on the viability of the project.

“One (firm) is serious and has submitted a proposal to the Office of the President... a minimum of five (inquired about the project) but there is no black and white yet. These are exploratory talks but by all indications, they also want to participate,” Cortez said.

The Malaysian Resources Corp. Berhad submitted a proposal that would involve the lease of a 33-hectare Navy property at Fort Bonifacio in Taguig.

Cortez though declined to identify the five other interested firms pending the formal submission of their proposals.

But he said the interested parties are both local and foreign investors.

“They (five firms) will conduct research before giving offers. They want to determine if the project is viable,” the Navy chief said.

Cortez said they are continuously coordinating with other state agencies to discuss the legal matters relevant to the proposal.

“Our talks with agencies like NEDA (National Economic and Development Authority) and the Department of Finance are ongoing... We have received proposals and it’s just a matter of threshing out legal matters so we can maximize the use of the real estate properties,” he said.

Cortez though would not give a timetable on the project but assured the public that processes are being fast-tracked due to the need to modernize the AFP.

“We really need to modernize... we are doing our very best to finish this,” he said.

Cortez said among the Navy-owned lots that may be leased are those located in Manila, Taguig, Cebu, and Palawan.

During his first State of the Nation Address last July, President Aquino said he was studying a proposal to lease military lots to support AFP modernization.

Mr. Aquino said this would allow the military to procure equipment without bloating the deficit, which is expected to reach P325 billion this year. Authorities are still determining how much would be generated from the project.

The AFP Modernization Act, which took effect on Feb. 23, 1995, has given the military the opportunity to modernize in 15 years with a total fund of P331 billion.

More than 15 years have passed since the law was enacted but there are views that the AFP is not even close to what may be called a modern battle force.

The delay in the law’s implementation has been attributed to the lack of state resources.