The Bases Conversion and Development Authority (BCDA) said it is targeting to remit P5 billion to the National Government in 2023.
While BCDA reported P7.53 billion worth of remittances to the National Government in 2022, it said its target for 2023 is lower than the remittances in 2022 because of “disposition proceeds.”
“Kung lower ‘yung disposition proceeds, lower din ‘yung remittances,” Aileen R. Zosa, President and Chief Executive Officer (PCEO) told reporters at a media briefing on Monday.
In a statement on Monday, the Authority said despite the economic uncertainty and disruption caused by the pandemic. The P7.53 billion worth of remittances recorded in 2022, it said, is an increase of P2.94 billion or 64 percent from P4.59 billion in 2021.
According to BCDA, this was “mainly” driven by continuing cash inflows from existing joint ventures, leases, and other “income-generating” activities of BCDA.
“Bulk of BCDA’s remittances to the national government came in the form of disposition proceeds amounting to P6.38 billion,” the BCDA said in a statement on Monday.
Further, it said this amount came from the income generated by BCDA in 2021 from the sale, lease, or joint venture development of former military camps in Metro Manila, pursuant to Republic Act 7227 or the Bases Conversion and Development Act.
It will then be allocated and distributed by the Department of Budget and Management (DBM) to the Armed Forces of the Philippines (AFP) and other beneficiary agencies, it noted.
The Authority said the other P885 million came in the form of dividends, while the remaining Php 269 million were from guarantee fees and other obligations
“This strong financial performance is driven by our commitment to our mandate of improving the quality of lives of those not just in our properties, but also those in the surrounding communities. After a very difficult two years, doing more with less will be the underlying principle of all our efforts in BCDA as the national government copes with tightening budgets. Now more than ever, we will be very conscious in generating revenues for the modernization of the AFP,” said BCDA President and Chief Executive Officer Aileen R. Zosa.
Meanwhile, BCDA said the gross disposition proceeds also increased by P7.11 billion or 6 percent to P134.66 billion during 1993 to 2022 period, from P127.55 billion in 1993 to 2021.
The Authority said the P7.11 billion disposition proceeds are “subject for distribution” to the beneficiary agencies scheduled in the 2nd quarter of 2023 upon approval of the concerned government agencies.
BCDA also noted that it contributed P7.206 billion to the Armed Forces of the Philippines (AFP) or P4.562 billion higher compared to the 2021 remittance of P2.644 billion.
Of the gross disposition proceeds from 1993 to 2022, 42 percent or P56.40 billion is allocated to the AFP for its modernization program, giving a boost to military forces who “respond to crises and defend the country against all threats”, BCDA said.
It added that some P9.02 billion was remitted to the other beneficiary agencies, while P560 million was remitted to the contiguous cities of Makati and Taguig, and the municipality of Pateros.
Image credits: Walter Eric Sy | Dreamstime.com