The government rejected the notion of selling more military real-estate assets but welcomed potential proposals for joint ventures, the Department of Finance (DOF) said.
According to Finance Secretary Carlos G. Dominguez III, while there is no timeline as to when military land will be up for sale or lease, some form of joint development that presents a stream of revenues to the nation’s coffers is acceptable.
“There is no particular schedule yet for which ones, but our idea is really not to sell. Our idea is some kind of joint venture so that there is continuing value that will be received by the Treasury,” Dominguez told financial reporters.
He added the military assets would be used to support the expenses of the Armed Forces. The Philippines Bases Conversion and Development Authority (BCDA) is the agency empowered to go into joint ventures.
“It’s the BCDA because they are empowered by law. And the law says 50 percent of their income should go to modernization. The other 50 percent [will be] for military expenses,” he added.
Dominguez clarified the equal sharing of the income of the BCDA does not mean automatic appropriation for
military pension.
“No, I never said that. I said there’s 50 percent for modernization and another 50 percent without specification,” he said.
According to the finance chief, the military has many assets scattered around the country as it owns close to 200,000 hectares of undeveloped land.
“It is quite impressive. I think they own close to 200 hectares. They’re not all prime but they have large camps. Fort Magsaysay is 40,000 hectares. There’s a big one also in Bukidnon, I just forgot the name,” he added.
Earlier in the month, the Department of Budget and Management said more military assets may be sold, leased or developed under a joint-venture agreement with private firms, to fund the P7-trillion pension of the military.