Finance Secretary Ralph G. Recto underscored that the newly issued guidelines of the Privatization Council (PrC) that aim to expedite the disposition of non-performing public assets will allow the national government to collect additional non-tax revenues while also encouraging ordinary Filipinos to acquire and invest in these assets.
“Privatization of non-performing assets is among the strategic moves to raise much-needed revenues to fund the growing needs of our people. And by opening the doors for ordinary Filipinos to take part, we are also creating investment opportunities for them while contributing to nation-building,” the Finance Chief said.
“These assets do not generate economic activity or government income (by way of taxes) while it actually costs the national government money to maintain them. We allocate budgetary support for the Privatization Management Office [PMO] for upkeep and pre-disposition activities, and instead of raising revenue and helping stimulate the economy, these assets are a burden,” DOF Undersecretary for Privatization and Partnerships Group (PPG) Catherine L. Fong added.
To support the national government’s gargantuan national budget, the DOF is intensifying efforts to boost non-tax revenues through privatization, in line with Executive Order No. 323, which established the Inter-agency Privatization Council (PrC) and the PMO.
The PrC oversees all national government privatization initiatives while the PMO handles the disposition of assets of government financial institutions and certain government-owned or controlled corporations (GOCCs).
The PrC is composed of the Secretary of Finance as Chairman, with the Secretary of the Department of Budget and Management (DBM), the Department of Trade and Industry (DTI), the National Economic and Development Authority (NEDA), and the Department of Justice (DOJ) as members. The National Treasurer (BTr) and the Chairman of the Presidential Commission on Good Government (PCGG) serve as non-voting members of the Council.
To facilitate the prudent disposition process, the PrC recently revised the Guidelines on the Privatization and Disposition of Assets to institutionalize and harmonize its 24-year-long policies and processes to ensure that public assets are put to productive use by the private sector.
The revised guidelines, which took effect on March 11, 2025, are now more efficient, transparent, and inclusive as they include the ability of the private sector to provide unsolicited offers, alternative modes of disposition, and the accreditation and use of brokers.
The new guidelines also mandate the creation and maintenance of an organized and informative asset registry with digital versions.
“We sincerely hope to receive offers from ordinary citizens wishing to own their own land while helping the national government create better value by speedily disposing of these assets,” Undersecretary Fong said.
Disposition of assets is published through newspapers of general circulation and posted on government websites so the public is informed that these are for sale.
The terms and conditions of the sale are unanimously approved by the entire PrC. The council also sets the minimum base price of each asset which is typically the Fair Market Value (FMV) as assessed by third-party valuations/appraisals.
The guidelines likewise enhance transparency and accelerate property disposition by implementing defined timelines, facilitating a more straightforward purchase process from appraisal to contract signing.
The guidelines can be accessed here: https://www.dof.gov.ph/wp-content/uploads/2025/02/Guidelines-on-the-Privatization-and-Disposition-of-Government-Assets_SIGNED_FINAL.pdf
