THE Bases Conversion and Development Authority (BCDA) said on Wednesday that it could generate up to P1.45 trillion from land sales if House Bill (HB) 8505 is signed into law.
“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 revenue,” the BCDA said in a statement. It added that the proceeds could go towards funding military pensions.
HB 8505 will allow the conversion of 5% of BCDA economic zones to freehold status from leasehold, freeing up the land to be sold.
The BCDA expects the prospective buyers to be residential developers, who will then offer homes for sale.
On Aug. 22, the House of Representatives approved on third reading HB 8505, which is a proposed amendment to Republic Act No. 7227 or the Bases Conversion and Development Act of 1992.
BCDA said HB 8505 will help it address obstacles to the full development of land it controls.
“The BCDA (needs) to make big, bold moves to adapt to changes (in the economic landscape) and deliver the socioeconomic transformation we envision for our development areas in Clark,” BCDA President and Chief Executive Officer Joshua M. Bingcang said.
Mr. Bingcang said that the bill will also extend the BCDA’s corporate term by another 50 years. The BCDA currently has a remaining corporate life of 19 years.
“This extension will increase the confidence of investors when transacting with the BCDA, as well as allow the BCDA to continue its support to the Armed Forces of the Philippines (AFP) Modernization Program,” it said.
The bill will also increase the authorized capital of BCDA to P400 billion from P100 billion. — Justine Irish D. Tabile