Bases Conversion and Development Authority (BCDA) is allocating P1 billion in capital expenditure (CAPEX) this year, 85 percent of which will be invested for road access to Clark GREENCITY, while revenue generation may be slower at P10 billion.
 
BCDA President and CEO Arnel Paciano D. Casanova said during a year-end press briefing they have allocated P1.5 billion for road infrastructure for GREENCITY over a three-year period to add more value to the Phase 1 comprising of 288 hectares of the total 9,450 hectares of master-planned property Development in Clark.
 
“We are going to complete the site development in a period of three years,” said Casanova.
 
BCDA has entered into a 45-55 joint venture in favor of its partner Filinvest Development Corp. for the development of Phase 1 of GREENCITY. Under the agreement, BCDA will invest P6 billion for road infrastructure, particularly the access road, while the Gotianun Group will develop the internal road network.
 
In terms of revenues generation, BCDA expects about P10 billion this year, which is slower than this year’s record generation of P10.7 billion.
 
“This is an investment year so we have to add more value to our assets, but once we have developed our assets then we can generate more revenues,” Casanova said.  Once these projects have been developed, Casanova said, they can start pre-selling the assets.
 
In addition, BCDA has not lined up much disposition of assets this year being an election year.
 
“There is no much disposition, but which is good because this is an election. We don’t want to be accused of midnight deals,” he added.
 
This means, BCDA’s revenue generation this year will be largely from existing leases and joint venture earnings.
 
However, Casanova said if that BCDA is going to generate huge revenues if they are going to be able to hurdle the development challenges in some of its properties.
 
For instance, he said the Bonifacio South Pointe could easily fetch an upfront cash of P5 billion once the case with the Supreme Court is resolved. The BCDA has decided to rebid the 33.10-hectare Bonifacio South, which was previously awarded to the SM Group, to maximize government revenues from this prime property, which is near the Mckinley area.
 
Casanova said that based on an appraised value in 2013, the property can fetch 78,000 per square meter and current price of P100,000 per square. The current price of the neighboring Mckinley development is already at P180,000 per square meter. This is way above the Sy Group’s offer.
 
In addition, the BCDA also expects revenues from the contested 4.49-hectare property being utilized by SM Aura as parking lot. Other properties include the ARANAI and SRDP South properties.