The government is considering selling its stake in SCTEx

THE MINISTRY OF FINANCE (DoF) wants to sell the state’s stake in the Subic region.Clark-Tarlac Expressway (SCTEx), possible to state pension funds, to increase revenues, Treasury Secretary Ralph G. Recto said.

“We are considering selling those shares. Perhaps the Social Security System (SSS) and the Government Service Insurance System (GSIS) can buy them. So that these pension funds can earn,” he told reporters in mixed English and Filipino.

He said the revenue from these sales will be “quite significant.”FI can not do it.”

The finance department is exploring ways to raise more revenue without imposing new taxes.

“I think it’s better oFf that we sell those shares to generate non-tax revenue, and better yet pension funds buy it from us,” said Mr Recto.

The DoF will also soon meet with both pension funds to discuss the proposal, he added.

The Bases Conversion and Development Authority (BCDA) recently announced its plan to sell its 50% stake in SCTEx to Metro Paci’s toll road unitFic Investments Corp. (MPIC) for at least P20 billion.

“Assuming BCDA agrees to sell it, we prefer it to be oFtransferred to the pension funds Ffirst,” Assistant Treasury Secretary Catherine L. Fong said in a Viber message.

“Because if they canFFord to buy it and hold it, they will reap the dividends and value in returnFit of the pensioners. They can choose it Flip it out later,” she added.

Juan Paolo E. Colet, chief executive of China Bank Capital Corp., said the proposed sale could be carried out through a competitive bidding process.

“If the only goal is to maximize the government’s initial revenue, then a competitive bid for the stake may yield the best results,” he said in a Viber message.

“However, a sale to the SSS and GSIS appears to be aimed at both fundraising and allowing the state pension funds to benefitFit of reliable money Flows of SCTEx. In other words, under the (DoF) proposal, the government will get a fair amount of cash, while the pension funds will get a major income-generating asset,” he added.

Mr Recto has said the Finance Department also wants to divest its other assets.

Last year, the department announced its plan to sell its 3.46% stake in NLEX Corp.

NLEX Corp. is part of Metro PaciFic Tollways Corp., the toll road unit of MPIC.

MPIC is one of the three main Philippine units of Hong Kong-based First PaciFIC Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

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