Gov’t selling stake in Subic Shipyard

The government is wrapping up the sale of its 10 percent stake in Subic Shipyard in Olongapo, Zambales, to meet its reduced privatization goal of P2 billion this year.

Finance Undersecretary John Philip Sevilla yesterday said the 10 percent share of the government in Subic Shipyard should fetch between P400 million and P700 million.

Sevilla, the point person for privatization, said the Subic Shipyard stake is among the small-ticket items lined up for sale this year, including "various pieces of real estate."

"These are all small-ticket items but negotiations are now in the advanced stages," he said,

Sevilla said government remains optimistic of meeting its privatization goal this year after lowering it from the original P30 billion.

The major assets in the original P30 billion target included the Food Terminal Inc. property in Taguig City and the share of PNOC-Exploration Corp. in the Malampaya gas consortium.

Sevilla said the sale of the Navy lots along Roxas Boulevard and in Fort Bonifacio may have to wait since the Navy needs to secure congressional. The Department of Finance has a lot of catching up to do to meet its privatization goal with barely three weeks to go before the year ends.

As of the third quarter, the DOF registered a privatization income of P400 million.

Keppel Marine Philippines Inc., a unit of Keppel Singapore, is the single biggest shareowner of Subic Shipyard and Engineering Inc. with 41.6 percent after buying out the interests of International Container Terminal Services Inc., Magsaysay Shipping Corp., SM Development Corp., and Insular Life Assurance Co. BY DENNIS GADIL - malaya.com.ph