These properties vary in terms of use: some are fully utilized, others are underutilized or idle. Some are classified as alienable and disposable, while others remain inalienable.
Land ownership across public institutions
Several national government agencies possess significant landholdings. These include the Armed Forces of the Philippines/Department of National Defense, Bases Conversion and Development Authority (BCDA), Bureau of Corrections, Philippine Reclamation Authority, Manila International Airport Authority, and Philippine Ports Authority, among others.
In addition, Government-Owned and -Controlled Corporations (GOCCs), government instrumentalities, and local government units (LGUs) own substantial real estate assets.
Public-private engagements in land development
Over the years, the government has engaged the private sector in the sale or lease of these lands.
Notable examples include:
Food Terminal Inc. auctioned off a sizeable portion of its property in Taguig City;
The University of the Philippines has leased out its property along Katipunan Avenue in Diliman;
The Philippine Reclamation Authority and the City Government of Pasay have approved reclamation projects where they will own land;
BCDA partnered with the private sector to develop the Bonifacio Global City, and
The Provincial Government of Cebu contributed land to form part of the Cebu Property Ventures and Development Corp.
Building on these experiences and within the framework of existing laws and policies, government agencies have multiple options to optimize the value and use of their land.
Specifically, a government agency may consider any of the following six strategies:
Enter into joint ventures (JVs) – The agency may contribute the usufruct of its land to a joint venture with the private sector under a Public-Private Partnership (PPP) arrangement. Projects such as terminals, school buildings, or socialized housing for public use may be pursued under the PPP Code.
Lease land for public Use – The government may lease land to the private sector for development into infrastructure or facilities such as solid waste management centers, government buildings, or public markets. These leases, when for public use, must likewise comply with the PPP Code.
Undertake commercial JVs or leases – For purely commercial purposes (e.g., malls, hotels), agencies or LGUs may enter into joint ventures or leases outside the coverage of the PPP Code. These arrangements may follow agency-formulated guidelines or ordinances enacted by local governments.
Procure projects using government funds – An agency may fund and procure infrastructure projects such as irrigation or energy facilities to be built on its land. Such procurements are governed by the New Government Procurement Act.
Sell the property – Real estate may be sold through public auction in accordance with applicable Commission on Audit (COA) rules or, where applicable, under the 2025 Guidelines on Privatization and Disposition issued by the Privatization Council.
Set up a subsidiary – A government agency may establish a non-chartered corporation under the Revised Corporation Code, assign the property to it, and later dispose of the corporation and its assets through the stock market. This approach is referred to as corporatization.
Generating revenues, increasing land value
In summary, a government agency can sell, build on, contribute, or lease out its land.
These options allow the government to generate revenue, increase land value, and maximize land use while providing public services, directly or indirectly.
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