The government is eyeing P20 billion worth of asset sales next year in order to raise funds for infrastructure and social services programs to bouy the country's economy.

The target is P5 billion more than the original programmed privatization revenues of P15 billion for next year, according to Finance Secretary Margarito Teves.

Teves said the government would dispose of its 40 percent stake in PNOC-Exploration Corp. (PNOC-EC) as well as the sprawling 120-hectare property of Food Terminal Inc. (FTI) in Taguig City.

According to him, both assets  are scheduled to be sold within the first semester of 2009. The privatization of the assets was previously set for this year but was postoned due to volatile market conditions brought about by the financial turmoil in the US.
 
"Next year, hopefully we would have the likes of PNOC-EC and FTI. There might be some opportunities that may come along the way but these are the major ticket items for next year," Teves noted.
 
The finance chief said the government would tap a financial advisor to update the valuation of its interest in the wholly-owned geothermal and exploration arm of PNOC. The stake was initially valued at roughly P16 billion.
 
“We'll get a financial advisor, there was a financial advisor but conditions had changed. We will have to take a look again by the time we propose to sell it. October this year might be different from March next year,” said Teves.
 
On the other hand, Teves pointed out that the government is looking at raising about P10 billion from the sale of the FTI property instead of P15 billion due to the condition of the real estate market in the Philippines.
 
"We like to be conservative at this point," he clarified.
 
Teves said, meanwhile, the government would try to book the P26 billion proceeds from the sale of its remaining stake in oil giant Petron Corp. to London-based Ashmore Group on or before December 30.
 
In January, the government successfully raised P8.9 billion from the sale of its remaining 10 percent stake in power retailer Manila Electric Co. to state pension fund manager Government Service Insurance System, which recently sold the same to San Miguel Corp.
 
Last year, the government generated a record P90.6 billion from the sale of its interests in Philippine Telecommunications Investments Corp., PNOC–Energy Development Corp., and other assets.