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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 389
ADMINISTRATIVE ORDER NO. 389 -
GUIDELINES ON THE DISPOSITION OF GOVERNMENT IDLE PROPERTIES LOCATED IN
THE PHILIPPINES
Upon recommendation of the Ad Hoc Committee
created under Administrative Order No. 9, dated September 11, 1992, as
amended by Administrative Order No. 210, dated August 11, 1995, I,
FIDEL V. RAMOS, President of the Philippines, by virtue of the powers
vested in me by law, do hereby order as follows:
Section 1. Definition of Terms. —
The following terms are to be understood and interpreted as follows for
the purpose of this Order:
(a) "Government Idle Properties located in the
Philippines" mean all real properties such as land buildings and other
improvements located in the Philippines and owned by the National
Government through its departments, bureaus, offices, agencies and
instrumentalities, including government owned or controlled
corporations (GOCCS) which have remained unutilized and/or
underutilized.
(b) "Underutilized Properties" mean those which have
not been substantially developed, improved or cultivated for a period
of more than five years.
Sec. 2. Coverage. —
These guidelines shall apply to government idle properties located in
the Philippines. Government idle properties located abroad are exempt
from the coverage as the latter is governed by Administrative Order No.
8, dated 11 September 1992.
Sec. 3. Inventory. —
The Ad Hoc Committee (AHC) created pursuant to A.O. No. 9, as amended
by A.O. No. 210, shall review and complete the existing inventory of
government idle properties located in the Philippines.
On the basis of the said inventory, the AHC shall determine the
following:
(a) Government idle properties suited for retention
by the Government, and
(b) Government idle properties suited for
disposition.
Included in the determination in (a) are at least ten (10) government
lands which can be developed for government offices and/or business
establishments.
Sec. 4. Assets for Retention and Disposition.
The following guidelines shall be observed in order to maximize
utilization of government idle properties located in the Philippines:
4.1. Assets for Retention
4.1.1. AHC shall identify potential areas where
government offices can be located and determine if any of the idle
properties owned by the Government and located in the said area can be
retained. All Government entities that are interested in the property
shall submit their intention to use or acquire said properties and
their reasons therefore, to the AHC within 30 days from receipt of the
AHC notice.
4.1.2. The transfer or conveyance of a government
idle property from one Government institution to another shall be based
on the latest appraisal value of the property, as determined by an
independent appraisal entity.
4.1.3. Upon determination by AHC of government idle
properties suited for retention, it shall submit to the President the
recommended action plan for the latter's clearance.
4.2. Assets for Disposition
4.2.1. All government idle properties located in the
Philippines not identified and determined as suited for retention,
shall be available for disposition. Assets identified by AHC for
disposition through BOT shall be endorsed by AHC to NEDA, upon
clearance by the President.
4.2.2. All other remaining assets identified by AHC
for disposition shall be endorsed by AHC to the Committee on
Privatization (COP), upon clearance by the President.
4.2.3. In the disposition of said assets, COP may
consider alternative divestment schemes such as sale, lease, management
and maintenance contracts or other divestment options.
4.2.4. The offer to private entities shall be through
public bidding. However, if there's a failure to bid during the first
auction, negotiation may be undertaken, as provided by COA Circular No.
89-296.
4.2.5. Sale of all assets shall be published in at
least three newspapers of general circulation in the Philippines for
three (3) consecutive days. Furthermore, the first publication shall
occur at least ten (10) days prior to the scheduled bidding date or
date of negotiation, as provided by R.A. 7661.
Sec. 5. Effectivity. —
This Order shall take effect immediately upon approval.
Done in the City of Manila,
this 27th day of March, in the year of Our Lord, nineteen hundred and
ninety eight.
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