BCDA expects revenues to drop by 20-40% this year

MANILA, Philippines - The Bases Conversion Development Authority (BCDA) said revenue this year will be 20 percent to 40 percent lower than last year because they are not sure if condominium unit sales in The Fort will remain high.

BCDA vice president Aileen R. Zosa said that part of their income comes from their share in condominium sales. “We are not sure if they (developers) can sustain the sales,” she explained.

Sales of condominium units are expected to slide this year as a result of the financial crisis because a big chunk of the buyers are overseas Filipino workers (OFW) and their families. There were OFWs who lost their job because of a slowdown in global demand.

Likewise, Zosa said some contractors may delay their plans to expand their condominium projects given the state of the economy. “We want to be conservative. Some might delay (their projects),” she said.

However, Zosa clarified that all contractors have not yet delayed their plans and that construction in The Fort are all on track. She said what might be delayed are the expansion plans.

The bulk of the expected P3 billion to P4 billion revenue this year will come from the sale of two lots. If the agency is successful in disposing the two properties this year, Zosa said they will receive up front cash of P1.4 billion.

The two lots which are up for sale is the 8.38-hectare property North Bonifacio lots and the 35 hectare Joint United States Military Assistance Group (Jusmag). Of the two, Abaya said that the Jusmag would bring in more revenues.

The revenue target of BCDA for 2009 is P3 billion to P4 billion. In 2008, revenue was P5.007 billion.