The government is planning to offer P12.5 billion of the P50-billion reconstruction bonds to finance disaster-recovery projects to the private sector by the end of this year.

Finance Secretary Margarito B. Teves Friday said this is an option that they are considering to raise the funding for communities, structures and roads damaged by typhoons “Ondoy” and “Pepeng.”

The Department of Finance (DOF) is still reviewing the revised executive order that will mandate the National Development Co. to issue the P50-billion bonds. The proposed maturity for the bonds is five to 10 years.

DoF officials said the P12.5 billion to be offered to the private sector is the portion supposed to be reserved for the Government Service Insurance System (GSIS).

NDC will issue the P50 billion with Land Bank of the Philippines, Development Bank of the Philippines and Social Security System as buyers. The three institutions will commit P12.5 billion each.

In a press briefing Friday, Private Reconstruction Commission chair Manny V. Pangilinan, also chair of Philippine Long Distance Telephone Co., said they have no plans for the moment of participating in the NDC issuance. Teves is co-chair of the private-led group, also known as the Philippine Disaster Recovery Foundation.

According to the commission, the damage caused by the two typhoons total P30 billion so far. This is P10 billion from Ondoy and P20 billion from Pepeng.

DoF officials said they have yet to propose the planned P12.5 billion offering to interested private sector groups, pending the approval of the revised EO.