Finance Secretary Margarito B. Teves said he was still hopeful that they could beat their own self-imposed deadline of raising P30 billion from the sale of state-owned assets in Food Terminal Inc. (FTI) and PNOCExploration Corp.

That they only have less than 60 days to privatize these two assets is just something they have to deal with. “I would rather try to do it this year (and) to do our best, but we don’t know the outcome,” said Teves last Friday. He later added that there is always “next year.”

Teves said the first priority is pricing and if the government would not be able to receive fair price for the shares then they could renegotiate until parties involved reach an amicable agreement.

Of the two assets, he said FTI could be considered as the easier to dispose of than PNOC-EC. “There are issues in PNOC-EC that are currently discussing. But these shares are “saleable” and has been earmarked for privatization,” he emphasized. The original target for the sale was September 30.

FTI, which was selling for P13 billion, was opened to a public bidding earlier this month but it was declared a failed bidding because the desired amount has not been offered.

Teves said that because of current market conditions, it has not been easy disposing the two major items. “It is really the overall condition that’s preventing us from accelerating the sale of our other assets.”

The next plan is that by November or December, they expect to complete the sale of the first tranche or 40 percent in PNOC-EC worth P10-11 billion while the balance or 60 percent has also been programmed for privatization, possibly next year. The estimated value of the 60 percent shares is P20-25 billion.

The government owns 99.79 percent of PNOC-EC. PNOC-EC has coal operating contracts in Zamboanga, Surigao del Sur and Isabela. It has terminals in Cebu, Navotas and a commercial port in Batangas.

Teves said DoF is also exploring the finances of other PNOC subsidiaries to raise more funds this year, other than through asset sale. This would include higher dividend payments.

Last year the government sold assets worth P31.3 billion combined. State holdings that were privatized were shares in Manila Electric Co. and Petron Corp. The amount is lower compared to the P92-billion privatization proceeds collected in 2007. The original 2009 program was only P15 billion.

Privatization proceeds are considered as non-tax revenues. For 2009, the program for non-tax revenues is P156.5 billion.