PMO PRIVATIZATION PROCESS
The Marketing Department requests for an appraisal of the asset to be conducted by an independent third party appraiser duly commissioned through a bidding process administered by the Asset Management, Appraisal and Insurance Department. The appraisal company to which the appraisal project is awarded is provided by the Marketing Department with a detailed listing of the properties to be appraised, based on the latest inventory of the asset conducted by the Property Maintenance and Security Department (PMSD).
The Marketing Department prepares a Proposal (“Privatization Plan”) for disposition, which contains a brief background on the asset to be disposed, previous and latest appraisal values, the recommended mode of disposition, pricing and other information. Draft copies of the Asset Specific Bidding Rules (ASBR), Asset Specific Bidding Form (ASBF), or Specific Rule on Negotiated Sale (SRNS) and Negotiated Sale Offer Form (NSOF) and ad placement are annexed to the Proposal. The Proposal is signed by the Deputy Privatization Officer (DPO) for Marketing, or in his/her absence, the Department Manager (DM) for Marketing. The Proposal is then submitted to the Chief Privatization Officer (CPO), for consideration and approval.
If approved, the Proposal is referred back to the Marketing Department for implementation.
If not approved, the CPO advises the Marketing Department on the recommended course of action and/or modifications to the Proposal.
For big ticket assets, the Proposal is endorsed to the Privatization Council (PrC) for approval.
The Marketing Department proceeds with the implementation of the approved Proposal by publishing an Invitation to Bid in national newspapers of general circulation for three (3) consecutive days. However, as the Marketing Department deems necessary, the Invitation to Bid may also be published in a foreign publication, in a local periodical (e.g., regional, provincial newspaper) or on the Internet.
The Marketing Department makes available the offer documents (ASBR & ASBF) or (SRNS & NSOF) and the Asset Specific Catalogue (ASC) or Information Memorandum to interested parties for a nominal fee.
Prospective bidders are allowed to undertake a due diligence study or conduct ocular inspections of the asset for sale.
The Marketing Department formally notifies the Commission on Audit (COA) of the schedule of bidding and furnishes the latter copies of the relevant bidding documents at least ten (10) days before the bidding date.
The PMO Internal Audit Service (IAS) is likewise formally notified of the scheduled bidding and furnished copies of the bidding documents.
The Marketing Department conducts the public bidding at least ten (10) days from the first day of publication.
The bidding is declared successful if at least two (2) qualified bidders submit offers at the specified date and time. For Offers for Negotiated Sale, one offeror is acceptable. After one failed bid, a negotiated sale may be pursued.
Immediately after the bidding, the Marketing Department prepares a recommendation to the CPO to accept or reject the highest bid received.
In the event of a failed bidding, the Marketing Department prepares a report to the CPO and recommends a re-bidding of the property, or a negotiated sale offering where applicable.
The CPO acts on the Marketing Department’s recommendation for acceptance of the highest bid received.
If approved, the Marketing Department formally endorses the proposed sale to the Privatization Council (PrC) for confirmation. The endorsement is signed by the CPO, or in his absence, the DPO for Marketing.
If disapproved, the concerned bidder is immediately notified of the PMO’s decision and the bid deposit is returned.
The Technical Committee (TechCom) of the PrC and subsequently, the PrC itself deliberates on the proposed sale endorsed by the PMO. The PrC then formally notifies the PMO of its decision.
If the PrC does not approve the sale, the Marketing Department immediately notifies the concerned bidder and the bid deposit is returned.
Under certain circumstances, the PrC may defer approval of a proposed sale and/or impose conditions prior to approval. The Marketing Department promptly informs the concerned bidder of such deferment and/or conditions.
Upon being formally notified of PrC’s approval of the proposed sale, the Marketing Department issues a Notice of Award to the winning bidder. The Notice of Award a) informs the bidder of PrC’s approval of the sale and b) reiterates the provision in the ASBR or SRNS requiring the winning bidder to pay the balance of the purchase price within a reasonable period from receipt of the Notice of Award, otherwise, the bid deposit will be forfeited in favor of the PMO.
The PMO Legal Department is requested to prepare the Closing Documents (e.g., Deed of Absolute Sale).
The winning bidder pays the balance of the total purchase price. The Legal Department finalizes the Closing Documents.
The Legal Department, in coordination with the Marketing Department, schedules the signing of the Closing Documents.
After all documents have been signed, the Asset Management Department, the PMSD and the IAS are notified of the completion of the sale and requested to schedule the turn-over of the properties to the buyer, in coordination with the Marketing Department. The COA is likewise notified of the completion of the sale.
The properties are formally turned over to the buyer by the PMSD, in the presence of representatives from the IAS and COA.