Bureau of Corrections (BuCor) Director General Gregorio Pio Catapang on Monday said the New Bilibid Prison (NBP) site will be transformed into a mixed-use property that could generate steady revenue to support the Bureau’s ongoing development and modernization plan.

Catapang made this remark as BuCor hosted a market-sounding summit, where the bureau unveiled plans to unlock its vast assets in preparation for the NBP’s closure by 2028.

He said the summit focused on the 160-hectare portion of the NBP property available for purely commercial leasing arrangements, and an additional 106 hectares slated for Public-Private Partnership (PPP) or Joint Venture (JV) agreements.

Catapang said while portions of the property will be leased, none of the NBP’s assets will be sold, maintaining government ownership throughout.

He said lease rates are projected between PHP65 and PHP100 per square meter per month, inclusive of VAT, with annual lease revenues from the 160-hectare commercial area ranging from approximately PHP1.25 billion to PHP1.92 billion.

Financial parameters set for open bidding include an upfront payment equivalent to five years of lease, totaling between PHP6.24 billion and PHP9.6 billion.

Lease payments will be subject to an escalation rate of either 5 percent or the Consumer Price Index, whichever is higher, every three years.

The arrangement will be structured as a commercialized long-term lease, with all improvements to the property remaining the sole property of BuCor, ensuring no divestment of government assets.

The initial contract duration is proposed at 50 years, with options to renew for an additional 20 to 49 years.

Catapang said this initiative not only paves the way for the redevelopment of one of the country’s largest correctional facilities but also represents a forward-looking approach to asset management aimed at sustainable institutional growth and modernization. (PNA)