MANILA – The Bureau of Corrections (BuCor) presented plans to maximize the value of its properties ahead of the scheduled closure of the New Bilibid Prison (NBP) in 2028 through a market sounding summit held at The Somerset in Alabang, Muntinlupa City.

During the summit, BuCor Director General Gregorio Pio P. Catapang Jr. said the NBP property would eventually be redeveloped into a mixed-use area as part of the bureau’s modernization efforts.

The discussions centered on a 160-hectare portion of the NBP property intended for commercial leasing and another 106 hectares identified for Public-Private Partnership (PPP) or Joint Venture (JV) arrangements.

Catapang said the initiative seeks to establish a stable source of income that would help finance BuCor’s development and modernization program.

He clarified that the government would retain ownership of the properties despite the planned leasing arrangements.

Lease rates were projected at PHP 65 to PHP 100 per square meter per month, inclusive of value-added tax. Based on the estimates presented during the summit, the 160-hectare commercial area could generate annual revenues ranging from PHP 1.25 billion to PHP 1.92 billion.

Under the proposed terms, interested parties joining the open bidding process would be required to provide an upfront payment equivalent to five years of lease, amounting to between PHP 6.24 billion and PHP 9.6 billion.

Lease payments will also be subject to adjustments every three years at either five percent or the prevailing Consumer Price Index, whichever is higher.

BuCor said the setup would follow a commercialized long-term lease structure in which all developments and improvements introduced on the property would remain under government ownership.

The proposed lease agreement will initially run for 50 years, with renewal options ranging from an additional 20 to 49 years.

Catapang added that the initiative represents a long-term strategy for institutional growth while preparing for the redevelopment of one of the country’s largest correctional facilities.

Among those present during the summit were Muntinlupa City Mayor Raffy Biazon, Justice Undersecretary Deo Marco, Public-Private Partnership Center Executive Director Rizza Blanco-Latorre, and representatives from Robinsons Land, DoubleDragon Corporation, Solaire Properties Inc., SM Prime Holdings Inc., and New San Jose Builders, Inc..