President Benigno S. Aquino III has approved the privatization of Intercontinental Broadcasting Corporation (IBC-13) based on the recommendation of the Governance Commission for GOCCs (GCG).
The privatization rationalizes the State’s portfolio in the Communications Sector in view of the overlap with PTV-4, which is already sufficient to address market failures in the private broadcast industry, such as providing programs with social value but are not considered profitable. This comes in the wake of the recent revitalization of PTV-4 mandated by Republic Act No. 10390 which identified the privatization of IBC-13 as one of the sources of funding the increase in PTV-4’s capital.
IBC-13 was also in financial distress–operating at an average net loss of P45.26 million from 2010 to 2014 and receiving operational subsidies amounting to P23.56 million in 2015. The privatization should pave the way for the infusion of additional capital to revitalize the network, which will also be able to operate with more flexibility as a private entity.
The privatization of IBC-13 will be done through public bidding with an estimated floor price of P1.977 billion. A committee composed of representatives from GCG, the Presidential Communications Operations Office (PCOO), and IBC-13 shall implement and conduct the said process.
Since GCG’s establishment in 2011 as the central advisory and oversight body for ensuring the active exercise of the State’s ownership rights in GOCCs, it has abolished 22 nonperforming GOCCs and classified 25 more as inactive or nonoperational.