The Department of Trade and Industry and the Export Development Council will submit a proposed updated revenue generation scheme of the country’s largest exporters’ group for approval by Congress and President Rodrigo Duterte.
Trade Secretary Ramon Lopez said the updated scheme of Philippine Exporters Confederation Inc. would generate about P68.5 million in revenues yearly from the expanded operation of the World Trade Center, a new hotel and office building.
“We believe the revised revenue plan will be advantageous to both the government and the exporters. All the proceeds will be plowed back to the export sector for export promotion with additional revenue they earned from other activities. They committed to give P75.5 million this 2018,” he said.
The group has presented the plan to the DTI t and EDC, along with the estimated revenue during and after the construction of the hotel and office building.
Philexport assumed the custody and acted as property guardian of the lot where the World Trade Center is located at the time when the government is at a loss of finding the use for the property. The lease period covers 50 years.
The government charged the group P1,000 as the annual lease for the entire property with an agreement that the proceeds from the Philexport’s earning will be used for the development of the export sector.
The WTC lot and the adjacent parcel of land where the hotel and office building are currently undergoing construction remain in possession of the government.
“The government allowed the arrangement as such so support organizations can make money they can plow back for export development. That time, the budget of the government for promotions weren’t as big but the proceeds helped a lot in the sense that the government need not worry where to source budget for export promotion,” Lopez said. Othel V. Campos
Philexport so far has contributed P300 million from 1997 to 2016 from leasing operations.
Starting this year, the group will lease out to third parties the finished portion of the hotel and office building to increase the projected revenue for the year.
The group committed P75.5 million but the actual estimated income is about P52.5 million.