FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

introduced by Honorable Rufus B. Rodriguez and
Honorable Maximo B. Rodriguez, Jr.

House Bill No. 4242

EXPLANATORY NOTE

The Food Terminal Incorporated (FTI) was the offshoot of a Presidential
directive issued on January 1967, creating a committee assigned to look into the
upliftment of the agricultural economy of the country. In turn, the committee
endorsed a system designed to ensure price stability and increased productivity
which led to the foundation of the Greater Manila Terminal Food Market (GMTFM)
on April 30, 1968 through Presidential Decree No. 347.Under the management of
Development Bank of the Philippines, it was registered as a private corporation with
the Securities and Exchange Commission (SEC) on May 3, 1968. On March 27,
1974, a new corporate name for GMTFM was adopted: FOOD TERMINAL
INCORPORATED,

FTI operates one of the largest industrial complexes in Metro Manila at
around 120 hectares. The Agro- industrial-Commercial Estate was envisioned to
trigger the entry of private entrepreneurs at the vast leasable portions of the FTI site
and to create a conducive business atmosphere essential to the development of the
complex.

Currently, more than 300 firms from light to medium scale industries have
established their plants and fa‘
lines of production and services such as electronics, food, transport, garments, and

8 in the complex. They are engaged in various

general warehousing

In 2009, the country's budget deficit swelled to P298.5 billion, more than the
expected P290 billion for the year and also higher compared to the P250 billion
target. The higher than expected financial gap was due to lackluster revenues
following tax cut measures. This led the goverment ta planning the sale of big-ticket
state assets like the FTI. However, selling the FTI for a starting bid 13 billion pesos


would not even make a dent in the country's budget deficit. As such, it would be a
better decision to lease out the property considering the long-term benefits that it
could bring. Leasing out means that the goverment still owns the property and they
would get a steady income from the rent paid by the lessee.

Also, an official of the Department of Finance (DOF) admitted that they are
not expecting to realize the full value of the property. The most recent property deat
in nearby Fort Bonifacio was priced at about P36,000 per square meter but said DOF
official had said the govemment was not expecting to get that price and was ‘sticking
to the P13 billion minimum bid. This means that the government would somehow be
short-changed.

In view of the foregoing, immediate approval of this bill is eamestly requested.

RUFUS B. RQDRIGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS: )
REPUBLIC OF THE PHILIPPINES )

FIRST REGULAR SESSION )
HOUSE OF REPRESENTATIVES
4242

Introduced by Honorable Rufus 6. Rodriguez and
Honorable Maximo B. Rodriguez, Jr,

AN ACT
PROHIBITING THE SALE OF THE FOOD TERMINAL INCORPORATED
COMPLEX

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled

SECTION 1. The sale and disposition of the Food Terminal incorporated (FTI)
complex in Taguig City is hereby prohibited: Provided, however, that the goverment
is hereby authorized to lease out or enter into joint ventures on the FTI complex.

SEC. 2. Implementing Rules and Regulations - The Department of Finance shall
promulgate the rules and regulations to necessary implement the provisions of this
Act.

SEC. 3, Repealing Clause - All laws, decrees, orders, instructions, prociamations,
rules and regulations or parts thereof, which are inconsistent with this Act, are
hereby repealed, modified, or amended accordingly.

SEC. 4. Separability Clause - Should any provision of this Act or any part hereof be
declared unconstitutional or invalid by a court, the other provisions hereof which are
not affected thereby shail remain in force and effect.

SEC. 5. Effectivity - This Act shall take effect fifteen (1 5) days after its complete
publication in the Official Gazette or in a newspaper of general circulation.

Approved,