Metro Manila (CNN Philippines)—Malacanang confirmed on Monday (January 25) that President Benigno Aquino III approved the privatization of Intercontinental Broadcasting Corporation (IBC-13), based on the recommendation of the Governance Commission for GOCCs (GSG).
IBC-13 started out in 1960 as a private company known as Inter-Island Broadcasting Corp. The Presidential Commission on Good Government (PCGG) sequestered it in 1986 as part of the recovery of ill-gotten wealth.
It has been one of two networks considered as government-owned and controlled corporation (GOCC), aside from Philippine Television Network, Inc. (PTV-4). The State also has a minority share in Radio Philippines Network (RPN-9).
According to Malacanang, PTV-4 is already sufficient to address market failures in the private broadcast industry—such as providing programs with social value but are not considered profitable.
Malacanang added the privatization of IBC-13 would serve as one of the sources of funding to increase PTV-4’s capital.
Public bidding
IBC-13 was in financial distress — operating at an average net loss of P 45.26 million from 2010 to 2014 and receiving operational subsidies amounting to P23.56 million in 2015.
The privatization should pave the way for 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.
