President Benigno Aquino III has given the go signal for the privatization of the Intercontinental Broadcasting Corporation (IBC-13), Malacañang said Monday.

The privatisation of the government network was based on the recommendation of the Governance Commission for Government Owned or Controlled Corporations (GCG), a media release said.

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The GCG statement said it was in line with the rationalization of the government’s communications portfolio, especially since the Philippine TelevisionNetwork, Inc. (PTV-4) already fulfils the function of the government in the sector, which is to “address market failures in the private broadcast industry such as providing programs with social value but are not considered profitable.”

The sale of IBC-13, through public bidding, will help fund the additional capital allotted for PTV-4’s revitalization.

Its estimated floor price is P1.977 billion.

The privatization will be implemented by a committee composed of the GCG, the Presidential Communications Operations Office (PCOO) and IBC-13.

IBC-13 was founded in 1960 as a private company. It was sequestered by the Presidential Commission on Good Government (PCGG) in line with the recovery of ill-gotten wealth during the Marcos years.

The GCG said IBC-13 has been 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.”

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