INTRODUCTION
I am delighted to be with you on the occasion of the launching of heritage park and the release of the first tranche of the bases conversion program’s securitization scheme.

I recall that this scheme was conceived at the time when the nation was debating on the fate of Clark and Subic and how to effect the conversion of these and other American baselands into productive use. As then secretary of national defense, I had been recommending since 1990 that the necessary resources to effect such conversion could be generated from the privatization of certain portions of various military camps within Metro Manila. This also arose out of the need to move major operating units of the AFP away from the National Capital Region so that they could be more effective vis-a-vis the coup attempts at the time.

I was confronted with the serious evaluation of the strategic importance of some properties of the Armed Forces of the Philippines and also had to contend with the sentimentalism of some of military leaders who had become naturally attached to and comfortable with the camps they had been assigned to for many years.
DISPLAYING THE POLITICAL WILL
Sentimentalism had to give way to the realities of the present and the needs of the future.

To cushion the effects of U.S. military withdrawal and to bolster the economy, we had to make productive use of the reverted baselands.

This responsibility seemed awesome at that time, especially because of the thorny problem of how to produce the funds to undertake the bases’ conversion.

The answer that the previous administration and congressional leaders, such as congressman Jose de Venecia and Senator Leticia Shahani who sponsored the BCDA law, came up with, as you all know, was the disposition of some portions of various military camps situated within Metro Manila. Thus was born this heritage park project.

Surely, my approval of this scheme has tasked to the limit the Department of National Defense (DND), the Bases Conversion and Development Authority (BCDA) and the Public Estates Authority (PEA). Likewise, I had exercised a good deal of presidential suasion on the different government agencies whose consent was necessary for this type of public investment and to make it successful.

I provided clear directions to the Securities and Exchange Commission, the Office of the Government Corporate Counsel, the Land Management Bureau, and the Department of National Defense and all its commands to ensure that this project would push through as scheduled. As you can see, all these efforts have paid off well today.

Our willingness to undergo all these difficulties to actualize this vital project demonstrates that with firm political will and the spirit of teamwork, we can get things done and done in an integrated and expeditious manner.

Let me, therefore, emphasize here that if we can apply as much will and team spirit in all other tasks, we can get well-studied projects going on time, thus accelerating our pace to catch up with our ASEAN neighbors before the century ends.
UNIQUE PRIVATIZATION FEATURES OF THE HERITAGE PARK
This 105-hectare Memorial Park Development Project between the Libingan ng mga Bayani and the American Cemetery has been aptly designed both as a place of reverence for our departed as well as a recreational and leisure area for the living.

This project’s investment aspect is also just as unique. This park combines the high returns expected from a memorial park development with the quick inflow of funds via securitization through the issuance and sale of heritage park investment certificates (HPIC). The HPIC is a financial model that can be replicated as we address the problems of privatizing our other underutilized government assets.

The securitization scheme will provide the bases conversion program with funds upfront in two tranches amounting to a gross of about p6 billion. The first tranche of p3 billion, which is fully subscribed, we are launching today.

What is also significant is the willingness of private and government sectors to innovate and address new products and markets through this scheme. I thank the government agencies involved, particularly the BCDA, which is the issuer of the HPIC, and the PEA which is the project and issue manager, for appointing the Philippine National Bank as lead underwriter and once again boosting our people’s faith in the efficiency of our government agencies.

In this, the defense and military establishments must be commended. They have given way — at a great cost to their prerogatives — to a higher national interest, without the acrimony that oftentimes attend such sacrifices. The AFP’s need for housing for its personnel will be served by this sacrifice.
CLOSING
In closing, i would like to express my gratitude to the financial community that had fully subscribed to this first tranche offering of the heritage park issue. Your support goes beyond helping to make the heritage park a successful enterprise; you have made it possible for us to advance one more giant step to realize our shared vision of “Philippines 2000!!!”.

My highest commendations go to the BCDA under Chairman Victor Lim, PEA under Chairman Wainwright Rivera, the DND under Secretary Renato de Villa and all others involved in this crucial endeavor.

Ngayong Pasko, alalahanin natin na nasa ating pagtutulungan ang kapayapaan at kasaganaan ng ating bansa. Patuloy tayong magtulong-tulong hindi lamang sa panahon ng pasko at ng bagong taon kundi sa lahat ng araw.

Maraming salamat at mabuhay ang Heritage Park!