Manila: The Bureau of Corrections (BuCor) is undertaking a comprehensive review of all land lease contracts in the country’s prisons and penal farms to generate higher revenue.
According to Philippines News Agency, BuCor Director General Gregorio Pio Catapang Jr. has instructed all superintendents of operating prison and penal farms (OPPFs) to submit detailed reports on the prevailing lease rates within their jurisdictions. This initiative aims to determine the true market value of the properties and protect the government from potential revenue losses. Notices have been sent to existing lessees, informing them that their current contracts will terminate by December this year. This notice serves as formal communication regarding potential changes in lease agreements, as new guidelines are set to be issued concerning terms of renewal.
Catapang stated that the measures seek not only to increase revenue but also to establish a more equitable leasing framework that reflects the actual worth of BuCor’s land holdings. He emphasized the need for sustainable funding sources to create a more robust financial structure, highlighting that land lease rates present an opportunity to optimize financial management and secure greater fiscal stability. This is particularly important as BuCor navigates upcoming transitions in its operations, including the planned closure of the New Bilibid Prison in Muntinlupa City by 2028.
Catapang further underscored the importance of evaluating the current land lease rates, which he deemed insufficient for generating adequate funds for the bureau’s revolving fund, known as Fund 284. This fund is crucial for supporting initiatives that enhance the welfare and rehabilitation of persons deprived of liberty (PDLs).
From January to September this year, BuCor earned PHP188.6 million from 485 business enterprises operating in seven OPPFs. A significant portion of this revenue came from the lease agreement between BuCor and the Tagum Agricultural Development Co. (Tadeco). Tadeco leases over 5,000 hectares of land within the Davao Prison and Penal Farm for banana cultivation, with BuCor receiving a guaranteed production share of PHP17 million to PHP20 million a month.
