THIS corner has to confess going gaga over IBC 13’s flurry of fisticuffs and mixed martial arts action for a weekend’s viewing fare—and that can point up the brewing goodness that may see the beleaguered station totter, nah, get firmly back on its feet.

Saddled with over P1 billion in debts, racking about P80 million in yearly losses, and beset with labor problems, state-run Intercontinental Broadcasting Corp. (IBC 13) has for several decades been looking for investment partners to solve its financial woes. And with such rueful financial state of the broadcast station, IBC has failed to lure investment partners. Not until mid-2010.

On March 24, 2010 IBC and leading developer Primestate Ventures signed the Joint Venture Agreement after more than a year of negotiations and processes leading to approvals by various government agencies. IBC management and the unions were ecstatic that, finally, all of their woes will finally end. Management and unions signed the Memorandum of Agreement setting aside P278 million for the payment of their unpaid benefits.         

Under the development contract, IBC will contribute 3.6 hectares of the Broadcast City to the JV and get P728 million in guaranteed revenues, to be paid as follows: a) P278 million to be paid in cash to IBC employees both active and retired. The amount will be placed in an escrow account with the Bank of Philippine Islands covered by post-dated checks; P450 million to be paid through the construction and delivery of a new six-storey corporate building, two live studios, and a commercial building for IBC in the remaining 5,000-square-meter corner property in Broadcast City.

The 3.6 has. will be the site of a residential development to be constructed by Primestate Ventures. IBC employees will be given preferential treatment in the residential development via special discount rates in the purchase of units and will have additional income opportunities in the form of referral incentives. 

JVA is one of the more widely recognized modes for idle or so-so performing government properties to turn up profits, thus contributing to government coffers. Unlike privatization, a JVA does not involve sale of government properties— assets are placed in the JVA as equity or investment.

The IBC-Primestate Ventures JVA has complied with the NEDA-GPPB Guidelines pursuant to Executive Order  423 or the Guidelines and Procedures for Entering into Joint Venture  Agreements Between Government Private Entities.

Since the JVA does not involve any government guarantee, subsidies, and undertakings, the IBC Board has the power to approve and enter into the said agreement. Further, the JVA went through a rigorous process before it was endorsed by all government agencies concerned prior to its approval.

IBC workers lauded the JVA, saying it will improve the network’s standing in the media industry with the upgrading of its programming and technical capabilities and address the obligations to suppliers and outstanding benefits due them.

The JVA is indeed a welcome development to IBC since the QC Regional Trial Court in early 2010 rejected IBC’s petition to approve a corporate rehabilitation plan.

Moreover, the JVA made IBC more profitable because it almost doubled the value of its real estate assets. Based on government records and independent appraisers, IBC’s 4.1-ha. property is valued at P441 million or P10,000/square meter. However, with the improvements underway and the guaranteed income of P728 million from the JVA, value of their property has increased to almost P20,000/square meter.

Indeed with a brand-new building, state-of-art studios, and a commercial building, not to mention a self-contained residential hub of condominium buildings, the JVA will compliment the privatization efforts of the new administration of IBC since it has made it financially viable to future buyers.

After 24 years since its sequestration, IBC 13 is set to regain lost ground and reclaim its old glory in the broadcast industry.