Modes of Privatization for Asset Privatization Trust

Authorized to conserve and rehabilitate assets to maintain value or enable sale.
Can oversee management and operation of corporations or businesses constituting the assets.
Empowered to enter into service agreements as necessary.
Granted wide latitude and autonomy in accounting, auditing, procurement, contracting, asset management, disposition, and personnel matters.

After eight years, some assets remain difficult to dispose due to physical condition, technical obsolescence, legal impediments, or poor business prospects.

Alternative modes are allowed to enhance or maximize recovery from APT assets without impeding speedy disposition.
Applicable particularly where assets are marketable but face shutdown or mothball costs similar to operational costs, or where preservation of factor inputs (technical skills, contractual relations, franchises) is necessary.

Joint Venture: Combining APT assets with another entity to operate a business for mutual benefit, followed by privatization or referral for implementation per Proclamation No. 50.
B-O-T (Build-Operate-Transfer) Schemes: Finding proponents to undertake infrastructure/development projects using the APT asset under RA 6957 and referring projects for government implementation.
Management Contract: A corporation manages or operates substantially all of the APT-held business, including service contracts or operating agreements.
Lease-Purchase: Lessee has the option to purchase the asset under set price and terms, applicable throughout the lease.
Securitization: Conversion of asset form (e.g., physical to equities or certificates of participation), subject to RA 7886.

The exercise of these privatization modes must comply with pertinent laws and regulations.
Upon expiration of APT's term, contracts and obligations arising from these modes will be managed by a special committee established by the President under RA 7886.