By IRMA ISIP

Trade secretary Peter B, Favila said he plans to consolidate and relocate all the offices of his department in Roxas boulevard to save on rental costs.

Favila said he DTI shells out P200 million per year in rental costs.

He said an ideal spot is the site next to the World Trade Center.

The World Trade Center is an exhibition and trade hall leased to a group of businessmen, including the Philippine Exporters Confederation Inc.

Favila said the plan is to get a private sector contractor to build the headquarters. DTI would just amortize the payments from the savings it would generate, or borrow to finance the building.

"It’s a lease purchase for the building and all the annual rentals would service the loan. The rental fees we are paying could be used to optimize the arrangement (payment). But we would prefer that private sector build for DTI," Favila said.

Favila said he intends to sell the buildings the National Development Co. owns in Salcedo Village as well as that of the Philippine Economic Zone Authority HQ on Roxas boulevard.

The NDC owns the building where the Board of Investments is, and where Favila holds office.

DTI offices are spread in more than 10 locations in Metro Manila, mostly in Makati.

DTI units include the Small Business Guaranty and Finance Corp., Bureau of Import Services and the Bureau of Small and Medium Enterprise Development, the Center for International Exposition and Mission, PDDC, Construction Industry Association of the Philippines, Philippine Retirement Authority and the Intellectual Property Office of the Philippines.

The DTI national capital region has been decentralized at Highway 54 in Mandaluyong, Park & Ride in Manila and in Kalookan but has offices in Trafalgar building in Makati ,

Favila said the area were the World Trade Center is located is under a 50-year lease contract from the government to Philexport. The building was constructed as a revenue-generating venture by the group.

Philexport president Sergio Ortiz Luis Jr. said the group is willing to accommodate the DTI headquarters. The DTI needs to find partner or financier to construct the building, which can be done within the year, he said.

The Center is 36 percent owned by the NDC, an attached arm of DTI. Another 36 percent is owned by Philexport along with Lippo Group of Indonesia.

Ortiz explained that the group has "survived lean times" since the World Trade was not built for profit but for service.

As a missionary venture, he said, the group of investors spent P250 million as initial investment,

The 50-year lease started in 1994.

Ortiz said in the long term, World Trade would have to be expanded to include that new building where DTI and other offices can be located and a hotel.

Commenting on reports that traders find the rates of World Trade rather pricey, Ortiz said "this is only because the investors are trying to recover the capital. this was a missionary project."