Capitol to pay P57M to terminate Negros First Cyber Center JVA

By Dolly Yasa

 

BACOLOD City – Provincial Administrator Rayfrando Diaz said the provincial government agreed to pay P57 million to Negros Property Management and Development Corporation (NPMDC) as compensation for terminating their Joint Venture Agreement (JVA)

Diaz confirmed that the provincial government of Negros Occidental is formulating the mutual termination agreement with NPMDC that has been managing the Negros First Cyber Centre for several years.

Diaz said they got a call from a NPMDC representative who said they have cash on hand that can cover the amount being asked as compensation so that the mutual termination of agreement can take place.

He also said that the provincial government took the initiative of ending the JVA with NPMDC, for being “grossly disadvantageous” to the economic interest of Capitol after more than four years since it was implemented.

Under the JVA, the minimum annual remittances of NPMDC is 20 percent of the gross revenues, but not less than P15 million, which, according to the provincial government, is not enough to pay for its loan amortizations to the Land Bank of the Philippines.

“The mutual termination agreement being drafted by the Provincial Legal Office will be submitted to the NPMDC, and if it agrees with the terms and conditions, we will endorse it to the Sangguniang Panlalawigan for approval. By March, hopefully, the province will be in full control of its assets,” he said.

Earlier, Negros Occidental Governor Eugenio Jose Lacson said the provincial government can earn more than what the NPMDC has been paying it annually.

The Cyber Center houses BPO firms, among others.