BY GILBERT P. BAYORAN
The provincial government of Negros Occidental is formulating the mutual termination agreement with the Negros Property Management and Development Corporation (NPMDC) that has been managing the Negros First Cyber Centre for several years, through a Joint Venture Agreement.
Provincial Administrator Rayfrando Diaz said yesterday that the provincial government agreed to pay the NPMDC P57 million as compensation for terminating the JVA.
Diaz said they got a call from a representative of the NPMDC Friday, and said they have cash on hand sufficient to cover the amount being asked as compensation, so the mutual termination of agreement can take place.
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, that, according to the provincial government, is not enough to pay for its loan amortizations with the Land Bank of the Philippines.
Diaz said 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, will endorse it to the Sangguniang Panlalawigan for approval.
“By March, hopefully, the province will be in full control of its assets,” he added. Governor Eugenio Jose Lacson earlier said the provincial government will be able to earn far more than what the NPMDC has been paying it annually.*