Agreement between Capitol and the Negros First CyberCentre under review

Posted by watchmen
October 22, 2019
Posted in TOP STORIES

By Dominique Gabriel G. Bañaga

After the Negros First CyberCentre was found to not be self-sustaining, the Negros Occidental provincial government is currently revewing a joint venture agreement with the facility’s management. The agreement was drawn up during the previous administration of former Governor Alfredo Marañon, Jr.
“We are now reviewing the status of the CyberCentre,” said Negros Occidental provincial administrator, Atty. Rayfrando Diaz. “Either we go on with the third party that manages the building or rectify the contract.”
“For the past years, the provincial government is earning little from the CyberCentre,” he added. “[It] cannot even shoulder its amortization.”
The provincial official revealed, income from the CyberCentre went from P1.7 million in 2016 to P9 million in 2018. This year, the facility is expected to earn P14 million. However, the provincial government incurred development costs of P600 million through a loan borrowed by the prior administration.
The CyberCentre is currently managed by a Manila-based group led by Donald Amparado, who served as corporate secretary.
Under the agreement, the provincial government is allowed some shares from the facility’s income.
Meanwhile, Diaz also revealed, under the agreement, the third party will look for potential investors to conduct a feasibility study for a high-rise residential building within the two additional hectares covering the Paglaum Sports Complex.
“The provincial government entered into a usufruct agreement with the third party because [Business Process Outsourcing firms] are discouraged [from] dealing with the government because of the slow processing of papers, contracts, and some other requirements,” the provincial official explained.
A usufruct agreement permits an outside party to use a piece of property for a period of time./DGB, WDJ

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