Lacson awaits legal advice on Cyber Centre joint venture agreement

GOVERNOR Eugenio Jose Lacson revealed Monday, October 28, 2019 that he is waiting for the opinion of the Provincial Legal Office relative to the Joint Venture Agreement of the Provincial Government with a private entity for the management of the Negros First Cyber Centre.

Lacson said since it started its operation under the joint venture agreement, Cyber Centre had not been self-sustaining.

"It has never paid for the amortization of the loan acquired by the province to fund for its construction," Lacson said.

He revealed that the amortization for the loan is pegged at P36 million.

"We'll see if legally we can negotiate that. Our legal minds maybe can advise me on that. We'll see if we can rescind the joint venture contract and operate on our own.

Joint venture was supposed to ease the burden of the provincial government but unfortunately the income is not enough to pay for the amortization," Lacson said.

Earlier, Provincial Administrator lawyer Rayfrando Diaz said they are reviewing the status of the Cyber Centre. Either they go on with the third party that manages the building or rectify the contract.

"For the past years, the Provincial Government is earning a little from the Cyber Centre that cannot even shoulder for its amortization," Diaz said.

He revealed that in 2016 the income of the Centre was only at pegged P1.7 million; P9 million in 2018 and this year the expected income is pegged at P14 million.

The Provincial Government infused a development cost of P600 million from a loan acquired under the previous administration.

It was learned that the Cyber Centre is now managed by a Manila-based group led by Donald Amparado who is the corporate secretary.

Under the joint venture and usufruct agreement, the Provincial Government takes only some shares from the income of the Cyber Centre.

In the previous administration, the Provincial Government has only two representatives in the board with the governor as the vice chair and the other representative as member of the board while the third party has three board seats, Diaz further revealed.

He also revealed that under such agreement, the third party will look for potential investors to conduct a feasibility study for a high rise residential building for two more hectares covering the Paglaum Sports Complex.

The Provincial Government has entered into a usufruct agreement with the third party because the BPOs get discouraged in dealing with the government because of slow processing of papers, contracts and some other requirements, Diaz said.

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