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Misor, A Brown joint venture finally sealed

THE joint venture between the Misamis Oriental provincial government and A Brown Co., Inc. was finally sealed January 23 with the signing of a joint venture agreement at the Misamis Oriental provincial capitol grounds.

With this particular one using the public-private partnership (PPP) model, a joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks and shared governance.

Gov. Peter Unabia said this means that the Capitol land will remain the property of the provincial government.

A Brown Co., Inc. president Robertino Pizarro himself said that only 40 percent of the 4,024 square meters of the compound will be erected with edifices and the rest will remain open spaces.

“Nalipay ko sa proposal sa A Brown kay dili nila tandogon ang mga century-old trees sa ilang development. They will work around nature in their business model,” Unabia said.

The PPP model involves private capital financing government projects up-front and then drawing revenues for profit over the course of the PPP contract.

Sangguniang Panlalawigan member Gerardo Sabal III said the contract is 35 years long renewable for another 25 years with 12 percent sharing in gross profits.

Pizarro said the project consists of a high-rise multi-purpose building, commercial and office buildings, a dormitory, and a public park.

With the project’s cost pegged at P2.5 billion, groundbreaking and construction of the first phase will begin on the last quarter of this year.

Unabia assured Capitol workers and the transacting public that they won’t be disturbed with the ongoing construction of the new edifices.

Both provincial administrator John Ladaga and A Brown Co., Inc. chief lawyer Antonio Soriano said the project underwent intense legal and bureaucratic scrutiny before the signing, including authorization from the Sangguniang Panlalawigan, Swiss challenge notice (which there was no one else interested) and a go-ahead from the Commission on Audit. MISOR PIO SCREENGRAB

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