Capitol, DOE to strike deal for land use

Local

THE Cebu Provincial Government is set to enter a memorandum of agreement (MOA) with the Department of Energy (DOE) for the use of a province-owned lot in Barangay Lahug, Cebu City.

This after the provincial board has approved the resolution allowing Gov. Pamela Baricuatro to sign a MOA with DOE and LLBP Leasing and Finance Corporation (LLFC).

DOE is planning to build its own permanent government-owned office building for its Visayas Field Office after the Commission on Audit (COA) flagged the continuing rental expenses of DOE-7 for office space on lease from a private entity.

Accoding to state auditors, the continued lease is "uneconomical to the government".

COA advised the DOE to find a lot where the agency can construct its own building to spare the government from spending on lease.

This prompted the DOE-7 to request from Cebu Province for a property where it can build its permanent office.

The Capitol with two parcels of land identified as Lot 1060 and 1061 located in Sudlon, Lahug, Cebu City, has agreed for the DOE to use the property under usufruct.

According to the resolution authored by Board Member Stanley Caminero, the DOE chose to implement the usufruct through a Build-Lease-Transfer arrangement with LLFC, which will fund and build at least five-storey building on the Capitol's property and lease the DOE-designated portions to the agency for a fixed period.

"As part of the consideration for the grant of usufruct, the parties have agreed on the allocation and use of the various portions of the building,” read part of the resolution approved during the May 25 regular session.(MyTVCebu)