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Thursday, July 16, 2026

Advanced MoU - it does not work

 H2  2026   011




This post made an advanced MoU gmail. to a proposed partner however the TCT and the proposed game changer  ie a diversion road completion were not clear.  The MoU made a scenario of 55-45 which were very generous enough.  But the other party was not happy because he said our share which would be equitized (the development cost) should not be deducted from the sharing

In the current sharing of say 60:40, the dev cost and ope ex are deducted from our share, of the net gp, the other side gets a lot and we get net lower because op ex and dev cost are deducted from us.


Without deducting the dev cost from  the sharing the calculation should be;


                     Other side land  say                                        P500                           15%


                     Dev cost   2,000 +

                     expertise of the developer   P1,000              3,000.00                        85%


                                                                                          3,500.00

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