BAGUIO CITY — The Baguio City government is hoping the Supreme Court would soon decide on the row between state agency Bases Conversion and Development Authority (BCDA) and private developer Camp John Hay Development Corp. (CJHDevCo) over the John Hay Special Economic Zone (JHSEZ).
Baguio City Mayor Mauricio Domogan said Tuesday it would serve the city best if the High Court would rule soon, as the BCDA could then pursue talks with other developers interested in taking over the unfinished development of the JHSEZ.
Under the lease contract between BCDA and CJHDevCo, the city is entitled to a 25-percent share of the agreed lease amount, which, Domogan said, could have contributed in spurring the desired economic growth of the city.
The local chief executive admitted that there have been numerous talks being done by some parties interested in carrying out the development of the former American military rest and recreation center.
He confirmed having talked with CJHDevCo chairman Robert John Sobrepeña, who intimated to him that he was no longer interested in pursuing the development of the JHSEZ.
Domogan said the city government had already lost at least a billion pesos from its share in the unrealized lease rental of CJHDevCo due to its rift with BCDA over the lease on the 247-hectare JHSEZ.
Earlier, the Philippine Dispute Resolution Center (PDRC) ruled for the mutual restitution of the 50-year lease contract that was entered into by the BCDA and Fil-Estate Penta Capital Consortium for the development of the facility to a world-class tourism center.
It ordered the BCDA to refund to CJHDevCo some PHP1.42 billion in remittances earlier made by the developer to the government in the form of lease rentals and for the CJHDevCo to turnover to the BCDA the leased area in “tenantable” condition, including all improvements the firm had put in there.
The PDRC also ruled that the PHP3.4 billion being claimed by BCDA from the developer as accumulated unpaid rentals is without basis. This part of the decision led to losses on the part of the local government, emanating from its supposed 25-percent share in the agreed lease rentals.
Domogan said the lost income opportunity from the supposed lease rentals on the economic zone could have been used to implement the city’s development programs and projects, as well as to enhance the delivery of basic services to the people in the city’s 128 barangays.
“Talagang nalugi ang city by about a billion pesos (The city lost about a billion pesos),” Domogan lamented.
He also expressed hope the decision would not lead to further financial losses to the local government, and that the court would not order the city to return what it had already partially received in terms of its share.
“We are not at fault, why should we return (it),” Domogan said, stressing the city was not party to the case between BCDA and CJHDevCo.
The BCDA had appealed the arbitral ruling to the Court of Appeals, but the court upheld the PDRC decision.
The case remains with the country’s high court, which the city hopes would issue a ruling soon and revive whatever benefits Baguio could derive as host to the JHSEZ. (Liza Agoot/PNA)
