CJHDevCo had originally entered into a lease agreement with the Bases Conversion and Development Authority (BCDA) on Oct. 19, 1996 to develop almost 247 hectares of Camp John Hay into a tourism complex, multiple-use watershed and human resource development center for a term of 25 years, renewable for another 25 years, for a total of 50 years.
The lease agreement provided for a fixed annual rental of P425 million or five percent of gross revenues, whichever is higher, for the first five years of the lease agreement.
"CHJDevCo has basically complied with the original lease agreement. It made an advance payment of P250 million in Oct. 19,1996 and the first annual lease rental of P425 million was paid in Oct. 18,1997," CJHDevCo chairman Robert John L. Sobrepeña said yesterday.
Another P50 million in cash, Sobrepeña said, and P75 million in golf shares and properties were paid by CJHDevCo upon execution of the July 14, 2000 MOA.
"CJHDevCo has paid a total of P800 million by way of lease rentals to the BCDA to date," he said.
Sobrepeña also said that CJHDevCo has already complied with its commitment to invest P2.2 billion in Camp John Hay.
CHJDevCo has been unable to complete the development of Camp John Hay as originally scheduled due to a number of reasons.
These include the delay in putting under CJHDevCo’s effective control and possession portions of the leased area under the control and possession of other entities. Delay in the issuance of the Environmental Clearance Certificate (ECC) as prescribed by the Department of Environment and Natural resources was also cited as one of the reasons.
The firm also cited the delay in the issuance of the implementing rules and regulations of the MOA and the Customs Administrative Order by government agencies.
"CJHDevCo is trying to go ahead with its development plans under a revised timetable. It is not reneging on its financial commitments," Sobrepeña said.