"Through working in close cooperation with the Bases Conversion Development Authority (BCDA) we are well on track in our mission to convert Camp John Hay into the sort of facility that would attract interest and business from both home and abroad," said Cabrieto.
Among such world-class facilities are the 18-hole Jack Nicklaus designed golf course together with the clubhouse, the 189-room Manor Hotel and the newly completed Trade and Convention Center.
Cabrieto said "the Manor Hotel which was completed at a cost of P513 million is enjoying high occupancy rates. And there is a great demand for the log and forest cabins that are part of the CJH residential complex accommodation that is now available to visitors."
"The CJHDevCo has so far put in P2.5 billion towards the completion of the components that are already on line. It has earmarked another P1.8 billion towards the on-going development of the 287-unit Camp John Hay Suites, a Commercial and Entertainment Center and a Sports Complex, all of which are scheduled to be fully operational within the next two years," he added.
Taking into consideration the location of CJH, CJHDevCo has also put in place an extensive eco-tourism project involving camping grounds and a nature trail. Also proving to be a major attraction is the Butterfly Sanctuary that is fast taking shape.
Cabrieto said "the P4.3 billion that is being committed to this project by CJHDevCo will exceed the investment requirements stipulated in the lease agreement that we entered into with the BCDA."
CJHDevCo entered into a lease agreement with the BCDA in October 1996 to transform the former US military camp into a world-class tourism complex. The company made a downpayment of P250 million on signing the agreement and paid a further P245 million in 1997 as annual rental.
"After the Asian financial crisis of the late 1990’s that hit the real estate sector, which is our core business, very badly, CJHDevCo restructured its lease payments and paid another P50 million in each and P70 million in golf shares and properties to the BCDA," explained Cabrieto.
Cabrieto pointed out that Malacañang has instructed the BCDA to quickly resolve the pending issue of restructured rental payments between it and the CJHDevCo.
This instruction was given after the Palace received strong representation from local government officials in Baguio City since any delay in completion caused by unnecessary bureaucratic red tape or political meddling will deprive the city of much needed revenue.
Cabrieto also added that an early resolution of this matter will benefit the government and also give tourism a major boost. In addition, he said this will send a positive signal to foreign and local investors that the government adheres to the policy of privatization.