CJHDevCo replacement to enjoy PEZA-type perks — BCDA

The Bases Conversion and Development Authority (BCDA) announced yesterday that it intends to offer Philippine Economic Zone Authority (PEZA) incentives to the prospective group of investors who would take over the operation of Camp John Hay from the beleaguered Camp John Hay Development Corp. (CJHDevco).

BCDA subsidiary John Hay Management Corp. spokesperson Lyssa Pagano-Calde said PEZA incentives "are far more attractive" than current investor come-ons under the Subic Bay Metropolitan Authority (SBMA) package."

The PEZA package may include tax holidays from four to six years, Pagano-Calde added.

The BCDA earlier said that it is eyeing a new group of investors to operate Camp John Hay following the failure of its current operator, the Fil-Estate-backed CJHDevco to settle some P2.3 billion in arrears.

Pagano-Calde said some P1.2 billion of the total arrears are due and demandable.

The BCDA made the statement to assure Baguio City Congressman Mauricio Domogan that "the government does not intend to operate John Hay."

The BCDA assured Domogan that "the operation of the facility is best left in the hands of the private sector."

The BCDA’s assurance that it is not interested in running CJH is the reason why it is now receiving expressions of interest from private groups for the possible operation of CJH.

BCDA admitted that a government take over of the facility "may have become inevitable" due to an apparent absence of any indication that the Fil-Estate-led group would settle its debt.

The BCDA explained that it cannot just stand idly by and risk the further dissipation of John Hay assets in the wake of the unpaid obligations.

Pagano-Calde said the BCDA "is also seriously studying the possible application of the PEZA incentives to the current locators in the Camp John Hay Special Economic Zone".

She said the adoption of this "more attractive package is subject only to the approval of PEZA and the BCDA board".

It would not require any legislation, she pointed out.

Pagano-Calde added that the government "is looking at all possible means of protecting the interest of CJH locators" amid the failure of the current operator to settle its debt.

The CJH locators have nothing to do with the CJHDevco debt so the government will do its best to protect them, she added.

Among the PEZA incentives for ecozone developers and operators are income tax holiday and incentives under the Build-Operate-Transfer Law (BOT Law) including government support for accessing Official Development Assistance and other sources of financing.

Another is the provision of vital off-site infrastructure facilities. They may also have the option to pay a special five percent gross income tax, in lieu of all national and local taxes.

In addition, foreign investors and immediate family members may be given permanent resident status. They can also employ foreign nationals.

At the same time, they will be given assistance in the promotion of economic zones to local and foreign locator enterprises.

Several solons led by Senators Alfredo Lim and Aquilino Pimentel, and Cavite Congressman Crispin Remulla had also earlier called for a government take over of the CJH facility from the defaulting operator.

Remulla bared that CJHDevco had asked that some P650 million of its CJH rental arrears be condoned during the time of former President Joseph Estrada.

Remulla, then assistant secretary of the Presidential Management Staff, said he thumbed down the plea since it would establish a wrong precedent.

Lim, on the other hand, scored CJHDevco for its ballooning rental arrears.

The government is desperately looking for funds when all the while more than P2 billion of government revenues is just sitting in its coffers, Lim said.

Meanwhile, Sen. Richard Gordon recently led the ground breaking and unveiling of three projects worth P79.7 million by the Poro Point Management Corporation (PPMC) which will jump start the development of the Poro Point Tourism, Recreation and Commercial Complex and boost the economy of Northern Luzon by generating new jobs and investments in the area.

Getting the lion’s share is the P65.5 million Road Network Project.

During the groundbreaking ceremony, PPMC president Atty. Juanito Antonio said that the construction of the 4.2-kilometer concrete pavement and 1.4-kilometer gravel-based internal road would provide a leisurely and unrestrained circulation and access to the development areas within the Poro Point Tourism, Recreation and Commercial Complex.

"The road network will maintain a traffic-free situation and prevent traffic congestion in the area," Antonio said.

Another project, the P11.5 million San Fernando Coral Promenade was unveiled to the public.