House forms body to resolve BCDA-Camp John Hay dispute

MANILA, Philippines - The House special committee on bases conversion formed a body that would resolve out of court the dispute between the Bases Conversion Development Authority (BCDA) and the Camp John Hay Development Corp. (CJHDevco) over unpaid rentals and breach of contract.

The panel, chaired by Kalinga Rep. Manuel Agyao, formed a technical working group (TWG) composed of seven lawmakers to help resolve the P2.9-billion rental dispute between the two state firms.

The move meant that Congress blocked the BCDA from pushing its proposal to take over Camp John Hay, and saved 25 projects in the former US recreational facility in Baguio City from being stopped.

The creation of the TWG came after the hearing of the special committee on Thursday where CJHDevco, BCDA and representatives of the Baguio City Council aired their respective positions.

Baguio City Mayor Mauricio Domogan and the lawmakers called on both CJHDevco and BCDA to exert extra effort to amicably settle their dispute based on existing contracts.

The Baguio City Council also called on the disputing parties to evaluate their respective obligations to each other so that the financial obligation can be finally determined to allow the city government to collect its rightful share of such obligation.

The BCDA presented to the special committee the alleged non-payment of some P2.9 billion in unpaid rentals. CJHDevco countered the company has been current in its rental obligations, having paid already P1.4 billion in rentals, considering the history of breaches by BCDA on its warranties during the 16-year life of the lease contract over Camp John Hay.

CJHDevco officials highlighted to the congressional panel breaches of BCDA arising from delays in the delivery of the leased premises to CJHDevco; delays in securing environmental compliance certificates over the projects; the withdrawal of tax and fiscal incentives over the John Hay Special Economic Zone over a five-year period and, most recently, the failure of BCDA to set up the One-Stop Action Center (OSAC) which BCDA guaranteed to issue local and national permits for CJHDevco’s projects within 30 days from application.

Baguio City Rep. Bernardo Vergara moved for the adoption of the resolution to form the TWG which shall assist the BCDA and CJHDevco sort their respective issues out of court, as litigation will merely prolong the dispute to the disadvantage of Baguio City, which is entitled to collect 25 percent of the rental obligation.

Vergara was appointed chairman of TWG with Benguet Rep. Ronald Cosalan as vice chairman. 

Other members of the group include Reps. Hermilando Mandanas (Batangas), David Kho (Senior Citizens party-list), Jeci Lapus (Tarlac), Jose Ping-ay (COOP-Natcco party-list), and Teodoro Baguilat Jr. (Ifugao).

CJHDevco chief operating officer Alfredo Yniguez thanked the House and welcomed the opportunity to ask for the help and solicit the support of Congress in saving the project.

“We have bent backwards... we have acted in good faith in our obligations because we believe in the project and want to make it work... we would not come this far and hang on this long if did not believe in the project... we need to find a ‘win-win’ solution to this impasse which will primarily benefit the City of Baguio,” Yniguez said.

BCDA claimed CJHDevco had not been paying lease payments when the corporation has already paid BCDA over P1.4 billion in rentals since it won the bid in 1996, he said.

“The claim of (BCDA) that CJHDevCo does not want to pay rent doesn’t make sense. What developer would not want to operate? If we can’t get permits, we cannot develop; if we cannot develop, we cannot generate revenues; if we can’t generate the revenues, how can we have the means to pay the rentals?” he asked.