John Hay developer wins arbitration case vs BCDA

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) has been ordered to pay P1.5 billion in rental fees to Camp John Hay Development Corp.(CJHDevco).

In a decision released on Thursday, the Philippine Dispute Resolution Center Inc. (PDRCI) dismissed the claim of the BCDA that CJHDevco owes the agency P3.3 billion in unpaid rentals.

In its complaint, CJHDevco sought the confirmation of the validity of its Jan. 9, 2012 decision to rescind its 2008 Restructuring Memorandum of Agreement (RMOA), citing BCDA’s alleged “failures and breaches.”

It also called for the amendment of certain provisions of the lease agreement.

The arbitration tribunal said BCDA should come up with a mechanism to facilitate CJHDevco’s development of the John Hay Special Economic Zone, including the setting up of a One-Stop Action Center to meet its financial obligations as provided under the RMOA.

In a letter to BCDA president Arnel Casanova on Jan. 9, 2012, CJHDevco demanded that the agency comply with its obligations under the agreement.

 The ruling also ordered the return to BCDA of undeveloped areas at Camp John Hay. 

CJHDevco lawyer Gilbert Raymund Reyes, however, said a big portion of the underdeveloped areas are covered by a log ban as stated in the memorandum issued by John Hay Management Corp.