[ Manila Bulletin Online ] March 19, 2008
The Office of the Government Corporate Counsel (OGCC) headed by Alberto C. Agra, is reviewing the new lease agreement drafted by the Bases Conversion Development Authority (BCDA), covering the 246-hectare Camp John Hay in Baguio City.
Aileen Zosa, BCDA’s vice president for business development, said the state-owned firm may have to finalize the finer points to ensure that the interests of the government are protected. She added that the draft revised lease agreement, according to the OGCC, is legal.
The new lease agreement which BCDA will sign with Camp John Hay Development Co. (CJHDevCo) includes the restructuring of outstanding payables of about P2 billion over the remaining life of the 50-year contract, or the next 35 years.
According to Zosa, the most crucial provision in the new lease agreement is the restructuring of CJHDevCo’s arrears, which could be easily resolved with the entry of a new locator within the former military camp.
CJHDevCo, a Sobrepeña-controlled company, is banking on a prospective new locator to pay almost half of its P150-million yearly lease payments to BCDA. Another clause also provides CJHDevCo a 60-day grace period for any breach in the payment schedule.
BCDA president Narciso Abaya earlier said that the new "reputable" locator has agreed to pay its P75-million lease directly to the government, ensuring that nearly half of the CJHDevCo’s yearly payments starting this year are paid promptly.
"We have no choice but to agree to the restructuring since we also have to look at CJHDevCo’s capacity to pay. The clincher is the new locator, who would take care of almost half of the yearly payments," Abaya has said during an earlier briefing.
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