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John Hay developer seeks P14-b settlement

[ ] January 16, 2012

The private developer of Camp John Hay reservation in Baguio City seeks P14 billion in its arbitration complaint against state-run Bases Conversion Development Authority over its alleged failure to comply with its obligation in the development of the 246-hectare John Hay Special Economic Zone.

In a filing before the Philippine Dispute Resolution Center in Makati City, the Camp John Hay Development Corp. through its president Ferdinand Santos, cited lapses in their 2008 Restructuring Memorandum of Agreement, including BCDA’s failure to set up the zone’s One-Stop Action Center.

CJHDevco petitioned PDRC to order the rescinding of the original lease agreement between CJHDevco and BCDA and direct the agency to pay them actual damages worth P14.44 billion and the cost of the suit for P15 million.

City Mayor Mauricio Domogan called on the parties to resolve their dispute amicably.

“Going to court just to settle the conflict is not good for both parties and even Baguio City which is a beneficiary of the 50-year agreement,” he told Manila Standard.

“Because of the conflict, the city government has not received it share from the lease rental of the CJH special economic zone.”

In the restructuring pact dated July 1, 2008 the developer agreed to a compromise where it would assume rental obligations for more than P2.69 billion and present dues of P150 million.

In a Jan. 9, 2012 letter to BCDA president Arnel Cassanova, Santos demanded full compliance including the opening of the one-stop facility even as it has suspended rental payment for the period Oct. 2009 to Dec. 2011.

Santos said the P14.44 billion claim included developmental and operation costs and interest expenses, accumulated losses and foregone income because of BCDA’s shortcomings.

Camp John Hay is a former uS military facility acquired for conversion to generate income for the modernization of the armed forces. Ferdinand Fabella and Dexter A. See

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