An
arbitration committee has ordered Camp John Hay Development Corporation
(CJHDevCo), a former US facility, to vacate Camp John Hay in Baguio City. The
committee also ordered CJHDevCo to return the 690-hectare property to the Bases
Conversion and Development Authority (BCDA), a government agency tasked to
develop the camp.
A bit of history
Camp
John Hay was originally developed as a rest and recreation facility for
employees of the US military and Department of Defense. It was turned over to
the Philippine government on July 1, 1991, which was initially administered by
the Philippine Tourism Authority (PTA).
Ever
since, Camp John Hay has caused several conflicts in Baguio City.
On
December 7, 1941, the Japanese Imperial Army warplanes were drawn to the camp.
After Japan attacked Pearl Harbor, they stationed at Camp John Hay, igniting
the World War II. It was bombed by American forces who tried to drive the
Japanese military out of the camp.
In
2011, another war broke out in Baguio because of a dispute between the Camp
John Hay developer and the government administrator.
Arbitration results
A
decision dated February 11, 2015 from the arbitration committee, made up of Mario
E. Valderrama, Teodoro Kalawa IV and Rogelio C. Nicandro, called an orderly
transition of Camp John Hay, the country’s prime resort development.
BCDA
President and Chief Executive Officer Arnel Paciano D. Casanova said, “We see
this as a victory for [the] government. Finally it will be returned and it can
now be developed for the benefit of the public” on February 13.
However,
the government announced that they have no plans to close down Camp John Hay or
the businesses insider the establishment. This announcement was made to pacify investors
who expressed concerns “over the possibility of having their businesses
disrupted… especially going into the peak season” due to the ongoing conflict
between BCDA and CJHDevCo.
John
Hay Management Corporation vice president and chief operating officer Michelle
Regala-Niebres was quoted saying, “If there will be any disruption, it will
definitely not come from us… in fact, we have been talking to Beneco and other
utility service providers to ensure that there will be no disruption.”
Although
a ruling was already made, CJHDevCo chairman Robert John Sobrepena said the
BCDA must first pay CJHDevCo Php1.42 billion in rentals paid over a decade
before the government could take over the camp. The original agreement between
John Hay developers and the state-run firm was only for a 25-year lease, but it
had sold 50-year leases to its investors. T
However,
BCDA claimed that the CJHDevCo has not paid them its lease rentals for quite
some time, making their arrears balloon to over Php3.4 billion, 25% of that
amount should have paid to the City of Baguio.
CJHDevCo’s statement
Chairman
Sobrepena said that it is not true that CJHDevCo owe over Php3 billion to BCDA.
Thus, they are happy with PRDCI’s decision to direct BCDA into paying the John
Hay developers Php1.42 billion in damages instead.
The
chairman and the rest of CJHDevCo expressed their concern about the trees in
John Hay, which they have taken care of for so long now. Luckily, the arbitral
panel granted their wish for a rescission for damages. Still, they are hoping
that the over 400,000 trees in the camp will be preserved and developmental
footprints reduced.
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