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.