BCDA terminates John Hay lease contract; transition set

By Leilani Barlongay-Macasaet and Roy Victor R. Rosales

BAGUIO CITY -- The Bases Conversion and Development Authority is preparing for the eventual return of Camp John Hay into government hands and has reached out to investors to ensure a smooth transition.

The BCDA terminated the lease of CJH Development Corporation (CJHDevCo) over the 247 hectare Camp John Hay Economic Zone in May 2012 for its failure to perform its obligations and for defaulting in its lease payments even after three restructurings.

BCDA and CJHDevCo are now under arbitration. BCDA is the government agency mandated to develop John Hay.

“Ultimately, control of John Hay will revert back to government. It is best to prepare for this eventuality by working with investors to ensure that it will be business as usual inside John Hay. We do not want any disruption for the businesses inside,” BCDA president and chief executive officer Arnel P. Casanova said.

The BCDA had been unable to reach out to investors in the past because of a preliminary injunction sought by CJHDevCo. The injunction was lifted when the Court of Appeals issued a decision on September 30, 2014 declaring the injunction void.

“The priority is to ensure the continuity of business to preserve jobs and protect investments. We making the necessary preparations to ensure a smooth transition,” Casanova said.

The CA decision said:"Petitioner [BCDA] asserts that CJH DevCo has not established a clear right and irreparable injury for the grant of preliminary injunction. Petitioner asserts that under the agreement, it has the right to enforce the same considering that CJHDevCo has been in breach of their agreement and since BCDA is a government entity, it is the public that suffer for the failure of CJHDevCo to fulfill its obligations. We agree with petitioner [BCDA]."

Casanova said the BCDA is fully committed to the development of Camp John Hay, adding that its priority now is to ensure the continuity of business, the protection of investors and the protection of jobs inside John Hay.