Camp John Hay to unleash full potenial – Go

The recent decision of the Supreme Court (SC) resolving the legal dispute between the Bases Conversion and Development Authority (BCDA) and its lessee CJH Development Corp. (CJHDevCo) is expected to enable the development of the John Hay Special Economic Zone (SEZ) in Baguio City to its full potential, according to Special Assistant to the President for Investment and Economic Affairs Frederick Go.

Go expressed optimism on the development of John Hay SEZ after the SC upheld the arbitral ruling ordering CJHDevCo to vacate a portion of the property it leased from the BCDA.

He said the “development would enable the government to unleash the full potential of the John Hay Special Economic Zone and spur inclusive economic opportunities for northern Luzon.”

His office has invited firms to consider the John Hay SEZ as an ideal investment hub in the northern region for commerce, eco-tourism and leisure.

Ecozones do not only bring in strategic industries, but also promote growth outside Metro Manila, Go said in a statement sent by the BCDA.

The BCDA welcomed the SC decision, saying that it would allow it to recover the 247-hectare property in John Hay SEZ to be used for the full interest and benefit of the government and of the public.

BCDA is mandated to transform former military bases and properties including Camp John Hay into premier centers of economic growth.

After the transformation of Camp John Hay into the 625-hectare John Hay SEZ, CJHDevCo was awarded the lease and development of a 247-hectare portion of the property.

Under the lease agreement entered by the parties, the BCDA shall remain the owner of the leased property.

Meanwhile, CJH DevCo shall own improvements it will introduce, but will have to transfer the ownership of the improvements to BCDA at the end of the lease agreement.

CJH DevCo was also authorized under the agreement to sublease the leased property to third persons.

Due to disputes concerning the parties’ respective obligations under the lease agreement, CJH DevCo filed a complaint in arbitration with the Philippine Dispute Resolution Center Inc. against BCDA.

With both parties found guilty of breaches of their obligations under the agreement, CJHDevCo was ordered to return to BCDA the leased property, together with all improvements, while the BCDA was directed to refund CJHDevCo of its rent payments.