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PIA Press Release
Sunday, January 15, 2012


Mayor rues BCDA- CJHDEVCO’s latest fall out over John Hay rental payment

by Aileen Refuerzo

BAGUIO CITY, Jan. 15 (PIA) -- Mayor Mauricio Domogan Wednesday admitted that the failed negotiations between the Bases Conversion Development Authority (BCDA) and the Camp John Hay Development Corporation (CJHDevCo) over the payment of lease rental over Camp John Hay will prolong the city’s suffering over the non-collection of its share from the rental.

“The case will drag on and naturally we will suffer the consequences as we cannot collect out share which could have been used to fund developmental projects in our city,” the mayor lamented.

CJHDevCo reportedly sought the rescission of its Restructuring Memorandum of Agreement with BCDA signed in 2008 for BCDA’s alleged failure to deliver contractual obligations and demands, among which the set-up of a one-stop action center, which the developer said hindered them from raising revenues to pay the rental payments.

The mayor however expressed hopes that the two parties can still find ways to settle the issue without resorting to a court battle.

Last year, hope flickered on the issue after the two parties resumed negotiations on the arrears payment where CJHDevCo presented a payment scheme but which was apparently rejected by the BCDA.

BCDA vice president of the BCDA dismissed CJHDevCo’s move to file a formal rescission of the RMOA as an “ill-disguised ploy” to “evade payment” of its mounting obligations but vowed that the developer “cannot go scot-free from paying its P3.024 billion arrears.”

The developer managed to have the MOA on the lease revised and the lease rental payment restructured to lower levels not only once but several times by suing over inconsistent tax laws and other claims.

The exact amount of the city’s share has still to be determined due to the numerous revisions of the terms of the lease agreement between the BCDA and the CJHDevCo over the years.

The original agreement pegged the lease rental at P425 million annually for the first five years starting in 1996 and P150 million annually thereafter.

The city’s share from the rental was supposed to be 25 percent or P106 million for the first five years and P35,500,000 for the succeeding years.

However, the lease agreement was restructured in 2000 and in 2003 resulting to the reduction of the rental figures. (PIA CAR/AR-Baguio City PIO)

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