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After favorable SC ruling, BCDA vows smooth transition in Camp John Hay

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BAGUIO, Philippines – The Bases Conversion and Development Authority (BCDA) said that it will be business as usual at Camp John Hay as the Supreme Court en banc ruled “to deny with finality” the motions for reconsideration by the Camp John Hay Development Corporation and its third-party respondents regarding the 247-hectare property in the John Hay Special Economic Zone. 

“BCDA assures the public that businesses will continue to operate in Camp John Hay. BCDA is closely coordinating with all stakeholders to ensure a smooth transition,” BCDA said in its press statement. 

In a resolution dated October 22, 2024 (but apparently handed to the media only this month), the SC ruled to “DENY WITH FINALITY the said motions for reconsideration as no substantial arguments were presented to warrant the reversal of the questioned decision…No further pleadings or motions will be entertained.” 

This is in relation to SC’s decision last April ordering CJHDevCo to vacate part of the John Hay SEZ leased from the BCDA. 

“The Clerk of Court of the Supreme Court has issued on October 22, 2024 an Entry of Judgment certifying that the Decision dated April 3, 2024, has been filed and recorded with the Judicial Records Office,” BCDA said. 

“The Decision granted BCDA’s Petition for Review on Certioriari and REVERSED AND SET ASIDE the July 30, 2015 Decision of the Court of Appeals. The Supreme Court further ruled that  “(t)he March 27, 2015 Order of Branch 6, Regional Trial Court of Baguio City in Civil Case No. 7561-R, confirming the Final Award dated February 11, 2015, in PDRCI Case No. 60-2012 is REINSTATED. The April 14, 2015 Writ of Execution and the Ex-Officio Sheriff’s Notice to Vacate are likewise REINSTATED.”

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BCDA was created in 1992 to implement the conversion  of former US military bases including CJH. With the conversion of the former American rest-and-recreation center, the SEZ totaling 625 hectares was formed. In 1995, BCDA as lessor entered into a lease agreement with CJH DevCo, Fil-Estate Management Inc., and Penta Capital Investment Corporation, as lessees, for the use, management, and operation of the leased property.

“Under the lease agreement, BCDA shall remain the owner of the Leased Property, while CJH DevCo shall own improvements it will introduce. However, at the end of the lease agreement, CJH DevCo is obligated to transfer the ownership of the improvements to BCDA,” the SC ruling last April said. 

“CJH DevCo was also authorized under the agreement to sublease the Leased Property to third persons. Prompted by disputes as to the parties’ respective obligations under the lease agreement, CJH DevCo filed against BCDA a complaint in arbitration with the Philippine Dispute Resolution Center, Inc. (PDRCI),” it added. 

The PDRCI found both parties guilty of breaches of their obligations and its mutual rescission was warranted. 

“CJH DevCo was specifically ordered to return to BCDA the Leased Property, together with all improvements. BCDA, in turn, must refund to CJH DevCo the rent the latter had already paid, amounting to PHP 1,421,096,052,” SC added. 

Mayor Benjamin Magalong in a press conference Thursday, December 12, said that he is not aware of the SC’s decision to deny the motion for reconsideration but said that he is slated to talk to CJHDevco about the city’s share of the SEZ development and operation.

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