THERE will be no renegotiation of contract for the development of the former US military recreation base Camp John Hay.
This was affirmed by the Bases Conversion and Development Authority in a press statement as the lease agreement for the 247-hectare John Hay Special Economic Zone (JHSEZ), which the state owned agency entered into with the Camp John Hay Development Corporation (CJHDevCo) in 1996.
According to the new management, BCDA is currently conducting an exhaustive review of the JHSEZ to ensure that all actions moving forward will protect the government’s interests and ensure the long term development of the area.
BCDA also denied that any decision to renegotiate the lease contract was ever made.
The new BCDA leadership also stressed that it remains committed to working with local government of Baguio and continues to establish a transparent dialogue with LGUs to ensure their active participation in the development of these areas for the benefit of local communities.
Earlier, Baguio City Mayor Mauricio Domogan proposed a renegotiation of the mutually restituted contract between the BCDA and the CJHDevCo to maximize the development of the former military base.
Renegotiation, according to the mayor which he said back in June this year would contribute in increasing employment opportunities and sources of livelihood for the local residents once the proposed development of the former American rest and recreation center will be realized as planned over two decades ago.
Domogan added only 23 percent of the proposed development of the JHSEZ was implemented by the developer.
According to an earlier report, concerned government agencies have failed to deliver the areas that should be developed and the pertinent permits related to the proposed development of the American military base into a world-class tourism facility.
The segregation of nearby barangays from Camp John Hay, which was included in the 19 conditionalities of the city has also been overdue.
Domogan is proposing the developer should directly remit to the BCDA the 75 percent of the annual lease rental of the economic zone while the 25 percent share of the city government should be directly remitted by the developer to the coffers of the local government.
Under the present set up, the developer pays to the BCDA the annual lease rental of the special economic zone in full and in turn, the BCDA requires the city government to submit a list of priority projects that will be funded by its 25 percent share.