The 25-year lease of the 65,253 square meter area (known as Lot 15) was undertaken by PEZA to accommodate both existing and prospective locators.
The agreement was forged between PEZA Director General Lilia de Lima and John Hay Management Corp. (JHMC) vice president and chief operating officer Lyssa Pagano-Calde, who represented BCDA president and chief executive officer Narciso Abaya, during the ceremonial signing held Dec. 22 at the PEZA building in Pasay City.
Other signatories of the MOA were BCDA executive vice president Isaac Puno III, PEZA deputy director general for finance and administration Justo Porfirio Yusingco, and BCEZ OIC-Zone administrator Teres Panga.
The agreement was entered into to assure the smooth facilitation of the planning, development and utilization of the leased area with due regard to the interest and/or needs of PEZA locators both new and existing within the PEZA-BCEZ.
As lot owner, BCDA would, in a period of five years from the start of the agreement or upon its timely need, deliver to PEZA the basic infrastructure for its land development which cost should not exceed P28 million.
Construction work would cover the following: a) perimeter fence; b) downgrading of road leading to Kadaclan Village; c) interior roads; d) reinforced pipe culvert drainage; e) sewer lines leading to BCEZ sewerage treatment plant; f) earthworks; g) retaining wall; and, h) main gate and guard outpost.
PEZA, on the other hand, has to provide at its own expense other infrastructure requirements which would ensure that the area is ready for occupancy.
The term of the lease by BCDA to PEZA of the expansion area would be for 25 years with the option to renew for another 25 years.
On the same date, JHMC signed a registration agreement with PEZA, following the release of Presidential Proclamation 1191 last Dec. 11, 2006 which created and designated the 301.86-hectare John Hay Special Economic Zone as a Special Tourism Economic Zone at the City of Baguio.