Arbitration court’s ruling on Camp John Hay case seen soon

MANILA, Philippines - The arbitration court is set to hand down its ruling anytime on the P10-billion suit filed by the Camp John Hay Development Corp. (CJHDevco) against the Bases Conversion and Development Authority (BCDA).

BCDA president Arnel Casanova told reporters the case may be resolved by the end of the month. Evidentiary hearings before the Philippine Dispute Resolution Center Inc. were concluded last January. 

Baguio City Mayor Mauricio Domogan earlier said he wished the case be resolved soonest for the development of Camp John Hay to proceed as the impasse is depriving the city of its 25 percent from the Camp John Hay lease rentals paid to the BCDA.

CJHDevco sued the BCDA in the arbitration court for damages amounting to P10 billion in 2012 after the state-run firm repeatedly refused to set up a One Stop Action Center (OSAC) as it has committed after the two parties signed a revised memorandum of agreement (RMOA) in 2008.

The RMOA came after the first arbitration case that was filed by CJHDevco against BCDA in 2005 was resolved.

The BCDA explicitly committed the OSAC in the RMOA to assist CJHDevco in processing licenses and permits for it to make up for lost time in developing the former military rest and recreation camp.

CJHDevco executives said they were rushing the development of Camp John Hay after the Supreme Court declared the area no longer a special economic zone, affecting projects there.

Congress, however, restored the special economic zone status of Camp John Hay.

CJHDevco officials said it has invested over P5 billion in developing Camp John Hay and has remitted over P1.4 billion in lease rentals to the BCDA.

They expressed concern that since they were awarded the project 17 years ago, only 20 percent has materialized allegedly due to various breaches of contract by the BCDA, including the failure to set up the OSAC.

CJHDevco officials said the development project should have been completed in five years at a cost of only P2.5 billion.