Rep. Mauricio G. Domogan fully supports the intention of the local government to file the appropriate case against BCDA

 

BAGUIO CITY, Philippines – Mayor Benjamin Magalong announced the filing of a corresponding case against the Bases Conversion and Development Authority (BCDA), in connection with its disregard for the city’s rights under the 19 conditions outlined in Resolution 362-1994.

“We are now preparing a case against BCDA because we have exhausted all administrative remedies and sent four demand letters without receiving any clear indication that they are willing to engage with us,” Magalong said.

Magalong earlier informed the City Council that the City Legal Office is already drafting a formal legal complaint, to address the city’s long-standing grievance to fulfill the agreement under the said resolution.

The 19 conditions under Resolution 362-1994 enacted by the Baguio City Council in 1994 lay down the city’s non-negotiable terms before any development can proceed within the John Hay Special Economic Zone (JHSEZ).

These conditions were formulated to safeguard Baguio’s interests such as environmental protection, respect for the rights of local communities, and ensuring the city’s fair share of the revenues generated from operations within the JHSEZ.

For many years, the most outstanding concerns have centered on Conditions 9, 10, and 14.

Conditions 9 and 10 refer to the city’s mandatory share of the gross income and rental income generated within the John Hay Special Economic Zone. These are the revenues that the city has repeatedly urged the BCDA to remit. The amount owed to the city has now accumulated to P225 million.

Under Condition 9, Baguio City is entitled to 4% of the total revenue generated within the John Hay Special Economic Zone of which 3% is for the city and 1% is for a joint community development fund. This amounts to P56.8 million in unpaid portions.

Under Condition 10, BCDA must remit 25% of its rental income or 30% of its net income from operations in the zone, whichever is higher.

Although BCDA has paid P238.6 million to date, the amount owed is P407.2 million, leaving a remaining P168.6 million. Taken together, these unpaid obligations constitute the P225 million that the city government insists is owed.

According to City Treasurer Alex Cabarrubias, BCDA has not paid since 2023 when the city government first issued a demand letter calling for the payment of the debt.

Meanwhile, Conditionality 14 refers to the long-delayed separation of 13 barangays from the Camp John Hay Reservation. This process continues to cause overlapping regulations, duplicate permit requirements, unclear jurisdiction, and stalled barangay projects for hundreds of residents.

These issues have been repeatedly raised in the Baguio City Council for years but there has been no firm commitment from BCDA as top BCDA and JHMC officials continue to skip important discussions despite repeated requests from the Baguio City Council for their attendance.

Vice Mayor Faustino Olowan and several councilors are also urging the executive department to file a case, citing that the BCDA and JHMC are not showing clear signs of commitment to fully complying with the 19 conditionalities.

Furthermore, since the upgrade of the Camp John Hay Master Development Plan is expected to be completed in two to three months, the Baguio City Council has insisted on reviewing the plan to ensure full compliance with the 19 conditionalities.

Baguio City Representative Mauricio G. Domogan fully supports the intention of the local government to file the appropriate case against the State-owned Bases Conversion and Development Authority (BCDA) to ensure that the city will be able to benefit from the 247-hectare John hay Special Economic Zone (JHSEZ).

However, Domogan suggested that the local government should anchor the case that will be filed on Condition No. 16 that mandates the BCDA to effect the transfer of ownership of the land and its build up and improved structures within the zone from the State corporation to the local government upon the expiration of the lease agreement between the BCDA and its designated developer pursuant to the policy and procedures provided by law.

He claimed that the Supreme Court (SC) already ruled on the termination of the lease agreement between BCDA and the Camp John Hay Development Corporation (CJHDevCo) that is why it is imperative for the city to invoke the said condition in the filing of the case against BCDA.

According to him, BCDA was able to partially comply with the prescribed conditions during the lease period but it has yet to comply with Condition No. 14 that mandates the segregation of the 14 barangays within the Camp John Hay reservation and Condition No. 16 now that the lease agreement is considered to have expired pursuant to the previous SC ruling.

Domogan assured that he will closely work with the city’s legal team to iron out an air tight case that will be filed against the BCDA to compel the same to already turnover the zone to the city.