Government takes over leased Camp John Hay area

Metro Manila, Philippines — The government has fully taken control of Camp John Hay and other facilities in Baguio City in line with a recent Supreme Court ruling regarding the leased portion of the special economic zone.

The high court ordered the lessee and private developer, CJH Development Corporation (CJH DevCo), to turn over 247 hectares to the government through the Bases Conversion and Development Authority (BCDA), which owns and administers former US military reservations.

The leased area includes The Manor, The Forest Lodge, Camp John Hay Golf Course, the CAP Convention Center, Commander’s Cottage, open spaces, and other areas.

“This victory is a win for the Filipino people as it paves the path for exciting investments and projects that will drive socioeconomic opportunities and protect the interests of all,” said BCDA President and Chief Executive Officer Joshua M. Bingcang in a statement.

“As we open new doors of opportunity, more businesses may reinvest their capital in Camp John Hay and build upon the workforce, all while ensuring that the environmental and cultural integrity of the area are preserved and protected,” he added.

The BCDA assured the public that businesses will continue to operate in Camp John Hay and encouraged all stakeholders to reach out and work together to ensure a smooth transition toward a better Camp John Hay.

In a report to the government-run Philippine News Agency, Col. Ruel Tagel, director of the Baguio City Police Office, said police personnel were deployed during the turnover on Monday, Jan. 6.

“The notice was orderly, and there was no untoward incident during the implementation of the court’s order,” Tagel told PNA.

In an April 2024 statement, the high court said following the transformation of Camp John Hay into the 625-hectare John Hay SEZ, the lease and development of a 247-hectare portion (Leased Property) was awarded to CJH DevCo.

BCDA then entered into a lease agreement with CJH DevCo, Fil-Estate Management, Inc., and Penta Capital Investment Corporation for the use, management, and operation of the leased portion.

Under the deal, BCDA shall remain the owner of the leased area, while CJH DevCo shall own improvements it will introduce. However, at the end of the lease agreement, CJH DevCo was obligated to transfer the ownership of the improvements to BCDA.

CJH DevCo was also authorized under the agreement to sublease the area to third persons.

Prompted by disputes on obligations, CJH DevCo filed against BCDA a complaint in arbitration with the Philippine Dispute Resolution Center, Inc.

The arbitral tribunal found that both parties were guilty of breaches of their obligations under the agreement. It ordered the lessee to return the leased area with all improvements, while BCDA must refund to CJH DevCo the rent it paid worth P1.42 billion.

The issue went into litigation at the regional trial court, was elevated to the Court of Appeals and eventually at the Supreme Court.