BAGUIO CITY—Mayor Mauricio Domogan said the determination of the new leadership of the Bases Conversion and Development Authority (BCDA) to realize the 247-hectare John Hay Special Economic Zone (JHSEZ) by renegotiating the 50-year development contract will benefit the local government and the people of the city.
Domogan welcomed the decision of the new BCDA board to pursue the development of the declared special economic zone, saying this will create more employment opportunities for qualified local residents and increase the income of the city, among other direct and indirect benefits.
From ecotourist spot to ecozone
“In 1992, Republic Act 7227 was enacted conveying stewardship of Camp John Hay to the BCDA to facilitate its conversion into the country’s premier eco-tourist destination,” the BCDA website relates. "Through Presidential Proclamation 420 in 1994, 301.86 hectares of the 695-hectare Camp was designated as the JHSEZ.”
“Today,” the website says, “the former military camp is a premiere eco-tourism haven with its panoramic vistas and crisp mountain air that show the classic charm of Baguio City. Among much-loved places in the Camp are the world-class Manor Hotel, the Camp John Hay Historical Core, the Bell House Museum and Bell Amphitheater; and the Honeymoon Cottage.”
The BCDA says the ecozone is “nestled 5,000 feet above sea level in Northern Luzon” and “is accessible from Manila via an hour-long airplane flight to the Loakan Airport or a four-hour drive via the NLEZ and SCTEX. It is a gateway to the scenic beaches of La Union, the historic landmarks of Ilocos Sur, among other popular tourist destinations.”
In 2006, Proclamation 1191 “assigned the JHSEZ under the Philippine Economic Zone Authority as a Special Tourism Economic Zone. On March 20, 2007, RA 9399 and RA 9400 were signed into law, according locators with tax amnesty and duty-free incentives,” the agency adds.
New investors who wish to establish their businesses inside the zone (under RA 7916 or the PEZA Law) are exempted from taxes under the National Internal Revenue Code and from local taxes except real property taxes. They can avail of zero-rated transactions, fiscal incentives provided under PD 66 and EO 226 and the five-percent preferential income tax treatment on gross income earned within the zone, the website enumerates.
Hope for renegotiation
“The pendency of the arbitral case deprived the local government of huge potential income from the supposed businesses that could have been established if the development of the economic zone was pursued. We cannot understand why the previous administration was closed to the idea of the renegotiation of the lease agreement that could have come out with better terms,” he stressed.
The mayor that noted Camp John Hay Development Corp. was only able to develop some 25 percent of the identified areas over an 18-year period since the agreement was signed between the contracting parties in 1997.
He hoped that the new BCDA administration fix the mess created by the previous leadership to bring back a healthy and harmonious relationship between the government and the developers.
Domogan explained that the local government is only a stakeholder in the development of the JHSEZ because the contracting parties were the BCDA and the CJHDevCo, thus, it is best for both parties to go back to the drawing board to iron things out and discuss the possibility of resuming the stalled development project.
He argued that Resolution 362, series of 1994, that prescribed the 19 conditions imposed by the local government for the development of the former American rest and recreation area was part of the contract between the two parties, thus, the city should always be consulted whenever there are planned changes in the terms and conditions of the agreement.
The 247-hectare special economic zone is part of the 686-hectare Camp John Hay forest reservation that encompasses 14 heavily populated barangays that need to be segregated from the reservation, and the occupied areas must be awarded to the qualified homelot applicants pursuant to the conditions of the city for the development of the former air station.
Domogan commended the new BCDA leadership for choosing to renegotiate the lease contract to come out with a ‘win-win solution’ and realize the full potentials of the reservation and help spur the city’s economic growth.
