BCDA, CJHDevCo reach accord

The Bases Conversion Development Authority (BCDA) and the Camp John Hay Development Corp. (CJHDevCo) have agreed in principle to restructure the almost P1.1 billion back rental of CJHDevCo for Baguio City’s premier recreational park, Camp John Hay

This was announced yesterday by BCDA president and chief executive officer Rufo Colayco after the CJHDevCo submitted yesterday an improved rental restructuring offer.

Colayco also disclosed that the two firms would sign the new rental and restructuring agreement next week.

While he refused to give details about the new offer, Colayco admitted that the new agreement would be "mutually beneficial."

"The new agreement is actually a negotiated agreement based on the offers submitted by the CJHDevCo yesterday," Colayco said.

The initial offer involved a P100-million cash payment and dacion en pago worth P200 million of already completed cottages, another P200-million cash securitization by cottages still under construction and the advance payment of P155 million that is supposed to be due in 2011.

The BCDA refused the offer given by CJHDevCo last month because of differences over the valuation of the cottages.

To further sweeten the offer, CJHDevCo had informed the BCDA that it has a foreign investor interested in putting up a casino in Camp John Hay.

CJHDevCo would pledge to BCDA its share of the earnings from the casino.

Colayco,however, was non-committal, pointing out that CJHDevCo would still have to secure a license from the Philippine Amusement and Gaming Corp. (Pagcor) as well as all the necessary permits from the local government.

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