BAGUIO CITY – Mayor Mauricio Domogan remains hopeful that the Bases Conversion Development Authority (BCDA) and the Camp John Hay Development Corporation (CJHDevCo) can still patch up their differences and reach an amicable settlement on the Camp John Hay lease payment despite their apparently worsening dispute.

            “We are still praying that they will sit down and come up with an amicable solution for the benefit of all concerned,” the mayor said.

The mayor earlier said the deadlock will further prolong the city’s wait for the payment of its uncollected share from the lease rental which could have been used to fund priority projects.   

BCDA and CJHdevCo’s botched negotiations for the payment of the rentals placed at f P3.024 billion resulted to the developer’s filing for the rescission of its Restructuring Memorandum of Agreement with BCDA signed in 2008 for BCDA’s alleged failure to deliver contractual obligations and demands.

The mayor said the CJhDevCo has filed a petition for arbitration before the courts to mediate the issues.

CJHDevCo also sued for protection against BCDA’s  takeover and succeeded with the issuance of a Temporary Restraining Order by the Regional Trial Court here last January 24.

But the BCDA debunked CJHDevCo’s move saying it was baseless as there was no attempt to take over the leased properties.

“As far as the BCDA is concerned, there is no legal basis for a TRO. No takeover has taken place, and no attempt has been made, hence the court order comes a surprise and mystery to us,” BCDA President and Chief Executive Officer Arnel Paciano D. Casanova said in a press statement.

            The mayor said the issue could have not gone out of hand if only the parties sat down and exercised diplomacy to understand each other instead of resorting to court cases but he said he has not given up hope on this possibility.

            “We will keep on praying that one of these days, they will sit down and find a common solution to this problem,” he said.

            The city stands to receive 25 percent of the CJHDevCo arrears with the BCDA based on the lease agreement.

            The original agreement pegged the lease rental at P425 million annually for the first five years starting in 1996 and P150 million annually thereafter and the city’s share from the rental was supposed to be 25 percent or P106 million for the first five years and P35,500,000 for the succeeding years.

            However, the lease agreement was restructured in 2000, 2003 and in 2008. – A Refuerzo