“Environmental concerns will be a major factor in the redevelopment.”
It’s just a matter of time before powerhouse property companies take over the reins of redeveloping Camp John Hay in Baguio City,
With defiant businessman Robert John Sobrepeña and his CJH Development Corp. (CJH DevCo) out of the way, the Bases Conversion Development Authority (BCDA) now has the leeway to choose a stable partner and earn handsome returns from its investments in Camp John Hay.
Redeveloping the former recreation sanctuary for American servicemen, however, will be a tricky one. Only about 70 hectares in the mountain resort can be developed, or about the size of an average golf course.
Environmental concerns will be a major factor in the redevelopment. Camp John Hay teems with pine trees that have served as carbon sink and the lungs of Baguio City.
The Department of Environment and Natural Resources (DENR) is expected to strictly monitor any construction activity in the forest reserve and conduct an inventory of pine trees surrounding the vacation spot.
BCDA president and chief executive Joshua Bingcang is aware of the challenge. “While we develop certain idle or untapped areas, we want to make sure we preserve the environmental asset, particularly the pine trees,” he says.
A large portion of Camp John Hay’s more than 600 hectares will remain a forest reserve with a strict no-build zone to preserve its natural beauty.
“We’re very careful about which areas can be developed. Based on our initial assessment, there are around 50 to 70 hectares still available for development,” adds Bingcang.
The big guns in the property sector may have been appraised of the rules and limitations of Camp John Hay. The BCDA, for its part, is leaning on a a public-private partnership (PPP) model for the redevelopment project.
The usual suspects will want a share of the Camp John Hay pie. They may include the Ayala Group, the Sys of the SM Group, Metro Pacific Investments Corp. of the Salim Group of Indonesia, the Villar Group, Robinsons Land Corp. of the Gokongwei Group, DMCI Homes of the Consjunji family and Filinvest Land Inc. of the Gotianun family.
The BCDA this early is looking at an initial investment of P7 billion to P10 billion from a prospective investor for a 70-hectare segment of the 600-hectare Camp John Hay property.
The agency prefers a joint venture partnership with a long-term arrangement, with both sharing the risks and revenues. Under the scheme, the BCDA will manage the regulatory requirements, while the private developers will address market and operational risks.
“PPP has always been a good model for BCDA because we are a developer’s market. All the big developers are our partners,” says Bingcang.
The BCDA’s revised plan aims to guide future developments, including potential projects such as schools, hospitals, hotels and commercial spaces to create a complete and sustainable community.
The BCDA is also focusing on the redevelopment of the Mile Hi Center, a historic commissary from the American era. The shopping district with a food court was popular with tourists in the hunt for apparels, overruns and export goods.
The center is now in poor condition but has attracted several proposals from the private sector.
The BCDA, meanwhile, is looking at a “sustainable mass transport system” for Camp John Hay, which it will offer under the PPP model to address traffic congestion, especially during peak seasons.
The BCDA has won a Supreme Court battle that allowed the agency to take over the management of the tourism enclave in the first week of January this year.
It regained control of popular facilities, which included The Manor, Forest Lodge, Camp John Hay Golf Club, CAP Convention Center, Commander’s Cottage, open spaces and other areas in the property.
A Supreme Court decision in October 2024 ordered private developer CJHDevCo to turn over the management of the leased property after disputes over payments and plans that led to the voiding of the lease agreement.
The takeover has enabled the BCDA to negotiate directly with lessors and sign new agreements. For one, Le Monet Hotel signed a new lease agreement with the BCDA. The hotel, owned by the company of former Deputy Speaker and Ilocos Sur Rep. Eric Singson, was one of Camp John Hay’s original locators.
Many of the 100 John Hay locators have signified their intention to sign new lease agreements with the BCDA.
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