Baguio preparing lawsuit against BCDA over unpaid shares, unresolved conditions

BAGUIO CITY — The Baguio City government is preparing to file a lawsuit against the Bases Conversion and Development Authority (BCDA) after the agency allegedly failed to comply with key obligations under Resolution 362-1994, Mayor Benjamin Magalong announced on Wednesday, November 19.

Magalong told the Baguio City Council in a special session that the City Legal Office is finalizing a legal complaint asserting the city’s rights over 19 conditionalities required before any development within the John Hay Special Economic Zone (JHSEZ) may proceed.

He said the city had exhausted all administrative remedies and received no clear response from BCDA despite sending four demand letters.

At the center of the dispute are unpaid revenues and unresolved segregation issues that have lingered for decades.

The city government claims BCDA owes Baguio a total of P225 million, representing shares from gross income and lease rentals under Conditionalities 9 and 10 of the 1994 resolution.

Under Conditionality 9, Baguio is entitled to 4% of the gross income generated in the JHSEZ—3% for the city and 1% for a joint community development fund—amounting to P56.8 million in unpaid obligations.

Conditionality 10 mandates that BCDA remit 25% of its lease rentals or 30% of net income from zone operations, whichever is higher. While BCDA has remitted P238.6 million, the amount due is P407.2 million, leaving P168.6 million unpaid.

City Treasurer Alex Cabarrubias said BCDA has not made any payment since 2023, when the city first issued a demand letter seeking settlement of the outstanding balance.

Another long-standing issue is Conditionality 14, which concerns the delayed segregation of 13 barangays within the Camp John Hay Reservation.

The lack of progress continues to subject residents to overlapping regulations, dual permitting requirements, and stalled barangay projects due to unclear jurisdiction.

Council members, including Vice Mayor Faustino Olowan, have repeatedly urged the executive department to pursue legal action, citing BCDA and John Hay Management Corporation (JHMC) officials’ continued absence in council discussions despite repeated invitations.

The dispute comes as the updated Master Development Plan for Camp John Hay is expected to be completed within two to three months.

The city council insists the plan must be reviewed to ensure full compliance with the 19 conditionalities.