MANILA, Philippines — The government’s takeover of Camp John Hay has officially commenced, marked by the signing of a new lease agreement with Le Monet Hotel, a long-time locator in the former U.S. rest and recreation base, the Bases Conversion and Development Authority (BCDA) announced Tuesday.
BCDA President and CEO Joshua Bingcang said the move follows the Supreme Court’s final affirmation of its April decision reinstating the 2015 Arbitral Decision that ended an 11-year contractual dispute between the BCDA and Camp John Hay Development Corporation (CJHDevco).
“The transition process will adhere to due process, and we encourage all stakeholders to sign fresh 25-year lease agreements with the government,” Bingcang said.
SC Decision Restores Full BCDA Control
The SC ruling voided the 1996 lease agreement between BCDA and CJHDevco, returning full control of the 245-hectare special economic zone to the government. CJHDevco, owned by businessman Robert John Sobrepeña, is required to return the leased properties, while BCDA must reimburse CJHDevco’s P1.42 billion investment.
While the ruling resolves the long-standing legal dispute, CJHDevco’s clients—including John Hay Golf Club shareholders and time-share holders of luxury homes and hotel rooms—remain affected. Bingcang urged them to negotiate new agreements with the BCDA to ensure their continued presence in Camp John Hay.
Le Monet Leads with New Lease
Le Monet Hotel, owned by former Deputy Speaker Eric Singson, was the first locator to sign a new lease with the BCDA. Bingcang highlighted this as a display of trust and goodwill under government management, adding that other locators have also expressed interest in renewing their contracts.
“We offer fresh 25-year leases regardless of the remaining lifespan of existing contracts. This ensures stability for locators and supports the development of Camp John Hay,” Bingcang said.
Smooth Transition and Master Plan Review
Bingcang assured stakeholders that the turnover will be orderly, emphasizing the BCDA’s commitment to avoid creating fear or uncertainty among the public.
He also announced plans to revisit and update the original John Hay Master Development Plan, approved by Baguio City in 1994, to align with modern needs and ensure sustainable development.
“This includes exploring new investment opportunities, such as mass transport systems, while maintaining a balance between development and environmental preservation,” Bingcang said.
Baguio City’s Stake
Bingcang acknowledged Baguio City’s role in the development, including its 25% share of rental revenues. He noted ongoing discussions with Mayor Benjamin Magalong to reconcile the BCDA’s fiscal obligations to the city.
“Baguio’s share may now reflect taxes, indirect benefits, and the broader economic impact of John Hay developments,” Bingcang added.
Call for Stakeholder Cooperation
Bingcang reiterated the BCDA’s openness to negotiations, inviting all locators, homeowners, and investors to forge new agreements under the government’s management.
“This is a fresh start for Camp John Hay, with opportunities for both public and private sector collaboration to revitalize this iconic property while honoring its environmental and cultural heritage,” Bingcang concluded.