On November 18, 2025, thousands of students from Saint Louis University, Benguet State University, the University of the Philippines Baguio, the University of the Cordilleras, and the University of Baguio gathered at Malcolm Square, Baguio City to rally against corruption and call for better support for education. **photo by neimless_skills
Mayor Benjamin Magalong announced on November 19, 2025 that the city government is preparing to file a lawsuit against the Bases Conversion and Development Authority (BCDA).
During a special session of the Baguio City Council, Magalong informed the city council members that the City Legal Office is already drafting a formal legal complaint. This planned action seeks to assert Baguio City’s rights under the 19 conditionalities outlined in Resolution 362-1994.
“We are now preparing a case against BCDA as we have exhausted all administrative remedies and sent four demand letters without receiving any clear indication that they are willing to engage with us,” Magalong stated.
The 19 conditionalities under Resolution 362-1994 enacted by the Baguio City Council in 1994 lay down the city’s non-negotiable terms before any development could proceed within the John Hay Special Economic Zone (JHSEZ). These conditions were crafted to safeguard Baguio’s interests such as environmental protection, honoring the rights of local communities, and securing the city’s rightful share in revenues generated from operations within the JHSEZ.
For many years, the most persistent concerns have centered on Conditionalities 9, 10, and 14.
Conditionalities 9 and 10 pertain to the city’s mandated share from the gross income and lease rentals generated within the John Hay Special Economic Zone. These are revenues that the city has repeatedly urged BCDA to remit. The amount owed to the city has now accumulated to P225 million.
Under Conditionality 9, Baguio City is entitled to 4% of the gross income generated within the John Hay Special Economic Zone where 3% is for the city and 1% is for a joint community development fund. This amounts to P56.8 million in unpaid shares. Under Conditionality 10, BCDA must remit 25% of its lease rentals or 30% of its net income from zone operations, whichever is higher. While BCDA has so far remitted P238.6 million, the amount due is P407.2 million, leaving a balance of P168.6 million. Combined, these unpaid obligations make up the P225 million that the city government insists must be settled.
According to City Treasurer Alex Cabarrubias, BCDA has not made any payment since 2023 when the city government first issued a demand letter calling for the settlement of the debt.
Meanwhile, Conditionality 14 pertains to the long-delayed segregation of 13 barangays from the Camp John Hay Reservation. This process continues to subject hundreds of residents to overlapping regulations, double permitting requirements, unclear jurisdiction, and stalled barangay projects.
These issues have been repeatedly raised before the Baguio City Council for years yet no firm commitment has been made by BCDA as top officials of both BCDA and JHMC continue to skip crucial discussions despite the Baguio City Council’s repeated requests for their attendance.
Vice Mayor Faustino Olowan and several councilors have been urging the executive department to file a case, noting that BCDA and JHMC have shown no clear sign of committing to the full compliance of the 19 conditionalities.
Moreover, with the upgrading of Camp John Hay’s Master Development Plan expected to be completed within two to three months, the Baguio City Council insists on reviewing the plan to ensure full compliance with the 19 conditionalities.**Jordan G. Habbiling
