Baguio settles P316-M debt to keep convention center
BAGUIO CITY—The city government has settled a P316-million debt with the Government Service Insurance System (GSIS) to complete payment for the historic Baguio Convention Center, according to the city mayor.
The city bought the convention center from GSIS in 2003 with an initial P50-million payment from the Bases Conversion and Development Authority (BCDA).
It mortgaged future payments against Baguio’s share from the rent proceeds of the developer of Camp John Hay. The BCDA oversees the development of all former American-run bases, like Camp John Hay, in the country.
But the rent payments of the Fil Estate-owned Camp John Hay Development Corp. (CJHDevco) had been delayed due to the firm’s legal conflict with the BCDA.
Mayor Mauricio Domogan said the BCDA-CJHDevco feud cost the city government up to P316 million in debts because of interests.
The city government had pursued the property to preserve it, said Baguio Rep. Bernardo Vergara, who was mayor when the deal was made. The convention center hosted the 1978 world chess championship between grand masters Anatoly Karpov and Viktor Korchnoi.
Article continues after this advertisementThe BCDA released another P50 million in 2008 to pay for the balance, but it failed to remit the city government’s share from Camp John Hay rent in the following years.
Article continues after this advertisementThe GSIS had threatened to end the deal and repossess the convention center in 2009.
But Domogan said the government persuaded the GSIS board of trustees to condone P50 million worth of interest payments.
He said the city council also allocated P206 million to pay for the remaining balance, after the BCDA this month agreed to issue another P60 million to GSIS.
The city government, he said, intends to press CJHDevco to pay up, so Baguio could recover its P206 million advance payments.
The BCDA is still in a deadlock with CJHDevco over the developer’s allegations that government had failed to fulfill some of its obligations after committing to a restructured debt and lease agreement in 2008. Vincent Cabreza, Inquirer Northern Luzon
