BCDA to Auction Long-T O&M Contracts for Camp John Hay Hotels and Golf Course by Year-End
Key Takeaways
- •The BCDA will auction by the end of the year the long-term operations and management contracts for an 18-hole golf course and two hotels at Camp John Hay in Baguio City.
- •The golf course contract is being considered for a 25-year term, and the winning investor must commit at least P500 million in improvement works.
- •Bidding for the John Hay Hotels Garden Wing and Forest Wing opens this quarter, with at least P1 billion in capital expenditure, additional rooms, and facility refurbishment anticipated.
- •Landco Pacific, whose subsidiary Landco Lifestyle Ventures currently manages the two hotels, has expressed interest in the long-term deal but must still compete in the auction.
- •The BCDA is negotiating with Meralco on a P1.5 billion power supply improvement subject to a Swiss challenge and is planning an P80 million water system that would add 700 cubic meters of daily supply.
The state-run Bases Conversion and Development Authority (BCDA), the government corporation tasked with converting former United States military bases to civilian use, will auction within year the long-term operations and management (O&M) contracts for an 18-hole golf course and two hotels at Camp John Hay in Baguio City, a mountain resort city in the northern Philippines.
Speaking at a briefing last week, BCDA President and Chief Executive Officer Joshua M. Bingcang said the auction is scheduled by the end of the year.
For John Hay Golf, the BCDA is currently considering a 25-year O&M contract — a term that would place the government-held course's operations with a single private operator for a quarter of a century. The course is being managed by the consortium of Golfplus Management, Inc. and DuckWorld Philippines until this year.
"The investor has to shell out at least P500 million worth of improvement works for the golf course," Mr. Bingcang said.
The 5,517-yard course features amenities such as conference rooms, a veranda, and locker rooms with a jacuzzi and sauna.
Also up for bidding this quarter is the long-term management of the John Hay Hotels Garden Wing (formerly The Manor at Camp John Hay) and Forest Wing (previously known as The Forest Lodge at Camp John Hay).
"We foresee at least P1 billion capex (capital expenditure) investment, additional hotel rooms in that area, and the refurbishing of the facility," he added.
The two hotels are currently under the management of Landco Lifestyle Ventures (LLV), a subsidiary of Landco Pacific Corp. Mr. Bingcang said Landco Pacific has expressed interest in the long-term O&M deal for the hotels, though it will still have to compete in the auction.
"They have to bid… They have an advantage because they know the numbers," he said.
Power and Water Upgrades
Meanwhile, the BCDA is in talks with Manila Electric Co. (Meralco) for a possible partnership to improve the management of the power supply in Camp John Hay.
"We hope to conclude the negotiations within the year, and it will be subjected to a Swiss challenge," Mr. Bingcang noted. Under a Swiss challenge, a negotiated proposal is opened to competing offers from third parties, and the original proponent may match the better bid to secure the project.
The proposal includes moving the overhead utility cables underground, with the improvements estimated to cost P1.5 billion.
The agency is also looking to establish a water distribution system to ensure a stable water supply inside Camp John Hay.
"We're coming up with a water system that will increase supply by 700 cubic meters per day amounting to P80 million," he said.
The planned auctions come after a court ruling allowed the BCDA to take over the 246-hectare Camp John Hay estate in 2025, covering the John Hay hotels, the golf course, the CAP-John Hay Trade and Cultural Center, the Commander's Cottage, open spaces, and other areas. — Beatriz Marie D. Cruz
Source: BusinessWorld
