WHEREAS, it is the policy of the Government to accelerate the sound and balanced conversion of the former military reservations and their contiguous extensions into alternative productive civilian uses to promote the economic and social development of the country;

WHEREAS, the Bases Conversion Development Authority (BCDA) is mandated by Republic Act No. 7227 (RA 7227), otherwise known as the "Bases Conversion Development Act of 1992", to prepare, adopt and implement a comprehensive and detailed plan for the conversion of these military reservations and their contiguous extensions consistent with the plans and programs of the national government and local government units;

WHEREAS, Section 16 of RA 7227, authorizes the BCDA to form, establish, organize and maintain subsidiaries in accordance with Philippine Corporation Law;

WHEREAS, it is envisioned that Club John Hay will be converted into a tourism, human resource development center and multiple use forest watershed reservation; and

WHEREAS, the national leadership is cognizant of the vital role of the private sector and local government units in the John Hay conversion program.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Creation of John Hay Development Corporation. - A body corporate to be known as the John Hay Development Corporation (JHDC) is hereby authorized to be formed as the operating and implementing arm of the BCDA to manage the Club John Hay, formerly known as the John Hay Air Station or Camp John Hay.

The JHDC shall be a subsidiary corporation of the BCDA and shall be formed in accordance with Philippine Corporation Law and existing rules and regulations promulgated by the Securities and Exchange Commission pursuant to Section 16 of RA 7227.

The JHDC shall be subject to the policies, rules and regulations of the BCDA.

Section 2. Powers and Functions of the John Hay Development Corporation. - The BCDA, as the incorporator and holding company of its John Hay subsidiary, shall determine the powers and functions of JHDC. The JHDC shall be exempt from the coverage of the Civil Service laws, rules and regulations.

Section 3. Board of Directors. - The powers of the JHDC shall be vested in and exercised by a Board of Directors (Board) which shall be composed of not more than eleven (11) members; provided that the composition of the JHDC Board shall be subject to the provisions of Section 16 of RA 7227.

The members of the Board representing the equity or capital stock in JHDC of BCDA and other national government agencies shall be nominated by the President.

No person shall be nominated as a member of the Board representing the capital stock of the national government in JHDC unless he is a Filipino citizen, of good moral character, and of recognized competence in relevant fields including but not limited to economics, tourism, management, international relations, law or engineering.

Section 4. Capitalization. - The capitalization of the JHDC shall be determined by the BCDA, which shall include the following:

4.1. Cash equity provided by the BCDA and other agencies and instrumentalities of government;

4.2. Portions of or all of the lands, embraced and covered by Club John Hay, as well as permanent improvements and fixtures therein upon proper inventory; and

4.3. All other assets which the President may transfer to the JHDC as part of the equity contributions of the Government.

Section 5. Role of Departments, Bureaus, Offices, Agencies and Instrumentalities. - All heads of departments, bureaus, offices, agencies and instrumentalities of the government are hereby directed to give full support to the John Hay conversion program and to coordinate with the BCDA to facilitate the necessary approvals to expedite the implementation of the various projects of the conversion program.

Section 6. Repealing Clause. - All executive issuances, rules and regulations or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed, amended or modified accordingly.

Section 7. Effectivity. - This Executive Order shall take effect immediately.

DONE in the City of Manila, this 29th day of June in the year of Our Lord, Nineteen Hundred and Ninety-Three.


By the President:
(Sgd.) ANTONIO T. CARPIO
Chief Presidential Legal Counsel