No winner yet in market development project

August 22, 2020 Headlines

There is no winner yet in the development of the public market.
This as Mayor Benjamin B. Magalong is yet to decide who he will award the Original Proponent Status for the multi-billion development of the city public market. And this after the city’s Public-Private Partnership for the People (P4) Screening Committee voted in favor of Robinsons Land Corporation for the OPS award.
Earlier, five members of the city’s P4 Selection Committee voted in favor of Robinsons, two chose SM Prime Holdings, and two abstained from the grant of the OPS to Robinsons. The vote came after an extensive deliberation of both the proposals for the P6 billion market development project.
P4 SC chair and city administrator Bonifacio dela Peña said that even if the OPS is awarded to Robinsons, the process will involve a Swiss Challenge where any bidder like SM or even the Baguio market cooperative could yet be chosen as the winner.
Robinsons has proposed the put up of two structures in an area covering more than 45,000 square meters with one structure within over 20,000 square meters to be owned and operated by the city for its market and parking needs, and the other structure within over 25,000 square meters for the company’s mixed-use needs.
The company stated it is willing to spend over P6.418 billion for the project to be completed in two and a half years with a lease duration of 50 years automatically renewable for another 25 years.
On the other hand, SM Prime holdings proposed it will build a single 7-story structure over 30,400 square meters within the city public market. The design will have the first two floors for public stall market that will be turned over to the city government. The company will spend more than P5.4 billion for the two-year project that will have a lease duration of only 50 years.
The P4 selection Committee proceedings will be transmitted to the City Mayor for appropriate action; thus, the future of the market development project will depend on the decision of Magalong.
More Players
Meanwhile, more than 15 companies engaged in the development of major public infrastructures from the different parts of the Asia-Pacific had signified their intention to challenge Robinsons for the multi-billion development of the city public market.
Dela Peña said that the companies that already got in touch with the city are eager to participate in the Swiss challenge which is one of the processes enshrined in the P4 ordinance in ascertaining the best proposal on how to pursue the development of the market.
He added that it is up to mayor Magalong if he wants to grant the OPS to Robinsons after the P4 Screening Committee decided in favor of said developer. The city administrator disclosed that if the mayor approves the P4 SC decision, then negotiations between the local government and the company will proceed in the next 45 days for the finalization of the terms of reference for the project.
However, dela Peña claimed that if the mayor will disapprove the committee decision, then the process will be over for the proposed market development project. According to him, the P4 Screening Committee can still look into other available options on how to pursue the proposed development of the public market pursuant to the city’s P4 ordinance but there will be delays in the projected timeframe for the realization of the project.
He explained that if the ongoing process will push through, the agreed terms of reference for the market development will be published and subjected to the so-called Swiss challenge to all interested developers wanting to provide the city with a much better offer but the company that was granted with the OPS will still be given the chance to match the best offer that was presented during the aforesaid part of the process.
Dela Peña stated that he will forward all the documentary requirements that have been passed upon by the P4 Screening Committee to the City Mayor for his perusal and appropriate action and that they will await the verdict that will be rendered by the local chief executive to ascertain what will be the committee’s next move on the matter.
One of the present administration’s 15-point collective agenda is for the city to have a modernized public market that will serve as the city’s show window for the local tourism industry as the proposed market development in the past had been stalled because of the cases filed by interest groups against the said plan.
Resistance
The City Council during its regular session last Monday passed a resolution inviting officers and members of the Baguio Heritage Foundation to appear in its next regular session to shed light on their petition to the city government not to accept unsolicited proposals for the modernization of the public market.
The council pointed out the proposed modernization of the public market affects all the constituents of the city with some agreeable to the implementation of the project while others think otherwise. The BHF is one of those that oppose the acceptance of said unsolicited proposals while urging the city government to partner with the market cooperatives in the implementation of the project. It has also posted an online petition calling for the same.
Vice mayor Faustino Olowan on his part said that he is not surprised with the vote favoring Robinsons Land Corporation over SM Prime Holdings Incorporated over rights to develop the Baguio City Public Market. Olowan told the Amainan Balita Nagyon that vote was expected as Robinsons has a better offer over its rival with P144 million for the city annually against the “paltry” P42 million that the city could get annually as lease. Olowan said that with Robinson, the city has a better control over the new facility which is one of the landmarks that define the”Old Baguio”.
“(I’m not surprised with the result with two buildings for Robinsons against one for SM. From the beginning, the city will (have) control (over the running of the facility). SM (design may look better but city will have only two floors,” Olowan added. “But then the process is not yet over, dadaan pa sa butas ng karayum (it will still pass the needle’s eye), (since) that will be tackled in the negotiations,” said Olowan.
Councilor Betty Lourdes Tabanda expressed her surprise in a letter of opposition to mayor Magalong why Robinsons was declared the “winner” in its bid for the multi-billion development of the city market. In a message Tabanda said: “I voted to reject both SM (Prime Holdings Incorporated) and Robinsons. I have written a justification for this. But I was surprised with the choice of Robinsons. Robinsons did not submit additional documents so its bid) was not fully evaluated. Yet it still won.”
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