REVISED PUBLIC MARKET PLAN PRESENTED; QUESTION ON TRANSPARENCY RAISED

May 11, 2025 Metro BLISTT

BAGUIO CITY

After years of negotiations and community scrutiny, the redevelopment plan for the Baguio City Public Market now reflects major design revision, offering more equitable space for vendors and improved infrastructure. However, concerns persist, not just over the project’s long-term impact but also about aspects of the process as some details have been kept confidential. This has raised issues related to transparency. During the Baguio City Council’s regular session on May 7, 2025, Mark Anthony Berdal, Economist II from the City Budget Office, and City Administrator Engr. Bonifacio Dela Peña provided updates on the current status of the public market redevelopment project in response to the city council’s request for clarity.

Councilor Jose Molintas explained that the intent of the discussion was to verify the facts about the project amid circulating “allegations” of privatization. The original proposal submitted by SM Prime Holdings, Inc. in 2020 envisioned a large-scale commercial development,
drawing concern from various stakeholders who feared the privatization of a historic public space. The original design included a significant mall component, raising criticisms about possible displacement of vendors and commercialization of heritage space. In response to these concerns and through extended negotiations, particularly after the effectivity of Republic Act No. 11966 (PPP Code of 2022), the proposal had undergone major revisions.

One of the significant revisions was the reduced commercial footprint. The size of the mall component was scaled down, paving the way
for a large area to be designated as the public market, with the building spanning four levels. The expanded space for the public market ensures that all existing leaseholders will be accommodated, with no one displaced. This entire market section will be fully owned, operated, and maintained by the city government, with rental and usage fees governed by city ordinances. All revenues will go directly to the city. Other sections of the redevelopment will be managed by the private proponent. One section will be allocated for commercial spaces intended for retail and service establishments.

Another section will feature the construction of an eight-storey building with multi-level parking. Moreover, the revised design incorporates Cordilleran-inspired architecture and green elements such as open-air features, landscaped areas, and sustainable materials to better align with the city’s identity as a creative and ecological city. The new plan also provides better public amenities including walkable areas, wider pedestrian spaces, and accessibility features for senior citizens and persons with disabilities. As part of the revised plan, efforts will be made to minimize disruptions to the business operations of current stallholders and preserve the market’s organic flow.

A separate building within the Slaughterhouse Compound will serve as a temporary relocation site for market vendors to ensure uninterrupted operations during the redevelopment. Once the project is completed, this facility will be repurposed into a revenue-generating transport terminal. Transparency Vs. Accountability During the discussion, Councilor Betty Lourdes Tabanda questioned the legality of withholding information from the City Development Council (CDC), warning that decisions made without full disclosure may undermine public trust and sound governance. She questioned how the CDC could be expected to responsibly endorse a major PPP project when its members were not given full access to vital information.

On the other hand, Vice Mayor Faustino Olowan defended the process, asserting that the CDC is composed of experts who have long studied the project. He also insisted that confidentiality is mandated by the PPP Code, citing it as a legal constraint. However, Tabanda disputed this interpretation and asserted that the law does not require confidentiality once the proposal reaches the CDC. Earlier, the project proponent requested that certain data be classified as confidential. However, the city government and the proponent later agreed to present publicly available information, particularly those already shared during public consultations.

Project Timeline
On February 18, 2020, SM Prime Holdings Inc. submitted its unsolicited proposal. Shortly thereafter, an executive order was issued reconstituting the P4 Selection Committee, and by April 2020, four sub-committees were formed to review the proposal. On July 22, 2020, the city council, through a majority vote, approved PPP as the implementation mode through Resolution 399-2020. On October 15, 2020, SM Prime Holdings Inc. was granted Original Proponent Status (OPS). A PPP Negotiation Committee was created on December 23, 2020, and negotiations ran from June 9, 2021 to December 14, 2023, ending in a joint certification of successful negotiation.

Following the effectivity of the PPP Code on December 23, 2023, re-negotiations were held from January 30 to September 3, 2024. The OPS of SM Prime Holdings Inc. was reconfirmed on September 6, 2024, and the PPP Governing Board issued updated documentation requirements on September 16, 2024. The project is currently awaiting endorsement from the CDC before it proceeds to the city
council for a 120-day review. The final decision whether to approve the project in full, approve it with revisions, or reject it rests solely with the city council. If approved, the project will move to the comparative challenge stage where other proponents may submit counter-proposals.

Jordan G. Habbiling/SP