SM, Robinson Poise Bids To Develop Baguio City Market faces opposition

June 28, 2020 Headlines

BAGUIO CITY – Retail giants SM Prime Holdings, Inc. and Robinson’s Corporation are the remaining bidders for the Baguio market construction which has been long wanting development for almost three decades now.
City administrator Bonifacio dela Pena said this week that the two companies are keen to develop the city market which since 1995 was supposed to be improved by Uniwide Sales and Realty Corporation.
The Uniwide contract has since been cancelled to pave the way for the new bidding that may require PhP6 billion for the put up of a modern market through a private-public partnership (PPP) deal, de la Pena said.
A third bidder, the Baguio market cooperative has offered a lower bid ranging between PhP2.5 – PhP3 billion but has been disqualified due to the lack of legal papers.
“We have disqualified the Baguio cooperative because of their lack of legal papers although they were able to meet the deadline,” said dela Pena, who will present the whole concept with the city council during its regular session on June 29.
While the cooperative lacks legal paper, it also proffered to base its income from lease of tenants, most of them the present vendors which dela Pena said in the long run will not be enough to cover the development cost. “Unlike the proposals of the two,” he added.
“Kailan pa mababawi ang investment pag sa lease lang sila nakadepende (When can they recover the investment if they only depend on rent)?” dela Pena believed.
SM and Robinsons, which both have presence in the city, have offered an amount ranging from PhP5 – PhP6 billion to put up a modern multi-level market.
Dela Pena said that a PPP deal is the best option for the city to have a modernized market instead of developing it on its own by going into loans.
He said that the proposal of the giant mall chains evaluated by the Private-Public Partnership for the People (P4) selection committee headed by dela Pena with city officer Leticia Clemente, a technical working group on market development and a representative from the city council.
The winning bidder could yet be challenged by the losing party but is allowed to match the offer of the latter, dela Pena explained.
The city administrator said that he will present the three proposals with comparative analysis to the city council on Monday, June 29. Including the decision to go into a PPP that will put in consideration the welfare of the more than 4,000 vendors.
The market has been a touchy issue for the city due to the failed Uniwide deal that did not push through and where the city was embroiled in legal battles against the proponent. Uniwide has failed to raise the needed capital to develop the market.
Meanwhile, The Tongtongan ti Umili, a non-government organization issued their press statement saying that “We reiterate our strongest objection against the redevelopment of the Baguio City Public Market by corporate giants, especially under a Public-Private Partnership (PPP) program.
Government announced that SM and Robinsons are the only two viable bidders for the market rehabilitation’s PPP deal. We denounce this, especially when a local and community-centered redevelopment plan through the market cooperative can be pursued instead.
“We reiterate that PPP development projects will only do more harm than good. Only the people will be paying for the price of privatization while enormous profits will go straight to the pockets of big businesses who are in joint venture with the national and local government”, said : Jeoff Larua, Secretary-General of the TTU
With the debilitating effects of this raging COVID-19 pandemic to the economy, especially of those who rely on meager income from selling in the market, the City should think no less than their welfare. The pursuit of a PPP deal with either SM or Robinsons would mean the death of the economy of these people. More than violating the rights of vendors to decent livelihood, consumers will also be burdened through higher prices of basic commodities should this move pushes through.
The statement said that “The people of Baguio does not need another SM, or Robinsons for that matter. We do not oppose the idea of a more hygienic and modern public market. However, we will not stand by when the City Government allows more corporate giants to ‘build, build, build’ over our city at the expense of the people”.
“We continue to call on the people to unite against this threat to the livelihood of our fellow i-Baguios. We have defended the public market against Uniwide before, we will continue to do it today, even in this pandemic. We want modernization without the takeover of corporate giants. We, as tax-paying and law-abiding people, should have a say in the course of the development of our city. We deserve no less.”Laura said.
Artemio Dumlao