Issue of October 25, 2020
Mt. Province
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‘Public market redevelopment via PPP is Baguio’s best option’
by Hanna C. Lacsamana

The public-private partnership (PPP) mode is the best option for the city government of Baguio in pursuing the long-delayed modernization of the city public market.

City Administrator Bonifacio dela Peña said the city government cannot afford to do the development project on its own and taking out a loan, as earlier considered, to raise funds for the project is deemed detrimental than beneficial to the city.

Dela Peña, who chairs the Public-Private Partnership for the People (P4) Initiative Committee, made the statement following adverse public reactions after Mayor Benjamin Magalong gave SM Prime Holdings Inc.(SMPHI) the original proponent status (OPS).

Councilor Mylen Yaranon chided the grant of OPS to SMPHI, a private corporation, saying the public market should be developed by the city government and that the unsolicited proposals of SMPHI and Robinsons Lands Corp. are deficient and should be rejected.

Dela Peña said it has been proven by the city’s Local Finance Committee that the city cannot afford to handle the market development. He said the reported savings of the city cannot be used solely for the market development as the city has other essential and priority projects to undertake. 

He said borrowing the needed amount from banks is also proven not for the best interest of city. In talks with the Land Bank of the Philippines and Development Bank of the Philippines, loaning the amount of at least P6 billion would entail about P250 million to P300M as annual amortization for the city government.

The city’s LFC earlier conducted a financial study on the capability of the city government to develop the city market and recommended that the building cost would be a burden and the projected income from stall rentals may not be enough to raise the yearly amortization. 

Even if the terms would be giving the city a grace period, the city would still be hard up in keeping up with its payments and other city projects will be sacrificed. 

“There is no way (for the city) to fund it. We are not capable of funding it. The PPP mode is our best option, the most ideal way for us to pursue the market development, as proven by our local financial experts and city council itself,” Dela Peña said. 

Dela Peña said the city council in fact has agreed to the PPP modality and approved of it as mentioned in Resolution 400 s. 2020, which recommends to the PPP proponents to consider adopting the architectural design of the master redevelopment plan for the city public market, subject to minor revisions. 

He appealed to the concerned parties not to spread lies to confuse the public on the intentions of the city government over the market development.

“Let’s be honest, objective and factual para hindi nalilinlang ang mga tao. Madaling sabihin na tayo na ang magpagawa, but show us the numbers,” Dela Peña said. 

He added the grant of OPS to SMPHI is within the authority of the mayor.

The OPS does not automatically award the project to SMPHI, but there will be negotiations where terms and issues will be discussed and fix any deficiencies and later subject to the Swiss challenge where all other interested entities may challenge the OPS grantee’s proposal and present their respective offers.

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Congressman Eric Yap
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Department of Labor and Employment – CAR
Department of Trade and Industry – CAR
Mayor Romeo K. Salda
National Grid Corporation of the Philippines
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Assumption Medical Diagnostic Center, Inc.
Baguio Center Mall
Baguio Water District
Bruno’s Restaurant
Bureau of Fisheries and Acquatic Resources – CAR
C & Triple A Supermart
Department of Agriculture – CAR
Department of Transportation
Gov. Melchor D. Diclas, MD
John Hay Management Corporation
Mayor Benjamin B. Magalong
MV Alabanza
Rianella Printing Press
Veterans Bank
Vice Mayor Faustino A. Olowan and Family

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