Local vendors at the historic Baguio City Public Market are working double-time to raise US$70 million (Php4 billion) to take back control of the market’s redevelopment from SM Prime Holdings (SMPH), reports The Inquirer.
The market, which has been a key trading hub and cultural landmark in the Philippines since the early 1900s, is at the centre of a contest between the vendors and the mall developer, which has proposed building a Php4.6 billion retail centre.
Represented by the Baguio Market Vendors Association (Bamarva), the vendors want to keep the market as a community-driven space that preserves its heritage.
Zosimo Abratique – former president of the Baguio chapter of the Philippine Chamber of Commerce and Industry – is leading the effort to raise funds from the market’s estimated 4000 vendors.
He suggested that each vendor contribute $17,500 (Php1 million), with help from local banks, to challenge SMPH’s bid.
“We believe the vendors should have a say in how the market is redeveloped,” said Abratique.
“It’s not just about modernising the market, but also about preserving our culture and making sure the local community benefits.
The proposal must pass through the city council before being subjected to a Swiss Challenge, a process where the government presents the details of SM Prime’s proposal to the public, allowing other companies or interest groups to submit counter-offers that match or exceed SM’s investment.
In 2020, Bamarva tried to secure a similar redevelopment project with a vendor-led proposal. However, the group couldn’t meet the city government’s requirements, allowing SMPH to be awarded the original proponent status (OPS) for the project.
SMPH, on the other hand, has made adjustments to its proposal to address concerns about preserving the market’s cultural significance.
Initially, the company sought to manage 70 per cent of the redeveloped market, leaving 30 per cent under city management.
Following consultations with the city government, SMPH agreed to reverse these terms, with the city now controlling 70 per cent of the market and SMPH managing the remaining 30 per cent.
Mayor Benjamin Magalong said this has been the outcome of the city government’s series of engagements with the retail development giant.
“The intention is no longer to put up a market that is profitable to SM,” said Magalong. “They are no longer thinking about how they will recoup their investment. They just want to give it back as a legacy to Baguio City.”
If SMPH wins the contract, the shopping mall giant intends to build a $80.5 billion (Php4.6 Billion) multilevel retail structure in four and a half years, according to Egbert Lim, SM Prime’s senior assistant vice president for operations.
“We cannot ignore the cultural significance because we all have memories growing up of buying “pasalubong” (gifts) at the market whenever we visited Baguio,” Lim concluded.
The company said that its offer would benefit the city, generate 3000 jobs, and widen parking for a tourist destination that is beset by daily gridlocks.
