BAGUIO CITY — City officials and Megawide Construction Corp. signed a lease agreement Wednesday for the development of a P1.18-billion integrated transport terminal, the city’s first major infrastructure project under a public-private partnership.

Mayor Benjamin Magalong and Megawide chief business development officer Jaime Raphael Feliciano signed the contract at City Hall, formalizing a 40-year agreement to build and operate the Baguio City Integrated Terminal.

The facility will be located in Barangay Dontogan along Marcos Highway. Designed as an intermodal hub, the terminal will intercept provincial buses entering the city, allowing passengers to transfer to local transport. Officials expect the system to significantly decongest traffic in Baguio’s central business district.

Feliciano described the negotiation process with the city’s executive and legislative branches as “rigorous and transparent,” noting the company underwent intense scrutiny to reach a “very fair” contract.

“We commit to deliver all obligations and beyond,” Feliciano said, citing Megawide’s previous experience with the Parañaque Integrated Terminal Exchange and Clark International Airport.

Vice Mayor Faustino Olowan acknowledged the “tedious process” involved in the negotiations but noted that all legal requirements have been met.

Under the terms of the deal, the city government expects to generate revenue through lease payments, profit sharing and local business taxes.