BAGUIO CITY — In a bid to resume and complete two stalled major infrastructure projects — the Luna Terraces Housing Project in Barangay Irisan and the Youth Convergence Center and Sports Complex at the Baguio Athletic Bowl — the Baguio City government is seeking alternative funding sources and procurement strategies.

The delays in the two projects were attributed to funding shortages and contractor defaults, prompting city officials to restructure their financing and implementation plans.

According to the City Planning, Development and Sustainability Office (CPDSO), it is coordinating with the Department of Human Settlements and Urban Development (DHSUD) to address the backlog in the Luna Terraces Housing Project.

DHSUD had initially allocated P155 million for site development, while the National Housing Authority (NHA) committed P376.17 million for the construction of 10 residential buildings. Following the termination of the original development works, the city reassessed the project's requirements and submitted a financing request to the Social Housing Finance Corporation (SHFC) on May 26, 2026.

The city government also disclosed that it is enrolling the project under the national government's expanded housing program and the Pag-IBIG Fund. It likewise plans to tap the NHA’s resettlement assistance program, along with local funds, to cover the remaining balance.

While negotiations for the project's 662 housing units continue, the city has utilized its 2024 local development fund to complete the initial access road improvement. A follow-up road project is currently in the pre-procurement stage.

Meanwhile, the city government has shifted to a design-and-build scheme to accelerate the long-delayed Youth Convergence Center and Sports Complex at the Baguio Athletic Bowl.

The nearly P400-million flagship sports facility came to a standstill after the contract of its original developer was terminated in 2024 for exceeding the allowable 15-percent slippage threshold due to liquidity problems.

After subsequent bidding and negotiated bidding attempts failed, the city adopted the design-and-build framework.

Project evaluators have completed a second round of clarificatory dialogue with five prospective bidders, while the technical working group is reviewing the submitted technical, financial and legal documents.

The evaluation team is set to conduct ocular inspections of the bidders’ completed projects next week, extending the post-qualification assessment period by two weeks to ensure due diligence for the city’s first major project under the design-and-build implementation scheme.