BAGUIO CITY — Only one of Baguio City’s eight big-ticket infrastructure projects under the public-private partnership scheme is moving toward implementation, while three remain stuck in administrative stages and four have fallen through.
The status of the projects, discussed during a recent management committee meeting of city officials, exposed gaps between the city government’s reliance on private financing and the viability of multibillion-peso proposals.
Only the P118-billion Baguio City Integrated Terminal project has shown tangible progress. The project, intended to ease traffic congestion in the central business district, moved forward after the city government and Megawide Construction Corp. signed a lease agreement in January 2026.
However, the project remains in the design revision phase, with physical construction yet to begin. A project steering group has been created through an executive order, but the revised design was only scheduled for presentation to the technical working group during the management meeting.
Three other active projects remain delayed by pending approvals and administrative requirements.
The P2.53-billion Smart Urban Mobility Project proposed by Metro Pacific Tollways Corp. has been returned to the mayor for local development council approval and a mandatory proof of concept requested by the city council.
The P1.27-billion Asin Hydroelectric Power Plants project of Repower Energy Development Corp. is still awaiting city council approval, while the P18-billion bulk water supply project has only recently received its feasibility study, keeping it far from submission to the regional development council.
Four other projects have failed.
These include the P4.5-billion market redevelopment project after a major sponsor withdrew during the approval phase; the P1.5-billion terminal and cultural center project with All Asia Structures, whose negotiations lapsed in December 2025; the P11.6-billion elevated monorail and electric bus system with Metro Renewable Transport Solutions after negotiations collapsed; and the P4.3-billion socialized housing project of Zeta World Realty, which was disqualified for insufficient documents proving financial viability.
Despite the delays and failed negotiations, Baguio City Mayor Benjamin Magalong has continued to defend the PPP model as a way to finance large-scale infrastructure without exhausting the local budget.
The city government has said PPPs could help prevent corruption, speed up development and generate long-term revenue streams.
However, the stalled approvals and collapsed negotiations show the city’s current PPP framework is struggling to turn corporate proposals into actual public infrastructure.
Meanwhile, the city government also terminated a street rehabilitation contract in the central business district due to contractor default and persistent negative slippage. The project will be subjected to a new bidding process.