Baguio city Mayor Benjamin Magalong explained that the original proponent status (OPS) given to SM Prime Holdings does not mean outright guarantee for the company to implement the market modernization project.
He said selecting the best company to implement the market project entails a long process and the grant of an OPS is just a starter.
The mayor defended their action after netizens slammed the giving of OPS to SM Prime Holdings.
Baguio netizens fear that once a private company will take over the public market, stall rentals will also be increased thus it will affect small businesses renting at the market.
“With the OPS, SM can negotiate the deal. If the negotiation fails, then we will not pursue the deal but if the negotiation succeeds and we agree on the design and meet all the conditions, then we will start framing the terms of reference,” the mayor explained.
The mayor clarified that once the terms of reference had been defined and approved, the same will be published to invite other companies to participate in the process called the Swiss challenge.
He said Robinson Land Corp. and other companies can compete in the Swiss challenge. The city will then select the best proposal from the pool and have SM top it. The process will go on until an offer cannot be surpassed anymore and will be declared the winner.
The mayor said the process will take around four to five months to complete.
“One thing we can assure you is that we will have a market that is ours, market that is clean that we can be proud of,” the mayor said.
SM and Robinsons tendered unsolicited proposals for development of the market and offered to construct multi-storey structures under a 50-year lease.
It can be recalled that the city government already shut its doors to the defunct Uniwide Sales and Realty Development Corporation as its partner in the long overdue development of the city’s public market.
On August 24, 1996, the city government awarded the market development project to Uniwide being the lone complying and responsive bidder, but the same was questioned by some groups of market vendors and the case dragged for over twenty years following the rulings of the lower and appellate courts in favor of the city government’s market development plan. (OIC Joe Manzano, RPN DZBS Baguio | Aileen P. Refuerzo)