The local government will be proceeding with the ongoing negotiation process for the proposed P6 billion market development project to ensure the realization of the long overdue improvement of the city’s show window.
The negotiation between the negotiating teams of the local government and SM Prime Holdings, the company that was given by the city’s Public-Private Partnership for the People – Selection Committee (P4-SC) the Original Proponent Status (OPS) for the said project, is part of the 19-step procedure enshrined in the city’s P4 ordinance prior to the award of the same to the declared complaint proponent.
Currently, the negotiating teams are extensively discussing the 18-point financial terms and 16-point technical terms for both parties to agree on the final terms of reference that will be published to draw the interest of other interested proponents who will participate in the Swiss Challenge.
Mayor Benjamin B. Magalong stated that city officials and concerned market stakeholders were able to already agree on the need to develop the city public market through the public-private partnership scheme as enshrined in the city’s P4 ordinance.
Earlier, the city was able to identify some 34 financial and technical terms ranging from the developable area, the project cost among others which is now the subject of the ongoing negotiations to ascertain the final terms of reference for the multi-billion project.
The city aims to partner with a qualified and competent developer that will translate to the development of the city public market to become one of the best markets in the country without the displacement of vendors as they will be accommodated in the stalls that will be operated by no less than the local government.
SM plans to build a 7-storey structure within the 3-hectare area of the city market that will be able to accommodate the 4,000 vendors in the first 2 floors that will be operated by the city and other shopping areas that will be established within the structure aside from the existence of the 2 basement floors that will be earmarked for pay parking purposes.
When the local government opened the call for proposals from interested developers to partner with the city for the development of the public market, SM Prime Holdings and Robinsons Land Corporation heeded the said call and participated in the initial screening process that was undertaken by the P4-SC until such time that the OPS was granted to the former that paved the way for both parties to proceed to the ongoing negotiation process.
In 1995, the local government conducted the public bidding for the development of the public market pursuant to Ordinance No. 038, series of 1995 which prescribed the guidelines for the development of the facility where the project was awarded to Uniwide Realty and Sales Development Corporation having been the lone bidder for the project.
However, concerned groups of vendors questioned the constitutionality of the aforesaid ordinance and validity of the contract that went up to the Supreme Court (SC). In the end, the SC affirmed the legality of the contract and the constitutionality of the market development ordinance.