Suit targets JVA only, not project

Suit targets JVA only, not project
CARBON DEBATE. The redevelopment of Cebu City’s Carbon Public Market has sparked a dispute between vendors and developer, with sellers raising concerns over their livelihoods while developers dismiss the claims as misinformation. / SunStar File
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Summary

  • Lawyer Edmund Lao, counsel for the Carbohanong Alyansa, stated that their court challenge targets the legality of the Joint Venture Agreement for the Carbon Public Market project rather than the redevelopment itself.

  • The alliance questions the legal authority of the Cebu City Government to subject public properties, such as Freedom Park and the 7.4-hectare waterfront area, to a commercial joint venture agreement.

  • Petitioners are asking the court to examine procedural fairness, Megawide Construction Corp.’s authority to manage the project, and whether the agreement is financially disadvantageous to the Cebu City Government.

THE legal battle over the redevelopment of Carbon Public Market is expected to focus on several key issues, including the legality of the joint venture agreement (JVA), ownership of the project site, and whether the deal is financially viable to the Cebu City Government, according to the legal counsel of the Carbon vendors’ alliance.

Lawyer Edmund Lao, counsel for the Carbohanong Alyansa, said on Saturday, June 27, 2026, their pre-trial brief submitted before the Regional Trial Court identified at least eight major issues that they believe should be examined during the trial.

Among the primary issues, Lao said, is whether portions of the project site, including Freedom Park, Warwick Barracks, Units 1, 2 and 3, the area extending to the City Treasurer’s Office, and the 7.4-hectare waterfront reclaimed area, form part of the public domain and can legally be subjected to a commercial joint venture.

Focus on the contract

“It is not the project that we are questioning. It is the joint venture agreement,” he said.

He maintained that the Carbon Public Market plays a vital role not only for Cebu City but for the entire province and region, serving as a major source of affordable food and livelihood.

Beyond the legal issues, Lao said vendor organizations opposing the JVA have become more united over the past year, particularly during the 2025 elections, when different groups set aside political affiliations to campaign for the protection of Carbon Market.

Legality of property use

He said the petition also questions whether the Cebu City Government had the legal authority to enter into a contract covering these public properties.

Another issue raised by the petitioners is whether Megawide Construction Corp., the private partner in the redevelopment project, has the corporate authority under its Articles of Incorporation to undertake not only the construction of the project but also its financing, operation, commissioning, and long-term management.

Lao also questioned whether the City complied with the procedures required under Cebu City’s Joint Venture Ordinance and other applicable laws when it approved the unsolicited proposal submitted by Megawide between 2019 and 2021.

Review of procedural fairness

Among the concerns cited were the conduct of the comparative challenge, including whether the 10-day period given to potential challengers to submit competing proposals was reasonable.

The petition likewise challenges the validity of the supplemental agreement executed in 2022 and asks the court to determine whether the JVA is financially disadvantageous to the City Government. Lao emphasized that the case does not seek to stop the redevelopment of Carbon Public Market itself but specifically seeks the cancellation or abrogation of the joint venture agreement.

Lao also urged members of the City Council to review the joint venture agreement, noting that many councilors were not part of the body when the measure was approved.

While acknowledging that the legal battle could take time, Lao said the alliance remains optimistic that the courts will ultimately resolve the case based on law and justice. / CAV

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