TRACING the evolution of the P8-billion joint venture from its initial proposal to the current legal battles threatening its completion.
The origins of the agreement
The modernization project began as an unsolicited proposal and evolved into a complex public-private partnership. The contract terms have shifted since the initial signing, expanding the developer’s investment while tightening Cebu City’s financial obligations.
2019: Megawide Construction Corp. submits an unsolicited proposal to modernize the Carbon Public Market.
Jan. 9, 2020: The Cebu City Council approves the initial joint venture agreement.
Jan. 11, 2020: Then-Mayor Edgardo Labella and Megawide representative Manuel Louie Ferrer sign the original P5.5 billion contract, establishing a 50-year concession.
July 31, 2022: To resolve perceived ambiguities in the original contract, then-Mayor Michael Rama and Ferrer sign a supplemental agreement. The project value increases to P8 billion and the developer guarantees the City an initial P50 million payment.
As construction progresses, the financial realities of the contract have prompted countermeasures from current city officials. The core dispute centers on the mandatory rental increases and the penalties the City faces if it intervenes to protect vendors.
January 2026: Vice Mayor Tomas Osmeña files a petition with the Supreme Court, seeking an immediate halt to the market’s construction.
February 2026: After the developer proposes to begin fee collections in March, Mayor Nestor Archival issues a directive freezing all fee collections.
December 2026: The developer expects to complete the main public market building.
What to watch
The Cebu City Council plans to draft a resolution within weeks to review the joint venture agreement. Councilors intend to examine fee collection boundaries, vendor protections and the City’s liabilities under the penalty clauses.
As the developer approaches its construction deadline, city officials face a shrinking timeline. They must resolve the legal deadlock to avoid triggering default provisions that could force the local government to pay millions in compensation, extend the 50-year contract term, or forfeit its guaranteed revenue. / EHP