BAGUIO CITY — Mayor Benjamin Magalong confirmed that SM Prime Holdings Inc. (SMPH) has officially withdrawn its unsolicited proposal to redevelop the Baguio City Public Market, a project that had been under consideration since 2020. The withdrawal was conveyed through a letter dated December 19, 2025, which the mayor’s office received and made public on January 3.
Magalong said he was formally informed of the decision, noting that the company cited unresolved issues among the city’s executive and legislative branches, market vendors, and other stakeholders. “Since it appears that Baguio City, the executive and legislative branches, the BCPM vendors, and other stakeholders in the project have several matters to settle before the project may be undertaken, we have decided to withdraw our proposal,” SMPH stated in its letter.
The redevelopment plan, valued at ₱4.5 billion, envisioned a four-story, multilevel facility to replace the century-old market and accommodate around 4,000 vendors. It was structured as a public-private partnership where SMPH would build, operate, and manage the market for 50 years.
Magalong acknowledged the company’s decision, stressing that the city must now revisit its plans for market rehabilitation. “We respect their decision. This development gives us the opportunity to reassess and ensure that whatever plan we pursue will be inclusive and beneficial to all stakeholders,” he said.
The mayor also addressed allegations that had circulated during the project’s deliberations, including claims of corruption, fears that the market would be converted into a mall, and accusations of bribery involving city officials. He reiterated that these were “baseless and misleading,” emphasizing that the city government had been transparent throughout the process.
Vice Mayor Faustino Olowan expressed disappointment, saying, “It is unfortunate that we are back to square one. This is the second time we dreamed of improving the public market but did not materialize”.
SM Prime, for its part, reportedly grew “dismayed over the lies and inaccuracies being circulated,” which it said had negatively affected its corporate image.
The withdrawal has reignited debates over how the city should proceed with modernizing its public market, a vital hub for residents and tourists alike. For now, the city government is expected to explore alternative approaches, including possible new partnerships or internally funded rehabilitation projects.
A Deal Walks Away, and Baguio Pays the Price
Benjamin Magalong confirmed that SM Prime Holdings Inc. has withdrawn its ₱4.5-billion proposal to redevelop the Baguio City Public Market. After years of debate, accusations, and delay, the plan is gone. What remains is an old market and a familiar sense of frustration.
The official explanation is polite. Too many unresolved issues. Too much division among city officials, vendors, and stakeholders. SM Prime says the noise, including claims of corruption and bribery, damaged its image. City officials deny the accusations and insist the process was transparent.
Regardless of who is right, the result is clear. A major partner walked away, and Baguio is back to square one.
Division stalled progress, and the city is left with the consequences
The public market is not just a structure. It is livelihood, culture, and daily survival for thousands of vendors and families. That is why emotions ran high. But somewhere along the way, the conversation shifted from improvement to suspicion.
Once trust collapsed, every explanation sounded like an excuse. Every proposal felt like a threat. And when trust disappears, even the most detailed plans stop mattering.
From a business standpoint, walking away makes sense. No investor wants to spend billions fighting public doubt at every step. But for Baguio, walking away is not an option.
The market remains old and congested. Vendors continue to work under the same conditions they wanted fixed. Residents and tourists see the same problems year after year. Delay has a cost, and that cost is paid by people who cannot leave.
City leaders say they will reassess and explore other options. That sounds reasonable. But reassessment cannot become a habit.
The real issue now is not SM Prime’s exit. It is whether Baguio can still make hard decisions despite disagreement. If every plan collapses under mistrust, what replaces it? And if no one is willing to move forward, how long will the city accept decay as the safer choice than change?