Baguio scrambles to save P800-M projects as most PPP ventures stall

BAGUIO CITY — Baguio City is racing to secure fresh funding and new contractors to revive two stalled infrastructure projects worth nearly P800 million, even as most of the city’s flagship public-private partnership (PPP) ventures remain delayed or have collapsed altogether.

Among the projects being rescued is the Luna Terraces Housing Project in Barangay Irisan, a 662-unit housing development designed to help ease the city’s growing housing backlog.

Construction setbacks and the termination of earlier development works forced city officials to seek additional funding to complete the project.

To keep the housing project afloat, the city has turned to several funding sources, including the Social Housing Finance Corp., Pag-IBIG Fund, the National Housing Authority, and national housing programs.

While major construction remains unfinished, the city has completed the project’s first access road and is preparing to bid out a second road component.

At the same time, Baguio is shifting to a design-and-build scheme to restart the nearly P400-million Youth Convergence Center and Sports Complex at the Baguio Athletic Bowl. The project grounded to a halt after the original contractor’s agreement was terminated in 2024 due to severe delays and financial difficulties.

Five prospective contractors are now undergoing post-qualification evaluation, with inspection teams set to visit their completed projects next week. City officials hope the new procurement approach will finally push the long-delayed sports facility toward completion.

The city’s infrastructure struggles extend beyond the two stalled projects. A recent management committee report showed that only one of Baguio’s eight major PPP projects is moving forward, while three remain stuck in various approval stages, and four have already fallen through.

The lone project advancing is the P1.18-billion Baguio City Integrated Terminal, which entered the design phase after a lease agreement was signed with Megawide Construction Corp. in January.

Still awaiting clearances are the Smart Urban Mobility Project, Asin Hydroelectric Power Plants Project, and Bulk Water Supply Project, while proposals for the market redevelopment, a transport terminal and cultural center, a monorail and electric bus system, and a socialized housing project have collapsed.

Despite the setbacks, Mayor Benjamin B. Magalong said PPPs remain crucial to funding major infrastructure projects without heavily burdening city’s funds. — Artemio A. Dumlao