BAGUIO CITY, Philippines – SM Prime Holdings Incorporated (SMPH) has withdrawn its proposal to redevelop the Baguio City public market, the city government announced on Saturday, January 3.

Baguio City Mayor Benjamin Magalong also confirmed the withdrawal to Rappler in a phone interview, saying he was formally informed of the decision through a letter sent to his office.

Details of the withdrawal and its implications for the city’s market rehabilitation plans have yet to be made public.

According to a source familiar with the matter, the company was “dismayed over the lies and inaccuracies being circulated,” which it said had negatively affected its corporate image.

Rappler has requested confirmation from SM Prime Holdings and its parent firm SM Investments Corporation regarding the matter. We will update this story once we receive a response.

The Baguio City government first awarded the project to SMPH in 2020 when the Sy-led developer submitted an unsolicited proposal for the redevelopment.

SMPH’s P5.4-billion proposal would include the construction of a seven-storey building and a parking lot that can accommodate around 1,900 vehicles. (READ: Robinsons, SM Prime present plans to redevelop Baguio market)

But concerned residents and stakeholders opposed the proposed redevelopment, describing the move as part of the city government’s “blind drive” to privatize public infrastructure and prioritize corporate interests above constituents’ welfare.

Vendors also voiced concerns that the redevelopment could negatively impact their livelihoods.

The Baguio City Council was initially given until Saturday, January 10, to act on the proposed market development plan. A 120-day period, which began in October last year, includes finalizing the bidding process and gathering input from relevant stakeholders. – Rappler.com