City council OKs terminal project with major conditions

Concluding its 120-day review, the Baguio City Council finally approved the Baguio City Integrated Terminal (BCIT) project during its regular session on June 2, 2025, but with major conditions.
All these conditions serve as safeguards and clarifications to ensure that the city government and its stakeholders are protected, consulted, and properly benefited throughout the implementation of the project.
One of the conditions is the deletion of certain clauses in the lease agreement. Among the provisions removed is the clause allowing the proponent to provide in-city transport services at its discretion. The removal of this clause restricts the private proponent strictly to terminal and related commercial operations, preventing any expansion into local transportation services that could duplicate or compete with existing public utility operations.
Another deleted provision would have obligated the City to assist the proponent in securing local and national permits and franchises necessary for the construction and operation of the terminal and in-city transport operations. Deleting this provision shifts the responsibility of acquiring necessary permits solely to the proponent and reduces the City’s involvement to avoid liability or conflict with national agencies like the Land Transportation Franchising and Regulatory Board (LTFRB).
The ordinance also deleted a clause requiring the City to create a Blocked Account with a minimum balance of P20 million. The Blocked Account is a restricted bank account that the city government is required to establish before the construction begins. Its purpose is to ensure financial security and compliance with the lease agreement. The deletion of this clause will eliminate financial risks associated with maintaining a blocked account which could place an undue burden on the City’s finances.
The ordinance likewise amends a certain provision to clarify the City’s authority and limitation in supporting the project through land use adjustments. The amendment allows the City to reclassify or rezone the leased premises only if it is for the purposes consistent with the agreement and only to the extent legally allowed.
The city council also imposed conditions on the project to ensure controlled traffic integration, stable lease income for the city, oversight on land use, social safeguards for affected settlers, inclusion of local communities in the Public-Private Partnership (PPP) process, joint approval of terminal fee increases, use of local labor, prioritization of local Micro, Small, and Medium Enterprises (MSMEs), and cooperation on resolving ancestral claims and informal settlers.
Furthermore, the city council required the incorporation of stakeholder inputs into the BCIT project. These include parking commitments, revenue sharing, fare discounts, non-transfer of liabilities to the City, venue for legal disputes, a no-cost transfer of assets after the lease, and proposed solutions to traffic concerns.
The majority of city council members voted to approve the project, with Councilors Elmer Datuin, Leandro Yangot Jr., and Betty Lourdes Tabanda abstaining.
With the city council’s majority approval, the project moves forward to the next stages of the PPP process including the comparative challenge where other bidders may submit their proposals to compete with the original proponent.
The BCIT is a planned transport hub in Dontogan Barangay, accessible via Marcos Highway, designed to help ease congestion in the city’s Central Business District. The terminal will serve provincial buses and public utility vehicles entering Baguio while also accommodating jeepneys, modern jeepneys, and taxis for local travel.
The facility will offer essential amenities such as ticketing booths, sheltered and comfortable waiting areas, clean restrooms with diaper-changing and lactation stations, and commercial parking, along with park-and-go services. The project is situated within a five-hectare land covered by a usufruct agreement with the Bureau of Animal Industry (BAI).
The BCIT began as a major initiative under a PPP scheme, with Megawide Construction Corporation submitting the original unsolicited proposal. After a successful negotiation, the City Development Council endorsed the project, prompting the city council to begin its formal review on February 6, 2025. **Jordan G. Habbiling